Stockholders' Equity

6 Months Ended

May 05, 2024

Stockholders’ Equity

Cash Dividends Declared and Paid


	Fiscal Quarter Ended				Two Fiscal Quarters Ended
	May 5, 2024		April 30, 2023		May 5, 2024		April 30, 2023

	(In millions, except per share data)
Dividends per share to common stockholders	$	5.25	$	4.60	$	10.50	$	9.20
Dividends to common stockholders	$	2,443	$	1,914	$	4,878	$	3,840

Stock Repurchase Programs

We repurchased and retired approximately 7 million shares of our common stock for $7,176 million during the fiscal quarter ended February 4, 2024 which completed all $20 billion under our previously authorized stock repurchase programs prior to expiration on December 31, 2023. During the fiscal quarter and two fiscal quarters ended April 30, 2023, we repurchased and retired approximately 5 million and 7 million shares of our common stock for $2,806 million and $3,994 million, respectively.

VMware, Inc. Amended and Restated 2007 Equity and Incentive Plan

In connection with the VMware Merger, we assumed the VMware, Inc. Amended and Restated 2007 Equity and Incentive Plan (the “2007 Plan”) and outstanding unvested RSU awards and PSU awards originally granted by VMware under the 2007 Plan that were held by continuing employees. These assumed awards were converted into approximately 5 million Broadcom RSU awards and will vest in accordance with their original terms, generally over 4 years. Under the 2007 Plan, we may grant stock options and stock appreciation rights with an exercise price that is no less than the fair market value on the date of grant, restricted stock, RSUs, and other stock-based or cash-based awards to employees. Equity awards granted under the 2007 Plan following the VMware Merger are expected to be on similar terms and consistent with similar grants made pursuant to our Amended and Restated Broadcom Inc. 2012 Stock Incentive Plan. Awards cancelled or forfeited and shares withheld to satisfy tax withholding obligations become available for future issuance. As of May 5, 2024, 5 million shares remained available for issuance under the 2007 Plan.

Stock-Based Compensation Expense


	Fiscal Quarter Ended				Two Fiscal Quarters Ended
	May 5, 2024		April 30, 2023		May 5, 2024		April 30, 2023

	(In millions)
Cost of products sold	$	28	$	22	$	56	$	38
Cost of subscriptions and services	142		28		275		49
Research and development	881		354		1,744		621
Selling, general and administrative	352		109		900		196
Total stock-based compensation expense (a)	$	1,403	$	513	$	2,975	$	904

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(a) Does not include $66 million and $136 million of stock-based compensation during the fiscal quarter and two fiscal quarters ended May 5, 2024, respectively, which was included in income from discontinued operations, net of income taxes in our condensed consolidated statements of operations.

For the fiscal quarter and two fiscal quarters ended May 5, 2024, stock-based compensation expense included $387 million and $1,097 million, respectively, related to equity awards assumed in connection with the VMware Merger. For the two fiscal quarters ended May 5, 2024, stock-based compensation expense related to equity awards assumed included a one-time impact from aligning the vesting dates of equity awards assumed with our RSU vesting dates, as well as expenses related to accelerated vesting of certain equity awards held by employees terminated in connection with the VMware Merger.

As of May 5, 2024, the total unrecognized compensation cost related to unvested stock-based awards was $13,811 million, which is expected to be recognized over the remaining weighted-average service period of 3.3 years.

Equity Incentive Award Plans

A summary of time- and market-based RSU activity is as follows:


	Number of RSUs Outstanding	Weighted-Average Grant Date Fair Value Per Share

	(In millions, except per share data)
Balance as of October 29, 2023	22	$	389.21
Assumed in VMware Merger	5	$	968.52
Granted	7	$	1,121.01
Vested	(6)	$	473.17
Forfeited	(1)	$	801.25
Balance as of May 5, 2024	27	$	654.06

The aggregate fair value of time- and market-based RSUs that vested during the two fiscal quarters ended May 5, 2024 was $7,127 million, which represented the market value of our common stock on the date that the RSUs vested. The number of RSUs vested included shares of common stock that we withheld for settlement of employees’ tax obligations due upon the vesting of RSUs.