Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Entity Registrant Name | BROADCOM CORP |
Entity Central Index Key | 1054374 |
Document Type | 10-Q |
Document Period End Date | 31-Mar-15 |
Amendment Flag | FALSE |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Common Class A | |
Shares outstanding | 549 |
Common Class B | |
Shares outstanding | 49 |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,677 | $2,545 |
Short-term marketable securities | 1,274 | 1,061 |
Accounts receivable, net | 821 | 804 |
Inventory | 630 | 531 |
Prepaid expenses and other current assets | 154 | 131 |
Total current assets | 4,556 | 5,072 |
Property and equipment, net | 620 | 516 |
Long-term marketable securities | 2,533 | 2,383 |
Goodwill | 3,695 | 3,710 |
Purchased intangible assets, net | 490 | 664 |
Other assets | 168 | 126 |
Total assets | 12,062 | 12,471 |
Current liabilities: | ||
Accounts payable | 431 | 503 |
Wages and related benefits | 172 | 220 |
Deferred revenue and income | 37 | 36 |
Accrued liabilities | 565 | 791 |
Total current liabilities | 1,205 | 1,550 |
Long-term debt | 1,593 | 1,593 |
Other long-term liabilities | 262 | 277 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock | 0 | 0 |
Additional paid-in capital | 12,352 | 12,595 |
Accumulated deficit | -3,246 | -3,455 |
Accumulated other comprehensive loss | -104 | -89 |
Total shareholders’ equity | 9,002 | 9,051 |
Total liabilities and shareholders’ equity | $12,062 | $12,471 |
Unaudited_Condensed_Consolidat1
Unaudited Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net revenue: | ||
Net revenue | $2,058 | $1,984 |
Cost of revenue | 972 | 1,004 |
Gross profit | 1,086 | 980 |
Operating expenses: | ||
Research and development | 539 | 636 |
Selling, general and administrative | 177 | 185 |
Amortization of purchased intangible assets | 1 | 9 |
Impairments of long-lived assets | 143 | 25 |
Restructuring costs, net | 7 | 5 |
Settlement costs | 0 | 2 |
Other gains, net | -4 | -52 |
Total operating expenses | 863 | 810 |
Income from operations | 223 | 170 |
Interest expense, net | -5 | -5 |
Other income, net | 0 | 3 |
Income before income taxes | 218 | 168 |
Provision for income taxes | 9 | 3 |
Net income | $209 | $165 |
Net income per share (basic) (usd per share) | $0.35 | $0.28 |
Net income per share (diluted) (usd per share) | $0.34 | $0.28 |
Weighted average shares (basic) (shares) | 600 | 584 |
Weighted average shares (diluted) (shares) | 613 | 590 |
Dividends per share (usd per share) | $0.14 | $0.12 |
Unaudited_Condensed_Consolidat2
Unaudited Condensed Consolidated Statements of Comprehensive Income (loss) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $209 | $165 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments, net of $0 tax in 2015 and 2014 | -20 | -1 |
Unrealized gains on marketable securities, net of $0 tax in 2015 and 2014 | 5 | 1 |
Other comprehensive income (loss) | -15 | 0 |
Comprehensive income | $194 | $165 |
Unaudited_Condensed_Consolidat3
Unaudited Condensed Consolidated Statements of Comprehensive Income (loss) (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax | $0 | $0 |
Unrealized gains (losses) on marketable securities, tax | $0 | $0 |
Unaudited_Condensed_Consolidat4
Unaudited Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net income | $209 | $165 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 39 | 52 |
Stock-based compensation expense | 90 | 120 |
Acquisition-related items: | ||
Amortization of purchased intangible assets | 37 | 59 |
Impairments of long-lived assets | 143 | 25 |
Loss (gain) on sale of assets and other | 3 | -49 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | -12 | 61 |
Inventory | -99 | -5 |
Prepaid expenses and other assets | -65 | 4 |
Accounts payable | -58 | -8 |
Deferred revenue | -6 | 115 |
Other accrued and long-term liabilities | -306 | 67 |
Net cash provided by (used in) operating activities | -25 | 606 |
Investing activities | ||
Net purchases of property and equipment | -156 | -78 |
Proceeds from sale (purchases) of certain assets and other | -15 | 90 |
Purchases of marketable securities | -937 | -477 |
Proceeds from sales and maturities of marketable securities | 579 | 503 |
Net cash provided by (used in) investing activities | -529 | 38 |
Financing activities | ||
Repurchases of Class A common stock | -335 | 0 |
Dividends paid | -84 | -70 |
Proceeds from issuance of common stock | 148 | 54 |
Minimum tax withholding paid on behalf of employees for restricted stock units | -43 | -31 |
Net cash used in financing activities | -314 | -47 |
Increase (decrease) in cash and cash equivalents | -868 | 597 |
Cash and cash equivalents at beginning of period | 2,545 | 1,657 |
Cash and cash equivalents at end of period | $1,677 | $2,254 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
Our Company | |
Broadcom Corporation (including our subsidiaries, referred to collectively in this Report as “Broadcom,” “we,” “our” and “us”) is a global leader and innovator in semiconductor solutions for wired and wireless communications. Broadcom® provides one of the industry’s broadest portfolio of highly-integrated system-on-a-chip solutions, or SoCs, that seamlessly deliver voice, video, data and multimedia connectivity in the home, office and mobile environments. | |
Basis of Presentation | |
The interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, for interim financial information and with the instructions to Securities and Exchange Commission, or SEC, Form 10-Q and Article 10 of SEC Regulation S-X. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended December 31, 2014, included in our 2014 Annual Report on Form 10-K filed with the SEC on January 29, 2015, referred to as our 2014 Annual Report. | |
The interim condensed consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly our results of operations and financial position for the interim periods. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for future quarters or the full year. | |
For a complete summary of our significant accounting policies, please refer to Note 1, “Summary of Significant Accounting Policies,” in Part IV, Item 15 of our 2014 Annual Report. There have been no material changes to our significant accounting policies during the three months ended March 31, 2015. | |
Use of Estimates | |
The preparation of financial statements in accordance with United States generally accepted accounting principles, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of total net revenue and expenses in the reporting periods. We regularly evaluate estimates and assumptions related to revenue recognition, rebates, allowances for doubtful accounts, sales returns and allowances, warranty obligations, inventory valuation, goodwill and long-lived intangible asset valuations, deferred income tax asset valuation allowances, uncertain tax positions, tax contingencies, stock-based compensation expense, restructuring costs or reversals, litigation and other loss contingencies, gains and losses on sale of assets, strategic investments and self-insurance. These estimates and assumptions are based on current facts, historical experience and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenue, costs and expenses that are not readily apparent from other sources. The actual results we experience may differ materially and adversely from our estimates. To the extent there are material differences between the estimates and actual results, our future results of operations will be affected. | |
Recent Accounting Pronouncements | |
In May 2014 the Financial Accountings Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, or ASU 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2017, and early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. |
Supplemental_Financial_Informa
Supplemental Financial Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Supplemental Financial Information | Supplemental Financial Information | |||||||
The following tables present details of our unaudited condensed consolidated financial statements: | ||||||||
Inventory | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(In millions) | ||||||||
Work in process | $ | 273 | $ | 180 | ||||
Finished goods | 357 | 351 | ||||||
$ | 630 | $ | 531 | |||||
Property and Equipment, Net | ||||||||
In the three months ended March 31, 2015, we paid $156 million upon close of escrow for the purchase of land for the construction of a new corporate campus in Orange County, California, totaling up to 2 million square feet to meet the requirements projected in our long-term business plan. This payment included $110 million for the purchase of the land and $46 million for prepaid taxes and refundable deposits recorded as "Property and equipment, net" and "Other assets," respectively, in our unaudited condensed consolidated balance sheets. | ||||||||
Accrued Liabilities | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(In millions) | ||||||||
Accrued rebates | $ | 350 | $ | 574 | ||||
Accrued taxes | 28 | 28 | ||||||
Accrued royalties | 19 | 19 | ||||||
Accrued settlement charges | 17 | 17 | ||||||
Accrued legal costs | 9 | 10 | ||||||
Warranty reserve | 6 | 6 | ||||||
Restructuring liabilities | 13 | 28 | ||||||
Other | 123 | 109 | ||||||
$ | 565 | $ | 791 | |||||
Other Long-Term Liabilities | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(In millions) | ||||||||
Deferred revenue | $ | 98 | $ | 105 | ||||
Accrued taxes | 76 | 77 | ||||||
Deferred rent | 34 | 38 | ||||||
Deferred tax liabilities | 17 | 17 | ||||||
Accrued settlement charges | 13 | 17 | ||||||
Other long-term liabilities | 24 | 23 | ||||||
$ | 262 | $ | 277 | |||||
Accrued Rebate Activity | ||||||||
The following table summarizes activity related to accrued rebates: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(In millions) | ||||||||
Beginning balance | $ | 574 | $ | 409 | ||||
Charged as a reduction of revenue | 221 | 187 | ||||||
Reversal of unclaimed rebates | (4 | ) | (6 | ) | ||||
Payments | (441 | ) | (74 | ) | ||||
Ending balance | $ | 350 | $ | 516 | ||||
Other Gains, Net | ||||||||
In March 2014 we sold certain Ethernet controller-related assets and provided non-exclusive licenses to intellectual property, including a non-exclusive patent license, to QLogic Corporation for a total of $209 million, referred to as the QLogic Transaction. The transaction was accounted for as a multiple element arrangement, which primarily included (i) the sale of certain assets (constituting a business for accounting purposes), (ii) the licensing of certain intellectual property and (iii) a long-term supply agreement. In connection with the transaction, we recorded a gain on the sale of assets of $48 million (net of a goodwill adjustment of $37 million) and deferred revenue of $120 million. The revenue related to the license agreement ($76 million) and the supply agreement ($44 million) will be amortized over approximately seven years. The operating gain was recorded in “Other gains, net” included in our unaudited condensed consolidated statements of income for the three months ended March 31, 2014. | ||||||||
In determining the fair value of the license agreement we used the relief from royalty income approach, as well as a market approach utilizing another transaction that we had previously entered into for the same intellectual property, adjusted for changes in the market and other assumptions since that transaction. The supply agreement was valued utilizing the cost savings income approach. The relief from royalty income and cost saving income approaches employ significant unobservable inputs categorized as Level 3 inputs. The key unobservable inputs utilized include discount rates of approximately 13% to 15%, a market participant tax rate of 17%, and estimated level of future volumes and pricing based on current product and market data. | ||||||||
The adjustment to goodwill due to the QLogic Transaction was calculated by determining the value of the business sold in relation to the value of the Infrastructure and Networking reportable segment. The value of the business sold was determined utilizing the residual method. | ||||||||
Computation of Net Income Per Share | ||||||||
Net income per share (basic) is calculated by dividing net income by the weighted average number of common shares outstanding during the year. Net income per share (diluted) is calculated by adjusting outstanding shares, assuming any dilutive effects of stock options, stock purchase rights and restricted stock units calculated using the treasury stock method. Under the treasury stock method, an increase in the fair market value of our Class A common stock results in a greater dilutive effect from outstanding stock options, stock purchase rights and restricted stock units. Additionally, the exercise of employee stock options and stock purchase rights and the vesting of restricted stock units results in a further dilutive effect on net income per share. | ||||||||
The following table presents the computation of net income per share: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(In millions, except per share data) | ||||||||
Numerator: Net income | $ | 209 | $ | 165 | ||||
Denominator for net income per share (basic) | 600 | 584 | ||||||
Effect of dilutive securities: | ||||||||
Stock awards | 13 | 6 | ||||||
Denominator for net income per share (diluted) | 613 | 590 | ||||||
Net income per share (basic) | $ | 0.35 | $ | 0.28 | ||||
Net income per share (diluted) | $ | 0.34 | $ | 0.28 | ||||
Net income per share (diluted) does not include the effect of anti-dilutive potential common shares resulting from outstanding equity awards. There were 1 million and 35 million anti-dilutive potential common shares in the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Supplemental Cash Flow Information | ||||||||
In the three months ended March 31, 2015, we paid $20 million for capital equipment that was accrued as of December 31, 2014, and had billings of $6 million for capital equipment that were accrued but not yet paid as of March 31, 2015. We also had $19 million related to stock repurchases that had not settled by March 31, 2015. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||||||||||||||
Our financial instruments consist principally of cash and cash equivalents, short- and long-term marketable securities, accounts receivable, accounts payable and long-term debt. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: | ||||||||||||||||||||||||||||
Level 1: Inputs are based on quoted market prices for identical assets or liabilities in active markets at the measurement date. | ||||||||||||||||||||||||||||
Level 2:Inputs include quoted prices for similar assets or liabilities in active markets and/or quoted prices for identical or similar assets or liabilities in markets that are not active near the measurement date. | ||||||||||||||||||||||||||||
Level 3:Inputs include management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. | ||||||||||||||||||||||||||||
The fair value of our cash equivalents and certain marketable securities was determined based on “Level 1” inputs. The fair value of certain marketable securities and our long-term debt were determined based on “Level 2” inputs. The valuation techniques used to measure the fair value of our “Level 2” instruments were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. We do not have any marketable securities in the “Level 3” category. We believe that the recorded values of all our other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations. | ||||||||||||||||||||||||||||
Instruments Measured at Fair Value on a Recurring Basis. The following tables present our cash and marketable securities’ costs, gross unrealized gains, gross unrealized losses and fair value by major security type recorded as cash and cash equivalents or short-term or long-term marketable securities: | ||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cash | $ | 1,100 | $ | — | $ | — | $ | 1,100 | $ | 1,100 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Bank and time deposits | 310 | — | — | 310 | 310 | — | — | |||||||||||||||||||||
Money market funds | 68 | — | — | 68 | 68 | — | — | |||||||||||||||||||||
U.S. treasury and agency obligations | 1,563 | 1 | — | 1,564 | 5 | 178 | 1,381 | |||||||||||||||||||||
Subtotal | 1,941 | 1 | — | 1,942 | 383 | 178 | 1,381 | |||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 219 | — | — | 219 | 194 | 25 | — | |||||||||||||||||||||
Corporate bonds | 2,088 | 3 | (1 | ) | 2,090 | — | 1,061 | 1,029 | ||||||||||||||||||||
Asset-backed securities and other | 133 | — | — | 133 | — | 10 | 123 | |||||||||||||||||||||
Subtotal | 2,440 | 3 | (1 | ) | 2,442 | 194 | 1,096 | 1,152 | ||||||||||||||||||||
Level 3: | ||||||||||||||||||||||||||||
Level 3: None | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 5,481 | $ | 4 | $ | (1 | ) | $ | 5,484 | $ | 1,677 | $ | 1,274 | $ | 2,533 | |||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cash | $ | 659 | $ | — | $ | — | $ | 659 | $ | 659 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Bank and time deposits | 943 | — | — | 943 | 943 | — | — | |||||||||||||||||||||
Money market funds | 83 | — | — | 83 | 83 | — | — | |||||||||||||||||||||
U.S. treasury and agency obligations | 1,434 | — | (1 | ) | 1,433 | 12 | 192 | 1,229 | ||||||||||||||||||||
Subtotal | 2,460 | — | (1 | ) | 2,459 | 1,038 | 192 | 1,229 | ||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 800 | — | — | 800 | 798 | 2 | — | |||||||||||||||||||||
Corporate bonds | 1,931 | 1 | (2 | ) | 1,930 | 50 | 859 | 1,021 | ||||||||||||||||||||
Asset-backed securities and other | 141 | — | — | 141 | — | 8 | 133 | |||||||||||||||||||||
Subtotal | 2,872 | 1 | (2 | ) | 2,871 | 848 | 869 | 1,154 | ||||||||||||||||||||
Level 3: | ||||||||||||||||||||||||||||
Level 3: None | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 5,991 | $ | 1 | $ | (3 | ) | $ | 5,989 | $ | 2,545 | $ | 1,061 | $ | 2,383 | |||||||||||||
There were no transfers between Level 1, Level 2 or Level 3 securities in the three months ended March 31, 2015. All of our long-term marketable securities had maturities of between one and three years in duration at March 31, 2015. Our cash, cash equivalents and marketable securities at March 31, 2015, consisted of $2.53 billion held domestically, with the remaining balance of $2.95 billion held by our foreign subsidiaries. | ||||||||||||||||||||||||||||
At March 31, 2015, we had 173 investments with a fair value of $1.43 billion that were in an unrealized loss position for less than twelve months. Our gross unrealized losses of $1 million for these investments at March 31, 2015, were due to changes in market rates. We have determined that the gross unrealized losses on these investments at March 31, 2015, are temporary in nature. We evaluate securities for other-than-temporary impairment on a quarterly basis. Impairment is evaluated considering numerous factors, and their relative significance varies depending on the situation. Factors considered include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the issuer, and our intent and ability to hold the investment in order to allow for an anticipated recovery in fair value. | ||||||||||||||||||||||||||||
Instruments Not Recorded at Fair Value on a Recurring Basis. We measure the fair value of our long-term debt carried at amortized cost quarterly for disclosure purposes. The estimated fair value of long-term debt is determined by Level 2 inputs and is based primarily on quoted market prices for the same or similar issues. Based on the market prices, the fair value of our long-term debt was $1.64 billion and $1.61 billion as of March 31, 2015 and December 31, 2014, respectively. The recorded values of all our accounts receivable and accounts payable approximate their current fair values because of their nature and respective relatively short maturity dates or durations. | ||||||||||||||||||||||||||||
Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis. We measure the fair value of our cost method investments when they are deemed to be other-than-temporarily impaired, assets acquired and liabilities assumed in a business acquisition, goodwill and other long lived assets when they are held for sale or determined to be impaired, and for license and settlement agreements when they are part of a multiple element arrangement. See Notes 2 and 9 for discussion on fair value measurements of certain assets and liabilities recorded at fair value on a non-recurring basis. |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Taxes | Income Taxes | |||||||
The following table presents details of the provision for income taxes and our effective tax rates: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(In millions, except percentages) | ||||||||
Provision for income taxes | $ | 9 | $ | 3 | ||||
Effective tax rates | 4.1 | % | 1.8 | % | ||||
The differences between our effective tax rates and the 35% federal statutory rate resulted primarily from foreign earnings taxed at substantially lower rates than the federal statutory rate and domestic tax losses recorded without tax benefits. In determining our annualized effective tax rates, the tax effects of the impairments of long-lived assets of $143 million and $25 million in the three months ended March 31, 2015 and 2014, respectively, and the gain on sale of assets of $48 million in the three months ended March 31, 2014 were treated as discrete tax items. The impairment charges in the three months ended March 31, 2015 related to jurisdictions where no tax benefit could be recorded. A portion of the impairment charges in the three months ended March 31, 2014 resulted in the recording of a discrete tax benefit of $5 million. We also recorded discrete tax benefits for expirations of the statutes of limitations for the assessment of taxes in various foreign jurisdictions of $4 million in the three months ended March 31, 2014. | ||||||||
As a result of our cumulative tax losses in the U.S. and certain foreign jurisdictions, and the full utilization of our loss carryback opportunities, we have concluded that a full valuation allowance should be recorded in such jurisdictions. In certain other foreign jurisdictions where we do not have cumulative losses, we had net deferred tax assets of $3 million and $2 million at March 31, 2015 and December 31, 2014, respectively. |
Debt_and_Credit_Facility
Debt and Credit Facility | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||
Debt and Credit Facility | Debt and Credit Facility | |||||||||||||||||||
Senior Notes | ||||||||||||||||||||
The following table presents details of our senior notes, or the Notes, as of the dates listed below: | ||||||||||||||||||||
Date | Maturity | Interest | Effective | Issuance | March 31, | December 31, | ||||||||||||||
Issued | Date | Rate | Yield | Price | 2015 | 2014 | ||||||||||||||
(In millions) | ||||||||||||||||||||
Nov-11 | Nov-18 | 2.7 | % | 2.762 | % | 99.609 | % | $ | 500 | $ | 500 | |||||||||
Aug-12 | Aug-22 | 2.5 | 2.585 | 99.255 | 500 | 500 | ||||||||||||||
Jul-14 | Aug-24 | 3.5 | 3.546 | 99.615 | 350 | 350 | ||||||||||||||
Jul-14 | Aug-34 | 4.5 | 4.546 | 99.4 | 250 | 250 | ||||||||||||||
1,600 | 1,600 | |||||||||||||||||||
Unaccreted discount | (7 | ) | (7 | ) | ||||||||||||||||
Long-term debt | $ | 1,593 | $ | 1,593 | ||||||||||||||||
Credit Facility | ||||||||||||||||||||
In November 2010 we entered into a credit facility with certain institutional lenders that provides for unsecured revolving facility loans, swing line loans and letters of credit in an aggregate amount of up to $500 million. We amended this credit facility in July 2014 primarily to extend the maturity date to July 31, 2019, at which time all outstanding revolving facility loans (if any) and accrued and unpaid interest must be repaid. Loans made under the credit facility (other than swing line loans) bear interest, at our option, at either a Base Rate plus a margin that varies from 0.000% to 0.250% or a Eurodollar Rate plus a margin that varies from 0.625% to 1.250%. Swing line loans under the credit facility bear interest applicable to Base Rate loans. We are also required to pay a commitment fee on any unused commitments at a rate that varies from 0.060% to 0.150% per annum. We have not drawn on our credit facility to date. | ||||||||||||||||||||
We may also, upon the agreement of the existing lenders, increase the commitments under the credit facility by up to an additional $100 million. The credit facility contains customary representations, warranties and covenants. The financial covenant in the credit facility requires us to maintain a consolidated leverage ratio of no more than 3.25:1.00. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity |
Quarterly Dividend | |
In November 2014 our Board of Directors announced its intention to increase the quarterly cash dividend by 17% to $0.14 per share ($0.56 per share on an annual basis) payable to holders of our common stock. Pursuant to this plan we declared a quarterly cash dividend of $0.14 per share in January 2015. In the three months ended March 31, 2015 and 2014, we paid $84 million and $70 million, respectively, in dividends to holders of our Class A and Class B common stock. | |
Share Repurchase Programs | |
In February 2010 we announced that our Board of Directors had authorized an “evergreen” share repurchase program intended to offset dilution of incremental grants of stock awards associated with our stock incentive plans. The maximum number of shares of our Class A common stock that may be repurchased in any one year under this program (including under an accelerated share repurchase agreement or similar arrangement) is equal to the total number of shares issued pursuant to our equity awards in the previous year and the current year. This program does not have an expiration date and may be suspended at any time at the discretion of the Board of Directors. It may also be complemented with one or more additional share repurchase programs in the future. | |
In November 2014 our Board of Directors authorized an additional share repurchase program for the repurchase of such number of shares incremental to the number allowed under the evergreen program that would yield a total share repurchase for 2015 of up to $1 billion. | |
Under these programs, we repurchased 8.0 million shares of our Class A common stock at a weighted average price of $44.28 in the three months ended March 31, 2015. | |
Repurchases under our share repurchase programs were and are intended to be made in open market or privately negotiated transactions in compliance with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended. Our share repurchase programs do not obligate us to acquire any particular amount of our stock and may be suspended at any time at our discretion. |
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans | |||||||||||||||||||||||
Combined Incentive Plan Activity | ||||||||||||||||||||||||
Restricted stock unit activity is set forth below: | ||||||||||||||||||||||||
Restricted Stock Units | ||||||||||||||||||||||||
Outstanding | ||||||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||||||
Shares | Average | |||||||||||||||||||||||
Grant-Date | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
per Share | ||||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||
Balance at December 31, 2014 | 20 | $ | 32.38 | |||||||||||||||||||||
Restricted stock units granted | 7 | 42.52 | ||||||||||||||||||||||
Restricted stock units vested | (3 | ) | 33.61 | |||||||||||||||||||||
Balance at March 31, 2015 | 24 | $ | 35.09 | |||||||||||||||||||||
Stock option activity is set forth below: | ||||||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||||||
Shares | Average | |||||||||||||||||||||||
Exercise | ||||||||||||||||||||||||
Price | ||||||||||||||||||||||||
per Share | ||||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||
Balance at December 31, 2014 | 20 | $ | 33.84 | |||||||||||||||||||||
Options exercised | (5 | ) | 31.06 | |||||||||||||||||||||
Balance at March 31, 2015 | 15 | $ | 34.71 | |||||||||||||||||||||
Stock-Based Compensation Expense | ||||||||||||||||||||||||
The following table presents details of total stock-based compensation expense that is included in salaries and benefits in each functional line item in our unaudited condensed consolidated statements of income: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Cost of revenue | $ | 5 | $ | 6 | ||||||||||||||||||||
Research and development | 60 | 84 | ||||||||||||||||||||||
Selling, general and administrative | 25 | 30 | ||||||||||||||||||||||
The following table presents details of unearned stock-based compensation currently estimated to be expensed in the remainder of 2015 through 2019 related to unvested share-based payment awards: | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Unearned stock-based compensation | $ | 260 | $ | 253 | $ | 164 | $ | 79 | $ | 11 | $ | 767 | ||||||||||||
If there are any modifications or cancellations of the underlying unvested awards, we may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that we grant additional equity awards or assume unvested equity awards in connection with acquisitions. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
Claims and Litigation | |
We and certain of our subsidiaries are involved in various intellectual property and other proceedings, claims and litigation arising in the ordinary course of our business. We will disclose the nature of any such matters we believe to be material, along with (i) any accrual for loss contingencies associated with such legal proceedings; (ii) any determination by us that an unfavorable outcome is probable or reasonably possible; and (iii) the amount or range of any possible loss or a statement that we cannot reasonably estimate an amount or a range of possible loss. | |
In addition to asserted claims, from time to time we are approached by holders of intellectual property, including “non-practicing entities,” to engage in discussions about obtaining licenses to their intellectual property. We will disclose the nature of these unasserted claims if we determine that (i) it is probable an intellectual property holder will assert a claim of infringement; (ii) there is a reasonable possibility the outcome (assuming assertion) will be unfavorable; and (iii) the resulting liability would be material to our financial condition or results of operations. | |
While there can be no assurance, we believe that the ultimate outcome of current asserted and unasserted claims will not have a material adverse effect on our operating results, liquidity or financial position. However, our assessment of materiality may be impacted by limited information (particularly in the early stages of intellectual property proceedings), including, for example, about the patents-in-suit and Broadcom products against which the patents are being asserted. Accordingly, our assessment of materiality may change in the future based upon availability of discovery and further developments in the proceedings at issue. The results of legal proceedings are inherently uncertain, and material adverse outcomes are possible. | |
From time to time we may enter into confidential discussions regarding the potential settlement of pending intellectual property or proceedings, claims or litigation. There are a variety of factors that influence our decisions to settle and the amount we may choose to pay, including the strength of our case, developments in the litigation, the behavior of other interested parties, the demand on management time and the possible distraction of our employees associated with the case and/or the possibility that we may be subject to an injunction or other equitable remedy. In light of the numerous factors that go into a settlement decision, it is difficult to predict whether any particular settlement is possible, the appropriate terms of a settlement or the opportune time to settle a matter. The settlement of any pending litigation or other proceedings could require us to make substantial settlement payments and result in us incurring substantial costs. Furthermore, the settlement or resolution of any intellectual property proceeding may require us to grant a license to certain of our intellectual property rights to the other party under a cross-license agreement or could prevent us from manufacturing or selling some of our products or limit or restrict the type of work that employees may perform for us. |
Goodwill_and_Other_Purchased_I
Goodwill and Other Purchased Intangible Assets | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||
Goodwill and Other Purchased Intangible Assets | Goodwill and Purchased Intangible Assets | |||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||
The following table summarizes the activity related to the carrying value of our goodwill: | ||||||||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||||||
Broadband and Connectivity | Infrastructure and Networking | Foreign | Consolidated | |||||||||||||||||||||||||
Currency | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Goodwill | $ | 1,802 | $ | 3,768 | $ | (31 | ) | $ | 5,539 | |||||||||||||||||||
Accumulated impairment losses | (543 | ) | (1,286 | ) | — | (1,829 | ) | |||||||||||||||||||||
Goodwill at December 31, 2014 | 1,259 | 2,482 | (31 | ) | 3,710 | |||||||||||||||||||||||
Effects of foreign currency translation | — | — | (15 | ) | (15 | ) | ||||||||||||||||||||||
Goodwill at March 31, 2015 | $ | 1,259 | $ | 2,482 | $ | (46 | ) | $ | 3,695 | |||||||||||||||||||
Purchased Intangible Assets | ||||||||||||||||||||||||||||
The following table presents details of our purchased intangible assets: | ||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Developed technology | $ | 919 | $ | (452 | ) | $ | 467 | $ | 1,250 | $ | (619 | ) | $ | 631 | ||||||||||||||
In-process research and development | 10 | — | 10 | 19 | — | 19 | ||||||||||||||||||||||
Customer relationships | 176 | (164 | ) | 12 | 177 | (164 | ) | 13 | ||||||||||||||||||||
Other | 32 | (31 | ) | 1 | 32 | (31 | ) | 1 | ||||||||||||||||||||
$ | 1,137 | $ | (647 | ) | $ | 490 | $ | 1,478 | $ | (814 | ) | $ | 664 | |||||||||||||||
Amortization of Purchased Intangible Assets | ||||||||||||||||||||||||||||
The following table presents details of the amortization of purchased intangible assets included in the cost of revenue and other operating expense categories: | ||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cost of revenue | $ | 36 | $ | 50 | ||||||||||||||||||||||||
Other operating expenses | 1 | 9 | ||||||||||||||||||||||||||
$ | 37 | $ | 59 | |||||||||||||||||||||||||
The following table presents details of the amortization of existing purchased intangible assets (including IPR&D), which is currently estimated to be expensed in the remainder of 2015 and thereafter: | ||||||||||||||||||||||||||||
Purchased Intangible Asset Amortization by Year | ||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cost of revenue | $ | 94 | $ | 93 | $ | 74 | $ | 59 | $ | 45 | $ | 112 | $ | 477 | ||||||||||||||
Other operating expenses | 3 | 3 | 2 | 2 | 2 | 1 | 13 | |||||||||||||||||||||
$ | 97 | $ | 96 | $ | 76 | $ | 61 | $ | 47 | $ | 113 | $ | 490 | |||||||||||||||
Impairment of Purchased Intangible Assets | ||||||||||||||||||||||||||||
In the three months ended March 31, 2015, we recorded impairment charges for developed technology of $135 million related to knowledge-based processor products, or KBPs, related to our acquisition of NetLogic Microsystems, Inc., included in our Infrastructure and Networking reportable segment. The primary factor contributing to the impairment of our KBP assets was a reduction in the size of the addressable market for merchant KBPs driven by increasing integration of comparable functionality into Broadcom Ethernet switches and some customers preferring to design internal solutions. This resulted in reduction in the revenue outlook for these products and the corresponding cash flows identified with the impaired assets. | ||||||||||||||||||||||||||||
In the three months ended March 31, 2014, we recorded impairment charges primarily for developed technology of $25 million, of which $19 million was related to our acquisition of SC Square Ltd., or SC Square, included in our Broadband and Connectivity reportable segment, and $5 million related to the purchase of LTE-related assets from affiliates of Renesas Electronics Corporation, or the Renesas Transaction, included in cellular baseband business. See Note 11 for a discussion of our reportable segments. The primary factors contributing to these impairment charges were (i) for SC Square, the discontinuation of certain security solutions and (ii) for the Renesas Transaction, a reduction in revenue expectations related to an acquired legacy LTE modem product and an associated decrease to the respective estimated cash flows. | ||||||||||||||||||||||||||||
In determining the amount of the impairment charges we calculated fair values as of the impairment dates for acquired intangible assets. We used several variations of the income approach to compute the fair values, including the multiple period excess earnings, relief from royalty, and incremental cash flow methods. These methods employ significant unobservable inputs categorized as Level 3 inputs. The key unobservable inputs utilized include discount rates ranging from 18% to 22%, a market participant tax rate of 17%, and estimated level of future cash flows based on current product and market data. |
Exit_of_Cellular_Baseband_Busi
Exit of Cellular Baseband Business | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Restructuring and Related Activities [Abstract] | ||||
Exit of Cellular Baseband Business [Text Block] | Exit from Cellular Baseband Business | |||
Restructuring Costs | ||||
On June 2, 2014, we announced that we were exploring strategic alternatives, including a potential sale and/or wind-down, for our cellular baseband business. We reached this decision based on our conclusion that the commercial and economic opportunity in this business was not sufficiently compelling to justify the continued investment, especially when compared to other opportunities within our product portfolio. On June 26, 2014, the Audit Committee of our Board of Directors approved a global restructuring plan, or the 2014 Plan, that focuses on cost reductions and operating efficiencies and better aligns our resources to areas of strategic focus. In July 2014 we decided to pursue a wind-down of the cellular baseband business. | ||||
As of March 31, 2015 we have recognized $159 million of restructuring charges related to the exit from the cellular baseband business. These charges are comprised of (i) $131 million for employee termination benefits for 2,300 employees and (ii) $28 million for certain non-cancelable contract costs and other costs to close and consolidate 15 locations facilities. We expect to record additional restructuring charges of up to $10 million over the next 12 months, primarily for costs associated with the closure of three additional facilities. | ||||
The following table summarizes activity related to our restructuring liabilities: | ||||
Three Months Ended March 31, 2015 | ||||
(In millions) | ||||
Balance at December 31, 2014 | $ | 33 | ||
Charged to expense | 7 | |||
Cash payments | (21 | ) | ||
Balance at March 31, 2015 | $ | 19 | ||
Reportable_Segments_Significan
Reportable Segments, Significant Customer and Geographical Information | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Business Enterprise Segments, Significant Customer and Geographical Information | Reportable Segments, Significant Customer and Geographical Information | |||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||
Our business is structured around two reportable segments: (i) Broadband and Connectivity; and (ii) Infrastructure and Networking. Our Chief Executive Officer, who is our chief operating decision maker, or CODM, reviews financial information at the reportable segment level. | ||||||||||||||||||||||||
Our net revenue is generated principally from sales of integrated circuit products. While we derive some revenue from other sources, such revenue is not material as it represents less than 1% of our total net revenue. | ||||||||||||||||||||||||
With respect to the sales of integrated circuit products, we have approximately 450 products that are grouped into approximately 60 product lines. We have concluded that these products constitute a group of similar products within each reportable segment in each of the following respects: | ||||||||||||||||||||||||
• | the integrated circuits marketed by each of our reportable segments are sold to one type of customer: manufacturers of wired and wireless communications equipment, which incorporate our integrated circuits into their electronic products; | |||||||||||||||||||||||
• | the integrated circuits sold by each of our reportable segments use the same standard CMOS manufacturing processes; | |||||||||||||||||||||||
• | all of our integrated circuits are manufactured, assembled and tested using the same or similar group of independent, third-party subcontractors; and | |||||||||||||||||||||||
• | all of our integrated circuits are sold through a centralized sales force and common wholesale distributors. | |||||||||||||||||||||||
The “Cellular Baseband” category shown in the table below represents the operations of the cellular baseband business that is currently winding down. As the CODM no longer reviews the financial information for purposes of allocating resources and assessing performance of Cellular Baseband, it does not qualify as an operating and reportable segment. In addition, as Cellular Baseband has not completely ceased operations and will continue to generate revenue, albeit declining, and expenses for the foreseeable future, it does not currently meet the requirements for “discontinued operations” under applicable accounting standards. We have included Cellular Baseband net revenue and operating income (loss) in the below tables as if it did meet the requirements of a reportable segment because we believe this information is useful to users of our financial statements. | ||||||||||||||||||||||||
We also report an “All Other” category, which includes operating expenses that we do not allocate to our reportable segments as these expenses are not included in the segment operating performance measures evaluated by our CODM. Operating costs and expenses that are not allocated include amortization of purchased intangible assets, amortization of acquired inventory valuation step-up and inventory charges relating to our decision to exit our cellular baseband business, impairment of goodwill and other long-lived assets, net settlement costs (gains), net restructuring costs, other charges (gains), and other miscellaneous expenses related to corporate allocations that were either over or under the original projections at the beginning of the year. We include acquisition-related items in the “All Other” category as our CODM reviews reportable segment performance exclusive of these charges. Our CODM does not review information regarding total assets, interest income or income taxes on a segment basis. The accounting policies for segment reporting are the same as for Broadcom as a whole. | ||||||||||||||||||||||||
All prior-period amounts have been adjusted retrospectively to reflect the inclusion of stock-based compensation and our reportable segment changes that occurred in 2014. For a complete summary of these changes, please refer to Note 11, “Reportable Segments, Significant Customer and Geographical Information,” in Part IV, Item 15 of our 2014 Annual Report. | ||||||||||||||||||||||||
The following tables present details of our reportable segments and the “Cellular Baseband” and “All Other” categories: | ||||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||
Broadband and Connectivity | Infrastructure and Networking | Total Reportable Segments | Cellular Baseband | All Other | Consolidated | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Net revenue | $ | 1,408 | $ | 631 | $ | 2,039 | $ | 19 | $ | — | $ | 2,058 | ||||||||||||
Operating income (loss) | 241 | 167 | 408 | (7 | ) | (178 | ) | 223 | ||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
Net revenue | $ | 1,246 | $ | 594 | 1,840 | $ | 144 | $ | — | $ | 1,984 | |||||||||||||
Operating income (loss) | 184 | 149 | 333 | (139 | ) | (24 | ) | 170 | ||||||||||||||||
Included In All Other Category: | Three Months Ended | |||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Amortization of purchased intangible assets | $ | 37 | $ | 59 | ||||||||||||||||||||
Inventory charges related to the exit of the cellular baseband business | (2 | ) | — | |||||||||||||||||||||
Impairments of long-lived assets | 143 | 25 | ||||||||||||||||||||||
Settlement costs | — | 2 | ||||||||||||||||||||||
Restructuring costs, net | 7 | 5 | ||||||||||||||||||||||
Other gains, net | (4 | ) | (52 | ) | ||||||||||||||||||||
Miscellaneous corporate allocation variances | (3 | ) | (15 | ) | ||||||||||||||||||||
Total other operating costs and expenses | $ | 178 | $ | 24 | ||||||||||||||||||||
Total operating loss for the “All Other” category | $ | (178 | ) | $ | (24 | ) | ||||||||||||||||||
Significant Customer and Geographical Information | ||||||||||||||||||||||||
Sales to our significant customers, including sales to their manufacturing subcontractors, as a percentage of net revenue | ||||||||||||||||||||||||
were as follows: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Two largest customers | 26.9 | % | 30.2 | % | ||||||||||||||||||||
Five largest customers as a group | 42.1 | 45.5 | ||||||||||||||||||||||
The geographical distribution of our shipments, as a percentage of product revenue, was as follows: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Hong Kong | 32.5 | % | 27.4 | % | ||||||||||||||||||||
China (exclusive of Hong Kong) | 24.1 | 22.6 | ||||||||||||||||||||||
Singapore, Taiwan, Thailand and Japan | 27 | 34.9 | ||||||||||||||||||||||
United States | 4.6 | 4.3 | ||||||||||||||||||||||
Europe | 1.9 | 2.1 | ||||||||||||||||||||||
Other | 9.9 | 8.7 | ||||||||||||||||||||||
100 | % | 100 | % |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
Our Company | Our Company | |
Broadcom Corporation (including our subsidiaries, referred to collectively in this Report as “Broadcom,” “we,” “our” and “us”) is a global leader and innovator in semiconductor solutions for wired and wireless communications. Broadcom® provides one of the industry’s broadest portfolio of highly-integrated system-on-a-chip solutions, or SoCs, that seamlessly deliver voice, video, data and multimedia connectivity in the home, office and mobile environments. | ||
Basis of Presentation | Basis of Presentation | |
The interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, for interim financial information and with the instructions to Securities and Exchange Commission, or SEC, Form 10-Q and Article 10 of SEC Regulation S-X. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended December 31, 2014, included in our 2014 Annual Report on Form 10-K filed with the SEC on January 29, 2015, referred to as our 2014 Annual Report. | ||
The interim condensed consolidated financial statements included herein are unaudited; however, they contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly our results of operations and financial position for the interim periods. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for future quarters or the full year. | ||
For a complete summary of our significant accounting policies, please refer to Note 1, “Summary of Significant Accounting Policies,” in Part IV, Item 15 of our 2014 Annual Report. There have been no material changes to our significant accounting policies during the three months ended March 31, 2015. | ||
Use of Estimates | Use of Estimates | |
The preparation of financial statements in accordance with United States generally accepted accounting principles, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of total net revenue and expenses in the reporting periods. We regularly evaluate estimates and assumptions related to revenue recognition, rebates, allowances for doubtful accounts, sales returns and allowances, warranty obligations, inventory valuation, goodwill and long-lived intangible asset valuations, deferred income tax asset valuation allowances, uncertain tax positions, tax contingencies, stock-based compensation expense, restructuring costs or reversals, litigation and other loss contingencies, gains and losses on sale of assets, strategic investments and self-insurance. These estimates and assumptions are based on current facts, historical experience and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of revenue, costs and expenses that are not readily apparent from other sources. The actual results we experience may differ materially and adversely from our estimates. To the extent there are material differences between the estimates and actual results, our future results of operations will be affected. | ||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |
In May 2014 the Financial Accountings Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, or ASU 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2017, and early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting. | ||
Earnings Per Share | Computation of Net Income Per Share | |
Net income per share (basic) is calculated by dividing net income by the weighted average number of common shares outstanding during the year. Net income per share (diluted) is calculated by adjusting outstanding shares, assuming any dilutive effects of stock options, stock purchase rights and restricted stock units calculated using the treasury stock method. Under the treasury stock method, an increase in the fair market value of our Class A common stock results in a greater dilutive effect from outstanding stock options, stock purchase rights and restricted stock units. Additionally, the exercise of employee stock options and stock purchase rights and the vesting of restricted stock units results in a further dilutive effect on net income per share. | ||
Fair Value Measurements | Fair Value Measurements | |
Our financial instruments consist principally of cash and cash equivalents, short- and long-term marketable securities, accounts receivable, accounts payable and long-term debt. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: | ||
Level 1: Inputs are based on quoted market prices for identical assets or liabilities in active markets at the measurement date. | ||
Level 2:Inputs include quoted prices for similar assets or liabilities in active markets and/or quoted prices for identical or similar assets or liabilities in markets that are not active near the measurement date. | ||
Level 3:Inputs include management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. | ||
The fair value of our cash equivalents and certain marketable securities was determined based on “Level 1” inputs. The fair value of certain marketable securities and our long-term debt were determined based on “Level 2” inputs. The valuation techniques used to measure the fair value of our “Level 2” instruments were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. We do not have any marketable securities in the “Level 3” category. We believe that the recorded values of all our other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations. | ||
Segment Reporting, Policy | Reportable Segments | |
Our business is structured around two reportable segments: (i) Broadband and Connectivity; and (ii) Infrastructure and Networking. Our Chief Executive Officer, who is our chief operating decision maker, or CODM, reviews financial information at the reportable segment level. | ||
Our net revenue is generated principally from sales of integrated circuit products. While we derive some revenue from other sources, such revenue is not material as it represents less than 1% of our total net revenue. | ||
With respect to the sales of integrated circuit products, we have approximately 450 products that are grouped into approximately 60 product lines. We have concluded that these products constitute a group of similar products within each reportable segment in each of the following respects: | ||
• | the integrated circuits marketed by each of our reportable segments are sold to one type of customer: manufacturers of wired and wireless communications equipment, which incorporate our integrated circuits into their electronic products; | |
• | the integrated circuits sold by each of our reportable segments use the same standard CMOS manufacturing processes; | |
• | all of our integrated circuits are manufactured, assembled and tested using the same or similar group of independent, third-party subcontractors; and | |
• | all of our integrated circuits are sold through a centralized sales force and common wholesale distributors. | |
The “Cellular Baseband” category shown in the table below represents the operations of the cellular baseband business that is currently winding down. As the CODM no longer reviews the financial information for purposes of allocating resources and assessing performance of Cellular Baseband, it does not qualify as an operating and reportable segment. In addition, as Cellular Baseband has not completely ceased operations and will continue to generate revenue, albeit declining, and expenses for the foreseeable future, it does not currently meet the requirements for “discontinued operations” under applicable accounting standards. We have included Cellular Baseband net revenue and operating income (loss) in the below tables as if it did meet the requirements of a reportable segment because we believe this information is useful to users of our financial statements. | ||
We also report an “All Other” category, which includes operating expenses that we do not allocate to our reportable segments as these expenses are not included in the segment operating performance measures evaluated by our CODM. Operating costs and expenses that are not allocated include amortization of purchased intangible assets, amortization of acquired inventory valuation step-up and inventory charges relating to our decision to exit our cellular baseband business, impairment of goodwill and other long-lived assets, net settlement costs (gains), net restructuring costs, other charges (gains), and other miscellaneous expenses related to corporate allocations that were either over or under the original projections at the beginning of the year. We include acquisition-related items in the “All Other” category as our CODM reviews reportable segment performance exclusive of these charges. Our CODM does not review information regarding total assets, interest income or income taxes on a segment basis. The accounting policies for segment reporting are the same as for Broadcom as a whole. | ||
All prior-period amounts have been adjusted retrospectively to reflect the inclusion of stock-based compensation and our reportable segment changes that occurred in 2014. For a complete summary of these changes, please refer to Note 11, “Reportable Segments, Significant Customer and Geographical Information,” in Part IV, Item 15 of our 2014 Annual Report. |
Supplemental_Financial_Informa1
Supplemental Financial Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Inventory | The following tables present details of our unaudited condensed consolidated financial statements: | |||||||
Inventory | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(In millions) | ||||||||
Work in process | $ | 273 | $ | 180 | ||||
Finished goods | 357 | 351 | ||||||
$ | 630 | $ | 531 | |||||
Accrued Liabilities | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(In millions) | ||||||||
Accrued rebates | $ | 350 | $ | 574 | ||||
Accrued taxes | 28 | 28 | ||||||
Accrued royalties | 19 | 19 | ||||||
Accrued settlement charges | 17 | 17 | ||||||
Accrued legal costs | 9 | 10 | ||||||
Warranty reserve | 6 | 6 | ||||||
Restructuring liabilities | 13 | 28 | ||||||
Other | 123 | 109 | ||||||
$ | 565 | $ | 791 | |||||
Other Long-Term Liabilities | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(In millions) | ||||||||
Deferred revenue | $ | 98 | $ | 105 | ||||
Accrued taxes | 76 | 77 | ||||||
Deferred rent | 34 | 38 | ||||||
Deferred tax liabilities | 17 | 17 | ||||||
Accrued settlement charges | 13 | 17 | ||||||
Other long-term liabilities | 24 | 23 | ||||||
$ | 262 | $ | 277 | |||||
Accrued Rebate Activity | The following table summarizes activity related to accrued rebates: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(In millions) | ||||||||
Beginning balance | $ | 574 | $ | 409 | ||||
Charged as a reduction of revenue | 221 | 187 | ||||||
Reversal of unclaimed rebates | (4 | ) | (6 | ) | ||||
Payments | (441 | ) | (74 | ) | ||||
Ending balance | $ | 350 | $ | 516 | ||||
Computation of Net Income Per Share | The following table presents the computation of net income per share: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(In millions, except per share data) | ||||||||
Numerator: Net income | $ | 209 | $ | 165 | ||||
Denominator for net income per share (basic) | 600 | 584 | ||||||
Effect of dilutive securities: | ||||||||
Stock awards | 13 | 6 | ||||||
Denominator for net income per share (diluted) | 613 | 590 | ||||||
Net income per share (basic) | $ | 0.35 | $ | 0.28 | ||||
Net income per share (diluted) | $ | 0.34 | $ | 0.28 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||
Cash and cash equivalents or short-term or long-term marketable securities | The following tables present our cash and marketable securities’ costs, gross unrealized gains, gross unrealized losses and fair value by major security type recorded as cash and cash equivalents or short-term or long-term marketable securities: | |||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cash | $ | 1,100 | $ | — | $ | — | $ | 1,100 | $ | 1,100 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Bank and time deposits | 310 | — | — | 310 | 310 | — | — | |||||||||||||||||||||
Money market funds | 68 | — | — | 68 | 68 | — | — | |||||||||||||||||||||
U.S. treasury and agency obligations | 1,563 | 1 | — | 1,564 | 5 | 178 | 1,381 | |||||||||||||||||||||
Subtotal | 1,941 | 1 | — | 1,942 | 383 | 178 | 1,381 | |||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 219 | — | — | 219 | 194 | 25 | — | |||||||||||||||||||||
Corporate bonds | 2,088 | 3 | (1 | ) | 2,090 | — | 1,061 | 1,029 | ||||||||||||||||||||
Asset-backed securities and other | 133 | — | — | 133 | — | 10 | 123 | |||||||||||||||||||||
Subtotal | 2,440 | 3 | (1 | ) | 2,442 | 194 | 1,096 | 1,152 | ||||||||||||||||||||
Level 3: | ||||||||||||||||||||||||||||
Level 3: None | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 5,481 | $ | 4 | $ | (1 | ) | $ | 5,484 | $ | 1,677 | $ | 1,274 | $ | 2,533 | |||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cash | $ | 659 | $ | — | $ | — | $ | 659 | $ | 659 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Bank and time deposits | 943 | — | — | 943 | 943 | — | — | |||||||||||||||||||||
Money market funds | 83 | — | — | 83 | 83 | — | — | |||||||||||||||||||||
U.S. treasury and agency obligations | 1,434 | — | (1 | ) | 1,433 | 12 | 192 | 1,229 | ||||||||||||||||||||
Subtotal | 2,460 | — | (1 | ) | 2,459 | 1,038 | 192 | 1,229 | ||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 800 | — | — | 800 | 798 | 2 | — | |||||||||||||||||||||
Corporate bonds | 1,931 | 1 | (2 | ) | 1,930 | 50 | 859 | 1,021 | ||||||||||||||||||||
Asset-backed securities and other | 141 | — | — | 141 | — | 8 | 133 | |||||||||||||||||||||
Subtotal | 2,872 | 1 | (2 | ) | 2,871 | 848 | 869 | 1,154 | ||||||||||||||||||||
Level 3: | ||||||||||||||||||||||||||||
Level 3: None | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 5,991 | $ | 1 | $ | (3 | ) | $ | 5,989 | $ | 2,545 | $ | 1,061 | $ | 2,383 | |||||||||||||
Income_Taxes_Income_Taxes_Tabl
Income Taxes Income Taxes (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Tax Provision [Table Text Block] | The following table presents details of the provision for income taxes and our effective tax rates: | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(In millions, except percentages) | ||||||||
Provision for income taxes | $ | 9 | $ | 3 | ||||
Effective tax rates | 4.1 | % | 1.8 | % |
Debt_and_Credit_Facility_Table
Debt and Credit Facility (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||
Summary of debt | The following table presents details of our senior notes, or the Notes, as of the dates listed below: | |||||||||||||||||||
Date | Maturity | Interest | Effective | Issuance | March 31, | December 31, | ||||||||||||||
Issued | Date | Rate | Yield | Price | 2015 | 2014 | ||||||||||||||
(In millions) | ||||||||||||||||||||
Nov-11 | Nov-18 | 2.7 | % | 2.762 | % | 99.609 | % | $ | 500 | $ | 500 | |||||||||
Aug-12 | Aug-22 | 2.5 | 2.585 | 99.255 | 500 | 500 | ||||||||||||||
Jul-14 | Aug-24 | 3.5 | 3.546 | 99.615 | 350 | 350 | ||||||||||||||
Jul-14 | Aug-34 | 4.5 | 4.546 | 99.4 | 250 | 250 | ||||||||||||||
1,600 | 1,600 | |||||||||||||||||||
Unaccreted discount | (7 | ) | (7 | ) | ||||||||||||||||
Long-term debt | $ | 1,593 | $ | 1,593 | ||||||||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||
Restricted stock unit activity | Restricted stock unit activity is set forth below: | |||||||||||||||||||||||
Restricted Stock Units | ||||||||||||||||||||||||
Outstanding | ||||||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||||||
Shares | Average | |||||||||||||||||||||||
Grant-Date | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
per Share | ||||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||
Balance at December 31, 2014 | 20 | $ | 32.38 | |||||||||||||||||||||
Restricted stock units granted | 7 | 42.52 | ||||||||||||||||||||||
Restricted stock units vested | (3 | ) | 33.61 | |||||||||||||||||||||
Balance at March 31, 2015 | 24 | $ | 35.09 | |||||||||||||||||||||
Activity under all stock option incentive plans | Stock option activity is set forth below: | |||||||||||||||||||||||
Options Outstanding | ||||||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||||||
Shares | Average | |||||||||||||||||||||||
Exercise | ||||||||||||||||||||||||
Price | ||||||||||||||||||||||||
per Share | ||||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||
Balance at December 31, 2014 | 20 | $ | 33.84 | |||||||||||||||||||||
Options exercised | (5 | ) | 31.06 | |||||||||||||||||||||
Balance at March 31, 2015 | 15 | $ | 34.71 | |||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The following table presents details of total stock-based compensation expense that is included in salaries and benefits in each functional line item in our unaudited condensed consolidated statements of income: | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Cost of revenue | $ | 5 | $ | 6 | ||||||||||||||||||||
Research and development | 60 | 84 | ||||||||||||||||||||||
Selling, general and administrative | 25 | 30 | ||||||||||||||||||||||
Unearned stock-based compensation estimated to be expensed related to unvested share-based payment awards | The following table presents details of unearned stock-based compensation currently estimated to be expensed in the remainder of 2015 through 2019 related to unvested share-based payment awards: | |||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Total | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Unearned stock-based compensation | $ | 260 | $ | 253 | $ | 164 | $ | 79 | $ | 11 | $ | 767 | ||||||||||||
Goodwill_and_Other_Purchased_I1
Goodwill and Other Purchased Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||
Goodwill | The following table summarizes the activity related to the carrying value of our goodwill: | |||||||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||||||
Broadband and Connectivity | Infrastructure and Networking | Foreign | Consolidated | |||||||||||||||||||||||||
Currency | ||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Goodwill | $ | 1,802 | $ | 3,768 | $ | (31 | ) | $ | 5,539 | |||||||||||||||||||
Accumulated impairment losses | (543 | ) | (1,286 | ) | — | (1,829 | ) | |||||||||||||||||||||
Goodwill at December 31, 2014 | 1,259 | 2,482 | (31 | ) | 3,710 | |||||||||||||||||||||||
Effects of foreign currency translation | — | — | (15 | ) | (15 | ) | ||||||||||||||||||||||
Goodwill at March 31, 2015 | $ | 1,259 | $ | 2,482 | $ | (46 | ) | $ | 3,695 | |||||||||||||||||||
Purchased Intangible Assets | The following table presents details of our purchased intangible assets: | |||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Developed technology | $ | 919 | $ | (452 | ) | $ | 467 | $ | 1,250 | $ | (619 | ) | $ | 631 | ||||||||||||||
In-process research and development | 10 | — | 10 | 19 | — | 19 | ||||||||||||||||||||||
Customer relationships | 176 | (164 | ) | 12 | 177 | (164 | ) | 13 | ||||||||||||||||||||
Other | 32 | (31 | ) | 1 | 32 | (31 | ) | 1 | ||||||||||||||||||||
$ | 1,137 | $ | (647 | ) | $ | 490 | $ | 1,478 | $ | (814 | ) | $ | 664 | |||||||||||||||
Amortization of Purchased Intangible Assets | The following table presents details of the amortization of purchased intangible assets included in the cost of revenue and other operating expense categories: | |||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cost of revenue | $ | 36 | $ | 50 | ||||||||||||||||||||||||
Other operating expenses | 1 | 9 | ||||||||||||||||||||||||||
$ | 37 | $ | 59 | |||||||||||||||||||||||||
Amortization of Existing Purchased Intangible Assets | The following table presents details of the amortization of existing purchased intangible assets (including IPR&D), which is currently estimated to be expensed in the remainder of 2015 and thereafter: | |||||||||||||||||||||||||||
Purchased Intangible Asset Amortization by Year | ||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Cost of revenue | $ | 94 | $ | 93 | $ | 74 | $ | 59 | $ | 45 | $ | 112 | $ | 477 | ||||||||||||||
Other operating expenses | 3 | 3 | 2 | 2 | 2 | 1 | 13 | |||||||||||||||||||||
$ | 97 | $ | 96 | $ | 76 | $ | 61 | $ | 47 | $ | 113 | $ | 490 | |||||||||||||||
Exit_of_Cellular_Baseband_Busi1
Exit of Cellular Baseband Business (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Restructuring and Related Activities [Abstract] | ||||
Schedule of Restructuring Reserve [Table Text Block] | The following table summarizes activity related to our restructuring liabilities: | |||
Three Months Ended March 31, 2015 | ||||
(In millions) | ||||
Balance at December 31, 2014 | $ | 33 | ||
Charged to expense | 7 | |||
Cash payments | (21 | ) | ||
Balance at March 31, 2015 | $ | 19 | ||
Reportable_Segments_Significan1
Reportable Segments, Significant Customer and Geographical Information (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Reportable segments and the All Other category | The following tables present details of our reportable segments and the “Cellular Baseband” and “All Other” categories: | |||||||||||||||||||||||
Reportable Segments | ||||||||||||||||||||||||
Broadband and Connectivity | Infrastructure and Networking | Total Reportable Segments | Cellular Baseband | All Other | Consolidated | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
Net revenue | $ | 1,408 | $ | 631 | $ | 2,039 | $ | 19 | $ | — | $ | 2,058 | ||||||||||||
Operating income (loss) | 241 | 167 | 408 | (7 | ) | (178 | ) | 223 | ||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||||||
Net revenue | $ | 1,246 | $ | 594 | 1,840 | $ | 144 | $ | — | $ | 1,984 | |||||||||||||
Operating income (loss) | 184 | 149 | 333 | (139 | ) | (24 | ) | 170 | ||||||||||||||||
All other category included | ||||||||||||||||||||||||
Included In All Other Category: | Three Months Ended | |||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Amortization of purchased intangible assets | $ | 37 | $ | 59 | ||||||||||||||||||||
Inventory charges related to the exit of the cellular baseband business | (2 | ) | — | |||||||||||||||||||||
Impairments of long-lived assets | 143 | 25 | ||||||||||||||||||||||
Settlement costs | — | 2 | ||||||||||||||||||||||
Restructuring costs, net | 7 | 5 | ||||||||||||||||||||||
Other gains, net | (4 | ) | (52 | ) | ||||||||||||||||||||
Miscellaneous corporate allocation variances | (3 | ) | (15 | ) | ||||||||||||||||||||
Total other operating costs and expenses | $ | 178 | $ | 24 | ||||||||||||||||||||
Total operating loss for the “All Other” category | $ | (178 | ) | $ | (24 | ) | ||||||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Sales to our significant customers, including sales to their manufacturing subcontractors, as a percentage of net revenue | |||||||||||||||||||||||
were as follows: | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Two largest customers | 26.9 | % | 30.2 | % | ||||||||||||||||||||
Five largest customers as a group | 42.1 | 45.5 | ||||||||||||||||||||||
Percentage of product revenue from shipments by geographic region | The geographical distribution of our shipments, as a percentage of product revenue, was as follows: | |||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Hong Kong | 32.5 | % | 27.4 | % | ||||||||||||||||||||
China (exclusive of Hong Kong) | 24.1 | 22.6 | ||||||||||||||||||||||
Singapore, Taiwan, Thailand and Japan | 27 | 34.9 | ||||||||||||||||||||||
United States | 4.6 | 4.3 | ||||||||||||||||||||||
Europe | 1.9 | 2.1 | ||||||||||||||||||||||
Other | 9.9 | 8.7 | ||||||||||||||||||||||
100 | % | 100 | % |
Supplemental_Financial_Informa2
Supplemental Financial Information (Inventory) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory | ||
Work in process | $273 | $180 |
Finished goods | 357 | 351 |
Inventory, net | $630 | $531 |
Supplemental_Financial_Informa3
Supplemental Financial Information (Accrued Liabilities) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Accrued Liabilities, Current [Abstract] | |||
Accrued rebates | $350 | $516 | |
Accrued taxes | 28 | 28 | |
Accrued royalties | 19 | 19 | |
Accrued settlement charges | 17 | 17 | |
Accrued legal costs | 9 | 10 | |
Warranty reserve | 6 | 6 | |
Restructuring liabilities | 13 | 28 | |
Other | 123 | 109 | |
Accrued liabilities | 565 | 791 | |
Other Liabilities, Noncurrent [Abstract] | |||
Deferred revenue | 98 | 105 | |
Accrued taxes | 76 | 77 | |
Deferred rent | 34 | 38 | |
Deferred tax liabilities | 17 | 17 | |
Accrued settlement charges | 13 | 17 | |
Other long-term liabilities | 24 | 23 | |
Other long-term liabilities, Total | 262 | 277 | |
Accrued Rebate Activity [Roll Forward] | |||
Beginning balance | 574 | 409 | |
Charged as a reduction of revenue | 221 | 187 | |
Reversal of unclaimed rebates | 4 | 6 | |
Payments | 441 | 74 | |
Ending balance | $350 | $516 |
Supplemental_Financial_Informa4
Supplemental Financial Information (Earnings Per Share) (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Numerator: Net income | $209 | $165 |
Denominator for net income per share (basic) (shares) | 600 | 584 |
Effect of dilutive securities: | ||
Stock awards (shares) | 13 | 6 |
Denominator for net income per share (diluted) (shares) | 613 | 590 |
Net income per share (basic) (usd per share) | $0.35 | $0.28 |
Net income per share (diluted) (usd per share) | $0.34 | $0.28 |
Anti-dilutive common share equivalents (shares) | 1 | 35 |
Supplemental_Financial_Informa5
Supplemental Financial Information (Property and Equipment, Net) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
sqft | |
Property, Plant and Equipment [Abstract] | |
Payments to Acquire Land and other assets | $156 |
Size of new Corporate Campus | 2,000,000 |
Payments to Acquire Land Held-for-use | 110 |
Additions to Other Assets, Amount | $46 |
Supplemental_Financial_Informa6
Supplemental Financial Information (Other Information) (Details) (USD $) | 1 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 |
Deferred Revenue Arrangement [Line Items] | ||
Proceeds from Sale of business and license agreement | $209 | |
Gain on Disposition of Asset Group | 48 | |
Decrease in Goodwill due to sale | 37 | |
Term Of Deferred Revenue | 7 years | |
Fair Value, Inputs, Level 3 [Member] | Liability [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Tax rate | 17.00% | |
Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Liability [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Fair value inputs, discount rate | 13.00% | |
Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Liability [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Fair value inputs, discount rate | 15.00% | |
QLogic [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue | 120 | 120 |
Nonsoftware License Arrangement [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue | 76 | 76 |
Up-front Payment Arrangement [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred Revenue | $44 | 44 |
Supplemental_Financial_Informa7
Supplemental Financial Information Additional Cash Flow Elements and Supplemental Cash Flow Elements (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | |
Payments related to capital equipment purchase | $20 |
Capital equipment that were accrued but not yet paid | 6 |
Other Significant Noncash Transaction, Value of Consideration Given | $19 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
investment | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross Unrealized Losses | ($1,000,000) | |
Short-term marketable securities | 1,274,000,000 | 1,061,000,000 |
Long-term marketable securities | 2,533,000,000 | 2,383,000,000 |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | |
Number of investments in unrealized loss position | 173 | |
Fair market value of investments in an unrealized loss position for less than 12 months (less than) | 1,430,000,000 | |
Fair Value Measurements, Valuation Techniques | based primarily on quoted market prices for the same or similar issues | |
Long-term Debt, Fair Value | 1,640,000,000 | 1,610,000,000 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Cost | 1,941,000,000 | 2,460,000,000 |
Gross Unrealized Gains | 1,000,000 | 0 |
Gross Unrealized Losses | 0 | -1,000,000 |
Fair Value | 1,942,000,000 | 2,459,000,000 |
Cash and cash equivalents | 383,000,000 | 1,038,000,000 |
Short-term marketable securities | 178,000,000 | 192,000,000 |
Long-term marketable securities | 1,381,000,000 | 1,229,000,000 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Cost | 2,440,000,000 | 2,872,000,000 |
Gross Unrealized Gains | 3,000,000 | 1,000,000 |
Gross Unrealized Losses | -1,000,000 | -2,000,000 |
Fair Value | 2,442,000,000 | 2,871,000,000 |
Cash and cash equivalents | 194,000,000 | 848,000,000 |
Short-term marketable securities | 1,096,000,000 | 869,000,000 |
Long-term marketable securities | 1,152,000,000 | 1,154,000,000 |
Fair Value, Measurements, Recurring [Member] | Cash | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Cost | 1,100,000,000 | 659,000,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,100,000,000 | 659,000,000 |
Cash and cash equivalents | 1,100,000,000 | 659,000,000 |
Short-term marketable securities | 0 | 0 |
Long-term marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Bank Time Deposits [Member] | Level 1 [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Cost | 310,000,000 | 943,000,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 310,000,000 | 943,000,000 |
Cash and cash equivalents | 310,000,000 | 943,000,000 |
Short-term marketable securities | 0 | 0 |
Long-term marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Money market funds | Level 1 [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Cost | 68,000,000 | 83,000,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 68,000,000 | 83,000,000 |
Cash and cash equivalents | 68,000,000 | 83,000,000 |
Short-term marketable securities | 0 | 0 |
Long-term marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | U.S. treasury and agency obligations | Level 1 [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Cost | 1,563,000,000 | 1,434,000,000 |
Gross Unrealized Gains | 1,000,000 | 0 |
Gross Unrealized Losses | 0 | -1,000,000 |
Fair Value | 1,564,000,000 | 1,433,000,000 |
Cash and cash equivalents | 5,000,000 | 12,000,000 |
Short-term marketable securities | 178,000,000 | 192,000,000 |
Long-term marketable securities | 1,381,000,000 | 1,229,000,000 |
Fair Value, Measurements, Recurring [Member] | Commercial paper | Level 2 [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Cost | 219,000,000 | 800,000,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 219,000,000 | 800,000,000 |
Cash and cash equivalents | 194,000,000 | 798,000,000 |
Short-term marketable securities | 25,000,000 | 2,000,000 |
Long-term marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate bonds | Level 2 [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Cost | 2,088,000,000 | 1,931,000,000 |
Gross Unrealized Gains | 3,000,000 | 1,000,000 |
Gross Unrealized Losses | -1,000,000 | -2,000,000 |
Fair Value | 2,090,000,000 | 1,930,000,000 |
Cash and cash equivalents | 0 | 50,000,000 |
Short-term marketable securities | 1,061,000,000 | 859,000,000 |
Long-term marketable securities | 1,029,000,000 | 1,021,000,000 |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities and other | Level 2 [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Cost | 133,000,000 | 141,000,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 133,000,000 | 141,000,000 |
Cash and cash equivalents | 0 | 0 |
Short-term marketable securities | 10,000,000 | 8,000,000 |
Long-term marketable securities | 123,000,000 | 133,000,000 |
Fair Value, Measurements, Recurring [Member] | None [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Cost | 0 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Short-term marketable securities | 0 | 0 |
Long-term marketable securities | 0 | 0 |
UNITED STATES | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Investments and Cash | 2,530,000,000 | |
Foreign Countries [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Investments and Cash | 2,950,000,000 | |
Minimum [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Available for Sale Debt maturities date | 1 year | |
Maximum [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Available for Sale Debt maturities date | 3 years | |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Cost | 5,481,000,000 | 5,991,000,000 |
Gross Unrealized Gains | 4,000,000 | 1,000,000 |
Gross Unrealized Losses | -1,000,000 | -3,000,000 |
Fair Value | 5,484,000,000 | 5,989,000,000 |
Cash and cash equivalents | 1,677,000,000 | 2,545,000,000 |
Short-term marketable securities | 1,274,000,000 | 1,061,000,000 |
Long-term marketable securities | $2,533,000,000 | $2,383,000,000 |
Income_Taxes_Income_Taxes_Deta
Income Taxes Income Taxes (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $9 | $3 | ||
Effective tax rates | 4.10% | 1.80% | ||
Federal statutory income tax rate | 35.00% | 35.00% | ||
Impairment of Long-Lived Assets Held-for-use | 143 | 25 | ||
Gain on Disposition of Asset Group | 48 | |||
Deferred tax benefit from intangible asset impairment | 5 | |||
Tax benefit from the expiration of statutes of limitations | 4 | |||
Net deferred tax liabilities | ($3) | ($2) |
Debt_and_Credit_Facility_Detai
Debt and Credit Facility (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 1,600,000,000 | $1,600,000,000 |
Unaccreted discount | -7,000,000 | -7,000,000 |
Total | 1,593,000,000 | 1,593,000,000 |
2.700% fixed-rate notes, due November 2018 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | 30-Nov-11 | |
Debt Instrument, Maturity Date | 30-Nov-18 | |
Fixed interest rate on senior note | 2.70% | |
Debt Instrument, Interest Rate, Effective Percentage | 2.76% | |
Percent Discount | 99.61% | |
2.700% fixed-rate notes, due November 2018 | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 500,000,000 | 500,000,000 |
2.500% fixed-rate notes, due August 2022 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | 31-Aug-12 | |
Debt Instrument, Maturity Date | 31-Aug-22 | |
Fixed interest rate on senior note | 2.50% | |
Debt Instrument, Interest Rate, Effective Percentage | 2.59% | |
Percent Discount | 99.26% | |
2.500% fixed-rate notes, due August 2022 | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 500,000,000 | 500,000,000 |
3.500% fixed-rate notes, due August 2024 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | 29-Jul-14 | |
Debt Instrument, Maturity Date | 1-Aug-24 | |
Fixed interest rate on senior note | 3.50% | |
Debt Instrument, Interest Rate, Effective Percentage | 3.55% | |
Percent Discount | 99.62% | |
3.500% fixed-rate notes, due August 2024 | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 350,000,000 | 350,000,000 |
4.500% fixed-rate notes, due August 2034 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | 29-Jul-14 | |
Debt Instrument, Maturity Date | 1-Aug-34 | |
Fixed interest rate on senior note | 4.50% | |
Debt Instrument, Interest Rate, Effective Percentage | 4.55% | |
Percent Discount | 99.40% | |
4.500% fixed-rate notes, due August 2034 | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 250,000,000 | $250,000,000 |
Debt_and_Credit_Facility_Debt_
Debt and Credit Facility Debt and Credit Facility (Credit Facility) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Nov. 01, 2010 | |
Line of Credit Facility [Line Items] | ||
Unsecured revolving facility loans aggregate available amount to be drawn | $500,000,000 | |
Amount available to increase commitment under credit facility | 100,000,000 | |
Leverage ratio | 3.25 | |
Amount outstanding on line of credit facility | $0 | |
Line of Credit Facility, Covenant Terms | The credit facility contains customary representations, warranties and covenants. The financial covenant in the credit facility requires us to maintain a consolidated leverage ratio of no more than 3.25:1.00. | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.06% | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | |
Base Rate [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.00% | |
Base Rate [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.25% | |
Eurodollar [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.63% | |
Eurodollar [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.25% |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Share data in Millions, except Per Share data, unless otherwise specified | Nov. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2015 |
Dividend declared per share (usd per share) | $0.14 | $0.12 | ||
Increase In Quarterly Cash Dividend | 17.00% | |||
Dividends paid | $84,000,000 | $70,000,000 | ||
Stock Repurchase Program, Authorized Amount | $1,000,000,000 | |||
Stock Repurchased and Retired During Period, Shares | 8 | |||
Weighted Average Repurchase Price | $44.28 | |||
Scenario, Forecast [Member] | ||||
Dividend declared per share (usd per share) | $0.56 |
Employee_Benefit_Plans_RSU_Act
Employee Benefit Plans (RSU Activity) (Details) (Restricted Stock Unit [Member], USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Restricted Stock Unit [Member] | |
Restricted stock unit activity, Number of shares | |
Balance at December 31, 2014, Number of Shares | 20 |
Restricted stock units granted, Number of Shares | 7 |
Restricted stock units vested, Number of Shares | -3 |
Balance at March 31, 2015, Number of Shares | 24 |
Restricted stock unit activity, Weighted average grant-date fair value per share | |
Balance at December 31, 2014, Weighted Average Grant-Date Fair Value per Share (usd per share) | $32.38 |
Restricted stock units granted, Weighted Average Grant Date Fair Value per share (usd per share) | $42.52 |
Restricted stock units vested, Weighted Average Grant-Date Fair Value per Share (usd per share) | $33.61 |
Balance at March 31, 2015 Weighted Average Grant-Date Fair Value per Share (usd per share) | $35.09 |
Employee_Benefit_Plans_Option_
Employee Benefit Plans (Option Activity) (Details) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Activity under stock option incentive plans | |
Balance at December 31, 2014, Number of Shares | 20 |
Options exercised, Number of Shares | -5 |
Balance at March 31, 2015, Number of Shares | 15 |
Stock option activity, Weighted average exercise price per share | |
Balance at December 31, 2014, Weighted Average Exercise Price per Share (usd per share) | $33.84 |
Options exercised, Weighted Average Exercise Price per Share (usd per share) | $31.06 |
Balance at March 31, 2015 Weighted Average Exercise Price per Share (usd per share) | $34.71 |
Employee_Benefit_Plans_Stock_B
Employee Benefit Plans (Stock Based Compensation) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Unearned stock-based compensation estimated to be expensed related to unvested share-based payment awards | ||
2015 | $260 | |
2016 | 253 | |
2017 | 164 | |
2018 | 79 | |
2019 | 11 | |
Total | 767 | |
Cost of Goods, Product Line [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated Share-based Compensation Expense | 5 | 6 |
Research and Development Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated Share-based Compensation Expense | 60 | 84 |
Selling, General and Administrative Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated Share-based Compensation Expense | $25 | $30 |
Goodwill_and_Other_Purchased_I2
Goodwill and Other Purchased Intangible Assets (Goodwill) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||
Goodwill | $5,539 | |
Accumulated impairment losses | -1,829 | |
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2014 | 3,710 | |
Effects of foreign currency translation | -15 | |
Goodwill at March 31, 2015 | 3,695 | |
Broadband and Connectivity | ||
Goodwill [Line Items] | ||
Goodwill | 1,802 | |
Accumulated impairment losses | -543 | |
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2014 | 1,259 | |
Effects of foreign currency translation | 0 | |
Goodwill at March 31, 2015 | 1,259 | |
Infrastructure and Networking [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 3,768 | |
Accumulated impairment losses | -1,286 | |
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2014 | 2,482 | |
Effects of foreign currency translation | 0 | |
Goodwill at March 31, 2015 | 2,482 | |
Foreign Currency [Member] | ||
Goodwill [Line Items] | ||
Goodwill | -31 | |
Accumulated impairment losses | 0 | |
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2014 | -31 | |
Effects of foreign currency translation | -15 | |
Goodwill at March 31, 2015 | ($46) |
Goodwill_and_Other_Purchased_I3
Goodwill and Other Purchased Intangible Assets (Intangible Assets) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $1,137 | $1,478 |
Accumulated Amortization | -647 | -814 |
Net | 490 | 664 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 919 | 1,250 |
Accumulated Amortization | -452 | -619 |
Net | 467 | 631 |
In-process research and development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 10 | 19 |
Accumulated Amortization | 0 | 0 |
Net | 10 | 19 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 176 | 177 |
Accumulated Amortization | -164 | -164 |
Net | 12 | 13 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 32 | 32 |
Accumulated Amortization | -31 | -31 |
Net | $1 | $1 |
Goodwill_and_Other_Purchased_I4
Goodwill and Other Purchased Intangible Assets (Amortization of Intangible Assets) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of purchased intangible assets | $37 | $59 |
Total | 490 | |
All Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of purchased intangible assets | 37 | 59 |
2015 | 97 | |
2016 | 96 | |
2017 | 76 | |
2018 | 61 | |
2019 | 47 | |
Thereafter | 113 | |
Cost of product revenue | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of purchased intangible assets | 36 | 50 |
2015 | 94 | |
2016 | 93 | |
2017 | 74 | |
2018 | 59 | |
2019 | 45 | |
Thereafter | 112 | |
Total | 477 | |
Other operating expenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of purchased intangible assets | 1 | 9 |
2015 | 3 | |
2016 | 3 | |
2017 | 2 | |
2018 | 2 | |
2019 | 2 | |
Thereafter | 1 | |
Total | $13 |
Goodwill_and_Other_Purchased_I5
Goodwill and Other Purchased Intangible Assets (Impairments) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value measurements, valuation processes, description | multiple period excess earnings | |
Intangible Asset [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Tax rate | 17.00% | |
Mobile and Wireless [Member] | Developed technology | Renesas Business Acquisition [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Impairment of Intangible Assets (Excluding Goodwill) | $5 | |
Broadband and Connectivity [Member] | Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Impairment of Intangible Assets (Excluding Goodwill) | 25 | |
Broadband and Connectivity [Member] | Developed technology | SC Square [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Impairment of Intangible Assets (Excluding Goodwill) | 19 | |
Knowledge Based Processors [Member] | Infrastructure and Networking [Member] | Developed technology | Net Logic [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Impairment of Intangible Assets (Excluding Goodwill) | 135 | |
Minimum [Member] | Intangible Asset [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value inputs, discount rate | 18.00% | |
Maximum [Member] | Intangible Asset [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value inputs, discount rate | 22.00% |
Exit_of_Cellular_Baseband_Busi2
Exit of Cellular Baseband Business (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 |
facilities | employees | ||
facilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected facility closures | 3 | 3 | |
Restructuring Reserve [Roll Forward] | |||
Charged to expense | $7 | $5 | |
2014 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Number of Positions Eliminated | 2,300 | ||
Facilities closed in connection with restructuring | 15 | ||
Restructuring Reserve [Roll Forward] | |||
Balance at December 31, 2014 | 33 | ||
Cash payments | -21 | ||
Balance at March 31, 2015 | 19 | 19 | |
2014 Plan | Operating Expense [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Charged to expense | 7 | ||
All Other | |||
Restructuring Reserve [Roll Forward] | |||
Charged to expense | 7 | 5 | |
All Other | 2014 Plan | Operating Expense [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Charged to expense | 159 | ||
All Other | Employee Severance [Member] | 2014 Plan | Operating Expense [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Charged to expense | 131 | ||
All Other | Contract Termination [Member] | 2014 Plan | Operating Expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost Remaining | 10 | 10 | |
Restructuring Reserve [Roll Forward] | |||
Charged to expense | $28 |
Reportable_Segments_Significan2
Reportable Segments, Significant Customer and Geographical Information (Segments) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Details of reportable segments | ||
Net revenue | $2,058 | $1,984 |
Income from operations | 223 | 170 |
Amortization of purchased intangible assets | 37 | 59 |
Impairments of long-lived assets | 143 | 25 |
Settlement costs | 0 | 2 |
Restructuring costs, net | 7 | 5 |
Other gains, net | -4 | -52 |
Operating Segments [Member] | ||
Details of reportable segments | ||
Net revenue | 2,039 | 1,840 |
Income from operations | 408 | 333 |
Operating Segments [Member] | Broadband and Connectivity | ||
Details of reportable segments | ||
Net revenue | 1,408 | 1,246 |
Income from operations | 241 | 184 |
Operating Segments [Member] | Infrastructure and Networking | ||
Details of reportable segments | ||
Net revenue | 631 | 594 |
Income from operations | 167 | 149 |
Cellular Baseband [Member] | ||
Details of reportable segments | ||
Net revenue | 19 | 144 |
Income from operations | -7 | -139 |
All Other | ||
Details of reportable segments | ||
Net revenue | 0 | 0 |
Income from operations | -178 | -24 |
Amortization of purchased intangible assets | 37 | 59 |
Inventory charges related to the exit of the cellular baseband business | -2 | 0 |
Impairments of long-lived assets | 143 | 25 |
Settlement costs | 0 | 2 |
Restructuring costs, net | 7 | 5 |
Other gains, net | -4 | -52 |
Miscellaneous corporate allocation variances | -3 | -15 |
Total other operating costs and expenses | $178 | $24 |
Reportable_Segments_Significan3
Reportable Segments, Significant Customer and Geographical Information (Concentrations) (Details) (Sales [Member]) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenue, Major Customer [Line Items] | ||
Percentage of net revenue | 100.00% | 100.00% |
Hong Kong | ||
Revenue, Major Customer [Line Items] | ||
Percentage of net revenue | 32.50% | 27.40% |
China (exclusive of Hong Kong) | ||
Revenue, Major Customer [Line Items] | ||
Percentage of net revenue | 24.10% | 22.60% |
Singapore, Taiwan, Thailand and Japan | ||
Revenue, Major Customer [Line Items] | ||
Percentage of net revenue | 27.00% | 34.90% |
United States | ||
Revenue, Major Customer [Line Items] | ||
Percentage of net revenue | 4.60% | 4.30% |
Europe | ||
Revenue, Major Customer [Line Items] | ||
Percentage of net revenue | 1.90% | 2.10% |
Other | ||
Revenue, Major Customer [Line Items] | ||
Percentage of net revenue | 9.90% | 8.70% |
Two largest customers | ||
Revenue, Major Customer [Line Items] | ||
Percentage of net revenue | 26.90% | 30.20% |
Five largest customers as a group | ||
Revenue, Major Customer [Line Items] | ||
Percentage of net revenue | 42.10% | 45.50% |
Reportable_Segments_Significan4
Reportable Segments, Significant Customer and Geographical Information (Other Information) (Details) | 3 Months Ended |
Mar. 31, 2015 | |
product | |
product_line | |
Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Net revenue from other sources (less than) | 1.00% |
Number of products | 450 |
Number of product lines | 60 |