Net Income Per Share

9 Months Ended

Aug. 04, 2019

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

Basic net income per share is computed by dividing net income attributable to common stock by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income attributable to common stock by the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period.

Diluted shares outstanding include the dilutive effect of in-the-money stock options, unvested restricted stock units (“RSUs”), and employee stock purchase plan rights under the Broadcom Inc. Employee Stock Purchase Plan, as amended (“ESPP”), collectively referred to as “equity awards”.

The dilutive effect of equity awards is calculated based on the average stock price for each fiscal period, using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and purchasing shares under the ESPP and the amount of compensation cost for future service that we have not yet recognized are collectively assumed to be used to repurchase shares.

For the three fiscal quarters ended August 5, 2018, diluted net income per share excluded the potentially dilutive effect of the exchange of LP Units for 12 million shares of common stock prior to the effective time of Mandatory Exchange as their effect was antidilutive.

The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented:

	Fiscal Quarter Ended					Three Fiscal Quarters Ended
	August 4, 2019		August 5, 2018			August 4, 2019			August 5, 2018
	(In millions, except per share data)
Numerator:
Income from continuing operations	$	715	$	1,197		$	1,889		$	11,514
Less: Income from continuing operations attributable to noncontrolling interest	—		—			—			352
Income from continuing operations attributable to common stock	715		1,197			1,889			11,162
Loss from discontinued operations, net of income taxes	—		(1		)	(12		)	(19		)
Less: Loss from discontinued operations, net of income taxes, attributable to noncontrolling interest	—		—			—			(1		)
Loss from discontinued operations, net of income taxes, attributable to common stock	—		(1		)	(12		)	(18		)
Net income attributable to common stock	$	715	$	1,196		$	1,877		$	11,144

Denominator:
Weighted-average shares outstanding - basic	398		430		399			420
Dilutive effect of equity awards	20		11		21			13
Weighted-average shares outstanding - diluted	418		441		420			433
Basic income per share:
Income per share from continuing operations	$	1.80	$	2.78	$	4.73		$	26.58
Loss per share from discontinued operations	—		—		(0.03		)	(0.05		)
Net income per share	$	1.80	$	2.78	$	4.70		$	26.53
Diluted income per share:
Income per share from continuing operations	$	1.71	$	2.71	$	4.50		$	25.78
Loss per share from discontinued operations	—		—		(0.03		)	(0.04		)
Net income per share	$	1.71	$	2.71	$	4.47		$	25.74