Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

2014

2014

2013

2014

2013

Cost of revenue

$

5

$

6

$

6

$

22

$

25

Research and development

67

73

83

304

363

Selling, general and administrative

25

28

28

111

130

BROADCOM CORPORATION

Unaudited Condensed Consolidated Statements of Cash Flows

(In millions)

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

2014

2014

2013

2014

2013

Operating activities

Net income

$

390

$

98

$

168

$

652

$

424

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

37

42

51

178

173

Stock-based compensation expense

97

107

117

437

518

Acquisition-related items:

Amortization of purchased intangible assets

45

54

56

214

228

Impairments of long-lived assets

14

200

—

404

511

Loss (gain) on sale of assets and other

3

3

—

(41)

(2)

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable, net

134

(142)

57

(9)

(55)

Inventory

93

(10)

16

(7)

2

Prepaid expenses and other assets

7

11

(28)

14

(25)

Accounts payable

(176)

—

44

(79)

24

Deferred revenue

(11)

(7)

(4)

87

(15)

Other accrued and long-term liabilities

—

105

(86)

75

2

Net cash provided by operating activities

633

461

391

1,925

1,785

Investing activities

Net purchases of property and equipment

(48)

(56)

(56)

(262)

(228)

Net cash paid for acquired companies

(5)

(3)

(142)

(14)

(142)

Proceeds from sale of certain assets and other

2

—

(15)

92

(15)

Purchases of marketable securities

(2,003)

(955)

(468)

(3,871)

(2,682)

Proceeds from sales and maturities of marketable securities

1,724

447

575

3,141

2,071

Net cash used in investing activities

(330)

(567)

(106)

(914)

(996)

Financing activities

Issuance of long-term debt, net

—

592

—

592

—

Payments of long-term debt

—

(400)

(300)

(400)

(300)

Repurchases of Class A common stock

(104)

(227)

(2)

(522)

(597)

Dividends paid

(72)

(71)

(64)

(283)

(254)

Proceeds from issuance of common stock

198

136

240

617

532

Minimum tax withholding paid on behalf of employees for restricted stock units

(34)

(34)

(26)

(127)

(130)

Net cash used in financing activities

(12)

(4)

(152)

(123)

(749)

Increase (decrease) in cash and cash equivalents

291

(110)

133

888

40

Cash and cash equivalents at beginning of period

2,254

2,364

1,524

1,657

1,617

Cash and cash equivalents at end of period

$

2,545

$

2,254

$

1,657

$

2,545

$

1,657