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AVGOBroadcom

Technology · Semiconductors · Nasdaq
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The 10-K against last year's

173 changes: 24 added, 16 removed, 131 reworded, 2 quiet changes

10-K Dec 18, 2025 vs Dec 20, 2024
Risk FactorsRedline ↓
20.2%
of the text changed · 13,178 words now
22.2%
of the text changed · 7,100 words now
Legal ProceedingsRedline ↓
5.8%
of the text changed · 980 words now
Accounting PoliciesRedline ↓
11.0%
of the text changed · 5,096 words now

10-K 0001730168-25-000121 (2025-12-18) vs 10-K 0001730168-24-000139 (2024-12-20)

The redline

The paragraph that changed most in each section

Marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

Risk Factors 233 words changed in this paragraph; it is 50% similar to last year's version.
A general slowdown in weakening of the global economy globally or in a particular region or industry, uncertainty and volatility in financial markets, efforts of governments to stimulate or stabilize the economy or to achieve specific policy objectives such as onshoring of semiconductor manufacturing and other unfavorable changes in economic conditions, such as inflation, higher interest rates, tightening of the credit markets, recession or slowing growth, or as well as an increase in trade tensions and related tariffs with U.S. trading partners partners, could negatively impact our business, financial condition condition, cash flows and liquidity. Adverse global economic conditions have from time to time caused or exacerbated significant slowdowns in the industries and markets in which we operate, which have adversely affected our business and results of operations. Macroeconomic weakness and uncertainty may also make it more difficult for us to accurately forecast operating results, and market volatility stemming from current macroeconomic events may make it more difficult materially impact our cash flow and our ability to raise or refinance debt. debt at favorable rates. An escalation of trade tensions between the U.S. and China has resulted in trade restrictions, increased protectionism and increased tariffs that harm our ability to participate in Chinese markets or compete effectively with Chinese companies. Sustained uncertainty about, or worsening of, current global economic conditions and further escalation of trade tensions between the U.S. and its trading partners, especially China, and the decoupling of the U.S. and China economies, could partners may continue to result in a global economic slowdown trade restrictions and long-term changes increased protectionism on both ends that harm our ability to global trade. Such events may also (i) cause our customers and consumers to reduce, delay participate in some markets or forgo technology spending, (ii) result in customers sourcing products from other suppliers not subject to such restrictions or tariffs, (iii) lead to the insolvency or consolidation of key suppliers and customers, and (iv) intensify pricing pressures. Any or all of these factors could negatively affect demand for our products and our business, financial condition and results of operations. compete effectively.

Source: Item 1A, 10-K 0001730168-25-000121 vs Item 1A, 10-K 0001730168-24-000139

Accounting Policies 140 words changed in this paragraph; it is 56% similar to last year's version.
We recognize software products revenue for the upfront license portion of software arrangements sold. Our software arrangements primarily consist of fees, which may be paid either at contract inception or in installments over the contract term, that provide customers with a right to use the software, access general support and maintenance, and utilize our professional services. Our software licenses have standalone functionality from which customers derive benefit, and the customer obtains control of the software when it is delivered or made available for download. We believe that for the majority of software arrangements, customers derive significant benefit from the ongoing support we provide. Certain of our subscriptions and services software arrangements permit our customers to unilaterally terminate or cancel these arrangements at any time at the customer’s convenience, referred to as termination for convenience provisions, without substantive termination penalty and receive a pro-rata refund of any prepaid fees. Accordingly, For software arrangements without termination for convenience provisions, we recognize revenue for the license portion of the agreements upfront upon transfer of control to the customer, referred to as upfront license revenue, within products revenue. For software arrangements with termination for convenience provisions, we account for these arrangements with these termination for convenience provisions as a series of daily contracts, resulting in ratable revenue recognition of software revenue over the contractual period. period, and include them within subscriptions and services revenue.

Source: Item 8, Note 2 – Summary of Significant Accounting Policies, 10-K 0001730168-25-000121 vs Item 8, Note 2 – Summary of Significant Accounting Policies, 10-K 0001730168-24-000139

MD&A 137 words changed in this paragraph; it is 67% similar to last year's version.
We are a global technology leader that designs, develops and supplies a broad range of semiconductor and semiconductor-based solutions and infrastructure software solutions. We develop Our semiconductor devices with and semiconductor-based solutions include a focus on broad portfolio of complex digital and mixed signal devices based on silicon wafers with complementary metal oxide semiconductor based devices and analog transistors, III-V based products. We offer thousands of products that devices, network interface cards and other modules, switches, subsystems and, in some cases, racks. Our solutions are used in a wide array of environments, end products and applications, such as enterprise and data center networking, including artificial intelligence (“AI”) data centers, servers and networking and connectivity, connectivity equipment, as well as storage systems, home connectivity, connectivity devices, set-top boxes, broadband access, telecommunication equipment, smartphones wireless devices and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Our infrastructure software solutions help enterprises simplify their information technology environments so they can increase business velocity and flexibility, and enable environments. Our customers to plan, develop, deliver, automate, manage and secure applications across mainframe, distributed, edge, mobile, and private and hybrid cloud platforms. Our portfolio of rely on our infrastructure and security software is designed solutions to modernize, optimize, and secure the most complex private and cloud, hybrid cloud environments, enabling and edge environments. This enables scalability, agility, automation, insights, resiliency and security security, making it easy for customers to run their mission-critical workloads. We also offer mission-critical fibre channel storage area networking (“FC SAN”) products and related software in the form of modules, switches and subsystems incorporating multiple semiconductor products.

Source: Item 7, 10-K 0001730168-25-000121 vs Item 7, 10-K 0001730168-24-000139

Legal Proceedings 51 words changed in this paragraph; it is 86% similar to last year's version.
From time to time, we are involved in litigation that we believe is of the type common to companies engaged in our lines of business, including commercial disputes, employment issues, tax disputes and disputes involving claims by third parties that our activities infringe their patent, copyright, trademark or other IP rights, as well as regulatory investigations or inquiries. Legal proceedings and regulatory investigations or inquiries are often complex, may require the expenditure of significant funds and other resources, and the outcomes of such proceedings are inherently uncertain, with material adverse outcomes possible. IP property claims generally involve the demand by a third-party that we cease the manufacture, use or sale of the allegedly infringing products, processes or technologies and/or pay substantial damages or royalties for past, present and future use of the allegedly infringing IP. Claims that our products or processes infringe or misappropriate any third-party IP rights (including claims arising through our contractual indemnification of our customers) often involve highly complex, technical issues, the outcome of which is inherently uncertain. Moreover, from time to time, we pursue litigation to assert our IP rights. Regardless of the merit or resolution of any such litigation, complex IP litigation is generally costly and diverts the efforts and attention of our management and technical personnel.

Source: Item 3, via Note 14 – Commitments and Contingencies, 10-K 0001730168-25-000121 vs Item 3, via Note 14 – Commitments and Contingencies, 10-K 0001730168-24-000139

Every change, by type

Sentences and paragraphs added, removed or reworded

Sentences and paragraphs of AVGO's Risk Factors and MD&A, 10-K 2025-12-18 against 10-K 2024-12-20. Each links to the text at sec.gov.

AddedRisk Factors
While U.S. tariffs and counter-tariffs, including semiconductor-related tariffs, have not had a material impact on our financial condition or results of operations, tariffs and other macroeconomic factors could materially increase costs and disrupt our supply chain. We continuously manage product availability and costs in our supply chain to mitigate the direct and indirect impact of tariffs and other macroeconomic impacts. The ultimate impact remains uncertain and will depend on

Read it in 10-K 2025-12-18 at sec.gov ↗

AddedRisk Factors
The semiconductor industry is highly cyclical and is subject to rapid price erosion, wide fluctuations in product supply and demand, constant and rapid technological change, evolving technical standards and evolving product applications. The semiconductor industry is undergoing profound change due to the adoption and proliferation of AI and has experienced a significant upturn, which may not be sustainable. The growth of AI is creating pressure on the semiconductor industry to timely design, manufacture and deliver semiconductor products and solutions to meet customer demand for computing power and AI infrastructure. Some of these AI customers may have constrained resources or capital and may be unable to pay for their required AI infrastructure and/or seek alternative financings or novel or deferred payment models from their vendors and suppliers. If our AI customers substantially reduce their expansion plans, cancel, reduce or delay their orders, are unable to generate the profit required to offset their spending or are otherwise unable to meet their obligations and we cannot offset the downturn in their business, it could have a material adverse effect on our business, operating results, financial condition and stock price.

Read it in 10-K 2025-12-18 at sec.gov ↗

AddedRisk Factors
The timing of design wins is unpredictable and implementing production for a major design win or multiple design wins at the same time, such as our design wins for our custom AI accelerators or XPUs, network switches and other AI-related products, may strain our resources and those of our CMs. Some of our customers who have selected us may also have constrained resources or capital but require immediate availability of our custom XPUs. In such event, we may dedicate significant additional resources or execute on new business strategies or models such as the sale or leasing of AI racks or systems based on our XPUs to our customers with alternative financings or novel or deferred payment models, which could result in additional costs, expenses, credit or customer default risks, reduced gross margin and cash flows.

Read it in 10-K 2025-12-18 at sec.gov ↗

AddedRisk Factors
Our business depends on a wide variety of complex IT systems and services, including cloud-based and other critical corporate services relating to, among other things, product research and development, financial reporting, product orders

Read it in 10-K 2025-12-18 at sec.gov ↗

Show the other 14
AddedRisk Factors
•the timing and extent of delivery of and payment for our semiconductor and semiconductor-based solutions, including AI racks or systems based on our XPUs;

Read it in 10-K 2025-12-18 at sec.gov ↗

AddedMD&A
Many countries have enacted or are in the process of enacting a global minimum tax, some of which became effective for us starting in our fiscal year 2025 and, more importantly, the enactment in Singapore will become effective in our fiscal year ending November 1, 2026 (“fiscal year 2026”). While the tax did not have a material impact on our fiscal year 2025 consolidated results of operations, we expect a material impact from the enactment of these laws on our consolidated results of operations and cash flows for our fiscal year 2026.

Read it in 10-K 2025-12-18 at sec.gov ↗

AddedMD&A
In fiscal year 2025, we included upfront license revenue of $7,800 million within products revenue. To conform to the current year presentation, we reclassified $4,601 million of upfront license revenue from subscriptions and services revenue to products revenue for fiscal year 2024. We also reclassified the related costs for the upfront license revenue, which were immaterial, for the periods presented. See Note 3. “Revenue from Contracts with Customers” in Part II, Item 8. of this Annual Report on Form 10-K for additional information.

Read it in 10-K 2025-12-18 at sec.gov ↗

AddedMD&A
revenue is ultimately dependent on sales of either our product or our customers’ product incorporating our product, to end customers located in China (including Hong Kong).

Read it in 10-K 2025-12-18 at sec.gov ↗

AddedMD&A
Higher operating income from our infrastructure software segment was primarily due to strong demand for our VCF product, including license revenue recognized on contracts where customers do not have the right to terminate and the transition to a subscription license model. In addition, labor costs were lower following our integration of the VMware business.

Read it in 10-K 2025-12-18 at sec.gov ↗

AddedMD&A
Provision for (benefit from) income taxes. On July 4, 2025, the United States enacted the One Big Beautiful Bill Act, which allows for the immediate expensing of domestic research and development costs and certain capital expenditures, and changes the United States taxation of profits derived from foreign operations. As a result, it is no longer more-likely-than-not that we are able to utilize our federal corporate alternative minimum tax (“CAMT”) credits, and we established a $1,321 million valuation allowance against our CAMT credit carryforwards and CAMT credits generated in the current fiscal year. Our policy is to not consider the impact of future years’ CAMT in our valuation allowance assessment for regular deferred tax assets. Most of the provisions are effective beginning in our fiscal years ending November 1, 2026 or October 31, 2027, with the exception of immediate expensing of qualifying property being effective in fiscal year 2025.

Read it in 10-K 2025-12-18 at sec.gov ↗

AddedMD&A
The benefit from income taxes was $397 million for fiscal year 2025, and was primarily due to the recognition of uncertain tax benefits from expiration of statutes of limitations and audit settlements, and excess tax benefits from stock-based awards, partially offset by income from operations and a valuation allowance against our CAMT credits.

Read it in 10-K 2025-12-18 at sec.gov ↗

AddedMD&A
Working capital increased to $13,059 million at November 2, 2025 from $2,898 million at November 3, 2024. The increase was primarily attributable to the following:

Read it in 10-K 2025-12-18 at sec.gov ↗

AddedMD&A
•Trade accounts receivable, net increased to $7,145 million at November 2, 2025 from $4,416 million at November 3, 2024 primarily due to higher billings.

Read it in 10-K 2025-12-18 at sec.gov ↗

AddedMD&A
•Other current assets increased to $5,980 million at November 2, 2025 from $4,071 million at November 3, 2024 primarily from higher software contract assets, offset in part by lower prepaid taxes and the sale of assets held for sale.

Read it in 10-K 2025-12-18 at sec.gov ↗

AddedMD&A
Repurchases under this stock repurchase program may be effected through a variety of methods, including open market or privately negotiated purchases. The timing and amount of shares repurchased will depend on the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors. We are not obligated to repurchase any specific amount of shares of common stock, and the stock repurchase program may be suspended or terminated at any time.

Read it in 10-K 2025-12-18 at sec.gov ↗

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