Key items

(amounts in thousands) 2006 2007 2008 2009

Sales 3,667,818 3,776,395 4,658,125 4,490,323

net income 379,041 213,342 214,794 65,261
Cost of goods sold 1,795,565 1,832,178 2,213,015 2,210,559

cash 2,158,110 2,186,572 1,190,645 1,397,093

receivables 382,823 369,004 372,311 508,627
inventory 202,794 231,313 366,106 362,428
current assets 3,351,788 3,054,280 2,751,213 2,914,332
total assets 4,876,766 4,838,193 4,393,265 5,127,242
current liabilities 678,701 757,609 717,103 1,148,350
long term debt 6,399 44,436 69,095 87,046
total liabilities 685,100 802,045 786,198 1,235,396
total equity 4,191,666 4,036,148 3,607,067 3,891,846

Liquidity ratios 2006 2007 2008 2009

Current ratio 4.94 4.03 3.84 2.54
Quick ratio 4.64 3.73 3.33 2.22
INDUSTRY

Leverage ratios 2006 2007 2008 2009

Debt ratio 14.05% 16.58% 17.90% 24.09%
Debt to equity ratio 16.34% 19.87% 21.80% 31.74%
INDUSTRY

Activity ratios 2006 2007 2008 2009

Inventory turnover 18.09 16.33 12.72 12.39
Average collection period 38.10 35.67 29.17 41.34
Asset turnover 0.75 0.78 1.06 0.88
INDUSTRY

Profitability ratios 2006 2007 2008 2009

Profit margin ratio 10.33% 5.65% 4.61% 1.45%
ROA 7.77% 4.41% 4.89% 1.27%
ROE 9.04% 5.29% 5.95% 1.68%
INDUSTRY

Profitability ratios 2006 2007 2008 2009

EPS 0.64 0.37 0.41 0.13
PE ratio* 50.15 70.78 41.42 247.21
Gross Margin 51.05% 51.48% 52.49% 50.77%
INDUSTRY

*Use close price as of December 31: source: Yahoo Finance

 Kipley Pereles
Ratios for Broadcom

Industry (2009)
Texas Instr. Qualcomm
10,427,000 10,568,000 Sales
1,470,000 2,091,000 net income
5,428,000 3,242,000 cost of goods sold

1,182,000 3,660,000 cash

1,277,000 616,000 receivables
1,202,000 350,000 inventory
6,114,000 13,574,000 current assets
12,119,000 28,903,000 total assets
1,587,000 2,948,000 current liabilities
810,000 3,775,000 long term debt
2,397,000 7,550,000 total liabilities
9,722,000 21,353,000 total equity

Industry comparison Liquidity ratios

3.66 lower Times Current ratio
3.27 lower Times Quick ratio

Industry comparison Leverage ratios

23.33% higher percentage Debt ratio
30.59% higher percentage Debt to equity ratio

Industry comparison Activity ratios

17.09 lower Times Inventory turns
35.77 higher Days Average collection period
0.70 higher Times Asset turnover

Industry comparison Profitability ratios

11.78% 3.90 lower percentage Profit margin ratio
3.84

3.80
 3.90
6.88% lower percentage ROA
3.84
8.86% lower percentage ROE
3.80

3.70

Industry comparison Profitability ratios

3.60
0.84 lower Dollars EPS
111.08 higher Times PE ratio*
56.01% lower Percentage Gross Margin
3.50

3.40

3.
3.0

3.20

3.10

.03
208
 PROJECTED
2010 2011 2012

4,665,129 4,850,359 5,046,789

127,379 190,352 266,159
2,203,846 2,274,960 2,349,701

1,501,174 1,738,445 2,034,485

528,534 549,384 571,631
376,609 388,815 401,727
3,052,501 3,322,827 3,654,027
5,289,411 5,556,137 5,891,177
1,164,806 1,179,577 1,195,109
30,000 30,000 30,000
1,281,852 1,296,623 1,312,155
4,007,559 4,185,079 4,430,152

2010 2011 2012

2.62 2.82 3.06
2.30 2.49 2.72

2010 2011 2012

24.23% 23.34% 22.27%
31.99% 30.98% 29.62%

2010 2011 2012

12.39 12.47 12.56
41.35 41.34 41.34
0.88 0.87 0.86

2010 2011 2012

2.73% 3.92% 5.27%
 2.41% 3.43% 4.52%
3.18% 4.55% 6.01%

0.22 0.33 0.51

149.23 79.33 33.42
52.76% 53.10% 53.44%
 Broadcom vs. Industry Liquidity Ratios: Current Ratio Broadcom vs. Industry Liquidity

4.63973679131164
4.93853405255039
4.03147269897797 3.72615293640915
3.83656601631844 3.32603126747483
3.66495752964552
2.62060906901532 3.0574836514339
2.81696537978247 2.
3.267712170750
2.2972855041
2.53784299211913 2.22223538119911

2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010
Broadcom Current Ratio Industry Broadcom Quick ratio Industr

Broadcom vs. Industry Leverage Ratios: Debt Ratio Broadcom vs. Industry Leverage R
Ratio

0.242343036183902
0.240947472344781 0.233367695660973 0.3198585262010
0.31743188193983 0.309
0.222732245620962
0.140482442667948 0.178955287240811
0.165773667978933 0.233318209130253 0.30585546068678
0.217960464831953
0.198715458402417
0.163443365955207

2009
2008 2012
2007 2011
2006 2010 2006 2007 2008 2009 2010
Broadcom Debt Ratio Industry Broadcom Debt-to-Equity Ratio Indus
 0.163443365955207

2009
2008 2012
2007 2011
2006 2010 2006 2007 2008 2009 2010
Broadcom Debt Ratio Industry Broadcom Debt-to-Equity Ratio Indus

Broadcom vs. Industry Activity Ratios: Inventory Broadcom vs. Industry Activity R
Turnover Ratio Period Ratio

18.0864226752271 38.0963272986828 41.3442095368195

41.3525089560
41
16.3259090496427 35.6653528034011
12.7234325577838
12.3895587537387 17.0861844288867
12.3871865309616 12.5627479053258
12.4747354251951 29.1734367368845 35.7

2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010
Broadcom Inventory Turnover Ratio Industry Broadcom Avg Collection Period Ratio I

Broadcom vs. Industry Activity Ratios: Asset Turnover Broadcom vs. Industry Profi
Ratio Margin Ratio

1.06028773588664
0.881975084525805
0.875777464765658 0.872973179527481
0.856669103227264 0.103342368678053
0.78053831254768
0.752100469860559
0.700599590016467
0.056493560657717
0.046111686569167
0.02730449
0.01453369835533

2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 201
Broadcom Asset Turnover Ratio Industry Broadcom Profit Margin Ratio
 0.700599590016467
0.056493560657717
0.046111686569167
0.02730449
0.01453369835533

2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 201
Broadcom Asset Turnover Ratio Industry Broadcom Profit Margin Ratio

Broadcom vs. Industry Profitability Ratios: Return on Broadcom vs. Industry Profitabili
Assets Ratio Equity Ratio

0.077723844039267 0.090427290724022
0.048891655750336
0.044095388505585 0.045179259890966 0.059548103764083
0.052857823845905 0.088632
0.068790284498954
0.034259771425046 0.045483
0.031784682794087
0.024081885901079
0.0127282854993 0.01676864911921

2009 2009
2008 2012 2008 2012
2007 2011 2007 2011
2006 2010 2006 2010
Broadcom Return on Assets Ratio Industry Broadcom Return on Equity Ratio Indust

Broadcom vs. Industry Profitability Ratios: Earnings per Broadcom vs. Industry Profitabi
Share Ratio Earnings Ratio

0.644279114356521 247.206419607422
0.839100839762409
0.507735479046485 149.22832319299
0.409749565058145
0.369306988966248 0.329510007235815
0.216513858151544
0.127302519287226 70.7812220753532
50.1490724750093 41.4155412162351 79.329
111.07

2009 2009
2008 2012 2008 2012
2007 2011 2007 2011
2006 2010 2006 2010
Broadcom Earnings per Share Ratio Industry Broadcom Price-to-Equity Ratio Indu
 2009 2009
2008 2012 2008 2012
2007 2011 2007 2011
2006 2010 2006 2010
Broadcom Earnings per Share Ratio Industry Broadcom Price-to-Equity Ratio Indu

Broadcom vs. Industry Profitability Ratios: Gross

Margin Ratio

0.534416636003605
0.560119750832681
0.530970800305709
0.524912920971421 0.527591627155433
0.514834120901018
0.510454171935467 0.507706015803318

2009
2008 2012
2007 2011
2006 2010
Broadcom Gross Margin Ratio Industry
 Industry Liquidity Ratios: Quick Ratio

747483
2.72134152866926
2.48734332901043
3.2677121707504
2.29728550418428
2.22223538119911

2009 2010 2011 2012

com Quick ratio Industry

ndustry Leverage Ratios: Debt-to-Equity

0.319858526201066
0.31743188193983 0.309820404947405
0.296187383087433
0.305855460686789
831953

2009 2010 2011 2012

Debt-to-Equity Ratio Industry
 2009 2010 2011 2012
Debt-to-Equity Ratio Industry

. Industry Activity Ratios: Avg Collection

41.3442095368195
41.3525089560374
41.3423484135591
41.3421991837012
368845 35.773831413825

2009 2010 2011 2012

Collection Period Ratio Industry

m vs. Industry Profitability Ratios: Profit

atio

0.117791771544408

1686569167 0.052738285670354
0.039244930117544
0.027304496831706
0.01453369835533

008 2009 2010 2011 2012

com Profit Margin Ratio Industry
1686569167 0.052738285670354
0.039244930117544
0.027304496831706
0.01453369835533

008 2009 2010 2011 2012

com Profit Margin Ratio Industry

Industry Profitability Ratios: Return on

64083 0.060078982814658
0.088632485088704
0.045483485733747
0.031784682794087
01676864911921

rn on Equity Ratio Industry

s. Industry Profitability Ratios: Price-to-

tio

247.206419607422
149.228323192991
162351 79.3299123728671
33.4229154753362
111.079662513674

ice-to-Equity Ratio Industry

ice-to-Equity Ratio Industry
Created by EDGAR Online, Inc.

BROADCOM CORP
BALANCE_SHEET
Form Type: 10-K
Period End: Dec 31, 2009
Date Filed: Feb 03, 2010

CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

December 31,
2009 2008 2007 2006

Assets
Current assets:
Cash and cash equivalents $ 1,397,093 $ 1,190,645 $ 2,186,572 $ 2,158,110
Short-term marketable securities 532,281 707,477 141,728 522,340
Accounts receivable (net of allowance for doubtful accounts
of $6,787 in 2009, $5,354 in 2008, $5,472 in 2007 and $6,894 in 2006 ) 508,627 372,311 369,004 382,823
Inventory 362,428 366,106 231,313 202,794
Prepaid expenses and other current assets 113,903 114,674 125,663 85,721

Total current assets 2,914,332 2,751,213 3,054,280 3,351,788

Property and equipment, net 229,317 234,691 241,803 164,699
Long-term marketable securities 438,616 - 75,352.00 121,148.00
Goodwill 1,329,614 1,279,243 1,376,721 1,185,145
Purchased intangible assets, net 150,927 61,958 46,607 29,029
Other assets 64,436 66,160 43,430 24,957

Total assets $ 5,127,242 $ 4,393,265 $ 4,838,193 $ 4,876,766

Liabilities and Shareholders' Equity

Current liabilities:
Accounts payable $ 437,353 $ 310,487 $ 313,621 $ 307,972
Wages and related benefits 190,315 151,551 147,853 104,940
Deferred revenue and income 87,388 12,338 15,864 1,873
Accrued liabilities 433,294 242,727 280,271 263,916

Total current liabilities 1,148,350 717,103 757,609 678,701

Commitments and contingencies
Long-term deferred revenue 608 3,898 8,108 0
Other long-term liabilities 86,438 65,197 36,328 6,399
Shareholders' equity:
Convertible preferred stock, $.0001 par value:
Authorized shares - 6,432 - none issued and outstanding - - - -
Class A common stock, $.0001 par value:
Authorized shares - 2,500,000
Issued and outstanding shares -
438,557 in 2009, 426,095 in 2008, 468,858 in 2007 and 473,533 in 2006 44 43 47 48
Class B common stock, $.0001 par value:
Authorized shares - 400,000
Issued and outstanding shares -
56,999 in 2009, 62,923 in 2008, 68,400 in 2007 and 74,781 in 2006 6 6 7 7
Additional paid-in capital 11,153,060 10,930,315 11,576,042 11,948,908
Accumulated deficit (7,259,069) (7,324,330) (7,539,124) (7,757,202)
Accumulated other comprehensive income (loss) (2,195) 1,033 (824) (95)

Total shareholders' equity 3,891,846 3,607,067 4,036,148 4,191,666

Total liabilities and shareholders' equity $ 5,127,242 $ 4,393,265 $ 4,838,193 $ 4,876,766

Created by EDGAR Online, Inc.

BROADCOM CORP
INCOME_STATEMENT2
Form Type: 10-K
Period End: Dec 31, 2009
Date Filed: Feb 03, 2010

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

Year Ended December 31,

2009 2008 2007 2006

Net revenue:
Product revenue $ 4,272,726 $ 4,485,239 $ 3,739,312
Income from Qualcomm Agreement (see Note 2) 170,611 - -
Licensing revenue 46,986 172,886 37,083

Total net revenue 4,490,323 4,658,125 3,776,395 3,667,818

Costs and expenses:
Cost of product revenue 2,210,559 2,213,015 1,832,178 1,795,565
Research and development 1,534,918 1,497,668 1,348,508 1,117,014
Selling, general and administrative 479,362 543,117 492,737 504,012
Amortization of purchased intangible assets 14,548 3,392 1,027 2,347
Impairment of goodwill and other long-lived assets 18,895 171,593 1,500 0
Settlement costs, net 118,468 15,810 - -
Restructuring costs (reversals) 7,501 (1,000) - -
In-process research and development - 42,400 15,470 5,200
Charitable contribution 50,000 - - -

Total operating costs and expenses 4,434,251 4,485,995 3,691,420 3,424,138

Income from operations 56,072 172,130 84,975 243,680
Interest income, net 13,901 52,201 131,069 118,997
Other income (expense), net 2,218 (2,016) 3,412 3,964

Income before income taxes 72,191 222,315 219,456 366,641

Provision for income taxes 6,930 7,521 6,114 12,400

Net income $ 65,261 $ 214,794 $ 213,342 $ 379,041

Net income per share (basic) $ 0.13 $ 0.42 $ 0.39 $ 0.69

Net income per share (diluted) $ 0.13 $ 0.41 $ 0.37 $ 0.64

Weighted average shares (basic) 494,038 512,648 542,412 545,724

Weighted average shares (diluted) 512,645 524,208 577,682 588,318

Created by EDGAR Online, Inc.

BROADCOM CORP
CASH_FLOW
Form Type: 10-K
Period End: Dec 31, 2009
Date Filed: Feb 03, 2010

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Year Ended December 31,

2009 2008 2007 2006

Operating activities
Net income $ 65,261 $ 214,794 $ 213,342 $ 379,041
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 74,435 78,236 64,082 47,602
Stock-based compensation expense:
Stock options and other awards 159,790 224,244 324,261 340,665
Restricted stock units 336,557 285,130 195,391 127,699
Acquisition-related items:
Amortization of purchased intangible assets 30,744 19,249 14,512 12,403
Impairment of goodwill and long-lived assets 18,895 171,593 1,500 0
In-process research and development - 42,400 15,470 5,200
Loss on strategic investments, net 4,266 1,809 (700)
Non-cash restructuring reversals, net (1,944) (1,000) - -
Loss (gain) on sale of marketable securities (1,046) 1,781 - -
Changes in operating assets and liabilities:
Accounts receivable (131,656) (3,294) 18,400 (75,423)
Inventory 12,013 (112,173) (27,082) (7,598)
Prepaid expenses and other assets 8,714 (11,273) (59,691) 20,166
Accounts payable 122,985 616 13,698 (8,336)
Deferred revenue and income 71,760 (7,736) 22,099 0
Accrued settlement costs 170,500 (2,000) (2,000) (2,011)
Other accrued and long-term liabilities 49,885 14,782 29,526 52,951

Net cash provided by operating activities 986,893 919,615 825,317 891,659

Investing activities
Net purchases of property and equipment (66,570) (82,808) (150,427) (92,477)
Net cash paid for acquired companies (165,258) (170,541) (219,324) (70,050)
Sales (purchases) of strategic investments (2,000) (355) 312 (1,984)
Purchases of marketable securities (1,138,681) (1,115,704) (667,384) (926,956)
Proceeds from sales and maturities of marketable
securities 871,152 624,026 1,091,228 721,713

Net cash provided by (used in) investing

activities (501,357) (745,382) 54,405 (369,754)

Financing activities
Repurchases of Class A common stock (421,869) (1,283,952) (1,140,213) (275,733)
Proceeds from issuance of common stock 227,209 171,853 358,629 475,887
Payments of assumed debt and other obligations 0 0 0 (4,625)
Repayment of notes receivable by employees 0 0 0 3,400
Minimum tax withholding paid on behalf of
employees for restricted stock units (84,428) (58,061) (69,676) 0

Net cash used in financing activities (279,088) (1,170,160) (851,260) 198,129

Increase (decrease) in cash and cash equivalents 206,448 (995,927) 28,462 720,834
Cash and cash equivalents at beginning of year 1,190,645 2,186,572 2,158,110 1,437,276

Cash and cash equivalents at end of year $ 1,397,093 $ 1,190,645 $ 2,186,572 $ 2,158,110

Supplemental disclosure of cash flow information

Income taxes paid $ 16,747 $ 9,799 $ 6,463 $ 3,929
Created by EDGAR Online, Inc.

BROADCOM CORP
STOCKHOLDERS_EQUITY
Form Type: 10-K
Period End: Dec 31, 2009
Date Filed: Feb 03, 2010

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME

(In thousands)

Common Stock
Shares Amount

Balance at December 31, 2006 548,314 $ 55

Cumulative effect to prior year accumulated
deficit related to the adoption of FIN 48 - -
Shares issued pursuant to stock awards, net 22,689 -
Employee stock purchase plan 2,044 -
Repurchases of Class A common stock (35,789) (1)
Stock-based compensation expense - -
Stock option exchange - -
Components of comprehensive income:
Translation adjustments - -
Net income - -

Comprehensive income - -

Balance at December 31, 2007 537,258 54

Shares issued pursuant to stock awards, net 12,573 1
Employee stock purchase plan 4,413 -
Repurchases of Class A common stock (65,226) (6)
Stock-based compensation expense - -
Components of comprehensive income:
Unrealized gain on marketable securities - -
Translation adjustments - -
Net income - -

Comprehensive income - -

Balance at December 31, 2008 489,018 49

Shares issued pursuant to stock awards, net 15,680 1
Employee stock purchase plan 5,858 -
Repurchases of Class A common stock (15,000) -
Stock-based compensation expense - -
Components of comprehensive income:
Unrealized loss on marketable securities - -
Translation adjustments - -
Net income - -

Comprehensive income - -

Balance at December 31, 2009 495,556 $ 50

 Accumulated
Other
Additional Comprehensive Total
Paid-In Accumulated Income Shareholders'
Capital Deficit (Loss) Equity

$ 11,948,908 $ (7,757,202) $ (95) $ 4,191,666

- 4,736 - 4,736
234,616 - - 234,616
55,350 - - 55,350
(1,156,279) - - (1,156,280)
519,652 - - 519,652
(26,205) - - (26,205)

- - (729) (729)
- 213,342 - 213,342

- - - 212,613

11,576,042 (7,539,124) (824) 4,036,148

34,059 - - 34,060
78,720 - - 78,720
(1,267,880) - - (1,267,886)
509,374 - - 509,374

- - 5,213 5,213
- - (3,356) (3,356)
- 214,794 - 214,794

- - - 216,651

10,930,315 (7,324,330) 1,033 3,607,067

 59,054 - - 59,055
85,491 - - 85,491
(421,869) - - (421,869)
500,069 - - 500,069

- - (4,624) (4,624)
- - 1,396 1,396
- 65,261 - 65,261

- - - 62,033

$ 11,153,060 $ (7,259,069) $ (2,195) $ 3,891,846

 R&D Expense Broadcom Texas Instruments Qualcomm
2006 1,117,014 2,195,000 1,538,000
2007 1,349,508 2,140,000 1,829,000
2008 1,497,668 1,940,000 2,281,000
2009 1,534,918 1,476,000 2,432,000

Percentage of Revenue Broadcom Texas Instruments Qualcomm

2006 30.45% 15.40% 20.44%
2007 35.74% 15.47% 20.62%
2008 32.15% 15.52% 20.47%
2009 34.18% 14.16% 22.82%

R&D Expenditure Ratios

35.74% 34.18%
30.45% 32.15%

22.82%
20.44% 20.62% 20.47%

15.40% 15.47% 15.52% 14.16%

1 2 3 4
Broadcom Texas Instruments Qualcomm
 R&D Expenditure Ratios

2,281,000 2,432,000
2,195,000 2,140,000
1,829,000 1,940,000
1,538,000 1,497,668 1,534,918
1,476,000
1,349,508
1,117,014

1 2 3 4
Broadcom Texas Instruments Qualcomm
Created by EDGAR Online, Inc.

BROADCOM CORP
INCOME_STATEMENT
Form Type: 10-K
Period End: Dec 31, 2009
Date Filed: Feb 03, 2010

Reportable Segments
Broadband Mobile &
Communications Wireless

Year ended December 31, 2009

Net revenue $ 1,525,193 $ 1,719,998
Operating income (loss) 172,702 116,882
Year ended December 31, 2008
Net revenue $ 1,722,671 $ 1,528,178
Operating income (loss) 381,421 33,974
Year ended December 31, 2007
Net revenue $ 1,412,293 $ 1,192,634
Operating income (loss) 312,672 4,955
Enterprise All
Networking Other Consolidated
(In thousands)

$ 1,055,553 $ 189,579 $ 4,490,323

286,303 (519,815) 56,072

$ 1,258,044 $ 149,232 $ 4,658,125

390,293 (633,558) 172,130

$ 1,139,668 $ 31,800 $ 3,776,395

267,946 (500,598) 84,975
 TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Balance Sheets
(Millions of dollars, except share amounts)

2009
Assets
Current assets:
Cash and cash equivalents $ 1,182
Short-term investments 1,743
Accounts receivable, net of allowances 1,277
Inventories 1,202
Deferred income taxes 546
Prepaid expenses and other current assets 164
Total current assets 6,114
Property, plant and equipment at cost 6,705
Less accumulated depreciation (3,547)
Property, plant and equipment, net 3,158
Long-term investments 637
Goodwill 926
Acquisition-related intangibles 124
Deferred income taxes 926
Capitalized software licenses, net 119
Overfunded retirement plans 64
Other assets 51
Total assets $ 12,119

Liabilities and Stockholders’ Equity

Current liabilities:
Accounts payable $ 503
Accrued expenses and other liabilities 841
Income taxes payable 128
Accrued profit sharing and retirement 115
Total current liabilities 1,587
Underfunded retirement plans 425
Deferred income taxes 67
Deferred credits and other liabilities 318
Total liabilities 2,397

Stockholders’ equity:
Preferred stock, $25 par value. Authorized -- 10,000,000 shares.
Participating cumulative preferred. None issued. --
Common stock, $1 par value. Authorized --2,400,000,000
shares. Shares issued: 2009 -- 1,739,811,721 1,740
 Paid-in capital 1,086
Retained earnings 22,066
Less treasury common stock at cost:
Shares: 2009 -- 499,693,704 (14,549)
Accumulated other comprehensive loss (621)
Total stockholders’ equity 9,722
Total liabilities and stockholders’ equity $ 12,119
 TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Income
(Millions of dollars, except share and per-share amounts)

2009

Revenue $ 10,427
Cost of revenue 5,428
Gross profit 4,999
Research and development (R&D) 1,476
Selling, general and administrative (SG&A) 1,320
Restructuring Expense 212
Operating profit 1,991
Other income (expense) net 26
Income before income taxes 2,017
Provision for income taxes 547
Net income $ 1,470

Earnings per common share:

Basic $ 1 .16
Diluted $ 1 .15

Average shares outstanding (millions):

Basic 1,260
Diluted 1,269

Cash dividends declared per share of common stock $ .45

 TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Millions of dollars)

2009
Cash flows from operating activities:
Net income $ 1470
Adjustments to net income:
Depreciation 877
Stock-based compensation 186
Amortization of acquisition-related intangibles 48
Deferred income taxes 146
Increase (decrease) from changes in:
Accounts receivable (364)
Inventories 177
Prepaid expenses and other current assets 35
Accounts payable and accrued expenses (17)
Income taxes payable 73
Accrued profit sharing and retirement (16)
Other 28
Net cash provided by operating activities 2,643

Cash flows from investing activities:

Additions to property, plant and equipment (753)
Purchases of short-term investments (2,273)
Sales and maturities of short-term investments 2,030
Purchases of long-term investments (9)
Sales of long-term investments 64
Acquisitions, net of cash acquired (155)
Net cash used in investing activities (1096)

Cash flows from financing activities:

Dividends paid (567)
Sales and other common stock transactions 109
Excess tax benefit from share-based payments 1
Stock repurchases (954)
Net cash used in financing activities (1,411)

Net increase in cash and cash equivalents 136

Cash and cash equivalents, beginning of year 1,046
Cash and cash equivalents, end of year $ 1,182
assets: 3/31/2009 6/30/2009 9/30/2009 12/27/2009

Cash and cash equivalents 3892 3729 $ 2,717 $ 3,660

Marketable securities 5523 6159 8,352 8,504
Accounts receivable, net 804 943 700 616
Inventories 409 375 453 350
Deferred tax assets 280 286 149 199
Collateral held under securities lending 0 0
Other current assets 324 247 199 245
Total current assets 11232 11739 12570 13574
Marketable securities 4560 5801 6,673 6,764
Deferred tax assets 941 822 843 1,118
Property, plant and equipment, net 2282 2311 2,387 2,384
Goodwill 1502 1512 1,492 1,490
Other intangible assets, net 3123 3138 3,065 3,142
Other assets 444 398 415 431
Total assets 24084 25721 27445 28903
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable 444 561 636 415
Payroll and other benefits related liabilities 313 459 480 385
Income taxes payable 109 458
Unearned revenues 421 447 441 567
Obligations under securities lending 0 0
Other current liabilities 970 905 1256 1123
Total current liabilities 2257 2372 2813 2948
Unearned revenues 3599 3528 3464 3775
Income taxes payable 276 263 47
Other liabilities 839 839 805 827
Total liabilities 6971 7002 7129 7550
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock, $0.0001 par value; issuable in series;
2009 and September 28, 2008 — —
Common stock, 6,000 shares authorized; 1,653 and 1,656 shares issued
outstanding at March 29, 2009 and September 28, 2008, respectively — —
Paid-in capital 7648 7988 8493 8817
Retained earnings 10241 10716 11235 11792
Accumulated other comprehensive loss -776 7 588 744
Total stockholders’ equity 17113 18711 20316 21353
Total liabilities and stockholders’ equity 24084 25713 27445 28903
 Q Q Q
3/31/2009 6/30/2009 9/30/2009

Revenues:
Equipment and services 1412 1862 1768
Licensing and royalty fees 1043 891 922
Total revenues 2455 2753 2690
Operating expenses:
Cost of equipment and services revenues 1,604 738 864 824
Research and development 604 618 614
Selling, general and administrative 375 377 391
Litigation settlement (Note 9) 748 0 35
Accrued KFTC fine (Note 9) 230
Total operating expenses 2465 1859 2094
Operating (loss) income (10 ) -10 894 596
Investment (loss) income, net (Note 4) -91 90 146
(Loss) income before income taxes (101 ) -101 984 742
Income tax expense -188 -247 60
Net (loss) income -289 737 802
Basic (loss) earnings per common share -0.18 0.45 0.48
Diluted (loss) earnings per common share -0.18 0.44 0.48
Shares used in per share calculations:
Basic 1651 1626 1653
Diluted 165 1654 1668
Dividends per share announced 0.16 0.17 0.17
Q 12 Months
12/30/2009 12/27/2009

1663 6705
1007 3863
2670 10568

816 3242
596 2432
379 1522
783
230
1791 8209
879 2359
173 318
1052 2677
-211 -586
841 2091
0.50 1.25
0.50 1.24

1672
1691
0.17 0.67
QUALCOMM Incorporated 3/31/2009
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 3 mo
(In millions)
(Unaudited)

Operating Activities:
Net income 52
Adj. to reconcile net inc. to net cash provided by operating activities:
Depreciation and amortization 306
Revenues related to non-monetary exchanges -57
Non-cash portion of income tax expense 166
Non-cash portion of share-based compensation expense 285
Incremental tax benefit from stock options exercised -32
Net realized losses (gains) on marketable sec. and other inv. 33
Other-than-temporary losses on marketable sec. and other inv. 602
Other items, net -20
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net 2824
Inventories 113
Other assets -30
Trade accounts payable -103
Payroll, benefits and other liabilities 710
Unearned revenues -84
Net cash provided by operating activities 4765
Investing Activities:
Capital expenditures -468
Purchases of available-for-sale securities -4296
Proceeds from sale of available-for-sale securities 2461
Cash received for partial settlement of inv. receivables 317
Other investments and acquisitions, net of cash acquired -40
Change in collateral held under securities lending 173
Other items, net 6
Net cash (used) provided by investing activities -1847
Financing Activities:
Proceeds from issuance of common stock 101
Incremental tax benefit from stock options exercised 32
Dividends paid -528
Repurchase and retirement of common stock -285
Change in obligations under securities lending -174
Other items, net -3
Net cash used by financing activities -857
Effect of exchange rate changes on cash -9
Net increase in cash and cash equivalents 2052
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
 6/30/2009 9/30/2009 12/27/2009 12/27/2009
3 mo 3 mo 3 mo 12 mo

790 802 841 2485

460 175 162 1103

-86 -28 -37 -208
222 -255 32 165
436 148 151 1020
-54 -14 -13 -113
-57 -22 -102 -148
717 -91 57 1285
-22 58 4 20

2691 392 87 5994

143 -74 101 283
-17 -41 -32 -120
-8 65 -226 -272
737 247 -124 1570
-101 -41 338 112
5851 1321 1239 13176

-617 -144 -88 -1317

-6497 -3946 -2098 -16837
3606 1668 2013 9748
349 8 674
-47 -7 -6 -100
173 346
6 -1 -1 10
-3027 -2430 -172 -7476

276 366 152 895

54 25 13 124
-810 -808 -284 -2430
-285 525 -45
-173 -347
0 -3 -1 -7
-938 105 -120 -1810
 -5 -4 -18
1881 -1004 943 3872
Broadcom Bluetooth Earpiece - Voice to Text (Base Case)

Capital investment 30,000,000

0.2000 0.3200 0.1920 0.1152 0.1152 0.0576
5 years MACRS 6,000,000 9,600,000 5,760,000 3,456,000 3,456,000 1,728,000
Book Value 24,000,000 14,400,000 8,640,000 5,184,000 1,728,000 0
ending WC 8,755,000 9,468,533 10,240,615 11,074,582 11,977,618 12,959,025
A/R to sales 9,605,000 10,387,808 11,234,850 12,149,784 13,140,494 14,217,183
Inventory to sales 6,859,500 7,418,549 8,023,472 8,676,881 9,384,406 10,153,334
A/Payables to sales 7,709,500 8,337,824 9,017,707 9,752,083 10,547,281 11,411,491

Sales price 0 $85.00 $87.55 $90.18 $92.88 $95.67 $98.58

Cost 0 25 25.75 26.52 27.32 28.14 28.98

Unit Forecast 1,000,000 1050000 1,102,500 1,157,625 1,215,507 1,276,281

Base case Capital Budgeting-Bluetooth Earpiece

Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6
Revenue 85,000,000 91,927,500 99,423,450 107,520,210 116,287,555 125,815,781
Cost 25,000,000 27,037,500 29,241,056 31,624,202 34,201,596 36,988,987
Dep 6,000,000 9,600,000 5,760,000 3,456,000 3,456,000 1,728,000
EBIT 54,000,000 55,290,000 64,422,394 72,440,008 78,629,959 87,098,794
tax 0.34 18,360,000 18,798,600 21,903,614 24,629,603 26,734,186 29,613,590
NI 35,640,000 36,491,400 42,518,780 47,810,405 51,895,773 57,485,204
Dep 6,000,000 9,600,000 5,760,000 3,456,000 3,456,000 1,728,000
OCF 41,640,000 46,091,400 48,278,780 51,266,405 55,351,773 59,213,204

NWC -8,755,000 -713,533 -772,083 -833,966 -903,037 -981,407

WC recovery $ 12,959,025
Net change in WC -8,755,000 -713,533 -772,083 -833,966 -903,037 11,977,618

Capital investment -30,000,000

resale value $ 6,000,000.00
Tax savings 0 -2,040,000 (bk-resale)*.34
Net Cap spending -30,000,000 0 0 0 0 0 3,960,000

OCF 41,640,000 46,091,400 48,278,780 51,266,405 55,351,773 59,213,204

NWC -8,755,000 -713,533 -772,083 -833,966 -903,037 11,977,618
Net Cap Spend -30,000,000 0 0 0 0 0 3,960,000
Net CFs -30,000,000 32,885,000 45,377,868 47,506,697 50,432,439 54,448,736 75,150,822
PVIF 1 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323
DCFs -$30,000,000 $28,596,796 $34,310,206 $31,235,653 $28,837,268 $27,071,912 $32,487,700

NPV = $152,539,536

IRR = 129.7%

Payback = 1.67 yrs

cum ncf -$30,000,000 2,885,000 48,262,868 95,769,565 146,202,003 200,650,740 275,801,562

-2.66997397485872
Bluetooth earpiece - voice to text
Best Case Scenario Broadcom's bluetooth earpiece took off and saw 15% growth in sales and a price increase
Capital investment 30,000,000
0.2000 0.3200 0.1920 0.1152
5 years MACRS 6,000,000 9,600,000 5,760,000 3,456,000
Book Value 24,000,000 14,400,000 8,640,000 5,184,000
ending WC 8,755,000 13,029,500 14,983,925 17,231,514
A/R to sales 9,605,000 14,294,500 16,438,675 18,904,476
Inventory to sales 6,859,500 10,208,550 11,739,833 13,500,807
A/Payables to sales 7,709,500 11,473,550 13,194,583 15,173,770

Sales price 0 $85.00 $110.00 $110.00 $110.00

Cost 0 25 25.75 26.52 27.32

Unit Forecast 1,000,000 1150000 1,322,500 1,520,875

Yr 0 Yr 1 Yr 2 Yr 3 Yr 4
Revenue 85,000,000 126,500,000 145,475,000 167,296,250
Cost 25,000,000 29,612,500 35,076,006 41,547,529
Dep 6,000,000 9,600,000 5,760,000 3,456,000
EBIT 54,000,000 87,287,500 104,638,994 122,292,721
tax 0.34 18,360,000 29,677,750 35,577,258 41,579,525
NI 35,640,000 57,609,750 69,061,736 80,713,196
Dep 6,000,000 9,600,000 5,760,000 3,456,000
OCF 41,640,000 67,209,750 74,821,736 84,169,196

NWC -8,755,000 -4,274,500 -1,954,425 -2,247,589

WC recovery
Net change in WC -8,755,000 -4,274,500 -1,954,425 -2,247,589

Capital investment -30,000,000

resale value
Tax savings 0
Net Cap spending -30,000,000 0 0 0 0

OCF 41,640,000 67,209,750 74,821,736 84,169,196

NWC -8,755,000 -4,274,500 -1,954,425 -2,247,589
Net Cap Spend -30,000,000 0 0 0 0
Net CFs -30,000,000 32,885,000 62,935,250 72,867,311 81,921,607
PVIF 1 0.8696 0.7561 0.6575 0.5718
DCFs -$30,000,000 $28,596,796 $47,585,343 $47,910,257 $46,842,775

NPV = $244,245,199
IRR = 156.1%

Payback = 1.38 yrs

cum ncf -$30,000,000 2,885,000 65,820,250 138,687,561 220,609,168

Broadcom Bluetooth earpiece - voice to text

Worst Case Scenario After year 1 there is no demand and there is a steady decrease of 10% each year. Due to l
Capital investment 30,000,000
0.2000 0.3200 0.1920 0.1152
5 years MACRS 6,000,000 9,600,000 5,760,000 3,456,000
Book Value 24,000,000 14,400,000 8,640,000 5,184,000
ending WC 8,500,000 6,363,637 5,785,129 5,259,205
Sales price 85 $85.00 $70.00 $70.00 $70.00
Cost 30

Unit Forecast 1,000,000 909,091 826,447 751,315

Yr 0 Yr 1 Yr 2 Yr 3 Yr 4
Revenue 85,000,000 63,636,370 57,851,290 52,592,050
Cost 30,000,000 27,272,730 24,793,410 0
Dep 6,000,000 9,600,000 5,760,000 3,456,000
EBIT 49,000,000 26,763,640 27,297,880 49,136,050
tax 0.34 16,660,000 9,099,638 9,281,279 16,706,257
NI 32,340,000 17,664,002 18,016,601 32,429,793
Dep 6,000,000 9,600,000 5,760,000 3,456,000
OCF 38,340,000 27,264,002 23,776,601 35,885,793

NWC -8,500,000 2,136,363 578,508 525,924

WC recovery
Net change in WC -8,500,000 2,136,363 578,508 525,924

Capital investment -30,000,000

resale value
Tax savings 0
Net Cap spending -30,000,000 0 0 0 0

OCF 38,340,000 27,264,002 23,776,601 35,885,793

NWC -8,500,000 2,136,363 578,508 525,924
Net Cap Spend -30,000,000 0 0 0 0
Net CFs -30,000,000 29,840,000 29,400,365 24,355,109 36,411,717
PVIF 1 0.8696 0.7561 0.6575 0.5718
DCFs -$30,000,000 $25,948,864 $22,229,616 $16,013,484 $20,820,220
NPV = $87,957,375

IRR = 97.3%

Payback = 4.24 yrs

cum ncf -$30,000,000 -160,000 29,240,365 53,595,474 90,007,191

ales and a price increased to $110 after year 1.

0.1152 0.0576
3,456,000 1,728,000
1,728,000 0
19,816,249 22,788,686
21,740,157 25,001,180
15,525,935 17,854,825
17,449,843 20,067,319

$110.00 $110.00
28.14 28.98

1,749,007 2,011,358

Yr 5 Yr 6
192,390,770 221,249,380
49,213,070 58,292,880
3,456,000 1,728,000
139,721,700 161,228,500
47,505,378 54,817,690
92,216,322 106,410,810
3,456,000 1,728,000
95,672,322 108,138,810

-2,584,736 -2,972,437
$ 22,788,686
-2,584,736 19,816,249

$ 6,000,000.00
-2,040,000 (bk-resale)*.34
0 3,960,000

95,672,322 108,138,810
-2,584,736 19,816,249
0 3,960,000
93,087,587 131,915,060
0.4972 0.4323
$46,283,148 $57,026,880
 313,696,754 445,611,814
-2.3780207912888

f 10% each year. Due to lack of demand sale price is reduced to $70 and costs increase to $30

0.1152 0.0576
3,456,000 1,728,000
1,728,000 0
4,781,098 4,346,454
$70.00 $70.00

683,014 620,922

Yr 5 Yr 6
47,810,980 43,464,540
0 0
3,456,000 1,728,000
44,354,980 41,736,540
15,080,693 14,190,424
29,274,287 27,546,116
3,456,000 1,728,000
32,730,287 29,274,116

478,107 434,644
$ 4,346,454.00
478,107 4,781,098

$ 6,000,000.00
-2,040,000 (bk-resale)*.34
0 3,960,000

32,730,287 29,274,116
478,107 4,781,098
0 3,960,000
33,208,394 38,015,214
0.4972 0.4323
$16,511,213 $16,433,977
123,215,585 161,230,799
3.24121767941417
Broadcom Bluetooth earpiece - voice to text
Increased tax rate of 38%
$10,000 Concept design cost is irrelevant
Capital investment 30,000,000
0.2000 0.3200 0.1920 0.1152
5 years MACRS 6,000,000 9,600,000 5,760,000 3,456,000
Book Value 24,000,000 14,400,000 8,640,000 5,184,000
ending WC 8,755,000 9,468,533 10,240,615 11,074,582
A/R to sales 9,605,000 10,387,808 11,234,850 12,149,784
Inventory to sales 6,859,500 7,418,549 8,023,472 8,676,881
A/Payables to sales 7,709,500 8,337,824 9,017,707 9,752,083

Sales price 0 $85.00 $87.55 $90.18 $92.88

Cost 0 25 25.75 26.52 27.32

Unit Forecast 1,000,000 1050000 1,102,500 1,157,625

Yr 0 Yr 1 Yr 2 Yr 3 Yr 4
Revenue 85,000,000 91,927,500 99,423,450 107,520,210
Cost 25,000,000 27,037,500 29,241,056 31,624,202
Dep 6,000,000 9,600,000 5,760,000 3,456,000
EBIT 54,000,000 55,290,000 64,422,394 72,440,008
tax 0.38 20,520,000 21,010,200 24,480,510 27,527,203
NI 33,480,000 34,279,800 39,941,884 44,912,805
Dep 6,000,000 9,600,000 5,760,000 3,456,000
OCF 39,480,000 43,879,800 45,701,884 48,368,805

NWC -8,755,000 -713,533 -772,083 -833,966

WC recovery
Net change in WC -8,755,000 -713,533 -772,083 -833,966

Capital investment -30,000,000

resale value
Tax savings 0
Net Cap spending -30,000,000 0 0 0 0

OCF 39,480,000 43,879,800 45,701,884 48,368,805

NWC -8,755,000 -713,533 -772,083 -833,966
Net Cap Spend -30,000,000 0 0 0 0
Net CFs -30,000,000 30,725,000 43,166,268 44,929,801 47,534,838
PVIF 1 0.8696 0.7561 0.6575 0.5718
DCFs -$30,000,000 $26,718,460 $32,638,015 $29,541,344 $27,180,421
NPV = $142,464,195

IRR = 122.8%

Payback = 3.63 yrs

cum ncf -$30,000,000 725,000 43,891,268 88,821,069 136,355,907

 0.1152 0.0576
3,456,000 1,728,000
1,728,000 0
11,977,618 12,959,025
13,140,494 14,217,183
9,384,406 10,153,334
10,547,281 11,411,491

$95.67 $98.58
28.14 28.98

1,215,507 1,276,281

Yr 5 Yr 6
116,287,555 125,815,781
34,201,596 36,988,987
3,456,000 1,728,000
78,629,959 87,098,794
29,879,384 33,097,542
48,750,574 54,001,252
3,456,000 1,728,000
52,206,574 55,729,252

-903,037 -981,407
$ 12,959,025.44
-903,037 11,977,618

$ 6,000,000.00
-2,280,000 (bk-resale)*.34
0 3,720,000

52,206,574 55,729,252
-903,037 11,977,618
0 3,720,000
51,303,538 71,426,870
0.4972 0.4323
$25,508,119 $30,877,836
187,659,445 259,086,316
2.62729479695182
Broadcom Bluetooth earpiece - voice to text
Return of 10%
$10,000 Concept design cost is irrelevant
Capital investment 30,000,000
0.2000 0.3200 0.1920 0.1152
5 years MACRS 6,000,000 9,600,000 5,760,000 3,456,000
Book Value 24,000,000 14,400,000 8,640,000 5,184,000
ending WC 8,755,000 9,468,533 10,240,615 11,074,582
A/R to sales 9605000.00 10387807.50 11234849.85 12149783.73
Inventory to sales 6859500.00 7418549.25 8023472.42 8676880.95
A/Payables to sales 7709500.00 8337824.25 9017706.92 9752083.05

Sales price 0 $85.00 $87.55 $90.18 $92.88

Cost 0 25 25.75 26.52 27.32

Unit Forecast 1,000,000 1050000 1,102,500 1,157,625

Yr 0 Yr 1 Yr 2 Yr 3 Yr 4
Revenue 85,000,000 91,927,500 99,423,450 107,520,210
Cost 25,000,000 27,037,500 29,241,056 31,624,202
Dep 6,000,000 9,600,000 5,760,000 3,456,000
EBIT 54,000,000 55,290,000 64,422,394 72,440,008
tax 0.34 18,360,000 18,798,600 21,903,614 24,629,603
NI 35,640,000 36,491,400 42,518,780 47,810,405
Dep 6,000,000 9,600,000 5,760,000 3,456,000
OCF 41,640,000 46,091,400 48,278,780 51,266,405

NWC -8,755,000 -713,533 -772,083 -833,966

WC recovery
Net change in WC -8,755,000 -713,533 -772,083 -833,966

Capital investment -30,000,000

resale value
Tax savings 0
Net Cap spending -30,000,000 0 0 0 0

OCF 41,640,000 46,091,400 48,278,780 51,266,405

NWC -8,755,000 -713,533 -772,083 -833,966
Net Cap Spend -30,000,000 0 0 0 0
Net CFs -30,000,000 32,885,000 45,377,868 47,506,697 50,432,439
PVIF 1 0.9091 0.8264 0.7513 0.683
DCFs -$30,000,000 $29,895,754 $37,500,270 $35,691,781 $34,445,356
NPV = $183,763,020

IRR = 129.7%

Payback = 3.67 yrs

cum ncf -$30,000,000 2,885,000 48,262,868 95,769,565 146,202,003

 0.1152 0.0576
3,456,000 1,728,000
1,728,000 0
11,977,618 12,959,025
13140493.68 14217183.25
9384405.66 10153333.53
10547281.21 11411491.33

$95.67 $98.58
28.14 28.98

1,215,507 1,276,281

Yr 5 Yr 6
116,287,555 125,815,781
34,201,596 36,988,987
3,456,000 1,728,000
78,629,959 87,098,794
26,734,186 29,613,590
51,895,773 57,485,204
3,456,000 1,728,000
55,351,773 59,213,204

-903,037 -981,407
$ 12,959,025.44
-903,037 11,977,618

$ 6,000,000.00
-2,040,000 (bk-resale)*.34
0 3,960,000

55,351,773 59,213,204
-903,037 11,977,618
0 3,960,000
54,448,736 75,150,822
0.6209 0.5645
$33,807,220 $42,422,639
200,650,740 275,801,562
2.6699739748587
Broadcom Bluetooth Earpiece - Voice to Text (Base Case)
Using WACC - 35.55%

Capital investment 30,000,000

0.2000 0.3200 0.1920 0.1152 0.1152 0.0576
5 years MACRS 6,000,000 9,600,000 5,760,000 3,456,000 3,456,000 1,728,000
Book Value 24,000,000 14,400,000 8,640,000 5,184,000 1,728,000 0
ending WC 8,755,000 9,468,533 10,240,615 11,074,582 11,977,618 12,959,025
A/R to sales 9,605,000 10,387,808 11,234,850 12,149,784 13,140,494 14,217,183
Inventory to sales 6,859,500 7,418,549 8,023,472 8,676,881 9,384,406 10,153,334
A/Payables to sales 7,709,500 8,337,824 9,017,707 9,752,083 10,547,281 11,411,491

Sales price 0 $85.00 $87.55 $90.18 $92.88 $95.67 $98.58

Cost 0 25 25.75 26.52 27.32 28.14 28.98

Unit Forecast 1,000,000 1050000 1,102,500 1,157,625 1,215,507 1,276,281

Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6
Revenue 85,000,000 91,927,500 99,423,450 107,520,210 116,287,555 125,815,781
Cost 25,000,000 27,037,500 29,241,056 31,624,202 34,201,596 36,988,987
Dep 6,000,000 9,600,000 5,760,000 3,456,000 3,456,000 1,728,000
EBIT 54,000,000 55,290,000 64,422,394 72,440,008 78,629,959 87,098,794
tax 0.34 18,360,000 18,798,600 21,903,614 24,629,603 26,734,186 29,613,590
NI 35,640,000 36,491,400 42,518,780 47,810,405 51,895,773 57,485,204
Dep 6,000,000 9,600,000 5,760,000 3,456,000 3,456,000 1,728,000
OCF 41,640,000 46,091,400 48,278,780 51,266,405 55,351,773 59,213,204

NWC -8,755,000 -713,533 -772,083 -833,966 -903,037 -981,407

WC recovery $ 12,959,025
Net change in WC -8,755,000 -713,533 -772,083 -833,966 -903,037 11,977,618

Capital investment -30,000,000

resale value $ 6,000,000.00
Tax savings 0 -2,040,000
Net Cap spending -30,000,000 0 0 0 0 0 3,960,000

OCF 41,640,000 46,091,400 48,278,780 51,266,405 55,351,773 59,213,204

NWC -8,755,000 -713,533 -772,083 -833,966 -903,037 11,977,618
Net Cap Spend -30,000,000 0 0 0 0 0 3,960,000
Net CFs -30,000,000 32,885,000 45,377,868 47,506,697 50,432,439 54,448,736 75,150,822
PVIF 1 0.7353 0.5407 0.3975 0.2923 0.2149 0.158
DCFs -$30,000,000 $24,180,341 $24,535,813 $18,883,912 $14,741,402 $11,701,033 $11,873,830

NPV = $75,916,331

IRR = 129.7%

Payback = 1.67 yrs

cum ncf -$30,000,000 2,885,000 48,262,868 95,769,565 146,202,003 200,650,740 275,801,562

-2.66997397486
Project Projections:

Year 1 revenue based on 1million units sold @ $85 per unit

Cost Price & Sale Price per unit to increase 3% after 1st year
Units sold to increased 5% after 1st year

Depreciation over based on MACRS (Year 1 20%, 2 32%, 3 19.2%)

Inventory will increase by ?????% in years 1, 2, & 3
Tax rate is 34%
Year 6 resale value is $6,000,000
Working capital is 25% of sales revenue

Base Values

Year 0 Year 1 Year 2 Year 3

Project Cost 30,000,000.00
Project Revenue 0.00 85,000,000 91,927,500 99,423,450
Project Cogs 0.00 25,000,000 27,037,500 29,241,056
Depreciation 0.00 6,000,000 9,600,000 5,760,000
EBIT 54,000,000 55,290,000 64,422,394
Taxes (34%) 18,360,000 18,798,600 21,903,614
35,640,000 36,491,400 42,518,780
Depreciation 6,000,000 9,600,000 5,760,000
OCF 41,640,000 46,091,400 48,278,780

Net Income 48,278,780

WC at 25% 21,250,000 22,981,875 24,855,863

Broadcom Pro Formas Pro Forma Income Statement
Consolidated Statement of Earnings
(in thousands except per share amounts)
Base Yr 1 Yr 1 project Yr 1 Yr 2 Yr 2 project Yr 2 Yr 3 Yr 3 Project Yr 3
Fiscal Year 2% growth Total 2% growth Total 2% growth Total
Net sales 4,490,323 4,580,129 85,000 4,665,129 4,758,432 91,927 4,850,359 4,947,366 99,423 5,046,789

Total revenues 4,490,323 4,580,129 85,000 4,665,129 4,758,432 91,927 4,850,359 4,947,366 99,423 5,046,789

Costs and expenses:

Depreciation expense 74,435 74,435 6,000 80,435 74435 9,600 84,035 74,435.00 5,760 80,195.00
Cost of product revenue 2,136,124 2,178,846 25,000 2,203,846 2,247,923 27,037 2,274,960 2,320,460 29,241 2,349,701
Research and development 1,534,918 1,565,616 - 1,565,616 1,596,929 - 1,596,929 1,628,867 - 1,628,867
Selling, general and administrative 479,362 479,362 - 479,362 488,949 488,949 498,728 - 498,728
Amortization of purchased intangible asse 14,548 14,548 14,548 14,548 14,548 14,548 14,548
Impairment of goodwill and other long-liv 18,895 18,895 18,895 18,895 18,895 18,895 18,895
Settlement costs, net 118,468 118,468 118,468 118,468 118,468 118,468 118,468
Restructuring costs (reversals) 7,501 7,501 7,501 7,501 7,501 7,501 7,501
Charitable contribution 50,000 50,000 50,000 50,000 50,000 50,000 50,000

Total Cost of sales 4,434,251 4,507,672 31,000 4,538,672 4,617,648 36,637 4,654,285 4,731,902 35,001 4,766,903
Earnings before interest & income taxes 56,072 72,458 54,000 126,458 140,784 55,290 196,074 215,464 64,422 279,886
Interest Income/Expense, Net 13,901 13,901 (1,671) 12,230 13,901 (1,671) 12,230 13,901 (1,671) 12,230
Other income (expense), net 2,218 2,218 - 2,218 2,262 2,262 2,308 - 2,308
Other income & expense, net 72,191 88,577 52,329 140,906 156,947 53,619 210,566 231,673 62,751 294,424
Provision for income taxes (6,930) (8,503) (5,024) (13,527) (15,067) (5,147) (20,214) (22,241) (6,024) (28,265)

Net Earnings 65,261 80,073 47,305 127,379 141,880 48,472 190,352 209,432 56,727 266,159

q1 853,436.00 0.19006
q2 1,039,944.00 0.23160
q3 1,254,197.00 0.27931
q4 1,342,746.00 0.29903

t 4490323
Pro Forma Balance Sheet A = Base B = Growth C = Section 2 2010 Projections

Yr 0 Yr 1 Yr 1 Yr 1 Yr 2 Yr 2 Yr 2 Yr 3 Yr 3 Yr 3
Base (A) Growth (B) Project [C] Total Growth (B) Project [C] Total Growth (B) Project [C] Total
Assets
Current assets:
Cash and cash equivalents 1,397,093.00 1,468,289.41 32,885 1,501,174.41 1,702,673.70 35,771 1,738,445 2,003,324 31,161 2,034,485
0.1133 Accounts receivable 508,627.00 518,928.67 9,605 528,533.67 538,996.20 10,388 549,384 560,397 11,234 571,631
0.1697 Inventory 362,428.00 369,750.25 6,859 376,609.25 381,396.58 7,418 388,815 393,704 8,023 401,727
Short-term marketable securities 532,281.00 532,281.00 532,281.00 532,281.00 532,281 532,281 532,281
Prepaid expenses and other current assets 113,903.00 113,903.00 113,903.00 113,903.00 113,903 113,903 113,903
Total current assets: 2,914,332.00 3,003,152.32 49,349 3,052,501.32 3,269,250 53,577 3,322,827 3,603,609 50,418 3,654,027

Gross PPE 553,705.00 553,705.00 30,000 583,705.00 553,705.00 30,000 583,705 553,705.00 30,000 583,705
Accumlated Depreciation (324,388.00) (324,388.00) (6,000) (330,388.00) (324,388.00) (9,600) (333,988) (324,388.00) (5,760.00) (330,148)
Property and equipment, net 229,317.00 229,317.00 229,317.00 229,317.00 229,317 229,317.00 229,317
Other Assets 1,983,593.00 1,983,593.00 1,983,593.00 1,983,593.00 1,983,593 1,983,593.00 1,983,593

Total Assets 5,127,242 5,216,062 73,349 5,289,411 5,482,160 73,977 5,556,137 5,816,519 74,658 5,891,177

Liabilities and Shareholders' Equity

Current liabilities:
0.20474 Accounts payable 437,353.00 446,100.06 7,709 453,809.06 460242.96668114 8,337 468,580 475,094 9,018 484,112
Other Current Liabilities 710,997.00 710,997.00 710,997.00 710,997.00 710,997 710,997.00 710,997
Total current liabilities: 1,148,350.00 1,157,097.06 7,709.00 1,164,806.06 1,171,239.97 8,337 1,179,576.97 1,186,091.13 9,018 1,195,109.13

Long Term Debt (Bonds Payable) - 30,000 30,000 30,000 30,000 30,000 30,000
Long-term deferred revenue 87,046.00 87,046.00 87,046 87,046.00 87,046 87,046.00 87,046

Shareholders' equity:
Convertible preferred stock, $.0001 par value:
Authorized shares - 6,432 - none issued and outstanding -
Class A common stock, $.0001 par value:
Authorized shares - 2,500,000
Issued and outstanding shares -
438,557 in 2009, 426,095 in 2008, 468,858 in 2007 and 473,533 in 2006 44.00 44.00 44.00 44.00 44 44.00 44
Class B common stock, $.0001 par value:
Authorized shares - 400,000
Issued and outstanding shares -
56,999 in 2009, 62,923 in 2008, 68,400 in 2007 and 74,781 in 2006 6.00 6.00 6.00 6.00 6 6.00 6
Additional paid-in capital 11,153,060.00 11,153,060.00 11,153,060.00 11,153,060.00 11,153,060 11,153,060.00 11,153,060
Accumulated deficit (Retained Earnings) (7,259,069.00) (7,178,995.74) 35,640 (7,143,355.74) (7,001,475.58) 35,640 (6,965,836) (6,756,403.43) 35,640 (6,720,763)
Accumulated other comprehensive income (loss) (2,195.00) (2,195.00) (2,195.00) (2,195.00) (2,195) (2,195.00) (2,195)
Total shareholders' equity 3,891,846 3,971,919 35,640 4,007,559 4,149,439 35,640 4,185,079 4,394,512 35,640 4,430,152
Total liabilities and shareholders' equity 5,127,242 5,216,062 73,349 5,289,411 5,407,725 73,977 5,481,702 5,667,649 74,658 5,742,307
-
Broadcom Annual Plan
Consolidated Statement of Earnings
(in thousands except per share amounts)
Base Yr 1 Yr 1 project Yr 1 Q1 Q2 Q3 Q4 YEAR 1
Fiscal Year 2% growth Total Total
Net sales 4,490,323 4,580,129 85,000 4,665,129 886,660 1,080,429 1,303,022 1,395,019 4,665,129

Total revenues 4,490,323 4,580,129 85,000 4,665,129 886,660 1,080,429 1,303,022 1,395,019 4,665,129

Costs and expenses:

Depreciation expense 74,435 74,435 6,000 80,435 20,109 20,109 20,109 20,109 80,435
Cost of product revenue 2,136,124 2,178,846 25,000 2,203,846 418,866 510,404 615,559 659,019 2,203,846
Research and development 1,534,918 1,565,616 - 1,565,616 391,404 391,404 391,404 391,404 1,565,616
Selling, general and administrative 479,362 479,362 - 479,362 119,841 119,841 119,841 119,841 479,362
Amortization of purchased intangible assets 14,548 14,548 14,548 3,637 3,637 3,637 3,637 14,548
Impairment of goodwill and other long-lived assets 18,895 18,895 18,895 4,724 4,724 4,724 4,724 18,895
Settlement costs, net 118,468 118,468 118,468 29,617 29,617 29,617 29,617 118,468
Restructuring costs (reversals) 7,501 7,501 7,501 1,875 1,875 1,875 1,875 7,501
Charitable contribution 50,000 50,000 50,000 12,500 12,500 12,500 12,500 50,000

Total Cost of sales 4,434,251 4,507,672 31,000 4,538,672 1,002,572 1,094,110 1,199,265 1,242,725 4,538,671
Income From Operations 56,072 72,458 54,000 126,458 (115,912) (13,681) 103,757 152,294 126,458
Interest Income/Expense, Net 13,901 13,901 (1,671) 12,230 3,058 3,058 3,058 3,058 12,230
Other income (expense), net 2,218 2,218 - 2,218 555 555 555 555 2,218
Other Income Before Taxes 1.6 72,191 88,577 52,329 140,906 (112,300) (10,069) 107,369 155,906 140,906
Provision for income taxes (6,930) (8,503) (5,024) (13,527) 10,781 967 (10,307) (14,967) (13,527)

Net Earnings 1.5 65,261 80,073 47,305 127,379 (101,519) (9,103) 97,062 140,939 127,379

Quarter Revenue Per Quarter Revenue % by Quarter 0.0975 0.39 -0.096

q1 853,436.00 0.19006
q2 1,039,944.00 0.23160 1ST QUARTER REVENUE ARE DOWN- HIGHER OR LOWER
q3 1,254,197.00 0.27931
q4 1,342,746.00 0.29903

Total Revenue 2009 4,490,323

VARIANCE

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0.36
(0.36)
 Broadcom Annual Plan Balance Sheet
inventory/cost or product revenue = % for growth A = Base B = Growth C = Section 2 2010 Projections

Yr 0 Yr 1 Yr 1 Yr 1 Q1 Q2 Q3 Q4 YEAR 1 VARIANCE
Base (A) Growth (B) Project [C] Total TOTAL
Assets
Current assets:
Cash and cash equivalents 1,397,093 1,468,289 44,550 1,512,839 1,293,723 1,282,036 1,375,674 1,512,840 1,512,840
Accounts receivable 508,627 518,929 9,605 528,534 512,410 517,021 522,581 528,534 528,534 19,907
0.1697 Inventory 362,428 369,750 6,859 376,609 365,123 368,408 372,369 376,609 376,609 14,181
Short-term marketable securities 532,281 532,281 532,281 532,281 532,281 532,281 532,281 532,281 0
Prepaid expenses and other current assets 113,903 113,903 113,903 113,903 113,903 113,903 113,903 113,903 0
0 0
Total current assets: total CA 2,914,332 3,003,152 61,014 3,064,166 2,817,441 2,813,648 2,916,808 3,064,167 3,064,167 149,834
0 0
Gross PPE 553,705 553,705 30,000 583,705 583,705 583,705 583,705 583,705 583,705 30,000
Accumlated Depreciation -324,388 -324,388 -6,000 -330,388 -325,888 -327,388 -328,888 -330,388 -330,388 -6,000
Property and equipment, net 229,317 229,317 253,317 257,817 256,317 254,817 253,317 253,317 24,000
Other Assets 1,983,593 1,983,593 1,983,593 1,983,593 1,983,593 1,983,593 1,983,593 1,983,593 0
0 0
Total Assets 5,127,242 5,216,062 85,014 5,301,076 5,058,851 5,053,558 5,155,218 5,301,077 5,301,077 173,834
0 0
Liabilities and Shareholders' Equity 0 0
Current liabilities: 0 0
0.20474 Accounts payable 437,353 446,100 7,709 453,809 440,481 444,292 448,888 453,809 453,809 16,456
Other Current Liabilities 710,997 710,997 710,997 710,997 710,997 710,997 710,997 710,997 0
0 0
Total current liabilities: 1,148,350 1,157,097 7,709 1,164,806 1,151,478 1,155,289 1,159,885 1,164,806 1,164,806 16,456
0 0
Long Term Debt (Bonds Payable) 0 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
Long-term deferred revenue 87,046 87,046 87,046 87,046 87,046 87,046 87,046 87,046 0
- -
- -
Shareholders' equity: - -
438,557 in 2009, 426,095 in 2008, 468,858 in 20 44 44 44 44 44 44 44 44 0
Class B common stock, $.0001 par value: 0 0
Additional paid-in capital 11,153,060 11,153,060 11,153,060 11,153,060 11,153,060 11,153,060 11,153,060 11,153,060 0
Accumulated deficit (Retained Earnings) -7,259,069 -7,178,996 47,305 -7,131,690 -7,360,588 -7,369,691 -7,272,629 -7,131,690 -7,131,690 127,379
Accumulated other comprehensive income (loss) -2,195 -2,195 -2,195 -2,195 -2,195 -2,195 -2,195 -2,195 0
Total shareholders' equity 3,891,846 3,971,919 47,305 4,019,225 3,790,327 3,781,224 3,878,286 4,019,225 4,019,225 127,379
Total liabilities and shareholders' equity 5,127,242 5,216,062 85,014 5,301,077 5,058,850 5,053,559 5,155,217 5,301,077 5,301,077 173,835

Quarter Revenue Per QuarRevenue % by Quarter

q1 853,436.00 0.19006
q2 1,039,944.00 0.23160
q3 1,254,197.00 0.27931
q4 1,342,746.00 0.29903

Total Revenue 2 4,490,323

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Broadcom Corporation WACC Analysis

WACC= E/V * R(e) + D/V * R(D) * (1-Tc)

Cost of Equity:
Er=Rf + (Rm-Rf) x β

Risk-free Rate R(f) 3.6%

Market Return R(m): 23.50%

(S&P 500 2009)
Market Risk Premium 19.90%
(Rm-Rf)
Beta Coefficient: 1.31
(yahoo finance)
R(e)= 29.67%

Market Value of Equity

# of Outstanding Shares 512,645,000

Stock Price: $32.31

MVE (E): $16,563,559,950.00

Cost Of Debt (D): 0

According to the most recent 10-k (ending Dec-31-2009) Broadcom has no (0) interest bearing debt.

V: $16,563,559,950.00
Market value of the firm (V)= Market value of debt + Market value of equity

E/V: 1.00

D/V: 0

Tax Rate (34%) 0.34

WACC 29.67%
Ideal Capital Structure

Current Capital Structure:

Values Current Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6

R(e): 29.67% 29.67% 29.67% 29.67% 29.67% 29.67% 29.67%

E/V: 1 0.75 0.50 0.3333 0.25 0.10 0.00

D: 0 0 0 0 0 0 0

D/V: 0 0.25 0.50 0.6667 0.75 0.90 1.00

1-Tc: 0.66 0.66 0.66 0.66 0.66 0.66 0.66

WACC: 29.67% 22.25% 14.84% 9.89% 7.42% 2.97% 0.00%

As we have illustrated the cost of capital for the overall firm is high at 33.55%.
This result is due to the firm not having any interest bearing debt where they are leveraging
the firms equity to raise capital.
All required returns come from the cost of equity where the WACC equals R(e).

Since we know too much debt for a firm may lead to bankruptcy, Broadcom has avoided that risk.
In turn, as mentioned in the 10-k, there may be the need for the company to raise debt in the future
due to both internal and external pressures. As of now Broadcom has opted for the use of cash
and equity to fund investments but may be required to barrow at some point.
Therefore, we believe Broadcom, when necessary, will have to find the ideal structure #3
which technically represents a better balance.

Option 2 use of debt:

Values Current Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6

R(e): 29.67% 29.67% 29.67% 29.67% 29.67% 29.67% 29.67%

E/V: 99.80 0.75 0.50 0.3333 0.25 0.10 0.00

D: 5.57% 5.57% 5.57% 5.57% 5.57% 5.57% 5.57%

D/V: 0.20 0.25 0.50 0.6667 0.75 0.90 1.00

1-Tc: 0.66 0.66 0.66 0.66 0.66 0.66 0.66

WACC: 2961.80% 23.17% 16.67% 12.34% 10.17% 6.28% 3.68%

V: Total market value= $16,563,559,950 + $30,000,000 = $16,593,559,950

E: $16,563,559,950
D: 5.57% per Valubond 20 yr AA
Raising Capital Funds

Cost of Investment for project: $30,000,000

Ideal capital structure: If Broadcom were to float an offering it would be best to use 100% debt as
listed in our option #2
Equity 0
Amount $0
Stock Price: 32.31
#of Shares Issued 0

Debt 1.00
Amount $30,000,000
#Bonds Issued: 30,000

Indenture Explaination
# of Bonds Issued: 30,000 Bonds Issued 30,000
Amount of Issue: $30,000,000 The company has issued $30,000,00 worth of bonds.
Date of issue: 6/1/2010 The bonds will be sold on 6/1/2010 and will mature on
Maturity: 6/1/2030 6/1/2030. Interest is payable annually on June 1 of each
Face value: $1,000 year to the person in whose name the bond is registered
Coupon rate: 5.57% at close of business on May 15.
Annual coupon: $55.70 Each bondholder will receive $55.70 per bond per year. (5.57% of face value)
Offer price: $995.43
Coupon payment dates: 1-Jun Bonds not secured by specific assets.
Security: None
Sinking fund: None At any time/ do not have a "deferred call"
Call provision: The bonds have a "make-whole" call feature.
Call price: Treasury rate Plus 0.15%
Rating: S&P AA The bonds are in the top grade of investment.
Moody's A Negative Covenants include:
* The firm cannot pledge any assets to other lenders
* The firm cannot sell or lease any major assets
without approval of lender
Positive Covenants include:
*The company must periodically furnish audited
financial statements to lender.
* The firm must maintain any collateral or security in
good condition.
per year. (5.57% of face value)
Annual Cost Calculator
Broadcom

2010 %

Sales $ 45,585,000 100.00%

Cost/ Goods Sold (COGS) 17,000,000 37.29%
Gross Profit $ 28,585,000 62.71%

Operating Expenses
Salary (Office & Overhead) $ 3,800,000 8.34% 100 Number Employees
Payroll (Taxes etc.) 380,000 0.83% 0.10 Tax Rate
Outside Services 33,750 0.07% 25 Number Contractors
Supplies (Office Operation) 37,000 0.08%
Repairs/ Maintenance 113,000 0.25%
Advertising 325,000 0.71%
Vehicle, Delivery and Travel 225,010 0.49%
Accounting and Legal 127,500 0.28%
Building Lease 956,231 2.10%
Telephone/Internet/IT Service 275,000 0.60%
Utilities 79,000 0.17%
Insurance 1,254,891 2.75% 34 Percent
Taxes 809,908 1.78% 0.0283 Annual Rate/Monthly
Transaction Fees (POS) 345,000 0.76%
Depreciation 1,258,974 2.76%
Litigation 2,963,025 6.50% 0.07 Percent
Professional Services 376,000 0.82%
Equipment Lease 1,003,645 2.20%
Armoured Car Contracts 475,356 1.04%
Service Continuation (RMA) 758,612 1.66%
Vehicle Lease 431,520 0.95% time (1 yr) Total Investors Dividends Paid Out ea Investor
Consulting Services 251,000 0.55% 1 0 $10,000
Total Expenses $ 16,279,422 35.71% 0.75 0 $7,500.00
0.5 0 $5,000
0.25 0 $1,875

Net Profit Before Tax 12,305,578

Income Taxes (13%) 1,599,725
Net Profit After Tax 10,705,853
Owner Draw/ Dividends 0
Adj. to Retained Earnings $ 10,705,853

More Demand Than Supply - All Units Sold = No Depreciation

 Base Price Discounted Price
Sale Price $ 85.00
Initial markup 100%
List Price $ 170.00

Units Request Order 200,000 200,000

Cash Discount 15% Cash Credit Period 15/10 NET 30

Savings per base unit $ 25.50

Total Price $ 144.50

Lump sum total $ 34,000,000 $ 28,900,000

Tax 34% Tax Rate 0.34

Shipping and handling $ 25,000 $ 25,000

Total $ 45,585,000 $ 38,751,000

Total Savings $ 6,834,000 Unearned Discount $ 6,834,000

Shipping & Handling per Units 1 $ 13.99 Minimum Order

10 $ 32.99
100 $ 189.99
1000 $ 643.99
10000 $ 1,250.00 Maximum Order
Pricing Structure Base Price
If Payment In Full Within 30 Days $ 38,751,000 Unit Forecast 200,000
If Payment In Full Within 60 Days $ 45,585,000 Sales price $ 34,000,000
If Payment Greater Than 60 Days $ 3,190,950
7%
Unearned Discount $ 6,834,000 Cash Discount 15%

Tax $ 15,498,900

Total Units Ordered 200,000

Total units paid Total Unit Price per Order $ 45,585,000
100,000 Percent of Loss (Units) 0.50
Total Loss $ 22,792,500
Total Gross Income $ 22,792,500
Loss on Discount $ 6,834,000
Net Income $ 15,958,500

Unit Forecast 1,000,000 Annual

Sales price $170.00 Markup Price

Projected Revenue $170,000,000.00

Samsung-United States

Termination Costs

Cost Items: Percent From Operating Expenses

Salary (Office & Overhead) 316,770.87 0.0834
Payroll (Taxes etc.) 3,167.71 0.0083
Outside Services 24.99 0.0007
Supplies (Office Operation) 30.03 0.0008
Repairs/ Maintenance 280.11 0.0025
Advertising 2,317.10 0.0071
Vehicle, Delivery and Travel 1,110.66 0.0049
Accounting and Legal 356.61 0.0028
Building Lease 20,058.74 0.0210
Telephone/Internet/IT Service 1,658.99 0.0060
Utilities 136.91 0.0017
Insurance 34,545.39 0.0275
Taxes 14,389.63 0.0178
Depreciation 34,770.55 0.0276
Parts:
Depreciation 34,770.55 0.0276
Assests:
Unearned Discount 6,834,000.00 0.1500
Equipment Lease 22,097.25 0.0220
One-time Costs:
Transaction Fees (POS) 2,611.06 0.0076
Professional Services 3,101.37 0.0082

Third Party Contracts:

Vehicle Lease 4,084.89 0.0095
Armoured Car Contracts 4,956.97 0.0104
Litigation 192,596.63 0.0650
Consulting Services 1,382.06 0.0055
Wind Down Services:
Service Continuation (RMA) 12,624.60 0.02
Professional Services 273,801.00
Consulting to New Supplier 102,549.00

Risk @ 20% $ 22,792,500

Grand Total of Cost $ 30,710,694