BROADCOM CORPORATION

Unaudited Schedule of Selected GAAP to Non-GAAP Adjustments

(In millions)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

2014

2014

2013

2014

2013

Product revenue

$

2,041

$

1,984

$

2,047

$

4,025

$

4,009

GAAP cost of product revenue

1,005

1,004

1,030

2,009

2,018

GAAP product gross profit

$

1,036

$

980

$

1,017

$

2,016

$

1,991

GAAP product gross margin

50.8

%

49.4

%

49.7

%

50.1

%

49.7

%

GAAP cost of product revenue

$

1,005

$

1,004

$

1,030

$

2,009

$

2,018

Adjustments:

Stock-based compensation and related payroll taxes

(6)

(6)

(6)

(12)

(13)

Amortization of purchased intangible assets

(47)

(50)

(44)

(97)

(87)

Inventory charges related to the exit of the cellular baseband business

(34)

—

—

(34)

(1)

Non-GAAP cost of product revenue

$

918

$

948

$

980

$

1,866

$

1,917

Product revenue

$

2,041

$

1,984

$

2,047

$

4,025

$

4,009

Non-GAAP cost of product revenue

918

948

980

1,866

1,917

Non-GAAP product gross profit

$

1,123

$

1,036

$

1,067

$

2,159

$

2,092

Non-GAAP product gross margin

55.0

%

52.2

%

52.1

%

53.6

%

52.2

%

GAAP research and development and selling, general and administrative expense

$

816

$

821

$

793

$

1,637

$

1,587

Adjustments:

Stock-based compensation and related payroll taxes

(110)

(115)

(131)

(225)

(266)

Non-GAAP research and development and selling, general and administrative expense

$

706

$

706

$

662

$

1,412

$

1,321