Broadcom Inc

Previous wording

We are a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. We develop semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products. We have a history of innovation in the semiconductor industry and offer thousands of products that are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Our infrastructure software solutions enable customers to plan, develop, deliver, automate, manage and secure applications across mainframe, distributed, edge, mobile and hybrid cloud platforms. Our portfolio of industry-leading infrastructure and security software is designed to modernize, optimize, and secure the most complex hybrid environments, enabling scalability, agility, automation, insights, resiliency and security. 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.

Current wording

We are a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. We develop semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products. We have a history of innovation in the semiconductor industry and offer thousands of products that are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Our infrastructure software solutions enable customers to plan, develop, deliver, automate, manage and secure applications across mainframe, distributed, edge, mobile, and private and hybrid cloud platforms. Our portfolio of industry-leading infrastructure and security software is designed to modernize, optimize, and secure the most complex private and hybrid cloud environments, enabling scalability, agility, automation, insights, resiliency and security. 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.

Previous wording

We have two reportable segments: semiconductor solutions and infrastructure software. Our semiconductor solutions segment includes all of our product lines and IP licensing. Our infrastructure software segment includes our application development and delivery, application networking and security, mainframe, distributed, software-defined edge, hybrid cloud and cyber security solutions, and our FC SAN business.

Current wording

We have two reportable segments: semiconductor solutions and infrastructure software. Our semiconductor solutions segment includes all of our product lines and IP licensing. Our infrastructure software segment includes our application development and delivery, application networking and security, mainframe, distributed, software-defined edge, private and hybrid cloud and cyber security solutions, and our FC SAN business.

Previous wording

Our fiscal quarter ended February 4, 2024 contained 14 weeks compared to 13 weeks in the fiscal quarter ended January 29, 2023. The additional week resulted in higher net revenue, gross margin dollars, research and development expense, and selling general and administrative expense for the fiscal quarter ended February 4, 2024, compared to the corresponding prior year fiscal period.

Current wording

Our fiscal year ending November 3, 2024 (“fiscal year 2024”), is a 53-week fiscal year, with our first fiscal quarter ended February 4, 2024 containing 14 weeks compared to 13 weeks in the prior year fiscal period. The additional week resulted in higher net revenue, gross margin dollars, research and development expense, and selling general and administrative expense in the first fiscal quarter and first two fiscal quarters of fiscal year 2024, compared to the corresponding prior year fiscal periods.

Previous wording

•We generated $4,815 million of cash from operations.

Current wording

•We generated $4,580 million of cash from operations.

Previous wording

On November 22, 2023, we acquired VMware in a cash-and-stock transaction (the “VMware Merger”). The VMware stockholders received approximately $30,788 million in cash and 54.4 million shares of Broadcom common stock with a fair value of $53,398 million. In addition, we assumed all outstanding VMware restricted stock unit (“RSU”) awards and performance stock unit awards held by continuing employees. The assumed awards were converted into RSU awards for shares of Broadcom common stock. All outstanding RSU awards held by non-employee directors and in-the-money VMware stock options were accelerated and converted into the right to receive cash and shares of Broadcom common stock, in equal parts.

Current wording

On November 22, 2023, we acquired VMware, Inc. (“VMware”) in a cash-and-stock transaction (the “VMware Merger”). The VMware stockholders received approximately $30,788 million in cash and 54.4 million shares of Broadcom common stock with a fair value of $53,398 million. In addition, we assumed all outstanding VMware restricted stock unit (“RSU”) awards and performance stock unit awards held by continuing employees. The assumed awards were converted into RSU awards for shares of Broadcom common stock. All outstanding RSU awards held by non-employee directors and in-the-money VMware stock options were accelerated and converted into the right to receive cash and shares of Broadcom common stock, in equal parts.

Previous wording

There were no significant changes in our critical accounting estimates during the fiscal quarter ended February 4, 2024 compared to those previously disclosed in “Critical Accounting Estimates” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the 2023 Annual Report on Form 10-K.

Current wording

There were no significant changes in our critical accounting estimates during the two fiscal quarters ended May 5, 2024 compared to those previously disclosed in “Critical Accounting Estimates” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the 2023 Annual Report on Form 10-K.

Previous wording

Fiscal Quarter Ended February 4, 2024 Compared to Fiscal Quarter Ended January 29, 2023

Current wording

Fiscal Quarter and Two Fiscal Quarters Ended May 5, 2024 Compared to Fiscal Quarter and Two Fiscal Quarters Ended April 30, 2023

Previous wording

A relatively small number of customers account for a significant portion of our net revenue. Direct sales to WT Microelectronics Co., Ltd., a distributor, accounted for 27% and 22% of our net revenue for the fiscal quarters ended February 4, 2024 and January 29, 2023, respectively.

Current wording

A relatively small number of customers account for a significant portion of our net revenue. Direct sales to one customer, which is a distributor, accounted for 29% and 28% of our net revenue for the fiscal quarter and two fiscal quarters ended May 5, 2024, respectively, and 17% and 19% of our net revenue for the fiscal quarter and two fiscal quarters ended April 30, 2023, respectively.

Previous wording

We believe aggregate sales to our top five end customers, through all channels, accounted for approximately 40% and 35% of our net revenue for the fiscal quarters ended February 4, 2024 and January 29, 2023, respectively. We believe aggregate sales to Apple Inc., through all channels, accounted for approximately 17% and 20% of our net revenue for the fiscal quarters ended February 4, 2024 and January 29, 2023, respectively. We expect to continue to experience significant customer concentration in future periods. The loss of, or significant decrease in demand from, any of our top five end customers could have a material adverse effect on our business, results of operations and financial condition.

Current wording

We believe aggregate sales to our top five end customers, through all channels, accounted for approximately 40% of our net revenue for each of the fiscal quarter and two fiscal quarters ended May 5, 2024, and approximately 35% of our net revenue for each of the fiscal quarter and two fiscal quarters ended April 30, 2023. We expect to continue to experience significant customer concentration in future periods. The loss of, or significant decrease in demand from, any of our top five end customers could have a material adverse effect on our business, results of operations and financial condition.

Previous wording

Net revenue from oursemiconductor solutions segment increased in the fiscal quarter ended February 4, 2024 compared to the prior year fiscal period due to strong product demand for networking products, partially offset by lower demand for our server storage and broadband products. Net revenue from our infrastructure software segment increasedin the fiscal quarter ended February 4, 2024 compared to the prior year fiscal period primarily due to contributions from VMware.

Current wording

Net revenue from oursemiconductor solutions segment increased in the fiscal quarter andtwo fiscal quarters ended May 5, 2024 compared to the prior year fiscal periods due to strong product demand for our networking products, including products in AI networking, partially offset by lower demand for our broadband and server storage products. Net revenue from our infrastructure software segment increasedin the fiscal quarter andtwo fiscal quarters ended May 5, 2024 compared to the prior year fiscal periods primarily due to contributions from VMware.

Previous wording

Gross margin was $7,375 million for the fiscal quarter ended February 4, 2024 compared to $6,004 million for the fiscal quarter ended January 29, 2023. The $1,371 million increase was primarily due to contributions from VMware, partially offset by higher amortization of acquisition-related intangible assets from the VMware Merger.

Current wording

Gross margin was $7,776 million for the fiscal quarter ended May 5, 2024 compared to $6,115 million for the fiscal quarter ended April 30, 2023, and $15,151 million for the two fiscal quarters ended May 5, 2024 compared to $12,119 million for the two fiscal quarters ended April 30, 2023. The increases were primarily due to contributions from VMware, partially offset by higher amortization of acquisition-related intangible assets from the VMware Merger.

Previous wording

As a percentage of net revenue, gross margin was 62% and 67% of net revenue for the fiscal quarters ended February 4, 2024 and January 29, 2023, respectively. The 5% decrease was primarily due to higher amortization of acquisition-related intangible assets from the VMware Merger.

Current wording

As a percentage of net revenue, gross margin was 62% of net revenue for each of the fiscal quarter and two fiscal quarters ended May 5, 2024, and 70% and 69% for the fiscal quarter and two fiscal quarters ended April 30, 2023, respectively. The decreases were primarily due to higher amortization of acquisition-related intangible assets from the VMware Merger. In addition, gross margin contributions from our infrastructure software segment were partially offset by less favorable margin within the semiconductor solutions segment driven by product mix.

Previous wording

Research and development expense increased $1,113 million, or 93%, for the fiscal quarter ended February 4, 2024, compared to the prior year fiscal period. The increase was primarily due to higher stock-based compensation expense as a result of RSUs assumed in connection with the VMware Merger and annual employee equity awards granted in March 2023 at higher grant-date fair values, as well as higher compensation due to an increase in headcount from the VMware Merger.

Current wording

Research and development expense increased $1,103 million, or 84%, and $2,216 million, or 88%, for the fiscal quarter and two fiscal quarters ended May 5, 2024, respectively, compared to the prior year fiscal periods. The increases were primarily due to higher compensation, including higher stock-based compensation, as a result of an increase in headcount from the VMware Merger. The increases in stock-based compensation expense were also due toannual employee equity awards granted at higher grant-date fair values.

Previous wording

Selling, general and administrative expense increased $1,224 million, or 352% for the fiscal quarter ended February 4, 2024, compared to the prior year fiscal period. The increase was primarily due to higher stock-based compensation expense as a result of RSUs assumed in connection with the VMware Merger, higher acquisition-related costs, as well as higher compensation due to an increase in headcount from the VMware Merger.

Current wording

Selling, general and administrative expense increased $839 million, or 192%, and $2,063 million, or 262%, for the fiscal quarter and two fiscal quarters ended May 5, 2024, respectively, compared to the prior year fiscal periods. The increases were primarily due to higher compensation, including higher stock-based compensation, as a result of an increase in headcount from the VMware Merger. The increases in stock-based compensation expense were also due toannual employee equity awards granted at higher grant-date fair values.

Previous wording

Amortization of acquisition-related intangible assets recognized in operating expenses increased $444 million, or 128%, for the fiscal quarter ended February 4, 2024 compared to the prior year fiscal period primarily due to higher amortization of customer-related intangible assets from the VMware Merger.

Current wording

Amortization of acquisition-related intangible assets recognized in operating expenses increased $479 million, or 138%, and $923 million, or 133%, for the fiscal quarter and two fiscal quarters ended May 5, 2024, respectively, compared to the prior year fiscal periods primarily due to higher amortization of customer-related intangible assets from the VMware Merger.

Previous wording

Restructuring and other charges recognized in operating expenses was $620 million for the fiscal quarter ended February 4, 2024 primarily due to employee termination costs associated with the VMware Merger. We expect to incur additional restructuring and other charges in future periods as a result of the VMware Merger.

Current wording

Restructuring and other charges recognized in operating expenses were $292 million and $912 million for the fiscal quarter and two fiscal quarters ended May 5, 2024, respectively, primarily due to employee termination costs associated with the VMware Merger. We expect to incur additional restructuring and other charges in future periods as a result of the VMware Merger.

Previous wording

Total stock-based compensation expense was $1,572 million and $391 million for the fiscal quarters ended February 4, 2024 and January 29, 2023, respectively. The increase was primarily due to equity awards assumed in connection with the VMware Merger and annual employee equity awards granted in March 2023 at higher grant-date fair values. Stock-based compensation expense for the fiscal quarter ended February 4, 2024 also included a one-time impact from aligning the vesting dates of certain assumed awards with our RSU vesting dates, as well as accelerated vesting of certain assumed equity awards held by employees terminated in connection with the VMware Merger.

Current wording

Total stock-based compensation expense was $1,403 million and $2,975 million for the fiscal quarter and two fiscal quarters ended May 5, 2024, respectively, and $513 million and $904 million for the fiscal quarter and two fiscal quarters ended April 30, 2023, respectively. The increases were primarily due to equity awards assumed and granted in connection with the VMware Merger andannual employee equity awards granted at higher grant-date fair values. Stock-based compensation expense for the two fiscal quarters ended May 5, 2024 also included a one-time impact from aligning the vesting dates of certain assumed awards with our RSU vesting dates, as well as accelerated vesting of certain assumed awards held by employees terminated in connection with the VMware Merger.

Previous wording

Operating income from our semiconductor solutions segment was relatively flat for the quarter ended February 4, 2024 compared to the prior year fiscal period. Higher compensation expense as a result of an additional week in the current year fiscal quarter and lower gross margins driven by product mix were offset by higher revenue from networking products. Higher operating income from our infrastructure software segmentin the fiscal quarter ended February 4, 2024 compared to the prior year fiscal period was primarily due to contributions from VMware.

Current wording

Operating income from our semiconductor solutions segment was relatively flat for the fiscal quarter ended May 5, 2024 compared to the prior year fiscal period. Higher engineering project costs and lower gross margins driven by product mix were partially offset by higher revenue from networking products. Operating income from our semiconductor solutions segment was also relatively flat for the two fiscal quarters ended May 5, 2024 compared to the prior year fiscal period. Higher compensation expense as a result of an additional week in the current year fiscal quarter and lower gross margins driven by product mix were offset by higher revenue from networking products. Higher operating income from our infrastructure software segmentin the fiscal quarter andtwo fiscal quarters ended May 5, 2024 compared to the prior year fiscal periods was primarily due to contributions from VMware.

Previous wording

Unallocated expenses include amortization of acquisition-related intangible assets; stock-based compensation expense; restructuring and other charges; acquisition-related costs; and other costs that are not used in evaluating the results of, or in allocating resources to, our segments. Unallocated expenses increased 258% for the fiscal quarter ended February 4, 2024 compared to the prior year fiscal period primarily due to higher amortization of acquisition-related intangible assets, stock-based compensation expense, and restructuring and other charges. These increases were primarily due to the VMware Merger. The increase in stock based compensation expense was also due to annual employee equity awards granted in March 2023 at higher grant-date fair values.

Current wording

Unallocated expenses include amortization of acquisition-related intangible assets; stock-based compensation expense; restructuring and other charges; acquisition-related costs; and other costs that are not used in evaluating the results of, or in allocating resources to, our segments. Unallocated expenses increased 198% and 227% for the fiscal quarter and two fiscal quarters ended May 5, 2024, respectively, compared to the prior year fiscal periods primarily due to higher amortization of acquisition-related intangible assets, stock-based compensation expense and restructuring and other charges. These increases were primarily due to the VMware Merger. The increase in stock-based compensation expense was also due toannual employee equity awards granted at higher grant-date fair values.

Previous wording

Interest expense. Interest expense was $926 million and $406 million for the fiscal quarters ended February 4, 2024 and January 29, 2023, respectively. The increase was primarily due to interest on debt incurred for the VMware Merger.

Current wording

Interest expense. Interest expense was $1,047 million and $1,973 million for the fiscal quarter and two fiscal quarters ended May 5, 2024, respectively, and $405 million and $811 million for the fiscal quarter and two fiscal quarters ended April 30, 2023, respectively. The increases were primarily due to interest on debt incurred for the VMware Merger.

Previous wording

Other income, net. Other income, net includes interest income, gains or losses on investments, foreign currency remeasurement and other miscellaneous items. Other income, net, was $185 million and $143 million for the fiscal quarters ended February 4, 2024 and January 29, 2023, respectively. The increase was primarily due to higher interest income as a result of higher interest rates on a higher invested balance.

Current wording

Other income, net. Other income, net includes interest income, gains or losses on investments, foreign currency remeasurement and other miscellaneous items. Other income, net, was $87 million and $113 million for the fiscal quarters ended May 5, 2024 and April 30, 2023, respectively. The decrease was primarily due to lower interest income as a result of a lower invested balance, partially offset by higher interest rates. Other income, net, was $272 million and $256 million for the two fiscal quarters ended May 5, 2024 and April 30, 2023, respectively. The increase was primarily due to higher interest income as a result of higher interest rates, partially offset by a lower invested balance.

Previous wording

Our primary sources of liquidity as of February 4, 2024 consisted of: (i) $11,864 million in cash and cash equivalents, (ii) cash we expect to generate from operations and (iii) available capacity under our $7.5 billion unsecured revolving credit facility. In addition, we may also generate cash from the sale of assets and debt or equity financings from time to time. In February 2024, we signed a definitive agreement to sell VMware’s end-user computing business for approximately$3.8 billion, before working capital adjustments and estimated selling costs. The sale is expected to close in calendar year 2024, subject to customary closing conditions, including regulatory approvals.

Current wording

Our primary sources of liquidity as of May 5, 2024 consisted of: (i) $9,809 million in cash and cash equivalents, (ii) cash we expect to generate from operations and (iii) available capacity under our $7.5 billion unsecured revolving credit facility. In addition, we may also generate cash from the sale of assets and debt or equity financings from time to time. In February 2024, we signed a definitive agreement to sell VMware’s end-user computing business for approximately$3.8 billion, before working capital adjustments and estimated selling costs. The sale is expected to close in calendar year 2024, subject to customary closing conditions.

Previous wording

Our short-term and long-term liquidity requirements primarily arise from: (i) business acquisitions and investments we may make from time to time, (ii) working capital requirements, (iii) research and development and capital expenditure needs, (iv) cash dividend payments (if and when declared by our Board of Directors), (v) interest and principal payments related to our $78,521 million of outstanding indebtedness and (vi) payment of income taxes. Our ability to fund these requirements will depend, in part, on our future cash flows, which are determined by our future operating performance and, therefore, subject to prevailing global macroeconomic conditions and financial, business and other factors, some of which are beyond our control. We expect capital expenditures to be higher in fiscal year 2024 as compared to fiscal year 2023. Our debt and liquidity needs increased as a result of completing the VMware Merger. We funded the cash portion of the consideration with net proceeds from the $30,390 million 2023 Term Loans, as well as cash on hand. We also assumed $8,250 million of VMware’s outstanding senior unsecured notes. On March 5, 2024, we made a partial repayment of $2.0 billion on our 2023 Term Loans.

Current wording

Our short-term and long-term liquidity requirements primarily arise from: (i) business acquisitions and investments we may make from time to time, (ii) working capital requirements, (iii) research and development and capital expenditure needs, (iv) cash dividend payments (if and when declared by our Board of Directors), (v) interest and principal payments related to our $76,521 million of outstanding indebtedness and (vi) payment of income taxes. Our ability to fund these requirements will depend, in part, on our future cash flows, which are determined by our future operating performance and, therefore, subject to prevailing global macroeconomic conditions and financial, business and other factors, some of which are beyond our control. Our debt and liquidity needs increased in fiscal year 2024 as a result of completing the VMware Merger. We funded the cash portion of the consideration with net proceeds from the issuance of $30,390 million in term loans (the “2023 Term Loans”), as well as cash on hand. We also assumed $8,250 million of VMware’s outstanding senior unsecured notes. During the fiscal quarter ended May 5, 2024, we made a partial repayment of $2.0 billion on our 2023 Term Loans. We also expect capital expenditures to be higher in fiscal year 2024 as compared to fiscal year 2023.

Previous wording

In addition, we may, at any time and from time to time, seek to retire or purchase our outstanding debt through cash tenders and/or exchanges for equity or debt, in open-market purchases, privately negotiated transactions or otherwise. Such tenders, exchanges or purchases, if any, will be upon such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.

Current wording

In addition, we may, at any time and from time to time, seek to retire or purchase our outstanding debt through cash tenders and/or exchanges for equity or debt, in open-market purchases, privately negotiated transactions or otherwise. Such tenders, exchanges or purchases, if any, will be upon such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. We may also make additional prepayments of the 2023 Term Loans. The amounts involved may be material.

Previous wording

On November 22, 2023, we completed the VMware Merger. The following table presents the changes in selected balance sheet captions other than assets acquired and liabilities assumed from the VMware Merger during the fiscal quarter ended February 4, 2024.

Current wording

On November 22, 2023, we completed the VMware Merger. The following table presents the changes in selected balance sheet captions other than assets acquired and liabilities assumed from the VMware Merger during the two fiscal quarters ended May 5, 2024.

Previous wording

•Cash and cash equivalents decreased primarily due to $32,058 million paid for the VMware Merger, $7,176 million of common stock repurchases, $2,435 million of dividend payments and $1,114 million of employee withholding tax payments related to net settled equity awards, offset in part by $29,076 million in net proceeds from borrowings and $4,815 million in net cash provided by operating activities.

Current wording

•Cash and cash equivalents decreased primarily due to $32,058 million paid for the VMware Merger, $7,176 million of common stock repurchases, $4,878 million of dividend payments and $2,662 million of employee withholding tax payments related to net settled equity awards, offset in part by $27,076 million in net proceeds from borrowings and $9,395 million in net cash provided by operating activities.

Previous wording

During the fiscal quarters ended February 4, 2024 and January 29, 2023, we repurchased and retired approximately 7 million and 2 million shares of our common stock for $7,176 million and $1,188 million, respectively. All $20 billion of the authorized amount under our stock repurchase programs was utilized prior to expiration on December 31, 2023.

Current wording

During each of the two fiscal quarters ended May 5, 2024 and April 30, 2023, we repurchased and retired approximately 7 million shares of our common stock for $7,176 million and $3,994 million, respectively. All $20 billion under our previously authorized stock repurchase programs was utilized prior to expiration on December 31, 2023.

Previous wording

During the fiscal quarters ended February 4, 2024 and January 29, 2023, we paid approximately $1,114 million and $333 million, respectively, in employee withholding taxes due upon the vesting of net settled equity awards. We withheld approximately 1 million shares of common stock from employees in connection with such net share settlements during each of the fiscal quarters ended February 4, 2024 and January 29, 2023.

Current wording

During the two fiscal quarters ended May 5, 2024 and April 30, 2023, we paid approximately $2,662 million and $947 million, respectively, in employee withholding taxes due upon the vesting of net settled equity awards. We withheld approximately 2 million shares of common stock from employees in connection with such net share settlements during each of the two fiscal quarters ended May 5, 2024 and April 30, 2023.

Previous wording

Cash flows from operating activities consisted of net income adjusted for certain non-cash and other items and changes in assets and liabilities. The $779 million increase in cash provided by operations during the fiscal quarter ended February 4, 2024 compared to the prior year fiscal period was primarily due to contributions from VMware. The $2,449 million decrease in net income was largely driven by $2,930 million of higher non-cash adjustments including amortization of intangible assets and stock-based compensation.

Current wording

Cash flows from operating activities consisted of net income adjusted for certain non-cash and other items and changes in assets and liabilities. The $857 million increase in cash provided by operations during the two fiscal quarters ended May 5, 2024 compared to the prior year fiscal period was primarily due to contributions from VMware. The $3,809 million decrease in net income was largely driven by $5,427 million of higher non-cash adjustments including amortization of intangible assets and stock-based compensation.

Previous wording

Cash flows from investing activities primarily consisted of cash used for acquisitions, capital expenditures and proceeds and payments related to investments. The $25,374 million increase in cash used in investing activities during the fiscal quarter ended February 4, 2024 compared to the prior year fiscal period was primarily due to $25,416 million cash paid in connection with the VMware Merger, net of cash acquired.

Current wording

Cash flows from investing activities primarily consisted of cash used for acquisitions, capital expenditures and proceeds and payments related to investments. The $25,762 million increase in cash used in investing activities during the two fiscal quarters ended May 5, 2024 compared to the prior year fiscal period was primarily due to $25,976 million cash paid in connection with the VMware Merger and the acquisition of Seagate’s SoC operations, net of cash acquired.

Previous wording

Cash flows from financing activities primarily consisted of proceeds and payments related to our long-term borrowings, stock repurchases, dividend payments and employee withholding tax payments related to net settled equity awards. The $22,039 million increase in cash flows from financing activities during the fiscal quarter ended February 4, 2024 compared to the prior year fiscal period was primarily due to $30,010 million of net proceeds from the 2023 Term Loans, offset in part by a $5,988 million increase in stock repurchases, a $781 million increase in employee withholding tax payments related to net settled equity awards, a $674 million increase in payments of debt obligations and a $509 million increase in dividend payments.

Current wording

Cash flows from financing activities primarily consisted of proceeds and payments related to our long-term borrowings, stock repurchases, dividend payments and employee withholding tax payments related to net settled equity awards. The $21,388 million increase in cash flows from financing activities during the two fiscal quarters ended May 5, 2024 compared to the prior year fiscal period was primarily due to $30,010 million of net proceeds from the 2023 Term Loans, partially offset by a $3,182 million increase in stock repurchases, a $2,674 million increase in payments of debt obligations, a $1,715 million increase in employee withholding tax payments related to net settled equity awards and a $1,038 million increase in dividend payments.