AVGO · 10-Q · 2026Q2 · Full report
Regulatory Change - IRA Excise Tax
Broadcom Inc. · 2026-06-09 · Importance 37 · Surprise 60 · In source text
Other income for the two fiscal quarters ended May 3, 2026 included a $315 million gain from the reversal of excise tax charges related to Broadcom's acquisition of VMware. This gain resulted from final Inflation Reduction Act of 2022 regulations that exempted purchases of common stock on acquisitions from excise tax. The company records the regulatory change as a non-operating benefit in other income, net for the period.
Key facts
- For the two fiscal quarters ended May 3, 2026, other income, net included a $315 million gain from the reversal of excise tax charges on our acquisition of VMware, as the final IRA regulations exempted purchases of common stock on acquisitions from excise tax. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | realized | +1.4% | For the two fiscal quarters ended May 3, 2026, other income, net included a $315 million gain from the reversal of excise tax charges on… |