Marvell Technology Group Ltd.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

Three Months Ended

Nine Months Ended

November 2,
2019

November 3,
2018

November 2,
2019

November 3,
2018

Cash flows from operating activities:

Net income (loss)

$

(82,501)

$

(53,767)

$

(188,282)

$

81,604

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

40,508

39,259

126,747

86,356

Share-based compensation

66,762

50,240

189,036

133,484

Amortization and write off of acquired intangible assets

92,760

78,691

253,467

104,630

Amortization of inventory fair value adjustment associated with acquisition

3,316

102,842

3,316

125,775

Amortization of deferred debt issuance costs and debt discounts

1,181

2,217

4,040

9,290

Restructuring related impairment charges

6,146

9,888

16,243

11,881

Other expense, net

2,574

1,771

4,590

5,402

Deferred income taxes

(10,275)

(6,261)

(7,901)

(27,675)

Changes in assets and liabilities:

Accounts receivable

(32,002)

(10,948)

8,374

(59,697)

Inventories

(39,276)

(5,007)

(30,602)

1,859

Prepaid expenses and other assets

(3,046)

7,630

(11,039)

(11,874)

Accounts payable

8,304

22,531

30,801

22,260

Accrued liabilities and other non-current liabilities

(26,141)

39,691

(106,258)

27,730

Accrued employee compensation

37,193

20,617

11,927

(20,922)

Net cash provided by operating activities

65,503

299,394

304,459

490,103

Cash flows from investing activities:

Purchases of available-for-sale securities

—

—

—

(14,956)

Sales of available-for-sale securities

18,832

—

18,832

623,896

Maturities of available-for-sale securities

—

—

—

187,985

Purchases of time deposits

—

—

—

(25,000)

Maturities of time deposits

—

25,000

—

175,000

Purchases of technology licenses

(414)

(9,918)

(1,936)

(11,181)

Purchases of property and equipment

(20,742)

(12,646)

(62,935)

(47,035)

Cash payment for acquisition, net of cash and cash equivalents acquired

(477,579)

—

(477,579)

(2,649,465)

Other, net

(1,404)

(4,007)

(1,793)

(7,534)

Net cash used in investing activities

(481,307)

(1,571)

(525,411)

(1,768,290)

Cash flows from financing activities:

Repurchases of common stock

—

(53,969)

(64,272)

(53,969)

Proceeds from employee stock plans

21,795

16,192

103,109

60,772

Tax withholding paid on behalf of employees for net share settlement

(19,220)

(8,915)

(80,862)

(45,691)

Dividend payments to shareholders

(40,140)

(39,411)

(119,496)

(108,592)

Payments on technology license obligations

(28,889)

(23,003)

(57,213)

(52,481)

Proceeds from issuance of debt

350,000

—

350,000

1,892,605

Principal payments of debt

—

(75,000)

(50,000)

(681,128)

Payment of equity and debt financing costs

—

(2,115)

—

(11,550)

Other, net

(2,869)

—

(4,355)

—

Net cash provided by (used in) in financing activities

280,677

(186,221)

76,911

999,966

Net increase (decrease) in cash and cash equivalents

(135,127)

111,602

(144,041)

(278,221)

Cash and cash equivalents at beginning of period

573,496

498,659

582,410

888,482

Cash and cash equivalents at end of period

$

438,369

$

610,261

$

438,369

$

610,261