Marvell Technology Group Ltd.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

Fiscal 2016

Fiscal 2015

Three Months Ended 

Three Months Ended

Year Ended

January 30,

October 31,

August 1,

January 31,

November 1,

August 2,

January 30,

January 31,

2016 (a)

2015 (a) 

2015 (a)

2015

2014

2014

2016 (a)

2015

(Preliminary)

(Preliminary)

Cash flows from operating activities:

Net income (loss)

$        4,200

$      (57,750)

$      (771,940)

$      81,693

$     115,304

$    138,870

$      (811,400)

$    435,346

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

Depreciation and amortization

22,800

25,565

25,191

26,464

26,515

26,263

100,176

106,248

Share-based compensation

32,419

31,465

36,674

37,963

34,294

35,020

133,779

137,246

Amortization and write-off of acquired intangible assets

2,947

3,635

3,053

3,585

3,789

3,789

12,688

18,337

Non-cash restructuring and other related charges

289

14,270

900

3,230

-

-

16,032

17

Other non-cash expense (income), net

7,885

4,205

2,283

(1,699)

(6,034)

(7,596)

13,811

(10,646)

Excess tax benefits from share-based compensation

1

(2)

(7)

(67)

(2)

(32)

(26)

(145)

Changes in assets and liabilities:

Accounts receivable

57,628

36,793

(23,907)

25,719

40,214

33,419

97,655

34,165

Inventories

69,544

39,457

12,903

48,247

37,506

(43,194)

90,586

39,454

Prepaid expenses and other assets

(35,245)

6,804

9,358

4,087

18,536

(24,996)

(17,113)

(7,125)

Accounts payable

(62,163)

(55,693)

(5,167)

(60,808)

(70,749)

2,558

(105,898)

(43,871)

Accrued liabilities and other non-current liabilities

(27,218)

3,958

19,634

(12,189)

(24,997)

10,096

(15,202)

(30,024)

Carnegie Mellon University accrued litigation settlement

1,285

1,158

733,557

-

-

-

736,000

-

Accrued employee compensation

(18,702)

14,295

(14,507)

1,910

19,101

(7,451)

(33,338)

43,561

Deferred income

(2,364)

(1,566)

(1,441)

(2,714)

(12,053)

(9,792)

(12,398)

6,373

Net cash provided by operating activities

53,306

66,594

26,584

155,421

181,424

156,954

205,352

728,936

Cash flows from investing activities:

Purchases of available-for-sale securities

(133,215)

(356,465)

(173,465)

(344,023)

(448,526)

(153,881)

(1,056,045)

(1,128,319)

Sales and maturities of available-for-sale securities

477,301

356,409

222,295

248,215

205,685

190,099

1,303,500

826,310

Distribution from (investments in) privately-held companies

(119)

(130)

208

-

(260)

-

(41)

(701)

Proceeds from sale of an investment in a privately-held company

-

-

-

-

13,220

-

-

13,220

Purchases of technology licenses

(1,579)

(980)

(2,071)

(1,910)

(5,105)

(1,298)

(8,236)

(16,424)

Purchases of property and equipment

(3,894)

(9,041)

(16,986)

(14,415)

(16,661)

(15,823)

(37,255)

(63,030)

Purchase of equipment previously leased

-

-

-

-

-

-

(10,240)

-

Net proceeds from sale of equipment held for sale

-

10,007

-

-

-

-

10,007

-

Net cash provided by (used in) investing activities

338,494

(200)

29,981

(112,133)

(251,647)

19,097

201,690

(368,944)

Cash flows from financing activities:

Repurchase of common stock (b)

-

(65,291)

(175,311)

(21,188)

(43,774)

-

(260,875)

(64,962)

Proceeds from employee stock plans

21,369

2,174

44,161

41,049

2,934

49,282

80,717

112,357

Minimum tax withholding paid on behalf of employees  for net share settlement

(482)

(869)

(697)

(908)

(663)

(637)

(24,358)

(26,494)

Dividend payments to shareholders

(30,447)

(30,270)

(31,194)

(30,942)

(30,867)

(30,820)

(122,821)

(122,801)

Payments on technology license obligations

(1,112)

(2,617)

(4,732)

(4,382)

(5,951)

(2,677)

(12,528)

(13,010)

Excess tax benefits from share-based compensation

(1)

2

7

67

2

32

26

145

Net cash provided by (used in) financing activities

(10,673)

(96,871)

(167,766)

(16,304)

(78,319)

15,180

(339,839)

(114,765)

Net increase (decrease) in cash and cash equivalents

381,127

(30,477)

(111,201)

26,984

(148,542)

191,231

67,203

245,227

Cash and cash equivalents at beginning of period

897,053

927,530

1,038,731

1,183,993

1,332,535

1,141,304

1,210,977

965,750

Cash and cash equivalents at end of period

$ 1,278,180

$   897,053

$  927,530

$ 1,210,977

$  1,183,993

$ 1,332,535

$    1,278,180

$ 1,210,977

(a) 

The condensed consolidated statement of cash flows for each of the three months ended January 30, 2016, October 31, 2015 and August 1, 2015 are preliminary, as well as the twelve months ended January 30, 2016, and therefore, subject to adjustments in connection with subsequent events arising through the date of the Company's filing of its Annual Report on Form 10-K for the corresponding period. The filing of the Form 10-K will be completed as soon as practicable after the completion of the audit of the Company's fiscal 2016 financial statements by Deloitte & Touche LLP, its newly appointed independent registered public accounting firm.

(b) 

Marvell records all repurchases as well as investment purchases and sales, based on trade date in accordance with U.S. GAAP.