Marvell Technology Group Ltd.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

Three Months Ended

Nine Months Ended

November 3,
2018

October 28,
 2017

November 3,
2018

October 28,
 2017

Cash flows from operating activities:

Net income (loss)

$

(53,767)

$

200,188

$

81,604

$

472,068

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

Depreciation and amortization

39,259

21,383

86,356

62,569

Share-based compensation

50,240

18,873

133,484

65,312

Amortization of acquired intangible assets

78,691

1,076

104,630

3,212

Amortization of inventory fair value adjustment associated with acquisition of Cavium

102,842

—

125,775

—

Amortization of deferred debt issuance costs and debt discounts

2,217

—

9,290

—

Restructuring related impairment charges (gain)

9,888

44

11,881

(402)

Gain from investments in privately-held companies

—

(1,751)

(1,100)

(2,501)

Amortization (accretion) of premium/discount on available-for-sale securities

—

(200)

624

603

Other non-cash expense (income), net

—

2,755

4,227

1,331

Deferred income taxes

(6,261)

7

(27,675)

2,797

Loss (gain) on sale of property and equipment

179

(190)

59

(473)

Gain on sale of discontinued operations

—

(46,219)

—

(88,406)

Loss (gain) on sale of business

1,592

—

1,592

(5,254)

Changes in assets and liabilities:

Accounts receivable

(10,948)

5,583

(59,697)

(30,730)

Inventories

(5,007)

(1,327)

1,859

(16,039)

Prepaid expenses and other assets

7,630

5,268

(11,874)

13,122

Accounts payable

22,531

16,119

22,260

20,087

Accrued liabilities and other non-current liabilities

40,255

(7,046)

29,023

(40,462)

Accrued employee compensation

20,617

(2,237)

(20,922)

(10,612)

Deferred income

(564)

3,865

(1,293)

5,149

Net cash provided by operating activities

299,394

216,191

490,103

451,371

Cash flows from investing activities:

Purchases of available-for-sale securities

—

(296,659)

(14,956)

(672,887)

Sales of available-for-sale securities

—

167,451

623,896

284,151

Maturities of available-for-sale securities

—

136,090

187,985

305,702

Return of investment from privately-held companies

—

3,701

—

6,089

Purchases of time deposits

—

(75,000)

(25,000)

(225,000)

Maturities of time deposits

25,000

75,000

175,000

225,000

Purchases of technology licenses

(9,918)

(3,555)

(11,181)

(5,256)

Purchases of property and equipment

(12,646)

(10,613)

(47,035)

(25,156)

Proceeds from sales of property and equipment

595

249

818

1,988

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

—

—

(2,649,465)

—

Net proceeds from sale of discontinued operations

—

93,735

—

165,940

Net proceeds (payments) from sale of business

(4,602)

2,402

(3,352)

2,402

Other

—

—

(5,000)

—

Net cash provided by (used in) investing activities

(1,571)

92,801

(1,768,290)

62,973

Cash flows from financing activities:

Repurchases of common stock

(53,969)

(140,017)

(53,969)

(527,574)

Proceeds from employee stock plans

16,192

39,614

60,772

137,424

Tax withholding paid on behalf of employees for net share settlement

(8,915)

(1,120)

(45,691)

(25,934)

Dividend payments to shareholders

(39,411)

(29,470)

(108,592)

(89,556)

Payments on technology license obligations

(23,003)

(8,401)

(52,481)

(22,697)

Proceeds from issuance of debt

—

—

1,892,605

—

Principal payments of debt

(75,000)

—

(681,128)

—

Payment of equity and debt financing costs

(2,115)

—

(11,550)

—

Net cash provided by (used in) financing activities

(186,221)

(139,394)

999,966

(528,337)

Net increase (decrease) in cash and cash equivalents

111,602

169,598

(278,221)

(13,993)

Cash and cash equivalents at beginning of period

498,659

630,501

888,482

814,092

Cash and cash equivalents at end of period

$

610,261

$

800,099

$

610,261

$

800,099