Marvell Technology, Inc. | ||||||||||||||||||||
Reconciliations from GAAP to Non-GAAP (Unaudited) | ||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
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| Three Months Ended |
| Nine Months Ended | ||||||||||||||||
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| October 30,
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| July 31,
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| October 31,
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| October 30,
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| October 31,
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GAAP gross profit: |
| $ | 587,820 |
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| $ | 371,830 |
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| $ | 381,060 |
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| $ | 1,377,791 |
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| $ | 1,067,218 |
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Special items: |
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Share-based compensation |
| 9,370 |
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| 2,665 |
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| 4,435 |
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| 21,838 |
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| 12,055 |
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Amortization of acquired intangible assets |
| 169,691 |
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| 167,253 |
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| 83,078 |
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| 430,756 |
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| 254,870 |
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Other cost of goods sold (a) |
| 21,470 |
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| 155,840 |
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| 4,296 |
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| 191,033 |
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| 34,488 |
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Total special items |
| 200,531 |
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| 325,758 |
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| 91,809 |
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| 643,627 |
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| 301,413 |
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Non-GAAP gross profit |
| $ | 788,351 |
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| $ | 697,588 |
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| $ | 472,869 |
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| $ | 2,021,418 |
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| $ | 1,368,631 |
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GAAP gross margin |
| 48.5 | % |
| 34.6 | % |
| 50.8 | % |
| 44.2 | % |
| 49.2 | % | |||||
Non-GAAP gross margin |
| 65.1 | % |
| 64.8 | % |
| 63.0 | % |
| 64.8 | % |
| 63.0 | % | |||||
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Total GAAP operating expenses |
| $ | 621,161 |
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| $ | 638,498 |
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| $ | 390,450 |
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| $ | 1,760,111 |
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| $ | 1,323,871 |
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Special items: |
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Share-based compensation |
| (109,720) |
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| (111,440) |
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| (55,352) |
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| (320,950) |
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| (170,005) |
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Restructuring related charges (b) |
| (5,861) |
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| (12,294) |
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| (19,312) |
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| (31,041) |
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| (161,189) |
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Amortization of acquired intangible assets |
| (109,591) |
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| (109,419) |
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| (26,355) |
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| (253,837) |
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| (79,064) |
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Other operating expenses (c) |
| (25,460) |
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| (38,948) |
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| (9,490) |
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| (111,092) |
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| (37,018) |
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Total special items |
| (250,632) |
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| (272,101) |
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| (110,509) |
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| (716,920) |
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| (447,276) |
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Total non-GAAP operating expenses |
| $ | 370,529 |
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| $ | 366,397 |
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| $ | 279,941 |
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| $ | 1,043,191 |
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| $ | 876,595 |
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GAAP operating margin |
| (2.8) | % |
| (24.8) | % |
| (1.3) | % |
| (12.3) | % |
| (11.8) | % | |||||
Other cost of goods sold (a) |
| 1.8 | % |
| 14.5 | % |
| 0.6 | % |
| 6.1 | % |
| 1.6 | % | |||||
Share-based compensation |
| 9.8 | % |
| 10.6 | % |
| 8.0 | % |
| 11.0 | % |
| 8.4 | % | |||||
Restructuring related charges (b) |
| 0.5 | % |
| 1.1 | % |
| 2.6 | % |
| 1.0 | % |
| 7.4 | % | |||||
Amortization of acquired intangible assets |
| 23.1 | % |
| 25.7 | % |
| 14.6 | % |
| 21.9 | % |
| 15.4 | % | |||||
Other operating expenses (c) |
| 2.1 | % |
| 3.7 | % |
| 1.2 | % |
| 3.7 | % |
| 1.7 | % | |||||
Non-GAAP operating margin |
| 34.5 | % |
| 30.8 | % |
| 25.7 | % |
| 31.4 | % |
| 22.7 | % | |||||
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GAAP interest and other income (loss), net |
| $ | (34,235) |
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| $ | (35,318) |
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| $ | (15,159) |
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| $ | (103,249) |
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| $ | (42,675) |
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Special items: |
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Debt issuance related costs and other (d) |
| (98) |
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| 3,022 |
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| (549) |
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| 19,825 |
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| (115) |
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Total special items |
| (98) |
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| 3,022 |
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| (549) |
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| 19,825 |
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| (115) |
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Total non-GAAP interest and other income (loss), net |
| $ | (34,333) |
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| $ | (32,296) |
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| $ | (15,708) |
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| $ | (83,424) |
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| $ | (42,790) |
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GAAP net loss |
| $ | (62,532) |
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| $ | (276,428) |
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| $ | (22,908) |
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| $ | (427,202) |
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| $ | (293,834) |
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Special items: |
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Other cost of goods sold (a) |
| 21,470 |
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| 155,840 |
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| 4,296 |
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| 191,033 |
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| 34,488 |
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Share-based compensation |
| 119,090 |
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| 114,105 |
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| 59,787 |
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| 342,788 |
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| 182,060 |
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Restructuring related charges (b) |
| 5,861 |
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| 12,294 |
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| 19,312 |
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| 31,041 |
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| 161,189 |
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Other operating expenses (c) |
| 25,460 |
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| 38,948 |
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| 9,490 |
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| 111,092 |
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| 37,018 |
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Amortization of acquired intangible assets |
| 279,282 |
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| 276,672 |
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| 109,433 |
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| 684,593 |
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| 333,934 |
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Debt issuance related costs and other (d) |
| (98) |
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| 3,022 |
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| (549) |
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| 19,825 |
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| (115) |
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Pre-tax total special items |
| 451,065 |
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| 600,881 |
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| 201,769 |
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| 1,380,372 |
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| 748,574 |
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Other income tax effects and adjustments (e) |
| (24,218) |
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| (40,503) |
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| (10,502) |
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| (103,106) |
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| (27,957) |
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Non-GAAP net income |
| $ | 364,315 |
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| $ | 283,950 |
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| $ | 168,359 |
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| $ | 850,064 |
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| $ | 426,783 |
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GAAP weighted average shares — basic |
| 828,635 |
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| 821,062 |
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| 670,487 |
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| 781,008 |
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| 667,186 |
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GAAP weighted average shares — diluted |
| 828,635 |
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| 821,062 |
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| 670,487 |
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| 781,008 |
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| 667,186 |
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Non-GAAP weighted average shares — diluted (f) |
| 845,937 |
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| 836,648 |
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| 682,724 |
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| 796,790 |
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| 677,273 |
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GAAP diluted net loss per share |
| $ | (0.08) |
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| $ | (0.34) |
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| $ | (0.03) |
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| $ | (0.55) |
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| $ | (0.44) |
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Non-GAAP diluted net income per share |
| $ | 0.43 |
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| $ | 0.34 |
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| $ | 0.25 |
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| $ | 1.07 |
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| $ | 0.63 |
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(a) | Other costs of goods sold includes amortization of acquired inventory fair value adjustments. |
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(b) | Restructuring and other related items include asset impairment charges, employee severance costs, facilities related charges, and other. |
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(c) | Other operating expenses include integration and merger costs associated with acquisitions. |
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(d) | Debt issuance related costs and other includes the partial term loan repayment and bridge financing. |
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(e) | Other income tax effects and adjustments relate to tax provision based on a non-GAAP income tax rate of 5.0%. |
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(f) | Non-GAAP diluted weighted average shares differs from GAAP diluted weighted average shares due to the non-GAAP net income reported. |