Marvell Technology Group Ltd.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

Three Months Ended

Year Ended

February 1,
2020

February 2,
2019

February 1,
2020

February 2,
2019

Cash flows from operating activities:

Net income (loss)

$

1,772,673

$

(260,698)

$

1,584,391

$

(179,094)

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

Depreciation and amortization

43,996

37,627

156,658

123,983

Share-based compensation

53,171

50,580

242,207

184,064

Amortization of acquired intangible assets

114,615

78,688

368,082

183,318

Amortization of inventory fair value adjustment associated with acquisitions

52,510

97,597

55,826

223,372

Amortization of deferred debt issuance costs and debt discounts

2,723

2,064

6,763

11,354

Restructuring related impairment charges (gain)

1,328

(12,081)

17,571

(200)

Deferred income taxes

(777,257)

146,322

(785,158)

118,647

Gain on sale of business

(1,123,223)

—

(1,121,709)

1,592

Other expense (income), net

9,287

344

26,448

4,154

Changes in assets and liabilities:

Accounts receivable

2,870

(39,347)

11,244

(99,044)

Inventories

43,361

2,489

12,759

4,348

Prepaid expenses and other assets

(43,099)

189

(54,138)

(11,685)

Accounts payable

(29,143)

(28,753)

1,658

(6,493)

Accrued liabilities and other non-current liabilities

(76,635)

57,297

(182,893)

85,027

Accrued employee compensation

8,661

(25,677)

20,588

(46,599)

Net cash provided by operating activities

55,838

106,641

360,297

596,744

Cash flows from investing activities:

Purchases of available-for-sale securities

—

—

—

(14,956)

Sales of available-for-sale securities

—

—

18,832

623,896

Maturities of available-for-sale securities

—

—

—

187,985

Purchases of time deposits

—

—

—

(25,000)

Maturities of time deposits

—

—

—

175,000

Purchases of technology licenses

(2,776)

(359)

(4,712)

(11,540)

Purchases of property and equipment

(18,986)

(28,886)

(81,921)

(75,921)

Proceeds from sales of property and equipment

89

42,707

620

43,525

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

(593,500)

—

(1,071,079)

(2,649,465)

Net proceeds from sale of business

1,699,835

—

1,698,783

(3,352)

Other

(405)

2,275

(1,677)

(2,725)

Net cash provided by (used in) investing activities

1,084,257

15,737

558,846

(1,752,553)

Cash flows from financing activities:

Repurchases of common stock

(300,000)

(50,005)

(364,272)

(103,974)

Proceeds from employee stock plans

44,167

40,189

147,276

100,961

Tax withholding paid on behalf of employees for net share settlement

(17,440)

(9,248)

(98,302)

(54,939)

Dividend payments to shareholders

(40,077)

(39,489)

(159,573)

(148,081)

Payments on technology license obligations

(15,053)

(16,676)

(72,266)

(69,157)

Proceeds from issuance of debt

600,000

—

950,000

1,892,605

Principal payments of debt

(1,200,000)

(75,000)

(1,250,000)

(756,128)

Payment of equity and debt financing costs

—

—

—

(11,550)

Other, net

(2,457)

—

(6,812)

—

Net cash provided by (used in) financing activities

(930,860)

(150,229)

(853,949)

849,737

Net increase (decrease) in cash and cash equivalents

209,235

(27,851)

65,194

(306,072)

Cash and cash equivalents at beginning of period

438,369

610,261

582,410

888,482

Cash and cash equivalents at end of period

$

647,604

$

582,410

$

647,604

$

582,410