Marvell Technology, Inc.

Reconciliations from GAAP to Non-GAAP (Unaudited)

(In millions, except per share amounts)

Three Months Ended

Year Ended

February 3,
2024

October 28,
2023

January 28,
2023

February 3,
2024

January 28,
2023

GAAP gross profit

$     664.1

$     551.2

$     673.3

$  2,293.6

$  2,987.5

Special items:

Stock-based compensation

10.4

15.7

9.5

49.1

43.3

Amortization of acquired intangible assets

194.3

184.3

185.4

748.1

725.6

Other cost of goods sold (a)

42.3

108.0

32.4

280.1

61.0

Total special items

247.0

308.0

227.3

1,077.3

829.9

Non-GAAP gross profit

$     911.1

$     859.2

$     900.6

$  3,370.9

$  3,817.4

GAAP gross margin

46.6 %

38.9 %

47.5 %

41.6 %

50.5 %

Non-GAAP gross margin

63.9 %

60.6 %

63.5 %

61.2 %

64.5 %

Total GAAP operating expenses

$     697.4

$     697.5

$     650.0

$  2,861.3

$  2,749.5

Special items:

Stock-based compensation

(144.9)

(142.8)

(121.2)

(560.7)

(509.1)

Restructuring related charges (b)

(25.8)

(3.4)

(3.5)

(131.1)

(21.6)

Amortization of acquired intangible assets

(92.0)

(85.5)

(87.8)

(349.8)

(361.8)

Legal settlement (c)

—

—

—

—

(100.0)

Other (d)

(6.2)

(28.7)

(6.8)

(47.5)

(39.0)

Total special items

(268.9)

(260.4)

(219.3)

(1,089.1)

(1,031.5)

Total non-GAAP operating expenses

$     428.5

$     437.1

$     430.7

$  1,772.2

$  1,718.0

GAAP operating margin

(2.3) %

(10.3) %

1.6 %

(10.3) %

4.0 %

Other cost of goods sold (a)

3.0 %

7.6 %

2.3 %

5.1 %

1.0 %

Stock-based compensation

10.9 %

11.2 %

9.2 %

11.1 %

9.3 %

Restructuring related charges (b)

1.8 %

0.2 %

0.2 %

2.4 %

0.4 %

Amortization of acquired intangible assets

20.1 %

19.0 %

19.3 %

19.9 %

18.4 %

Legal settlement (c)

— %

— %

— %

— %

1.7 %

Other (d)

0.3 %

2.1 %

0.5 %

0.8 %

0.7 %

Non-GAAP operating margin 

33.8 %

29.8 %

33.1 %

29.0 %

35.5 %

GAAP interest and other loss, net

$      (54.0)

$      (41.2)

$      (46.5)

$   (191.0)

$   (152.9)

Special items:

Other (d)

(1.3)

(4.2)

(1.8)

(13.9)

(8.0)

Total special items

(1.3)

(4.2)

(1.8)

(13.9)

(8.0)

Total non-GAAP interest and other loss, net

$      (55.3)

$      (45.4)

$      (48.3)

$   (204.9)

$   (160.9)

GAAP net loss

$   (392.7)

$   (164.3)

$      (15.4)

$   (933.4)

$   (163.5)

Special items:

Other cost of goods sold (a)

42.3

108.0

32.4

280.1

61.0

Stock-based compensation

155.3

158.5

130.7

609.8

552.4

Restructuring related charges (b)

25.8

3.4

3.5

131.1

21.6

Amortization of acquired intangible assets

286.3

269.8

273.2

1,097.9

1,087.4

Legal settlement (c)

—

—

—

—

100.0

Other (d)

4.9

24.5

5.0

33.6

31.0

Pre-tax total special items

514.6

564.2

444.8

2,152.5

1,853.4

Other income tax effects and adjustments (e)

279.7

(45.8)

(33.1)

91.0

132.3

Non-GAAP net income

$     401.6

$     354.1

$     396.3

$  1,310.1

$  1,822.2

GAAP weighted-average shares — basic

864.7

862.6

854.1

861.3

851.4

GAAP weighted-average shares — diluted

864.7

862.6

854.1

861.3

851.4

Non-GAAP weighted-average shares — diluted (f)

873.9

872.2

859.0

869.3

859.2

GAAP diluted net loss per share

$      (0.45)

$      (0.19)

$      (0.02)

$      (1.08)

$      (0.19)

Non-GAAP diluted net income per share

$        0.46

$        0.41

$        0.46

$        1.51

$        2.12

(a)

Other cost of goods sold includes charges for product claim related matters that were fully resolved in the fourth quarter of fiscal 2024, acquisition integration related inventory costs, and amortization of acquired inventory fair value adjustments.

(b)

Restructuring and other related items include employee severance costs, asset impairment charges, facilities related charges, and other.

(c)

Relates to settlement of a contractual dispute.

(d)

Other costs included in operating expenses and other income, net include charges for an intellectual property matter, net gains on investments, and acquisition related costs.

(e)

Other income tax effects and adjustments relate to the tax provision based on a non-GAAP income tax rate of 6.0%. In the three months and year ended February 3, 2024, we excluded $289 million and $158 million, respectively, of non-recurring income tax expense relating to guidance issued by the IRS on December 22, 2023 clarifying the requirement to capitalize certain U.S. R&D costs, which became effective for us retroactively to the year ended January 28, 2023. As a result of this IRS guidance, which is intended to be part of published Treasury Regulations, we have determined that such costs are currently deductible in computing our taxable income, and no longer have to be capitalized. This discrete change in treatment reduced the amount of R&D credits we utilized to offset our taxes, which reduced the deferred tax benefits that we previously recognized for utilization of such credits because they carried a full valuation allowance. As a result of this change, we have reinstated these R&D credit carryforwards with a full valuation allowance (consistent with past practice), and reduced our income taxes payable for the years ended January 28, 2023 and February 3, 2024. In the year ended January 28, 2023, $213.6 million of non-recurring income tax expense associated with the extension of a tax incentive in Singapore was excluded from our non-GAAP income tax expense. Additionally, we excluded $18.3 million of non-recurring income tax expense associated with the claw back of incentive benefits that resulted from our election to avail ourselves of a preferential temporary tax provision in Israel.

(f)

Non-GAAP diluted weighted-average shares differs from GAAP diluted weighted-average shares due to the non-GAAP net income reported.