Marvell Technology Group Ltd.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

Three Months Ended

Six Months Ended

August 3,
2019

August 4,
2018

August 3,
2019

August 4,
2018

Cash flows from operating activities:

Net income (loss)

$

(57,331)

$

6,759

$

(105,781)

$

135,371

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

Depreciation and amortization

41,941

26,754

86,239

47,097

Share-based compensation

63,676

59,392

122,274

83,244

Amortization of acquired intangible assets

80,967

25,939

160,707

25,939

Amortization of inventory fair value adjustment associated with acquisition of Cavium

—

22,933

—

22,933

Amortization of deferred debt issuance costs and debt discounts

1,178

7,073

2,859

7,073

Restructuring related impairment charges (gain)

6,281

1,993

10,097

1,993

Other expense, net

580

2,740

2,016

3,631

Deferred income taxes

(1,982)

(22,238)

2,374

(21,414)

Changes in assets and liabilities:

Accounts receivable

17,601

(1,356)

40,376

(48,749)

Inventories

(7,174)

4,186

8,674

6,866

Prepaid expenses and other assets

(15,997)

(5,396)

(7,993)

(19,504)

Accounts payable

24,370

(15,015)

22,497

(271)

Accrued liabilities and other non-current liabilities

(49,188)

(32,400)

(80,117)

(11,961)

Accrued employee compensation

(31,782)

(19,429)

(25,266)

(41,539)

Net cash provided by operating activities

73,140

61,935

238,956

190,709

Cash flows from investing activities:

Purchases of available-for-sale securities

—

(1,499)

—

(14,956)

Sales of available-for-sale securities

—

553,623

—

623,896

Maturities of available-for-sale securities

—

59,165

—

187,985

Purchases of time deposits

—

—

—

(25,000)

Maturities of time deposits

—

75,000

—

150,000

Purchases of technology licenses

(38)

(903)

(1,522)

(1,263)

Purchases of property and equipment

(23,010)

(20,801)

(42,193)

(34,389)

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

—

(2,649,465)

—

(2,649,465)

Other, net

(47)

1,462

(389)

(3,527)

Net cash used in investing activities

(23,095)

(1,983,418)

(44,104)

(1,766,719)

Cash flows from financing activities:

Repurchases of common stock

(16,250)

—

(64,272)

—

Proceeds from employee stock plans

50,230

33,525

81,314

44,580

Tax withholding paid on behalf of employees for net share settlement

(32,884)

(12,883)

(61,642)

(36,776)

Dividend payments to shareholders

(39,889)

(39,383)

(79,356)

(69,181)

Payments on technology license obligations

(13,056)

(9,017)

(28,324)

(29,478)

Proceeds from issuance of debt

—

1,892,605

—

1,892,605

Principal payments of debt

—

(606,128)

(50,000)

(606,128)

Payment of equity and debt financing costs

—

(5,835)

—

(9,435)

Other, net

3,407

—

(1,486)

—

Net cash provided by (used in) in financing activities

(48,442)

1,252,884

(203,766)

1,186,187

Net increase (decrease) in cash and cash equivalents

1,603

(668,599)

(8,914)

(389,823)

Cash and cash equivalents at beginning of period

571,893

1,167,258

582,410

888,482

Cash and cash equivalents at end of period

$

573,496

$

498,659

$

573,496

$

498,659