|
Marvell Technology Group Ltd. | |||||||||||
|
Condensed Consolidated Statements of Cash Flows | |||||||||||
|
(Unaudited) | |||||||||||
|
(in thousands) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended | ||||
|
|
|
|
|
July 30, |
|
August 1, |
|
|
July 30, |
|
August 1, |
|
|
|
|
|
2016 |
|
2015 |
|
|
2016 |
|
2015 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
| |||
|
Net income (loss) |
$ 51,305 |
|
$ (771,940) |
|
|
$ 28,626 |
|
$ (757,850) | |||
|
Adjustments to reconcile net income (loss) to net cash provided |
|
|
|
|
|
|
|
| |||
|
by operating activities: |
|
|
|
|
|
|
|
| |||
|
|
Depreciation and amortization |
26,866 |
|
25,191 |
|
|
53,980 |
|
51,811 | ||
|
|
Share-based compensation |
37,196 |
|
36,674 |
|
|
61,649 |
|
69,895 | ||
|
|
Amortization of acquired intangible assets |
2,946 |
|
3,053 |
|
|
5,892 |
|
6,106 | ||
|
|
Non-cash restructuring and other related charges |
129 |
|
900 |
|
|
1,025 |
|
1,473 | ||
|
|
Other non-cash expense, net |
589 |
|
2,282 |
|
|
1,950 |
|
1,721 | ||
|
|
Excess tax benefits from share-based compensation |
(5) |
|
(7) |
|
|
(5) |
|
(25) | ||
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
| ||
|
|
|
Accounts receivable |
(68,025) |
|
(23,907) |
|
|
(25,383) |
|
3,234 | |
|
|
|
Inventories |
(6,364) |
|
12,903 |
|
|
7,234 |
|
(18,415) | |
|
|
|
Prepaid expenses and other assets (a) |
6,658 |
|
9,359 |
|
|
(9,035) |
|
11,328 | |
|
|
|
Accounts payable |
20,437 |
|
(5,167) |
|
|
40,359 |
|
11,958 | |
|
|
|
Accrued liabilities and other non-current liabilities (a) |
(7,741) |
|
753,191 |
|
|
(766,243) |
|
741,615 | |
|
|
|
Accrued employee compensation |
(22,270) |
|
(14,507) |
|
|
(15,118) |
|
(28,931) | |
|
|
|
Deferred income |
17,561 |
|
(1,441) |
|
|
16,327 |
|
(8,468) | |
|
|
|
|
Net cash provided by (used in) operating activities |
59,282 |
|
26,584 |
|
|
(598,742) |
|
85,452 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
| |||
|
|
Purchases of available-for-sale securities |
(110,358) |
|
(173,465) |
|
|
(203,723) |
|
(566,365) | ||
|
|
Sales and maturities of available-for-sale securities |
116,506 |
|
222,295 |
|
|
486,565 |
|
469,790 | ||
|
|
Purchase of time deposits |
(75,000) |
|
- |
|
|
(125,000) |
|
- | ||
|
|
Distribution from (investments in) privately-held companies |
- |
|
208 |
|
|
- |
|
208 | ||
|
|
Purchases of technology licenses |
(3,995) |
|
(2,071) |
|
|
(8,045) |
|
(5,677) | ||
|
|
Purchases of property and equipment |
(12,509) |
|
(16,986) |
|
|
(24,377) |
|
(24,320) | ||
|
|
Purchase of equipment previously leased |
- |
|
- |
|
|
- |
|
(10,240) | ||
|
|
|
|
Net cash provided by (used in) investing activities |
(85,356) |
|
29,981 |
|
|
125,420 |
|
(136,604) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
| |||
|
|
Repurchase of common stock (b) |
- |
|
(175,311) |
|
|
- |
|
(195,584) | ||
|
|
Proceeds from employee stock plans |
244 |
|
44,161 |
|
|
559 |
|
57,174 | ||
|
|
Minimum tax withholding paid on behalf of employees |
|
|
|
|
|
|
|
| ||
|
|
for net share settlement |
(112) |
|
(697) |
|
|
(15,382) |
|
(23,007) | ||
|
|
Dividend payments to shareholders |
(30,675) |
|
(31,194) |
|
|
(61,136) |
|
(62,104) | ||
|
|
Payments on technology license obligations |
(4,858) |
|
(4,732) |
|
|
(10,152) |
|
(8,799) | ||
|
|
Excess tax benefits from share-based compensation |
5 |
|
7 |
|
|
5 |
|
25 | ||
|
|
|
|
Net cash used in financing activities |
(35,396) |
|
(167,766) |
|
|
(86,106) |
|
(232,295) |
|
Net increase (decrease) in cash and cash equivalents |
(61,470) |
|
(111,201) |
|
|
(559,428) |
|
(283,447) | |||
|
Cash and cash equivalents at beginning of period |
780,222 |
|
1,038,731 |
|
|
1,278,180 |
|
1,210,977 | |||
|
Cash and cash equivalents at end of period |
$ 718,752 |
|
$ 927,530 |
|
|
$ 718,752 |
|
$ 927,530 | |||
|
|
| ||||||||||||||
|
(a) |
In the six months ended July 30, 2016, the Company paid a total of $750.0 million to CMU in connection with the settlement agreement that was reached in February 2016. Of this settlement, the Company recognized a charge of $736.0 million in fiscal 2016. The remaining $14.0 million was recorded in prepaid expenses and other assets, to be recognized in cost of good sold over the remaining term of the license from February 2016 through April 2018. For further detail of the accounting for the settlement, see "Note 13 – Carnegie Mellon University Settlement" in the Notes to the Unaudited Condensed Consolidated Financial Statements included in the Company's Quarterly Report on Form 10-Q for the quarter ended April 30, 2016. | ||||||||||||||
|
(b) |
Marvell records all repurchases of common stock consistent with the way it records investment purchases and sales, based on trade date in accordance with U.S. GAAP. In the three and six months ended August 1, 2015, cash paid for repurchase of Marvell common shares was adjusted for repurchases of $19.7 million made within the final three days of the quarter that are accrued but not yet paid due to the standard settlement period that normally takes up to three days. | ||||||||||||||
