Marvell Technology 10-Q 9 Dec 09 2010 Q3 Quarterly report Financial data

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Thousands	9 Months Ended Oct. 31, 2009	9 Months Ended Jan. 31, 2009
Current assets:
Cash and cash equivalents	$1,047,395	$927,409
Restricted cash	0	24,500
Short-term investments	416,792	0
Accounts receivable, net	394,319	222,101
Inventories	239,209	310,654
Prepaids and other current assets	58,413	61,268
Deferred income taxes	14,383	14,383
Total current assets	2,170,511	1,560,315
Property and equipment, net	349,276	390,853
Long-term investments	39,274	40,541
Goodwill	1,997,662	1,997,630
Acquired intangible assets, net	203,354	286,534
Other non-current assets	127,643	138,327
Total assets	4,887,720	4,414,200
Current liabilities:
Accounts payable	317,233	139,028
Accrued liabilities	73,862	83,113
Accrued employee compensation	127,171	92,022
Income taxes payable	14,671	35,803
Deferred income	71,273	57,895
Current portion of capital lease obligations	1,901	1,787
Total current liabilities	606,111	409,648
Capital lease obligations, net of current portion	1,011	2,451
Non-current income taxes payable	115,451	123,379
Other long-term liabilities	58,847	49,655
Total liabilities	781,420	585,133
Commitments and contingencies (Note 9)	-	-
Shareholders' equity:
Common shares	1,249	1,233
Additional paid-in capital	4,501,258	4,372,265
Accumulated other comprehensive loss	(1,129)	(718)
Accumulated deficit	(395,078)	(543,713)
Total shareholders' equity	4,106,300	3,829,067
Total liabilities and shareholders' equity	$4,887,720	$4,414,200

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Thousands, except Per Share data	3 Months Ended Oct. 31, 2009	3 Months Ended Nov. 01, 2008	9 Months Ended Oct. 31, 2009	9 Months Ended Nov. 01, 2008
Net revenue	$803,098	$791,046	$1,965,152	$2,437,696
Operating costs and expenses:
Cost of goods sold	341,617	379,137	887,306	1,173,892
Research and development	212,873	234,222	615,152	722,411
Selling and marketing	35,442	41,158	102,260	129,080
General and administrative	16,660	28,869	148,856	72,809
Amortization of acquired intangible assets	26,450	34,814	83,252	105,049
Total operating costs and expenses	633,042	718,200	1,836,826	2,203,241
Operating income	170,056	72,846	128,326	234,455
Interest and other income (expense), net	(1,303)	15,109	418	21,973
Interest expense	(70)	(3,566)	(1,672)	(15,876)
Income before income taxes	168,683	84,389	127,072	240,552
Provision (benefit) for income taxes	(32,916)	13,443	(21,563)	28,300
Net income	$201,599	$70,946	$148,635	$212,252
Net income per share:
Basic	0.32	0.12	0.24	0.35
Diluted	0.31	0.11	0.23	0.34
Weighted average shares:
Basic	623,613	611,945	621,057	606,676
Diluted	659,739	630,810	647,863	630,997

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Thousands	9 Months Ended Oct. 31, 2009	9 Months Ended Nov. 01, 2008
Cash flows from operating activities:
Net income	$148,635	$212,252
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	74,976	85,786
Stock-based compensation	96,040	132,431
Amortization of acquired intangible assets	83,252	105,049
Fair market value adjustment to Intel inventory sold	(13,883)	(14,163)
Excess tax benefits from stock-based compensation	(205)	(356)
Deferred income taxes	6,131	0
Changes in assets and liabilities:
Restricted cash	24,500	(24,500)
Accounts receivable	(172,218)	(65,816)
Inventories	83,548	95,850
Prepaids and other assets	7,559	61,847
Accounts payable	172,062	(6,004)
Accrued liabilities and other	(13,628)	(23,693)
Accrued employee compensation	35,149	17,659
Income taxes payable	(29,060)	(100)
Deferred income	27,538	(4,700)
Net cash provided by operating activities	530,396	571,542
Cash flows from investing activities:
Purchases of investments	(426,998)	(10,172)
Sales and maturities of investments	10,318	29,181
Purchases of technology licenses	(12,550)	(2,650)
Purchases of property and equipment	(14,808)	(59,312)
Net cash used in investing activities	(444,038)	(42,953)
Cash flows from financing activities:
Proceeds from the issuance of common shares	34,749	80,453
Principal payments on capital lease and debt obligations	(1,326)	(205,039)
Excess tax benefits from stock-based compensation	205	356
Net cash provided by (used in) financing activities	33,628	(124,230)
Net increase in cash and cash equivalents	119,986	404,359
Cash and cash equivalents at beginning of period	927,409	615,648
Cash and cash equivalents at end of period	$1,047,395	$1,020,007

Note 1. The Company and its Sig

Note 1. The Company and its Significant Accounting Policies
	9 Months Ended Oct. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 1. The Company and its Significant Accounting Policies	Note 1. The Company and its Significant Accounting Policies The Company Marvell Technology Group Ltd., a Bermuda company (the Company), is a leading global semiconductor provider of high-performance application specific standard products. The Companys core strength of expertise is the development of complex System-on-a-Chip devices leveraging its extensive technology portfolio of intellectual property in the areas of analog, mixed-signal, digital signal processing and embedded ARM-based microprocessor integrated circuits. The Companys broad product portfolio includes devices for data storage, enterprise-class Ethernet data switching, Ethernet physical-layer transceiver handheld cellular, Ethernet-based wireless networking, personal area networking, Ethernet-based PCconnectivity, control plane communications controllers, video-image processing and power management solutions. Basis of presentation The Companys fiscal year is the 52- or 53-week period ending on the Saturday closest to January31. In a 52-week year, each fiscal quarter consists of 13 weeks. The additional week in a 53-week year is added to the fourth quarter, making such quarter consist of 14 weeks. Fiscal 2010 and fiscal 2009 are comprised of a 52-week period. The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments consisting of normal and recurring entries considered necessary for a fair statement of the results for the interim periods have been included in the Companys financial position as of October31, 2009, the results of its operations for the three and nine months ended October31, 2009 and November1, 2008, and its cash flows for the nine months ended October31, 2009 and November1, 2008. The January31, 2009 condensed consolidated balance sheet data was derived from audited consolidated financial statements included in the Companys Annual Report on Form 10-K for the year ended January31, 2009 but does not include all disclosures required by GAAP. Certain reclassifications have been made to conform to the current periods presentation. These condensed consolidated financial statements and related notes are unaudited and should be read in conjunction with the Companys audited financial statements and related notes for the year ended January31, 2009 included in the Companys Annual Report on Form 10-K for the year ended January31, 2009 as filed on March28, 2009 with the Securities and Exchange Commission (SEC). The results of operations for the three and nine months ended October31, 2009 are not necessarily indicative of the results that may be expected for any other interim period or for the full fiscal year. Use of estimates The preparation of consolidated financial statements in conformity with GAAP in the United States requires management to make estimates, judgments and

Note 2. Recent Accounting Prono

Note 2. Recent Accounting Pronouncements
	9 Months Ended Oct. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 2. Recent Accounting Pronouncements	Note 2. Recent Accounting Pronouncements In June 2009, the FASB issued FASB ASC105-10, Generally Accepted Accounting Principles Overall (ASC 105-10). ASC105-10 establishes the FASB Accounting Standards Codification (the Codification), the authoritative guidance for U.S. GAAP. The Codification, which changes the referencing of financial standards, became effective for interim and annual periods ending on or after September15, 2009. The Codification is now the single source of authoritative U.S. GAAP (other than guidance issued by the SEC) superseding all existing all non-SEC accounting and reporting standards. All other non-SEC accounting literature not included in the Codification is considered non-authoritative. The Codification does not change U.S. GAAP. The Company adopted the Codification during the quarter ended October31, 2009. Adoption of the Codification did not have any substantive impact on the Companys financial position or results of operations. References made to FASB guidance throughout the document have been updated for the Codification. In September 2009, the FASB issued new accounting guidance related to the revenue recognition of multiple element arrangements. The new guidance states that if vendor specific objective evidence or third party evidence for deliverables in an arrangement cannot be determined, companies will be required to develop a best estimate of the selling price to separate deliverables and allocate arrangement consideration using the relative selling price method. The accounting guidance will be applied prospectively and will become effective during the first quarter of fiscal year 2011. Early adoption is allowed. The Company is currently evaluating the impact of this accounting guidance on its financial position and results of operations.

Note 3. Investments

Note 3. Investments
	9 Months Ended Oct. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 3. Investments	Note 3. Investments The following tables summarize the Companys investments (in thousands): As of October31, 2009 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Estimated Fair Value Short-term investments: Available-for-sale: Corporate debt securities $ 163,571 $ 162 $ (139 ) $ 163,594 U.S. government $ 253,267 $ 41 $ (110 ) $ 253,198 Total short-term investments $ 416,838 $ 203 $ (249 ) $ 416,792 Long-term investments: Available-for-sale: Auction rate securities $ 36,700 $ $ (2,426 ) $ 34,274 Trading securities: Auction rate securities and settlement option $ 5,000 $ 5,000 Total long-term investments $ 41,700 $ $ (2,426 ) $ 39,274 Total investments $ 458,538 $ 203 $ (2,675 ) $ 456,066 As of January31, 2009 Amortized Cost Gross Unrealized Gains Gross Unrealized (Loss) Estimated FairValue Long-term investments: Available-for-sale: Auction rate securities $ 36,850 $ $ (1,309 ) $ 35,541 Trading securities: Auction rate securities and settlement option $ 5,000 $ 5,000 Total long-term investments $ 41,850 $ $ (1,309 ) $ 40,541 Total investments $ 41,850 $ $ (1,309 ) $ 40,541 As of October31, 2009 and January31, 2009, the Companys investment portfolio included $41.7million and $41.9 million, respectively, in par value of auction rate securities. Auction rate securities are usually found in the form of municipal bonds, preferred stock, pools of student loans or collateralized debt obligations with contractual maturities generally between 20 and 30years and whose interest rates are reset every seven to 35days through an auction process. At the end of each reset period, investors can sell or continue to hold the securities at par. The Companys auction rate securities are all backed by student loans originated under the Federal Family Education Loan Program and are over-collateralized, insured and guaranteed by the U.S. Federal Department of Education. All auction rate securities held by the Company are rated by the major independent rating agencies as either AAA or Aaa at the time of purchase. The Company believes the mark-to-market losses for its auction rate securities are all non-credit losses. In the fourth quarter ended January31, 2009, UBS, one of the brokers who the Company purchased auction rate securities from, offered a settlement where UBS has the right to call and sell one of the auction rate securities the Company purchased from them at par value of $5 million at a future date. As a result of the Co

Note 4. Supplemental Financial

Note 4. Supplemental Financial Information (in thousands):
	9 Months Ended Oct. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 4. Supplemental Financial Information (in thousands):	Note 4. Supplemental Financial Information (in thousands): Inventories October31, 2009 January31, 2009 Work-in-process $ 151,018 $ 188,830 Finished goods 88,191 121,824 $ 239,209 $ 310,654 Property and equipment, net October31, 2009 January31, 2009 Machinery and equipment $ 363,038 $ 343,772 Computer software 78,594 75,986 Furniture and fixtures 23,510 23,490 Leasehold improvements 39,471 38,872 Buildings 146,294 146,294 Building improvements 45,586 45,329 Land 71,198 71,198 Construction in progress 2,928 2,483 770,619 747,424 Less: Accumulated depreciation and amortization (421,343 ) (356,571 ) $ 349,276 $ 390,853 Other non-current assets October31, 2009 January31, 2009 Long term prepayments for foundry capacity $ 1,600 $ 8,800 Equity investments in privately held companies 7,058 7,058 Severance fund 50,462 43,121 Technology licenses 21,830 24,108 Deferred tax assets, non-current 35,444 41,575 Other 11,249 13,665 $ 127,643 $ 138,327 Accrued liabilities October31, 2009 January31, 2009 Accrued royalties 13,270 5,660 Accrued rebates 16,407 28,925 Accrued legal and professional services 13,808 9,719 Accrued legal settlement 16,000 Other 30,377 22,809 $ 73,862 $ 83,113 Other long-term liabilities October31, 2009 January31, 2009 Accrued severance obligations $ 51,994 $ 46,716 Long-term facilities consolidation charge 2,626 2,246 Other 4,227 693 $ 58,847 $ 49,655 Net income per share The Company reports both basic net income per share, which is based upon the weighted average number of common shares outstanding excluding contingently issuable or returnable shares, and diluted net income per share, which is based on the weighted average number of common shares outstanding and dilutive potential common shares. The computations of basic and diluted net income per share are presented in the following table (in thousands, except per share amounts): Three Months Ended Nine Months Ended October31, 2009 November1, 2008 October31, 2009 November1, 2008 Numerator: Net income $ 201,599 $ 70,946 $ 148,635 $ 212,252 Denominator: Weighted average shares of common shares outstanding Weighted average shares basic 623,613 611,945 621,057 606,676 Effect of dilutive securities: Warrants 420 Common share options and other 36,126 18,865 26,806 23,901 Weigh

Note 5. Derivative Financial In

Note 5. Derivative Financial Instruments
	9 Months Ended Oct. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 5. Derivative Financial Instruments	Note 5. Derivative Financial Instruments The Company manages some its foreign currency exchange rate risk through the purchase of foreign currency exchange contracts that hedge against the short-term impact of currency fluctuations. The Companys policy is to enter into foreign currency forward contracts with maturities generally less than 12 months that mitigate the impact of rate fluctuations on certain local currency denominated operating expenses. All derivatives are recorded at fair value in either prepaid and other current assets or accrued liabilities. The Company reports cash flows from derivative instruments in cash flows from operating activities. The Company uses quoted prices to value its derivative instruments. As of October31, 2009, the notional amounts of outstanding hedge contracts were as follows (in thousands): BuyContracts SellContracts Israeli shekel $ 32,575 $ 6,143 Total $ 32,575 $ 6,143 Cash Flow Hedges. The Company designates and documents its foreign currency forward exchange contracts as cash flow hedges for certain operating expenses denominated in Israeli shekels. The Company evaluates and calculates the effectiveness of each hedge at least quarterly. The effective change is recorded in other comprehensive income (OCI) and is subsequently reclassified to operating expense when the hedged expense is recognized. Ineffectiveness is recorded in interest and other income, net. Other Foreign Currency Forward Contracts. The Company enters into foreign currency forward exchange contracts to hedge certain payments denominated in Israeli shekels that it does not designate and document as cash flow or other hedges for accounting purposes. The maturities of these contracts are generally less than 12 months. Gains or losses arising from the remeasurement of these contracts to fair value each period are recorded in interest and other income (expense), net. The fair value and balance sheet classification of foreign exchange contract derivatives are as follows (in thousands): October31, 2009 Prepaids and other current assets: Derivative assets designated as hedging instruments: Cash flow hedges $ 1,662 Derivative assets not designated as hedging instruments: Other forward contracts (31 ) Total derivative assets $ 1,631 The following tables summarize the pre-tax effect of foreign exchange contract derivatives by (a)cash flow hedges and (b)other foreign currency hedges on OCI and the unaudited condensed consolidated statements of operations for the three and nine months ended October31, 2009. (a) Cash Flow Hedges (in thousands): ThreeMonthsEnded October31, 2009 NineMonthsEnded October31, 2009 Accumulated gain in OCI, beginning of period $ 1,790 $ Gains recorded in OCI (effective portion) 938 3,518 Gains reclassified from OCI to operating expense (effective portion) (1,398 ) (2,188 ) Accumulated gain in OCI, end of period $ 1,330 $ 1,330 The Comp

Note 6. Fair Value Measurements

Note 6. Fair Value Measurements
	9 Months Ended Oct. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 6. Fair Value Measurements	Note 6. Fair Value Measurements Effective February3, 2008, the Company adopted the authoritative guidance for fair value measurements and disclosures for all assets and liabilities within the scope of this guidance, except as it applies to the non-financial assets and non-financial liabilities subject to additional authoritative guidance, which the Company adopted during the first quarter ended May2, 2009. The guidance clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level2 Include other inputs that are directly or indirectly observable in the marketplace. Level3 Unobservable inputs that are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company measures its cash equivalents and marketable securities at fair value. The Companys cash equivalents and marketable securities are primarily classified within Level 1 with the exception of its investments in auction rate securities, which are classified within Level 3. Cash equivalents and marketable securities are valued primarily using quoted market prices utilizing market observable inputs. The Companys investments in auction rate securities are classified within Level 3 because there are no active markets for the auction rate securities and therefore the Company is unable to obtain independent valuations from market sources. Therefore, the auction rate securities were valued using a discounted cash flow model. Some of the inputs to the cash flow model are unobservable in the market. The total amount of assets measured using Level 3 valuation methodologies represented 0.8% of total assets as of October31, 2009. The table below sets forth, by level, the Companys financial assets that were accounted for at fair value as of October31, 2009. The table does not include assets and liabilities that are measured at historical cost or any basis other than fair value (in thousands): Fair Value Measurements as of October31, 2009 Total Level 1 Level 2 Level 3 Items measured at fair value on a recurring basis: Assets Cash equivalents: Money market funds $ 341,199 $ 341,199 $ $ Short-term investments 416,792 253,198 163,594 Prepaids and other current assets: Derivative assets 1,631 1,631 Long-term investments: Auctio

Note 7. Acquired Intangible Ass

Note 7. Acquired Intangible Assets, Net
	9 Months Ended Oct. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 7. Acquired Intangible Assets, Net	Note 7. Acquired Intangible Assets, Net As of October31, 2009 As of January31, 2009 Rangeof UsefulLives Gross Carrying Amount Accumulated Amortization andWrite-Offs Net Carrying Amount Gross Carrying Amount Accumulated Amortization andWrite-Offs Net Carrying Amount Purchased technology 17years $ 714,640 $ (652,746 ) $ 61,894 $ 714,640 $ (615,206 ) $ 99,434 Core technology 1 8years 212,650 (122,679 ) 89,971 212,650 (101,990 ) 110,660 Trade name 1 5years 350 (249 ) 101 350 (219 ) 131 Customer contracts 4 7years 183,300 (132,041 ) 51,259 183,300 (107,294 ) 76,006 Non-compete agreements 3 years 700 (571 ) 129 700 (397 ) 303 Total acquired intangible assets, net $ 1,111,640 $ (908,286 ) $ 203,354 $ 1,111,640 $ (825,106 ) $ 286,534 Based on the identified intangible assets recorded at October31, 2009, the future amortization expense of identified intangibles for the next five fiscal years is as follows (in thousands): Fiscal year Amount Remainder of fiscal 2010 $ 23,298 2011 79,913 2012 41,951 2013 35,217 2014 22,093 Thereafter 882 $ 203,354

Note 8. Restructuring and Relat

Note 8. Restructuring and Related Charges
	9 Months Ended Oct. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 8. Restructuring and Related Charges	Note 8. Restructuring and Related Charges During the three months ended October31, 2009, the Company continued to implement certain cost reduction measures that included reductions in workforce that were announced in the first quarter ended May2, 2009.In addition, the Company also impaired some facilities due to vacating certain locations.As a result, during the three months ended October31, 2009, the Company recorded a restructuring charge of $1.9 million consisting of $0.1 million of severance and related employee benefits to the terminated employees and $1.8 million for equipment and other related charges which included $1.0 million for leasehold improvements, furniture and equipment related to the closure of a lease in a foreign subsidiary. For the nine months ended October31, 2009, the Company recorded a restructuring charge $15.2 million consisting of $8.6 million for of severance and related employee benefits to terminated employees, $4.2 million for equipment and other related charges and $2.3 million of additional facilities impairment charges. The following table sets forth an analysis of the components of the restructuring charges and the payments made (in thousands): Three Months Ended Nine Months Ended October31, 2009 November1, 2008 October31, 2009 November1, 2008 Restructuring liabilities, beginning of period $ 5,234 $ 1,486 $ 7,685 $ 2,731 Severance and related charges 117 8,641 Equipment and other related charges 1,802 4,234 Facilities and related charges 2,336 Non-cash adjustment (1,015 ) (1,254 ) Net cash payments (1,501 ) (226 ) (17,005 ) (1,471 ) Restructuring liabilities, end of period $ 4,637 $ 1,260 $ 4,637 $ 1,260 The following table presents details of restructuring charges by functional line item (in thousands): Three Months Ended Nine Months Ended October31, 2009 November1, 2008 October31, 2009 November1, 2008 Research and development $ 1,338 $ $ 10,704 $ Selling and marketing 51 1,839 General and administrative 530 2,668 $ 1,919 $ $ 15,211 $ The Company anticipates that $0.1million will be paid out in cash for severance and related charges during the three months ending January30, 2010. The remaining facility lease charges included in the restructuring liabilities will be paid out through fiscal 2018.

Note 9. Commitments and Conting

Note 9. Commitments and Contingencies
	9 Months Ended Oct. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 9. Commitments and Contingencies	Note 9. Commitments and Contingencies Warranty obligations The following table presents changes in the warranty accrual included in accrued liabilities during the three and nine months ended October31, 2009 and November1, 2008 (in thousands): Three Months Ended Nine Months Ended October31, 2009 November1, 2008 October31, 2009 November1, 2008 Warranty accrual: Beginning balance $ 3,421 $ 2,521 $ 2,094 $ 2,532 Accruals (169 ) 286 2,799 1,106 Settlements (1,308 ) (367 ) (2,949 ) (1,198 ) Ending balance $ 1,944 $ 2,440 $ 1,944 $ 2,440 Intellectual property indemnification The Company has agreed to indemnify certain customers for claims made against the Companys products, where such claims allege infringement of third party intellectual property rights, including, but not limited to, patents, registered trademarks and/or copyrights. Under the aforementioned indemnification clauses, the Company may be obligated to defend the customer and pay for the damages awarded against the customer under an infringement claim, including paying for the customers attorneys fees and costs. The Companys indemnification obligations generally do not expire after termination or expiration of the agreement containing the indemnification obligation. In certain cases, there are limits on and exceptions to the Companys potential liability for indemnification. Although historically the Company has not made significant payments under these indemnification obligations, the Company cannot estimate the amount of potential future payments, if any, that it might be required to make as a result of these agreements. However, the maximum potential amount of any future payments that the Company could be required to make under these indemnification obligations could be significant. Purchase commitments On February28, 2005 and as amended on March31, 2005, the Company entered into an agreement with a foundry to reserve and secure foundry fabrication capacity for a fixed number of wafers at agreed upon prices for a period of five and a half years beginning on October1, 2005. In return, the Company agreed to pay the foundry $174.2million over a period of 18 months. The amendment extended the term of the agreement and the agreed upon pricing terms until December31, 2015. As of October31, 2009, payments totaling $174.2million (included in prepaids and other current assets and other non-current assets) had been made and approximately $162.2 million of the prepayment had been utilized as of October31, 2009. At October31, 2009, there were no outstanding commitments under the agreement. Under the Companys manufacturing relationships with foundries, cancellation of all outstanding purchase orders are allowed but require repayment of all expenses incurred through the date of cancellation. As of October31, 2009, the amount of open purchase orders to these foundries was approximately $139.7million. As of October31, 2009, the Company had

Note 10. Stock-Based Compensati

Note 10. Stock-Based Compensation
	9 Months Ended Oct. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 10. Stock-Based Compensation	Note 10. Stock-Based Compensation The following table presents details of stock-based compensation expenses by functional line item (in thousands): Three Months Ended Nine Months Ended October31, 2009 November1, 2008 October31, 2009 November1, 2008 Cost of goods sold $ 2,389 $ 1,795 $ 8,315 $ 8,623 Research and development 24,134 30,607 68,064 93,537 Selling and marketing 4,087 6,896 11,457 20,403 General and administrative 3,767 280 8,204 9,868 $ 34,377 $ 39,578 $ 96,040 $ 132,431 Stock-based compensation of $1.8 million and $3.6 million was capitalized in inventory as of October31, 2009 and January31, 2009, respectively. The following assumptions were used for each respective period to calculate the weighted average fair value of each option award on the date of grant using the Black-Scholes option pricing model: Stock Option Plans EmployeeStockPurchasePlan Three Months Ended Three Months Ended October31, 2009 November1, 2008 October31, 2009 November1, 2008 Volatility 53 % 44 % 51 % 45 % Expected life (in years) 4.6 5.3 1.3 1.3 Risk-free interest rate 2.5 % 3.3 % 0.7 % 4.3 % Dividend yield Weighted average fair value $ 6.98 $ 4.99 $ 4.14 $ 6.05 Stock Option Plans EmployeeStockPurchasePlan Nine Months Ended Nine Months Ended October31, 2009 November1, 2008 October31, 2009 November1, 2008 Volatility 53 % 44 % 51 % 45 % Expected life (in years) 4.6 5.2 1.3 1.3 Risk-free interest rate 2.1 % 3.3 % 0.7 % 4.3 % Dividend yield Weighted average fair value $ 5.82 $ 5.23 $ 4.14 $ 6.05 The Company established the expected term for employee options and awards, as well as expected forfeiture rates, based on the historical settlement experience and after giving consideration to vesting schedules. Expected volatility was developed based on the average of the Companys historical daily stock price volatility. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of the Companys stock options. Forfeitures were estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates.

Note 11. Shareholders' Equity

Note 11. Shareholders' Equity
	9 Months Ended Oct. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 11. Shareholders' Equity	Note 11. Shareholders Equity Stock plans In April1995, the Company adopted the 1995 Stock Option Plan (the Option Plan). The Option Plan, as amended, had 383.4million common shares reserved for issuance thereunder as of October31, 2009. Options granted under the Option Plan generally have a term of ten years and generally must be issued at prices not less than 100% and 85% for incentive and nonqualified stock options, respectively, of the fair market value of the stock on the date of grant. Incentive stock options granted to shareholders who own greater than 10% of the outstanding stock are for periods not to exceed five years and must be issued at prices not less than 110% of the fair market value of the stock on the date of grant. The options generally vest 20% one year after the vesting commencement date, and the remaining shares vest one-sixtieth per month over the remaining 48 months. Options granted under the Option Plan subsequent to March1, 2000 may only be exercised upon or after vesting. In August 1997, the Company adopted the 1997 Directors Stock Option Plan (the 1997 Directors Plan). Under the 1997 Directors Plan, an outside director was granted an option to purchase 30,000 common shares upon appointment to the Companys Board of Directors. These options vested 20% one year after the vesting commencement date and remaining shares vest one-sixtieth per month over the remaining 48 months. An outside director was also granted an option to purchase 6,000 common shares on the date of each annual meeting of the shareholders. These options vested one-twelfth per month over 12 months after the fourth anniversary of the vesting commencement date. Options granted under the 1997 Directors Plan could be exercised prior to vesting. The 1997 Directors Plan was terminated in October 2007. In October 2007, the Company adopted the 2007 Directors Stock Incentive Plan (the 2007 Directors Plan). The 2007 Directors Plan had 750,000 common shares reserved for issuance thereunder as of October31, 2009. Under the 2007 Directors Plan, an outside director is granted an option to purchase 50,000 common shares upon appointment to the Companys Board of Directors. These options vest one-third on the one year anniversary of the date of grant and one-thirdof the shares on each anniversary thereafter. An outside director who has served on the Companys Board of Directors for the prior six months is also granted an option to purchase 12,000 common shares on the date of each annual meeting of the Companys shareholders. These options vest 100% on the earlier of the date of the next annual general meeting of shareholders or the one year anniversary of the date of grant. Under the Option Plan and the 2007 Directors Plan, the Company may also grant restricted stock awards, which may be subject to vesting, and stock unit awards, which are denominated in shares of stock, but may be settled in cash or tradable shares of the Companys common shares upon vesting, as determined by the Company at the time of grant. Employee stock purchase plan In June2000, the Company adopted the 2000 Employee Stock Purchase Plan (the Purchase Plan), and on October22, 20

Note 12. Income Taxes

Note 12. Income Taxes
	9 Months Ended Oct. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 12. Income Taxes	Note 12. Income Taxes For the three months ended October31, 2009 and November1, 2008, the Companys effective tax rate was an income tax benefit of 19.5% and an income tax expense 15.9%, respectively. The income tax provision for these periods was affected by non-tax-deductible expenses such as stock-based compensation expense, amortization of acquired intangibles and accrual of unrecognized tax benefits, interest and penalties associated with unrecognized tax positions. For the three months ended October31, 2009, the effective tax rate was impacted by a reduction of unrecognized tax benefits of approximately $27.4 million due to the expiration of the statute of limitation in multiple jurisdictions. Additionally, there was a reduction of unrecognized tax benefits for $2.4 million due to a settlement of an audit in a non-US jurisdiction. Also there was an adjustment of taxes payable related to periods in 2002 through 2006 of a non-US entity which resulted in a tax benefit of $5.3 million. The Companys total unrecognized tax benefits as of October31, 2009 and November1, 2008 were $93.4 million and $112.8 million, respectively. The Company also recorded a liability for potential interest and penalties of $20.5million and $7.7million, respectively, as of October31, 2009. For the three months ended October31, 2009, the provision for income taxes in several foreign jurisdictions was reduced by $29.9 million because of several factors including the statute of limitations lapsed for uncertain tax positions, the favorable settlement of an audit in a non-U.S. jurisdiction, and the impact of a revaluation of certain unrecognized tax benefits due to tax rate change in a non-U.S. jurisdiction effective during the quarter. If recognized, all of the liabilities recorded to date, except the portion attributable to the foreign exchange gains and losses, will impact the effective tax rate. The Company conducts business globally and, as a result, one or more of its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company is subject to examination by tax authorities throughout the world, including such major jurisdictions as Singapore, Japan, Taiwan, China, India, Germany, Israel, Netherlands, Switzerland, the United Kingdom, Canada, Malaysia and the United States. The Company is subject to non-U.S. income tax examinations for years beginning with fiscal year 2002 and for U.S. income tax examinations beginning with fiscal year 2007.

Note 13. Related Party Transact

Note 13. Related Party Transactions
	9 Months Ended Oct. 31, 2009 USD / shares
Notes to Financial Statements [Abstract]
Note 13. Related Party Transactions	Note 13. Related Party Transactions On August19, 2005, through its subsidiaries MSI and MIL, the Company entered into a License and Manufacturing Services Agreement with C2 Microsystems, Inc. (C2Micro License Agreement). The C2Micro License Agreement has substantially similar terms as other license and manufacturing services agreements of the Company with other third parties for similar technology. The Company recognized $0.9 million and none of revenue under the C2Micro License Agreement during the three months ended October31, 2009 and November1, 2008, respectively. The Company recognized $0.9 million and $2.6 million of revenue under the C2Micro License Agreement during the nine months ended October31, 2009 and November1, 2008, respectively. As of October31, 2009, the Company had received a prepayment of $0.6 million from C2 Microsystems for the manufacturing of certain products. Dr.Sehat Sutardja, the Companys President and Chief Executive Officer, and Weili Dai, the Vice President of Sales for Communications and Consumer Business of MSI and Vice President and General Manager of Communications and Computing Business Unit of MSI, through their ownership and control of Estopia LLC, are indirect shareholders of C2 Microsystems. Dr.Sehat Sutardja and Weili Dai are husband and wife. Kuo Wei (Herbert) Chang, a member of the Companys Board of Directors, is a member of the board of directors of C2 Microsystems and, through his ownership and control of C-Squared venture entities, is also an indirect shareholder of C2 Microsystems. Dr.Pantas Sutardja, the Companys Vice President, Chief Technology Officer and Chief Research and Development Officer, is also a shareholder of C2 Microsystems. On January8, 2007, the Company, through MIL, entered into a Library/IP/Software Evaluation License Agreement (the Evaluation License Agreement) with VeriSilicon Holdings Co., Ltd. (VeriSilicon). The Evaluation License Agreement has no consideration. The Company also incurred $50 and $31,000 of royalty expense from VeriSilicon under a core license agreement assumed from its acquisition of the semiconductor design business of UTStarcom, Inc. during the three months ended October31, 2009 and November1, 2008, respectively. The Company incurred $6,000 and $140,000 of royalty expense under the same license agreement during the nine months ended October31, 2009 and November1, 2008, respectively. This core license agreement had been assumed by VeriSilicon after its acquisition of certain assets from LSI Corporation. On March30, 2009, the Company entered into an addendum to this core license agreement with VeriSilicon. The Company recorded a license fee of $0.5 million and maintenance fees of $80,000 during the first quarter ended May2, 2009. On June30, 2009, the Company entered into a second addendum to this technology license agreement with VeriSilicon for VeriSilicon to perform services for a fee of $40,000. Weili Dais brother (and Dr.Sehat Sutardjas brother-in-law) is the Chairman, President and Chief Executive Officer of VeriSilicon. Ms.Dai is also a shareholder of VeriSilicon. On September28, 2007, the Company, through MIL, entered into a Master Technology

Document Information

Document Information
	9 Months Ended Oct. 31, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2009-10-31

Entity Information

Entity Information (USD $)
	9 Months Ended Oct. 31, 2009	Nov. 30, 2009
Entity [Text Block]
Trading Symbol	MRVL
Entity Registrant Name	MARVELL TECHNOLOGY GROUP LTD
Entity Central Index Key	0001058057
Current Fiscal Year End Date	--01-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		624,839,852