Cover
Cover - shares shares in Millions | 9 Months Ended | |
Oct. 28, 2023 | Nov. 24, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 28, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-40357 | |
Entity Registrant Name | MARVELL TECHNOLOGY, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-3971597 | |
Entity Address, Address Line One | 1000 N. West Street, Suite 1200 | |
Entity Address, City or Town | Wilmington | |
Entity Address, State or Province | DE | |
Entity Address, Postal Zip Code | 19801 | |
City Area Code | 302 | |
Local Phone Number | 295-4840 | |
Title of 12(b) Security | Common Stock, par value $0.002 per share | |
Trading Symbol | MRVL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 864.5 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001835632 | |
Current Fiscal Year End Date | --02-03 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 725.6 | $ 911 |
Accounts receivable, net | 1,214.6 | 1,192.2 |
Inventories | 941.5 | 1,068.3 |
Prepaid expenses and other current assets | 91.5 | 109.6 |
Total current assets | 2,973.2 | 3,281.1 |
Property and equipment, net | 701.6 | 577.4 |
Goodwill | 11,586.9 | 11,586.9 |
Acquired intangible assets, net | 4,290.4 | 5,102 |
Deferred tax assets | 759.5 | 465.9 |
Other non-current assets | 1,402.8 | 1,508.8 |
Total assets | 21,714.4 | 22,522.1 |
Current liabilities: | ||
Accounts payable | 419.1 | 465.8 |
Accrued liabilities | 1,119.2 | 1,092 |
Accrued employee compensation | 245 | 244.5 |
Short-term debt | 96.3 | 584.4 |
Total current liabilities | 1,879.6 | 2,386.7 |
Long-term debt | 4,089.6 | 3,907.7 |
Other non-current liabilities | 511.8 | 590.5 |
Total liabilities | 6,481 | 6,884.9 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity: | ||
Common stock, $0.002 par value | 1.7 | 1.7 |
Additional paid-in capital | 14,805.2 | 14,512 |
Accumulated other comprehensive loss | (1.4) | 0 |
Retained earnings | 427.9 | 1,123.5 |
Total stockholders’ equity | 15,233.4 | 15,637.2 |
Total liabilities and stockholders’ equity | $ 21,714.4 | $ 22,522.1 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Oct. 28, 2023 | Jan. 28, 2023 |
Statement of Financial Position [Abstract] | ||
Common shares, par value (in dollars per share) | $ 0.002 | $ 0.002 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Income Statement [Abstract] | ||||
Net revenue | $ 1,418.6 | $ 1,537.3 | $ 4,081.2 | $ 4,501.1 |
Cost of goods sold | 867.4 | 760 | 2,451.7 | 2,186.9 |
Gross profit | 551.2 | 777.3 | 1,629.5 | 2,314.2 |
Operating expenses: | ||||
Research and development | 481.1 | 448.1 | 1,436.6 | 1,341.2 |
Selling, general and administrative | 213 | 207.8 | 622 | 640.2 |
Legal settlement | 0 | 0 | 0 | 100 |
Restructuring related charges | 3.4 | 15.6 | 105.3 | 18.1 |
Total operating expenses | 697.5 | 671.5 | 2,163.9 | 2,099.5 |
Operating income (loss) | (146.3) | 105.8 | (534.4) | 214.7 |
Interest income | 1.7 | 1.5 | 5.8 | 2.8 |
Interest expense | (52.6) | (45.2) | (159.1) | (121.3) |
Other income, net | 9.7 | 3.2 | 16.3 | 12.1 |
Interest and other loss, net | (41.2) | (40.5) | (137) | (106.4) |
Income (loss) before income taxes | (187.5) | 65.3 | (671.4) | 108.3 |
Provision (benefit) for income taxes | (23.2) | 52 | (130.7) | 256.4 |
Net income (loss) | $ (164.3) | $ 13.3 | $ (540.7) | $ (148.1) |
Net income (loss) per share - basic (in dollars per share) | $ (0.19) | $ 0.02 | $ (0.63) | $ (0.17) |
Net income (loss) per share - diluted (in dollars per share) | $ (0.19) | $ 0.02 | $ (0.63) | $ (0.17) |
Weighted-average shares: | ||||
Basic (in shares) | 862.6 | 852.6 | 860.1 | 850.5 |
Diluted (in shares) | 862.6 | 858.4 | 860.1 | 850.5 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (164.3) | $ 13.3 | $ (540.7) | $ (148.1) |
Other comprehensive loss, net of tax: | ||||
Net change in unrealized loss on cash flow hedges | (0.4) | (0.8) | (1.4) | (0.8) |
Other comprehensive loss, net of tax | (0.4) | (0.8) | (1.4) | (0.8) |
Comprehensive income (loss), net of tax | $ (164.7) | $ 12.5 | $ (542.1) | $ (148.9) |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Balance at beginning of period (in shares) at Jan. 29, 2022 | 846.7 | ||||
Balance at beginning of period at Jan. 29, 2022 | $ 15,702.1 | $ 1.7 | $ 14,209 | $ 0 | $ 1,491.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock in connection with equity incentive plans (in shares) | 4.1 | ||||
Issuance of common stock in connection with equity incentive plans | 2.4 | 2.4 | |||
Tax withholdings related to net share settlement of restricted stock units | (137.6) | (137.6) | |||
Stock-based compensation | 129.7 | 129.7 | |||
Repurchase of common stock (in shares) | (0.3) | ||||
Repurchase of common stock | (15) | (15) | |||
Cash dividends declared and paid ($0.06 per share) | (50.9) | (50.9) | |||
Net income (loss) | (165.7) | (165.7) | |||
Balance at end of period (in shares) at Apr. 30, 2022 | 850.5 | ||||
Balance at end of period at Apr. 30, 2022 | 15,465 | $ 1.7 | 14,188.5 | 0 | 1,274.8 |
Balance at beginning of period (in shares) at Jan. 29, 2022 | 846.7 | ||||
Balance at beginning of period at Jan. 29, 2022 | $ 15,702.1 | $ 1.7 | 14,209 | 0 | 1,491.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Repurchase of common stock (in shares) | (2.3) | ||||
Repurchase of common stock | $ (115) | ||||
Net income (loss) | (148.1) | ||||
Other comprehensive loss | (0.8) | ||||
Balance at end of period (in shares) at Oct. 29, 2022 | 853.1 | ||||
Balance at end of period at Oct. 29, 2022 | 15,559 | $ 1.7 | 14,367.9 | (0.8) | 1,190.2 |
Balance at beginning of period (in shares) at Apr. 30, 2022 | 850.5 | ||||
Balance at beginning of period at Apr. 30, 2022 | 15,465 | $ 1.7 | 14,188.5 | 0 | 1,274.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock in connection with equity incentive plans (in shares) | 2.9 | ||||
Issuance of common stock in connection with equity incentive plans | 48.9 | 48.9 | |||
Tax withholdings related to net share settlement of restricted stock units | (34.1) | (34.1) | |||
Stock-based compensation | 147.2 | 147.2 | |||
Repurchase of common stock (in shares) | (0.9) | ||||
Repurchase of common stock | (50) | (50) | |||
Cash dividends declared and paid ($0.06 per share) | (51.1) | (51.1) | |||
Net income (loss) | 4.3 | 4.3 | |||
Balance at end of period (in shares) at Jul. 30, 2022 | 852.5 | ||||
Balance at end of period at Jul. 30, 2022 | 15,530.2 | $ 1.7 | 14,300.5 | 0 | 1,228 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock in connection with equity incentive plans (in shares) | 1.7 | ||||
Issuance of common stock in connection with equity incentive plans | 1.1 | 1.1 | |||
Tax withholdings related to net share settlement of restricted stock units | (29.5) | (29.5) | |||
Stock-based compensation | $ 145.8 | 145.8 | |||
Repurchase of common stock (in shares) | (1.1) | (1.1) | |||
Repurchase of common stock | $ (50) | (50) | |||
Cash dividends declared and paid ($0.06 per share) | (51.1) | (51.1) | |||
Net income (loss) | 13.3 | 13.3 | |||
Other comprehensive loss | (0.8) | (0.8) | |||
Balance at end of period (in shares) at Oct. 29, 2022 | 853.1 | ||||
Balance at end of period at Oct. 29, 2022 | 15,559 | $ 1.7 | 14,367.9 | (0.8) | 1,190.2 |
Balance at beginning of period (in shares) at Jan. 28, 2023 | 856.1 | ||||
Balance at beginning of period at Jan. 28, 2023 | 15,637.2 | $ 1.7 | 14,512 | 0 | 1,123.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock in connection with equity incentive plans (in shares) | 3.8 | ||||
Issuance of common stock in connection with equity incentive plans | 8.3 | 8.3 | |||
Tax withholdings related to net share settlement of restricted stock units | (72.6) | (72.6) | |||
Stock-based compensation | 142.2 | 142.2 | |||
Cash dividends declared and paid ($0.06 per share) | (51.4) | (51.4) | |||
Net income (loss) | (168.9) | (168.9) | |||
Other comprehensive loss | (0.9) | (0.9) | |||
Balance at end of period (in shares) at Apr. 29, 2023 | 859.9 | ||||
Balance at end of period at Apr. 29, 2023 | 15,493.9 | $ 1.7 | 14,589.9 | (0.9) | 903.2 |
Balance at beginning of period (in shares) at Jan. 28, 2023 | 856.1 | ||||
Balance at beginning of period at Jan. 28, 2023 | 15,637.2 | $ 1.7 | 14,512 | 0 | 1,123.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (540.7) | ||||
Other comprehensive loss | (1.4) | ||||
Balance at end of period (in shares) at Oct. 28, 2023 | 864.3 | ||||
Balance at end of period at Oct. 28, 2023 | 15,233.4 | $ 1.7 | 14,805.2 | (1.4) | 427.9 |
Balance at beginning of period (in shares) at Apr. 29, 2023 | 859.9 | ||||
Balance at beginning of period at Apr. 29, 2023 | 15,493.9 | $ 1.7 | 14,589.9 | (0.9) | 903.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock in connection with equity incentive plans (in shares) | 3.4 | ||||
Issuance of common stock in connection with equity incentive plans | 52.1 | 52.1 | |||
Tax withholdings related to net share settlement of restricted stock units | (51.2) | (51.2) | |||
Stock-based compensation | 154 | 154 | |||
Cash dividends declared and paid ($0.06 per share) | (51.7) | (51.7) | |||
Net income (loss) | (207.5) | (207.5) | |||
Other comprehensive loss | (0.1) | (0.1) | |||
Balance at end of period (in shares) at Jul. 29, 2023 | 863.3 | ||||
Balance at end of period at Jul. 29, 2023 | 15,389.5 | $ 1.7 | 14,744.8 | (1) | 644 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock in connection with equity incentive plans (in shares) | 1.8 | ||||
Issuance of common stock in connection with equity incentive plans | 0.6 | 0.6 | |||
Tax withholdings related to net share settlement of restricted stock units | (44.9) | (44.9) | |||
Stock-based compensation | 154.7 | 154.7 | |||
Repurchase of common stock (in shares) | (0.8) | ||||
Repurchase of common stock | (50) | (50) | |||
Cash dividends declared and paid ($0.06 per share) | (51.8) | (51.8) | |||
Net income (loss) | (164.3) | (164.3) | |||
Other comprehensive loss | (0.4) | (0.4) | |||
Balance at end of period (in shares) at Oct. 28, 2023 | 864.3 | ||||
Balance at end of period at Oct. 28, 2023 | $ 15,233.4 | $ 1.7 | $ 14,805.2 | $ (1.4) | $ 427.9 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||||
Oct. 28, 2023 | Jul. 29, 2023 | Apr. 29, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividends declared (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 |
Cash dividends paid (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 |
UNAUDITED CONDENSED CONSOLIDA_7
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (540.7) | $ (148.1) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 226 | 227 |
Stock-based compensation | 454.5 | 421.7 |
Amortization of acquired intangible assets | 811.6 | 814.2 |
Amortization of inventory fair value adjustment associated with acquisitions | 0 | 26 |
Restructuring related impairment charges | 32.2 | 4.9 |
Deferred income taxes | (283.7) | 53.6 |
Other expense, net | 39.9 | 53.6 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | (22.4) | (341.5) |
Prepaid expenses and other assets | 14.4 | (382.4) |
Inventories | 123.1 | (263.4) |
Accounts payable | (87.5) | (33.9) |
Accrued employee compensation | 0.7 | 6.3 |
Accrued liabilities and other non-current liabilities | 55.8 | 499.3 |
Net cash provided by operating activities | 823.9 | 937.3 |
Cash flows from investing activities: | ||
Purchases of technology licenses | (3.3) | (9.1) |
Purchases of property and equipment | (265.3) | (152.2) |
Acquisitions, net of cash acquired | (5.5) | (103) |
Other, net | (0.2) | 0.1 |
Net cash used in investing activities | (274.3) | (264.2) |
Cash flows from financing activities: | ||
Repurchases of common stock | (50) | (115) |
Proceeds from employee stock plans | 61.1 | 52.5 |
Tax withholding paid on behalf of employees for net share settlement | (168.7) | (201.2) |
Dividend payments to stockholders | (154.9) | (153.1) |
Payments on technology license obligations | (110.2) | (103.6) |
Proceeds from borrowings | 1,295.3 | 200 |
Principal payments of debt | (1,600.6) | (243.8) |
Payment of equity and debt financing costs | (7) | 0 |
Other, net | 0 | 1 |
Net cash used in financing activities | (735) | (563.2) |
Net increase (decrease) in cash and cash equivalents | (185.4) | 109.9 |
Cash and cash equivalents at beginning of period | 911 | 613.5 |
Cash and cash equivalents at end of period | $ 725.6 | $ 723.4 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements of Marvell Technology, Inc. (“MTI”), a Delaware corporation, and its wholly owned subsidiaries (the “Company”), as of and for the three and nine months ended October 28, 2023, have been prepared as required by the U.S. Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted as permitted by the SEC. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the Company’s fiscal year 2023 audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 28, 2023. In the opinion of management, the financial statements include all adjustments, including normal recurring adjustments and other adjustments, that are considered necessary for fair presentation of the Company’s financial position and results of operations. All inter-company accounts and transactions have been eliminated. Operating results for the periods presented herein are not necessarily indicative of the results that may be expected for the entire year. Certain prior period amounts have been reclassified to conform to current period presentation. These financial statements should also be read in conjunction with the Company’s critical accounting policies included in the Company’s Annual Report on Form 10-K for the year ended January 28, 2023 and those included in this Quarterly Report on Form 10-Q below. All dollar amounts in the financial statements and tables in these notes, except per share amounts, are stated in millions of U.S. dollars unless otherwise noted. The Company’s fiscal year is the 52- or 53-week period ending on the Saturday closest to January 31. Accordingly, every fifth or sixth fiscal year will have a 53-week period. The additional week in a 53-week year is added to the fourth quarter, making such quarter consist of 14 weeks. Fiscal 2023 had a 52-week year. Fiscal 2024 is a 53-week year. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, provisions for sales returns and allowances, inventory excess and obsolescence, goodwill and other intangible assets, restructuring, income taxes, litigation and other contingencies. Actual results could differ from these estimates and such differences could affect the results of operations reported in future periods. In the current macroeconomic environment, these estimates could require increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, these estimates may change materially in future periods. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Oct. 28, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Not Yet Effective In November 2023, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update (“ASU”) to improve reportable segment disclosures. The update requires disclosure of incremental segment information on an annual and interim basis. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. Early adoption is permitted. The Company is evaluating the impact that this new standard will have on the Company’s consolidated financial statements. |
Revenue
Revenue | 9 Months Ended |
Oct. 28, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The majority of the Company’s revenue is generated from sales of the Company’s products. The following table summarizes net revenue disaggregated by end market (in millions, except percentages): Three Months Ended Nine Months Ended October 28, % of Total October 29, % of Total October 28, % of Total October 29, % of Total Net revenue by end market: Data center $ 555.8 39 % $ 627.3 41 % $ 1,451.4 36 % $ 1,911.2 42 % Enterprise networking 271.1 19 % 376.0 24 % 963.4 24 % 1,002.9 22 % Carrier infrastructure 316.5 22 % 271.4 18 % 881.9 22 % 808.6 18 % Consumer 168.7 12 % 178.4 12 % 478.5 12 % 521.3 12 % Automotive/industrial 106.5 8 % 84.2 5 % 306.0 6 % 257.1 6 % $ 1,418.6 $ 1,537.3 $ 4,081.2 $ 4,501.1 The following table summarizes net revenue disaggregated by primary geographical market based on destination of shipment (in millions, except percentages): Three Months Ended Nine Months Ended October 28, % of Total October 29, % of Total October 28, % of Total October 29, % of Total Net revenue based on destination of shipment: China $ 605.3 43 % $ 604.1 39 % $ 1,690.3 41 % $ 1,941.7 43 % United States 217.1 15 % 184.6 12 % 607.2 15 % 519.1 12 % Finland 158.4 11 % 47.4 3 % 353.7 9 % 125.4 3 % Singapore 73.5 5 % 134.5 9 % 256.7 6 % 251.7 6 % Thailand 94.5 7 % 115.2 7 % 215.9 5 % 289.4 6 % Malaysia 31.6 2 % 85.1 6 % 169.5 4 % 280.2 6 % Taiwan 22.9 2 % 89.4 6 % 135.8 3 % 204.3 5 % Japan 37.5 3 % 70.1 5 % 125.4 3 % 208.2 5 % Other 177.8 12 % 206.9 13 % 526.7 14 % 681.1 14 % $ 1,418.6 $ 1,537.3 $ 4,081.2 $ 4,501.1 These destinations of shipment are not necessarily indicative of the geographic location of the Company’s end customers or the country in which the Company’s end customers sell devices containing the Company’s products. For example, a substantial majority of the shipments made to China relate to sales to non-China based customers that have factories or contract manufacturing operations located within China. The following table summarizes net revenue disaggregated by customer type (in millions, except percentages): Three Months Ended Nine Months Ended October 28, % of Total October 29, % of Total October 28, % of Total October 29, % of Total Net revenue by customer type: Direct customers $ 937.6 66 % $ 986.0 64 % $ 2,685.7 66 % $ 2,955.9 66 % Distributors 481.0 34 % 551.3 36 % 1,395.5 34 % 1,545.2 34 % $ 1,418.6 $ 1,537.3 $ 4,081.2 $ 4,501.1 Contract Liabilities Contract liabilities consist of the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration or the amount is due from the customer. Contract liability balances are comprised of deferred revenue. The amount of revenue recognized during the nine months ended October 28, 2023 that was included in deferred revenue balance at January 28, 2023 was not material. As of the end of a reporting period, some of the performance obligations associated with contracts will have been unsatisfied or only partially satisfied. In accordance with the practical expedients available in the guidance, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Sales Commissions The Company has elected to apply the practical expedient to expense commissions when incurred as the amortization period is typically one year or less. These costs are recorded in selling, general and administrative expenses in the unaudited condensed consolidated statements of operations. |
Debt
Debt | 9 Months Ended |
Oct. 28, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Summary of Borrowings and Outstanding Debt The following table summarizes the Company’s outstanding debt at October 28, 2023 and January 28, 2023 (in millions): October 28, January 28, Face Value Outstanding: 2024 Term Loan - 3-Year Tranche $ — $ 735.0 2026 Term Loan - 5-Year Tranche 721.9 787.5 Term Loan Total 721.9 1,522.5 4.200% MTG/MTI 2023 Senior Notes — 500.0 4.875% MTG/MTI 2028 Senior Notes 499.9 499.9 1.650% 2026 Senior Notes 500.0 500.0 2.450% 2028 Senior Notes 750.0 750.0 5.750% 2029 Senior Notes 500.0 — 2.950% 2031 Senior Notes 750.0 750.0 5.950% 2033 Senior Notes 500.0 — Senior Notes Total 3,499.9 2,999.9 Total borrowings $ 4,221.8 $ 4,522.4 Less: Unamortized debt discount and issuance cost (35.9) (30.3) Net carrying amount of debt $ 4,185.9 $ 4,492.1 Less: Current portion (1) 96.3 584.4 Non-current portion $ 4,089.6 $ 3,907.7 (1) As of October 28, 2023, the current portion of outstanding debt that is due within twelve months includes a portion of the 2026 Term Loan - 5-Year Tranche. The weighted average interest rate on short-term debt outstanding at October 28, 2023 and January 28, 2023 was 6.795% and 4.448%, respectively. In December 2020, the Company executed a debt agreement to obtain a 3-year $875.0 million term loan and a 5-year $875.0 million term loan. The Company also executed a debt agreement to obtain a 5-year $750.0 million revolving credit facility in December 2020, replacing its previous $500.0 million revolving credit facility. On April 12, 2021, the Company completed a debt offering and issued (i) $500.0 million of Senior Notes with a 5-year term due in 2026, (ii) $750.0 million of Senior Notes with a 7-year term due in 2028, and (iii) $750.0 million of Senior Notes with a 10-year term due in 2031. On May 4, 2021, in conjunction with the U.S. domiciliation, the Company exchanged certain existing senior notes due in 2023 and 2028 that were previously issued by the Bermuda-domiciled Marvell Technology Group Ltd. (the “MTG Senior Notes”) with like notes that are now issued by the Delaware-domiciled Marvell Technology, Inc. (the “MTI Senior Notes”). Below is further discussion of the terms of the various debt agreements. On April 14, 2023, the Company entered into an agreement to amend and restate the revolving credit facility to increase the borrowing capacity to $1.0 billion with a 5-year term and a stated floating interest rate which equates to an adjusted term Secure Overnight Financing Rate (“SOFR”) plus an applicable margin. The Company also entered into an agreement to amend the term loan to adopt SOFR interest rates and conform the maximum leverage ratio financial covenant with the amended and restated revolving credit facility agreement. On September 18, 2023, the Company completed a debt offering and issued (i) $500.0 million of Senior Notes with a 5.5-year term due in 2029 and (ii) $500.0 million of Senior Notes with a 10-year term due in 2033. 2024 and 2026 Term Loans On December 7, 2020, the Company entered into a term loan credit agreement with a lending syndicate led by JP Morgan Chase Bank, N.A (the “2024 and 2026 Term Loan Agreement”) in order to finance the acquisition of Inphi Corporation (“Inphi”). The 2024 and 2026 Term Loan Agreement provides for borrowings of $1.75 billion consisting of: (i) $875.0 million loan with a three-year term from the funding date (the “3-Year Tranche Loan”) and (ii) $875.0 million loan with a five-year term from the funding date (the “5-Year Tranche Loan” and, together with the 3-Year Tranche Loan, the “2024 and 2026 Term Loans”). On April 14, 2023, the Company entered into an amendment to the 2024 and 2026 Term Loan Agreement. The amendment modifies the existing agreement to, among other things, adopt SOFR interest rates and conform the maximum leverage ratio financial covenant with the amended and restated revolving credit agreement. The 3-Year Tranche Loan, due on April 19, 2024, which had a remaining principal of $735.0 million, was repaid in full during the quarter ended October 28, 2023. Pursuant to the amended 2024 and 2026 Term Loan Agreement, the 5-Year Tranche Loan has a stated floating interest rate which equates to reserve-adjusted SOFR + 147.5 bps. The effective interest rate for the 5-Year Tranche Loan was 5.103% as of October 28, 2023. The 5-year Tranche Loan requires scheduled principal payments at the end of each fiscal quarter equal to (i) 1.25% of the aggregate principal amount on the term funding date for the first four full fiscal quarters following the term loan funding date, (ii) 2.50% of the aggregate principal amount on the term funding date for the fifth through twelfth full fiscal quarters following the term loan funding date, and (iii) 3.75% of the aggregate principal amount on the term funding date for each fiscal quarter following the twelfth full fiscal quarter following the term loan funding date. During the three and nine months ended October 28, 2023, the Company repaid $21.9 million and $65.6 million of the principal outstanding of the 5-Year Tranche Loan. As of October 28, 2023, the Company has $721.9 million of 5-Year Tranche Loan borrowings outstanding. The 2024 and 2026 Term Loan Agreement requires that the Company and its subsidiaries comply with covenants relating to customary matters, including with respect to creating or permitting certain liens, entering into sale and leaseback transactions, and consolidating, merging, liquidating or dissolving. It also prohibits subsidiaries of the Company from incurring additional indebtedness, subject to certain exceptions, and requires that the Company maintain a leverage ratio financial covenant as of the end of any fiscal quarter. 2023 Revolving Credit Facility On December 7, 2020, the Company entered into a revolving line of credit agreement with a lending syndicate led by JP Morgan Chase Bank, N.A for borrowings of up to $750.0 million. On April 14, 2023, the Company entered into an agreement to amend and restate the credit facility to increase the borrowing capacity to $1.0 billion (as so amended and restated, the “2023 Revolving Credit Facility”). The 2023 Revolving Credit Facility has a 5-year term and a stated floating interest rate which equates to an adjusted term SOFR plus an applicable margin. The borrowings from the Revolving Loans will be used for general corporate purposes of the Company. The Company may prepay any borrowings at any time without premium or penalty. An unused commitment fee is payable quarterly based on unused balances at a rate that is based on the ratings of the Company’s senior unsecured long-term indebtedness. This annual rate was 0.175% at October 28, 2023. During the quarter ended October 28, 2023, the Company repaid $200.0 million of the 2023 Revolving Credit Facility which was outstanding from the first quarter of fiscal 2023. In the same quarter, the Company also drew down and repaid an additional $50.0 million from the 2023 Revolving Credit Facility. During the quarter ended July 29, 2023, the Company drew down $50.0 million on the 2023 Revolving Credit Facility and repaid $50.0 million in the same quarter. As of October 28, 2023, the 2023 Revolving Credit Facility was undrawn and available for draw down through April 14, 2028. The 2023 Revolving Credit Facility requires that the Company and its subsidiaries comply with covenants relating to customary matters. The covenants are consistent with the 2024 and 2026 Term Loan covenants discussed above. As of October 28, 2023, the Company was in compliance with its debt covenants for the credit agreements discussed above. 2029 and 2033 Senior Unsecured Notes On September 18, 2023, the Company completed an offering of (i) $500.0 million aggregate principal amount of the Company’s 5.750% Senior Notes due 2029 (the “2029 Senior Notes”) and (ii) $500.0 million aggregate principal amount of the Company’s 5.950% Senior Notes due 2033 (the “2033 Senior Notes”, and, together with the 2029 Senior Notes, the “Senior Notes”). The 2029 Senior Notes mature on February 15, 2029 and the 2033 Senior Notes mature on September 15, 2033. The stated and effective interest rates for the 2029 Senior Notes are 5.750% and 5.891%, respectively. The stated and effective interest rates for the 2033 Senior Notes are 5.950% and 6.082%, respectively. The Company may redeem the Senior Notes, in whole or in part, at any time prior to their maturity at the redemption prices set forth in Senior Notes. In addition, upon the occurrence of a change of control repurchase event (which involves the occurrence of both a change of control and a ratings event involving the Senior Notes being rated below investment grade), the Company will be required to make an offer to repurchase the Senior Notes at a price equal to 101% of the principal amount of the notes, plus accrued and unpaid interest to, but excluding, the repurchase date. The indenture governing the Senior Notes also contains certain limited covenants restricting the Company’s ability to incur certain liens, enter into certain sale and leaseback transactions and merge or consolidate with any other entity or convey, transfer or lease all or substantially all of the Company’s properties or assets to another person, which, in each case, are subject to certain qualifications and exceptions. As of October 28, 2023, the Company had $1.0 billion Senior Notes borrowings outstanding. 2026, 2028, and 2031 Senior Unsecured Notes On April 12, 2021, the Company completed an offering of (i) $500.0 million aggregate principal amount of the Company’s 1.650% Senior Notes due 2026 (the “2026 Senior Notes”), (ii) $750.0 million aggregate principal amount of the Company’s 2.450% Senior Notes due 2028 (the “2028 Senior Notes”) and (iii) $750.0 million aggregate principal amount of the Company’s 2.950% Senior Notes due 2031 (the “2031 Senior Notes”, and, together with the 2026 Senior Notes and the 2028 Senior Notes, the “Senior Notes”). On October 8, 2021, the Senior Notes issued on April 12, 2021 were exchanged for new notes. The terms of the new notes issued in the exchange are substantially identical to the notes issued in April 2021, except that the new notes are registered under the Securities Act of 1933, as amended (the “Securities Act”) and the transfer restrictions and registration rights applicable to the Senior Notes issued in April 2021 do not apply to the new notes. The 2026 Senior Notes mature on April 15, 2026, the 2028 Senior Notes mature on April 15, 2028, and the 2031 Senior Notes mature on April 15, 2031. The stated and effective interest rates for the 2026 Senior Notes are 1.650% and 1.839%, respectively. The stated and effective interest rates for the 2028 Senior Notes are 2.450% and 2.554%, respectively. The stated and effective interest rates for the 2031 Senior Notes are 2.950% and 3.043%, respectively. The Company may redeem the Senior Notes, in whole or in part, at any time prior to their respective maturity at the redemption prices set forth in the indenture governing the Senior Notes. In addition, upon the occurrence of a change of control repurchase event (which involves the occurrence of both a change of control and a ratings event involving the Senior Notes being rated below investment grade), the Company will be required to make an offer to repurchase the Senior Notes at a price equal to 101% of the principal amount of the notes, plus accrued and unpaid interest to, but excluding, the repurchase date. The indenture governing the Senior Notes also contains certain limited covenants restricting the Company’s ability to incur certain liens, enter into certain sale and leaseback transactions and merge or consolidate with any other entity or convey, transfer or lease all or substantially all of the Company’s properties or assets to another person, which, in each case, are subject to certain qualifications and exceptions. As of October 28, 2023, the Company had $2.0 billion Senior Notes borrowings outstanding. 2023 and 2028 Senior Unsecured Notes On June 22, 2018, the Company’s Bermuda-based parent company Marvell Technology Group, Ltd. (“MTG”) completed a public offering of (i) $500.0 million aggregate principal amount of 4.200% Senior Notes due 2023 (the “MTG 2023 Notes”) and (ii) $500.0 million aggregate principal amount of 4.875% Senior Notes due 2028 (the “MTG 2028 Notes” and, together with the MTG 2023 Notes, the “MTG Senior Notes”). In April 2021, in conjunction with the Company’s U.S. domiciliation, the Company commenced Exchange Offers on April 19, 2021 for the outstanding $1.0 billion in aggregate principal amount of the MTG Senior Notes outstanding in exchange for corresponding senior notes to be issued by the Company’s U.S. domiciled parent MTI. MTI made an offer to (i) exchange any and all of the outstanding MTG 2023 Notes for up to an aggregate principal amount of $500.0 million of new 4.200% Senior Notes due 2023 issued by MTI (the “MTI 2023 Notes”) and to (ii) exchange any and all of the outstanding MTG 2028 Notes for up to an aggregate principal amount of $500.0 million of new 4.875% Senior Notes due 2028 issued by MTI (the “MTI 2028 Notes” and, together with the MTI 2023 Notes, the “MTI Senior Notes”). Each new series of MTI Senior Notes have the same interest rate, maturity date, redemption terms and interest payment dates and are subject to substantially similar covenants as the corresponding series of the MTG Senior Notes for which they were offered in exchange. The settlement of the Exchange Offers occurred on May 4, 2021 with $433.9 million aggregate principal amount of the MTG 2023 Notes and $479.5 million aggregate principal amount of the MTG 2028 Notes. The exchange was accounted for as a debt modification in accordance with applicable accounting guidance. On December 16, 2021, the MTI Senior Notes issued on May 4, 2021 were exchanged for new notes. The terms of the new notes issued in the exchange are substantially identical to the notes issued in May 2021, except that the new notes are registered under the Securities Act and the transfer restrictions and registration rights applicable to the MTI Senior Notes issued in May 2021 do not apply to the new notes. The MTI 2023 Notes and MTG 2023 Notes with aggregate principal of $500.0 million matured on June 22, 2023 and was repaid. The MTI 2028 Notes mature on June 22, 2028. The stated and effective interest rates for the MTI 2028 Notes are 4.875% and 4.988%, respectively. The Company may redeem the MTI Senior Notes, in whole or in part, at any time prior to their maturity at the redemption prices set forth in MTI Senior Notes. In addition, upon the occurrence of a change of control repurchase event (which involves the occurrence of both a change of control and a ratings event involving the MTI Senior Notes being rated below investment grade), the Company will be required to make an offer to repurchase the MTI Senior Notes at a price equal to 101% of the principal amount of the notes, plus accrued and unpaid interest to, but excluding, the repurchase date. The indenture governing the MTI Senior Notes also contains certain limited covenants restricting the Company’s ability to incur certain liens, enter into certain sale and leaseback transactions and merge or consolidate with any other entity or convey, transfer or lease all or substantially all of the Company’s properties or assets to another person, which, in each case, are subject to certain qualifications and exceptions. The MTG 2028 Notes mature on June 22, 2028. The stated and effective interest rates for the MTG 2028 Notes are 4.875% and 4.940%, respectively. The Company may redeem the MTG Senior Notes, in whole or in part, at any time prior to their maturity at the redemption prices set forth in MTG Senior Notes. As of October 28, 2023, the Company had $499.9 million borrowings outstanding from MTI 2028 Notes and MTG 2028 Notes. Interest Expense and Future Contractual Maturities During the three and nine months ended October 28, 2023, the Company recognized $49.6 million and $152.0 million, respectively, of interest expense in its unaudited condensed consolidated statements of operations related to interest, amortization of debt issuance costs and accretion of discount associated with the outstanding debt. During the three and nine months ended October 29, 2022, the Company recognized $42.4 million and $112.7 million, respectively, of interest expense in its unaudited condensed consolidated statements of operations related to interest, amortization of debt issuance costs and accretion of discount associated with the outstanding debt. As of October 28, 2023, the aggregate future contractual maturities of the Company’s outstanding debt, at face value, were as follows (in millions): Fiscal Year Amount Remainder of 2024 $ 21.9 2025 109.4 2026 131.2 2027 959.4 2028 — Thereafter 2,999.9 Total $ 4,221.8 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Warranty Obligations The Company generally warrants that its products sold to its customers will conform to its approved specifications and be free from defects in material and workmanship under normal use and conditions for one year. The Company may offer a longer warranty period in limited situations based on product type and negotiated warranty terms with certain customers. Commitments The Company’s commitments primarily consist of wafer purchase obligations with foundry partners, supply capacity reservation payment commitments with foundries and test & assembly partners, and technology license fee obligations. Total future unconditional purchase commitments as of October 28, 2023, are as follows (in millions): Fiscal Year Purchase Commitments to Foundries and Test & Assembly Partners Technology License Fees Remainder of 2024 $ 300.8 $ 31.0 2025 716.8 149.7 2026 626.4 49.5 2027 449.4 36.4 2028 185.5 36.5 Thereafter 533.5 157.0 Total unconditional purchase commitments $ 2,812.4 $ 460.1 Technology license fees include the liabilities under agreements for technology licenses between the Company and various vendors. Under the Company’s manufacturing relationships with its foundry partners, cancellation of outstanding purchase orders is allowed but requires payment of all costs and expenses incurred through the date of cancellation, and in some cases, may result in incremental fees, loss of amounts paid in advance, or loss of priority to reserved capacity for a period of time. The Company entered into manufacturing supply capacity reservation agreements with foundries and test & assembly suppliers during the current and prior fiscal year. Under these arrangements, the Company agreed to pay capacity fees or refundable deposits to the suppliers in exchange for reserved manufacturing production capacity over the term of the agreements, which ranges from 4 to 10 years . In a ddition, the Company committed to certain purchase levels that were in line with the capacity reserved. The Company currently estimates that it has agreed to purchase level commitments of at le ast $2.4 billion of wafers, substrates, and other manufacturing products for the remainder of fiscal 2024 through fiscal 2033 under the capacity reservation agreements. In addition, total fees and refundable deposits payable under these arrangements are $104.5 million for the remainder of fiscal 2024 through fiscal 2026. Such purchase commitments are summarized in the preceding table. In September 2021, the Company entered into an IP licensing agreement with a vendor which provides complete access to the vendor’s IP portfolio for 10 years. The arrangement provides access to IP over the term of the contract, including existing IP, as well as IP in development, and to be developed in the future. The contract provides support and maintenance over the term of the contract as well. Aggregate fees of $354.0 million are payable quarterly over the contract term. Contingencies and Legal Proceedings The Company currently is, and may from time to time become, subject to claims, lawsuits, governmental inquiries, inspections or investigations and other legal proceedings (collectively, “Legal Matters”) arising in the course of its business. Such Legal Matters, even if not meritorious, could result in the expenditure of significant financial and managerial resources. During the third quarter of fiscal 2023, the Company entered into a settlement agreement with a customer in relation to a contractual dispute pursuant to which the Company agreed to pay the customer $100.0 million over several quarters. This amount has been paid in full. The Company is currently unable to predict the final outcome of its pending Legal Matters and therefore cannot determine the likelihood of loss or estimate a range of possible loss, except with respect to amounts where it has determined a loss is both probable and estimable and has made an accrual. The Company evaluates, at least on a quarterly basis, developments in its Legal Matters that could affect the amount of any accrual, as well as any developments that would result in a loss contingency to become both probable and reasonably estimable. As of the end of the third quarter of fiscal 2024, the Company recognized an aggregate amount of approximately $198.0 million of charges for product related claims, including amounts recognized in the prior quarter of which certain claims remain unresolved as of the third quarter of fiscal 2024. The ultimate outcome of these product related claims and other Legal Matters involves judgments, estimates and inherent uncertainties. An unfavorable outcome in a Legal Matter could require the Company to pay damages or could prevent the Company from selling some of its products in certain jurisdictions. While the Company cannot predict with certainty the results of the Legal Matters in which it is currently involved, the Company does not expect that the ultimate costs to resolve these Legal Matters will individually or in the aggregate have a material adverse effect on its financial condition, however, there can be no assurance that the current or any future Legal Matters will be resolved in a manner that is not adverse to the Company’s business, financial statements, results of operations or cash flows. Indemnities, Commitments and Guarantees During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These indemnities may include indemnities for general commercial obligations, indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease, and indemnities to directors and officers of the Company to the maximum extent permitted under the laws of Delaware. In addition, the Company has contractual commitments to various customers, which could require the Company to incur costs to repair an epidemic defect with respect to its products outside of the normal warranty period if such defect were to occur. The duration of these indemnities, commitments and guarantees varies, and in certain cases, is indefinite. Some of these indemnities, commitments and guarantees do not provide for any limitation of the maximum potential future payments that the Company could be obligated to make. In general, the Company does not record any liability for these indemnities, commitments and guarantees in the accompanying unaudited condensed consolidated balance sheets as the amounts cannot be reasonably estimated and are not considered probable. The Company does, however, accrue for losses for any known contingent liability, including those that may arise from indemnification provisions, when future payment is probable and estimable. Intellectual Property Indemnification In addition to the above indemnities, the Company has agreed to indemnify certain customers for claims made against the Company’s 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 as well as the attorneys’ fees and costs under an infringement claim. The Company’s indemnification obligations generally do not expire after termination or expiration of the agreement containing the indemnification obligation. Generally, but not always, there are limits on and exceptions to the Company’s potential liability for indemnification. Historically the Company has not made significant payments under these indemnification obligations and 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. The maximum potential amount of any future payments that the Company could be required to make under these indemnification obligations could be significant. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets, Net | 9 Months Ended |
Oct. 28, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets, Net | Goodwill and Acquired Intangible Assets, Net Goodwill Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired in a business combination. During fiscal 2023, the Company completed acquisitions of several companies for total purchase consideration of $103.2 million, of which $73.6 million was allocated to goodwill. The purpose of the acquisitions was to expand engineering resources staff to address customer design opportunities, access additional intellectual property and support expansion of the Company’s networking solutions. The carrying value of goodwill as of October 28, 2023 and January 28, 2023 is $11.6 billion. Acquired Intangible Assets, Net As of October 28, 2023 and January 28, 2023, net carrying amounts excluding fully amortized intangible assets are as follows (in millions, except for weighted-average remaining amortization period): October 28, 2023 Gross Carrying Amounts Accumulated Amortization Net Carrying Amounts Weighted-Average Remaining Amortization Period (Years) Developed technologies $ 5,026.0 $ (2,456.2) $ 2,569.8 4.04 Customer contracts and related relationships 2,179.0 (1,102.2) 1,076.8 3.53 Trade names 50.0 (25.2) 24.8 2.48 Total acquired amortizable intangible assets $ 7,255.0 $ (3,583.6) $ 3,671.4 3.88 IPR&D 619.0 — 619.0 n/a Total acquired intangible assets $ 7,874.0 $ (3,583.6) $ 4,290.4 January 28, 2023 Gross Carrying Amounts Accumulated Amortization Net Carrying Amounts Weighted-Average Remaining Amortization Period (Years) Developed technologies $ 5,078.0 $ (2,014.5) $ 3,063.5 4.67 Customer contracts and related relationships 2,179.0 (853.2) 1,325.8 4.24 Trade names 66.0 (32.3) 33.7 3.11 Total acquired amortizable intangible assets $ 7,323.0 $ (2,900.0) $ 4,423.0 4.53 IPR&D 679.0 — 679.0 n/a Total acquired intangible assets $ 8,002.0 $ (2,900.0) $ 5,102.0 The intangible assets are amortized on a straight-line basis over the estimated useful lives, except for certain Cavium customer contracts and related relationships, which are amortized using an accelerated method of amortization over the expected customer lives, which more closely align with the pattern of realization of economic benefits expected to be obtained. The IPR&D will be accounted for as an indefinite-lived intangible asset and will not be amortized until the underlying projects reach technological feasibility and commercial production at which point the IPR&D will be amortized over the estimated useful life. Useful lives for these IPR&D projects are expected to range between 5 to 10 years. In the event the IPR&D is abandoned, the related assets will be written off. Amortization expense for acquired intangible assets for the three and nine months ended October 28, 2023 was $269.8 million and $811.6 million , respectively. Amortization expense for acquired intangible assets for the three and nine months ended October 29, 2022 was $269.9 million and $814.2 million, respectively. The following table presents the estimated future amortization expense of acquired amortizable intangible assets as of October 28, 2023 (in millions): Fiscal Year Amount Remainder of 2024 $ 286.4 2025 1,051.8 2026 998.1 2027 829.9 2028 273.2 Thereafter 232.0 $ 3,671.4 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is an exit price representing the amount that would be received in the sale of 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 accounting guidance establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1 — Observable inputs that reflect quoted prices for identical assets or liabilities in active markets. Level 2 — Other inputs that are directly or indirectly observable in the marketplace. Level 3 — 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’s Level 1 assets include institutional money-market funds that are classified as cash equivalents, and marketable equity investments that are classified as other non-current assets and which are valued primarily using quoted market prices. The Company’s Level 2 assets include time deposits, as the market inputs used to value these instruments consist of market yield. In addition, forward contracts and the severance pay fund are classified within Level 2 of the fair value hierarchy as the valuation inputs are based on quoted prices and market observable data of similar instruments. The tables below set forth, by level, the Company’s assets and liabilities that are measured at fair value on a recurring basis. The tables do not include assets and liabilities that are measured at historical cost or any basis other than fair value (in millions): Fair Value Measurements at October 28, 2023 Level 1 Level 2 Level 3 Total Items measured at fair value on a recurring basis: Assets Cash equivalents: Money market funds $ 2.4 $ — $ — $ 2.4 Time deposits — 8.4 — 8.4 Other non-current assets: Marketable equity investments 9.6 — — 9.6 Severance pay fund — 0.5 — 0.5 Total assets $ 12.0 $ 8.9 $ — $ 20.9 Liabilities Accrued liabilities: Foreign currency forward contracts $ — $ 1.5 $ — $ 1.5 Total liabilities $ — $ 1.5 $ — $ 1.5 The carrying value of investments in non-marketable equity securities recorded to fair value on a non-recurring basis is adjusted for observable transactions for identical or similar investments of the same issuer or for impairment. These securities relate to equity investments in privately-held companies. These items measured at fair value on a non-recurring basis are classified as Level 3 in the fair value hierarchy because the value is estimated based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs such as volatility, rights and obligations of the securities held. As of October 28, 2023 and January 28, 2023, non-marketable equity investments had a carrying value of $44.1 million and $36.1 million, respectively, and are included in other non-current assets in the Company’s unaudited condensed consolidated balance sheets. Fair Value Measurements at January 28, 2023 Level 1 Level 2 Level 3 Total Items measured at fair value on a recurring basis: Assets Cash equivalents: Time deposits $ — $ 150.7 $ — $ 150.7 Other non-current assets: Marketable equity investments 3.2 — — 3.2 Severance pay fund — 0.7 — 0.7 Total assets $ 3.2 $ 151.4 $ — $ 154.6 Fair Value of Debt The Company classified the 2026 Term Loans, the 2026 Senior Notes, 2028 Senior Notes, 2029 Senior Notes, 2031 Senior Notes, and 2033 Senior Notes as Level 2 in the fair value measurement hierarchy. The carrying value of the 2026 Term Loan approximate its fair value as the 2026 Term Loan is carried at a market observable interest rate that resets periodically. The estimated aggregate fair value of the unsecured senior notes was $3.1 billion at October 28, 2023 and $2.7 billion at January 28, 2023, and were classified as Level 2 as there are quoted prices from less active markets for the notes. See “Note 4 – Debt” for additional information. |
Restructuring
Restructuring | 9 Months Ended |
Oct. 28, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The Company continuously evaluates its existing operations to increase operational efficiency, decrease costs and increase profitability. In the first quarter of fiscal 2024, the Company initiated a restructuring plan to streamline the organization and optimize resources. The charges are mainly comprised of severance and other one-time termination benefits, impairment and write-off of purchased IP licenses and equipment, and other costs. The Company recorded restructuring and other related charges of $3.4 million and $105.3 million for the three and nine months ended October 28, 2023, respectively. The Company expects these restructuring actions to be substantially completed by the end of fiscal 2024. The following table presents details related to the restructuring related charges as presented in the unaudited condensed consolidated statements of operations (in millions): Three Months Ended Nine Months Ended October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Employee severance $ 3.0 $ 12.6 $ 69.1 $ 13.5 Impairment and write-off of assets Purchased IP licenses — — 28.6 — Equipment — — 1.3 — Other 0.4 3.0 6.3 4.6 $ 3.4 $ 15.6 $ 105.3 $ 18.1 The following table sets forth a reconciliation of the beginning and ending restructuring liability balances by major type of cost associated with the restructuring charges (in millions): Employee Severance Other Total Balance at January 28, 2023 $ 3.6 $ 1.4 $ 5.0 Charges 69.1 36.2 105.3 Net cash payments (66.7) (14.6) (81.3) Non-cash items — (13.9) (13.9) Balance at October 28, 2023 6.0 9.1 15.1 Less: non-current portion — 0.9 0.9 Current portion $ 6.0 $ 8.2 $ 14.2 The current and non-current portions of the restructuring liability at October 28, 2023 of $14.2 million and $0.9 million are included as a component of accrued liabilities and other non-current liabilities respectively in the accompanying unaudited condensed consolidated balance sheets. |
Income Tax
Income Tax | 9 Months Ended |
Oct. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company’s quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in accurately predicting our pre-tax income or loss and the mix of jurisdictions to which they relate, intercompany transactions, changes in tax laws, the applicability of special tax regimes, changes in how the Company does business, discrete items, and acquisitions, as well as the integration of such acquisitions. The Company recorded income tax benefit of $23.2 million and $130.7 million for the three and nine months ended October 28, 2023, respectively. The Company’s estimated effective tax rate for the year differs from the U.S. statutory rate of 21% primarily due to a substantial portion of its earnings, or in some cases, losses being taxed or benefited at rates lower than the U.S. statutory rate, net of the impact of U.S. taxation of foreign operations, benefits from tax credits, and valuation allowance releases, as well as discrete tax benefits and expenses for excess deductions and deficiencies on stock-based compensation, respectively. The Company operates under tax incentives in certain countries that may be extended and/or renewed if certain additional requirements are satisfied. The tax incentives are conditional upon meeting certain employment and investment thresholds. The benefit of the tax incentives on net income per share was approximately $0.01 per share for the nine months ended October 28, 2023. No tax incentive was recorded for the three months ended October 28, 2023, as the benefit was recognized during the first six months ended July 29, 2023. No tax incentive benefits were recorded for the three and nine months ended October 29, 2022. In the first quarter of fiscal 2023, the Singapore Economic Development Board (“EDB”) agreed to extend the Company’s Development and Expansion Incentive (“DEI”) by five years until June 30, 2029. As a result of the DEI extension, the Company remeasured its Singapore net deferred tax assets that are scheduled to reverse during these future periods at the new incentive tax rate that the Company expects to apply during these periods, which resulted in a net reduction to our Singapore deferred tax assets of $213.6 million and a corresponding deferred income tax expense during the nine months ended October 29, 2022. The Company’s tax incentives in Israel prior to fiscal 2023 generally required a repayment (“clawback”) of certain tax benefits upon distribution of related earnings. To encourage the distribution of earnings and the collection of related taxes, the Israel government provided for an elective temporary relief provision at a reduced clawback tax rate. During the third quarter of fiscal 2023, the Company determined that it would avail itself of this temporary relief provision and therefore, recorded tax expense of $22.4 million related to estimated clawback taxes on earnings prior to fiscal 2023. The amount of unrecognized tax benefits could increase or decrease due to changes in tax law in various jurisdictions, the effects of income tax audits, and changes in the U.S. dollar as compared to foreign currencies within the next 12 months. It is reasonably possible that our uncertain tax positions may be reduced by as much as $1.5 million within the next 12 months as a result of the lapses of statutes of limitation. The Company is currently under audit in certain U.S. state and non-U.S. taxing jurisdictions. The Company believes that it has adequately provided for the expected outcomes related to these tax audits and that any settlements with respect to these audits will not have a material effect on its results or financial position at this time. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Oct. 28, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company reports both basic net income (loss) per share, which is based on the weighted-average number of common stock outstanding during the period, and diluted net income (loss) per share, which is based on the weighted-average number of common stock outstanding and potentially dilutive shares outstanding during the period. The computations of basic and diluted net income (loss) per share are presented in the following table (in millions, except per share amounts): Three Months Ended Nine Months Ended October 28, October 29, October 28, October 29, Numerator: Net income (loss) $ (164.3) $ 13.3 $ (540.7) $ (148.1) Denominator: Weighted-average shares — basic 862.6 852.6 860.1 850.5 Effect of dilutive securities: Stock-based awards — 5.8 — — Weighted-average shares — diluted 862.6 858.4 860.1 850.5 Net income (loss) per share: Basic $ (0.19) $ 0.02 $ (0.63) $ (0.17) Diluted $ (0.19) $ 0.02 $ (0.63) $ (0.17) Potential dilutive securities include dilutive common stock from stock-based awards attributable to the assumed exercise of stock options, restricted stock units and employee stock purchase plan shares using the treasury stock method. Under the treasury stock method, potential common stock outstanding are not included in the computation of diluted net income per share if their effect is anti-dilutive. Anti-dilutive potential shares are presented in the following table (in millions): Three Months Ended Nine Months Ended October 28, October 29, October 28, October 29, Weighted-average shares outstanding: Stock-based awards 11.0 11.3 8.7 14.1 Anti-dilutive potential shares from stock-based awards are excluded from the calculation of diluted earnings per share for all periods reported above because either their exercise price exceeded the average market price during the period or the stock-based awards were determined to be anti-dilutive based on applying the treasury stock method. Anti-dilutive potential shares from stock-based awards are excluded from the calculation of diluted earnings per share for the three and nine months ended October 28, 2023, and the nine months ended October 29, 2022 due to the net losses reported in those periods. |
Supplemental Financial Informat
Supplemental Financial Information (in millions) | 9 Months Ended |
Oct. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information (in millions) | Supplemental Financial Information (in millions) Consolidated Balance Sheets Accounts Receivable, net The Company sells certain of its trade accounts receivable on a non-recourse basis to a third-party financial institution pursuant to a factoring arrangement. The Company accounts for these transactions as sales of receivables and presents cash proceeds as cash provided by operating activities in the unaudited condensed consolidated statements of cash flows. After the sale of its trade accounts receivable, the Company will collect payment from the customer and remit it to the third-party financial institution. Total trade accounts receivable sold under the factoring arrangement were $174.4 million for the three and nine months ended October 28, 2023, of which $174.4 million remained subject to servicing by the Company as of October 28, 2023. Factoring fees for the sales of receivables were recorded in other income, net and were not material. October 28, January 28, Inventories: Work-in-process $ 579.9 $ 756.3 Finished goods 361.6 312.0 Inventories $ 941.5 $ 1,068.3 October 28, January 28, Property and equipment, net: Machinery and equipment $ 1,296.1 $ 1,083.9 Land, buildings, and leasehold improvements 314.7 306.2 Computer software 118.0 114.5 Furniture and fixtures 31.8 30.9 1,760.6 1,535.5 Less: Accumulated depreciation (1,059.0) (958.1) Property and equipment, net $ 701.6 $ 577.4 October 28, January 28, Other non-current assets: Prepaid ship and debits $ 456.6 $ 481.3 Technology licenses 322.5 439.5 Prepayments on supply capacity reservation agreements 292.6 282.3 Operating right-of-use assets 210.1 211.3 Non-marketable equity investments 44.1 36.1 Other 76.9 58.3 Other non-current assets $ 1,402.8 $ 1,508.8 October 28, January 28, Accrued liabilities: Variable consideration estimates (1) $ 498.3 $ 572.8 Accrued income tax payable 162.8 118.4 Accrued legal reserve 117.6 102.0 Technology license obligations 100.9 119.1 Deferred revenue 56.9 45.2 Accrued warranty expense 52.4 2.4 Lease liabilities - current portion 39.5 43.8 Accrued interest payable 17.8 22.1 Deferred non-recurring engineering credits 17.2 20.0 Other 55.8 46.2 Accrued liabilities $ 1,119.2 $ 1,092.0 (1) Substantially all of the variable consideration estimate is comprised of the ship & debit accrual reserve, but also includes estimated customer returns, price discounts, price protection, rebates, and stock rotation programs. October 28, January 28, Other non-current liabilities Lease liabilities - non current $ 197.0 $ 201.6 Technology license obligations 191.0 267.0 Deferred tax liabilities 73.2 64.2 Non-current income tax payable 34.0 28.5 Other 16.6 29.2 Other non-current liabilities $ 511.8 $ 590.5 Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of tax, by components for the current period are presented in the following table (in millions): Unrealized Gain Balance at January 28, 2023 $ — Other comprehensive income (loss) before reclassifications (3.6) Amounts reclassified from accumulated other comprehensive income (loss) 2.2 Net current-period other comprehensive income (loss), net of tax (1.4) Balance at October 28, 2023 $ (1.4) Unrealized Gain Balance at January 29, 2022 $ — Other comprehensive income (loss) before reclassifications (1.1) Amounts reclassified from accumulated other comprehensive income (loss) 0.3 Net current-period other comprehensive income (loss), net of tax (0.8) Balance at October 29, 2022 $ (0.8) Stock Repurchase Program On November 17, 2016, the Company announced that its Board of Directors authorized a $1.0 billion stock repurchase plan with no fixed expiration. The stock repurchase program replaced in its entirety the prior $3.25 billion stock repurchase program. On October 16, 2018, the Company announced that its Board of Directors authorized a $700.0 million addition to the balance of its existing stock repurchase program. As of October 28, 2023, $399.5 million remained available for future stock repurchases. The Company intends to effect stock repurchases in accordance with the conditions of Rule 10b-18 under the Exchange Act, but may also make repurchases in the open market outside of Rule 10b-18 or in privately negotiated transactions. The stock repurchase program is subject to market conditions and other factors, and does not obligate the Company to repurchase any dollar amount or number of shares of its common stock and the repurchase program may be extended, modified, suspended or discontinued at any time. During the three and nine months ended October 28, 2023, the Company repurchased 0.8 million shares of its common stock for $50.0 million pursuant to a 10b5-1 trading plan. During the three months ended October 29, 2022, the Company repurchased 1.1 million shares of its common stock for $50.0 million. During the nine months ended October 29, 2022, the Company repurchased 2.3 million shares of its common stock for $115.0 million, including 0.9 million shares of its common stock repurchased for $50.0 million pursuant to a 10b5-1 trading plan. The Company records all repurchases, as well as investment purchases and sales, based on their trade date. The repurchased shares are retired immediately after repurchases are completed. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 28, 2023 | Jul. 29, 2023 | Apr. 29, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net income (loss) | $ (164.3) | $ (207.5) | $ (168.9) | $ 13.3 | $ 4.3 | $ (165.7) | $ (540.7) | $ (148.1) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Oct. 28, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Oct. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The unaudited condensed consolidated financial statements of Marvell Technology, Inc. (“MTI”), a Delaware corporation, and its wholly owned subsidiaries (the “Company”), as of and for the three and nine months ended October 28, 2023, have been prepared as required by the U.S. Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted as permitted by the SEC. |
Consolidation | These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the Company’s fiscal year 2023 audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 28, 2023. In the opinion of management, the financial statements include all adjustments, including normal recurring adjustments and other adjustments, that are considered necessary for fair presentation of the Company’s financial position and results of operations. All inter-company accounts and transactions have been eliminated. Operating results for the periods presented herein are not necessarily indicative of the results that may be expected for the entire year. Certain prior period amounts have been reclassified to conform to current period presentation. These financial statements should also be read in conjunction with the Company’s critical accounting policies included in the Company’s Annual Report on Form 10-K for the year ended January 28, 2023 and those included in this Quarterly Report on Form 10-Q below. All dollar amounts in the financial statements and tables in these notes, except per share amounts, are stated in millions of U.S. dollars unless otherwise noted. |
Fiscal Period | The Company’s fiscal year is the 52- or 53-week period ending on the Saturday closest to January 31. Accordingly, every fifth or sixth fiscal year will have a 53-week period. The additional week in a 53-week year is added to the fourth quarter, making such quarter consist of 14 weeks. Fiscal 2023 had a 52-week year. Fiscal 2024 is a 53-week year. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, provisions for sales returns and allowances, inventory excess and obsolescence, goodwill and other intangible assets, restructuring, income taxes, litigation and other contingencies. Actual results could differ from these estimates and such differences could affect the results of operations reported in future periods. In the current macroeconomic environment, these estimates could require increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, these estimates may change materially in future periods. |
Accounting Pronouncements Not Yet Effective | Accounting Pronouncements Not Yet Effective In November 2023, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update (“ASU”) to improve reportable segment disclosures. The update requires disclosure of incremental segment information on an annual and interim basis. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. Early adoption is permitted. The Company is evaluating the impact that this new standard will have on the Company’s consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table summarizes net revenue disaggregated by end market (in millions, except percentages): Three Months Ended Nine Months Ended October 28, % of Total October 29, % of Total October 28, % of Total October 29, % of Total Net revenue by end market: Data center $ 555.8 39 % $ 627.3 41 % $ 1,451.4 36 % $ 1,911.2 42 % Enterprise networking 271.1 19 % 376.0 24 % 963.4 24 % 1,002.9 22 % Carrier infrastructure 316.5 22 % 271.4 18 % 881.9 22 % 808.6 18 % Consumer 168.7 12 % 178.4 12 % 478.5 12 % 521.3 12 % Automotive/industrial 106.5 8 % 84.2 5 % 306.0 6 % 257.1 6 % $ 1,418.6 $ 1,537.3 $ 4,081.2 $ 4,501.1 The following table summarizes net revenue disaggregated by primary geographical market based on destination of shipment (in millions, except percentages): Three Months Ended Nine Months Ended October 28, % of Total October 29, % of Total October 28, % of Total October 29, % of Total Net revenue based on destination of shipment: China $ 605.3 43 % $ 604.1 39 % $ 1,690.3 41 % $ 1,941.7 43 % United States 217.1 15 % 184.6 12 % 607.2 15 % 519.1 12 % Finland 158.4 11 % 47.4 3 % 353.7 9 % 125.4 3 % Singapore 73.5 5 % 134.5 9 % 256.7 6 % 251.7 6 % Thailand 94.5 7 % 115.2 7 % 215.9 5 % 289.4 6 % Malaysia 31.6 2 % 85.1 6 % 169.5 4 % 280.2 6 % Taiwan 22.9 2 % 89.4 6 % 135.8 3 % 204.3 5 % Japan 37.5 3 % 70.1 5 % 125.4 3 % 208.2 5 % Other 177.8 12 % 206.9 13 % 526.7 14 % 681.1 14 % $ 1,418.6 $ 1,537.3 $ 4,081.2 $ 4,501.1 The following table summarizes net revenue disaggregated by customer type (in millions, except percentages): Three Months Ended Nine Months Ended October 28, % of Total October 29, % of Total October 28, % of Total October 29, % of Total Net revenue by customer type: Direct customers $ 937.6 66 % $ 986.0 64 % $ 2,685.7 66 % $ 2,955.9 66 % Distributors 481.0 34 % 551.3 36 % 1,395.5 34 % 1,545.2 34 % $ 1,418.6 $ 1,537.3 $ 4,081.2 $ 4,501.1 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The following table summarizes the Company’s outstanding debt at October 28, 2023 and January 28, 2023 (in millions): October 28, January 28, Face Value Outstanding: 2024 Term Loan - 3-Year Tranche $ — $ 735.0 2026 Term Loan - 5-Year Tranche 721.9 787.5 Term Loan Total 721.9 1,522.5 4.200% MTG/MTI 2023 Senior Notes — 500.0 4.875% MTG/MTI 2028 Senior Notes 499.9 499.9 1.650% 2026 Senior Notes 500.0 500.0 2.450% 2028 Senior Notes 750.0 750.0 5.750% 2029 Senior Notes 500.0 — 2.950% 2031 Senior Notes 750.0 750.0 5.950% 2033 Senior Notes 500.0 — Senior Notes Total 3,499.9 2,999.9 Total borrowings $ 4,221.8 $ 4,522.4 Less: Unamortized debt discount and issuance cost (35.9) (30.3) Net carrying amount of debt $ 4,185.9 $ 4,492.1 Less: Current portion (1) 96.3 584.4 Non-current portion $ 4,089.6 $ 3,907.7 (1) As of October 28, 2023, the current portion of outstanding debt that is due within twelve months includes a portion of the 2026 Term Loan - 5-Year Tranche. The weighted average interest rate on short-term debt outstanding at October 28, 2023 |
Schedule of Aggregate Future Contractual Maturities of Debt | As of October 28, 2023, the aggregate future contractual maturities of the Company’s outstanding debt, at face value, were as follows (in millions): Fiscal Year Amount Remainder of 2024 $ 21.9 2025 109.4 2026 131.2 2027 959.4 2028 — Thereafter 2,999.9 Total $ 4,221.8 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligation, Fiscal Year Maturity | Total future unconditional purchase commitments as of October 28, 2023, are as follows (in millions): Fiscal Year Purchase Commitments to Foundries and Test & Assembly Partners Technology License Fees Remainder of 2024 $ 300.8 $ 31.0 2025 716.8 149.7 2026 626.4 49.5 2027 449.4 36.4 2028 185.5 36.5 Thereafter 533.5 157.0 Total unconditional purchase commitments $ 2,812.4 $ 460.1 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets, Net (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-lived Intangible Assets by Major Class | As of October 28, 2023 and January 28, 2023, net carrying amounts excluding fully amortized intangible assets are as follows (in millions, except for weighted-average remaining amortization period): October 28, 2023 Gross Carrying Amounts Accumulated Amortization Net Carrying Amounts Weighted-Average Remaining Amortization Period (Years) Developed technologies $ 5,026.0 $ (2,456.2) $ 2,569.8 4.04 Customer contracts and related relationships 2,179.0 (1,102.2) 1,076.8 3.53 Trade names 50.0 (25.2) 24.8 2.48 Total acquired amortizable intangible assets $ 7,255.0 $ (3,583.6) $ 3,671.4 3.88 IPR&D 619.0 — 619.0 n/a Total acquired intangible assets $ 7,874.0 $ (3,583.6) $ 4,290.4 January 28, 2023 Gross Carrying Amounts Accumulated Amortization Net Carrying Amounts Weighted-Average Remaining Amortization Period (Years) Developed technologies $ 5,078.0 $ (2,014.5) $ 3,063.5 4.67 Customer contracts and related relationships 2,179.0 (853.2) 1,325.8 4.24 Trade names 66.0 (32.3) 33.7 3.11 Total acquired amortizable intangible assets $ 7,323.0 $ (2,900.0) $ 4,423.0 4.53 IPR&D 679.0 — 679.0 n/a Total acquired intangible assets $ 8,002.0 $ (2,900.0) $ 5,102.0 |
Schedule of Indefinite-lived Intangible Assets | As of October 28, 2023 and January 28, 2023, net carrying amounts excluding fully amortized intangible assets are as follows (in millions, except for weighted-average remaining amortization period): October 28, 2023 Gross Carrying Amounts Accumulated Amortization Net Carrying Amounts Weighted-Average Remaining Amortization Period (Years) Developed technologies $ 5,026.0 $ (2,456.2) $ 2,569.8 4.04 Customer contracts and related relationships 2,179.0 (1,102.2) 1,076.8 3.53 Trade names 50.0 (25.2) 24.8 2.48 Total acquired amortizable intangible assets $ 7,255.0 $ (3,583.6) $ 3,671.4 3.88 IPR&D 619.0 — 619.0 n/a Total acquired intangible assets $ 7,874.0 $ (3,583.6) $ 4,290.4 January 28, 2023 Gross Carrying Amounts Accumulated Amortization Net Carrying Amounts Weighted-Average Remaining Amortization Period (Years) Developed technologies $ 5,078.0 $ (2,014.5) $ 3,063.5 4.67 Customer contracts and related relationships 2,179.0 (853.2) 1,325.8 4.24 Trade names 66.0 (32.3) 33.7 3.11 Total acquired amortizable intangible assets $ 7,323.0 $ (2,900.0) $ 4,423.0 4.53 IPR&D 679.0 — 679.0 n/a Total acquired intangible assets $ 8,002.0 $ (2,900.0) $ 5,102.0 |
Schedule of Finite-lived Intangible Assets, Future Amortization Expense | The following table presents the estimated future amortization expense of acquired amortizable intangible assets as of October 28, 2023 (in millions): Fiscal Year Amount Remainder of 2024 $ 286.4 2025 1,051.8 2026 998.1 2027 829.9 2028 273.2 Thereafter 232.0 $ 3,671.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below set forth, by level, the Company’s assets and liabilities that are measured at fair value on a recurring basis. The tables do not include assets and liabilities that are measured at historical cost or any basis other than fair value (in millions): Fair Value Measurements at October 28, 2023 Level 1 Level 2 Level 3 Total Items measured at fair value on a recurring basis: Assets Cash equivalents: Money market funds $ 2.4 $ — $ — $ 2.4 Time deposits — 8.4 — 8.4 Other non-current assets: Marketable equity investments 9.6 — — 9.6 Severance pay fund — 0.5 — 0.5 Total assets $ 12.0 $ 8.9 $ — $ 20.9 Liabilities Accrued liabilities: Foreign currency forward contracts $ — $ 1.5 $ — $ 1.5 Total liabilities $ — $ 1.5 $ — $ 1.5 Fair Value Measurements at January 28, 2023 Level 1 Level 2 Level 3 Total Items measured at fair value on a recurring basis: Assets Cash equivalents: Time deposits $ — $ 150.7 $ — $ 150.7 Other non-current assets: Marketable equity investments 3.2 — — 3.2 Severance pay fund — 0.7 — 0.7 Total assets $ 3.2 $ 151.4 $ — $ 154.6 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring and Other Related Charges | The following table presents details related to the restructuring related charges as presented in the unaudited condensed consolidated statements of operations (in millions): Three Months Ended Nine Months Ended October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Employee severance $ 3.0 $ 12.6 $ 69.1 $ 13.5 Impairment and write-off of assets Purchased IP licenses — — 28.6 — Equipment — — 1.3 — Other 0.4 3.0 6.3 4.6 $ 3.4 $ 15.6 $ 105.3 $ 18.1 |
Schedule of Restructuring Reserve by Type of Cost | The following table sets forth a reconciliation of the beginning and ending restructuring liability balances by major type of cost associated with the restructuring charges (in millions): Employee Severance Other Total Balance at January 28, 2023 $ 3.6 $ 1.4 $ 5.0 Charges 69.1 36.2 105.3 Net cash payments (66.7) (14.6) (81.3) Non-cash items — (13.9) (13.9) Balance at October 28, 2023 6.0 9.1 15.1 Less: non-current portion — 0.9 0.9 Current portion $ 6.0 $ 8.2 $ 14.2 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computations of basic and diluted net income (loss) per share are presented in the following table (in millions, except per share amounts): Three Months Ended Nine Months Ended October 28, October 29, October 28, October 29, Numerator: Net income (loss) $ (164.3) $ 13.3 $ (540.7) $ (148.1) Denominator: Weighted-average shares — basic 862.6 852.6 860.1 850.5 Effect of dilutive securities: Stock-based awards — 5.8 — — Weighted-average shares — diluted 862.6 858.4 860.1 850.5 Net income (loss) per share: Basic $ (0.19) $ 0.02 $ (0.63) $ (0.17) Diluted $ (0.19) $ 0.02 $ (0.63) $ (0.17) |
Schedule of Anti-dilutive Potential Shares | Anti-dilutive potential shares are presented in the following table (in millions): Three Months Ended Nine Months Ended October 28, October 29, October 28, October 29, Weighted-average shares outstanding: Stock-based awards 11.0 11.3 8.7 14.1 |
Supplemental Financial Inform_2
Supplemental Financial Information (in millions) (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Inventories | October 28, January 28, Inventories: Work-in-process $ 579.9 $ 756.3 Finished goods 361.6 312.0 Inventories $ 941.5 $ 1,068.3 |
Schedule of Property and Equipment, Net | October 28, January 28, Property and equipment, net: Machinery and equipment $ 1,296.1 $ 1,083.9 Land, buildings, and leasehold improvements 314.7 306.2 Computer software 118.0 114.5 Furniture and fixtures 31.8 30.9 1,760.6 1,535.5 Less: Accumulated depreciation (1,059.0) (958.1) Property and equipment, net $ 701.6 $ 577.4 |
Schedule of Other Non-current Assets | October 28, January 28, Other non-current assets: Prepaid ship and debits $ 456.6 $ 481.3 Technology licenses 322.5 439.5 Prepayments on supply capacity reservation agreements 292.6 282.3 Operating right-of-use assets 210.1 211.3 Non-marketable equity investments 44.1 36.1 Other 76.9 58.3 Other non-current assets $ 1,402.8 $ 1,508.8 |
Schedule of Current Accrued Liabilities | October 28, January 28, Accrued liabilities: Variable consideration estimates (1) $ 498.3 $ 572.8 Accrued income tax payable 162.8 118.4 Accrued legal reserve 117.6 102.0 Technology license obligations 100.9 119.1 Deferred revenue 56.9 45.2 Accrued warranty expense 52.4 2.4 Lease liabilities - current portion 39.5 43.8 Accrued interest payable 17.8 22.1 Deferred non-recurring engineering credits 17.2 20.0 Other 55.8 46.2 Accrued liabilities $ 1,119.2 $ 1,092.0 (1) Substantially all of the variable consideration estimate is comprised of the ship & debit accrual reserve, but also includes estimated customer returns, price discounts, price protection, rebates, and stock rotation programs. |
Schedule of Other Non-current Liabilities | October 28, January 28, Other non-current liabilities Lease liabilities - non current $ 197.0 $ 201.6 Technology license obligations 191.0 267.0 Deferred tax liabilities 73.2 64.2 Non-current income tax payable 34.0 28.5 Other 16.6 29.2 Other non-current liabilities $ 511.8 $ 590.5 |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Components | The changes in accumulated other comprehensive loss, net of tax, by components for the current period are presented in the following table (in millions): Unrealized Gain Balance at January 28, 2023 $ — Other comprehensive income (loss) before reclassifications (3.6) Amounts reclassified from accumulated other comprehensive income (loss) 2.2 Net current-period other comprehensive income (loss), net of tax (1.4) Balance at October 28, 2023 $ (1.4) Unrealized Gain Balance at January 29, 2022 $ — Other comprehensive income (loss) before reclassifications (1.1) Amounts reclassified from accumulated other comprehensive income (loss) 0.3 Net current-period other comprehensive income (loss), net of tax (0.8) Balance at October 29, 2022 $ (0.8) |
Revenue - Net Revenue by End Ma
Revenue - Net Revenue by End Market (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 1,418.6 | $ 1,537.3 | $ 4,081.2 | $ 4,501.1 |
Product Concentration Risk | Net Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | ||||
Data center | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 555.8 | $ 627.3 | $ 1,451.4 | $ 1,911.2 |
Data center | Product Concentration Risk | Net Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 39% | 41% | 36% | 42% |
Enterprise networking | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 271.1 | $ 376 | $ 963.4 | $ 1,002.9 |
Enterprise networking | Product Concentration Risk | Net Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 19% | 24% | 24% | 22% |
Carrier infrastructure | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 316.5 | $ 271.4 | $ 881.9 | $ 808.6 |
Carrier infrastructure | Product Concentration Risk | Net Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 22% | 18% | 22% | 18% |
Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 168.7 | $ 178.4 | $ 478.5 | $ 521.3 |
Consumer | Product Concentration Risk | Net Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 12% | 12% | 12% | 12% |
Automotive/industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 106.5 | $ 84.2 | $ 306 | $ 257.1 |
Automotive/industrial | Product Concentration Risk | Net Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 8% | 5% | 6% | 6% |
Revenue - Net Revenue Based on
Revenue - Net Revenue Based on Destination of Shipment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 1,418.6 | $ 1,537.3 | $ 4,081.2 | $ 4,501.1 |
China | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 605.3 | $ 604.1 | $ 1,690.3 | $ 1,941.7 |
China | Net Revenue | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 43% | 39% | 41% | 43% |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 217.1 | $ 184.6 | $ 607.2 | $ 519.1 |
United States | Net Revenue | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 15% | 12% | 15% | 12% |
Finland | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 158.4 | $ 47.4 | $ 353.7 | $ 125.4 |
Finland | Net Revenue | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 11% | 3% | 9% | 3% |
Singapore | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 73.5 | $ 134.5 | $ 256.7 | $ 251.7 |
Singapore | Net Revenue | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 5% | 9% | 6% | 6% |
Malaysia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 31.6 | $ 85.1 | $ 169.5 | $ 280.2 |
Malaysia | Net Revenue | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 2% | 6% | 4% | 6% |
Thailand | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 94.5 | $ 115.2 | $ 215.9 | $ 289.4 |
Thailand | Net Revenue | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 7% | 7% | 5% | 6% |
Taiwan | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 22.9 | $ 89.4 | $ 135.8 | $ 204.3 |
Taiwan | Net Revenue | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 2% | 6% | 3% | 5% |
Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 37.5 | $ 70.1 | $ 125.4 | $ 208.2 |
Japan | Net Revenue | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 3% | 5% | 3% | 5% |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 177.8 | $ 206.9 | $ 526.7 | $ 681.1 |
Other | Net Revenue | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 12% | 13% | 14% | 14% |
Revenue - Net Revenue by Custom
Revenue - Net Revenue by Customer Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 1,418.6 | $ 1,537.3 | $ 4,081.2 | $ 4,501.1 |
Direct customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 937.6 | $ 986 | $ 2,685.7 | $ 2,955.9 |
Direct customers | Net Revenue | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 66% | 64% | 66% | 66% |
Distributors | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 481 | $ 551.3 | $ 1,395.5 | $ 1,545.2 |
Distributors | Net Revenue | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
% of Total | 34% | 36% | 34% | 34% |
Debt - Summary of Borrowings an
Debt - Summary of Borrowings and Outstanding Debt Schedule (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | ||||
Sep. 18, 2023 | Apr. 12, 2021 | Dec. 07, 2020 | Dec. 31, 2020 | Oct. 28, 2023 | Jan. 28, 2023 | |
Debt Instrument [Line Items] | ||||||
Total borrowings | $ 4,221.8 | $ 4,522.4 | ||||
Less: Unamortized debt discount and issuance cost | (35.9) | (30.3) | ||||
Net carrying amount of debt | 4,185.9 | 4,492.1 | ||||
Non-current portion | $ 4,089.6 | $ 3,907.7 | ||||
Weighted average interest rate | 6.795% | 4.448% | ||||
Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Total borrowings | $ 721.9 | $ 1,522.5 | ||||
Less: Current portion | 96.3 | 584.4 | ||||
Term Loan | 2024 Term Loan - 3-Year Tranche | ||||||
Debt Instrument [Line Items] | ||||||
Total borrowings | 0 | 735 | ||||
Debt term (in years) | 3 years | 3 years | ||||
Term Loan | 2026 Term Loan - 5-Year Tranche | ||||||
Debt Instrument [Line Items] | ||||||
Total borrowings | $ 721.9 | 787.5 | ||||
Debt term (in years) | 5 years | 5 years | 5 years | |||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Total borrowings | $ 3,499.9 | 2,999.9 | ||||
Net carrying amount of debt | 2,000 | |||||
Senior Notes | 4.200% MTG/MTI 2023 Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Total borrowings | $ 0 | 500 | ||||
Stated interest rate | 4.20% | |||||
Senior Notes | 4.875% MTG/MTI 2028 Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Total borrowings | $ 499.9 | 499.9 | ||||
Stated interest rate | 4.875% | |||||
Senior Notes | 1.650% 2026 Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Total borrowings | $ 500 | 500 | ||||
Stated interest rate | 1.65% | 1.65% | ||||
Debt term (in years) | 5 years | |||||
Senior Notes | 2.450% 2028 Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Total borrowings | $ 750 | 750 | ||||
Stated interest rate | 2.45% | 2.45% | ||||
Debt term (in years) | 7 years | |||||
Senior Notes | 5.750% 2029 Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Total borrowings | $ 500 | 0 | ||||
Stated interest rate | 5.75% | 5.75% | ||||
Debt term (in years) | 5 years 6 months | |||||
Senior Notes | 2.950% 2031 Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Total borrowings | $ 750 | 750 | ||||
Stated interest rate | 2.95% | 2.95% | ||||
Debt term (in years) | 10 years | |||||
Senior Notes | 5.950% 2033 Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Total borrowings | $ 500 | $ 0 | ||||
Stated interest rate | 5.95% | 5.95% | ||||
Debt term (in years) | 10 years |
Debt - Summary of Borrowings _2
Debt - Summary of Borrowings and Outstanding Debt Narrative (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||||
Sep. 18, 2023 | Apr. 14, 2023 | Apr. 12, 2021 | Dec. 07, 2020 | Dec. 31, 2020 | Oct. 28, 2023 | Nov. 30, 2020 | |
Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,750,000,000 | ||||||
Line of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 500,000,000 | ||||||
2024 Term Loan - 3-Year Tranche | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt term (in years) | 3 years | 3 years | |||||
Maximum borrowing capacity | $ 875,000,000 | $ 875,000,000 | |||||
2026 Term Loan - 5-Year Tranche | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt term (in years) | 5 years | 5 years | 5 years | ||||
Maximum borrowing capacity | $ 875,000,000 | $ 875,000,000 | |||||
2020 Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt term (in years) | 5 years | ||||||
Maximum borrowing capacity | $ 750,000,000 | $ 750,000,000 | |||||
1.650% 2026 Senior Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt term (in years) | 5 years | ||||||
Aggregate principal amount | $ 500,000,000 | ||||||
2.450% 2028 Senior Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt term (in years) | 7 years | ||||||
Aggregate principal amount | $ 750,000,000 | ||||||
2.950% 2031 Senior Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt term (in years) | 10 years | ||||||
Aggregate principal amount | $ 750,000,000 | ||||||
2023 Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt term (in years) | 5 years | ||||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||||
5.750% 2029 Senior Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt term (in years) | 5 years 6 months | ||||||
Aggregate principal amount | $ 500,000,000 | ||||||
5.950% 2033 Senior Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt term (in years) | 10 years | ||||||
Aggregate principal amount | $ 500,000,000 |
Debt - Term Loan and Revolving
Debt - Term Loan and Revolving Credit Facility (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Apr. 14, 2023 | Dec. 07, 2020 | Dec. 31, 2020 | Oct. 28, 2023 | Jul. 29, 2023 | Oct. 28, 2023 | Jan. 28, 2023 | Nov. 30, 2020 | |
Line of Credit Facility [Line Items] | ||||||||
Total borrowings | $ 4,221,800,000 | $ 4,221,800,000 | $ 4,522,400,000 | |||||
Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 1,750,000,000 | |||||||
Total borrowings | 721,900,000 | 721,900,000 | 1,522,500,000 | |||||
Term Loan | 2024 Term Loan - 3-Year Tranche | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 875,000,000 | $ 875,000,000 | ||||||
Debt term (in years) | 3 years | 3 years | ||||||
Repayments of debt | 735,000,000 | |||||||
Total borrowings | $ 0 | $ 0 | 735,000,000 | |||||
Term Loan | 2026 Term Loan - 5-Year Tranche | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 875,000,000 | $ 875,000,000 | ||||||
Debt term (in years) | 5 years | 5 years | 5 years | |||||
Effective interest rate | 5.103% | 5.103% | ||||||
Repayments of debt | $ 21,900,000 | $ 65,600,000 | ||||||
Total borrowings | 721,900,000 | $ 721,900,000 | $ 787,500,000 | |||||
Term Loan | 2026 Term Loan - 5-Year Tranche | Debt Instrument, Redemption, Period One | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Percentage of principal | 1.25% | |||||||
Term Loan | 2026 Term Loan - 5-Year Tranche | Debt Instrument, Redemption, Period Two | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Percentage of principal | 2.50% | |||||||
Term Loan | 2026 Term Loan - 5-Year Tranche | Debt Instrument, Redemption, Period Three | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Percentage of principal | 3.75% | |||||||
Term Loan | 2026 Term Loan - 5-Year Tranche | Secured Overnight Financing Rate (SOFR) | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate (as a percent) | 1.475% | |||||||
Line of Credit | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||
Line of Credit | 2020 Revolving Credit Facility | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 750,000,000 | $ 750,000,000 | ||||||
Debt term (in years) | 5 years | |||||||
Line of Credit | 2023 Revolving Credit Facility | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||||
Debt term (in years) | 5 years | |||||||
Unused commitment fee percentage | 0.175% | |||||||
Repayments of lines of credit | $ 50,000,000 | |||||||
Proceeds from long-term lines of credit | $ 50,000,000 | |||||||
Line of Credit | 2023 Revolving Credit Facility | Debt Instrument, Redemption, Period One | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Repayments of lines of credit | 200,000,000 | |||||||
Line of Credit | 2023 Revolving Credit Facility | Debt Instrument, Redemption, Period Two | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Proceeds from long-term lines of credit | $ 50,000,000 |
Debt - Senior Unsecured Notes (
Debt - Senior Unsecured Notes (Details) - USD ($) $ in Millions | 1 Months Ended | |||||||
Sep. 18, 2023 | Jun. 22, 2023 | May 04, 2021 | Apr. 12, 2021 | Apr. 30, 2021 | Oct. 28, 2023 | Jan. 28, 2023 | Jun. 22, 2018 | |
Debt Instrument [Line Items] | ||||||||
Debt outstanding | $ 4,185.9 | $ 4,492.1 | ||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt outstanding | $ 2,000 | |||||||
Redemption price percentage | 101% | 101% | 101% | |||||
Senior Notes | 5.750% 2029 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 500 | |||||||
Stated interest rate | 5.75% | 5.75% | ||||||
Effective interest rate | 5.891% | |||||||
Senior Notes | 5.950% 2033 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 500 | |||||||
Stated interest rate | 5.95% | 5.95% | ||||||
Effective interest rate | 6.082% | |||||||
Senior Notes | Senior Notes Due 2029 and 2033 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt outstanding | $ 1,000 | |||||||
Senior Notes | 1.650% 2026 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 500 | |||||||
Stated interest rate | 1.65% | 1.65% | ||||||
Effective interest rate | 1.839% | |||||||
Senior Notes | 2.450% 2028 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 750 | |||||||
Stated interest rate | 2.45% | 2.45% | ||||||
Effective interest rate | 2.554% | |||||||
Senior Notes | 2.950% 2031 Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 750 | |||||||
Stated interest rate | 2.95% | 2.95% | ||||||
Effective interest rate | 3.043% | |||||||
Senior Notes | MTG/MTI Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt outstanding | $ 499.9 | |||||||
Senior Notes | MTG Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt outstanding | $ 1,000 | |||||||
Senior Notes | MTG Senior Notes Due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 500 | |||||||
Stated interest rate | 4.20% | |||||||
Principal amount exchanged | $ 433.9 | |||||||
Senior Notes | MTG Senior Notes Due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 500 | $ 500 | ||||||
Stated interest rate | 4.875% | 4.875% | ||||||
Effective interest rate | 4.94% | |||||||
Principal amount exchanged | $ 479.5 | |||||||
Senior Notes | MTI Senior Notes Due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 500 | |||||||
Stated interest rate | 4.20% | |||||||
Senior Notes | MTI Senior Notes Due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 4.875% | |||||||
Effective interest rate | 4.988% | |||||||
Senior Notes | MTI and MTG 2023 Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of senior notes | $ 500 |
Debt - Interest Expense and Fut
Debt - Interest Expense and Future Contractual Maturities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Debt Disclosure [Abstract] | ||||
Interest expense | $ 49.6 | $ 42.4 | $ 152 | $ 112.7 |
Debt - Future Maturities (Detai
Debt - Future Maturities (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 |
Fiscal Year | ||
Remainder of 2024 | $ 21.9 | |
2025 | 109.4 | |
2026 | 131.2 | |
2027 | 959.4 | |
2028 | 0 | |
Thereafter | 2,999.9 | |
Total | $ 4,221.8 | $ 4,522.4 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | |
Long-term Purchase Commitment [Line Items] | ||||
Standard warranty period | 1 year | |||
Litigation settlement, amount awarded to other party | $ 100 | |||
Charges for product related claims | $ 198 | |||
Wafers, Substrates, and Other Manufacturing Products | ||||
Long-term Purchase Commitment [Line Items] | ||||
Estimated commitment | $ 2,400 | |||
Fees payable | $ 104.5 | $ 104.5 | ||
Wafers, Substrates, and Other Manufacturing Products | Minimum | ||||
Long-term Purchase Commitment [Line Items] | ||||
Purchase commitment period | 4 years | |||
Wafers, Substrates, and Other Manufacturing Products | Maximum | ||||
Long-term Purchase Commitment [Line Items] | ||||
Purchase commitment period | 10 years | |||
Technology License Fees | ||||
Long-term Purchase Commitment [Line Items] | ||||
Purchase commitment period | 10 years | |||
Fees payable | $ 354 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Payments Under Technology License Obligations (Details) $ in Millions | Oct. 28, 2023 USD ($) |
Purchase Commitments to Foundries and Test & Assembly Partners | |
Fiscal Year | |
Remainder of 2024 | $ 300.8 |
2025 | 716.8 |
2026 | 626.4 |
2027 | 449.4 |
2028 | 185.5 |
Thereafter | 533.5 |
Total unconditional purchase commitments | 2,812.4 |
Technology License Fees | |
Fiscal Year | |
Remainder of 2024 | 31 |
2025 | 149.7 |
2026 | 49.5 |
2027 | 36.4 |
2028 | 36.5 |
Thereafter | 157 |
Total unconditional purchase commitments | $ 460.1 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | Jan. 28, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 11,586.9 | $ 11,586.9 | $ 11,586.9 | ||
Weighted average remaining amortization period (years) | 3 years 10 months 17 days | 4 years 6 months 10 days | |||
Amortization of acquired intangible assets | $ 269.8 | $ 269.9 | $ 811.6 | $ 814.2 | |
IPR&D | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining amortization period (years) | 5 years | ||||
IPR&D | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining amortization period (years) | 10 years | ||||
Consulting Services Entity Located in India | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Consideration transferred | $ 103.2 | ||||
Goodwill | $ 73.6 |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets, Net - Net Carrying Amounts and Weighted Average Amortization Period (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Oct. 28, 2023 | Jan. 28, 2023 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amounts | $ 7,255 | $ 7,323 |
Accumulated Amortization | (3,583.6) | (2,900) |
Net Carrying Amounts | 3,671.4 | 4,423 |
Gross Carrying Amounts, Total acquired intangible assets | 7,874 | 8,002 |
Net Carrying Amounts, Total acquired intangible assets | $ 4,290.4 | $ 5,102 |
Weighted-Average Remaining Amortization Period (Years) | 3 years 10 months 17 days | 4 years 6 months 10 days |
Developed technologies | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amounts | $ 5,026 | $ 5,078 |
Accumulated Amortization | (2,456.2) | (2,014.5) |
Net Carrying Amounts | $ 2,569.8 | $ 3,063.5 |
Weighted-Average Remaining Amortization Period (Years) | 4 years 14 days | 4 years 8 months 1 day |
Customer contracts and related relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amounts | $ 2,179 | $ 2,179 |
Accumulated Amortization | (1,102.2) | (853.2) |
Net Carrying Amounts | $ 1,076.8 | $ 1,325.8 |
Weighted-Average Remaining Amortization Period (Years) | 3 years 6 months 10 days | 4 years 2 months 26 days |
Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amounts | $ 50 | $ 66 |
Accumulated Amortization | (25.2) | (32.3) |
Net Carrying Amounts | $ 24.8 | $ 33.7 |
Weighted-Average Remaining Amortization Period (Years) | 2 years 5 months 23 days | 3 years 1 month 9 days |
IPR&D | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
IPR&D | $ 619 | $ 679 |
Goodwill and Acquired Intangi_5
Goodwill and Acquired Intangible Assets, Net - Future Amortization (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2024 | $ 286.4 | |
2025 | 1,051.8 | |
2026 | 998.1 | |
2027 | 829.9 | |
2028 | 273.2 | |
Thereafter | 232 | |
Net Carrying Amounts | $ 3,671.4 | $ 4,423 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value, Assets and Liabilities (Details) - USD ($) $ in Thousands | Oct. 28, 2023 | Jan. 28, 2023 |
Assets | ||
Marketable equity investments | $ 9,600 | $ 3,200 |
Severance pay fund | 500 | 700 |
Total assets | 20,900 | 154,600 |
Liabilities | ||
Total liabilities | 1,500 | |
Non-marketable equity investments | 44,100 | 36,100 |
Foreign currency forward contracts | ||
Liabilities | ||
Foreign currency forward contracts | 1,500 | |
Money market funds | ||
Assets | ||
Time deposits | 2,400 | |
Time deposits | ||
Assets | ||
Time deposits | 8,400 | 150,700 |
Level 1 | ||
Assets | ||
Marketable equity investments | 9,600 | 3,200 |
Severance pay fund | 0 | 0 |
Total assets | 12,000 | 3,200 |
Liabilities | ||
Total liabilities | 0 | |
Level 1 | Foreign currency forward contracts | ||
Liabilities | ||
Foreign currency forward contracts | 0 | |
Level 1 | Money market funds | ||
Assets | ||
Time deposits | 2,400 | |
Level 1 | Time deposits | ||
Assets | ||
Time deposits | 0 | 0 |
Level 2 | ||
Assets | ||
Marketable equity investments | 0 | 0 |
Severance pay fund | 500 | 700 |
Total assets | 8,900 | 151,400 |
Liabilities | ||
Total liabilities | 1,500 | |
Level 2 | Foreign currency forward contracts | ||
Liabilities | ||
Foreign currency forward contracts | 1,500 | |
Level 2 | Money market funds | ||
Assets | ||
Time deposits | 0 | |
Level 2 | Time deposits | ||
Assets | ||
Time deposits | 8,400 | 150,700 |
Level 3 | ||
Assets | ||
Marketable equity investments | 0 | 0 |
Severance pay fund | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Total liabilities | 0 | |
Level 3 | Foreign currency forward contracts | ||
Liabilities | ||
Foreign currency forward contracts | 0 | |
Level 3 | Money market funds | ||
Assets | ||
Time deposits | 0 | |
Level 3 | Time deposits | ||
Assets | ||
Time deposits | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Billions | Oct. 28, 2023 | Jan. 28, 2023 |
Level 2 | Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long term convertible debt | $ 3.1 | $ 2.7 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | Jul. 29, 2023 | |
Restructuring and Related Activities [Abstract] | |||||
Restructuring related charges | $ 3.4 | $ 15.6 | $ 105.3 | $ 18.1 | |
Restructuring reserve, current | 14.2 | 14.2 | $ 14.2 | ||
Restructuring reserve, noncurrent | $ 0.9 | $ 0.9 | $ 0.9 |
Restructuring - Statements of O
Restructuring - Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Employee severance | $ 3 | $ 12.6 | $ 69.1 | $ 13.5 |
Equipment | 0 | 0 | 1.3 | 0 |
Other | 0.4 | 3 | 6.3 | 4.6 |
Restructuring related charges | 3.4 | 15.6 | 105.3 | 18.1 |
Server Processor Products | Intellectual Property | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Purchased IP licenses | $ 0 | $ 0 | $ 28.6 | $ 0 |
Restructuring - Restructuring L
Restructuring - Restructuring Liability Balances by Type (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 28, 2023 | Jul. 29, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Balance at January 28, 2023 | $ 5 | |
Charges | 105.3 | |
Net cash payments | (81.3) | |
Non-cash items | (13.9) | |
Balance at October 28, 2023 | 15.1 | |
Less: non-current portion | 0.9 | $ 0.9 |
Current portion | 14.2 | $ 14.2 |
Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Balance at January 28, 2023 | 3.6 | |
Charges | 69.1 | |
Net cash payments | (66.7) | |
Non-cash items | 0 | |
Balance at October 28, 2023 | 6 | |
Less: non-current portion | 0 | |
Current portion | 6 | |
Other | ||
Restructuring Reserve [Roll Forward] | ||
Balance at January 28, 2023 | 1.4 | |
Charges | 36.2 | |
Net cash payments | (14.6) | |
Non-cash items | (13.9) | |
Balance at October 28, 2023 | 9.1 | |
Less: non-current portion | 0.9 | |
Current portion | $ 8.2 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Income Tax Contingency [Line Items] | ||||
Income tax expense (benefit) | $ (23.2) | $ 52 | $ (130.7) | $ 256.4 |
Federal statutory income tax rate, percent | 21% | |||
Tax savings, effect on net income per share (less than) (in dollars per share) | $ 0.01 | |||
Deferred tax assets | 213.6 | $ 213.6 | ||
Income tax expense related to clawback taxes on prior earnings | $ 22.4 | |||
Decrease in uncertain tax positions | 1.5 | $ 1.5 | ||
Cash, cash equivalents and short-term investments | 725.6 | 725.6 | ||
Deferred tax liability, undistributed earnings of foreign subsidiaries | 294.5 | 294.5 | ||
Foreign Subsidiaries | ||||
Income Tax Contingency [Line Items] | ||||
Cash, cash equivalents and short-term investments | $ 408.3 | $ 408.3 | ||
Singapore Economic Development Board | ||||
Income Tax Contingency [Line Items] | ||||
Income tax holiday, expiration term | 5 years | 5 years |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Computations of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Oct. 28, 2023 | Jul. 29, 2023 | Apr. 29, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Numerator: | ||||||||
Net income (loss) | $ (164.3) | $ (207.5) | $ (168.9) | $ 13.3 | $ 4.3 | $ (165.7) | $ (540.7) | $ (148.1) |
Denominator: | ||||||||
Weighted average shares — basic (in shares) | 862.6 | 852.6 | 860.1 | 850.5 | ||||
Effect of dilutive securities: | ||||||||
Stock-based awards (in shares) | 0 | 5.8 | 0 | 0 | ||||
Weighted average shares — diluted (in shares) | 862.6 | 858.4 | 860.1 | 850.5 | ||||
Net income (loss) per share: | ||||||||
Basic (in dollars per share) | $ (0.19) | $ 0.02 | $ (0.63) | $ (0.17) | ||||
Diluted (in dollars per share) | $ (0.19) | $ 0.02 | $ (0.63) | $ (0.17) |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Anti-dilutive Potential Shares (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Stock-based awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average shares outstanding (in shares) | 11 | 11.3 | 8.7 | 14.1 |
Supplemental Financial Inform_3
Supplemental Financial Information (in millions) - Narrative (Details) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | |||||||
Oct. 28, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | Oct. 16, 2018 | Nov. 17, 2016 | Nov. 16, 2016 | |
Business Acquisition [Line Items] | |||||||||
Trade accounts receivable sold | $ 174,400,000 | $ 174,400,000 | |||||||
Factored receivables outstanding | 174,400,000 | 174,400,000 | |||||||
Authorized repurchase amount | $ 1,000,000,000 | $ 3,250,000,000 | |||||||
Stock repurchase program, additional authorized amount | $ 700,000,000 | ||||||||
Remaining available for future share repurchases (in shares) | 399,500,000 | $ 399,500,000 | |||||||
Repurchase of common stock (in shares) | 1.1 | 2.3 | |||||||
Repurchase of common stock, value | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | $ 15,000,000 | $ 115,000,000 | ||||
Trading Plan 10b5-1 | |||||||||
Business Acquisition [Line Items] | |||||||||
Repurchase of common stock (in shares) | 0.8 | 0.8 | 0.9 | ||||||
Repurchase of common stock, value | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 |
Supplemental Financial Inform_4
Supplemental Financial Information (in millions) - Inventories (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 |
Inventories: | ||
Work-in-process | $ 579.9 | $ 756.3 |
Finished goods | 361.6 | 312 |
Inventories | $ 941.5 | $ 1,068.3 |
Supplemental Financial Inform_5
Supplemental Financial Information (in millions) - Property and Equipment, Net (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,760.6 | $ 1,535.5 |
Less: Accumulated depreciation | (1,059) | (958.1) |
Property and equipment, net | 701.6 | 577.4 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,296.1 | 1,083.9 |
Land, buildings, and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 314.7 | 306.2 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 118 | 114.5 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 31.8 | $ 30.9 |
Supplemental Financial Inform_6
Supplemental Financial Information (in millions) - Other Non-current Assets (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid ship and debits | $ 456.6 | $ 481.3 |
Technology licenses | 322.5 | 439.5 |
Prepayments on supply capacity reservation agreements | $ 292.6 | $ 282.3 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | Other non-current assets |
Operating right-of-use assets | $ 210.1 | $ 211.3 |
Non-marketable equity investments | 44.1 | 36.1 |
Other | 76.9 | 58.3 |
Other non-current assets | $ 1,402.8 | $ 1,508.8 |
Supplemental Financial Inform_7
Supplemental Financial Information (in millions) - Accrued Liabilities (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 |
Accrued liabilities: | ||
Variable consideration estimates | $ 498.3 | $ 572.8 |
Accrued income tax payable | 162.8 | 118.4 |
Accrued legal reserve | 117.6 | 102 |
Technology license obligations | 100.9 | 119.1 |
Deferred revenue | 56.9 | 45.2 |
Accrued warranty expense | 52.4 | 2.4 |
Lease liabilities - current portion | 39.5 | 43.8 |
Accrued interest payable | 17.8 | 22.1 |
Deferred non-recurring engineering credits | 17.2 | 20 |
Other | 55.8 | 46.2 |
Accrued liabilities | $ 1,119.2 | $ 1,092 |
Supplemental Financial Inform_8
Supplemental Financial Information (in millions) - Other Non-current Liabilities (Details) - USD ($) $ in Millions | Oct. 28, 2023 | Jan. 28, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities | Other non-current liabilities |
Lease liabilities - non current | $ 197 | $ 201.6 |
Technology license obligations | 191 | 267 |
Deferred tax liabilities | 73.2 | 64.2 |
Non-current income tax payable | 34 | 28.5 |
Other | 16.6 | 29.2 |
Other non-current liabilities | $ 511.8 | $ 590.5 |
Supplemental Financial Inform_9
Supplemental Financial Information (in millions) - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 9 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Increase (Decrease) in AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | $ 15,637.2 | $ 15,702.1 |
Net current-period other comprehensive income (loss), net of tax | (0.8) | |
Balance at end of period | 15,233.4 | 15,559 |
Unrealized Gain (Loss) on Cash Flow Hedges | ||
Increase (Decrease) in AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance at beginning of period | 0 | 0 |
Other comprehensive income (loss) before reclassifications | (3.6) | (1.1) |
Amounts reclassified from accumulated other comprehensive income (loss) | 2.2 | 0.3 |
Net current-period other comprehensive income (loss), net of tax | (1.4) | |
Balance at end of period | $ (1.4) | $ (0.8) |