Marvell Technology Group (MRVL)

Note 7 — Facilities Consolidation Charge:

        During fiscal 2003, the Company recorded a total of $19.6 million of charges associated with costs of consolidation of its facilities ("2003 facilities consolidation") of which $6.0 million related to non-cash charges. As of February 2, 2008, cash payments of $11.6 million, net of sublease income, had been made in connection with these charges. Approximately $1.9 million is accrued for the facilities consolidation charge as of February 2, 2008, of which $0.6 million represents the current portion and is included in accrued liabilities. The long-term portion totaling $1.3 million is payable through 2010, and is included in other long-term liabilities.

        Activities of accrued losses related to the 2003 facilities consolidation during fiscal 2008, 2007 and 2006 were as follows (in thousands):

        In addition to the 2003 facilities consolidation, the Company recorded a facility consolidation charge of $2.4 million of costs associated with the costs of consolidating and relocating operations in Israel during the third quarter of fiscal 2005. The charges included $2.3 million associated with the write-down of certain property and leasehold improvements related to the abandoned facilities, which reduced the carrying amount of the impaired assets, and $0.1 million of remaining lease commitments for these facilities.

Note 7 — Facilities Consolidation Charge:

        During fiscal 2003, the Company recorded a total of $19.6 million of charges associated with costs of consolidation of its facilities ("2003 facilities
consolidation") of which $6.0 million related to non-cash charges. As of February 2, 2008, cash payments of $11.6 million, net of sublease income, had been made in
connection with these charges. Approximately $1.9 million is accrued for the facilities consolidation charge as of February 2, 2008, of which $0.6 million represents the current
portion and is included in accrued liabilities. The long-term portion totaling $1.3 million is payable through 2010, and is included in other long-term liabilities.

        Activities
of accrued losses related to the 2003 facilities consolidation during fiscal 2008, 2007 and 2006 were as follows (in thousands):

        In
addition to the 2003 facilities consolidation, the Company recorded a facility consolidation charge of $2.4 million of costs associated with the costs of consolidating and
relocating operations in Israel during the third quarter of fiscal 2005. The charges included $2.3 million associated with the write-down of certain property and leasehold
improvements related to the abandoned facilities, which reduced the carrying amount of the impaired assets, and $0.1 million of remaining lease commitments for these facilities.

Facilities Consolidation Charge

During the third quarter of fiscal 2005, we recorded a total of $2.4 million of charges associated with costs of consolidating and relocating operations in Israel. The charges included $2.3 million associated with the write-down of certain property and leasehold improvements related to the abandoned facilities and $0.1 million of remaining lease commitments for these facilities. Prior to the consolidation of these facilities, we were leasing five separate facilities in Israel located in geographically dispersed areas. One of the locations was assumed through the acquisition of RADLAN. The main factors that led to the consolidation of three of the five facilities into one location were a need to centralize operations into a convenient location near the center of the country and a focus on improving productivity by minimizing travel time between facilities. As a result, we completed the consolidation of the majority of our Israel operations into one facility during the third quarter of fiscal 2005.

Note 5. Facilities Consolidation Charge

During fiscal 2003, the Company recorded a total of $19.6 million of charges associated with costs of consolidation of its facilities (“2003 facilities consolidation”) of which $6.0 million related to non-cash charges.  As of July 29, 2006, cash payments of $10.3 million, net of sublease income, had been made in connection with these charges. Approximately $3.2 million is accrued for the facilities consolidation charge as of July 29, 2006, of which $0.7 million represents the current portion and is included in accrued liabilities.  The long-term portion totaling $2.5 million is payable through 2010, and is included in other long-term liabilities.

Activities of accrued losses related to the 2003 facilities consolidation during the six months ended July 29, 2006 were as follows (in thousands):

Note 5. Facilities Consolidation Charge

During fiscal 2003, the Company recorded a total of $19.6 million of charges associated with costs of consolidation of its facilities (“2003 facilities consolidation”) of which $6.0 million related to non-cash charges.  As of April 29, 2006, cash payments of $10.1 million, net of sublease income, had been made in connection with these charges. Approximately $3.4 million is accrued for the facilities consolidation charge as of April 29, 2006, of which $0.7 million represents the current portion and is included in accrued liabilities.  The long-term portion totaling $2.7 million is payable through 2010, and is included in other long-term liabilities.

Activities of accrued losses related to the 2003 facilities consolidation during the first quarter of fiscal 2007 were as follows (in thousands):

Note 5. Facilities Consolidation Charge

During fiscal 2003, the Company recorded a total of $19.6 million of charges associated with costs of consolidation of its facilities (“2003 facilities consolidation”) of which $6.0 million related to non-cash charges.  As of October 28, 2006, cash payments of $10.5 million, net of sublease income, had been made in connection with these charges. Approximately $3.0 million is accrued for the facilities consolidation charge as of October 28, 2006, of which $0.6 million represents the current portion and is included in accrued liabilities.  The long-term portion totaling $2.4 million is payable through 2010, and is included in other long-term liabilities.

Activities of accrued losses related to the 2003 facilities consolidation during the nine months ended October 28, 2006 were as follows (in thousands):

4. Facilities Consolidation Charge

During fiscal 2003, the Company recorded a total of $19.6 million of charges associated with costs of consolidation of its facilities. These charges included $12.6 million in lease abandonment charges relating to the consolidation of its three facilities in California into one location. The lease abandonment charge included the remaining lease commitments of these facilities reduced by the estimated sublease income throughout the duration of the lease term. The Company incurred charges of $1.0 million during the quarter ended April 30, 2002, as a result of duplicate lease and other costs associated with the dual occupation of its current and abandoned facilities. The facilities consolidation charge also included $6.0 million associated with the write-down of certain property and leasehold improvements related to the abandoned facilities, which reduced the carrying amount of the impaired assets. During the quarter ended July 31, 2003, the Company subleased the abandoned facilities. Actual sublease income approximated the estimated sublease income.

As of April 30, 2006, cash payments of $10.1 million, net of sublease income, had been made in connection with these charges relating to the consolidation of the Company’s facilities in California. Approximately $3.4 million is accrued for this facilities consolidation charge, net of sublease income, as of April 30, 2006, of which $0.7 million is the current portion included in accrued liabilities, while the long-term portion, totaling $2.7 million, is payable through 2010 and is included in other long-term liabilities.

A summary of the facilities consolidation accrual related to the fiscal 2003 charge during the three months ended April 30, 2006 is as follows (in thousands):

Facilities Consolidation Charge

During the third quarter of fiscal 2005, we recorded a total of $2.4 million of charges associated with costs of consolidating and relocating operations in Israel. The charges included $2.3 million associated with the write-down of certain property and leasehold improvements related to the abandoned facilities and $0.1 million of remaining lease commitments for these facilities. Prior to the consolidation of these facilities, we were leasing five separate facilities in Israel located in geographically dispersed areas. One of the locations was assumed through the acquisition of RADLAN. The main factors that led to the consolidation of three of the five facilities into one location were a need to centralize operations into a convenient location near the center of the country and a focus on improving productivity by minimizing

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travel time between facilities. As a result, we completed the consolidation of the majority of our Israel operations into one facility during the third quarter of fiscal 2005.

At January 31, 2005, cash payments of $8.4 million, net of sublease income had been made in connection with the facilities consolidation charges recorded in fiscal 2003 and the third quarter of fiscal 2005. Approximately $5.1 million is accrued for the facilities consolidation charge as of January 31, 2005, of which $1.3 million is the current portion included in accrued liabilities while the long-term portion totaling $3.8 million is payable through 2010. The facilities consolidation charge is an estimate as of January 31, 2005.

Facilities Consolidation Charge

During the quarter ended October 31, 2004, we recorded a total of $2.4 million of charges associated with costs of consolidating and relocating operations in Israel.  The charges included $2.3 million associated with the write-down of certain property and leasehold improvements related to the abandoned facilities and $0.1 million of remaining lease commitments for these facilities.  Prior to the consolidation of these facilities, we were leasing five separate facilities in Israel located in geographically dispersed areas of Israel.  One of the locations was assumed through the acquisition of RADLAN.  The main factors that led to the consolidation of three of the five facilities into one location were a need to centralize operations into a convenient location near the center of the country and a focus on improving productivity by minimizing travel time between facilities.  As a result, we completed the consolidation of the majority of our Israel operations into one facility during the third quarter of fiscal 2005.

4. Facilities Consolidation Charge

During fiscal 2003, the Company recorded a $19.6 million charge associated with costs of consolidation of its facilities. These charges included $12.6 million in lease abandonment charges relating to the consolidation of its three facilities in California into one location. The lease abandonment charge included the remaining lease commitments for these facilities reduced by the estimated sublease income throughout the duration of the lease term. The Company incurred charges of $1.0 million during the quarter ended April 30, 2002, as a result of duplicate lease and other costs associated with the dual occupation of its current and abandoned facilities. The facilities consolidation charge also included $6.0 million associated with the write-down of certain property and leasehold improvements related to the abandoned facilities, which reduced the carrying amount of the impaired assets. During the quarter ended July 31, 2003, the Company subleased the abandoned facilities. Actual sublease income approximated the estimated sublease income.

As of July 31, 2005, cash payments of $9.5 million, net of sublease income, had been made in connection with these charges relating to the consolidation of the Company’s facilities in California. Approximately $4.0 million is accrued for this facilities consolidation charge as of July 31, 2005, of which $0.6 million is the current portion included in accrued liabilities, while the long-term portion, totaling $3.4 million, is payable through 2010 and is included in other long-term liabilities.

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