Table of Contents

MARVELL TECHNOLOGY GROUP LTD.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Share Repurchase Program

The Company repurchased 14.6 million common shares for $223.2 million in cash during the three months ended April 28, 2012 and repurchased 50.3 million common shares for $803.5 million in cash during the three months ended April 30, 2011. The repurchased shares were retired immediately after the repurchases were completed.

As of April 28, 2012, the Company had completed share repurchases totaling $1.7 billion under its share repurchase program, with $348.5 million remaining available for repurchase under the program.

In May 2012, after the end of the three months ended April 28, 2012, the board of directors authorized an additional $500 million for a total $2.5 billion to be used to repurchase the Company’s common shares under the program. Subsequent to the end of the three months ended April 28, 2012 and through May 25, 2012, the Company repurchased an additional 10.0 million common shares for $130.1 million at an average price per share of $13.00, bringing its total repurchases under the repurchase program to $1.8 billion.

Dividend Program

In May 2012, after the end of the three months ended April 28, 2012, the Company announced that it had declared the payment of its first quarterly dividend of $0.06 per share to be paid on July 11, 2012 to all shareholders of record as of June 21, 2012. The declared dividend will be paid from retained earnings. The Company intends to pay a regular quarterly cash dividend on its common shares subject to, among other things, the best interests of its shareholders, the Company’s results of operations, cash balances and future cash requirements, financial condition, statutory requirements of Bermuda law, and other factors that the board of directors may deem relevant.

Note 11. Stock-Based Compensation

The following table presents details of stock-based compensation expenses by functional line item (in thousands):

Stock-based compensation of $1.5 million and $2.1 million were capitalized in inventory as of April 28, 2012 and January 28, 2012.

Valuation Assumptions

The following weighted average assumptions were used for each respective period to calculate the fair value of each time-based equity award on the date of grant using the Black-Scholes option pricing model and of each market-based equity award using a Monte Carlo simulation model:

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