Microchip Technology Announces Financial Results for Third

Microchip Technology Announces Financial Results for Third Quarter of Fiscal Year 2019

RECONCILIATION OF GAAP OTHER EXPENSE, NET TO NON-GAAP OTHER EXPENSE, NET

	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2018		2017		2018		2017
Other expense, net, as reported	$	(139.6)	$	(48.4)	$	(376.1)	$	(142.9)
Loss on settlement of debt	0.2		2.1		4.3		16.0
Non-cash other expense, net	29.2		27.8		94.6		81.8
Losses on available-for-sale investments	0.6		—		6.7		—
Non-GAAP other expense, net	$	(109.6)	$	(18.5)	$	(270.5)	$	(45.1)
Non-GAAP other expense, net, as a percentage of net sales	(7.7)%		(1.9)%		(6.5)%		(1.5)%

RECONCILIATION OF GAAP INCOME TAX PROVISION (BENEFIT) TO NON-GAAP INCOME TAX PROVISION

For the three and nine months ended December 31, 2018, non-GAAP income tax expense is presented based on cash taxes for fiscal 2019, excluding transition tax payments under the Tax Cuts and Jobs Act.

	Three and Nine Months Ended
	December 31, 2018
Income tax provision (benefit), as reported	$	5.8	$	(127.9)
Income tax rate, as reported	10.5%		(240.0)%
Other non-GAAP tax adjustment ¹	8.9		173.9
Non-GAAP income tax provision	$	14.7	$	46.0
Non-GAAP income tax rate	3.5%		3.5%

For the three and nine months ended December 31, 2017, non-GAAP income tax expense is presented as the tax impact of non-GAAP adjustments calculated using the applicable tax rates in the jurisdictions where the adjustments occurred.

	Three and Nine Months Ended
	December 31, 2017
Income tax provision, as reported	$	447.8	$	440.4
Income tax rate, as reported	227.7%		80.2%
Share-based compensation expense ²	6.6		21.8
Manufacturing excursion ²	—		(0.2)
Acquisition-related costs ²	0.2		1.6
Amortization of acquired intangible assets ²	8.1		27.8
Special charges and other, net ²	—		6.0
Loss on settlement of debt ²	0.1		5.2
Non-cash other expense, net ²	8.0		27.8
Non-recurring tax events ²	(439.8)		(428.6)
Tax adjustment in accordance with ASC 740-270 ²	0.9		(4.9)
Non-GAAP income tax provision	$	31.9	$	96.9
Non-GAAP income tax rate	8.5%		8.8%

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