MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(in millions except per share amounts and percentages)
(unaudited)
RECONCILIATION OF GAAP NET SALES TO NON-GAAP NET SALES
| Three Months Ended | |||||||
| June 30, | |||||||
| 2019 | 2018 | ||||||
| Net sales, as reported | $ | 1,322.6 | $ | 1,212.5 | |||
| Impact of changes in distributor inventory levels | — | 4.3 | |||||
| Non-GAAP net sales | $ | 1,322.6 | $ | 1,216.8 | |||
RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT
| Three Months Ended | |||||||
| June 30, | |||||||
| 2019 | 2018 | ||||||
| Gross profit, as reported | $ | 815.2 | $ | 642.0 | |||
| Impact of changes in distributor inventory levels | — | 3.4 | |||||
| Share-based compensation expense | 4.9 | 3.6 | |||||
| Acquisition-related costs | — | 0.2 | |||||
| Acquired inventory valuation costs | — | 107.5 | |||||
| Non-GAAP gross profit | $ | 820.1 | $ | 756.7 | |||
| Non-GAAP gross profit percentage | 62.0 | % | 62.2 | % | |||
RECONCILIATION OF GAAP RESEARCH AND DEVELOPMENT EXPENSES TO NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES
| Three Months Ended | |||||||
| June 30, | |||||||
| 2019 | 2018 | ||||||
| Research and development expenses, as reported | $ | 219.1 | $ | 171.9 | |||
| Share-based compensation expense | (19.5 | ) | (14.1 | ) | |||
| Acquisition-related costs | (0.1 | ) | (0.3 | ) | |||
| Non-GAAP research and development expenses | $ | 199.5 | $ | 157.5 | |||
| Non-GAAP research and development expenses as a percentage of net sales | 15.1 | % | 12.9 | % | |||
