Microchip Technology Announces Financial Results for Second Quarter of Fiscal Year 2020
RECONCILIATION OF GAAP NET INCOME AND GAAP DILUTED NET INCOME PER COMMON SHARE TO NON-GAAP NET INCOME AND NON-GAAP DILUTED NET INCOME PER COMMON SHARE
| | Three Months Ended | | Six Months Ended |
| | September 30, | | September 30, |
| | 2019 | | 2018 | | 2019 | | 2018 |
| Net income, as reported | $ | 108.9 | | | $ | 96.3 | | | $ | 159.6 | | | $ | 132.0 | |
| Share-based compensation expense | 45.3 | | | 41.4 | | | 86.0 | | | 70.8 | |
| Acquisition-related costs | 8.1 | | | 6.6 | | | 14.7 | | | 33.7 | |
| IT security remediation | 2.0 | | | — | | | 5.0 | | | — | |
| Excess capacity charges to normalize acquired inventory levels | — | | | 2.3 | | | — | | | 2.3 | |
| Acquired inventory valuation costs | — | | | 182.1 | | | — | | | 289.6 | |
| Amortization of acquired intangible assets | 248.2 | | | 169.9 | | | 496.7 | | | 303.6 | |
| Special charges and other, net | 3.6 | | | 18.2 | | | 11.7 | | | 58.3 | |
| Loss on settlement of debt | 0.1 | | | 4.1 | | | 2.0 | | | 4.1 | |
| Non-cash other expense, net | 30.6 | | | 28.9 | | | 60.5 | | | 65.4 | |
| (Gains) losses on available-for-sale investments | (0.3 | ) | | 0.9 | | | (1.1 | ) | | 6.1 | |
| Other non-GAAP tax adjustment | (80.8 | ) | | (152.2 | ) | | (111.8 | ) | | (165.0 | ) |
| Non-GAAP net income | $ | 365.7 | | | $ | 398.5 | | | $ | 723.3 | | | $ | 800.9 | |
| Non-GAAP net income as a percentage of net sales | 27.3 | % | | 27.8 | % | | 27.2 | % | | 30.3 | % |
| GAAP net income as a percentage of net sales | 8.1 | % | | 6.7 | % | | 6.0 | % | | 5.0 | % |
| Diluted net income per common share, as reported | $ | 0.43 | | | $ | 0.38 | | | $ | 0.63 | | | $ | 0.52 | |
| Non-GAAP diluted net income per common share | $ | 1.43 | | | $ | 1.58 | | | $ | 2.84 | | | $ | 3.18 | |
| Diluted common shares outstanding, as reported | 255.3 | | | 251.8 | | | 254.6 | | | 252.0 | |
| Diluted common shares outstanding non-GAAP | 255.3 | | | 251.8 | | | 254.6 | | | 252.0 | |
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