MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(in millions except per share amounts and percentages)
(unaudited)
RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Gross profit, as reported | $ | 1,068.3 | $ | 807.9 | $ | 2,075.9 | $ | 1,606.2 | |||||||
| Share-based compensation expense | 9.1 | 6.0 | 17.9 | 12.4 | |||||||||||
| COVID-19 shelter-in-place restrictions on manufacturing activities | — | — | — | 2.8 | |||||||||||
| Non-GAAP gross profit | $ | 1,077.4 | $ | 813.9 | $ | 2,093.8 | $ | 1,621.4 | |||||||
| Non-GAAP gross profit percentage | 65.3 | % | 62.2 | % | 65.0 | % | 61.9 | % | |||||||
RECONCILIATION OF GAAP RESEARCH AND DEVELOPMENT EXPENSES TO NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
| Research and development expenses, as reported | $ | 246.2 | $ | 199.8 | $ | 484.6 | $ | 397.8 | |||||||||||
| Share-based compensation expense | (26.1 | ) | (24.5 | ) | (52.7 | ) | (45.0 | ) | |||||||||||
| Acquisition-related | (0.2 | ) | — | (0.4 | ) | — | |||||||||||||
| Non-GAAP research and development expenses | $ | 219.9 | $ | 175.3 | $ | 431.5 | $ | 352.8 | |||||||||||
| Non-GAAP research and development expenses as a percentage of net sales | 13.3 | % | 13.4 | % | 13.4 | % | 13.5 | % | |||||||||||
