CYPRESS SEMICONDUCTOR CORPORATION

RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES

(In thousands, except per-share data)

(Unaudited)

Table A: GAAP to Non-GAAP reconciling items (Three Months Ended Q1 2017)

Cost of
revenues

Research and
development

SG&A and
Restructuring
costs

Amortization of
Intangible assets

Interest and other
expense, net

Income tax
(provision)
benefit

GAAP [i]

$

332,814

$

88,481

$

78,686

$

48,249

$

(24,435)

$

(4,927)

[1] Stock based compensation

5,331

11,771

8,835

—

—

—

[2] Changes in value of deferred compensation plan

166

597

1,008

—

(1,558)

—

[3] Merger, integration, related costs and adjustments related to assets held for sale

1,350

—

(1,479)

—

—

—

[4] Inventory Step-up related to acquisition accounting

2,864

—

—

—

—

—

[5] Losses from equity method investments

—

—

—

—

5,076

—

[6] Imputed interest on convertible debt, equity component amortization on convertible debt and others

—

—

—

—

3,489

—

[7] Amortization of debt issuance costs

—

—

—

—

858

—

[8] Amortization of  Intangible assets

—

—

48,249

—

—

[9] Restructuring costs

—

—

2,572

—

—

—

[10] Tax impact

—

—

—

—

415

2,125

Non - GAAP [ii]

$

323,103

$

76,113

$

67,750

$

—

$

(16,155)

$

(2,802)

Impact of reconciling items [ii - i]

$

(9,711)

$

(12,368)

$

(10,936)

$

(48,249)

$

8,280

$

2,125