INTEGRATED DEVICE TECHNOLOGY, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (a)

(Unaudited)

(In thousands, except per share data)

Three Months Ended

Twelve Months Ended

Apr. 1, 2018

Dec. 31, 2017

Apr. 2, 2017

Apr. 1, 2018

Apr. 2, 2017

GAAP net income (loss) from continuing operations

$     20,711

$      (68,241)

$     30,209

$    (12,136)

$   109,184

GAAP diluted net income (loss) per share - continuing operations

$         0.15

$          (0.51)

$         0.22

$        (0.09)

$         0.79

   Acquisition-related:

        Amortization of acquisition-related intangibles 

9,326

9,287

4,782

36,452

21,360

        Acquisition-related costs

-

-

2,223

2,225

2,295

        Amortization of fair market value adjustment to inventory

753

1,178

407

8,023

4,079

   Restructuring-related:

        Severance costs (benefit)

4,953

378

(387)

7,549

16,139

        Facility closure costs

299

-

-

2,913

197

        Assets impairment and other

9,862

-

156

12,744

1,026

   Other:

        Stock-based compensation expense 

12,436

13,578

10,266

50,784

39,874

        Non-cash interest expense

3,792

3,744

3,393

15,123

13,329

        Assets impairment and other

(184)

-

-

(184)

(652)

        Loss from divestiture

-

-

-

-

710

        Certain unrealized foreign exchange gain

(794)

(360)

-

(3,583)

-

        Compensation expense (benefit) - deferred compensation plan

(128)

525

486

1,278

1,586

        Loss (gain) on deferred compensation plan securities

158

(518)

(474)

(1,163)

(1,532)

        Non-GAAP tax adjustments

2,183

98,003

(2,942)

94,327

(11,862)

Non-GAAP net income from continuing operations

$     63,367

$       57,574

$     48,119

$   214,352

$   195,733

GAAP weighted average shares - diluted

135,016

132,689

136,903

132,651

137,440

        Non-GAAP adjustment

1,773

5,714

1,596

5,675

1,976

Non-GAAP weighted average shares - diluted

136,789

138,403

138,499

138,326

139,416

Non-GAAP diluted net income per share continuing operations

$         0.46

$           0.42

$         0.35

$         1.55

$         1.40

GAAP gross profit

$   127,100

$     128,385

$   101,672

$   482,285

$   420,638

   Acquisition-related:

        Amortization of acquisition-related intangibles 

6,264

6,127

3,116

23,895

12,817

        Amortization of fair market value adjustment to inventory

753

1,178

407

8,023

4,079

   Restructuring-related:

        Severance costs (benefit)

164

-

(36)

390

2,505

        Assets impairment and other

5,460

-

156

5,460

492

   Other:

        Compensation expense (benefit) - deferred compensation plan

(29)

123

114

301

517

        Stock-based compensation expense 

830

814

660

3,040

2,936

Non-GAAP gross profit

$   140,542

$     136,627

$   106,089

$   523,394

$   443,984

GAAP R&D expenses:

$     55,694

$       49,836

$     35,533

$   202,721

$   165,104

   Restructuring-related:

        Severance benefit (costs)

(3,733)

18

(44)

(4,078)

(10,531)

        Facility closure costs

-

-

-

-

(147)

        Assets impairment and other

(4,402)

-

-

(7,202)

(106)

   Other:

        Compensation benefit (expense) - deferred compensation plan

66

(268)

(248)

(651)

(677)

        Stock-based compensation expense 

(5,390)

(6,816)

(4,226)

(24,263)

(16,067)

Non-GAAP R&D expenses

$     42,235

$       42,770

$     31,015

$   166,527

$   137,576

GAAP SG&A expenses:

$     41,532

$       40,689

$     36,225

$   168,648

$   145,193

   Acquisition-related:

        Amortization of acquisition-related intangibles 

(3,062)

(3,160)

(1,666)

(12,557)

(8,543)

        Acquisition-related costs

-

-

(2,223)

(2,225)

(2,295)

   Restructuring-related:

        Severance benefit (costs)

(1,056)

(396)

395

(3,081)

(3,103)

        Facility closure costs

(299)

-

-

(2,913)

(50)

        Assets impairment and other

-

-

-

(82)

(428)

   Other:

        Compensation benefit (expense) - deferred compensation plan

33

(134)

(124)

(326)

(392)

        Stock-based compensation expense 

(6,216)

(5,948)

(5,380)

(23,481)

(20,871)

Non-GAAP SG&A expenses

$     30,932

$       31,051

$      27,227

$   123,983

$    109,511

GAAP interest and other expense, net

$      (4,875)

$        (5,068)

$      (2,153)

$    (18,744)

$    (11,056)

        Non-cash interest expense

3,792

3,744

3,393

15,123

13,329

        Assets impairment and other

(184)

-

-

(184)

(652)

        Loss from divestiture

-

-

-

-

710

        Loss (gain) on deferred compensation plan securities

158

(518)

(474)

(1,163)

(1,532)

        Certain unrealized foreign exchange gain

(794)

(360)

-

(3,583)

-

Non-GAAP interest and other income (expense), net

$      (1,903)

$        (2,202)

$          766

$      (8,551)

$          799

GAAP benefit from (provision for) income taxes - continuing operations

$      (4,288)

$    (101,033)

$       2,448

$  (104,308)

$       9,899

        Non-GAAP tax adjustments

(2,183)

(98,003)

2,942

(94,327)

11,862

Non-GAAP provision for income taxes - continuing operations

$      (2,105)

$        (3,030)

$        (494)

$      (9,981)

$      (1,963)

(a)  Refer to the accompanying "Notes to Non-GAAP Financial Measures" for a detailed discussion of management's use of non-GAAP financial measures.