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 | |||||||
| June 30, | |||||||
| 2020 | 2019 | ||||||
| Gross profit, as reported | $ | 798.3 | $ | 815.2 | |||
| Share-based compensation expense | 6.4 | 4.9 | |||||
| COVID-19 shelter-in-place restrictions on manufacturing activities | 2.8 | — | |||||
| Non-GAAP gross profit | $ | 807.5 | $ | 820.1 | |||
| Non-GAAP gross profit percentage | 61.7 | % | 62.0 | % | |||
RECONCILIATION OF GAAP RESEARCH AND DEVELOPMENT EXPENSES TO NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES
| Three Months Ended | |||||||
| June 30, | |||||||
| 2020 | 2019 | ||||||
| Research and development expenses, as reported | $ | 198.0 | $ | 219.1 | |||
| Share-based compensation expense | (20.5 | ) | (19.5 | ) | |||
| Acquisition-related costs | — | (0.1 | ) | ||||
| Non-GAAP research and development expenses | $ | 177.5 | $ | 199.5 | |||
| Non-GAAP research and development expenses as a percentage of net sales | 13.6 | % | 15.1 | % | |||
RECONCILIATION OF GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSES TO NON-GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
| Three Months Ended | |||||||
| June 30, | |||||||
| 2020 | 2019 | ||||||
| Selling, general and administrative expenses, as reported | $ | 146.3 | $ | 167.9 | |||
| Share-based compensation expense | (15.5 | ) | (16.3 | ) | |||
| Acquisition-related costs | (1.5 | ) | (6.5 | ) | |||
| Professional services associated with certain legal matters | (3.5 | ) | — | ||||
| IT security remediation | (1.0 | ) | (3.0 | ) | |||
| Non-GAAP selling, general and administrative expenses | $ | 124.8 | $ | 142.1 | |||
| Non-GAAP selling, general and administrative expenses as a percentage of net sales | 9.5 | % | 10.7 | % | |||
