Microchip Technology Announces Outstanding Financial Results for Third Quarter Fiscal Year 2017
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RECONCILIATION OF GAAP OTHER EXPENSE, NET TO NON-GAAP OTHER EXPENSE, NET |
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| | Three Months ended | | Nine Months Ended |
| | December 31, | | December 31, |
| | 2016 | | 2015 | | 2016 | | 2015 |
| Other expense, net, as reported | $ | (34,521 | ) | | $ | (25,918 | ) | | $ | (103,578 | ) | | $ | (48,430 | ) |
| Gain on equity securities and equity method investment | — | | | (83 | ) | | (468 | ) | | (16,147 | ) |
| Non-cash other expense, net | 12,955 | | | 12,813 | | | 38,244 | | | 37,085 | |
| Impairment on available-for-sale investment | 1,433 | | | 3,995 | | | 1,433 | | | 3,995 | |
| Other expenses on acquisition restructuring | — | | | 501 | | | — | | | 501 | |
| Non-GAAP other expense, net | $ | (20,133 | ) | | $ | (8,692 | ) | | $ | (64,369 | ) | | $ | (22,996 | ) |
| Non-GAAP other expense, net, as a percentage of net sales | (2.3 | )% | | (1.6 | )% | | (2.5 | )% | | (1.4 | )% |
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RECONCILIATION OF GAAP INCOME TAX BENEFIT TO NON-GAAP INCOME TAX PROVISION |
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| | Three Months ended | | Nine Months Ended |
| | December 31, | | December 31, |
| | 2016 | | 2015 | | 2016 | | 2015 |
| Income tax benefit, as reported | $ | (23,837 | ) | | $ | (11,053 | ) | | $ | (15,699 | ) | | $ | (32,890 | ) |
| Income tax rate, as reported | (28.5 | )% | | (22.0 | )% | | (87.3 | )% | | (14.7 | )% |
| Distributor revenue recognition adjustment | (20 | ) | | 2,556 | | | 4,164 | | | 6,810 | |
| Share-based compensation expense | 7,376 | | | 5,460 | | | 36,622 | | | 17,566 | |
| Manufacturing excursion | — | | | — | | | 295 | | | — | |
| Acquisition-related restructuring, acquired inventory valuation costs, intangible asset amortization and other costs | 8,688 | | | 12,797 | | | 28,630 | | | 32,781 | |
| Special charges (income) and other, net | 8,557 | | | (201 | ) | | 18,069 | | | 1,414 | |
| Gain on equity securities and equity method investment | — | | | (31 | ) | | (172 | ) | | (31 | ) |
| Impairment on available-for-sale investment | 526 | | | 1,472 | | | 526 | | | 1,472 | |
| Non-cash other expense, net | 4,698 | | | 4,722 | | | 14,017 | | | 13,734 | |
| Non-recurring tax events | 7,524 | | | (301 | ) | | 10,335 | | | 12,406 | |
Tax adjustment in accordance with ASC 740-270
| 8,841 | | | — | | | (34,901 | ) | | — | |
| Non-GAAP income tax provision | $ | 22,353 | | | $ | 15,421 | | | $ | 61,886 | | | $ | 53,262 | |
| Non-GAAP income tax rate | 8.3 | % | | 10.0 | % | | 8.6 | % | | 11.0 | % |
