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RECONCILIATION OF GAAP INCOME TAX BENEFIT TO NON-GAAP INCOME TAX PROVISION |
| | Three Months ended | | Twelve Months Ended |
| | March 31, | | March 31, |
| | 2017 | | 2016 | | 2017 | | 2016 |
| Income tax benefit, as reported | $ | (65,106 | ) | | $ | (9,742 | ) | | $ | (80,805 | ) | | $ | (42,632 | ) |
| Income tax rate, as reported | (90.7 | )% | | (16.9 | )% | | (90.0 | )% | | (15.2 | )% |
| Distributor revenue recognition adjustment | — | | | 1,911 | | | 4,164 | | | 8,721 | |
| Share-based compensation expense | 7,592 | | | 5,446 | | | 44,214 | | | 23,012 | |
| Manufacturing excursion | (495 | ) | | 1,324 | | | (200 | ) | | 1,324 | |
| Acquisition-related restructuring, acquired inventory valuation costs, intangible asset amortization and other costs | 8,465 | | | 2,018 | | | 37,095 | | | 34,799 | |
| Special charges and other, net | 17,335 | | | 31 | | | 35,404 | | | 1,445 | |
| Loss on induced conversion and extinguishment of convertible debt | 16,082 | | | — | | | 16,082 | | | — | |
| Non-cash other expense, net | 7,198 | | | 5,692 | | | 21,215 | | | 19,426 | |
| Gain on equity securities and equity method investment | — | | | — | | | (172 | ) | | (31 | ) |
| Impairment on available-for-sale investment | — | | | — | | | 526 | | | 1,472 | |
| Non-recurring tax events | (476 | ) | | 12,300 | | | 9,859 | | | 24,706 | |
Tax adjustment in accordance with ASC 740-270
| 34,901 | | | — | | | — | | | — | |
| Non-GAAP income tax provision | $ | 25,496 | | | $ | 18,980 | | | $ | 87,382 | | | $ | 72,242 | |
| Non-GAAP income tax rate | 8.4 | % | | 11.0 | % | | 8.5 | % | | 11.0 | % |
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RECONCILIATION OF GAAP NET INCOME FROM CONTINUING OPERATIONS AND GAAP DILUTED NET INCOME PER COMMON SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO MICROCHIP TECHNOLOGY STOCKHOLDERS TO NON-GAAP NET INCOME FROM CONTINUING OPERATIONS AND NON-GAAP DILUTED NET INCOME PER COMMON SHARE FROM CONTINUING OPERATIONS ATTRIBUTABLE TO MICROCHIP TECHNOLOGY STOCKHOLDERS |
| | Three Months Ended | | Twelve Months Ended |
| | March 31, | | March 31, |
| | 2017 | | 2016 | | 2017 | | 2016 |
| Net income from continuing operations, as reported | $ | 136,908 | | | $ | 67,355 | | | $ | 170,592 | | | $ | 324,132 | |
| Distributor revenue recognition adjustment, net of tax effect | — | | | 3,484 | | | 46,159 | | | 15,073 | |
| Share-based compensation expense, net of tax effect | 14,474 | | | 11,871 | | | 83,941 | | | 48,408 | |
| Manufacturing excursion, net of tax effect | (855 | ) | | 2,300 | | | (350 | ) | | 2,300 | |
| Acquisition-related restructuring, acquired inventory valuation costs, intangible asset amortization and other costs, net of tax effect | 91,818 | | | 69,351 | | | 518,285 | | | 195,982 | |
| Special charges and other, net of tax effect | 28,751 | | | 739 | | | 63,204 | | | 2,512 | |
| Loss on induced conversion and extinguishment of convertible debt, net of tax effect | 27,797 | | | — | | | 27,797 | | | — | |
| Non-cash other expense, net of tax effect | 12,443 | | | 10,228 | | | 36,670 | | | 33,579 | |
| Noncontrolling interests | — | | | — | | | — | | | (375 | ) |
| Gain on equity securities and equity method investment, net of tax effect | — | | | — | | | (296 | ) | | (16,116 | ) |
| Impairment on available-for-sale investment, net of tax effect | — | | | — | | | 907 | | | 2,523 | |
| Non-recurring tax events | 476 | | | (12,300 | ) | | (9,859 | ) | | (24,706 | ) |
| Tax adjustment in accordance with ASC 740-270 | (34,901 | ) | | — | | | — | | | — | |
| Non-GAAP net income from continuing operations | $ | 276,911 | | | $ | 153,028 | | | $ | 937,050 | | | $ | 583,312 | |
| Non-GAAP net income from continuing operations as a percentage of net sales | 30.7 | % | | 26.9 | % | | 26.8 | % | | 26.3 | % |
| GAAP net income from continuing operations as a percentage of net sales | 15.2 | % | | 12.1 | % | | 5.0 | % | | 14.9 | % |
| Diluted net income per common share from continuing operations attributable to Microchip Technology stockholders, as reported | $ | 0.57 | | | $ | 0.31 | | | $ | 0.73 | | | $ | 1.49 | |
| Non-GAAP diluted net income per common share from continuing operations attributable to Microchip Technology stockholders | $ | 1.16 | | | $ | 0.70 | | | $ | 3.99 | | | $ | 2.68 | |
| Diluted common shares outstanding, as reported | 239,171 | | | 217,711 | | | 234,806 | | | 217,388 | |
| Diluted common shares outstanding Non-GAAP | 239,171 | | | 217,711 | | | 234,806 | | | 217,260 | |
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