For the three and six months ended September 30, 2018, non-GAAP income tax expense is presented based on cash taxes for fiscal 2019, excluding transition tax payments under the Tax Cuts and Jobs Act.
| Three and Six Months Ended | |||||||
| September 30, 2018 | |||||||
| Income tax benefit, as reported | $ | (135.7 | ) | $ | (133.7 | ) | |
| Income tax rate, as reported | 344.4 | % | 7,864.7 | % | |||
| Other non-GAAP tax adjustment 1 | 152.2 | 165.0 | |||||
| Non-GAAP income tax provision | $ | 16.5 | $ | 31.3 | |||
| Non-GAAP income tax rate | 3.5 | % | 3.5 | % | |||
For the three and six months ended September 30, 2017, non-GAAP income tax expense is presented as the tax impact of non-GAAP adjustments calculated using the applicable tax rates in the jurisdictions where the adjustments occurred.
| Three and Six Months Ended | |||||||
| September 30, 2017 | |||||||
| Income tax benefit, as reported | $ | (3.0 | ) | $ | (7.3 | ) | |
| Income tax rate, as reported | (1.6 | )% | (2.1 | )% | |||
| Share-based compensation expense 2 | 7.8 | 15.2 | |||||
| Manufacturing excursion 2 | — | (0.2 | ) | ||||
| Acquisition-related costs 2 | 0.3 | 1.3 | |||||
| Amortization of acquired intangible assets 2 | 9.8 | 19.7 | |||||
| Special charges and other, net 2 | 7.2 | 6.0 | |||||
| Loss on settlement of debt 2 | — | 5.1 | |||||
| Non-cash other expense, net 2 | 10.0 | 19.8 | |||||
| Non-recurring tax events 2 | 5.6 | 11.2 | |||||
| Tax adjustment in accordance with ASC 740-270 2 | (3.3 | ) | (5.8 | ) | |||
| Non-GAAP income tax provision | $ | 34.4 | $ | 65.0 | |||
| Non-GAAP income tax rate | 9.1 | % | 8.9 | % | |||
RECONCILIATION OF GAAP NET INCOME AND GAAP DILUTED NET INCOME PER COMMON SHARE TO NON-GAAP NET INCOME AND NON-GAAP DILUTED NET INCOME PER COMMON SHARE
| Three and Six Months Ended | |||||||
| September 30, 2018 | |||||||
| Net income, as reported | $ | 96.3 | $ | 132.0 | |||
| Impact of changes in distributor inventory levels | 56.1 | 59.5 | |||||
| Share-based compensation expense | 41.4 | 70.8 | |||||
| Acquisition-related costs | 6.6 | 33.7 | |||||
| Excess capacity charges to normalize acquired inventory levels | 2.3 | 2.3 | |||||
| Acquired inventory valuation costs | 182.1 | 289.6 | |||||
| Amortization of acquired intangible assets | 169.9 | 303.6 | |||||
| Special charges and other, net | 18.2 | 58.3 | |||||
| Loss on settlement of debt | 4.1 | 4.1 | |||||
| Non-cash other expense | 28.9 | 65.4 | |||||
| Losses on available-for-sale investments | 0.9 | 6.1 | |||||
| Other non-GAAP tax adjustment 1 | (152.2 | ) | (165.0 | ) | |||
| Non-GAAP net income | $ | 454.6 | $ | 860.4 | |||
| Non-GAAP net income as a percentage of net sales | 30.0 | % | 31.5 | % | |||
| GAAP net income as a percentage of net sales | 6.7 | % | 5.0 | % | |||
| Diluted net income per common share, as reported | $ | 0.38 | $ | 0.52 | |||
| Non-GAAP diluted net income per common share | $ | 1.81 | $ | 3.41 | |||
| Diluted common shares outstanding, as reported | 251.8 | 252.0 | |||||
| Diluted common shares outstanding non-GAAP | 251.8 | 252.0 | |||||
