MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(in millions except per share amounts and percentages)
(unaudited)

The non-GAAP results for the three and nine months ended December 31, 2018 in the following reconciliation tables have been adjusted from previously reported amounts.  The percentages are now calculated based on GAAP net sales whereas the previously reported percentages were calculated based on non-GAAP net sales, which included the impact of changes in distributor inventory levels (sell-through).  Please refer to our prior year earnings releases for the previously reported non-GAAP figures.

RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT

	Three Months Ended								Nine Months Ended
	December 31,								December 31,
	2019				2018				2019				2018
Gross profit, as reported	$	785.5			$	779.6			$	2,428.2			$	2,110.9
Share-based compensation expense	5.7				3.4				15.8				10.9
Acquisition-related costs	—				—				—				0.2
Excess capacity charges to normalize acquired inventory levels	—				—				—				2.3
Acquired inventory valuation costs	—				74.3				—				363.9
Non-GAAP gross profit	$	791.2			$	857.3			$	2,444.0			$	2,488.2
Non-GAAP gross profit percentage	61.5		%		62.4		%		61.9		%		61.9		%