Microchip Technology Announces Financial Results for Fourth Quarter and Fiscal Year 2020
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 Months Ended | | Twelve Months Ended |
| | March 31, | | March 31, |
| | 2020 | | 2019 | | 2020 | | 2019 |
| Net income, as reported | $ | 99.9 | | | $ | 174.7 | | | $ | 570.6 | | | $ | 355.9 | |
| Share-based compensation expense | 40.7 | | | 39.1 | | | 170.2 | | | 149.2 | |
| COVID-19 shelter-in-place restrictions on manufacturing activities | 3.3 | | | — | | | 3.3 | | | — | |
| Acquisition-related costs | 10.9 | | | 5.0 | | | 35.8 | | | 44.1 | |
| Professional services associated with certain legal matters | 3.3 | | | — | | | 3.3 | | | — | |
| IT security remediation | 1.1 | | | — | | | 6.8 | | | — | |
| Excess capacity charges to normalize acquired inventory levels | — | | | — | | | — | | | 2.3 | |
| Acquired inventory valuation costs | — | | | 1.8 | | | — | | | 365.7 | |
| Amortization of acquired intangible assets | 248.5 | | | 176.9 | | | 993.9 | | | 674.1 | |
| Special charges (income) and other, net | 17.2 | | | (23.3 | ) | | 46.7 | | | 33.7 | |
| Loss on settlement of debt | 3.4 | | | 8.3 | | | 5.4 | | | 12.6 | |
| Non-cash other expense, net | 31.0 | | | 29.7 | | | 122.6 | | | 124.3 | |
| Acquisition-related other income | — | | | (12.5 | ) | | — | | | (12.5 | ) |
| (Gains) losses on available-for-sale investments | (1.5 | ) | | (0.7 | ) | | (2.6 | ) | | 6.0 | |
| Other non-GAAP tax adjustment | (82.3 | ) | | (28.6 | ) | | (516.4 | ) | | (202.5 | ) |
| Non-GAAP net income | $ | 375.5 | | | $ | 370.4 | | | $ | 1,439.6 | | | $ | 1,552.9 | |
| Non-GAAP net income as a percentage of net sales | 28.3 | % | | 27.9 | % | | 27.3 | % | | 29.0 | % |
| GAAP net income as a percentage of net sales | 7.5 | % | | 13.1 | % | | 10.8 | % | | 6.7 | % |
| Diluted net income per common share, as reported | $ | 0.39 | | | $ | 0.70 | | | $ | 2.23 | | | $ | 1.42 | |
| Non-GAAP diluted net income per common share | $ | 1.46 | | | $ | 1.48 | | | $ | 5.62 | | | $ | 6.21 | |
| Diluted common shares outstanding, as reported | 257.3 | | | 250.9 | | | 256.2 | | | 249.9 | |
| Diluted common shares outstanding non-GAAP | 257.3 | | | 250.9 | | | 256.2 | | | 249.9 | |
