Microchip Technology Announces Financial Results for Second Quarter of Fiscal Year 2021
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 | | Six Months Ended |
| | September 30, | | September 30, |
| | 2020 | | 2019 | | 2020 | | 2019 |
| Net income, as reported | $ | 73.6 | | | $ | 108.9 | | | $ | 197.2 | | | $ | 159.6 | |
| Share-based compensation expense | 49.7 | | | 45.3 | | | 92.1 | | | 86.0 | |
| COVID-19 shelter-in-place restrictions on manufacturing activities | — | | | — | | | 2.8 | | | — | |
| Acquisition-related | (0.9 | ) | | 8.1 | | | 0.6 | | | 14.7 | |
| Professional services associated with certain legal matters | 1.3 | | | — | | | 4.8 | | | — | |
| IT security remediation | 0.3 | | | 2.0 | | | 1.3 | | | 5.0 | |
| Amortization of acquired intangible assets | 232.9 | | | 248.2 | | | 468.3 | | | 496.7 | |
| Special charges and other, net | 4.3 | | | 3.6 | | | 4.6 | | | 11.7 | |
| Loss on settlement of debt | 45.1 | | | 0.1 | | | 71.9 | | | 2.0 | |
| Non-cash other expense, net | 16.8 | | | 30.6 | | | 41.4 | | | 60.5 | |
| Gains on available-for-sale investments | — | | | (0.3 | ) | | (0.2 | ) | | (1.1 | ) |
| Other non-GAAP tax adjustment | (6.7 | ) | | (80.8 | ) | | (66.5 | ) | | (111.8 | ) |
| Non-GAAP net income | $ | 416.4 | | | $ | 365.7 | | | $ | 818.3 | | | $ | 723.3 | |
| Non-GAAP net income as a percentage of net sales | 31.8 | % | | 27.3 | % | | 31.2 | % | | 27.2 | % |
| GAAP net income as a percentage of net sales | 5.6 | % | | 8.1 | % | | 7.5 | % | | 6.0 | % |
| Diluted net income per common share, as reported | $ | 0.27 | | | $ | 0.43 | | | $ | 0.75 | | | $ | 0.63 | |
| Non-GAAP diluted net income per common share | $ | 1.56 | | | $ | 1.43 | | | $ | 3.11 | | | $ | 2.84 | |
| Diluted common shares outstanding, as reported | 267.7 | | | 255.3 | | | 262.8 | | | 254.6 | |
| Diluted common shares outstanding non-GAAP | 267.7 | | | 255.3 | | | 262.8 | | | 254.6 | |
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