MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(in millions, except per share amounts and percentages; unaudited)
RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT
| Three Months Ended June 30, | |||||||
| 2023 | 2022 | ||||||
| Gross profit, as reported | $ | 1,558.4 | $ | 1,309.9 | |||
| Share-based compensation expense | 6.8 | 7.7 | |||||
| Non-GAAP gross profit | $ | 1,565.2 | $ | 1,317.6 | |||
| GAAP gross profit percentage | 68.1 | % | 66.7 | % | |||
| Non-GAAP gross profit percentage | 68.4 | % | 67.1 | % | |||
RECONCILIATION OF GAAP RESEARCH AND DEVELOPMENT EXPENSES TO NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES
| Three Months Ended June 30, | |||||||
| 2023 | 2022 | ||||||
| Research and development expenses, as reported | $ | 298.5 | $ | 269.0 | |||
| Share-based compensation expense | (22.9 | ) | (20.1 | ) | |||
| Other adjustments | (0.2 | ) | (0.2 | ) | |||
| Non-GAAP research and development expenses | $ | 275.4 | $ | 248.7 | |||
| GAAP research and development expenses as a percentage of net sales | 13.0 | % | 13.7 | % | |||
| Non-GAAP research and development expenses as a percentage of net sales | 12.0 | % | 12.7 | % | |||
