MICROCHIP TECHNOLOGY INCORPORATED (Exact Name Of Registrant As Specified In Its Charter) |
Delaware | 0-21184 | 86-0629024 |
(State Or Other Jurisdiction Of Incorporation) | (Commission File No.) | (IRS Employer Identification No.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits | |
99.1 | Microchip Technology Announces Financial Results for Fourth Quarter and Fiscal Year 2015 Including Record Net Sales and Record Non-GAAP EPS |
Dated: May 7, 2015 | Microchip Technology Incorporated (Registrant) |
By: /s/ J. Eric Bjornholt | |
J. Eric Bjornholt Vice President, Chief Financial Officer (Principal Accounting and Financial Officer) |
99.1 | Microchip Technology Announces Financial Results for Fourth Quarter and Fiscal Year 2015 Including Record Net Sales and Record Non-GAAP EPS |
EXHIBIT 99.1 NEWS RELEASE INVESTOR RELATIONS CONTACT: J. Eric Bjornholt -- CFO..... (480) 792-7804 |
• | For Fiscal Year 2015: |
▪ | Record non-GAAP net sales of $2.161 billion, up 11.9% year-over-year. |
▪ | GAAP net sales of $2.147 billion, up 11.2% year-over-year. |
▪ | On a non-GAAP basis: |
• | Gross margin of 58.8%; record operating income of $700.4 million; record net income of $593.9 million and 27.5% of net sales; record EPS of $2.66 per diluted share. |
▪ | On a GAAP basis: |
• | Gross margin of 57.3%; operating income of $425.6 million; net income of $369.0 million and 17.2% of net sales; EPS of $1.65 per diluted share. |
• | For the quarter ending March 31, 2015: |
• | Record non-GAAP net sales of $547.2 million. |
• | GAAP net sales of $543.2 million. |
• | On a non-GAAP basis: gross margins of 58.3%; record operating income of $177.4 million; net income of $148.8 million and record EPS of 68 cents per diluted share. The First Call published estimate for non-GAAP EPS was 67 cents. |
• | On a GAAP basis: gross margins of 57.7%; operating income of $110.3 million; net income of $99.4 million; and EPS of 45 cents per diluted share. There was no First Call published estimate for GAAP EPS. |
(in millions, except earnings per diluted share and percentages) | Three Months Ended March 31, 2015 | Year Ended March 31, 2015 | ||||||
GAAP | % of Net Sales | Non-GAAP1 | % of Net Sales | GAAP | % of Net Sales | Non-GAAP1 | % of Net Sales | |
Net Sales | $543.2 | $547.2 | $2,147.0 | $2,160.6 | ||||
Gross Margin | $313.6 | 57.7% | $319.0 | 58.3% | $1,229.6 | 57.3% | $1,271.1 | 58.8% |
Operating Income | $110.3 | 20.3% | $177.4 | 32.4% | $425.6 | 19.8% | $700.4 | 32.4% |
Other Expense | $(48.3) | $(9.3) | $(79.7) | $(33.4) | ||||
Income Tax Provision (Benefit) | $(36.6) | $19.1 | $(19.4) | $72.1 | ||||
Net Income Before Noncontrolling Interest | $98.6 | $149.0 | $365.3 | $594.9 | ||||
Net Income (Loss) from Noncontrolling Interest | $(0.8) | $0.2 | $(3.7) | $0.9 | ||||
Net Income Attributable to Microchip | $99.4 | 18.3% | $148.8 | 27.2% | $369.0 | 17.2% | $593.9 | 27.5% |
Earnings per Diluted Share | 45 Cents | 68 Cents | $1.65 | $2.66 |
• | Microchip executed several refinancing transactions in February 2015 as follows: amending and restating its credit facility to increase the available borrowings under such facility from $2.0 billion to $2.5 billion; issuing $1.725 billion of convertible senior subordinated notes due in 2025 and bearing interest at 1.625% per annum; and using $1.136 billion of the proceeds from the sale of such notes to repurchase $575 million in aggregate principal amount of its convertible junior subordinated debenture due in 2037. The combination of these refinancing transactions is expected to provide annual accretion to Microchip's non-GAAP diluted earnings per share of approximately 12 cents. |
• | Microchip’s MOST® technology devices continued their leadership in automotive infotainment networks, with new deployments in BMW's Series Active Tourer, and Audi's TT models. More than 150 million MOST devices have been installed in over 180 car models, since 2001. |
• | On the technology side, Microchip and the MOST Cooperation added support for smart antenna modules. Additionally, Microchip introduced the world's first H.264 video I/O companions for MOST automotive infotainment and Advanced Driver Assistance System (ADAS) networks. |
• | In other automotive news, Microchip's new family of CAN FD (Flexible Data-Rate) transceivers not only helps automotive and industrial manufacturers with today's CAN communication needs, but also provides a path for the newer CAN FD networks that are increasingly in demand. |
• | Microchip's Silicon Storage Technology (SST) subsidiary further strengthened its market leadership in embedded, Flash-based devices, by expanding its partnership with United Microelectronics Corporation (UMC) to include a qualified 55 nm embedded SuperFlash® memory platform and a 40 nm license. To date, more than 50 billion devices have shipped with SST's SuperFlash technology. |
• | Expanding its Internet of Things (IoT) and Machine-to-Machine (M2M) offerings, Microchip announced the first in a series of modules for the LoRa™ technology low-data-rate wireless networking standard. This new standard enables communication with a range of more than 10 miles (suburban), a battery life of greater than 10 years, and the ability to connect millions of wireless sensor nodes to LoRa technology gateways. |
• | The Company announced its EtherCAT® technology license, along with its first EtherCAT slave controller, demonstrating Microchip's strategy for expanding its industrial-Ethernet market presence with a continuing commitment to provide unique, leading-edge products. This controller reduces system complexity and cost for factory-automation, process-control, motor/motion-control and IoT industrial-Ethernet applications. |
• | Microchip continued to expand its offering of 8-bit PIC® microcontrollers with integrated Core Independent Peripherals, which reduce interrupt latency, lower power consumption, and increase system efficiency and safety while minimizing design time and effort. The new PIC16(L)F1769 family provides multiple independent, closed-loop power channels and system management. |
• | Microchip also upgraded its MPLAB® Code Configurator Plug-In to support its 16-bit PIC MCUs, in addition to the 8-bit devices already supported. This code development tool makes it easier for firmware developers to quickly initialize the device and implement peripheral drivers. |
• | In the growing area of sensor fusion, the new MM7150 motion module combines Microchip's PIC32-based SSC7150 motion co-processor with Bosch 9-axis sensors, including accelerometer, magnetometer and gyroscope, in a small, easy to use form factor. With a simple I2C™ connection to most MCUs/MPUs, embedded/Internet of Things (IoT) applications can easily tap into the module's advanced motion and position data. |
• | Microchip added two new families to its multifaceted analog and interface portfolio. The latest power MOSFET drivers feature thermally efficient, small packages for improved efficiency. New digital-to-analog converters combine non-volatile memory and I2C with 8, 10 and 12-bit resolution. |
• | In other wireless news, Microchip announced its 2nd generation multizone audio technology and a mobile app for use in whole-home-audio and multi-room applications, based on the JukeBlox® 4 platform. And, its new 5 GHz power amplifier module extends the range and reduces the production costs of WLAN applications based on the IEEE 802.11ac Wi-Fi® standard, such as access points, routers and set-top boxes. |
• | Finally, Microchip broadened its memory portfolio with a new 3V 16, 32 and 64-Mbit serial quad I/O™ interface, NOR SuperFlash memory family that enables execute-in-place (XIP) capability with the world's lowest power consumption and the world's fastest read/write times. |
Microchip Consolidated Guidance | |||
GAAP | Non-GAAP Adjustments | Non-GAAP1 | |
Net Sales | $547 to $564 million | $547 to $564 million | |
Gross Margin2 | 57.60% to 57.85% | $3.7 to $3.8 million | 58.3% to 58.5% |
Operating Expenses2 | 34.65% to 34.9% | $48.7 to $50.2 million | 25.75% to 26.0% |
Other Expense | $5.7 million | $2.0 million | $7.7 million |
Income Tax Expense | 10.75% to 11.25% | $5.6 to $5.7 million | 10.75% to 11.25% |
Net Income before Noncontrolling Interest | $105.1 to $111.7 million | $44.8 to $46.3 million | $150.0 to $158.0 million |
Less Net Income (Loss) from Noncontrolling Interest3 | ($0.5 million) | $0.7 million | $0.2 million |
Net Income | $105.6 to $112.2 million | $44.1 to $45.6 million | $149.8 to $157.8 million |
Diluted Common Shares Outstanding4 | Approximately 217 million shares | Approximately 0.6 million shares | Approximately 216.4 million shares |
Earnings per Diluted Share | 49 to 52 cents | 20 to 21 cents | 69 to 73 cents |
1 | See the "Use of Non-GAAP Financial Measures" section of this release. |
2 | Earnings per share have been calculated based on the diluted shares outstanding of Microchip on a consolidated basis. |
3 | See Footnote 3 under the "Use of Non-GAAP Financial Measures" section of this release. |
4 | See Footnote 4 under the "Use of Non-GAAP Financial Measures" section of this release. |
• | Microchip's inventory days at June 30, 2015 are expected to increase by 3 to 9 days to be between 114 days and 120 days. Our actual inventory level will depend on the inventory that our distributors decide to hold to support their customers, overall demand for our products and our production levels. |
• | Capital expenditures for the quarter ending June 30, 2015 are expected to be approximately $40 million and capital expenditures for all of fiscal year 2016 are anticipated to be approximately $160 million. We are continuing to invest in the equipment needed to support the growth of our production capabilities for fast growing new products and technologies. |
• | We expect net cash generation during the June quarter of $160 million to $180 million prior to the dividend payment, changes in borrowing levels, and our acquisition-related activities. |
1 | Use of non-GAAP Financial Measures: Our non-GAAP adjustments, where applicable, include the effect of share-based compensation, expenses related to our acquisition activities (including intangible asset amortization, inventory valuation costs, severance costs, and legal and other general and administrative expenses associated with acquisitions), gains from equity securities, non-cash interest expense on our convertible debentures, a loss on the retirement of convertible debentures, the related income tax implications of these items and non-recurring tax events. Our non-GAAP net sales reflect revenue from the sell-through of products from ISSC's distributors that is not recognized for GAAP purposes because of a change in contractual terms that moves future shipments of product to these distributors to a sell-through revenue recognition model. We believe that our disclosure of non-GAAP net sales provides investors with information regarding the actual end market demand for our products. |
2 | Generally, gross margin fluctuates over time, driven primarily by the mix of microcontrollers, mixed-signal products, analog products and memory products sold and licensing revenue; variances in manufacturing yields; fixed cost absorption; wafer fab loading levels; costs of wafers from foundries; inventory reserves; pricing pressures in our non-proprietary product lines; and competitive and economic conditions. Operating expenses fluctuate over time, primarily due to net sales and profit levels. |
3 | We acquired a controlling interest in ISSC Technologies in July 2014. As of March 31, 2015, we owned 94.1% of ISSC and we expect to own 100% of ISSC by the end of the first quarter of fiscal year 2016. Our weighted average ownership of ISSC in the March 2015 quarter was 92.0%. |
4 | Diluted Common Shares Outstanding can vary for, among other things, the trading price of our common stock, the actual exercise of options or vesting of restricted stock units, the potential for incremental dilutive shares from our convertible debentures (additional information regarding our share count is available in the investor relations section of our website under the heading "Supplemental Financial Information"), and the repurchase or the issuance of stock. The diluted common shares outstanding presented in the guidance table above assumes an average Microchip stock price in the June 2015 quarter of $49.00 per share (however, we make no prediction as to what our actual share price will be for such period or any other period and we cannot estimate what our stock option exercise activity will be during the quarter). |
MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(in thousands except per share amounts) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended | Twelve months ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net sales | $ | 543,207 | $ | 493,384 | $ | 2,147,036 | $ | 1,931,217 | ||||||||
Cost of sales | 229,575 | 202,798 | 917,472 | 802,474 | ||||||||||||
Gross profit | 313,632 | 290,586 | 1,229,564 | 1,128,743 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 87,662 | 77,363 | 349,543 | 305,043 | ||||||||||||
Selling, general and administrative | 67,778 | 65,344 | 274,815 | 267,278 | ||||||||||||
Amortization of acquired intangible assets | 47,087 | 21,309 | 176,746 | 94,534 | ||||||||||||
Special charges | 758 | 533 | 2,840 | 3,024 | ||||||||||||
203,285 | 164,549 | 803,944 | 669,879 | |||||||||||||
Operating income | 110,347 | 126,037 | 425,620 | 458,864 | ||||||||||||
(Losses) gains on equity method investments | (188 | ) | 34 | (317 | ) | (177 | ) | |||||||||
Other expense, net | (48,138 | ) | (7,847 | ) | (79,396 | ) | (26,333 | ) | ||||||||
Income before income taxes | 62,021 | 118,224 | 345,907 | 432,354 | ||||||||||||
Income tax (benefit) provision | (36,559 | ) | 6,729 | (19,418 | ) | 37,073 | ||||||||||
Net income | 98,580 | 111,495 | 365,325 | 395,281 | ||||||||||||
Less: Net loss attributable to noncontrolling interests | 822 | — | 3,684 | — | ||||||||||||
Net income attributable to Microchip Technology | $ | 99,402 | $ | 111,495 | $ | 369,009 | $ | 395,281 | ||||||||
Basic net income per common share attributable to Microchip Technology stockholders | $ | 0.49 | $ | 0.56 | $ | 1.84 | $ | 1.99 | ||||||||
Diluted net income per common share attributable to Microchip Technology stockholders | $ | 0.45 | $ | 0.50 | $ | 1.65 | $ | 1.82 | ||||||||
Basic common shares outstanding | 201,730 | 199,630 | 200,937 | 198,291 | ||||||||||||
Diluted common shares outstanding | 220,947 | 222,689 | 223,561 | 217,630 | ||||||||||||
MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) | |||||||||
ASSETS | |||||||||
March 31, | March 31, | ||||||||
2015 | 2014 | ||||||||
(Unaudited) | |||||||||
Cash and short-term investments | $ | 1,958,869 | $ | 1,344,785 | |||||
Accounts receivable, net | 273,937 | 242,405 | |||||||
Inventories | 279,456 | 262,725 | |||||||
Deferred tax assets | 71,045 | 67,490 | |||||||
Assets held for sale | 13,989 | — | |||||||
Other current assets | 67,321 | 51,994 | |||||||
Total current assets | 2,664,617 | 1,969,399 | |||||||
Property, plant & equipment, net | 581,572 | 531,967 | |||||||
Long-term investments | 383,326 | 798,712 | |||||||
Other assets | 1,151,198 | 767,552 | |||||||
Total assets | $ | 4,780,713 | $ | 4,067,630 | |||||
LIABILITIES AND EQUITY | |||||||||
Accounts payable and other accrued liabilities | $ | 187,844 | $ | 170,781 | |||||
Short-term borrowings | — | 17,500 | |||||||
Deferred income on shipments to distributors | 166,128 | 147,798 | |||||||
Total current liabilities | 353,972 | 336,079 | |||||||
Long-term line of credit | 461,952 | 300,000 | |||||||
Long-term borrowings, net | — | 331,385 | |||||||
Senior convertible debentures | 1,174,036 | — | |||||||
Junior convertible debentures | 190,870 | 371,873 | |||||||
Long-term income tax payable | 114,336 | 179,966 | |||||||
Long-term deferred tax liability | 381,192 | 375,316 | |||||||
Other long-term liabilities | 43,329 | 37,550 | |||||||
Microchip Technology stockholders' equity | 2,044,654 | 2,135,461 | |||||||
Noncontrolling interests | 16,372 | — | |||||||
Total equity | 2,061,026 | 2,135,461 | |||||||
Total liabilities and equity | $ | 4,780,713 | $ | 4,067,630 |
Three months ended | Twelve months ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net sales, as reported | $ | 543,207 | $ | 493,384 | $ | 2,147,036 | $ | 1,931,217 | |||||||
Distributor revenue recognition adjustment | 3,983 | — | 13,570 | — | |||||||||||
Non-GAAP net sales | $ | 547,190 | $ | 493,384 | $ | 2,160,606 | $ | 1,931,217 |
Three months ended | Twelve months ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Gross profit, as reported | $ | 313,632 | $ | 290,586 | $ | 1,229,564 | $ | 1,128,743 | |||||||
Distributor revenue recognition adjustment, net of product cost | 1,792 | — | 6,357 | — | |||||||||||
Share-based compensation expense | 2,025 | 1,666 | 9,010 | 7,340 | |||||||||||
Acquisition-related restructuring and acquired inventory valuation costs | 1,511 | 320 | 26,203 | 362 | |||||||||||
Non-GAAP gross profit | $ | 318,960 | $ | 292,572 | $ | 1,271,134 | $ | 1,136,445 | |||||||
Non-GAAP gross profit percentage | 58.3 | % | 59.3 | % | 58.8 | % | 58.8 | % |
Three months ended | Twelve months ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Research and development expenses, as reported | $ | 87,662 | $ | 77,363 | $ | 349,543 | $ | 305,043 | |||||||
Share-based compensation expense | (7,519 | ) | (5,792 | ) | (28,164 | ) | (24,554 | ) | |||||||
Non-GAAP research and development expenses | $ | 80,143 | $ | 71,571 | $ | 321,379 | $ | 280,489 | |||||||
Non-GAAP research and development expenses as a percentage of net sales | 14.6 | % | 14.5 | % | 14.9 | % | 14.5 | % |
Three months ended | Twelve months ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Selling, general and administrative expenses, as reported | $ | 67,778 | $ | 65,344 | $ | 274,815 | $ | 267,278 | |||||||
Share-based compensation expense | (5,639 | ) | (4,954 | ) | (21,422 | ) | (21,893 | ) | |||||||
Acquisition-related costs | (741 | ) | (880 | ) | (4,001 | ) | (2,654 | ) | |||||||
Non-GAAP selling, general and administrative expenses | $ | 61,398 | $ | 59,510 | $ | 249,392 | $ | 242,731 | |||||||
Non-GAAP selling, general and administrative expenses as a percentage of net sales | 11.2 | % | 12.1 | % | 11.5 | % | 12.6 | % |
Three months ended | Twelve months ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Operating expenses, as reported | $ | 203,285 | $ | 164,549 | $ | 803,944 | $ | 669,879 | |||||||
Share-based compensation expense | (13,158 | ) | (10,746 | ) | (49,586 | ) | (46,447 | ) | |||||||
Acquisition-related costs | (741 | ) | (880 | ) | (4,001 | ) | (2,654 | ) | |||||||
Amortization of acquired intangible assets | (47,087 | ) | (21,309 | ) | (176,746 | ) | (94,534 | ) | |||||||
Special charges | (758 | ) | (533 | ) | (2,840 | ) | (3,024 | ) | |||||||
Non-GAAP operating expenses | $ | 141,541 | $ | 131,081 | $ | 570,771 | $ | 523,220 | |||||||
Non-GAAP operating expenses as a percentage of net sales | 25.9 | % | 26.6 | % | 26.4 | % | 27.1 | % |
Three months ended | Twelve months ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Operating income, as reported | $ | 110,347 | $ | 126,037 | $ | 425,620 | $ | 458,864 | |||||||
Distributor revenue recognition adjustment | 1,792 | — | 6,357 | — | |||||||||||
Share-based compensation expense | 15,183 | 12,412 | 58,596 | 53,787 | |||||||||||
Acquisition-related restructuring, acquired inventory valuation and other costs | 2,252 | 1,200 | 30,204 | 3,016 | |||||||||||
Amortization of acquired intangible assets | 47,087 | 21,309 | 176,746 | 94,534 | |||||||||||
Special charges | 758 | 533 | 2,840 | 3,024 | |||||||||||
Non-GAAP operating income | $ | 177,419 | $ | 161,491 | $ | 700,363 | $ | 613,225 | |||||||
Non-GAAP operating income as a percentage of net sales | 32.4 | % | 32.7 | % | 32.4 | % | 31.8 | % |
Three months ended | Twelve months ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Other expense, net, as reported | $ | (48,138 | ) | $ | (7,847 | ) | $ | (79,396 | ) | $ | (26,333 | ) | |||
Loss on retirement of convertible debentures | 50,631 | — | 50,631 | — | |||||||||||
Gain on equity securities | (18,469 | ) | — | (18,469 | ) | — | |||||||||
Non-cash other expense, net | 6,854 | 2,288 | 14,165 | 8,970 | |||||||||||
Impairment on non-marketable equity investment | — | 746 | — | 746 | |||||||||||
Gain on shares of acquired company | — | — | — | (2,438 | ) | ||||||||||
Non-GAAP other expense, net | $ | (9,122 | ) | $ | (4,813 | ) | $ | (33,069 | ) | $ | (19,055 | ) | |||
Non-GAAP other expense, net, as a percentage of net sales | -1.7 | % | -1.0 | % | -1.5 | % | -1.0 | % |
Three months ended | Twelve months ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Income tax (benefit) provision, as reported | $ | (36,559 | ) | $ | 6,729 | $ | (19,418 | ) | $ | 37,073 | |||||
Income tax rate, as reported | -58.9 | % | 5.7 | % | -5.6 | % | 8.6 | % | |||||||
Distributor revenue recognition adjustment | 251 | — | 1,074 | — | |||||||||||
Share-based compensation expense | 3,755 | 1,221 | 10,640 | 5,722 | |||||||||||
Acquisition-related restructuring, acquired inventory valuation costs, intangible asset amortization and other costs | 3,365 | 359 | 18,061 | 1,531 | |||||||||||
Special charges | 239 | 200 | 962 | 1,133 | |||||||||||
Loss on retirement of convertible debentures | 18,809 | — | 18,809 | — | |||||||||||
Non-cash other expense, net | 2,546 | 856 | 5,262 | 3,358 | |||||||||||
Impairment on non-marketable equity investment | — | 279 | — | 279 | |||||||||||
Non-recurring tax events | 26,735 | 5,769 | 36,718 | 13,936 | |||||||||||
Non-GAAP income tax provision | $ | 19,141 | $ | 15,413 | $ | 72,108 | $ | 63,032 | |||||||
Non-GAAP income tax rate | 11.4 | % | 9.8 | % | 10.8 | % | 10.6 | % |
Three months ended | Twelve months ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income attributable to Microchip Technology, as reported | $ | 99,402 | $ | 111,495 | $ | 369,009 | $ | 395,281 | |||||||
Noncontrolling interests | (995 | ) | — | (4,618 | ) | — | |||||||||
Distributor revenue recognition adjustment, net of tax effect | 1,541 | — | 5,283 | — | |||||||||||
Share-based compensation expense, net of tax effect | 11,428 | 11,191 | 47,956 | 48,065 | |||||||||||
Acquisition-related restructuring, acquired inventory valuation costs, intangible asset amortization and other costs, net of tax effect | 45,974 | 22,150 | 188,889 | 96,019 | |||||||||||
Special charges, net of tax effect | 519 | 333 | 1,878 | 1,891 | |||||||||||
Loss on retirement of convertible debentures, net of tax effect | 31,822 | — | 31,822 | — | |||||||||||
Gain on equity securities | (18,469 | ) | — | (18,469 | ) | — | |||||||||
Non-cash other expense, net of tax effect | 4,308 | 1,432 | 8,903 | 5,612 | |||||||||||
Impairment on non-marketable equity investment, net of tax effect | — | 467 | — | 467 | |||||||||||
Gain on shares of acquired company | — | — | — | (2,438 | ) | ||||||||||
Non-recurring tax events | (26,735 | ) | (5,769 | ) | (36,718 | ) | (13,936 | ) | |||||||
Non-GAAP net income attributable to Microchip Technology | $ | 148,795 | $ | 141,299 | $ | 593,935 | $ | 530,961 | |||||||
Non-GAAP net income attributable to Microchip Technology as a percentage of net sales | 27.2 | % | 28.6 | % | 27.5 | % | 27.5 | % | |||||||
Diluted net income per common share attributable to Microchip Technology stockholders, as reported | $ | 0.45 | $ | 0.50 | $ | 1.65 | $ | 1.82 | |||||||
Non-GAAP diluted net income per common share attributable to Microchip Technology stockholders | $ | 0.68 | $ | 0.64 | $ | 2.66 | $ | 2.45 | |||||||
Diluted common shares outstanding, as reported | 220,947 | 222,689 | 223,561 | 217,630 | |||||||||||
Diluted common shares outstanding Non-GAAP | 220,420 | 221,947 | 223,017 | 216,925 |