Microchip Technology : Schedule of Outstanding Debt and Leverage Metrics as of September 30 2022.110322

Microchip Technology Incorporated

Schedule of Outstanding Debt and Leverage Metrics

Dollar amounts in millions

	Coupon
	Interest					Balance at
	Rate		Maturity			9/30/2022
Revolving Credit Facility				$	972.1
4.333% 2023 Notes	4.333%	6/1/2023			1,000.0
2.670% 2023 Notes	2.670%	9/1/2023			1,000.0
0.972% 2024 Notes	0.972%	2/15/2024			1,400.0
0.983% 2024 Notes	0.983%	9/1/2024			1,000.0
4.250% 2025 Notes	4.250%	9/1/2025			1,200.0
Total Senior Indebtedness						6,572.1
Senior Subordinated Convertible Debt - Principal Outstanding
2025 Senior Convertible Debt	1.625%	2/15/2025			12.4
2027 Senior Convertible Debt	1.625%	2/15/2027			82.2
2024 Senior Convertible Debt	0.125%	11/15/2024			665.5
Junior Subordinated Convertible Debt - Principal Outstanding
2037 Junior Convertible Debt	2.250%	2/15/2037			6.5
Total Convertible Debt						766.6
Total Gross Debt 1					$	7,338.7
Cash and Short-term Investments				$	306.8
Total Gross Debt Less Cash and Short-term Investments				$	7,031.9
Credit Agreement Leverage Metrics 2
Total Leverage Ratio						1.9239
Net Leverage Ratio						1.8435

Notes

1 - Refer to Note 6 Debt of our Form 10-K for the fiscal year ended March 31, 2022 filed with the SEC on May 20, 2022 (the "Form 10-K") and our Form 10-Q as previously filed with the SEC for further information on our indebtedness.

2 - The following leverage metrics are based on the definitions in our Amended and Restated Credit Facility Agreement dated December 16, 2021 based on last twelve month adjusted EBITDA (as defined in the Credit Agreement) and including the adjusted EBITDA of acquired companies divided into:

• for the Total Leverage Ratio, Gross Debt; and
• for the Net Leverage Ratio, Gross Debt less Cash and Short-term Investments.

Refer to page 2 of this document for the calculation of adjusted EBITDA and our disclosures related to the use of this Non-GAAP measure.

Microchip Technology Incorporated

GAAP to Non-GAAP reconciliation - adjusted EBITDA

Dollar amounts in millions

The following calculation of adjusted EBITDA is based on the definition contained in our Credit Agreement.

			For the three months ended:
Reconciliation of GAAP net income to adjusted EBITDA	12/31/2021			3/31/2022			6/30/2022			9/30/2022
Net income	$	352.8	$	437.9	$	507.2		$	546.2
Additions:
Interest expense		62.1			57.8			50.3			53.3
Income tax provision		88.7			41.3			139.4			152.9
Depreciation		64.9			59.3			71.7			63.6
Amortization		235.7			233.9			187.7			188.2
Special (income) charges and other, net as reflected on the Consolidated
Statements of Income		(0.3)			9.1			(16.9)			4.3
Professional services associated with certain legal matters		1.8			2.8			0.9			2.3
IT security remediation		0.2			-			-		-
Share-based compensation expenses		50.9			47.0			41.2			41.3
Acquisition-related		1.2			1.0			0.8			0.9
Other (income) loss as reflected on the Consolidated Statements of Income		(4.6)			0.7			(1.7)			0.8
Subtractions:
Interest Income		(0.1)			-			(0.1)			(0.2)
Loss on settlement of debt		16.1			11.8			6.2			2.1
Consolidated adjusted EBITDA	$	869.4	$	902.6	$	986.7		$	1,055.7
Adjusted EBITDA for the twelve months ended September 30, 2022										$	3,814.4

Disclosure Regarding adjusted EBITDA as a Non-GAAPFinancial Measure: Adjusted EBITDA is a non-GAAP financial measure and the above calculation of adjusted EBITDA is based on the definition in our Credit Agreement. In the above table, adjusted EBITDA is reconciled to Net Income as determined in accordance with GAAP. Our calculation of adjusted EBITDA might not be the same as similarly titled measures used by other companies, and it should not be construed as a substitute for amounts determined in accordance with GAAP. There are limitations associated with the use of adjusted EBITDA, including that it excludes financial information that some may consider important in evaluating our performance. We compensate for this by presenting such information on both a GAAP and non-GAAP basis and providing a reconciliation of the GAAP and non-GAAP results.