Microchip Technology : Schedule of Outstanding Debt and Leverage Metrics as of December 31 2022.020223

Microchip Technology Incorporated

Schedule of Outstanding Debt and Leverage Metrics

Dollar amounts in millions

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.

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.