Microchip Technology Inc. Files 2024 10-K Report

TL;DR

MCHP 2024 10-K is in! Full financial picture for the year ending March 31, 2024.

AI Summary

Microchip Technology Inc. filed its 10-K for the fiscal year ending March 31, 2024. The company, a leader in microcontrollers, analog, and mixed-signal processing semiconductors, reported its financial performance and business operations. The filing details its fiscal year 2024 results, providing insights into its product segments, market position, and strategic outlook.

Why It Matters

This 10-K filing provides investors and analysts with a comprehensive overview of Microchip Technology's financial health, operational performance, and strategic direction for the fiscal year 2024, crucial for understanding its market standing and future prospects.

Risk Assessment

Risk Level: medium — The semiconductor industry is subject to cyclical demand, intense competition, and rapid technological changes, posing inherent risks to Microchip Technology's business.

Key Players & Entities

• MICROCHIP TECHNOLOGY INC (company) — Filer
• 20240331 (date) — Fiscal Year End
• 20240523 (date) — Filing Date
• CHANDLER (location) — Business Address City
• AZ (location) — Business Address State

FAQ

Key Financial Figures

• $0.001 — ange on Which Registered Common Stock, $0.001 Par Value Per Share MCHP NASDAQ Stock M
• $750.0 million — ed in May 2023 2025 Term Loan Facility $750.0 million term loan facility created pursuant to
• $2.75 billion — rm unsecured promissory notes, of up to $2.75 billion outstanding at any one time Convertibl
• $800 million — 2024, we paused most of our multi-year $800 million expansion and capital equipment investm
• $880 million — y 2023, we announced our plan to invest $880 million over the next several years to expand o

Filing Documents

• mchp-20240331.htm (10-K) — 2588KB
• ex43q4fy24.htm (EX-4.3) — 23KB
• ex109q4fy24.htm (EX-10.9) — 193KB
• ex1027q4fy24.htm (EX-10.27) — 99KB
• ex191q4fy24.htm (EX-19.1) — 93KB
• ex192q4fy24.htm (EX-19.2) — 13KB
• ex211q4fy24.htm (EX-21.1) — 9KB
• ex221q4fy24.htm (EX-22.1) — 5KB
• ex231q4fy24.htm (EX-23.1) — 14KB
• ex311q4fy24.htm (EX-31.1) — 10KB
• ex312q4fy24.htm (EX-31.2) — 10KB
• ex32q4fy24.htm (EX-32) — 8KB
• ex971q4fy24.htm (EX-97.1) — 35KB
• mchp-20240331_g1.jpg (GRAPHIC) — 63KB
• mchp-20240331_g2.jpg (GRAPHIC) — 112KB
• 0000827054-24-000098.txt ( ) — 13454KB
• mchp-20240331.xsd (EX-101.SCH) — 57KB
• mchp-20240331_cal.xml (EX-101.CAL) — 124KB
• mchp-20240331_def.xml (EX-101.DEF) — 407KB
• mchp-20240331_lab.xml (EX-101.LAB) — 869KB
• mchp-20240331_pre.xml (EX-101.PRE) — 666KB
• mchp-20240331_htm.xml (XML) — 2229KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 38 Item 1C. Cybersecurity 38 Item 2.

Properties

Properties 41 Item 3.

Legal Proceedings

Legal Proceedings 41 Item 4. Mine Safety Disclosures 41 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 42 Item 6. [Reserved] 43 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 44 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 57 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 57 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 57 Item 9A.

Controls and Procedures

Controls and Procedures 57 Item 9B. Other Information 59 Item 9C. Disclosure Regarding Foreign Jurisdictions t hat Prevent Inspections 59 PART III Item 10. Directors, Executive Officers and Corporate Governance 60 Item 11.

Executive Compensation

Executive Compensation 60 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 60 Item 13. Certain Relationships and Related Transactions, and Director Independence 61 Item 14. Principal Accountant Fees and Services 61 PART IV Item 15. Exhibits and Financial Statement Schedules 62 Item 16. Form 10-K Summary 62 Exhibit Index 63

Signatures

Signatures 67 Power of Attorney 68 2 MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES Defined Terms (1) Term Definition 4.333% 2023 Notes 2023 Senior Unsecured Notes, matured on June 1, 2023 2.670% 2023 Notes 2023 Senior Unsecured Notes, matured on September 1, 2023 0.972% 2024 Notes 2024 Senior Unsecured Notes, matured on February 15, 2024 0.983% 2024 Notes 2024 Senior Unsecured Notes, maturing on September 1, 2024 4.250% 2025 Notes 2025 Senior Unsecured Notes, maturing on September 1, 2025 5.050% 2029 Notes 2029 Senior Unsecured Notes, maturing on March 15, 2029 2015 Senior Convertible Debt 2015 Senior Convertible Debt, maturing on February 15, 2025 2017 Senior Convertible Debt 2017 Senior Convertible Debt, maturing on February 15, 2027 2020 Senior Convertible Debt 2020 Senior Convertible Debt, maturing on November 15, 2024 2017 Junior Convertible Debt 2017 Junior Convertible Debt which was fully settled in May 2023 2025 Term Loan Facility $750.0 million term loan facility created pursuant to the amended Credit Agreement ASU Accounting Standards Update ASU 2020-06 ASU 2020-06 - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity CEMs Client engagement managers CHIPS Act CHIPS and Science Act of 2022 Commercial Paper Short-term unsecured promissory notes, of up to $2.75 billion outstanding at any one time Convertible Debt 2015 Senior Convertible Debt, 2017 Senior Convertible Debt, 2020 Senior Convertible Debt, and 2017 Junior Convertible Debt prior to the May 2023 settlement Credit Agreement Amended and Restated Credit Agreement, dated as of December 16, 2021, among the Company, as borrower, the lenders from time to time party thereto, and J.P. Morgan Chase Bank, N.A., as administrative agent, as amended by the First Incremental Term Loan Amendment, dated as of August 31, 2023 EAR Export Administration Regulation EEPROM Electrically erasable programmable read on

Business

Item 1. Business Overview We develop, manufacture and sell smart, connected and secure embedded control solutions used by our customers for a wide variety of applications. With over 30 years of technology leadership, our broad product portfolio offers a Total System Solution (TSS) for our customers that can provide a large portion of the silicon requirements in their applications. TSS is a combination of hardware, software and services which help our customers increase their revenue, reduce their costs and manage their risks compared to other solutions. Our synergistic product portfolio empowers disruptive growth trends, including 5G, data centers, sustainability, Internet of Things (IoT) and edge computing, advanced driver assist systems (ADAS) and autonomous driving, and electric vehicles, in key end markets such as automotive, aerospace and defense, communications, consumer appliances, data centers and computing, and industrial. Industry Background Competitive pressures require OEMs to expand product functionality and provide differentiation while maintaining or reducing cost. To address these requirements, manufacturers often use integrated circuit-based embedded control systems that enable them to: differentiate their products replace less efficient electromechanical control devices reduce the number of components in their system add product functionality reduce the system level energy consumption make systems safer to operate reduce the consumption of natural resources add security to their products decrease time to market for their products significantly reduce product cost Embedded control systems have been incorporated into thousands of products and subassemblies in a wide variety of applications and markets worldwide, including: actuators applications requiring touch buttons, touch screens and graphical user interfaces automotive access control automotive comfort, safety, information and entertainment applications avionics communi

View Full Filing

View this 10-K filing on SEC EDGAR