Microchip Technology Inc. Files 10-Q for Period Ending December 31, 2023

AI Summary

MICROCHIP TECHNOLOGY INC (MCHPP) filed a Quarterly Report (10-Q) with the SEC on February 1, 2024. Microchip Technology Inc. filed its 10-Q report for the period ending December 31, 2023. The filing covers the third quarter of fiscal year 2024. The company's fiscal year ends on March 31st. The filing was made on February 1, 2024. The company's principal business is in Semiconductors & Related Devices.

Why It Matters

For investors and stakeholders tracking MICROCHIP TECHNOLOGY INC, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial performance and operational updates for Microchip Technology Inc. Understanding the details within this report is crucial for assessing the company's current financial health, profitability, and strategic direction in the semiconductor industry.

Risk Assessment

Risk Level: medium — MICROCHIP TECHNOLOGY INC shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant new negative information, but the semiconductor industry is subject to cyclical demand and competitive pressures.

Analyst Insight

Investors should review the detailed financial statements and management discussion within the 10-Q to understand Microchip's performance trends and outlook.

Key Numbers

• 2023-12-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-02-01 — Filing Date (FILED AS OF DATE)
• 0331 — Fiscal Year End (FISCAL YEAR END)
• 2023-04-01 — Fiscal Year Start Date (Fiscal Year Start Date)
• 2023-10-01 — Q3 Start Date (Q3 Start Date)
• 2023-12-31 — Q3 End Date (Q3 End Date)

Key Players & Entities

• MICROCHIP TECHNOLOGY INC (company) — FILER
• 0000827054 (company) — CENTRAL INDEX KEY
• 3674 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (company) — STATE OF INCORPORATION
• CHANDLER (company) — CITY
• AZ (company) — STATE
• 480-792-7200 (company) — BUSINESS PHONE
• 20231231 (date) — CONFORMED PERIOD OF REPORT

FAQ

Key Dates

• 2024-02-01: 10-Q Filing — Reported for the period ending December 31, 2023.
• 2023-12-31: Quarter End Date — End of the third fiscal quarter for FY2024.
• 2023-04-01: Fiscal Year Start Date — Beginning of fiscal year 2024.
• 0331: Fiscal Year End — Annual fiscal year closing date.

Key Financial Figures

• $0.001 — ange on Which Registered Common Stock, $0.001 par value MCHP NASDAQ Stock Market LLC
• $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

Filing Documents

• mchp-20231231.htm (10-Q) — 1749KB
• ex311q3fy24.htm (EX-31.1) — 10KB
• ex312q3fy24.htm (EX-31.2) — 10KB
• ex32q3fy24.htm (EX-32) — 8KB
• mchp-20231231_g1.jpg (GRAPHIC) — 32KB
• 0000827054-24-000024.txt ( ) — 8382KB
• mchp-20231231.xsd (EX-101.SCH) — 39KB
• mchp-20231231_cal.xml (EX-101.CAL) — 85KB
• mchp-20231231_def.xml (EX-101.DEF) — 293KB
• mchp-20231231_lab.xml (EX-101.LAB) — 634KB
• mchp-20231231_pre.xml (EX-101.PRE) — 446KB
• mchp-20231231_htm.xml (XML) — 1377KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Balance Sheets – December 31, 2023 and March 31, 2023 4 Condensed Consolidated Statements of Income – Three and Nine Months Ended December 31, 2023 and 2022 5 Condensed Consolidated Statements of Comprehensive Income – Three and Nine Months Ended December 31, 2023 and 2022 6 Condensed Consolidated Statements of Cash Flows – Nine Months Ended December 31, 2023 and 2022 7 Condensed Consolidated Statements of Changes in Equity - Three and Nine Months Ended December 31, 2023 and 2022 8 Notes to Condensed Consolidated Financial Statements 10 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 36

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 37 Item 1A.

Risk Factors

Risk Factors 37 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 60 Item 3. Defaults Upon Senior Securities 61 Item 4. Mine Safety Disclosures 61 Item 5. Other Information 61 Item 6. Exhibits 62

Signatures

Signatures 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, maturing 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 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 ESEs Embedded solutions engineers ESG Environmental, social and governance Exchange Act Securities Exchange Act of 1934, as amended FASB Financial A

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

. Financial Statements

Item 1 . Financial Statements MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts; unaudited) ASSETS December 31, March 31, 2023 2023 Cash and cash equivalents $ 281.0 $ 234.0 Accounts receivable, net 1,398.1 1,305.3 Inventories 1,311.1 1,324.9 Other current assets 229.4 205.1 Total current assets 3,219.6 3,069.3 Property, plant and equipment, net 1,208.3 1,177.9 Goodwill 6,675.4 6,673.6 Intangible assets, net 2,936.5 3,369.0 Long-term deferred tax assets 1,538.2 1,623.3 Other assets 565.0 457.2 Total assets $ 16,143.0 $ 16,370.3 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 242.2 $ 396.9 Accrued liabilities 1,388.9 1,323.5 Current portion of long-term debt 1,662.1 1,398.2 Total current liabilities 3,293.2 3,118.6 Long-term debt 4,033.3 5,041.7 Long-term income tax payable 635.1 705.7 Long-term deferred tax liability 33.0 42.7 Other long-term liabilities 1,068.2 948.0 Stockholders' equity: Preferred stock, $ 0.001 par value; authorized 5,000,000 shares; no shares issued or outstanding — — Common stock, $ 0.001 par value; authorized 900,000,000 shares; 577,806,659 shares issued and 540,387,949 shares outstanding at December 31, 2023; 577,805,623 shares issued and 545,459,814 shares outstanding at March 31, 2023 0.5 0.5 Additional paid-in capital 2,445.8 2,413.3 Common stock held in treasury: 37,418,710 shares at December 31, 2023; 32,345,809 shares at March 31, 2023 ( 2,208.6 ) ( 1,660.2 ) Accumulated other comprehensive loss ( 4.8 ) ( 4.1 ) Retained earnings 6,847.3 5,764.1 Total stockholders' equity 7,080.2 6,513.6 Total liabilities and stockholders' equity $ 16,143.0 $ 16,370.3 See accompanying notes to condensed consolidated financial statements 4 Table of Contents MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts; unaudited) Three Mo

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