Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Jun. 30, 2015 | Aug. 04, 2015 | |
DEI Information [Abstract] | ||
Entity Registrant Name | MICROCHIP TECHNOLOGY INC | |
Entity Central Index Key | 827,054 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 211,091,149 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 563,547 | $ 607,815 |
Short-term investments | 969,003 | 1,351,054 |
Accounts receivable, net | 277,033 | 273,937 |
Inventories | 303,690 | 279,456 |
Prepaid expenses | 33,927 | 34,717 |
Deferred tax assets | 71,045 | 71,045 |
Assets held for sale | 13,669 | 13,989 |
Other current assets | 23,700 | 32,604 |
Total current assets | 2,255,614 | 2,664,617 |
Property, plant and equipment, net | 595,247 | 581,572 |
Long-term investments | 898,024 | 383,326 |
Goodwill | 571,660 | 571,271 |
Intangible assets, net | 470,488 | 504,417 |
Other assets | 65,952 | 75,510 |
Total assets | 4,856,985 | 4,780,713 |
LIABILITIES AND EQUITY | ||
Accounts payable | 93,655 | 86,866 |
Accrued liabilities | 111,124 | 100,978 |
Deferred Income on Shipments to Distributors | 167,529 | 166,128 |
Total current liabilities | 372,308 | 353,972 |
Senior convertible debentures | 1,169,583 | 1,174,036 |
Junior convertible debentures | 192,162 | 190,870 |
Long-term line of credit | 496,952 | 461,952 |
Long-term income tax payable | 98,001 | 114,336 |
Long-term deferred tax liability | 380,403 | 381,192 |
Other long-term liabilities | 48,694 | 43,329 |
Stockholders' equity: | ||
Preferred stock, $0.001 par value; authorized 5,000,000 shares; no shares issued or outstanding | 0 | 0 |
Common stock, $0.001 par value; authorized 450,000,000 shares; 218,789,994 shares issued and 202,407,537 shares outstanding at June 30, 2015; 218,789,994 shares issued and 202,080,306 shares outstanding at March 31, 2015 | 202 | 202 |
Additional paid-in capital | 1,001,935 | 999,515 |
Common stock held in treasury: 16,382,457 shares at June 30, 2015; 16,709,688 shares at March 31, 2015 | (505,960) | (515,679) |
Accumulated other comprehensive (loss) income | (5,171) | 11,076 |
Retained earnings | 1,607,876 | 1,549,540 |
Microchip Technology stockholders' equity | 2,098,882 | 2,044,654 |
Noncontrolling interests | 0 | 16,372 |
Total equity | 2,098,882 | 2,061,026 |
Total liabilities and equity | $ 4,856,985 | $ 4,780,713 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Jun. 30, 2015 | Mar. 31, 2015 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 450,000,000 | 450,000,000 |
Common Stock, Shares, Issued | 218,789,994 | 218,789,994 |
Common Stock, Shares, Outstanding | 202,407,537 | 202,080,306 |
Treasury Stock, Shares | 16,382,457 | 16,709,688 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Income Statement | |||
Net sales | $ 533,952 | $ 528,876 | |
Cost of sales (1) | [1] | 224,935 | 222,357 |
Gross profit | 309,017 | 306,519 | |
Operating expenses: | |||
Research and development (1) | [1] | 84,680 | 84,370 |
Selling, general and administrative (1) | [1] | 66,849 | 69,255 |
Amortization of acquired intangible assets | 34,612 | 36,644 | |
Special charges, net | 1,557 | 304 | |
Total operating expenses | 187,698 | 190,573 | |
Operating income | 121,319 | 115,946 | |
Losses on equity method investments | (177) | (32) | |
Other income (expense): | |||
Interest income | 5,528 | 4,742 | |
Interest expense | (24,052) | (13,678) | |
Other income, net | 16,947 | 13 | |
Income before income taxes | 119,565 | 106,991 | |
Income tax (benefit) provision | (10,895) | 17,082 | |
Net income | 130,460 | 89,909 | |
Less: Net loss attributable to noncontrolling interests | 207 | 0 | |
Net income attributable to Microchip Technology | $ 130,667 | $ 89,909 | |
Basic net income per common share attributable to Microchip Technology stockholders | $ 0.65 | $ 0.45 | |
Diluted net income per common share attributable to Microchip Technology stockholders | 0.60 | 0.40 | |
Dividends declared per common share | $ 0.3575 | $ 0.3555 | |
Basic common shares outstanding | 202,232 | 200,187 | |
Diluted common shares outstanding | 216,767 | 224,527 | |
Allocated Share-based Compensation Expense | $ 14,112 | $ 13,321 | |
Cost of Sales [Member] | |||
Other income (expense): | |||
Allocated Share-based Compensation Expense | [2] | 1,657 | 2,055 |
Research and Development Expense [Member] | |||
Other income (expense): | |||
Allocated Share-based Compensation Expense | 7,098 | 6,309 | |
Selling, General and Administrative Expenses [Member] | |||
Other income (expense): | |||
Allocated Share-based Compensation Expense | $ 5,357 | $ 4,957 | |
[1] | Includes share-based compensation expense as follows:Cost of sales 1,657 2,055 Research and development 7,098 6,309 Selling, general and administrative 5,357 4,957 | ||
[2] | During the three months ended June 30, 2015, $1.8 million of share-based compensation expense was capitalized to inventory and $1.7 million of previously capitalized share-based compensation expense in inventory was sold. During the three months ended June 30, 2014, $1.7 million of share-based compensation expense was capitalized to inventory and $2.1 million of previously capitalized share-based compensation expense in inventory was sold. |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (PARENTHETICAL) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 14,112 | $ 13,321 | |
Cost of Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | [1] | 1,657 | 2,055 |
Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 7,098 | 6,309 | |
Selling General And Administrative Member | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 5,357 | $ 4,957 | |
[1] | During the three months ended June 30, 2015, $1.8 million of share-based compensation expense was capitalized to inventory and $1.7 million of previously capitalized share-based compensation expense in inventory was sold. During the three months ended June 30, 2014, $1.7 million of share-based compensation expense was capitalized to inventory and $2.1 million of previously capitalized share-based compensation expense in inventory was sold. |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 130,460 | $ 89,909 |
Less: Net loss attributable to noncontrolling interests | 207 | 0 |
Net income attributable to Microchip Technology | 130,667 | 89,909 |
Unrealized holding (losses) gains, net of tax effect of $0 and $12, respectively | (2,012) | 3,060 |
Reclassification of realized transactions, net of tax effect of $0 and $12, respectively | (13,959) | (22) |
Other comprehensive (loss) income, net of taxes | (15,971) | 3,038 |
Less: Other comprehensive (income) loss attributable to noncontrolling interests | 0 | 0 |
Other comprehensive (loss) income attributable to Microchip Technology | (15,971) | 3,038 |
Comprehensive income | 114,489 | 92,947 |
Less: Comprehensive loss attributable to noncontrolling interests | (207) | 0 |
Comprehensive income attributable to Microchip Technology | $ 114,696 | $ 92,947 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (PARENTHETICAL) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | $ 0 | $ 12 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 130,460 | $ 89,909 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 60,375 | 60,988 |
Deferred income taxes | (17,509) | (2,319) |
Share-based compensation expense related to equity incentive plans | 14,112 | 13,321 |
Excess tax benefit from share-based compensation | (263) | 0 |
Amortization of debt discount on convertible debentures | 11,772 | 2,365 |
Amortization of debt issuance costs | 958 | 544 |
Losses on equity method investments | 177 | 32 |
Gain on sale of assets | (560) | 0 |
Impairment of intangible assets | 0 | 406 |
Realized gain on available-for-sale investment | (13,959) | 0 |
Realized gain on equity method investment | (2,225) | 0 |
Amortization of premium on available-for-sale investments | 2,396 | 2,589 |
Changes In Operating Assets And Liabilities | ||
Increase in accounts receivable | (3,096) | (37,247) |
(Increase) decrease in inventories | (23,893) | 24,991 |
Increase (decrease) in deferred income on shipments to distributors | 1,401 | (1,215) |
Increase (decrease) in accounts payable and accrued liabilities | 16,157 | (4,415) |
Change in other assets and liabilities | 5,225 | 15,839 |
Net cash provided by operating activities | 181,528 | 165,788 |
Cash flows from investing activities | ||
Purchases of available-for-sale investments | (570,501) | (172,506) |
Sales and maturities of available-for-sale investments | 433,446 | 321,203 |
Sale of equity method investment | 2,667 | 0 |
Purchase of additional controlling interest in ISSC | (18,051) | 0 |
Acquisition of Supertex, net of cash acquired | 0 | (375,365) |
Investments in other assets | (1,766) | (1,123) |
Proceeds from sale of assets | 627 | 0 |
Capital expenditures | (33,611) | (44,637) |
Net cash used in investing activities | (187,189) | (272,428) |
Cash flows from financing activities: | ||
Repayments of revolving loan under credit facility | (110,000) | (170,000) |
Proceeds from borrowings on revolving loan under credit facility | 145,000 | 504,375 |
Repayments of long-term borrowings | 0 | (4,375) |
Deferred financing costs | (406) | 0 |
Payment of cash dividends | (72,331) | (71,202) |
Proceeds from sale of common stock | 3,497 | 4,125 |
Tax payments related to shares withheld for vested restricted stock units | (4,464) | (4,968) |
Capital lease payments | (166) | (148) |
Excess tax benefit from share-based compensation | 263 | 0 |
Net cash (used in) provided by financing activities | (38,607) | 257,807 |
Net (decrease) increase in cash and cash equivalents | (44,268) | 151,167 |
Cash and cash equivalents at beginning of period | 607,815 | 466,603 |
Cash and cash equivalents at end of period | $ 563,547 | $ 617,770 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Microchip Technology Incorporated and its majority-owned subsidiaries (the Company). The Company owned 100% of the outstanding stock in all of its subsidiaries as of June 30, 2015. During the three months ended June 30, 2015, the Company purchased the remaining shares of ISSC Technologies Corporation (ISSC) as further discussed in Note 2. The noncontrolling interest in the Company's net income from ISSC has been excluded from net income attributable to the Company in the Company's condensed consolidated statements of income. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (US GAAP), pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). The information furnished herein reflects all adjustments which are, in the opinion of management, of a normal recurring nature and necessary for a fair statement of the results for the interim periods reported. Certain information and footnote disclosures normally included in audited consolidated financial statements have been condensed or omitted pursuant to such SEC rules and regulations. It is suggested that these condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2015 . The results of operations for the three months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2016 or for any other period. |
Business Acquisitions (Notes)
Business Acquisitions (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions Acquisition of ISSC On July 17, 2014, the Company acquired an 83.5% interest in Taiwan based ISSC, a leading provider of low power Bluetooth and advanced wireless solutions for the Internet of Things (IoT) market. The Company acquired the 83.5% ownership interest through a tender offer process. Since the completion of the tender offer, the Company has continued to acquire additional shares of ISSC, and as of June 30, 2015, the Company had completed the acquisition of 100% of the outstanding shares of ISSC. The acquisition was accounted for under the acquisition method of accounting. The table below represents the allocation of the purchase price, including adjustments to the purchase price allocation from the previously reported figures at March 31, 2015, to the net assets acquired based on their estimated fair values as of July 17, 2014 as well as the associated estimated useful lives of the acquired intangible assets at that date. The purchase price allocation was finalized as of June 30, 2015 (amounts in thousands): Assets acquired Previously Reported March 31, 2015 Adjustments June 30, 2015 Cash and cash equivalents $ 15,120 $ — $ 15,120 Short-term investments 27,063 — 27,063 Accounts receivable, net 8,792 — 8,792 Inventories 16,542 — 16,542 Prepaid expenses and other current assets 2,501 — 2,501 Property, plant and equipment, net 2,637 — 2,637 Goodwill 154,399 389 154,788 Purchased intangible assets 147,800 — 147,800 Other assets 1,370 — 1,370 Total assets acquired 376,224 389 376,613 Liabilities assumed Accounts payable (9,860 ) — (9,860 ) Other current liabilities (16,535 ) — (16,535 ) Long-term income tax payable (4,402 ) (389 ) (4,791 ) Deferred tax liability (25,126 ) — (25,126 ) Other long-term liabilities (245 ) — (245 ) Total liabilities assumed (56,168 ) (389 ) (56,557 ) Net assets acquired including noncontrolling interest 320,056 — 320,056 Less: noncontrolling interest (52,467 ) — (52,467 ) Net assets acquired $ 267,589 $ — $ 267,589 Purchased Intangible Assets Useful Life July 17, 2014 (in years) (in thousands) Core/developed technology 10 $ 68,900 In-process technology 10 27,200 Customer-related 3 51,100 Backlog 1 600 $ 147,800 Acquisition of Supertex On April 1, 2014, the Company acquired Supertex Inc., a publicly traded company based in Sunnyvale, California. Supertex is a leader in high voltage analog and mixed signal technologies, with a strong position in the medical, lighting and industrial control markets. The acquisition was accounted for under the acquisition method of accounting. The table below represents the allocation of the purchase price to the net assets acquired based on their estimated fair values as of April 1, 2014 as well as the associated estimated useful lives of the acquired intangible assets at that date. The purchase price allocation was finalized on March 31, 2015 (amounts in thousands): Assets acquired March 31, 2015 Cash and cash equivalents $ 14,790 Short-term investments 140,984 Accounts receivable, net 7,047 Inventories 27,630 Prepaid expenses 1,493 Deferred tax assets 2,456 Other current assets 12,625 Property, plant and equipment, net 15,679 Goodwill 143,160 Purchased intangible assets 89,600 Other assets 325 Total assets acquired 455,789 Liabilities assumed Accounts payable (8,481 ) Accrued liabilities (19,224 ) Long-term income tax payable (3,796 ) Deferred tax liability (32,511 ) Total liabilities assumed (64,012 ) Net assets acquired $ 391,777 Purchased Intangible Assets Useful Life April 1, 2014 (in years) (in thousands) Core/developed technology 10 $ 68,900 In-process technology 10 1,900 Customer-related 2 17,700 Backlog 1 1,100 $ 89,600 |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09- Revenue from Contracts with Customers , which will supersede nearly all existing revenue recognition guidance under US GAAP. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The Company is evaluating its existing revenue recognition policies to determine whether any contracts in the scope of the guidance will be materially affected by the new requirements. The effects may include identifying performance obligations in existing arrangements, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. On July 9, 2015, the FASB delayed the effective date by one year. In accordance with the delay, the new standard is effective for us beginning in the first quarter of the Company's 2019 fiscal year. Early adoption is permitted, but not before the original effective date of December 15, 2016. The standard allows for either "full retrospective" adoption, meaning the standard is applied to all of the periods presented, or "modified retrospective" adoption, meaning the standard is applied only to the most current period presented in the financial statements. The Company is currently evaluating the transition method that will be elected. In April 2015, the FASB issued ASU 2015-03- Simplifying the Presentation of Debt Issuance Costs. This standard amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, but early adoption is permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-05- Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) , Customer's Accounting for Fees Paid in a Cloud Computing Arrangement . This standard provides guidance about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the software license element of the arrangement should be accounted for consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 is effective for fiscal years beginning after December 15, 2015, and interim periods within those years. This standard can be adopted either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. |
Special Charges (Notes)
Special Charges (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Other Nonrecurring (Income) Expense [Abstract] | |
Special charges | Special Charges The Company incurred special charges related to severance, office closing and other costs associated with its acquisition activity of $ 1.6 million and $ 0.3 million for the three months ended June 30, 2015 and June 30, 2014 , respectively. |
Segment Information (Notes)
Segment Information (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's reportable segments are semiconductor products and technology licensing. The Company does not allocate operating expenses, interest income, interest expense, other income or expense, or provision for or benefit from income taxes to these segments for internal reporting purposes, as the Company does not believe that allocating these expenses is beneficial in evaluating segment performance. Additionally, the Company does not allocate assets to segments for internal reporting purposes as it does not manage its segments by such metrics. The following table represents net sales and gross profit for each segment for the three months ended June 30, 2015 (amounts in thousands): Three Months Ended June 30, 2015 Net Sales Gross Profit Semiconductor products $ 510,689 $ 285,754 Technology licensing 23,263 23,263 $ 533,952 $ 309,017 The following table represents net sales and gross profit for each segment for the three months ended June 30, 2014 (amounts in thousands): Three Months Ended June 30, 2014 Net Sales Gross Profit Semiconductor products $ 508,439 $ 286,082 Technology licensing 20,437 20,437 $ 528,876 $ 306,519 |
Investments (Notes)
Investments (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
Investments | Investments The Company's investments are intended to establish a high-quality portfolio that preserves principal, meets liquidity needs, avoids inappropriate concentrations, and delivers an appropriate yield in relationship to the Company's investment guidelines and market conditions. The following is a summary of available-for-sale securities at June 30, 2015 (amounts in thousands): Available-for-sale Securities Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Government agency bonds $ 799,662 $ 494 $ (1,150 ) $ 799,006 Municipal bonds 41,142 9 (765 ) 40,386 Auction rate securities 9,825 — — 9,825 Corporate bonds and debt 1,017,832 1,149 (1,171 ) 1,017,810 $ 1,868,461 $ 1,652 $ (3,086 ) $ 1,867,027 The following is a summary of available-for-sale securities at March 31, 2015 (amounts in thousands): Available-for-sale Securities Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Government agency bonds $ 741,780 $ 676 $ (200 ) $ 742,256 Municipal bonds 41,552 155 (9 ) 41,698 Auction rate securities 9,825 — — 9,825 Time deposits (1) 506 — — 506 Corporate bonds and debt 924,818 2,376 (265 ) 926,929 Marketable equity securities 1,362 11,804 — 13,166 $ 1,719,843 $ 15,011 $ (474 ) $ 1,734,380 (1) Time deposits in various financial institutions with maturities greater than three months that will mature within one year. At June 30, 2015 , the Company's available-for-sale securities are presented on the condensed consolidated balance sheets as short-term investments of $ 969.0 million and long-term investments of $ 898.0 million . At March 31, 2015 , the Company's available-for-sale securities are presented on the condensed consolidated balance sheets as short-term investments of $ 1,351.1 million and long-term investments of $ 383.3 million . At March 31, 2015 , the Company's marketable equity securities consisted of an investment in Hua Hong Semiconductor Limited (Hua Hong), which effected its initial public offering on the Hong Kong stock exchange on October 15, 2014. This investment was previously classified as a non-marketable cost-method investment, and had a carrying value of $ 3.6 million . The Company sold all remaining shares of Hua Hong in the three months ended June 30, 2015. The Company sold available-for-sale investments for proceeds of $ 89.2 million and $ 144.0 million during the three months ended June 30, 2015 and June 30, 2014 , respectively. During the three months ended June 30, 2015 , the Company had net realized gains of $ 14.0 million from sales of available-for-sale marketable equity and debt securities. The Company had no material realized gains from the sale of available-for-sale securities during the three months ended June 30, 2014 . The Company determines the cost of an investment sold on an average cost basis at the individual security level for sales from multiple lots. For all other sales, the Company uses an adjusted cost basis at the individual security level. The following tables show all investments in an unrealized loss position for which an other-than-temporary impairment has not been recognized and the related gross unrealized losses and fair value, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position (amounts in thousands): June 30, 2015 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Government agency bonds $ 442,847 $ (1,061 ) $ 14,911 $ (89 ) $ 457,758 $ (1,150 ) Municipal bonds 37,104 (765 ) — — 37,104 (765 ) Corporate bonds and debt 424,510 (1,088 ) 28,059 (83 ) 452,569 (1,171 ) $ 904,461 $ (2,914 ) $ 42,970 $ (172 ) $ 947,431 $ (3,086 ) March 31, 2015 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Government agency bonds $ 162,948 $ (142 ) $ 29,942 $ (58 ) $ 192,890 $ (200 ) Municipal bonds 13,318 (9 ) — — 13,318 (9 ) Corporate bonds and debt 163,095 (219 ) 19,021 (46 ) 182,116 (265 ) $ 339,361 $ (370 ) $ 48,963 $ (104 ) $ 388,324 $ (474 ) Management does not believe any of the unrealized losses represent an other-than-temporary impairment based on its evaluation of available evidence as of June 30, 2015 and the Company's intent is to hold these investments until these assets are no longer impaired, except for certain auction rate securities (ARS). For those debt securities not scheduled to mature until after June 30, 2016, such recovery is not anticipated to occur in the next year and these investments have been classified as long-term investments on the condensed consolidated balance sheet. The amortized cost and estimated fair value of the available-for-sale securities at June 30, 2015 , by contractual maturity, excluding corporate debt of $ 6.2 million , which has no contractual maturity, are shown below (amounts in thousands). Expected maturities can differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties, and the Company views its available-for-sale securities as available for current operations. Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale Due in one year or less $ 269,962 $ 295 $ (78 ) $ 270,179 Due after one year and through five years 1,485,199 1,357 (2,190 ) 1,484,366 Due after five years and through ten years 97,285 — (818 ) 96,467 Due after ten years 9,825 — — 9,825 $ 1,862,271 $ 1,652 $ (3,086 ) $ 1,860,837 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 3 Months Ended |
Jun. 30, 2014 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |
Fair Value Measurements | Fair Value Measurements Accounting rules for fair value clarify that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the Company utilizes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1- Observable inputs such as quoted prices in active markets; Level 2- Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3- Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. Marketable Debt Instruments Marketable debt instruments include instruments such as corporate bonds and debt, government agency bonds, bank deposits, municipal bonds, and money market mutual funds. When the Company uses observable market prices for identical securities that are traded in less active markets, the Company classifies its marketable debt instruments as Level 2. When observable market prices for identical securities are not available, the Company prices its marketable debt instruments using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments; or pricing models, such as a discounted cash flow model, with all significant inputs derived from or corroborated with observable market data. Non-binding market consensus prices are based on the proprietary valuation models of pricing providers or brokers. These valuation models incorporate a number of inputs, including non-binding and binding broker quotes; observable market prices for identical or similar securities; and the internal assumptions of pricing providers or brokers that use observable market inputs and, to a lesser degree, unobservable market inputs. The Company corroborates non-binding market consensus prices with observable market data using statistical models when observable market data exists. The discounted cash flow model uses observable market inputs, such as LIBOR-based yield curves, currency spot and forward rates, and credit ratings. Derivatives The Company's derivative assets and liabilities include interest rate swaps that are classified as Level 2 as the Company uses inputs other than quoted prices that are observable for the assets or liabilities. The Level 2 derivative assets and liabilities are primarily valued using standard calculations and models that use readily observable market data as their basis. Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis at June 30, 2015 are as follows (amounts in thousands): Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets Cash and cash equivalents: Money market mutual funds $ 217,606 $ — $ — $ 217,606 Deposit accounts — 345,941 — 345,941 Short-term investments: Corporate bonds and debt — 611,880 — 611,880 Government agency bonds — 351,247 — 351,247 Municipal bonds — 5,876 — 5,876 Long-term investments: Corporate bonds and debt — 399,740 6,190 405,930 Government agency bonds — 447,760 — 447,760 Municipal bonds — 34,509 — 34,509 Auction rate securities — — 9,825 9,825 Total assets measured at fair value $ 217,606 $ 2,196,953 $ 16,015 $ 2,430,574 Liabilities Derivative liabilities $ — $ 6,042 $ — $ 6,042 Total liabilities measured at fair value $ — $ 6,042 $ — $ 6,042 Assets measured at fair value on a recurring basis at March 31, 2015 are as follows (amounts in thousands): Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets Cash and cash equivalents: Money market mutual funds $ 279,833 $ — $ — $ 279,833 Deposit accounts — 327,982 — 327,982 Short-term investments: Marketable equity securities 13,166 — — 13,166 Corporate bonds and debt — 756,664 — 756,664 Time deposits (1) — 506 — 506 Government agency bonds — 549,737 — 549,737 Municipal bonds — 30,981 — 30,981 Long-term investments: Corporate bonds and debt — 164,075 6,190 170,265 Government agency bonds — 192,519 — 192,519 Municipal bonds — 10,717 — 10,717 Auction rate securities — — 9,825 9,825 Derivative assets — 8,928 — 8,928 Total assets measured at fair value $ 292,999 $ 2,042,109 $ 16,015 $ 2,351,123 (1) Time deposits in various financial institutions with maturities greater than three months that will mature within one year. There were no transfers between Level 1 and Level 2 during the three -month period ended June 30, 2015 or the year ended March 31, 2015 . At June 30, 2015 and at March 31, 2015 , the Company's ARS for which recent auctions were unsuccessful are made up of securities related to the insurance industry valued at $ 9.8 million with a par value of $ 22.4 million . The Company estimated the fair value of its ARS, which are classified as Level 3 securities, based on the following: (i) the underlying structure of each security; (ii) the present value of future principal and interest payments discounted at rates considered to reflect current market conditions; (iii) consideration of the probabilities of default, auction failure, or repurchase at par for each period; and (iv) estimates of the recovery rates in the event of default for each security. The significant unobservable inputs used in the fair value measurement of the ARS as of June 30, 2015 were estimated risk free discount rates, liquidity risk premium, and the liquidity horizon. The risk free discount rate applied to these securities was 2% to 2.5% adjusted for the liquidity risk premium which ranged from 9.1% to 29.5% . The anticipated liquidity horizon ranged from 7 to 10 years. A significant increase in the liquidity premium, discount rate or liquidity horizon, in isolation, would lead to a significantly lower fair value measurement. Each quarter, the Company investigates material changes in the fair value measurements of its ARS. Assets Measured and Recorded at Fair Value on a Non-Recurring Basis The Company's non-marketable equity, cost method investments, and non-financial assets, such as intangible assets, assets held for sale and property, plant and equipment, are recorded at fair value on a non-recurring basis. These assets are subject to fair value adjustments in certain circumstances, for example, when there is evidence of impairment. The Company's non-marketable and cost method investments are monitored on a quarterly basis for impairment charges. The fair values of these investments have been determined as Level 3 fair value measurements because the valuations use unobservable inputs that require management's judgment due to the absence of quoted market prices. There were no impairment charges recognized on these investments during the three -month periods ended June 30, 2015 and June 30, 2014 . These investments are included in other assets on the condensed consolidated balance sheet. The fair value measurements related to the Company's non-financial assets, such as intangible assets, assets held for sale and property, plant and equipment are based on available market prices at the measurement date based on transactions of similar assets and third-party independent appraisals, less cost to sell where appropriate. The Company classifies these measurements as Level 2. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amount of cash equivalents approximates fair value because their maturity is less than three months. Management believes the carrying amount of the equity and cost-method investments materially approximated fair value at June 30, 2015 based upon unobservable inputs. The fair values of these investments have been determined as Level 3 fair value measurements. The fair values of the Company's line of credit borrowings are estimated using discounted cash flow analyses, based on the Company's current incremental borrowing rates for similar types of borrowing arrangements and approximate carrying value. Based on the borrowing rates currently available to the Company for bank loans with similar terms and average maturities, the fair value of the Company's line of credit borrowings at June 30, 2015 approximated book value and are considered Level 2 in the fair value hierarchy described in Note 7. The carrying amount of accounts receivable, accounts payable and accrued liabilities approximates fair value due to the short-term maturity of the amounts and are considered Level 2 in the fair value hierarchy. The fair value of the Company's senior subordinated convertible debentures was $ 1.740 billion at June 30, 2015 and $ 1.788 billion at March 31, 2015 . The fair value of the Company's junior subordinated convertible debentures was $ 1.087 billion at June 30, 2015 and $ 1.124 billion at March 31, 2015 . The fair value of the Company's senior and junior subordinated convertible debentures are based on observable market prices for these debentures, which are traded in less active markets and are therefore classified as a Level 2 fair value measurement, and exclude the impacts of derivative activity. |
Accounts Receivable (Notes)
Accounts Receivable (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable consists of the following (amounts in thousands): June 30, 2015 March 31, 2015 Trade accounts receivable $ 276,087 $ 269,844 Other 3,535 6,714 279,622 276,558 Less allowance for doubtful accounts 2,589 2,621 $ 277,033 $ 273,937 |
Inventories (Notes)
Inventories (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories consist of the following (amounts in thousands): June 30, 2015 March 31, 2015 Raw materials $ 14,066 $ 13,263 Work in process 216,390 197,565 Finished goods 73,234 68,628 $ 303,690 $ 279,456 Inventories are valued at the lower of cost or market using the first-in, first-out method. Inventory impairment charges establish a new cost basis for inventory and charges are not subsequently reversed to income even if circumstances later suggest that increased carrying amounts are recoverable. |
Assets Held for Sale (Notes)
Assets Held for Sale (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
Assets Held for Sale | Assets Held for Sale During the year ended March 31, 2015, the Company began to actively market property it acquired as part of the Supertex acquisition. In May 2015, the Company entered into an agreement to sell the property and subsequently completed the sale on July 22, 2015 for $ 14.3 million . As of June 30, 2015 , the Company classified the assets as held for sale on its condensed consolidated balance sheet at its fair value of approximately $ 14.3 million , net of the estimated cost to sell of approximately $ 0.6 million . |
Property, Plant and Equipment (
Property, Plant and Equipment (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consists of the following (amounts in thousands): June 30, 2015 March 31, 2015 Land $ 55,624 $ 55,624 Building and building improvements 437,751 434,403 Machinery and equipment 1,598,481 1,576,074 Projects in process 86,093 76,315 2,177,949 2,142,416 Less accumulated depreciation and amortization 1,582,702 1,560,844 $ 595,247 $ 581,572 Depreciation expense attributed to property, plant and equipment was $ 24.7 million for the three months ended June 30, 2015 and $ 23.3 million for the three months ended June 30, 2014 . |
Noncontrolling Interests (Notes
Noncontrolling Interests (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | Noncontrolling Interests The following table presents the changes in the components of noncontrolling interests for the three months ended June 30, 2015 (amounts in thousands): Noncontrolling Interests Balance at March 31, 2015 $ 16,372 Net loss attributable to noncontrolling interests (207 ) Purchase of additional interests (16,165 ) Balance at June 30, 2015 $ — The following table presents the effect of changes in the Company's ownership interest in ISSC on the Company's stockholders' equity for the three months ended June 30, 2015 (amounts in thousands): Three Months Ended June 30, 2015 Net income attributable to Microchip Technology stockholders $ 130,667 Decrease in paid-in capital for purchase of additional interests (1,610 ) Transfers from noncontrolling interest (1,610 ) Change from net income attributable to Microchip Technology stockholders and transfers from noncontrolling interest $ 129,057 |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes reflects tax on foreign earnings and federal and state tax on U.S. earnings. The Company had an effective tax rate benefit of 9.1% for the three -month period ended June 30, 2015 and an effective tax rate of 16.0% for the three -month period ended June 30, 2014 . The Company's effective tax rate for three -month period ended June 30, 2015 is lower compared to the prior year primarily due to a revaluation of deferred tax liabilities. The income tax benefit realized during the three -month period ended June 30, 2015 included the reversal of a previously established valuation allowance against its U.S. deferred tax assets, as well as a revaluation of its foreign deferred tax liabilities. The Company's effective tax rate is lower than statutory rates in the U.S. due primarily to its mix of earnings in foreign jurisdictions with lower tax rates. At June 30, 2015 , the Company had $ 203.0 million of unrecognized tax benefits. Unrecognized tax benefits increased by $ 4.0 million compared to March 31, 2015 primarily as a result of the ongoing accrual for uncertain tax positions and the accrual of deficiency interest on these positions. The Company files U.S. federal, U.S. state, and foreign income tax returns. For U.S. federal, and in general for U.S. state tax returns, the fiscal 2011 and later tax years remain open for examination by tax authorities. The U.S. Internal Revenue Service (IRS) is currently auditing Microchip's 2011 and 2012 tax years. For foreign tax returns, the Company is generally no longer subject to income tax examinations for years prior to fiscal 2007. The Company recognizes liabilities for anticipated tax audit issues in the U.S. and other domestic and international tax jurisdictions based on its estimate of whether, and the extent to which, additional tax payments are more likely than not. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns and that its accruals for tax liabilities are adequate for all open years based on an assessment of many factors including past experience and interpretations of tax laws applied to the facts of each matter. The Company believes it maintains appropriate reserves to offset any potential income tax liabilities that may arise upon final resolution of matters for open tax years. If such reserve amounts ultimately prove to be unnecessary, the resulting reversal of such reserves would result in tax benefits being recorded in the period the reserves are no longer deemed necessary. If such amounts prove to be less than an ultimate assessment, a future charge to expense would be recorded in the period in which the assessment is determined. Although the timing of the resolution and/or closure of audits is highly uncertain, the Company does not believe it is reasonably possible that the unrecognized tax benefits would materially change in the next 12 months. |
1.625% Senior Subordinated Conv
1.625% Senior Subordinated Convertible Debentures (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Senior Subordinated Convertible Debenture Due 2025 [Member] | |
Debt Instrument [Line Items] | |
Senior subordinated convertible debentures | 1.625% Senior Subordinated Convertible Debentures In February 2015, the Company issued $ 1,725.0 million principal amount of 1.625% senior subordinated convertible debentures due February 15, 2025 . The debentures are subordinated to the Company's senior debt, including amounts borrowed under its amended credit facility, but are senior to the Company's outstanding 2.125% junior subordinated convertible debentures. The debentures are convertible, subject to certain conditions, into cash, shares of the Company's common stock or a combination thereof, at the Company's election, at an initial base conversion rate of 14.5654 shares of common stock per $ 1,000 principal amount of debentures, representing an initial base conversion price of approximately $ 68.66 per share of common stock. As a result of cash dividends paid since the issuance of the debentures, the conversion rate has been adjusted to 14.7765 shares of common stock per $ 1,000 of principal amount of debentures, representing a base conversion price of approximately $ 67.67 per share of common stock. In addition, if at the time of conversion the applicable price of the Company's common stock exceeds the base conversion price, the conversion rate will be increased by up to an additional 7.2827 shares of common stock per $ 1,000 principal amount of debentures, as determined pursuant to a specified formula. As a result of cash dividends paid since the issuance of the debentures, the maximum number of additional shares that may be issued if the stock price of the Company's common stock exceeds the base conversion price has been adjusted to 7.3883 shares of common stock per $ 1,000 principal amount of debentures. However, in no event will the conversion rate exceed 20.3915 (adjusted to 20.6871 as a result of cash dividends paid since the issuance of the debentures) shares of common stock per $ 1,000 principal amount of debentures. The Company received net proceeds of approximately $ 1,694.7 million after deduction of issuance costs of approximately $ 30.3 million . The $ 30.3 million in issuance costs were split between a debt component of $ 20.4 million and an equity component of $ 9.9 million . The $ 20.4 million in debt issuance costs are recorded in other assets and are being amortized using the effective interest method over the term of the debentures. Prior to the close of business on the business day immediately preceding November 15, 2024, the debentures will be convertible at the option of the debenture holders only upon the satisfaction of specified conditions and during certain periods. Thereafter until close of business on the second scheduled trading day immediately preceding February 15, 2025, the debentures will be convertible at the option of the debenture holders at any time regardless of these conditions. Accrued and unpaid interest will be considered fully paid upon settlement of shares. As the debentures can be settled in cash upon conversion, for accounting purposes, the debentures were bifurcated into a liability component and an equity component, which are both initially recorded at fair value. The carrying value of the equity component at June 30, 2015 and March 31, 2015 was $ 564.9 million . The estimated fair value of the liability component of the debentures at the issuance date was $1,160.1 million resulting in a debt discount of $ 564.9 million . The unamortized debt discount was $ 548.8 million at June 30, 2015 and $ 559.3 million at March 31, 2015 . The remaining period over which the unamortized debt discount will be recognized as non-cash interest expense is 9.62 years . In the three months ended June 30, 2015 , the Company recognized $ 10.5 million in non-cash interest expense related to the amortization of the debt discount. The Company recognized $ 7.0 million of interest expense related to the 1.625% coupon on the debentures in the three months ended June 30, 2015 . The effective interest rate of the debentures is 6.1% . |
2.125% Junior subordinated conv
2.125% Junior subordinated convertible debentures (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Junior Subordinated Convertible Debentures Due 2037 Member | |
Debt Instrument [Line Items] | |
Junior subordinated convertible debentures | 2.125% Junior Subordinated Convertible Debentures The Company's $ 575.0 million principal amount of 2.125% junior subordinated convertible debentures due December 15, 2037 , are subordinated in right of payment to any future senior debt of the Company and are effectively subordinated in right of payment to the liabilities of the Company's subsidiaries. The debentures are convertible, subject to certain conditions, into cash, shares of the Company's common stock or a combination thereof, at the Company's election, at an initial conversion rate of 29.2783 shares of common stock per $ 1,000 principal amount of debentures, representing an initial conversion price of approximately $ 34.16 per share of common stock. As of June 30, 2015 , the holders of the debentures had the right to convert their debentures between July 1, 2015 and September 30, 2015 because for at least 20 trading days during the 30 consecutive trading day period ending on June 30, 2015 , the Company's common stock had a last reported sale price greater than 130% of the conversion price. As of June 30, 2015 , a holder could realize more economic value by selling its debentures in the over the counter market than from converting its debentures. As a result of cash dividends paid since the issuance of the debentures, the conversion rate has been adjusted to 40.1485 shares of common stock per $ 1,000 of principal amount of debentures, representing a conversion price of approximately $ 24.91 per share of common stock. The if-converted value of the debentures exceed the principal amount by $ 519.9 million at June 30, 2015 . The debentures include a contingent interest mechanism that begins in December 2017. The terms of the contingent interest include a 0.25% interest rate if the debentures are trading at less than $400 and 0.5% if the debentures are trading at greater than $1,500 . Based on the current trading price of the debentures, the contingent interest rate in calendar year 2017 would be 0.5% . As the debentures can be settled in cash upon conversion, for accounting purposes, the debentures were bifurcated into a liability component and an equity component, which are both initially recorded at fair value. The carrying value of the equity component at June 30, 2015 and at March 31, 2015 was $ 411.2 million . The estimated fair value of the liability component of the debentures at the issuance date was $163.8 million , resulting in a debt discount of $ 411.2 million . The unamortized debt discount was $ 382.4 million at June 30, 2015 and $ 383.7 million at March 31, 2015 . The remaining period over which the unamortized debt discount will be recognized as non-cash interest expense is 22.5 years. In the three months ended June 30, 2015 , the Company recognized $ 1.3 million in non-cash interest expense related to the amortization of the debt discount. In the three months ended June 30, 2014 , the Company recognized $ 2.4 million in non-cash interest expense related to the amortization of the debt discount. The Company recognized $ 3.1 million of interest expense related to the 2.125% coupon on the debentures in the three months ended June 30, 2015 compared to $ 6.1 million in the three months ended June 30, 2014 . The Company acquired $ 575.0 million in aggregate principal amount of its 2.125% junior subordinated convertible debentures in the March 2015 quarter which is the primary reason for the reductions of interest expense in the three months ended June 30, 2015 compared to the prior year period. The effective interest rate of the debentures is 9.1% . |
Credit facility (Notes)
Credit facility (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Line of Credit Facility [Abstract] | |
Credit Facility | Credit Facility In February 2015, the Company amended its existing $2.0 billion credit agreement by increasing the revolving credit facility to $2.555 billion and removing the term loan portion of the agreement. The new credit agreement includes two tranches. One tranche consists of bank commitments through February 2020 and another tranche consists of bank commitments through June 2018, the maturity date of the original credit agreement. The Company's increase option was also adjusted to $300 million . The credit agreement provides for a $ 125 million foreign currency sublimit, a $ 25 million letter of credit sublimit and a $25 million swingline loan sublimit. The amended credit agreement was accounted for as a modification and as such any remaining unamortized deferred costs associated with the prior credit agreement was associated with the new credit agreement since the borrowing capacity was increased. At June 30, 2015 , $ 497.0 million of revolving credit facility borrowings were outstanding under the credit agreement compared to $ 462.0 million at March 31, 2015 . The loans under the credit agreement bear interest, at the Company's option, at the base rate plus a spread of 0.25% to 1.25% or an adjusted LIBOR rate (based on one, two, three, or six-month interest periods) plus a spread of 1.25% to 2.25% , in each case with such spread being determined based on the consolidated leverage ratio for the preceding four fiscal quarters (in the case of the 2018 tranche revolving loans) or the consolidated senior leverage ratio (in the case of the 2020 tranche revolving loans). The base rate means the highest of JPMorgan Chase Bank, N.A.'s prime rate, the federal funds rate plus a margin equal to 0.50% and the adjusted LIBOR rate for a 1-month interest period plus a margin equal to 1.00% . Swingline loans accrue interest at a per annum rate based on the base rate plus the applicable margin for base rate loans. Base rate loans may only be made in U.S. dollars. The Company is also obligated to pay other customary administration fees and letter of credit fees for a credit facility of this size and type. Interest is due and payable in arrears quarterly for loans bearing interest at the base rate and at the end of an interest period (or at each three-month interval in the case of loans with interest periods greater than three months) in the case of loans bearing interest at the adjusted LIBOR rate. Interest expense related to the credit agreement was approximately $ 3.6 million in the three months ended June 30, 2015 and approximately $ 5.0 million in the three months ended June 30, 2014 . Principal, together with all accrued and unpaid interest, is due and payable on the respective tranche maturity date, which is June 27, 2018 and February 4, 2020. The weighted average interest rate on short-term borrowings outstanding at June 30, 2015 related to the credit agreement was 1.44% . The Company also pays a quarterly commitment fee on the available but unused portion of its line of credit which is calculated on the average daily available balance during the period. The Company may prepay the loans and terminate the commitments, in whole or in part, at any time without premium or penalty, subject to certain conditions including minimum amounts in the case of commitment reductions and reimbursement of certain costs in the case of prepayments of LIBOR loans. The Company's obligations under the credit agreement are guaranteed by certain of its subsidiaries meeting materiality thresholds set forth in the credit agreement. To secure the Company's obligations under the credit agreement, the Company and its domestic subsidiaries will be required to pledge the equity securities of certain of their respective material subsidiaries, subject to certain exceptions and limitations. The credit agreement contains customary affirmative and negative covenants, including covenants that limit or restrict the Company and its subsidiaries' ability to, among other things, incur subsidiary indebtedness, grant liens, merge or consolidate, dispose of assets, make investments, make acquisitions, enter into certain transactions with affiliates, pay dividends or make distributions, repurchase stock, enter into restrictive agreements and enter into sale and leaseback transactions, in each case subject to customary exceptions for a credit facility of this size and type. The Company is also required to maintain compliance with consolidated senior and total leverage ratios and a consolidated interest coverage ratio. At June 30, 2015 , the Company was in compliance with these covenants. The credit agreement includes customary events of default that include, among other things, non-payment defaults, inaccuracy of representations and warranties, covenant defaults, cross default to material indebtedness, bankruptcy and insolvency defaults, material judgment defaults, ERISA defaults and a change of control default. The occurrence of an event of default could result in the acceleration of the obligations under the credit agreement. Under certain circumstances, a default interest rate will apply on all obligations during the existence of an event of default under the credit agreement at a per annum rate equal to 2.00% above the applicable interest rate for any overdue principal and 2.00% above the rate applicable for base rate loans for any other overdue amounts. |
Contingencies (Notes)
Contingencies (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies In the ordinary course of the Company's business, it is involved in a limited number of legal actions, both as plaintiff and defendant, and could incur uninsured liability in any one or more of them. The Company also periodically receives notifications from various third parties alleging infringement of patents, intellectual property rights or other matters. With respect to pending legal actions to which the Company is a party, although the outcomes of these actions are not generally determinable, the Company believes that the ultimate resolution of these matters will not have a material adverse effect on its financial position, cash flows or results of operations. Litigation relating to the semiconductor industry is not uncommon, and the Company is, and from time to time has been, subject to such litigation. No assurances can be given with respect to the extent or outcome of any such litigation in the future. The Company's technology license agreements generally include an indemnification clause that indemnifies the licensee against liability and damages (including legal defense costs) arising from any claims of patent, copyright, trademark or trade secret infringement by the Company's proprietary technology. The terms of these indemnification provisions approximate the terms of the outgoing technology license agreements, which are typically perpetual unless terminated by either party for breach. The possible amount of future payments the Company could be required to make based on agreements that specify indemnification limits, if such indemnifications were required on all of these agreements, is approximately $ 139 million . There are some licensing agreements in place that do not specify indemnification limits. The Company had not recorded any liabilities related to these indemnification obligations as of June 30, 2015 . |
Derivative Instruments (Notes)
Derivative Instruments (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Freestanding Derivative Forward Contracts Foreign Currency Exchange Rate Risk The Company has international operations and is thus subject to foreign currency rate fluctuations. To help manage the risk of changes in foreign currency rates, the Company periodically enters into derivative contracts comprised of foreign currency forward contracts to hedge its asset and liability foreign currency exposure and a portion of its foreign currency operating expenses. Approximately 99 % of the Company's sales are U.S. dollar denominated. To date, the exposure related to foreign exchange rate volatility has not been material to the Company's operating results. As of June 30, 2015 and March 31, 2015, the Company had no foreign currency forward contracts outstanding. The Company recognized an immaterial amount of net realized gains and losses on foreign currency forward contracts in each of the three months ended June 30, 2015 and 2014. Gains and losses from changes in the fair value of these foreign currency forward contracts and foreign currency exchange rate fluctuations are credited or charged to Other Income (Expense) on the condensed consolidated statements of income. The Company does not apply hedge accounting to its foreign currency derivative instruments. Fair Value Hedges For derivative instruments that are designated and qualify as fair value hedges, the gain or loss on the derivatives as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in earnings. Interest rate derivative instruments designated as fair value hedges are designed to manage the exposure to interest rate movements and to reduce borrowing costs by converting fixed-rate debt into floating-rate debt. Under these agreements, the Company agrees to exchange, at specified intervals, the difference between the fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. In March 2015, the Company entered into ten-year fixed-to-floating interest rate swap agreements designated as fair value hedges of the changes in fair value of a portion of the Company's fixed-rate 1.625% senior subordinated convertible debentures due to changes in the LIBOR swap rate, the designated benchmark interest rate. The Company pays variable interest equal to the three-month LIBOR minus 53.6 basis points, and it receives a fixed interest rate of 1.625%. The notional amount of these contracts outstanding at June 30, 2015 and at March 31, 2015 was $431.3 million, representing 25% of the principal amount of the senior subordinated convertible debentures. The following table summarizes the location and fair value amounts of derivative instruments reported on the condensed consolidated balance sheets (amounts in thousands): June 30, 2015 March 31, 2015 Derivatives designated as hedging instruments Other long-term liabilities Other assets Other long-term liabilities Other assets Interest rate contracts $ 6,042 $ — $ — $ 8,928 The following table summarizes the location and amount of the gain or loss on the hedged item attributable to the changes in the LIBOR swap rate and the offsetting gain or loss on the related interest rate swap agreements for the three months ended June 30, 2015 . The difference represents hedge ineffectiveness (amounts in thousands): Income Statement Classification Gain (Loss) on Senior Subordinated Convertible Debentures Gain (Loss) on Interest Rate Swap Other Income (Expense) $ 14,931 $ (14,971 ) |
Comprehensive Income (Loss) (No
Comprehensive Income (Loss) (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Comprehensive Income | Comprehensive Income (Loss) The following table presents the changes in the components of accumulated other comprehensive income (AOCI) for the three months ended June 30, 2015 (amounts in thousands): Unrealized holding gains (losses) available-for-sale securities Minimum pension liability Foreign Currency Total Balance at March 31, 2015 $ 14,537 $ 13 $ (3,474 ) $ 11,076 Other comprehensive (loss) income before reclassifications (2,012 ) — — (2,012 ) Amounts reclassified from accumulated other comprehensive (loss) income (13,959 ) — — (13,959 ) Net other comprehensive (loss) income (15,971 ) — — (15,971 ) Purchase of shares from noncontrolling interest — — (276 ) (276 ) Balance at June 30, 2015 $ (1,434 ) $ 13 $ (3,750 ) $ (5,171 ) The table below details where reclassifications of realized transactions out of AOCI are recorded on the condensed consolidated statements of income (amounts in thousands): Three Months Ended June 30, Description of AOCI Component 2015 2014 Related Statement of Income Line Unrealized gains on available-for-sale securities $ 13,959 $ 34 Other income Taxes — (12 ) Provision for income taxes Reclassification of realized transactions, net of taxes $ 13,959 $ 22 Net income |
Share-Based Compensation (Notes
Share-Based Compensation (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity incentive plans | Share-Based Compensation The following table presents the details of the Company's share-based compensation expense (amounts in thousands): Three Months Ended June 30, 2015 2014 Cost of sales $ 1,657 (1) $ 2,055 (1) Research and development 7,098 6,309 Selling, general and administrative 5,357 4,957 Pre-tax effect of share-based compensation 14,112 13,321 Income tax benefit 3,532 1,420 Net income effect of share-based compensation $ 10,580 $ 11,901 (1) During the three months ended June 30, 2015 , $ 1.8 million of share-based compensation expense was capitalized to inventory and $ 1.7 million of previously capitalized share-based compensation expense in inventory was sold. During the three months ended June 30, 2014 , $ 1.7 million of share-based compensation expense was capitalized to inventory and $ 2.1 million of previously capitalized share-based compensation expense in inventory was sold. |
Net income per common share (No
Net income per common share (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net income per common share | Net Income Per Common Share Attributable to Microchip Technology Stockholders The following table sets forth the computation of basic and diluted net income per common share attributable to Microchip Technology stockholders (in thousands, except per share amounts): Three Months Ended June 30, 2015 2014 Net income attributable to Microchip Technology $ 130,667 $ 89,909 Weighted average common shares outstanding 202,232 200,187 Dilutive effect of stock options and RSUs 3,392 3,792 Dilutive effect of 2037 junior subordinated convertible debentures 11,143 20,548 Weighted average common and potential common shares outstanding 216,767 224,527 Basic net income per common share attributable to Microchip Technology stockholders $ 0.65 $ 0.45 Diluted net income per common share attributable to Microchip Technology stockholders $ 0.60 $ 0.40 The Company computed basic earnings per common share attributable to its stockholders using net income available to common stockholders and the weighted average number of common shares outstanding during the period. The Company computed diluted earnings per common share attributable to its stockholders using net income available to stockholders and the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period. Potentially dilutive common shares from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options and the assumed vesting of outstanding RSUs. Diluted net income per common share attributable to stockholders for the three months ended June 30, 2015 and June 30, 2014 includes 11,142,772 shares and 20,547,832 shares, respectively, issuable upon the exchange of the Company's 2.125% junior subordinated convertible debentures due December 15, 2037 (see Note 16). The debentures have no impact on diluted net income per common share unless the average price of the Company's common stock exceeds the conversion price because the principal amount of the debentures will be settled in cash upon conversion. Prior to conversion, the Company will include, in the diluted net income per common share calculation, the effect of the additional shares that may be issued when the Company's common stock price exceeds the conversion price using the treasury stock method. The weighted average conversion price per share used in calculating the dilutive effect of the convertible debt for the three -month periods ended June 30, 2015 and June 30, 2014 was $25.01 and $25.75 , respectively. There were no shares issuable upon the exchange of the Company's 1.625% senior subordinated convertible debentures due February 15, 2025 (see Note 15). The debentures have no impact on diluted net income per common share unless the average price of the Company's common stock exceeds the conversion price because the principal amount of the debentures will be settled in cash upon conversion. Prior to conversion, the Company will include, in the diluted net income per common share calculation, the effect of the additional shares that may be issued when the Company's common stock price exceeds the conversion price using the treasury stock method. The weighted average conversion price per share used in calculating the dilutive effect of the convertible debt for the three months ended June 30, 2015 was $67.95 . Weighted average common shares exclude the effect of option shares which are not dilutive. There were no antidilutive option shares for the three months ended June 30, 2015 and June 30, 2014 . |
Dividends (Notes)
Dividends (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Dividends [Abstract] | |
Dividends | Dividends A quarterly cash dividend of $ 0.3575 per share was paid on June 4, 2015 in the aggregate amount of $ 72.3 million . A quarterly cash dividend of $ 0.358 per share was declared on August 3, 2015 and will be paid on September 25, 2015 to stockholders of record as of September 11, 2015 . The Company expects the September payment of its quarterly cash dividend to be approximately $ 75.7 million . |
Subsequent Event (Notes)
Subsequent Event (Notes) | 3 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On August 3, 2015, the Company completed its acquisition of Micrel Incorporated (Micrel). Under the terms of the merger agreement executed on May 7, 2015, Micrel shareholders were able to elect to receive the $ 14.00 per share purchase price in either cash or shares of Microchip common stock. Based on the results of the shareholder elections, the Company paid an aggregate of approximately $ 430 million in cash and issued an aggregate of 8,626,795 shares of its common stock to Micrel shareholders. The number of shares of the Company's common stock that a Micrel shareholder will receive is based on a conversion ratio of $ 14.00 divided by the average of the Company's closing stock price for the ten most recent trading days ending on the second to last trading day prior to August 3, 2015, which is $ 42.888 per share. |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
ISSC Technologies Corporation [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below represents the allocation of the purchase price, including adjustments to the purchase price allocation from the previously reported figures at March 31, 2015, to the net assets acquired based on their estimated fair values as of July 17, 2014 as well as the associated estimated useful lives of the acquired intangible assets at that date. The purchase price allocation was finalized as of June 30, 2015 (amounts in thousands): Assets acquired Previously Reported March 31, 2015 Adjustments June 30, 2015 Cash and cash equivalents $ 15,120 $ — $ 15,120 Short-term investments 27,063 — 27,063 Accounts receivable, net 8,792 — 8,792 Inventories 16,542 — 16,542 Prepaid expenses and other current assets 2,501 — 2,501 Property, plant and equipment, net 2,637 — 2,637 Goodwill 154,399 389 154,788 Purchased intangible assets 147,800 — 147,800 Other assets 1,370 — 1,370 Total assets acquired 376,224 389 376,613 Liabilities assumed Accounts payable (9,860 ) — (9,860 ) Other current liabilities (16,535 ) — (16,535 ) Long-term income tax payable (4,402 ) (389 ) (4,791 ) Deferred tax liability (25,126 ) — (25,126 ) Other long-term liabilities (245 ) — (245 ) Total liabilities assumed (56,168 ) (389 ) (56,557 ) Net assets acquired including noncontrolling interest 320,056 — 320,056 Less: noncontrolling interest (52,467 ) — (52,467 ) Net assets acquired $ 267,589 $ — $ 267,589 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | Purchased Intangible Assets Useful Life July 17, 2014 (in years) (in thousands) Core/developed technology 10 $ 68,900 In-process technology 10 27,200 Customer-related 3 51,100 Backlog 1 600 $ 147,800 |
Supertex Inc. [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below represents the allocation of the purchase price to the net assets acquired based on their estimated fair values as of April 1, 2014 as well as the associated estimated useful lives of the acquired intangible assets at that date. The purchase price allocation was finalized on March 31, 2015 (amounts in thousands): Assets acquired March 31, 2015 Cash and cash equivalents $ 14,790 Short-term investments 140,984 Accounts receivable, net 7,047 Inventories 27,630 Prepaid expenses 1,493 Deferred tax assets 2,456 Other current assets 12,625 Property, plant and equipment, net 15,679 Goodwill 143,160 Purchased intangible assets 89,600 Other assets 325 Total assets acquired 455,789 Liabilities assumed Accounts payable (8,481 ) Accrued liabilities (19,224 ) Long-term income tax payable (3,796 ) Deferred tax liability (32,511 ) Total liabilities assumed (64,012 ) Net assets acquired $ 391,777 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | Purchased Intangible Assets Useful Life April 1, 2014 (in years) (in thousands) Core/developed technology 10 $ 68,900 In-process technology 10 1,900 Customer-related 2 17,700 Backlog 1 1,100 $ 89,600 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Net sales and gross profit for each segment | The following table represents net sales and gross profit for each segment for the three months ended June 30, 2015 (amounts in thousands): Three Months Ended June 30, 2015 Net Sales Gross Profit Semiconductor products $ 510,689 $ 285,754 Technology licensing 23,263 23,263 $ 533,952 $ 309,017 The following table represents net sales and gross profit for each segment for the three months ended June 30, 2014 (amounts in thousands): Three Months Ended June 30, 2014 Net Sales Gross Profit Semiconductor products $ 508,439 $ 286,082 Technology licensing 20,437 20,437 $ 528,876 $ 306,519 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
Summary of available-for-sale securities | The following is a summary of available-for-sale securities at June 30, 2015 (amounts in thousands): Available-for-sale Securities Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Government agency bonds $ 799,662 $ 494 $ (1,150 ) $ 799,006 Municipal bonds 41,142 9 (765 ) 40,386 Auction rate securities 9,825 — — 9,825 Corporate bonds and debt 1,017,832 1,149 (1,171 ) 1,017,810 $ 1,868,461 $ 1,652 $ (3,086 ) $ 1,867,027 The following is a summary of available-for-sale securities at March 31, 2015 (amounts in thousands): Available-for-sale Securities Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Government agency bonds $ 741,780 $ 676 $ (200 ) $ 742,256 Municipal bonds 41,552 155 (9 ) 41,698 Auction rate securities 9,825 — — 9,825 Time deposits (1) 506 — — 506 Corporate bonds and debt 924,818 2,376 (265 ) 926,929 Marketable equity securities 1,362 11,804 — 13,166 $ 1,719,843 $ 15,011 $ (474 ) $ 1,734,380 |
Summary of available-for-sale securities in a continuous unrealized loss position | The following tables show all investments in an unrealized loss position for which an other-than-temporary impairment has not been recognized and the related gross unrealized losses and fair value, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position (amounts in thousands): June 30, 2015 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Government agency bonds $ 442,847 $ (1,061 ) $ 14,911 $ (89 ) $ 457,758 $ (1,150 ) Municipal bonds 37,104 (765 ) — — 37,104 (765 ) Corporate bonds and debt 424,510 (1,088 ) 28,059 (83 ) 452,569 (1,171 ) $ 904,461 $ (2,914 ) $ 42,970 $ (172 ) $ 947,431 $ (3,086 ) March 31, 2015 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Government agency bonds $ 162,948 $ (142 ) $ 29,942 $ (58 ) $ 192,890 $ (200 ) Municipal bonds 13,318 (9 ) — — 13,318 (9 ) Corporate bonds and debt 163,095 (219 ) 19,021 (46 ) 182,116 (265 ) $ 339,361 $ (370 ) $ 48,963 $ (104 ) $ 388,324 $ (474 ) |
Summary of amortized cost and estimated fair value of available-for-sale securities, by maturity | The amortized cost and estimated fair value of the available-for-sale securities at June 30, 2015 , by contractual maturity, excluding corporate debt of $ 6.2 million , which has no contractual maturity, are shown below (amounts in thousands). Expected maturities can differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties, and the Company views its available-for-sale securities as available for current operations. Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale Due in one year or less $ 269,962 $ 295 $ (78 ) $ 270,179 Due after one year and through five years 1,485,199 1,357 (2,190 ) 1,484,366 Due after five years and through ten years 97,285 — (818 ) 96,467 Due after ten years 9,825 — — 9,825 $ 1,862,271 $ 1,652 $ (3,086 ) $ 1,860,837 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis at June 30, 2015 are as follows (amounts in thousands): Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets Cash and cash equivalents: Money market mutual funds $ 217,606 $ — $ — $ 217,606 Deposit accounts — 345,941 — 345,941 Short-term investments: Corporate bonds and debt — 611,880 — 611,880 Government agency bonds — 351,247 — 351,247 Municipal bonds — 5,876 — 5,876 Long-term investments: Corporate bonds and debt — 399,740 6,190 405,930 Government agency bonds — 447,760 — 447,760 Municipal bonds — 34,509 — 34,509 Auction rate securities — — 9,825 9,825 Total assets measured at fair value $ 217,606 $ 2,196,953 $ 16,015 $ 2,430,574 Liabilities Derivative liabilities $ — $ 6,042 $ — $ 6,042 Total liabilities measured at fair value $ — $ 6,042 $ — $ 6,042 Assets measured at fair value on a recurring basis at March 31, 2015 are as follows (amounts in thousands): Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets Cash and cash equivalents: Money market mutual funds $ 279,833 $ — $ — $ 279,833 Deposit accounts — 327,982 — 327,982 Short-term investments: Marketable equity securities 13,166 — — 13,166 Corporate bonds and debt — 756,664 — 756,664 Time deposits (1) — 506 — 506 Government agency bonds — 549,737 — 549,737 Municipal bonds — 30,981 — 30,981 Long-term investments: Corporate bonds and debt — 164,075 6,190 170,265 Government agency bonds — 192,519 — 192,519 Municipal bonds — 10,717 — 10,717 Auction rate securities — — 9,825 9,825 Derivative assets — 8,928 — 8,928 Total assets measured at fair value $ 292,999 $ 2,042,109 $ 16,015 $ 2,351,123 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable Schedule | Accounts receivable consists of the following (amounts in thousands): June 30, 2015 March 31, 2015 Trade accounts receivable $ 276,087 $ 269,844 Other 3,535 6,714 279,622 276,558 Less allowance for doubtful accounts 2,589 2,621 $ 277,033 $ 273,937 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Components of inventories | The components of inventories consist of the following (amounts in thousands): June 30, 2015 March 31, 2015 Raw materials $ 14,066 $ 13,263 Work in process 216,390 197,565 Finished goods 73,234 68,628 $ 303,690 $ 279,456 |
Property, Plant and Equipment39
Property, Plant and Equipment (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of the following (amounts in thousands): June 30, 2015 March 31, 2015 Land $ 55,624 $ 55,624 Building and building improvements 437,751 434,403 Machinery and equipment 1,598,481 1,576,074 Projects in process 86,093 76,315 2,177,949 2,142,416 Less accumulated depreciation and amortization 1,582,702 1,560,844 $ 595,247 $ 581,572 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Schedule of changes in the components of noncontrolling interest | The following table presents the changes in the components of noncontrolling interests for the three months ended June 30, 2015 (amounts in thousands): Noncontrolling Interests Balance at March 31, 2015 $ 16,372 Net loss attributable to noncontrolling interests (207 ) Purchase of additional interests (16,165 ) Balance at June 30, 2015 $ — |
Schedule of changes in the Company's ownership interest in ISSC | The following table presents the effect of changes in the Company's ownership interest in ISSC on the Company's stockholders' equity for the three months ended June 30, 2015 (amounts in thousands): Three Months Ended June 30, 2015 Net income attributable to Microchip Technology stockholders $ 130,667 Decrease in paid-in capital for purchase of additional interests (1,610 ) Transfers from noncontrolling interest (1,610 ) Change from net income attributable to Microchip Technology stockholders and transfers from noncontrolling interest $ 129,057 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of location and fair value amount of derivative instruments | The following table summarizes the location and fair value amounts of derivative instruments reported on the condensed consolidated balance sheets (amounts in thousands): June 30, 2015 March 31, 2015 Derivatives designated as hedging instruments Other long-term liabilities Other assets Other long-term liabilities Other assets Interest rate contracts $ 6,042 $ — $ — $ 8,928 |
Summary of location and amount of the gain (loss) | The following table summarizes the location and amount of the gain or loss on the hedged item attributable to the changes in the LIBOR swap rate and the offsetting gain or loss on the related interest rate swap agreements for the three months ended June 30, 2015 . The difference represents hedge ineffectiveness (amounts in thousands): Income Statement Classification Gain (Loss) on Senior Subordinated Convertible Debentures Gain (Loss) on Interest Rate Swap Other Income (Expense) $ 14,931 $ (14,971 ) |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in the components of accumulated other comprehensive income (AOCI) for the three months ended June 30, 2015 (amounts in thousands): Unrealized holding gains (losses) available-for-sale securities Minimum pension liability Foreign Currency Total Balance at March 31, 2015 $ 14,537 $ 13 $ (3,474 ) $ 11,076 Other comprehensive (loss) income before reclassifications (2,012 ) — — (2,012 ) Amounts reclassified from accumulated other comprehensive (loss) income (13,959 ) — — (13,959 ) Net other comprehensive (loss) income (15,971 ) — — (15,971 ) Purchase of shares from noncontrolling interest — — (276 ) (276 ) Balance at June 30, 2015 $ (1,434 ) $ 13 $ (3,750 ) $ (5,171 ) |
Reclassification out of Accumulated Other Comprehensive Income | The table below details where reclassifications of realized transactions out of AOCI are recorded on the condensed consolidated statements of income (amounts in thousands): Three Months Ended June 30, Description of AOCI Component 2015 2014 Related Statement of Income Line Unrealized gains on available-for-sale securities $ 13,959 $ 34 Other income Taxes — (12 ) Provision for income taxes Reclassification of realized transactions, net of taxes $ 13,959 $ 22 Net income |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation expense | The following table presents the details of the Company's share-based compensation expense (amounts in thousands): Three Months Ended June 30, 2015 2014 Cost of sales $ 1,657 (1) $ 2,055 (1) Research and development 7,098 6,309 Selling, general and administrative 5,357 4,957 Pre-tax effect of share-based compensation 14,112 13,321 Income tax benefit 3,532 1,420 Net income effect of share-based compensation $ 10,580 $ 11,901 |
Net income per common share (Ta
Net income per common share (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted net income per common share attributable to Microchip Technology stockholders (in thousands, except per share amounts): Three Months Ended June 30, 2015 2014 Net income attributable to Microchip Technology $ 130,667 $ 89,909 Weighted average common shares outstanding 202,232 200,187 Dilutive effect of stock options and RSUs 3,392 3,792 Dilutive effect of 2037 junior subordinated convertible debentures 11,143 20,548 Weighted average common and potential common shares outstanding 216,767 224,527 Basic net income per common share attributable to Microchip Technology stockholders $ 0.65 $ 0.45 Diluted net income per common share attributable to Microchip Technology stockholders $ 0.60 $ 0.40 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Jun. 30, 2015 |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Percentage Of Outstanding Stock Of All Subsidiaries Owned | 100.00% |
Business Acquisitions (Narrativ
Business Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jul. 17, 2014 | |
Business Acquisition [Line Items] | |||
Amount of cash paid, net of cash and short-term investments acquired | $ 0 | $ 375,365 | |
ISSC Technologies Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Ownership interest acquired in ISSC tender offer | 83.50% |
Business Acquisitions (Schedule
Business Acquisitions (Schedule of Purchase Price Allocation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 571,660 | $ 571,271 |
ISSC Technologies Corporation [Member] | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | 15,120 | 15,120 |
Short-term investments | 27,063 | 27,063 |
Accounts receivable, net | 8,792 | 8,792 |
Inventories | 16,542 | 16,542 |
Prepaid expenses and other current assets | 2,501 | 2,501 |
Property, plant and equipment, net | 2,637 | 2,637 |
Goodwill | 154,788 | 154,399 |
Purchased intangible assets | 147,800 | 147,800 |
Other assets | 1,370 | 1,370 |
Total assets acquired | 376,613 | 376,224 |
Accounts payable | (9,860) | (9,860) |
Other current liabilities | (16,535) | (16,535) |
Long-term income tax payable | (4,791) | (4,402) |
Deferred tax liability | (25,126) | (25,126) |
Other long-term liabilities | (245) | (245) |
Total liabilities assumed | (56,557) | (56,168) |
Net assets acquired | 320,056 | 320,056 |
Less: noncontrolling interest | (52,467) | (52,467) |
Net assets acquired | 267,589 | 267,589 |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||
Goodwill | 389 | |
Total assets acquired | 389 | |
Long-term income tax payable | (389) | |
Total liabilities assumed | $ (389) | |
Supertex Inc. | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | 14,790 | |
Short-term investments | 140,984 | |
Accounts receivable, net | 7,047 | |
Inventories | 27,630 | |
Prepaid expenses | 1,493 | |
Deferred tax assets | 2,456 | |
Other current assets | 12,625 | |
Property, plant and equipment, net | 15,679 | |
Goodwill | 143,160 | |
Purchased intangible assets | 89,600 | |
Other assets | 325 | |
Total assets acquired | 455,789 | |
Accounts payable | (8,481) | |
Other current liabilities | (19,224) | |
Long-term income tax payable | (3,796) | |
Deferred tax liability | (32,511) | |
Total liabilities assumed | (64,012) | |
Net assets acquired | $ 391,777 |
Business Acquisitions (Schedu48
Business Acquisitions (Schedule of Purchased Intangible Assets) (Details) - USD ($) $ in Thousands | Jul. 17, 2014 | Apr. 01, 2014 |
ISSC Technologies Corporation [Member] | ||
Business Acquisition [Line Items] | ||
Purchased Intangible Assets | $ 147,800 | |
ISSC Technologies Corporation [Member] | Core/developed technology | ||
Business Acquisition [Line Items] | ||
Useful Life | 10 years | |
Purchased Intangible Assets | $ 68,900 | |
ISSC Technologies Corporation [Member] | In-process technology | ||
Business Acquisition [Line Items] | ||
Useful Life | 10 years | |
Purchased Intangible Assets | $ 27,200 | |
ISSC Technologies Corporation [Member] | Customer-related | ||
Business Acquisition [Line Items] | ||
Useful Life | 3 years | |
Purchased Intangible Assets | $ 51,100 | |
ISSC Technologies Corporation [Member] | Backlog | ||
Business Acquisition [Line Items] | ||
Useful Life | 1 year | |
Purchased Intangible Assets | $ 600 | |
Supertex Inc. | ||
Business Acquisition [Line Items] | ||
Purchased Intangible Assets | $ 89,600 | |
Supertex Inc. | Core/developed technology | ||
Business Acquisition [Line Items] | ||
Useful Life | 10 years | |
Purchased Intangible Assets | $ 68,900 | |
Supertex Inc. | In-process technology | ||
Business Acquisition [Line Items] | ||
Useful Life | 10 years | |
Purchased Intangible Assets | $ 1,900 | |
Supertex Inc. | Customer-related | ||
Business Acquisition [Line Items] | ||
Useful Life | 2 years | |
Purchased Intangible Assets | $ 17,700 | |
Supertex Inc. | Backlog | ||
Business Acquisition [Line Items] | ||
Useful Life | 1 year | |
Purchased Intangible Assets | $ 1,100 |
Special Charges (Details)
Special Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Unusual or Infrequent Item [Member] | ||
Unusual or Infrequent Item [Line Items] | ||
Other Nonrecurring Expense | $ 1.6 | $ 0.3 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Segment reporting information [Line Items] | ||
Net sales | $ 533,952 | $ 528,876 |
Gross Profit | 309,017 | 306,519 |
Semiconductor products [Member] | ||
Segment reporting information [Line Items] | ||
Net sales | 510,689 | 508,439 |
Gross Profit | 285,754 | 286,082 |
Technology licensing [Member] | ||
Segment reporting information [Line Items] | ||
Net sales | 23,263 | 20,437 |
Gross Profit | $ 23,263 | $ 20,437 |
Investments Summary of Availabl
Investments Summary of Available for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Mar. 31, 2015 | |
Summary of available-for-sale securities [Line Items] | ||
Available-for-sale, adjusted cost | $ 1,868,461 | $ 1,719,843 |
Available-for-sale, gross unrealized gains | 1,652 | 15,011 |
Available-for-sale, gross unrealized losses | (3,086) | (474) |
Available-for-sale, estimated fair value | 1,867,027 | 1,734,380 |
Government agency bonds [Member] | ||
Summary of available-for-sale securities [Line Items] | ||
Available-for-sale, adjusted cost | 799,662 | 741,780 |
Available-for-sale, gross unrealized gains | 494 | 676 |
Available-for-sale, gross unrealized losses | (1,150) | (200) |
Available-for-sale, estimated fair value | 799,006 | 742,256 |
Municipal bonds [Member] | ||
Summary of available-for-sale securities [Line Items] | ||
Available-for-sale, adjusted cost | 41,142 | 41,552 |
Available-for-sale, gross unrealized gains | 9 | 155 |
Available-for-sale, gross unrealized losses | (765) | (9) |
Available-for-sale, estimated fair value | 40,386 | 41,698 |
Auction rate securities [Member] | ||
Summary of available-for-sale securities [Line Items] | ||
Available-for-sale, adjusted cost | 9,825 | 9,825 |
Available-for-sale, gross unrealized gains | 0 | 0 |
Available-for-sale, gross unrealized losses | 0 | 0 |
Available-for-sale, estimated fair value | 9,825 | 9,825 |
Time deposits [Member] | ||
Summary of available-for-sale securities [Line Items] | ||
Available-for-sale, adjusted cost | 506 | |
Available-for-sale, gross unrealized gains | 0 | |
Available-for-sale, gross unrealized losses | 0 | |
Available-for-sale, estimated fair value | 506 | |
Corporate bonds and debt [Member] | ||
Summary of available-for-sale securities [Line Items] | ||
Available-for-sale, adjusted cost | 1,017,832 | 924,818 |
Available-for-sale, gross unrealized gains | 1,149 | 2,376 |
Available-for-sale, gross unrealized losses | (1,171) | (265) |
Available-for-sale, estimated fair value | $ 1,017,810 | 926,929 |
Marketable equity securities [Member] | ||
Summary of available-for-sale securities [Line Items] | ||
Available-for-sale, adjusted cost | 1,362 | |
Available-for-sale, gross unrealized gains | 11,804 | |
Available-for-sale, gross unrealized losses | 0 | |
Available-for-sale, estimated fair value | $ 13,166 |
Investments AFS (Details)
Investments AFS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Investments [Abstract] | |||
Amount of short-term investments | $ 969,003 | $ 1,351,054 | |
Amount of long-term investments | 898,024 | $ 383,326 | |
Carrying value of available-for-sale investment previously classified as non-marketable cost-method investment | 3,600 | ||
Proceeds for sale of available-for-sale securities | 89,200 | $ 144,000 | |
Realized gain on available-for-sale investments | 13,959 | $ 0 | |
Amount of corporate debt securities with no contractual maturity excluded from estimated fair value of available-for-sale securities | $ 6,200 |
Investments Investments AFS, Co
Investments Investments AFS, Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of available-for-sale securities in a continuous unrealized loss position, less than twelve months | $ 904,461 | $ 339,361 |
Accumulated loss, available-for-sale securities in a continuous unrealized loss position, less than twelve months | (2,914) | (370) |
Fair value of available-for-sale securities in a continuous unrealized loss position, greater than twelve months | 42,970 | 48,963 |
Accumulated loss, available-for-sale securities in a continuous unrealized loss position, greater than twelve months | (172) | (104) |
Fair value of available-for-sale securities in a continuous unrealized loss position | 947,431 | 388,324 |
Accumulated loss, available-for-sale securities in a continuous unrealized loss position | (3,086) | (474) |
Government agency bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of available-for-sale securities in a continuous unrealized loss position, less than twelve months | 442,847 | 162,948 |
Accumulated loss, available-for-sale securities in a continuous unrealized loss position, less than twelve months | (1,061) | (142) |
Fair value of available-for-sale securities in a continuous unrealized loss position, greater than twelve months | 14,911 | 29,942 |
Accumulated loss, available-for-sale securities in a continuous unrealized loss position, greater than twelve months | (89) | (58) |
Fair value of available-for-sale securities in a continuous unrealized loss position | 457,758 | 192,890 |
Accumulated loss, available-for-sale securities in a continuous unrealized loss position | (1,150) | (200) |
Municipal bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of available-for-sale securities in a continuous unrealized loss position, less than twelve months | 37,104 | 13,318 |
Accumulated loss, available-for-sale securities in a continuous unrealized loss position, less than twelve months | (765) | (9) |
Fair value of available-for-sale securities in a continuous unrealized loss position, greater than twelve months | 0 | 0 |
Accumulated loss, available-for-sale securities in a continuous unrealized loss position, greater than twelve months | 0 | 0 |
Fair value of available-for-sale securities in a continuous unrealized loss position | 37,104 | 13,318 |
Accumulated loss, available-for-sale securities in a continuous unrealized loss position | (765) | (9) |
Corporate bonds and debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value of available-for-sale securities in a continuous unrealized loss position, less than twelve months | 424,510 | 163,095 |
Accumulated loss, available-for-sale securities in a continuous unrealized loss position, less than twelve months | (1,088) | (219) |
Fair value of available-for-sale securities in a continuous unrealized loss position, greater than twelve months | 28,059 | 19,021 |
Accumulated loss, available-for-sale securities in a continuous unrealized loss position, greater than twelve months | (83) | (46) |
Fair value of available-for-sale securities in a continuous unrealized loss position | 452,569 | 182,116 |
Accumulated loss, available-for-sale securities in a continuous unrealized loss position | $ (1,171) | $ (265) |
Investments AFS, Debt Maturitie
Investments AFS, Debt Maturities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Mar. 31, 2015 | |
Schedule of available-for-sale securities, debt maturities [Line Items] | ||
Available-for-sale, adjusted cost | $ 1,868,461 | $ 1,719,843 |
Available-for-sale, gross unrealized gains | 1,652 | 15,011 |
Available-for-sale, gross unrealized losses | (3,086) | (474) |
Available-for-sale, estimated fair value | 1,867,027 | $ 1,734,380 |
Due in one year or less [Member] | ||
Schedule of available-for-sale securities, debt maturities [Line Items] | ||
Available-for-sale, adjusted cost | 269,962 | |
Available-for-sale, gross unrealized gains | 295 | |
Available-for-sale, gross unrealized losses | (78) | |
Available-for-sale, estimated fair value | 270,179 | |
Due after one year and through five years [Member] | ||
Schedule of available-for-sale securities, debt maturities [Line Items] | ||
Available-for-sale, adjusted cost | 1,485,199 | |
Available-for-sale, gross unrealized gains | 1,357 | |
Available-for-sale, gross unrealized losses | (2,190) | |
Available-for-sale, estimated fair value | 1,484,366 | |
Due after five years and through ten years [Member] | ||
Schedule of available-for-sale securities, debt maturities [Line Items] | ||
Available-for-sale, adjusted cost | 97,285 | |
Available-for-sale, gross unrealized gains | 0 | |
Available-for-sale, gross unrealized losses | (818) | |
Available-for-sale, estimated fair value | 96,467 | |
Due after ten years [Member] | ||
Schedule of available-for-sale securities, debt maturities [Line Items] | ||
Available-for-sale, adjusted cost | 9,825 | |
Available-for-sale, gross unrealized gains | 0 | |
Available-for-sale, gross unrealized losses | 0 | |
Available-for-sale, estimated fair value | 9,825 | |
Total Maturities [Member] | ||
Schedule of available-for-sale securities, debt maturities [Line Items] | ||
Available-for-sale, adjusted cost | 1,862,271 | |
Available-for-sale, gross unrealized gains | 1,652 | |
Available-for-sale, gross unrealized losses | (3,086) | |
Available-for-sale, estimated fair value | $ 1,860,837 |
Measured on Recurring Basis (De
Measured on Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | $ 1,867,027 | $ 1,734,380 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 2,430,574 | 2,351,123 |
Total liabilities measured at fair value | 6,042 | |
Marketable equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 13,166 | |
Corporate bonds and debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 1,017,810 | 926,929 |
Time deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 506 | |
Government agency bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 799,006 | 742,256 |
Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 40,386 | 41,698 |
Insurance sector auction rate securities [Member] | ||
Available-for-sale Securities, Other Disclosure Items [Abstract] | ||
Value of auction rate securities for which recent auctions were unsuccessful | 9,800 | |
Auction Rate Securities Par Value | $ 22,400 | |
Insurance sector auction rate securities [Member] | Minimum [Member] | ||
Available-for-sale Securities, Other Disclosure Items [Abstract] | ||
Discount rate | 2.00% | |
Liquidity risk premium (percentage) | 9.10% | |
Anticipated liquidity horizon | 7 years | |
Insurance sector auction rate securities [Member] | Maximum [Member] | ||
Available-for-sale Securities, Other Disclosure Items [Abstract] | ||
Discount rate | 2.50% | |
Liquidity risk premium (percentage) | 29.50% | |
Anticipated liquidity horizon | 10 years | |
Auction rate securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | $ 9,825 | 9,825 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 217,606 | 292,999 |
Total liabilities measured at fair value | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 2,196,953 | 2,042,109 |
Total liabilities measured at fair value | 6,042 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets measured at fair value | 16,015 | 16,015 |
Total liabilities measured at fair value | 0 | |
Cash Equivalents [Member] | Money market mutual funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash and cash equivalents | 217,606 | 279,833 |
Cash Equivalents [Member] | Demand and time deposits [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash and cash equivalents | 345,941 | 327,982 |
Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Money market mutual funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash and cash equivalents | 217,606 | 279,833 |
Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Demand and time deposits [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | Money market mutual funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | Demand and time deposits [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash and cash equivalents | 345,941 | 327,982 |
Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | Money market mutual funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | Demand and time deposits [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Short-term Investments [Member] | Marketable equity securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 13,166 | |
Short-term Investments [Member] | Corporate bonds and debt [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 611,880 | 756,664 |
Short-term Investments [Member] | Time deposits [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 506 | |
Short-term Investments [Member] | Government agency bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 351,247 | 549,737 |
Short-term Investments [Member] | Municipal bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 5,876 | 30,981 |
Short-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | Marketable equity securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 13,166 | |
Short-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate bonds and debt [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | 0 |
Short-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | Time deposits [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | |
Short-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | Government agency bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | 0 |
Short-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | 0 |
Short-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Marketable equity securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | |
Short-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate bonds and debt [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 611,880 | 756,664 |
Short-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Time deposits [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 506 | |
Short-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Government agency bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 351,247 | 549,737 |
Short-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 5,876 | 30,981 |
Short-term Investments [Member] | Fair Value, Inputs, Level 3 [Member] | Marketable equity securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | |
Short-term Investments [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate bonds and debt [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | 0 |
Short-term Investments [Member] | Fair Value, Inputs, Level 3 [Member] | Time deposits [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | |
Short-term Investments [Member] | Fair Value, Inputs, Level 3 [Member] | Government agency bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | 0 |
Short-term Investments [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | 0 |
Other Long-term Investments [Member] | Corporate bonds and debt [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 405,930 | 170,265 |
Other Long-term Investments [Member] | Government agency bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 447,760 | 192,519 |
Other Long-term Investments [Member] | Municipal bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 34,509 | 10,717 |
Other Long-term Investments [Member] | Auction rate securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 9,825 | 9,825 |
Other Long-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate bonds and debt [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | 0 |
Other Long-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | Government agency bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | 0 |
Other Long-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | 0 |
Other Long-term Investments [Member] | Fair Value, Inputs, Level 1 [Member] | Auction rate securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | 0 |
Other Long-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate bonds and debt [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 399,740 | 164,075 |
Other Long-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Government agency bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 447,760 | 192,519 |
Other Long-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 34,509 | 10,717 |
Other Long-term Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Auction rate securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | 0 |
Other Long-term Investments [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate bonds and debt [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 6,190 | 6,190 |
Other Long-term Investments [Member] | Fair Value, Inputs, Level 3 [Member] | Government agency bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | 0 |
Other Long-term Investments [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 0 | 0 |
Other Long-term Investments [Member] | Fair Value, Inputs, Level 3 [Member] | Auction rate securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Available-for-sale, estimated fair value | 9,825 | 9,825 |
Other Noncurrent Assets [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Asset, Fair Value | 8,928 | |
Other Noncurrent Assets [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Asset, Fair Value | 0 | |
Other Noncurrent Assets [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Asset, Fair Value | 8,928 | |
Other Noncurrent Assets [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Asset, Fair Value | $ 0 | |
Other Noncurrent Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liability, Fair Value | 6,042 | |
Other Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liability, Fair Value | 0 | |
Other Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liability, Fair Value | 6,042 | |
Other Noncurrent Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative Liability, Fair Value | $ 0 |
Fair Value of Financial Instr56
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 |
Senior Subordinated Convertible Debenture Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Fair value of convertible debentures based on observable market prices | $ 1,740 | $ 1,788 |
Junior Subordinated Convertible Debentures Due 2037 Member | ||
Debt Instrument [Line Items] | ||
Fair value of convertible debentures based on observable market prices | $ 1,087 | $ 1,124 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivable amounts | $ 279,622 | $ 276,558 |
Less allowance for doubtful accounts | 2,589 | 2,621 |
Accounts receivable, net | 277,033 | 273,937 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivable amounts | 276,087 | 269,844 |
Other Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivable amounts | $ 3,535 | $ 6,714 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 14,066 | $ 13,263 |
Work in process | 216,390 | 197,565 |
Finished goods | 73,234 | 68,628 |
Inventory, Net | $ 303,690 | $ 279,456 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - Land and Building [Member] - USD ($) $ in Millions | Jul. 22, 2015 | Jun. 30, 2015 |
Long Lived Assets Held-for-sale [Line Items] | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | $ 14.3 | |
Asset Held-for-Sale Estimated Selling Cost | $ 0.6 | |
Subsequent Event [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Proceeds from sale of asset held for sale | $ 14.3 |
Property, Plant and Equipment60
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment costs | $ 2,177,949 | $ 2,142,416 | |
Accumulated depreciation and amortization | 1,582,702 | 1,560,844 | |
Property, plant and equipment, net | 595,247 | 581,572 | |
Depreciation expense | 24,700 | $ 23,300 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment costs | 55,624 | 55,624 | |
Buildings and building improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment costs | 437,751 | 434,403 | |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment costs | 1,598,481 | 1,576,074 | |
Projects in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment costs | $ 86,093 | $ 76,315 |
Noncontrolling Interest Roll Fo
Noncontrolling Interest Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Balance at March 31, 2015 | $ 16,372 | |
Net loss attributable to noncontrolling interests | (207) | $ 0 |
Purchase of additional interests | (16,165) | |
Balance at June 30, 2015 | $ 0 |
Noncontrolling Interests Change
Noncontrolling Interests Change in Parent Ownership (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Net income attributable to Microchip Technology stockholders | $ 130,667 | $ 89,909 |
Parent [Member] | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Net income attributable to Microchip Technology stockholders | 130,667 | |
Decrease in paid-in capital for purchase of additional interests | (1,610) | |
Transfers from noncontrolling interest | (1,610) | |
Change from net income attributable to Microchip Technology stockholders and transfers from noncontrolling interest | $ 129,057 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate | (9.10%) | 16.00% |
Unrecognized Tax Benefits | $ 203 | |
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 4 |
1.625% Senior Subordinated Co64
1.625% Senior Subordinated Convertible Debentures (Details) | 3 Months Ended | ||
Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($) | |
Debt Instrument [Line Items] | |||
Amortization of debt discount on convertible debentures | $ 11,772,000 | $ 2,365,000 | |
Senior Subordinated Convertible Debenture Due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of senior subordinated convertible debentures | $ 1,725,000,000 | ||
Interest rate of senior subordinated convertible debentures | 1.625% | ||
Due date of senior subordinated convertible debentures | Feb. 15, 2025 | ||
Conversion rate, in shares, of senior subordinated convertible debt (in shares per $1,000) | 14.5654 | ||
Principal amount of senior subordinated convertible debentures used as conversion unit | $ 1,000 | ||
Convertible Debt Instrument Initial Conversion Price Per Share | $ / shares | $ 68.66 | ||
Debt Instrument, Convertible, Conversion Ratio | 14.7765 | ||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 67.67 | ||
Debt instrument, Convertible, Conversion Ratio Increase Option, Initial Ratio at Issuance | 7.2827 | ||
Debt Instrument, Convertible, Conversion Ratio Increase Option, Adjusted for Dividends | 7.3883 | ||
Debt Instrument, Convertible, Conversion Ratio Maximum Conversion Rate including increase Option | 20.3915 | ||
Debt Instrument, Convertible, Conversion Ratio Maximum Conversion Rate including increase option, adjusted for dividends paid | 20.6871 | ||
Proceeds from issuance of senior subordinated convertible debentures, net of issuance costs | $ 1,694,700,000 | ||
Senior subordinated convertible debenture debt issuance costs | 30,300,000 | ||
Debt portion of convertible debt issuance costs | 20,400,000 | ||
Equity portion of convertible debt issuance costs | 9,900,000 | ||
Carrying value of equity component of the senior subordinated convertible debentures that were bifurcated into a liability and equity component | $ 564,900,000 | 564,900,000 | |
Estimated fair value of the liability component of the senior subordinated convertible debentures as of the issuance date | 1,160,100,000 | ||
Debt discount of estimated fair value of liability component of senior subordinated convertible debentures at the issuance date | 564,900,000 | ||
Amount of unamortized debt discount of debentures | $ 548,800,000 | $ 559,300,000 | |
Remaining period, in years, over which unamortized debt discount will be recognized as non-cash interest expense (in years) | 9 years 7 months 15 days | ||
Amortization of debt discount on convertible debentures | $ 10,500,000 | ||
Recognized amount of interest expense related to coupon on senior subordinated convertible debentures | $ 7,000,000 | ||
Effective interest rate of senior convertible debentures | 6.10% |
2.125% Junior subordinated co65
2.125% Junior subordinated convertible debentures (Details) | 3 Months Ended | ||
Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2014USD ($) | Mar. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Amortization of Debt Discount (Premium) | $ 11,772,000 | $ 2,365,000 | |
Junior subordinated convertible debentures due 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of junior subordinated convertible debentures | $ 575,000,000 | ||
Interest rate of junior subordinated convertible debentures | 2.125% | ||
Due date of junior subordinated convertible debentures | Dec. 15, 2037 | ||
Conversion rate, in shares, of junior subordinated convertible debt (in shares per $1,000) | 29.2783 | ||
Principal amount of junior subordinated convertible debentures used as conversion unit | $ 1,000 | ||
Convertible Debt Instrument Initial Conversion Price Per Share | $ / shares | $ 34.16 | ||
Debt Instrument, Convertible, Conversion Ratio | 40.1485 | ||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 24.91 | ||
Debt Instrument, Convertible, If-converted Value in Excess of Principal | $ 519,900,000 | ||
Long-term Debt, Contingent Payment of Interest, Percentage | 0.50% | ||
Carrying value of equity component of the debentures that were bifurcated into a liability and equity component | $ 411,200,000 | $ 411,200,000 | |
Estimated fair value of liability component of debentures at issuance date | 163,800,000 | ||
Debt discount of estimated fair value of liability component of debentures | 411,200,000 | ||
Amount of unamortized debt discount of debentures | $ 382,400,000 | $ 383,700,000 | |
Remaining period, in years, over which unamortized debt discount will be recognized as non-cash interest expense (in years) | 22 years 6 months | ||
Amortization of Debt Discount (Premium) | $ 1,300,000 | 2,400,000 | |
Recognized amount of interest expense related to debentures | $ 3,100,000 | $ 6,100,000 | |
Effective interest rate of junior subordinated convertible debentures | 9.10% | ||
Minimum [Member] | Junior subordinated convertible debentures due 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Contingent Payment of Interest, Percentage | 0.25% | ||
Debt Instrument, Convertible, Trading Price | $ / shares | $ 400 | ||
Maximum [Member] | Junior subordinated convertible debentures due 2037 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Contingent Payment of Interest, Percentage | 0.50% | ||
Debt Instrument, Convertible, Trading Price | $ / shares | $ 1,500 |
Credit facility (Details)
Credit facility (Details) - USD ($) | 3 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Feb. 04, 2015 | Jun. 27, 2013 | |
Line of Credit Facility [Line Items] | |||||
Interest expense | $ 24,052,000 | $ 13,678,000 | |||
Credit Agreement Maturity June 27, 2018 [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit agreement maximum borrowing amount | $ 2,000,000,000 | ||||
February 2015 Amended Credit Facility with Maturity Dates of June 2018 and February 2020 [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit agreement maximum borrowing amount | $ 2,555,000,000 | ||||
Increase option amount | $ 300,000,000 | ||||
Interest expense | $ 3,600,000 | $ 5,000,000 | |||
Short-term Debt, Weighted Average Interest Rate | 1.44% | ||||
February 2015 Amended Credit Facility with Maturity Dates of June 2018 and February 2020 [Member] | Revolving credit facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Amount of credit agreement borrowings outstanding | $ 497,000,000 | $ 462,000,000 | |||
Period for leverage ratio to determine interest rate spread | preceding four fiscal quarters | ||||
Interest rate spread on overdue principal in event of default (percentage) | 2.00% | ||||
Interest rate spread on overdue amounts in event of default (percentage) | 2.00% | ||||
February 2015 Amended Credit Facility with Maturity Dates of June 2018 and February 2020 [Member] | Revolving credit facility [Member] | Debt Instrument Interest Rate Option1 [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Description of variable rate basis | the highest of JPMorgan Chase Bank, N.A.'s prime rate, the federal funds rate plus a margin equal to 0.50% and the adjusted LIBOR rate for a 1-month interest period plus a margin equal to 1.00% | ||||
February 2015 Amended Credit Facility with Maturity Dates of June 2018 and February 2020 [Member] | Revolving credit facility [Member] | Debt Instrument Interest Rate Option1 [Member] | Minimum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Spread on variable rate (percentage) | 0.25% | ||||
February 2015 Amended Credit Facility with Maturity Dates of June 2018 and February 2020 [Member] | Revolving credit facility [Member] | Debt Instrument Interest Rate Option1 [Member] | Maximum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Spread on variable rate (percentage) | 1.25% | ||||
February 2015 Amended Credit Facility with Maturity Dates of June 2018 and February 2020 [Member] | Revolving credit facility [Member] | Debt Instrument Interest Rate Option 2 [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Description of variable rate basis | adjusted LIBOR rate (based on one, two, three, or six-month interest periods) | ||||
February 2015 Amended Credit Facility with Maturity Dates of June 2018 and February 2020 [Member] | Revolving credit facility [Member] | Debt Instrument Interest Rate Option 2 [Member] | Minimum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Spread on variable rate (percentage) | 1.25% | ||||
February 2015 Amended Credit Facility with Maturity Dates of June 2018 and February 2020 [Member] | Revolving credit facility [Member] | Debt Instrument Interest Rate Option 2 [Member] | Maximum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Spread on variable rate (percentage) | 2.25% | ||||
February 2015 Amended Credit Facility with Maturity Dates of June 2018 and February 2020 [Member] | Foreign Line of Credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit agreement maximum borrowing amount | $ 125,000,000 | ||||
February 2015 Amended Credit Facility with Maturity Dates of June 2018 and February 2020 [Member] | Standby Letters of Credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit agreement maximum borrowing amount | 25,000,000 | ||||
February 2015 Amended Credit Facility with Maturity Dates of June 2018 and February 2020 [Member] | Line of Credit Facility Swingline Loan Sublimit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Credit agreement maximum borrowing amount | $ 25,000,000 |
Contingencies (Details)
Contingencies (Details) $ in Millions | Jun. 30, 2015USD ($) |
Indemnification Agreement [Member] | |
Loss Contingencies [Line Items] | |
Loss contingencies, estimate of possible loss | $ 139 |
Derivative Instruments Freestan
Derivative Instruments Freestanding Forward Contracts (Details) | 3 Months Ended |
Jun. 30, 2015 | |
Derivative [Line Items] | |
Percentage Of Company Sales Denominated In Us Dollars | 99.00% |
Derivative Instruments Fair Val
Derivative Instruments Fair Value (Details) - Interest Rate Swap [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value | $ 0 | $ 8,928 |
Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value | $ 6,042 | $ 0 |
Derivative Instruments Gain (Lo
Derivative Instruments Gain (Loss) (Details) - Interest Rate Swap [Member] - Other Nonoperating Income (Expense) [Member] $ in Thousands | 3 Months Ended |
Jun. 30, 2015USD ($) | |
Derivative [Line Items] | |
Gain (Loss) on Senior Subordinated Convertible Debentures | $ 14,931 |
Gain (Loss) on Interest Rate Swap | $ (14,971) |
Comprehensive Income (Loss) (Sc
Comprehensive Income (Loss) (Schedule of Changes in the Components of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in the components of AOCI | ||
Balance at March 31, 2015 | $ 2,044,654 | |
Other comprehensive (loss) income attributable to Microchip Technology | (15,971) | $ 3,038 |
Balance at June 30, 2015 | 2,098,882 | |
AOCI Attributable to Parent [Member] | ||
Changes in the components of AOCI | ||
Balance at March 31, 2015 | 11,076 | |
Other comprehensive (loss) income before reclassifications | (2,012) | |
Amounts reclassified from accumulated other comprehensive (loss) income | (13,959) | |
Other comprehensive (loss) income attributable to Microchip Technology | (15,971) | |
Purchase of shares from noncontrolling interest | (276) | |
Balance at June 30, 2015 | (5,171) | |
Unrealized holding gains (losses) on available-for-sale securities | ||
Changes in the components of AOCI | ||
Balance at March 31, 2015 | 14,537 | |
Other comprehensive (loss) income before reclassifications | (2,012) | |
Amounts reclassified from accumulated other comprehensive (loss) income | (13,959) | |
Other comprehensive (loss) income attributable to Microchip Technology | (15,971) | |
Balance at June 30, 2015 | (1,434) | |
Minimum pension liability | ||
Changes in the components of AOCI | ||
Balance at March 31, 2015 | 13 | |
Other comprehensive (loss) income before reclassifications | 0 | |
Amounts reclassified from accumulated other comprehensive (loss) income | 0 | |
Other comprehensive (loss) income attributable to Microchip Technology | 0 | |
Balance at June 30, 2015 | 13 | |
Foreign Currency | ||
Changes in the components of AOCI | ||
Balance at March 31, 2015 | (3,474) | |
Other comprehensive (loss) income before reclassifications | 0 | |
Amounts reclassified from accumulated other comprehensive (loss) income | 0 | |
Other comprehensive (loss) income attributable to Microchip Technology | 0 | |
Purchase of shares from noncontrolling interest | (276) | |
Balance at June 30, 2015 | $ (3,750) |
Comprehensive Income (Loss) (72
Comprehensive Income (Loss) (Schedule of Reclassifications of Recognized Transactions out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other Nonoperating Income (Expense) | $ 16,947 | $ 13 |
Income Tax Expense | 10,895 | (17,082) |
Net income attributable to Microchip Technology | 130,667 | 89,909 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Other Nonoperating Income (Expense) | 13,959 | 34 |
Income Tax Expense | 0 | (12) |
Net income attributable to Microchip Technology | $ 13,959 | $ 22 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Stock-based compensation expense [Line Items] | |||
Allocated Share-based Compensation Expense | $ 14,112 | $ 13,321 | |
Income tax benefit | 3,532 | 1,420 | |
Net income effect of share-based compensation | 10,580 | 11,901 | |
Inventory [Member] | |||
Stock-based compensation expense [Line Items] | |||
Amount of share-based compensation expense capitalized to inventory | 1,800 | 1,700 | |
Cost of Sales [Member] | |||
Stock-based compensation expense [Line Items] | |||
Allocated Share-based Compensation Expense | [1] | 1,657 | 2,055 |
Research and development [Member] | |||
Stock-based compensation expense [Line Items] | |||
Allocated Share-based Compensation Expense | 7,098 | 6,309 | |
Selling, General and Administrative Expenses [Member] | |||
Stock-based compensation expense [Line Items] | |||
Allocated Share-based Compensation Expense | $ 5,357 | $ 4,957 | |
[1] | During the three months ended June 30, 2015, $1.8 million of share-based compensation expense was capitalized to inventory and $1.7 million of previously capitalized share-based compensation expense in inventory was sold. During the three months ended June 30, 2014, $1.7 million of share-based compensation expense was capitalized to inventory and $2.1 million of previously capitalized share-based compensation expense in inventory was sold. |
Net income per common share (De
Net income per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income attributable to Microchip Technology | $ 130,667 | $ 89,909 |
Weighted average common shares outstanding | 202,232,000 | 200,187,000 |
Dilutive effect of stock options and RSUs | 3,392,000 | 3,792,000 |
Dilutive effect of 2037 junior subordinated convertible debentures | 11,142,772 | 20,547,832 |
Weighted average common and potential common shares outstanding | 216,767,000 | 224,527,000 |
Basic net income per common share attributable to Microchip Technology stockholders | $ 0.65 | $ 0.45 |
Diluted net income per common share attributable to Microchip Technology stockholders | $ 0.60 | $ 0.40 |
Number of antidilutive option shares (in shares) | 0 | 0 |
Junior Subordinated Convertible Debentures Due 2037 Member | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Weighted average conversion price per share used in calculating dilutive effect of convertible debt (amount per share) | $ 25.01 | $ 25.75 |
Senior Subordinated Convertible Debenture Due 2025 [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Weighted average conversion price per share used in calculating dilutive effect of convertible debt (amount per share) | $ 67.95 |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 03, 2015 | Jun. 04, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Dividends [Abstract] | ||||
Dividend per share paid during period | $ 0.3575 | |||
Cash Dividend | $ 72.3 | |||
Subsequent Event [Line Items] | ||||
Dividends declared per common share | $ 0.3575 | $ 0.3555 | ||
Total amount of expected dividend payment | $ 72.3 | |||
Subsequent Event [Member] | ||||
Dividends [Abstract] | ||||
Cash Dividend | $ 75.7 | |||
Subsequent Event [Line Items] | ||||
Dividends declared per common share | $ 0.358 | |||
Total amount of expected dividend payment | $ 75.7 |
Subsequent Event (Details)
Subsequent Event (Details) - Aug. 03, 2015 - Subsequent Event [Member] - Micrel Incorporated [Member] - USD ($) $ / shares in Units, $ in Millions | Total |
Subsequent Event [Line Items] | |
Acquisition price per share | $ 14 |
Cash paid for Micrel acquisition | $ 430 |
Shares issued in Micrel acquisition | 8,626,795 |
Business combination share price price used in stock conversion ratio | $ 42.888 |