XML 55 R13.htm IDEA: XBRL DOCUMENT
v3.20.1

Special Charges and Other, Net | 12 Months Ended
--- | ---
Mar. 31, 2020
Other Income and Expenses [Abstract] |
Special Charges and Other, Net | Special Charges and Other, Net The following table summarizes activity included in the "special charges and other, net" caption on the Company's consolidated statements of income (in millions):
| Year Ended March 31,
| 2020 |  | 2019 |  | 2018
Restructuring |  |  |  |  |
Employee separation costs | $ | 6.0 |  |  | $ | 65.3 |  |  | $ | 1.2 |
Gain on sale of assets | (1.5 | ) |  | — |  |  | (4.4 | )
Impairment charges | 3.2 |  |  | 3.6 |  |  | — |
Contract exit costs | 13.4 |  |  | (4.7 | ) |  | 0.7 |
Other | 9.9 |  |  | (0.3 | ) |  | — |
Legal contingencies | 15.7 |  |  | (30.2 | ) |  | — |
Non-restructuring contract exit costs and other | — |  |  | — |  |  | 20.0 |
Total | $ | 46.7 |  |  | $ | 33.7 |  |  | $ | 17.5 |
The Company continuously evaluates its existing operations in an attempt to identify and realize cost savings opportunities and operational efficiencies. This same approach is applied to businesses that are acquired by the Company and often the operating models of acquired companies are not as efficient as the Company's operating model which enables the Company to realize significant savings and efficiencies. As a result, following an acquisition, the Company will from time to time incur restructuring expenses; however, the Company is often not able to estimate the timing or amount of such costs in advance of the period in which they occur. The primary reason for this is that the Company regularly reviews and evaluates each position, contract and expense against the Company's strategic objectives, long-term operating targets and other operational priorities. Decisions related to restructuring activities are made on a "rolling basis" during the course of the integration of an acquisition whereby department managers, executives and other leaders work together to evaluate each of these expenses and make recommendations. As a result of this approach, at the time of an acquisition, the Company is not able to estimate the future amount of expected employee separation or exit costs that it will incur in connection with its restructuring activities. During the fiscal year ended March 31, 2020, the Company incurred costs of $18.0 million associated with restructuring certain of its wafer fabrication operations primarily consisting of $8.2 million in contract exit costs, $6.6 million in other relocation costs and $2.5 million in asset impairment charges. The Company estimates that it will incur less than $10.0 million within the next year for the remaining associated costs of these restructuring activities. The Company's other restructuring expenses during the fiscal year ended March 31, 2020 and March 31, 2019 were primarily related to the Company's most recent business acquisitions, and resulted from workforce, property and other operating expense rationalizations as well as combining product roadmaps and manufacturing operations. These expenses were for employee separation costs and intangible asset impairment charges. The impairment charges in the fiscal year ended March 31, 2019 were primarily recognized as a result of writing off intangible assets purchased from Microsemi prior to the close of the acquisition and other intangible assets that were impaired as a result of changes in the combined product roadmaps after the acquisition that affected the use and life of the assets. Additional costs will be incurred in the future as additional synergies or operational efficiencies are identified in connection with the Microsemi transaction or other previous acquisitions. The Company is not able to estimate the amount of other such future expenses at this time. During the fiscal year ended March 31, 2020, the Company incurred $15.7 million of net charges related to legal settlements, for which the majority of the cash settlement occurred early in the fiscal year ended March 31, 2021. During the fiscal year ended March 31, 2018, the Company incurred expenses including non-restructuring contract exit costs of $19.5 million for fees associated with transitioning from the public utility provider in Oregon to a lower cost direct access provider. The fee is paid monthly and will depend on the amount of actual energy consumed by the Company's wafer fabrication facility in Oregon over the subsequent five-year period. In connection with the transition to a direct access provider, the Company signed a ten-year supply agreement to purchase monthly amounts of energy that are less than the current average usage and priced on a per mega watt hour published index rate in effect at those future dates. Also during the fiscal year ended March 31, 2018, the Company incurred $1.2 million of employee separation costs in connection with the acquisition of Atmel and completed the sale of an asset it acquired as part of its acquisition of Micrel for proceeds of $10.0 million resulting in a gain of $4.4 million. All of the Company's restructuring activities occurred in its semiconductor products segment. The Company incurred $111.6 million in costs since the start of the fiscal year ended March 31, 2017 in connection with employee separation activities, of which $6.0 million, $65.3 million and $1.2 million were incurred during the fiscal years ended March 31, 2020, 2019 and 2018, respectively. The Company could incur future expenses as additional synergies or operational efficiencies are identified. Beyond what is already accrued, the Company is not able to estimate future expenses, if any, to be incurred in employee separation costs. The Company has incurred $53.5 million in costs in connection with contract exit activities since the start of the fiscal year ended March 31, 2017 which includes expense of $13.4 million and $0.7 million for the fiscal years ended March 31, 2020 and March 31, 2018, respectively, compared to income of $4.7 million for the fiscal year ended March 31, 2019. The following is a roll forward of accrued restructuring and other exit cost charges for the fiscal years ended March 31, 2020 and March 31, 2019 (in millions):
| Restructuring |  | Non-Restructuring |  |
| Employee Separation Costs |  | Exit Costs |  | Exit Costs |  | Total
Balance at March 31, 2018 | $ | 0.8 |  |  | $ | 27.3 |  |  | $ | 19.1 |  |  | $ | 47.2 |
Additions due to Microsemi acquisition | 10.4 |  |  | 9.0 |  |  | — |  |  | 19.4 |
Charges | 48.9 |  |  | (4.7 | ) |  | — |  |  | 44.2 |
Payments | (47.1 | ) |  | (13.1 | ) |  | (4.1 | ) |  | (64.3 | )
Non-cash - Other | — |  |  | 0.7 |  |  | 0.7 |  |  | 1.4 |
Changes in foreign exchange rates | (0.1 | ) |  | — |  |  | — |  |  | (0.1 | )
Balance at March 31, 2019 | $ | 12.9 |  |  | $ | 19.2 |  |  | $ | 15.7 |  |  | $ | 47.8 |
Charges | 6.0 |  |  | 13.4 |  |  | — |  |  | 19.4 |
Payments | (11.6 | ) |  | (5.2 | ) |  | (4.3 | ) |  | (21.1 | )
Non-cash - Other | (1.2 | ) |  | (8.7 | ) |  | 0.6 |  |  | (9.3 | )
Effect of adoption of ASC 842 | — |  |  | (12.5 | ) |  | — |  |  | (12.5 | )
Balance at March 31, 2020 | $ | 6.1 |  |  | $ | 6.2 |  |  | $ | 12.0 |  |  | $ | 24.3 |
Current |  |  |  |  |  |  | $ | 7.9 |
Non-current |  |  |  |  |  |  | 16.4 |
Total |  |  |  |  |  |  | $ | 24.3 |
The liability for restructuring and other exit costs of $24.3 million is included in accrued liabilities and other long-term liabilities, on the Company's consolidated balance sheets as of March 31, 2020.

X
- Definition Description of infrequent, nonrecurring charges charged against earnings during the period presented. + References No definition available. + Details
Name: | mchp_SpecialChargesTextBlock
Namespace Prefix: | mchp_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_OtherIncomeAndExpensesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration