XML 28 R11.htm IDEA: XBRL DOCUMENT v3.25.1
Geographic and Segment Information
 12 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Geographic and Segment Information Geographic and Segment Information
 
The Company's business is made up of two operating segments, semiconductor products and technology licensing. These segments represent management's view of the business for which separate financial information is available and evaluated regularly by the Chief Operating Decision Maker (CODM), which is the Company’s Chief Executive Officer.

In the semiconductor products segment, the Company designs, develops, manufactures and markets mixed-signal microcontrollers, development tools and analog, interface, mixed-signal, timing, wired and wireless connectivity devices, and memory products. Under the leadership of the CODM, the Company is structured and organized around standardized roles and responsibilities based on product groups and functional activities. The Company's product groups are responsible for product research, design and development. The Company's functional activities include sales, marketing, manufacturing, information technology, human resources, legal and finance. The Company's product groups have similar products, production processes, types of customers and methods for distribution. In addition, the tools and technologies used in the design and manufacture of the Company's products are shared among the various product groups. The Company's product group leaders, under the direction of the CODM, define the product roadmaps and team with sales personnel to achieve design wins and revenue and other performance targets. Product group leaders also interact with manufacturing and operational personnel who are responsible for the production, prioritization and planning of the Company's manufacturing capabilities to help ensure the efficiency of the Company's operations and fulfillment of customer requirements.

The technology licensing segment includes sales and licensing of the Company's intellectual property.

The CODM uses segment gross profit for evaluating each segment's performance and allocating resources. 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 information that is regularly provided to the Company's CODM includes net sales, cost of sales and gross profit for each segment. The following tables include net sales, cost of sales and gross profit for each segment (in millions):

Fiscal Year Ended March 31, 2025
Semiconductor productsTechnology licensingTotal
Net sales$4,270.5 $131.1 $4,401.6 
Cost of sales1,933.7 — 1,933.7 
Gross profit$2,336.8 $131.1 $2,467.9 
Fiscal Year Ended March 31, 2024
Semiconductor productsTechnology licensingTotal
Net sales$7,531.1 $103.3 $7,634.4 
Cost of sales2,638.7 — 2,638.7 
Gross profit$4,892.4 $103.3 $4,995.7 

Fiscal Year Ended March 31, 2023
Semiconductor productsTechnology licensingTotal
Net sales$8,277.7 $161.0 $8,438.7 
Cost of sales2,740.8 — 2,740.8 
Gross profit$5,536.9 $161.0 $5,697.9 

The Company sells its products to distributors and OEMs in a broad range of market segments, performs on-going credit evaluations of its customers and, as deemed necessary, may require collateral, primarily letters of credit.  The Company's operations outside the U.S. consist of product assembly and final test facilities in Thailand, and sales and support centers and design centers in certain foreign countries.  Domestic operations are responsible for the design, development and wafer fabrication of products, as well as the coordination of production planning and shipping to meet worldwide customer commitments.  The Company's Thailand assembly and test facility is reimbursed in relation to value added with respect to assembly and test operations and other functions performed, and certain foreign sales offices receive compensation for sales within their territory.  Accordingly, for financial statement purposes, it is not meaningful to segregate sales or operating profits for the assembly and test and foreign sales office operations.  Identifiable long-lived assets (consisting of property, plant and equipment net of accumulated depreciation and ROU assets) by geographic area are as follows (in millions):
March 31,
20252024
United States$869.3 $826.8 
Thailand123.7 152.2 
Various other countries337.0 371.9 
Total long-lived assets$1,330.0 $1,350.9 

Sales to unaffiliated customers located outside the U.S., primarily in Asia and Europe, aggregated approximately 75%, 75% and 78% of consolidated net sales for fiscal 2025, fiscal 2024 and fiscal 2023, respectively. Sales to customers in Europe represented approximately 20%, 24% and 21% of consolidated net sales for fiscal 2025, fiscal 2024 and fiscal 2023, respectively.  Sales into Germany represented approximately 10% of consolidated net sales for fiscal 2024. Sales to customers in Asia represented approximately 50%, 47% and 53% of consolidated net sales for fiscal 2025, fiscal 2024 and fiscal 2023, respectively.  Within Asia, sales into China represented approximately 17%, 18%, 21% of consolidated net sales for fiscal 2025, fiscal 2024 and fiscal 2023, respectively. Sales into Taiwan represented approximately 16%, 12% and 14% of consolidated net sales for fiscal 2025, 2024 and 2023, respectively. Sales into any other individual foreign country did not exceed 10% of the Company's net sales for any of the three fiscal years presented.
 
With the exception of Arrow Electronics, the Company's largest distributor, which accounted for 10%, 12% and 11% of net sales in fiscal 2025, fiscal 2024, and fiscal 2023, respectively, no other distributor or direct customer accounted for more than 10% of net sales in either of fiscal 2025, fiscal 2024 or fiscal 2023.