Property, Plant and Equipment Disclosure
Asset Age Ratios (Summary)
Average Age
Estimated Total Useful Life
Estimated Age, Time Elapsed Since Purchase
Estimated Remaining Life

Microchip Technology Inc., balance sheet: property, plant and equipment

US$ in thousands

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Land	88,200)	83,200)	83,400)	83,400)	73,400)	73,447)
Building and building improvements	674,400)	659,700)	659,500)	647,600)	508,500)	499,668)
Machinery and equipment	2,471,600)	2,251,100)	2,123,100)	2,095,500)	1,943,900)	1,774,920)
Projects in process	182,400)	102,700)	100,100)	119,200)	118,300)	104,318)
Property, plant and equipment, gross	3,416,600)	3,096,700)	2,966,100)	2,945,700)	2,644,100)	2,452,353)
Accumulated depreciation and amortization	(2,448,700)	(2,242,000)	(2,090,000)	(1,949,000)	(1,876,200)	(1,769,015)
Property, plant and equipment, net	967,900)	854,700)	876,100)	996,700)	767,900)	683,338)

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

Download chart

Item	Description	The company
Property, plant and equipment, gross	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Microchip Technology Inc. property, plant and equipment, gross increased from 2020 to 2021 and from 2021 to 2022.
Property, plant and equipment, net	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Microchip Technology Inc. property, plant and equipment, net decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Microchip Technology Inc., asset age ratios

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Average age ratio	73.57%	74.40%	72.50%	68.09%	72.98%	74.36%
Estimated total useful life (years)	16	19	17	16	21	19
Estimated age, time elapsed since purchase (years)	12	14	12	11	15	14
Estimated remaining life (years)	4	5	5	5	6	5

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

Download chart

Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Microchip Technology Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Microchip Technology Inc. estimated total useful life of depreciable property, plant and equipment increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Microchip Technology Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Estimated remaining life		Microchip Technology Inc. estimated remaining life of depreciable property, plant and equipment increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Selected Financial Data (US$ in thousands)
Accumulated depreciation and amortization	2,448,700)	2,242,000)	2,090,000)	1,949,000)	1,876,200)	1,769,015)
Property, plant and equipment, gross	3,416,600)	3,096,700)	2,966,100)	2,945,700)	2,644,100)	2,452,353)
Land	88,200)	83,200)	83,400)	83,400)	73,400)	73,447)
Asset Age Ratio
Average age¹	73.57%	74.40%	72.50%	68.09%	72.98%	74.36%

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

2022 Calculations

¹ Average age = 100 × Accumulated depreciation and amortization ÷ (Property, plant and equipment, gross – Land)
= 100 × 2,448,700 ÷ (3,416,600 – 88,200) = 73.57%

Download chart

Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Microchip Technology Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Selected Financial Data (US$ in thousands)
Property, plant and equipment, gross	3,416,600)	3,096,700)	2,966,100)	2,945,700)	2,644,100)	2,452,353)
Land	88,200)	83,200)	83,400)	83,400)	73,400)	73,447)
Depreciation expense attributed to property, plant and equipment	209,100)	160,600)	168,900)	180,600)	123,700)	122,900)
Asset Age Ratio (Years)
Estimated total useful life¹	16	19	17	16	21	19

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

2022 Calculations

¹ Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation expense attributed to property, plant and equipment
= (3,416,600 – 88,200) ÷ 209,100 = 16

Download chart

Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Microchip Technology Inc. estimated total useful life of depreciable property, plant and equipment increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Selected Financial Data (US$ in thousands)
Accumulated depreciation and amortization	2,448,700)	2,242,000)	2,090,000)	1,949,000)	1,876,200)	1,769,015)
Depreciation expense attributed to property, plant and equipment	209,100)	160,600)	168,900)	180,600)	123,700)	122,900)
Asset Age Ratio (Years)
Time elapsed since purchase¹	12	14	12	11	15	14

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

2022 Calculations

¹ Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation expense attributed to property, plant and equipment
= 2,448,700 ÷ 209,100 = 12

Download chart

Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Microchip Technology Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Selected Financial Data (US$ in thousands)
Property, plant and equipment, net	967,900)	854,700)	876,100)	996,700)	767,900)	683,338)
Land	88,200)	83,200)	83,400)	83,400)	73,400)	73,447)
Depreciation expense attributed to property, plant and equipment	209,100)	160,600)	168,900)	180,600)	123,700)	122,900)
Asset Age Ratio (Years)
Estimated remaining life¹	4	5	5	5	6	5

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

2022 Calculations

¹ Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation expense attributed to property, plant and equipment
= (967,900 – 88,200) ÷ 209,100 = 4

Download chart

Asset age ratio	Description	The company
Estimated remaining life		Microchip Technology Inc. estimated remaining life of depreciable property, plant and equipment increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Microchip Technology Inc. (NASDAQ:MCHP)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Disclosure

Asset Age Ratios (Summary)

Average Age

Estimated Total Useful Life

Estimated Age, Time Elapsed since Purchase

Estimated Remaining Life