Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Microchip Technology Inc., consolidated statement of comprehensive income

US$ in thousands

12 months ended:	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Net income	1,285,500)	349,400)	570,600)	355,900)	255,400)	164,639)
Unrealized holding losses, net of tax effect	—)	—)	—)	(5,600)	(13,600)	(1,558)
Reclassification of realized transactions, net of tax effect	—)	—)	—)	5,600)	15,200)	1,522)
Available-for-sale securities	—)	—)	—)	—)	1,600)	(36)
Actuarial gains (losses) related to defined benefit pension plans, net of tax effect	6,900)	(9,400)	1,400)	2,900)	(5,600)	(5,307)
Reclassification of realized transactions, net of tax effect	900)	1,100)	800)	1,000)	800)	—)
Defined benefit plans	7,800)	(8,300)	2,200)	3,900)	(4,800)	(5,307)
Change in net foreign currency translation adjustment	(2,200)	3,700)	(1,800)	(5,300)	—)	(5,678)
Other comprehensive income (loss), net of tax effect	5,600)	(4,600)	400)	(1,400)	(3,200)	(11,021)
Comprehensive income	1,291,100)	344,800)	571,000)	354,500)	252,200)	153,618)

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).

The financial data demonstrates notable trends in net income, comprehensive income, and components of other comprehensive income over a six-year period ending March 31, 2022. The analysis focuses on the observed changes year-over-year and underlying patterns within each metric.

Net Income: Net income shows a consistent upward trajectory, increasing from 164,639 thousand US dollars in 2017 to a peak of 1,285,500 thousand US dollars in 2022. With the exception of a decline noted in 2021 compared to 2020 (349,400 thousand from 570,600 thousand), the overall trend reflects significant growth, suggesting strengthening profitability and operational performance over the period.
Unrealized Holding Losses and Realized Transactions Related to Available-for-Sale Securities: Unrealized holding losses are reported only in the early years 2017 through 2019, showing negative figures that peak at -13,600 thousand in 2018 before improving to -5,600 thousand in 2019 and no losses reported thereafter. This is complemented by positive figures in reclassification of realized transactions for the same early years, indicative of gains being realized from securities reclassified out of other comprehensive income. Post-2019, data for these components is absent, potentially indicating changes in accounting treatment or portfolio composition.
Actuarial Gains (Losses) Related to Defined Benefit Pension Plans: This item exhibits volatility throughout the period, shifting from losses in the early years to gains in certain later years. The reported values move from a loss of -5,307 thousand in 2017 to a gain of 6,900 thousand in 2022, with fluctuating amounts in the intervening years. This variability may reflect changes in pension plan assumptions, demographics, or asset performance influencing actuarial valuations.
Reclassification of Realized Transactions Related to Defined Benefit Plans: The figures are consistently positive across all years, with values ranging from 800 to 1,100 thousand, indicating regular recognition of gains or losses from pension-related financial instruments or settlements being reclassified into income.
Defined Benefit Plans: The subtotal combining actuarial gains (losses) and reclassification items with pensions shows an overall improvement from a negative balance (-5,307 thousand) in 2017 rising to a positive balance (7,800 thousand) in 2022. Intermediate years show oscillations, but the trend suggests reductions in pension-related losses or increases in gains over time.
Change in Net Foreign Currency Translation Adjustment: This component reveals considerable variability with negative impacts in most years (e.g., -5,678 thousand in 2017, -5,300 thousand in 2019) balanced by positive amounts in 2021 (3,700 thousand). The fluctuations indicate exposure to currency exchange risk affecting the reporting of foreign operations, impacting other comprehensive income unevenly across periods.
Other Comprehensive Income (Loss), Net of Tax Effect: Other comprehensive income/loss follows a fluctuating trajectory, starting with a significant loss of -11,021 thousand in 2017, moving towards less negative amounts in subsequent years, and closing with a positive 5,600 thousand in 2022. The oscillation implies variable non-operational gains and losses, largely influenced by pension adjustments and foreign currency translation impacts.
Comprehensive Income: Comprehensive income closely parallels net income, rising steadily from 153,618 thousand in 2017 to 1,291,100 thousand in 2022. The slight differences between comprehensive income and net income reflect the contributions of other comprehensive income items. The strong growth in comprehensive income underscores overall financial performance improvement including both operational results and other gains.

In summary, the data indicates strong growth in profitability supported by rising net and comprehensive income. Volatility in other comprehensive income elements, particularly pension-related adjustments and currency translation effects, introduces some fluctuations, but the net effect over time trends toward enhanced financial results. The absence of data in certain categories from 2020 onward may suggest shifts in financial reporting or asset management strategies impacting the makeup of comprehensive income components.

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Microchip Technology Inc. (NASDAQ:MCHP)

Statement of Comprehensive Income