Name: Microchip Technology Inc. (NASDAQ:MCHP) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

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.

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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 trajectory from 2017 to 2022 is characterized by significant growth in profitability, punctuated by a brief contraction in 2021 followed by an exponential increase in the final year.

Net Income and Comprehensive Income Growth: Net income demonstrated a consistent upward trend from 2017 through 2020, increasing from 164.6 million to 570.6 million. Although a decline occurred in 2021, where income dropped to 349.4 million, the 2022 fiscal year showed a substantial surge to 1.285 billion. Comprehensive income closely mirrors this pattern, indicating that net income is the primary driver of total comprehensive performance, with other comprehensive income components exerting minimal influence on the overall result.
Analysis of Other Comprehensive Income (OCI): Other comprehensive income remained relatively immaterial in proportion to net income, fluctuating between a low of negative 11 million in 2017 and a high of 5.6 million in 2022. The volatility within OCI is primarily attributed to the performance of defined benefit pension plans and foreign currency translation adjustments.
Defined Benefit Pension Plans: Actuarial adjustments related to pension plans exhibited significant volatility. Losses were recorded in 2017, 2018, and 2021, with the most substantial loss of 9.4 million occurring in 2021. This was countered by gains in 2019, 2020, and 2022, culminating in a gain of 6.9 million in the final year, contributing to a total positive defined benefit plan adjustment of 7.8 million in 2022.
Foreign Currency and Securities Adjustments: Net foreign currency translation adjustments were predominantly negative throughout the period, with the exception of 2021, which saw a positive adjustment of 3.7 million. Additionally, activity related to available-for-sale securities, including unrealized holding losses and reclassifications, was present from 2017 to 2019 but ceased entirely from 2020 onward, suggesting a change in investment portfolio composition or accounting treatment.

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