Net Sales

6 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Net Sales

Net Sales

The following table represents the Company's net sales by product line (in millions):

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Microcontrollers	$	1,179.5	$	894.0	$	2,242.5	$	1,796.5
Analog	572.5		490.9		1,152.5		923.0
Other	321.2		264.9		641.8		499.7
Total net sales	$	2,073.2	$	1,649.8	$	4,036.8	$	3,219.2

The product lines listed above are included entirely in the Company's semiconductor product segment with the exception of the other product line, which includes products from both the semiconductor product and technology licensing segments.

The following table represents the Company's net sales by customer type (in millions):

	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Distributors	$	958.3	$	816.7	$	1,871.4	$	1,600.1
Direct customers	1,069.9		800.3		2,082.5		1,558.9
Licensees	45.0		32.8		82.9		60.2
Total net sales	$	2,073.2	$	1,649.8	$	4,036.8	$	3,219.2

Distributors are customers that buy products with the intention of reselling them. Distributors generally have a distributor agreement with the Company to govern the terms of the relationship. Direct customers are non-distributor customers, which generally do not have a master sales agreement with the Company. The Company's direct customers primarily consist of OEMs and, to a lesser extent, contract manufacturers. Licensees are customers of the Company's technology licensing segment, which include purchasers of intellectual property and customers that have licensing agreements to use the Company's SuperFlash® embedded flash technology. All of the customer types listed in the table above are included in the Company's semiconductor product segment with the exception of licenses, which is included in the technology licensing segment.

The Company collects amounts in advance for certain of its contracts with customers. These amounts are deferred until control of the product or service is transferred to the customer at which time it is recognized as revenue. As of September 30, 2022, the Company had approximately $237.3 million of deferred revenue in the semiconductor product segment, of which $88.3 million is included within accrued liabilities and the remaining is included within other long-term liabilities on the Company's condensed consolidated balance sheet. As of March 31, 2022, the Company had approximately $117.6 million of deferred revenue in the semiconductor product segment, of which $73.2 million is included within accrued liabilities and the remaining is included within other long-term liabilities on the Company's condensed consolidated balance sheet. Deferred revenue represents amounts that have been invoiced in advance which are expected to be recognized as revenue in future periods.

Of the $237.3 million of deferred revenue as of September 30, 2022, $150.2 million is cash collected from customers under long-term supply arrangements of which $6.8 million is included within accrued liabilities and $143.4 million is included within other long-term liabilities. Under these arrangements, the Company receives an upfront deposit from the customer in exchange for assured supply over the contract period, which typically ranges from three to five years. If the customer does not meet the minimum purchase commitments defined in the contract, the Company may retain all, or portions of, the deposit as revenue. Assuming that the Company satisfies its performance obligations, the minimum revenue to be recorded under these arrangements totals $150.2 million and would be recognized over the next five fiscal years. The remaining $87.1 million of deferred revenue as of September 30, 2022 is related to other cash payments received from customers in advance of the Company’s performance obligations being satisfied. Nearly all the $87.1 million will be recognized as revenue within the next 12 months.

Many of the Company’s customer contracts have a duration of less than 12 months, however, a portion of the Company's customer contracts in the semiconductor product segment contain firmly committed orders beyond 12 months at the time of order. The transaction price the Company expects to receive for non-cancelable commitments in such contracts with remaining performance obligations as of September 30, 2022 for orders with initial durations in excess of 12 months approximates the Company’s fiscal 2022 net sales of which approximately 63% is expected to be recognized as net sales over the next 12 months. The amount and timing of such net sales is inherently uncertain because the transaction prices include variable consideration which is subject to change based upon market conditions at the time of the sale and may not be indicative of net sales in future periods.