Net Sales

6 Months Ended

Sep. 30, 2023

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,
	2023		2022		2023		2022
Mixed-signal Microcontrollers	$	1,280.1	$	1,179.5	$	2,581.8	$	2,242.5
Analog	623.0		572.5		1,256.6		1,152.5
Other	351.2		321.2		704.5		641.8
Total net sales	$	2,254.3	$	2,073.2	$	4,542.9	$	4,036.8

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,
	2023		2022		2023		2022
Distributors	$	1,126.1	$	958.3	$	2,234.0	$	1,871.4
Direct customers	1,101.6		1,069.9		2,248.5		2,082.5
Licensees	26.6		45.0		60.4		82.9
Total net sales	$	2,254.3	$	2,073.2	$	4,542.9	$	4,036.8

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 licensees, 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, 2023, the Company had approximately $899.0 million of deferred revenue, of which $175.7 million is included within accrued liabilities and the remaining $723.3 million is included within other long-term liabilities on the Company's condensed consolidated balance sheet. As of March 31, 2023, the Company had approximately $757.7 million of deferred revenue in the semiconductor product segment, of which $121.4 million is included within accrued liabilities and the remaining $636.3 million is included within other long-term liabilities on the Company's condensed consolidated balance sheets. Deferred revenue represents amounts that have been invoiced in advance which are expected to be recognized as revenue in future periods. Approximately $62.6 million of deferred revenue recorded on the Company's consolidated balance sheets as of March 31, 2023, was recognized as revenue during the six months ended September 30, 2023. This amount was immaterial for the six months ended September 30, 2022.

Of the $899.0 million of deferred revenue as of September 30, 2023, $857.7 million is cash collected from customers under LTSAs, of which $138.4 million is included within accrued liabilities and $719.3 million is included within other long-term liabilities. Under these LTSAs, 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. If the Company fails to assure supply as defined in the contract, the deposit, or portions of it, will be returned to the customer. The remaining performance obligations for the LTSAs were approximately $4.12 billion as of September 30, 2023, of which approximately 22% is expected to be recognized as net sales during the next 12 months. The amount and timing of such net sales is uncertain because it depends on the satisfaction of commitments made in the LTSAs, which may be affected by the timing and amount of orders placed by customers, contract modifications, variable consideration, sales channels, and manufacturing and supply chain conditions. Accordingly, the amount may not be indicative of net sales in future periods. The remaining $41.3 million of deferred revenue as of September 30, 2023 is related to other cash payments received from customers in advance of the Company’s performance obligations being satisfied. Most of the $41.3 million will be recognized as net sales within the next 12 months.

In addition to LTSAs, a portion of the Company's non-LTSA customer contracts contain firmly committed orders beyond 12 months at the time of order. The transaction price for these orders with remaining performance obligations as of September 30, 2023, for orders with initial durations in excess of 12 months, approximates 20% of fiscal 2023 net sales, of which approximately 85% is expected to be recognized over the next 12 months. The amount and timing of such net sales is inherently uncertain because the ultimate transaction prices will be affected by variable consideration which is subject to change based upon market conditions at the time of the sale, contract modifications, and manufacturing and supply chain conditions. Accordingly, the amount may not be indicative of net sales in future periods.