Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 84

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 8
Chunk 84
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 the extent to which products are accepted into the marketplace.  By policy, we evaluate market acceptance based on known business factors and conditions by comparing forecasted customer unit demand for our products over a specific future period, or demand horizon, to quantities on hand at the end of each accounting period.On a quarterly and annual basis, we analyze inventories on a part-by-part basis.  Product life cycles and the competitive nature of the industry are factors considered in the evaluation of customer unit demand at the end of each quarterly accounting 

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period.  Inventory on-hand in excess of forecasted demand is considered to have reduced market value and, therefore, the cost basis is adjusted to net realizable value.  Typically, market values for excess or obsolete inventories are considered to be zero.  Inventory charges recorded for excess and obsolete inventory, including scrapped inventory, were $4.2 million in fiscal year 2025, related to a combination of quality issues and inventory exceeding demand.  Net inventory reserve releases of $1.0 million in fiscal year 2024, primarily related to the sale of previously reserved inventory, offset by charges for excess and obsolete inventory.Inventories were comprised of the following (in thousands): March 29, 2025March 30, 2024Work in process$216,173 $130,842 Finished goods82,919 96,406 $299,092 $227,248 Property, Plant and Equipment, netProperty, plant and equipment is recorded at cost, net of depreciation and amortization.  Depreciation and amortization is calculated on a straight-line basis over estimated economic lives, ranging from 3 to 39 years.  Leasehold improvements are depreciated over the shorter of the term of the lease or the estimated useful life.  Furniture, fixtures, machinery, and equipment are all depreciated over a useful life of 3 to 10 years, while buildings are depreciated over a period of up to 39 years.  In general, our capitalized software is amortized over a useful life of 3 years, with capitalized enterprise resource planning software being amortized over a useful life of 10 years.  Gains or losses related to retirements or dispositions of fixed assets are recognized in the period incurred.  Additionally, if impairment indicators exist, the Company will assess the carrying value in relation to the calculated fair value of the associated asset.  There were no material disposal charges for property, plant and equipment in fiscal years 2025 or