Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 83

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 8
Chunk 83
---
’s Republic of China, South Korea, Japan, Singapore, and Taiwan.  Our common stock, which has been publicly traded since 1989, is listed on the NASDAQ's Global Select Market under the symbol CRUS.Basis of PresentationWe prepare financial statements on a 52- or 53-week year that ends on the last Saturday in March.  Fiscal years 2025 and 2023 were 52-week years.  Fiscal year 2024 was a 53-week year.  Principles of ConsolidationThe accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and include the accounts of the Company and its wholly-owned subsidiaries.  All significant intercompany balances and transactions have been eliminated.Use of EstimatesThe preparation of financial statements in accordance with U.S. GAAP requires the use of management estimates.  These estimates are subjective in nature and involve judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at fiscal year-end and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from these estimates.

2.    Summary of Significant Accounting Policies

Cash and Cash EquivalentsCash and cash equivalents consist primarily of money market funds, U.S. Government Treasury and Agency instruments with original maturities of three months or less at the date of purchase.LeasesWe account for leases under ASC 842, Leases.  Our leases generally contain fixed rental payments, with additional variable payments linked to actual common area maintenance costs incurred by the landlord.  These variable payments are not included within the lease liability and right-of-use ("ROU") asset, but are recognized as an expense when incurred.  As our leases typically do not provide an implicit rate, the Company determines the Incremental Borrowing Rate ("IBR") for each lease based on the information available at the commencement date, taking into consideration necessary adjustments for collateral, currency, and lease term.  Operating leases in excess of 12 months are recognized on the balance sheet, with future lease payments recognized as a liability, measured at present value, and the ROU asset recognized for the lease term.  Lease expense is recognized in the income statement over the lease term.  InventoriesInventories are stated at the lower of cost or net realizable value on a first-in, first-out basis.  Cost is computed using standard costs, which approximate actual cost.  One of the factors we consistently evaluate in the application of this method is