Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 102

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 8
Chunk 102
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 activities in the consolidated statement of cash flows.As of March 29, 2025, there was $138.7 million of compensation costs related to non-vested stock options, restricted stock units, market stock units, and performance stock units granted under the Company’s equity incentive plans not yet recognized in the Company’s financial statements.  The unrecognized compensation cost is expected to be recognized over a weighted average period of 1.48 years for stock options, 1.45 years for restricted stock units, 1.92 years for market stock units, and 2.16 years for performance stock units.In addition to the income tax benefit of stock-based compensation expense shown in the table above, the Company recognized excess tax benefits of $9.4 million, $0.2 million and $1.4 million in fiscal years 2025, 2024, and 2023 respectively. Stock OptionsWe estimate the fair value of each stock option on the date of grant using the Black-Scholes option-pricing model using a dividend yield of zero and the following additional assumptions: March 29, 2025March 30, 2024March 25, 2023Expected stock price volatility35.70% 34.53% - 39.92%35.18% - 46.50%Risk-free interest rate4.33%3.99% - 4.11%2.47% - 3.96%Expected term (in years)3.733.85 - 4.074.04 - 4.33The Black-Scholes valuation calculation requires us to estimate key assumptions such as stock price volatility, expected term, risk-free interest rate and dividend yield.  The expected stock price volatility is based upon implied volatility from traded options on our stock in the marketplace.  The expected term of options granted is derived from an analysis of historical exercises and remaining contractual life of stock options, and represents the period of time that options granted are expected to be outstanding after becoming vested.  The risk-free interest rate reflects the yield on zero-coupon U.S. Treasury securities for a period that is commensurate with the expected term assumption.  Finally, we have never paid cash dividends, do not currently intend to pay cash dividends, and thus have assumed a zero percent dividend yield.Using the Black-Scholes option valuation model, the weighted average estimated fair values of stock options granted in fiscal years 2025, 2024, and 2023,