Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 113

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 8
Chunk 113
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 are subject to certain limitations under Section 382 of the Internal Revenue Code and expire in fiscal years 2026 through 2031.  At March 29, 2025 the Company had gross foreign net operating loss carryforwards of $0.2 million that do not expire and gross state net operating loss carryforwards of $6.2 million that expire in fiscal years 2026 through 2030.  In addition, the Company had $12.1 million of state business tax, minimum tax, and research and development tax credit carryforwards.  Certain of these state tax credits will expire in fiscal years 2026 through 2034, and others do not expire.  The Company maintains a valuation allowance for certain deferred tax assets primarily relating to certain state net operating loss and state tax credit carryforwards due to the likelihood that they will expire or go unutilized.  Our valuation allowance decreased by $33 thousand in fiscal year 2025, which was the net effect of a gross increase of $206 thousand that affected the effective tax rate and a gross decrease of $239 thousand that was offset by a corresponding reduction in deferred tax assets on the balance sheet.  Management believes that the Company’s results from future operations will generate sufficient taxable income in the appropriate jurisdictions and of the appropriate character such that it is more likely than not that the remaining deferred tax assets will be realized.At March 29, 2025, unremitted earnings of our foreign subsidiaries that can be distributed without tax consequence,  other than withholding taxes that may apply based on the jurisdiction of the subsidiary, are not expected to be indefinitely reinvested.  We accrued an immaterial amount of withholding taxes on foreign earnings expected to be remitted in the next year due to the planned liquidation of a foreign entity.  No other taxes have been accrued for potential foreign withholding taxes on other foreign earnings as these amounts are not material.  We have not provided additional income taxes for other outside basis differences inherent in our foreign entities, as these amounts continue to be indefinitely reinvested in foreign operations.  Determining the amount of unrecognized deferred tax liability related to all other outside basis differences in these entities is not practicable at this time. On July 27, 2015, the U.S. Tax Court issued an opinion in Altera Corp. et al. v. Commissioner which concluded that the regulations relating to the treatment of stock-based compensation expense in intercompany cost-sharing arrangements were invalid.  In 2016 the U.S.