Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 112

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 8
Chunk 112
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 must be capitalized and amortized over five or fifteen years for tax purposes, depending on where the research activities are conducted.  Because the Company elected to treat global intangible low-taxed income ("GILTI") as a period cost, the capitalization of research and development costs in the computation of GILTI resulted in an increase in the Company's provision for income taxes in fiscal years 2023, 2024 and 2025.  The Tax Act also required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax-deferred.  We elected to pay the transition tax over the eight-year period provided in the Tax Act.  As of March 29, 2025, the remaining balance of our transition tax obligation was $10.7 million, which will be paid as the final installment in fiscal year 2026. Significant components of our deferred tax assets and liabilities as of March 29, 2025 and March 30, 2024 are (in thousands): March 29,2025March 30,2024Deferred tax assets:Accrued expenses and allowances$3,939 $3,559 Net operating loss carryforwards889 932 Research and development tax credit carryforwards12,024 12,547 Stock-based compensation23,099 28,437 Lease liabilities23,562 25,564 Capitalized research and development10,461 11,307 Depreciation and amortization6,823 994 Other714 938 Total deferred tax assets$81,511 $84,278 Valuation allowance for deferred tax assets(12,475)(12,508)Net deferred tax assets$69,036 $71,770 Deferred tax liabilities:Right of use asset20,302 22,279 Acquisition intangibles134 845 Other450 — Total deferred tax liabilities$20,886 $23,124 Total net deferred tax assets$48,150 $48,646 

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Deferred tax assets and liabilities are recorded for the estimated tax impact of temporary differences between the tax basis and book basis of assets and liabilities.  A valuation allowance is established against a deferred tax asset when it is more likely than not that the deferred tax asset will not be realized.  At March 29, 2025, the Company had gross federal net operating loss carryforwards of $1.5 million, all of which