Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 114

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 8
Chunk 114
---
 Internal Revenue Service appealed the decision to the U.S. Court of Appeals for the Ninth Circuit (the “Ninth Circuit”).  On July 24, 2018, the Ninth Circuit issued a decision that was subsequently withdrawn and a reconstituted panel conferred on the appeal.  On June 7, 2019, the Ninth Circuit reversed the decision of the U.S. Tax Court and upheld the cost-sharing regulations.  On February 10, 2020, Altera Corp. filed a Petition for a Writ of Certiorari with the Supreme Court of the United States, which was denied by the Supreme Court on June 22, 2020.  Although the issue is now resolved within the Ninth Circuit, the Ninth Circuit's opinion is not binding in other circuits.  The potential impact of this issue on the Company, which is not located within the jurisdiction of the Ninth Circuit, is unclear at this time.  We will continue to monitor developments related to this issue and the potential impact of those developments on the Company's current and prior fiscal years.The following table summarizes the changes in the unrecognized tax benefits (in thousands): March 29,2025March 30,2024Beginning balance$32,077 $32,879 Additions based on tax positions related to the current year— — Reduction for the lapse of applicable statute of limitations— (802)Ending balance$32,077 $32,077 At March 29, 2025, the Company had gross unrecognized tax benefits of $32.1 million, all of which would impact the effective tax rate if recognized.  The Company’s unrecognized tax benefits are classified as “Non-current income taxes” in the consolidated balance sheet.  The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes.  During fiscal years 2025 and 2024 we recognized interest expense, net of tax, of approximately $2.8 million and $2.4 million, respectively.  The total amount of interest accrued as of March 29, 2025 was $12.0 million.The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions including the United Kingdom.  Fiscal years 2017 through 2019 and 2022 through 2025 remain open to examination by the major taxing jurisdictions in which the Company operates.  The Company's fiscal year 2017, 2018,