Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 109

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 8
Chunk 109
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450 million of wafers from GlobalFoundries under the Capacity Reservation Agreement. 

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Purchase CommitmentsWe rely primarily on third-party foundries for our wafer manufacturing needs.  With the exception of the terms of the  Capacity Reservation Agreement described above, generally, our foundry agreements do not have volume purchase commitments and primarily provide for purchase commitments based on purchase orders.  Cancellation fees or other charges may apply and are generally dependent upon whether wafers have been started or the stage of the manufacturing process at which the notice of cancellation is given.In addition to our wafer supply arrangements, we contract with third-party assembly vendors to package the wafer die into finished products.  Assembly and test vendors provide fixed-cost-per-unit pricing, as is common in the semiconductor industry.   The Company's purchase commitments primarily include the Company's obligations to purchase wafers and related assembly and testing services described above, in addition to future payments related to multi-year tool commitments.  Total future unconditional purchase commitments as of March 29, 2025 were as follows (in thousands):Fiscal Year2026$405,585 2027205,787 20285,525 2029— 2030— Thereafter— Total$616,897 

14.    Legal Matters

From time to time, we are involved in legal proceedings concerning matters arising in connection with the conduct of our business activities.  We regularly evaluate the status of legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or additional loss may have been incurred and to determine if accruals are appropriate.  We further evaluate each legal proceeding to assess whether an estimate of possible loss or range of loss can be made.  Based on current knowledge, management does not believe that there are any pending matters that could potentially have a material adverse effect on our business, financial condition, results of operations or cash flows.

15.    Stockholders' Equity

Share Repurchase ProgramBeginning in fiscal year 2024, the Company's net stock repurchases are subject to a 1 percent excise tax under the Inflation Reduction Act, included as a reduction to accumulated earnings in the Consolidated Statements of Stockholders' Equity.  As of March 29, 2025, the Company has accrued approximately $1.4 million related to this excise tax.  Disclosure of repurchased amounts and related average costs below exclude the impact of excise taxes.In July 2022,