Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 86

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 8
Chunk 86
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-process research & development, trademarks, tradenames, customer relationships, and non-compete agreements.  These assets are amortized on a straight-line basis over lives ranging from 1 to 15 years.We regularly review whether facts or circumstances exist that indicate the carrying values of property, plant and equipment or other long-lived assets, including intangible assets, are impaired.  We assess the recoverability of assets by comparing the projected undiscounted net cash flows associated with those assets to their respective carrying amounts.  We measure any impairment loss by comparing the fair value of the asset to its carrying amount.  We estimate fair value based on discounted future cash flows, quoted market prices, or independent appraisals.  See Note 7 — Intangibles, net and Goodwill for further detail.  There were no material intangible asset impairments recorded in fiscal years 2025 or 2024.  Foreign Currency TranslationSome of the Company's subsidiaries utilize the local currency as the functional currency.  The Company’s main entities, including the entities that generate the majority of sales and employ the majority of employees, are U.S. dollar functional. Concentration of Credit RiskFinancial instruments that potentially subject us to material concentrations of credit risk consist primarily of cash equivalents, marketable securities, long-term marketable securities, and trade accounts receivable.  We are exposed to credit risk to the extent of the amounts recorded on the balance sheet.  By policy, our cash equivalents, marketable securities, and long-term marketable securities are subject to certain nationally recognized credit standards, issuer concentrations, sovereign risk, and marketability or liquidity considerations.In evaluating our trade receivables, we perform credit evaluations of our major customers’ financial condition and monitor closely all of our receivables to limit our financial exposure by limiting the length of time and amount of credit extended.  In certain situations, we may require payment in advance or utilize letters of credit to reduce credit risk.  By policy, we establish a reserve for trade accounts receivable based on the type of business in which a customer is engaged, the length of time a trade account receivable is outstanding, and other knowledge that we may possess relating to the probability that a trade receivable is at risk for non-payment.We had two contract manufacturers aggregated at their parent level, Foxconn and Luxsan, who represented 41 percent and 21 percent, respectively, of our consolidated gross trade accounts receivable as of the end of fiscal year 2025.  We had three contract manufacturers aggregated at their