Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 47

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 1A
Chunk 47
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 requests may require us to modify our supply chain practices, make capital investments to modify certain aspects of our operations, or increase our operating costs.  There can be no assurance of the extent to which any of our climate goals or the goals of our customers will be achieved or that any future investments that we make in furtherance of achieving our climate goals or the goals of our customers will produce the expected results or meet increasing stakeholder environmental, social and 

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governance expectations.  If we do not meet these goals, we could incur adverse publicity and reaction or the loss of business from certain of our customers, which could adversely impact our reputation, and in turn adversely impact our results of operations.              Further, we are subject to increased government laws, regulations, and other standards that impose operational and reporting requirements related to ESG matters, and we will likely be subject to further evolving ESG reporting standards in the future. Collecting, measuring, and reporting ESG information and metrics in response to these increased requirements can be costly, difficult, and time consuming.  With these additional regulations and disclosures, we may see our legal compliance, financial reporting, and auditing costs increase along with the emergence of risks associated with the collection, data assurance, and disclosure related to such ESG information.   

As we carry only limited insurance coverage, uninsured or under-insured losses could adversely affect our financial condition and results of operations.

              Our insurance policies may not be adequate to fully offset losses from covered incidents, and we do not have coverage for certain losses.  For example, there is limited coverage available with respect to the services provided by our third-party foundries and assembly and test subcontractors.  Although we believe that our existing insurance coverage is consistent with common practices of companies in our industry, our insurance coverage may be inadequate to protect us against product recalls, natural disasters (including those related to changes in climate), cybersecurity and/or information security breaches, and other unforeseen catastrophes that could adversely affect our financial condition and results of operations.   

We are subject to the risks of owning real property.

              We currently own our U.S. headquarters and research facility in Austin, Texas.  The ownership of our U.S. properties subjects us to the risks of owning real property, which may include:- the possibility of environmental contamination and the costs associated with correcting any environmental problems;- adverse changes in the value of these properties, due to interest rate changes, changes in the neighborhood in which the property is located, or other factors; and- the risk of financial