Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 108

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 8
Chunk 108
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 As of March 29, 2025, our principal facilities are located in Austin, Texas and Edinburgh, Scotland, United Kingdom.Total rent expense under operating leases was approximately $26.2 million, $23.6 million, and $24.4 million, for fiscal years 2025, 2024, and 2023, respectively.  Rental income was $0.9 million, $0.2 million, and $0.5 million, for fiscal years 2025, 2024, and 2023, respectively.See Note 10 - Leases for minimum future rental commitments and income under all operating leases as of March 29, 2025.Capacity Reservation Agreement On July 28, 2021, the Company entered into a Capacity Reservation and Wafer Supply Commitment Agreement (the “Capacity Reservation Agreement”) with GLOBALFOUNDRIES Singapore Pte. Ltd. (“GlobalFoundries”) to provide the Company a wafer capacity commitment and wafer pricing for Company products for calendar years 2022-2026 (the “Commitment Period”).  On February 18, 2025, the Capacity Reservation Agreement was amended (the "Amendment") to define the quarterly spread of the remaining wafer quantities under the agreement.The Capacity Reservation Agreement requires GlobalFoundries to provide, and the Company to purchase, a defined number of wafers on a quarterly basis for the Commitment Period, subject to shortfall payments.  In exchange for GlobalFoundries’ capacity commitment, the Company paid a $60 million non-refundable capacity reservation fee, which is amortized over the Commitment Period.  The balance of this reservation fee is $16 million as of March 29, 2025, and is recorded in "Other current assets" and "Other assets" on the consolidated balance sheets within the short-term or long-term classification, as appropriate.  In addition, the Company pre-paid GlobalFoundries $195 million for future wafer purchases, which are credited back to the Company as a portion of the price of wafers purchased, which began in the Company's second fiscal quarter of 2024.  The balance of the prepayment is $68 million at March 29, 2025, and is currently recorded in "Prepaid wafers" and "Long-term prepaid wafers" on the consolidated balance sheets.  As of March 29, 2025, the Company estimates its remaining purchase obligation to be approximately $