Company: CRUS
Filing Date: 2025-05-23
Form Type: 10-K
Source: 0000772406-25-000014
Chunk: 87

Company: CIRRUS LOGIC, INC.
Filing Date: 2025-05-23
Form: 10-K
Item: Item 8
Chunk 87
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 parent level, Foxconn, Luxshare Precision, and Pegatron, who represented 43 percent, 11 percent, and 10 percent, respectively, of our consolidated gross trade accounts receivable as of the end of fiscal year 2024.  No other distributor or contract manufacturer had receivable balances that represented more than 10 percent of consolidated gross trade accounts receivable as of the end of fiscal year 2025 or 2024.Since the components we produce are largely proprietary and generally not available from second sources, we consider our end customer to be the entity specifying the use of our component in their design.  These end customers may then purchase our products directly from us, from a distributor, or through a third-party manufacturer contracted to produce their end product.  For fiscal years 2025, 2024 and 2023, our ten largest end customers represented approximately 96 percent, 95 percent and 92 percent of our net sales, respectively.  For fiscal years 2025, 2024, and 2023, we had one end customer, Apple Inc., who purchased through multiple contract manufacturers and represented approximately 89 percent, 87 percent, and 83 percent, of the Company’s total net sales, respectively.  No other customer or distributor represented more than 10 percent of net sales in fiscal years 2025, 2024, or 2023.Revenue RecognitionWe recognize revenue upon the transfer of promised goods or services to customers, in an amount that reflects the consideration the Company expects to be entitled in exchange for those goods or services. Performance ObligationsThe Company’s single performance obligation is the delivery of promised goods to the customer.  The promised goods are explicitly stated in the customer contract and are comprised of a single type of good.  This performance obligation is satisfied upon transfer of control of the promised goods to the customer, as defined per the shipping terms within the customer’s contract.  The vast majority of the Company’s contracts with customers have an original expected term of one year or less.  

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Contract balances Payments are typically due within 30 to 60 days of invoicing and terms do not include a significant financing component or noncash consideration.  There have been no material impairment losses on accounts receivable.  There are no material contract liabilities recorded on the consolidated balance sheets. Transaction price The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised goods to the customer.  Fixed pricing is the consideration that is agreed