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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 23, 2023

☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from ____ to ____
Commission File Number 0-17795
CIRRUS LOGIC, INC.
(Exact name of registrant as specified in its charter)

Delaware |  |  |  | 77-0024818
(State or other jurisdiction of incorporation or organization) |  |  |  | (I.R.S. Employer Identification No.)
800 W. 6th Street | Austin, | Texas |  | 78701
(Address of principal executive offices) |  | (Zip Code)
Registrant’s telephone number, including area code: | (512) | 851-4000
Securities registered pursuant to Section 12(b) of the Act:

Title of each class |  | Trading Symbol |  | Name of each exchange on which registered
Common stock, $0.001 par value |  | CRUS |  | The NASDAQ Global Select Market
Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer | ☑ | Accelerated Filer | ☐
Non-accelerated Filer | ☐ | Smaller Reporting Company | ☐
|  | Emerging Growth Company | ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☑
The number of shares of the registrant's common stock, $0.001 par value, outstanding as of October 31, 2023 was 53,897,687.

CIRRUS LOGIC, INC.
FORM 10-Q QUARTERLY REPORT
QUARTERLY PERIOD ENDED SEPTEMBER 23, 2023
TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION
Item 1. | Financial Statements |
| Consolidated Condensed Balance Sheets - September 23, 2023 (unaudited) and March 25, 2023 | 3
| Consolidated Condensed Statements of Income (unaudited) - Three and Six Months Ended September 23, 2023 and September 24, 2022 | 4
| Consolidated Condensed Statements of Comprehensive Income (unaudited) - Three and Six Months Ended September 23, 2023 and September 24, 2022 | 5
| Consolidated Condensed Statements of Cash Flows (unaudited) - Six Months Ended September 23, 2023 and September 24, 2022 | 6
| Consolidated Condensed Statements of Stockholders' Equity (unaudited) - Three and Six Months Ended September 23, 2023 and September 24, 2022 | 7
| Notes to Consolidated Condensed Financial Statements (unaudited) | 8
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 16
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 21
Item 4. | Controls and Procedures | 21
PART II - OTHER INFORMATION
Item 1. | Legal Proceedings | 22
Item 1A. | Risk Factors | 22
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 24
Item 3. | Defaults Upon Senior Securities | 24
Item 4. | Mine Safety Disclosures | 24
Item 5. | Other Information | 24
Item 6. | Exhibits | 25
| Signatures | 25

2

Part I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)

| September 23, |  | March 25,
| 2023 |  | 2023
| (unaudited) |  |
Assets |  |  |
Current assets: |  |  |
Cash and cash equivalents | $ | 277,805 |  |  | $ | 445,784 |
Marketable securities | 34,636 |  |  | 34,978 |
Accounts receivable, net | 271,894 |  |  | 150,473 |
Inventories | 328,930 |  |  | 233,450 |
Prepaid assets | 32,844 |  |  | 35,507 |
Prepaid wafers | 79,468 |  |  | 60,638 |
Other current assets | 71,294 |  |  | 57,026 |
Total current assets | 1,096,871 |  |  | 1,017,856 |
Long-term marketable securities | 40,042 |  |  | 36,509 |
Right-of-use lease assets | 144,104 |  |  | 128,145 |
Property and equipment, net | 171,047 |  |  | 162,972 |
Intangibles, net | 33,801 |  |  | 38,876 |
Goodwill | 435,936 |  |  | 435,936 |
Deferred tax assets | 44,126 |  |  | 35,580 |
Long-term prepaid wafers | 94,474 |  |  | 134,363 |
Other assets | 44,052 |  |  | 73,729 |
Total assets | $ | 2,104,453 |  |  | $ | 2,063,966 |
Liabilities and Stockholders' Equity |  |  |
Current liabilities: |  |  |
Accounts payable | $ | 87,340 |  |  | $ | 81,462 |
Accrued salaries and benefits | 46,504 |  |  | 50,606 |
Software license agreements | 15,930 |  |  | 20,948 |
Current lease liabilities | 19,859 |  |  | 18,442 |
Acquisition-related liabilities | — |  |  | 21,361 |
Other accrued liabilities | 31,557 |  |  | 23,521 |
Total current liabilities | 201,190 |  |  | 216,340 |
Long-term liabilities: |  |  |
Non-current lease liabilities | 136,042 |  |  | 122,631 |
Non-current income taxes | 51,589 |  |  | 59,013 |
Other long-term liabilities | 7,277 |  |  | 7,700 |
Total long-term liabilities | 194,908 |  |  | 189,344 |
Stockholders' equity: |  |  |
Capital stock | 1,712,710 |  |  | 1,670,141 |
Accumulated deficit | (1,213) |  |  | (9,320) |
Accumulated other comprehensive loss | (3,142) |  |  | (2,539) |
Total stockholders' equity | 1,708,355 |  |  | 1,658,282 |
Total liabilities and stockholders' equity | $ | 2,104,453 |  |  | $ | 2,063,966 |

The accompanying notes are an integral part of these consolidated condensed financial statements.
3

CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share amounts; unaudited)

| Three Months Ended |  | Six Months Ended
| September 23, |  | September 24, |  | September 23, |  | September 24,
| 2023 |  | 2022 |  | 2023 |  | 2022
Net sales | $ | 481,063 |  |  | $ | 540,574 |  |  | $ | 798,079 |  |  | $ | 934,213 |
Cost of sales | 234,467 |  |  | 269,288 |  |  | 392,096 |  |  | 460,293 |
Gross profit | 246,596 |  |  | 271,286 |  |  | 405,983 |  |  | 473,920 |
Operating expenses |  |  |  |  |  |  |
Research and development | 104,205 |  |  | 115,471 |  |  | 210,420 |  |  | 225,187 |
Selling, general and administrative | 34,323 |  |  | 39,598 |  |  | 69,702 |  |  | 78,240 |
Restructuring and related costs | 2,319 |  |  | — |  |  | 2,319 |  |  | — |
Total operating expenses | 140,847 |  |  | 155,069 |  |  | 282,441 |  |  | 303,427 |
Income from operations | 105,749 |  |  | 116,217 |  |  | 123,542 |  |  | 170,493 |
Interest income | 3,972 |  |  | 1,528 |  |  | 8,791 |  |  | 2,051 |
Interest expense | (243) |  |  | (243) |  |  | (462) |  |  | (461) |
Other income (expense) | (70) |  |  | 295 |  |  | 307 |  |  | 801 |
Income before income taxes | 109,408 |  |  | 117,797 |  |  | 132,178 |  |  | 172,884 |
Provision for income taxes | 34,001 |  |  | 30,609 |  |  | 41,171 |  |  | 45,989 |
Net income | $ | 75,407 |  |  | $ | 87,188 |  |  | $ | 91,007 |  |  | $ | 126,895 |
Basic earnings per share | $ | 1.38 |  |  | $ | 1.56 |  |  | $ | 1.66 |  |  | $ | 2.27 |
Diluted earnings per share | $ | 1.34 |  |  | $ | 1.52 |  |  | $ | 1.61 |  |  | $ | 2.20 |
Basic weighted average common shares outstanding | 54,503 |  |  | 55,726 |  |  | 54,683 |  |  | 56,002 |
Diluted weighted average common shares outstanding | 56,278 |  |  | 57,418 |  |  | 56,453 |  |  | 57,620 |

The accompanying notes are an integral part of these consolidated condensed financial statements.
4

CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands; unaudited)

| Three Months Ended |  | Six Months Ended
| September 23, |  | September 24, |  | September 23, |  | September 24,
| 2023 |  | 2022 |  | 2023 |  | 2022
Net income | $ | 75,407 |  |  | $ | 87,188 |  |  | $ | 91,007 |  |  | $ | 126,895 |
Other comprehensive income (loss), before tax |  |  |  |  |  |  |
Foreign currency translation loss | (342) |  |  | (736) |  |  | (792) |  |  | (1,703) |
Unrealized gain (loss) on marketable securities | 259 |  |  | (460) |  |  | 239 |  |  | (940) |
(Provision) benefit for income taxes | (54) |  |  | 97 |  |  | (50) |  |  | 198 |
Comprehensive income | $ | 75,270 |  |  | $ | 86,089 |  |  | $ | 90,404 |  |  | $ | 124,450 |

The accompanying notes are an integral part of these consolidated condensed financial statements.
5

CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)

| Six Months Ended
| September 23, |  | September 24,
| 2023 |  | 2022
Cash flows from operating activities: |  |  |
Net income | $ | 91,007 |  |  | $ | 126,895 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |
Depreciation and amortization | 23,551 |  |  | 33,734 |
Stock-based compensation expense | 44,046 |  |  | 38,621 |
Deferred income taxes | (8,601) |  |  | (4,456) |
Loss on retirement or write-off of long-lived assets | 64 |  |  | 303 |
Other non-cash adjustments | 1,608 |  |  | 185 |
Restructuring and related costs | 2,319 |  |  | — |
Net change in operating assets and liabilities: |  |  |
Accounts receivable | (121,606) |  |  | (64,282) |
Inventories | (95,480) |  |  | (26,135) |
Prepaid wafers | 21,058 |  |  | — |
Other assets | (6,291) |  |  | (1,942) |
Accounts payable and other accrued liabilities | (78) |  |  | (6,098) |
Income taxes payable | 7,220 |  |  | 7,201 |
Acquisition-related liabilities | (21,361) |  |  | 6,328 |
Net cash provided by (used in) operating activities | (62,544) |  |  | 110,354 |
Cash flows from investing activities: |  |  |
Maturities and sales of available-for-sale marketable securities | 18,242 |  |  | 6,655 |
Purchases of available-for-sale marketable securities | (21,191) |  |  | (6,036) |
Purchases of property, equipment and software | (20,780) |  |  | (16,987) |
Investments in technology | (57) |  |  | (484) |
Net cash used in investing activities | (23,786) |  |  | (16,852) |
Cash flows from financing activities: |  |  |
Issuance of common stock, net of shares withheld for taxes | 560 |  |  | 1,131 |
Repurchase of stock to satisfy employee tax withholding obligations | (3,129) |  |  | (3,022) |
Repurchase and retirement of common stock | (79,080) |  |  | (106,382) |
Net cash used in financing activities | (81,649) |  |  | (108,273) |
Net decrease in cash and cash equivalents | (167,979) |  |  | (14,771) |
Cash and cash equivalents at beginning of period | 445,784 |  |  | 369,814 |
Cash and cash equivalents at end of period | $ | 277,805 |  |  | $ | 355,043 |

The accompanying notes are an integral part of these consolidated condensed financial statements.
6

CIRRUS LOGIC, INC.
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY
(in thousands; unaudited)

|  | Common Stock |  | Additional Paid-In Capital |  | Accumulated Earnings (Deficit) |  | Accumulated Other Comprehensive Loss |  | Total
Three Months Ended |  | Shares |  | Amount |  |  |  |
Balance, June 25, 2022 |  | 55,899 |  |  | $ | 56 |  |  | $ | 1,596,628 |  |  | $ | 5,894 |  |  | $ | (3,391) |  |  | $ | 1,599,187 |
Net income |  | — |  |  | — |  |  | — |  |  | 87,188 |  |  | — |  |  | 87,188 |
Change in unrealized gain (loss) on marketable securities, net of tax |  | — |  |  | — |  |  | — |  |  | — |  |  | (363) |  |  | (363) |
Change in foreign currency translation adjustments |  | — |  |  | — |  |  | — |  |  | — |  |  | (736) |  |  | (736) |
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes |  | 110 |  |  | — |  |  | 1,011 |  |  | (2,156) |  |  | — |  |  | (1,145) |
Repurchase and retirement of common stock |  | (583) |  |  | (1) |  |  | — |  |  | (49,999) |  |  | — |  |  | (50,000) |
Stock-based compensation |  | — |  |  | — |  |  | 20,483 |  |  | — |  |  | — |  |  | 20,483 |
Balance, September 24, 2022 |  | 55,426 |  |  | $ | 55 |  |  | $ | 1,618,122 |  |  | $ | 40,927 |  |  | $ | (4,490) |  |  | $ | 1,654,614 |
Balance, June 24, 2023 |  | 54,670 |  |  | $ | 55 |  |  | $ | 1,693,365 |  |  | $ | (33,621) |  |  | $ | (3,005) |  |  | $ | 1,656,794 |
Net income |  | — |  |  | — |  |  | — |  |  | 75,407 |  |  | — |  |  | 75,407 |
Change in unrealized gain (loss) on marketable securities, net of tax |  | — |  |  | — |  |  | — |  |  | — |  |  | 205 |  |  | 205 |
Change in foreign currency translation adjustments |  | — |  |  | — |  |  | — |  |  | — |  |  | (342) |  |  | (342) |
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes |  | 78 |  |  | — |  |  | — |  |  | (2,080) |  |  | — |  |  | (2,080) |
Repurchase and retirement of common stock |  | (511) |  |  | (1) |  |  | — |  |  | (40,919) |  |  | — |  |  | (40,920) |
Stock-based compensation |  | — |  |  | — |  |  | 19,291 |  |  | — |  |  | — |  |  | 19,291 |
Balance, September 23, 2023 |  | 54,237 |  |  | $ | 54 |  |  | $ | 1,712,656 |  |  | $ | (1,213) |  |  | $ | (3,142) |  |  | $ | 1,708,355 |
Six Months Ended |  |  |  |  |  |  |  |  |  |  |  |
Balance, March 26, 2022 |  | 56,596 |  |  | $ | 57 |  |  | $ | 1,578,370 |  |  | $ | 23,435 |  |  | $ | (2,045) |  |  | $ | 1,599,817 |
Net income |  | — |  |  | — |  |  | — |  |  | 126,895 |  |  | — |  |  | 126,895 |
Change in unrealized gain (loss) on marketable securities, net of tax |  | — |  |  | — |  |  | — |  |  | — |  |  | (742) |  |  | (742) |
Change in foreign currency translation adjustments |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,703) |  |  | (1,703) |
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes |  | 138 |  |  | — |  |  | 1,131 |  |  | (3,022) |  |  | — |  |  | (1,891) |
Repurchase and retirement of common stock |  | (1,308) |  |  | (2) |  |  | — |  |  | (106,381) |  |  | — |  |  | (106,383) |
Stock-based compensation |  | — |  |  | — |  |  | 38,621 |  |  | — |  |  | — |  |  | 38,621 |
Balance, September 24, 2022 |  | 55,426 |  |  | $ | 55 |  |  | $ | 1,618,122 |  |  | $ | 40,927 |  |  | $ | (4,490) |  |  | $ | 1,654,614 |
Balance, March 25, 2023 |  | 55,098 |  |  | $ | 55 |  |  | $ | 1,670,086 |  |  | $ | (9,320) |  |  | $ | (2,539) |  |  | $ | 1,658,282 |
Net income |  | — |  |  | — |  |  | — |  |  | 91,007 |  |  | — |  |  | 91,007 |
Change in unrealized gain (loss) on marketable securities, net of tax |  | — |  |  | — |  |  | — |  |  | — |  |  | 189 |  |  | 189 |
Change in foreign currency translation adjustments |  | — |  |  | — |  |  | — |  |  | — |  |  | (792) |  |  | (792) |
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes |  | 116 |  |  | — |  |  | 564 |  |  | (3,126) |  |  | — |  |  | (2,562) |
Repurchase and retirement of common stock |  | (977) |  |  | (1) |  |  | — |  |  | (79,774) |  |  | — |  |  | (79,775) |
Stock-based compensation |  | — |  |  | — |  |  | 42,006 |  |  | — |  |  | — |  |  | 42,006 |
Balance, September 23, 2023 |  | 54,237 |  |  | $ | 54 |  |  | $ | 1,712,656 |  |  | $ | (1,213) |  |  | $ | (3,142) |  |  | $ | 1,708,355 |

The accompanying notes are an integral part of these consolidated condensed financial statements.
7

CIRRUS LOGIC, INC.
NOTES TO THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(unaudited)
1. Basis of Presentation
The unaudited consolidated condensed financial statements have been prepared by Cirrus Logic, Inc. (“Cirrus Logic,” “we,” “us,” “our,” or the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “Commission”). The accompanying unaudited consolidated condensed financial statements do not include complete footnotes and financial presentations. As a result, these financial statements should be read along with the audited consolidated financial statements and notes thereto for the year ended March 25, 2023, included in our Annual Report on Form 10-K filed with the Commission on May 19, 2023. In our opinion, the financial statements reflect all material adjustments, including normal recurring adjustments, necessary for a fair presentation of the financial position, operating results and cash flows for those periods presented. The preparation of financial statements in conformity with United States (“U.S.”) generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect reported assets, liabilities, revenues and expenses. Actual results could differ from those estimates and assumptions. Moreover, the results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the entire year.
2. Recently Issued Accounting Pronouncements
As of September 23, 2023, there have been no recently issued accounting pronouncements that are expected to have a material impact on our financial statements.
3. Marketable Securities
The Company’s investments have been classified as available-for-sale securities in accordance with U.S. GAAP. Marketable securities are categorized on the Consolidated Condensed Balance Sheet as "Marketable securities", within the short-term or long-term classification, as appropriate, based on the original maturity.
The following table is a summary of available-for-sale securities at September 23, 2023 (in thousands):

As of September 23, 2023 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value (Net Carrying Amount)
Corporate debt securities | $ | 69,725 |  |  | $ | 3 |  |  | $ | (1,477) |  |  | $ | 68,251 |
U.S. Treasury securities | 5,093 |  |  | — |  |  | (156) |  |  | 4,937 |
Agency discount notes | 1,510 |  |  | — |  |  | (20) |  |  | 1,490 |
Total securities | $ | 76,328 |  |  | $ | 3 |  |  | $ | (1,653) |  |  | $ | 74,678 |

The Company typically invests in highly-rated securities with original maturities generally ranging from one to three years. The Company's specifically identified gross unrealized losses of $1.7 million related to securities with total amortized costs of approximately $75.0 million at September 23, 2023. Securities in a continuous unrealized loss position for more than 12 months as of September 23, 2023 had an aggregate amortized cost of $42.8 million and an aggregate unrealized loss of $1.2 million. The Company may sell certain of its marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipated or actual changes in credit rating and duration management. The Company records an allowance for credit loss when a decline in investment market value is due to credit-related factors. When evaluating an investment for impairment, the Company reviews factors including the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, changes in market interest rates and whether it is more likely than not the Company will be required to sell the investment before recovery of the investment’s cost basis. As of September 23, 2023, the Company does not consider any of its investments to be impaired.
8

The following table is a summary of available-for-sale securities at March 25, 2023 (in thousands):

As of March 25, 2023 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value (Net Carrying Amount)
Corporate debt securities | $ | 66,753 |  |  | $ | 91 |  |  | $ | (1,825) |  |  | $ | 65,019 |
Non-U.S. government securities | 510 |  |  | — |  |  | (3) |  |  | 507 |
U.S. Treasury securities | 5,728 |  |  | 17 |  |  | (151) |  |  | 5,594 |
Agency discount notes | 385 |  |  | — |  |  | (18) |  |  | 367 |
Total securities | $ | 73,376 |  |  | $ | 108 |  |  | $ | (1,997) |  |  | $ | 71,487 |

The Company's specifically identified gross unrealized losses of $2.0 million related to securities with total amortized costs of approximately $64.0 million at March 25, 2023. Securities in a continuous unrealized loss position for more than 12 months as of March 25, 2023 had an aggregate amortized cost of $56.3 million and an aggregate unrealized loss of $1.9 million. As of March 25, 2023, the Company did not consider any of its investments to be impaired.
The cost and estimated fair value of available-for-sale securities by contractual maturities were as follows (in thousands):

| September 23, 2023 |  | March 25, 2023
| Amortized |  | Estimated |  | Amortized |  | Estimated
| Cost |  | Fair Value |  | Cost |  | Fair Value
Within 1 year | $ | 35,475 |  |  | $ | 34,636 |  |  | $ | 35,824 |  |  | $ | 34,978 |
After 1 year | 40,853 |  |  | 40,042 |  |  | 37,552 |  |  | 36,509 |
Total | $ | 76,328 |  |  | $ | 74,678 |  |  | $ | 73,376 |  |  | $ | 71,487 |

4. Fair Value of Financial Instruments
The Company has determined that the only material assets and liabilities in the Company’s financial statements that are required to be measured at fair value on a recurring basis are the Company’s cash equivalents and marketable securities portfolio. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
•Level 1 - Quoted prices in active markets for identical assets or liabilities.
•Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
The Company’s cash equivalents and marketable securities portfolio consist of money market funds, debt securities, non-U.S. government securities, U.S Treasury securities and securities of U.S. government-sponsored enterprises and are reflected on our Consolidated Condensed Balance Sheets under the headings cash and cash equivalents, marketable securities, and long-term marketable securities. The Company determines the fair value of its marketable securities portfolio by obtaining non-binding market prices from third-party pricing providers on the last day of the quarter, whose sources may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value.
The Company's long-term revolving credit facility, described in Note 8 - Revolving Credit Facility, bears interest at a base rate plus applicable margin or forward-looking secured overnight financing rate ("Term SOFR") plus 10 basis points plus applicable margin. As of September 23, 2023, there are no amounts drawn under the facility and the fair value is zero.
9

As of September 23, 2023 and March 25, 2023, the Company has no Level 3 assets or liabilities. There were no transfers between Level 1, Level 2, or Level 3 measurements for the three months ended September 23, 2023.
The following summarizes the fair value of our financial instruments at September 23, 2023 (in thousands):

| Quoted Prices in Active Markets for Identical Assets Level 1 |  | Significant Other Observable Inputs Level 2 |  | Significant Unobservable Inputs Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Cash equivalents |  |  |  |  |  |  |
Money market funds | $ | 234,017 |  |  | $ | — |  |  | $ | — |  |  | $ | 234,017 |
Available-for-sale securities |  |  |  |  |  |  |
Corporate debt securities | $ | — |  |  | $ | 68,251 |  |  | $ | — |  |  | $ | 68,251 |
U.S. Treasury securities | 4,937 |  |  | — |  |  | — |  |  | 4,937 |
Agency discount notes | — |  |  | 1,490 |  |  | — |  |  | 1,490 |
| $ | 4,937 |  |  | $ | 69,741 |  |  | $ | — |  |  | $ | 74,678 |

The following summarizes the fair value of our financial instruments at March 25, 2023 (in thousands):

| Quoted Prices in Active Markets for Identical Assets Level 1 |  | Significant Other Observable Inputs Level 2 |  | Significant Unobservable Inputs Level 3 |  | Total
Assets: |  |  |  |  |  |  |
Cash equivalents |  |  |  |  |  |  |
Money market funds | $ | 406,265 |  |  | $ | — |  |  | $ | — |  |  | $ | 406,265 |
Available-for-sale securities |  |  |  |  |  |  |
Corporate debt securities | $ | — |  |  | $ | 65,019 |  |  | $ | — |  |  | $ | 65,019 |
Non-U.S. government securities | — |  |  | 507 |  |  | — |  |  | 507 |
U.S. Treasury securities | 5,594 |  |  | — |  |  | — |  |  | 5,594 |
Agency discount notes | — |  |  | 367 |  |  | — |  |  | 367 |
| $ | 5,594 |  |  | $ | 65,893 |  |  | $ | — |  |  | $ | 71,487 |

10

5. Derivative Financial Instruments
Foreign Currency Forward Contracts
The Company uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on non-functional currency balance sheet exposures. The Company recognizes both the gains and losses on foreign currency forward contracts and the gains and losses on the remeasurement of non-functional currency assets and liabilities within "Other income (expense)" in the Consolidated Condensed Statements of Income. The Company does not apply hedge accounting to these foreign currency derivative instruments.
As of September 23, 2023, the Company held one foreign currency forward contract denominated in British Pound Sterling with a notional value of $5.3 million. The fair value of this contract was not material as of September 23, 2023.
The before-tax effect of derivative instruments not designated as hedging instruments was as follows (in thousands):

|  | Three Months Ended |  | Six Months Ended |  |
|  | September 23, |  | September 24, |  | September 23, |  | September 24, |  |
|  | 2023 |  | 2022 |  | 2023 |  | 2022 |  | Location
Gain (loss) recognized in income: |  |  |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | $ | (195) |  |  | $ | (576) |  |  | $ | (473) |  |  | $ | (795) |  |  | Other income (expense)

6. Accounts Receivable, net
The following are the components of accounts receivable, net (in thousands):

| September 23, |  | March 25,
| 2023 |  | 2023
Gross accounts receivable | $ | 272,079 |  |  | $ | 150,473 |
Allowance for doubtful accounts | (185) |  |  | — |
Accounts receivable, net | $ | 271,894 |  |  | $ | 150,473 |

The increase in accounts receivable is due to normal variations in the timing of collections and billings as well as increased sales associated with new smartphone launches during the current quarter.
7. Inventories
Inventories are comprised of the following (in thousands):

| September 23, |  | March 25,
| 2023 |  | 2023
Work in process | $ | 145,585 |  |  | $ | 116,088 |
Finished goods | 183,345 |  |  | 117,362 |
| $ | 328,930 |  |  | $ | 233,450 |

The increase in inventory balance from fiscal year-end is due to inventory build to support seasonal product launches and fulfilling our wafer purchase commitments per our long-term capacity agreement with GLOBALFOUNDRIES Singapore Pte. Ltd. (“GlobalFoundries”). See further details in Note 13 - Commitments and Contingencies.
8. Revolving Credit Facility
On July 8, 2021, the Company entered into a second amended and restated credit agreement (the “Second Amended Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto. The Second Amended Credit Agreement provides for a $300 million senior secured revolving credit facility (the “Revolving Credit Facility”). The Revolving Credit Facility matures on July 8, 2026 (the “Maturity Date”). The Revolving Credit Facility is required to be guaranteed by all of Cirrus Logic’s material domestic subsidiaries (the "Subsidiary Guarantors"). The Revolving
11

Credit Facility is secured by substantially all the assets of Cirrus Logic and any Subsidiary Guarantors, except for certain excluded assets.
On March 20, 2023, the Company, entered into the First Amendment (the "Amendment") to its Second Amended Credit Agreement, with the lending institutions party thereto and Wells Fargo Bank, National Association, as administrative agent. The Amendment updates the benchmark interest rate provisions to replace the London interbank offered rate ("LIBOR") with the Term SOFR, for the purposes of calculating interest under the terms of the Second Amended Credit Agreement.
Borrowings under the Revolving Credit Facility may, at Cirrus Logic’s election, bear interest at either (a) a base rate plus the applicable margin ("Base Rate Loans") or (b) a Term SOFR rate plus a 10 basis point credit spread adjustment plus the applicable margin. The applicable margin ranges from 0% to 0.75% per annum for Base Rate Loans and 1.00% to 1.75% per annum for SOFR Loans based on the ratio of consolidated funded indebtedness to consolidated EBITDA for the most recently ended period of four consecutive fiscal quarters (the “Consolidated Leverage Ratio”). A Commitment Fee accrues at a rate per annum ranging from 0.175% to 0.275% (based on the Consolidated Leverage Ratio) on the average daily unused portion of the commitment of the lenders.
The Revolving Credit Facility contains certain financial covenants providing that (a) the ratio of consolidated funded indebtedness (minus up to $200 million of unrestricted cash and cash equivalents available on such date) to consolidated EBITDA for the prior four consecutive quarters must not be greater than 3.00 to 1.00 (the “Consolidated Net Leverage Ratio”) and (b) the ratio of consolidated EBITDA for the prior four consecutive quarters to consolidated interest expense paid or payable in cash for the prior four consecutive quarters must not be less than 3.00 to 1.00 (the “Consolidated Interest Coverage Ratio”). The Second Amended Credit Agreement also contains customary negative covenants limiting the ability of Cirrus Logic or any Subsidiary to, among other things, incur debt, grant liens, make investments, effect certain fundamental changes, make certain asset dispositions, and make certain restricted payments. Further, the Second Amended Credit Agreement contains customary affirmative covenants, including, among others, covenants regarding the payment of taxes and other obligations, maintenance of insurance, reporting requirements, and compliance with applicable laws and regulations.
As of September 23, 2023, the Company had no amounts outstanding under the Revolving Credit Facility and was in compliance with all covenants under the Second Amended Credit Agreement.
9. Revenues
Disaggregation of revenue
We disaggregate revenue from contracts with customers by product line and ship to location of the customer. Sales are designated in the respective product line categories of Audio and High-Performance Mixed-Signal ("HPMS").
Total net sales based on the product line disaggregation criteria described above are shown in the table below (in thousands).

|  | Three Months Ended |  | Six Months Ended
|  | September 23, |  | September 24, |  | September 23, |  | September 24,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
Audio Products |  | $ | 282,855 |  |  | $ | 337,811 |  |  | $ | 478,661 |  |  | $ | 592,307 |
HPMS Products |  | 198,208 |  |  | 202,763 |  |  | 319,418 |  |  | 341,906 |
|  | $ | 481,063 |  |  | $ | 540,574 |  |  | $ | 798,079 |  |  | $ | 934,213 |

12

The geographic regions that are reviewed are China, the United States, and the rest of the world. Total net sales based on the geographic disaggregation criteria described are as follows (in thousands):

| Three Months Ended |  | Six Months Ended
| September 23, |  | September 24, |  | September 23, |  | September 24,
| 2023 |  | 2022 |  | 2023 |  | 2022
China | $ | 279,066 |  |  | $ | 350,254 |  |  | $ | 469,928 |  |  | $ | 611,745 |
United States | 4,883 |  |  | 13,102 |  |  | 7,042 |  |  | 20,299 |
Rest of World | 197,114 |  |  | 177,218 |  |  | 321,109 |  |  | 302,169 |
| $ | 481,063 |  |  | $ | 540,574 |  |  | $ | 798,079 |  |  | $ | 934,213 |

10. Restructuring and Related Costs
In the fourth quarter of fiscal year 2023, the Company decided to abandon or sublease office space at various properties worldwide to align our real property lease arrangements with our anticipated operating needs. In addition, on July 12, 2023, the Company announced a workforce reduction of approximately 5% of its global employees. This action was taken in response to overall market conditions and the impact of a new product previously scheduled for introduction in fall 2023 that did not come to market as anticipated. In the second quarter of fiscal year 2024, the Company incurred severance and other related charges of $2.3 million related to the July restructuring event, which is presented separately on the Consolidated Condensed Statement of Income. As of September 23, 2023, restructuring liabilities related to the second quarter fiscal year 2024 restructuring event were $0.2 million and restructuring liabilities related to the fourth quarter fiscal year 2023 facilities restructuring were $2.4 million. We expect the restructuring-related liabilities to be substantially paid out in cash during fiscal year 2024. Restructuring liabilities are presented within "Other accrued liabilities" of the Consolidated Condensed Balance Sheet.
11. Income Taxes
Our provision for income taxes is based on estimated effective tax rates derived from an estimate of annual consolidated earnings before taxes, adjusted for nondeductible expenses, other permanent items, and any applicable income tax credits.
The following table presents the provision for income taxes (in thousands) and the effective tax rates:

| Three Months Ended |  | Six Months Ended
| September 23, |  | September 24, |  | September 23, |  | September 24,
| 2023 |  | 2022 |  | 2023 |  | 2022
Income before income taxes | $ | 109,408 |  |  | $ | 117,797 |  |  | $ | 132,178 |  |  | $ | 172,884 |
Provision for income taxes | $ | 34,001 |  |  | $ | 30,609 |  |  | $ | 41,171 |  |  | $ | 45,989 |
Effective tax rate | 31.1 | % |  | 26.0 | % |  | 31.1 | % |  | 26.6 | %

Our income tax expense was $34.0 million and $30.6 million for the second quarters of fiscal years 2024 and 2023, respectively, resulting in effective tax rates of 31.1 percent and 26.0 percent, respectively. Our income tax expense was $41.2 million and $46.0 million for the first six months of fiscal years 2024 and 2023, respectively, resulting in effective tax rates of 31.1 percent and 26.6 percent, respectively. Our effective tax rates for the second quarters and first six months of fiscal year 2024 and 2023 were higher than the federal statutory rate primarily due to a provision in the Tax Cuts and Jobs Act of 2017 that requires research and development ("R&D") expenditures incurred in tax years beginning after December 31, 2021 to be capitalized and amortized ratably over five or fifteen years depending on the location in which the research activities are conducted, resulting in higher global intangible low-taxed income ("GILTI"), which is treated as a period cost. In addition, our effective tax rates for all periods presented were unfavorably impacted by U.S. tax rules related to refundable tax credits, including R&D expenditure credits available to us in the United Kingdom, that reduce the amount of foreign tax credits available to offset GILTI.
The Company records unrecognized tax benefits for the estimated risk associated with tax positions taken on tax returns. At September 23, 2023, the Company had unrecognized tax benefits of $32.9 million, all of which would impact the effective tax rate if recognized. The Company’s total unrecognized tax benefits are classified as “Non-current income taxes" in the Consolidated Condensed Balance Sheets. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes. As of September 23, 2023, the balance of accrued interest and penalties, net of tax, was $8.0 million.
13

On July 27, 2015, the U.S. Tax Court issued an opinion in Altera Corp. et al. v. Commissioner which concluded that the regulations relating to the treatment of stock-based compensation expense in intercompany cost-sharing arrangements were invalid. In 2016 the U.S. Internal Revenue Service appealed the decision to the U.S. Court of Appeals for the Ninth Circuit (the “Ninth Circuit”). On July 24, 2018, the Ninth Circuit issued a decision that was subsequently withdrawn and a reconstituted panel conferred on the appeal. On June 7, 2019, the Ninth Circuit reversed the decision of the U.S. Tax Court and upheld the cost-sharing regulations. On February 10, 2020, Altera Corp. filed a Petition for a Writ of Certiorari with the Supreme Court of the United States, which was denied by the Supreme Court on June 22, 2020. Although the issue is now resolved in the Ninth Circuit, the Ninth Circuit's opinion is not binding in other circuits. The potential impact of this issue on the Company, which is not located within the jurisdiction of the Ninth Circuit, is unclear at this time. We will continue to monitor developments related to this issue and the potential impact of those developments on the Company's current and prior fiscal years.
The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. Fiscal years 2017 through 2023 remain open to examination by the major taxing jurisdictions to which the Company is subject, although carry forward attributes that were generated in tax years prior to fiscal year 2017 may be adjusted upon examination by the tax authorities if they have been, or will be, used in a future period.
The Company's fiscal year 2017, 2018, and 2019 federal income tax returns are under examination by the U.S. Internal Revenue Service ("IRS"). The IRS has proposed adjustments that would increase U.S. taxable income related to transfer pricing matters with respect to our U.S. and U.K. affiliated companies. The final Revenue Agent’s Report asserts additional tax of approximately $168.3 million, excluding interest, and imposes penalties of approximately $63.7 million. The Company does not agree with the IRS's positions and intends to vigorously dispute the proposed adjustments. The Company intends to pursue resolution through the administrative process with the IRS Independent Office of Appeals and is awaiting the scheduling of an opening conference. If necessary, the Company will seek resolution through judicial remedies. The Company expects it could take a number of years to reach resolution on these matters. Although the final resolution of these matters is uncertain, the Company believes adequate amounts have been reserved for any adjustments to the provision for income taxes that may ultimately result. However, if the IRS prevails in these matters, the amount of assessed tax, interest, and penalties, if any, could be material and may have an adverse impact on our financial position, results of operations, and cash flows in future periods. The Company is not under an income tax audit in any other major taxing jurisdiction.
12. Net Income Per Share
Basic net income per share is based on the weighted effect of common shares issued and outstanding and is calculated by dividing net income by the basic weighted average shares outstanding during the period. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares used in the basic net income per share calculation, plus the equivalent number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares outstanding. These potentially dilutive items consist primarily of outstanding stock options and restricted stock grants.
The following table details the calculation of basic and diluted earnings per share for the three and six months ended September 23, 2023 and September 24, 2022 (in thousands, except per share amounts):

| Three Months Ended |  | Six Months Ended
| September 23, |  | September 24, |  | September 23, |  | September 24,
| 2023 |  | 2022 |  | 2023 |  | 2022
Numerator: |  |  |  |  |  |  |
Net income | $ | 75,407 |  |  | $ | 87,188 |  |  | $ | 91,007 |  |  | $ | 126,895 |
Denominator: |  |  |  |  |  |  |
Weighted average shares outstanding | 54,503 |  |  | 55,726 |  |  | 54,683 |  |  | 56,002 |
Effect of dilutive securities | 1,775 |  |  | 1,692 |  |  | 1,770 |  |  | 1,618 |
Weighted average diluted shares | 56,278 |  |  | 57,418 |  |  | 56,453 |  |  | 57,620 |
Basic earnings per share | $ | 1.38 |  |  | $ | 1.56 |  |  | $ | 1.66 |  |  | $ | 2.27 |
Diluted earnings per share | $ | 1.34 |  |  | $ | 1.52 |  |  | $ | 1.61 |  |  | $ | 2.20 |

The weighted outstanding shares excluded from our diluted calculation for the three and six months ended September 23, 2023 were 393 thousand and 364 thousand, respectively, as the shares were anti-dilutive. The weighted
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outstanding shares excluded from our diluted calculation for the three and six months ended September 24, 2022 were 265 thousand and 288 thousand, respectively, as the shares were anti-dilutive.
13. Commitments and Contingencies
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 to provide the Company a wafer capacity commitment and wafer pricing for Company products for calendar years 2022-2026 (the “Commitment Period”).
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 $36 million as of September 23, 2023, and is recorded in "Other current assets" and "Other assets" on the Consolidated Condensed 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 will be credited back to the Company as a portion of the price of wafers purchased, beginning in the Company's second fiscal quarter of 2024. The balance of the prepayment is $174 million at September 23, 2023, and is currently recorded in "Long-term prepaid wafers" and "Prepaid wafers" on the Consolidated Condensed Balance Sheets.
Lease Agreement
In the second quarter of fiscal year 2024, the Company commenced an 11-year operating lease for corporate office space in Chandler, Arizona. As a result, the Company recognized a liability of $17 million for future lease payments and a corresponding right-of-use lease asset. Lease liabilities and right-of-use lease assets are presented separately on the Consolidated Condensed Balance Sheets as of September 23, 2023.
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 in order 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. However, we are engaged in various legal actions in the normal course of business. There can be no assurances in light of the inherent uncertainties involved in any potential legal proceedings, some of which are beyond our control, and an adverse outcome in any legal proceeding could be material to our results of operations or cash flows for any particular reporting period.
15. Stockholders' Equity
Common Stock
The Company issued a net 0.1 million shares of common stock for both the three and six months ended September 23, 2023, and 0.1 million for both the three and six months ended September 24, 2022, respectively, pursuant to the Company's equity incentive plans.
Share Repurchase Program
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 (deficit) in the Consolidated Condensed Statements of Stockholders' Equity. Disclosure of repurchased amounts and related average costs exclude the impact of excise taxes.
In January 2021, the Board of Directors authorized the repurchase of $350 million of the Company’s common stock. During the three months ended June 24, 2023, the Company completed share repurchases under the 2021 authorization, leaving
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no remaining authorization under this program. In July 2022, the Board of Directors authorized the repurchase of up to $500 million of the Company's common stock. A s of September 23, 2023, a pproximately $78.0 million of the Company's common stock has been repurchased under the 2022 share repurchase authorization, leaving approximately $422 million available for repurchase. During the three months ended September 23, 2023, the Company repurchased 0.5 million shares of the Company's common stock under the 2022 authorization for $40.6 million, at an average cost of $79.45 per share. During the six months ended September 23, 2023, the Company repurchased 1.0 million shares of the Company's common stock under the combined 2021 and 2022 authorizations for $79.1 million, at an average cost of $80.95 per share.
16. Segment Information
We determine our operating segments in accordance with FASB guidelines. Our Chief Executive Officer (“CEO”) has been identified as the chief operating decision maker under these guidelines.
The Company operates and tracks its results in one reportable segment, but reports revenue in two product lines, Audio and HPMS. Our CEO receives and uses enterprise-wide financial information to assess financial performance and allocate resources, rather than detailed information at a product line level. Additionally, our product lines have similar characteristics and customers. They share support functions such as sales, public relations, supply chain management, various research and development and engineering support, in addition to the general and administrative functions of human resources, legal, finance and information technology. Therefore, there is no complete, discrete financial information maintained for these product lines. Revenue by product line is disclosed in Note 9 - Revenues.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read along with the unaudited consolidated condensed financial statements and notes thereto included in Item 1 of this Quarterly Report on Form 10-Q, as well as the audited consolidated financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations for the fiscal year ended March 25, 2023, contained in our fiscal year 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “Commission”) on May 19, 2023. We maintain a website at investor.cirrus.com, which makes available free of charge our most recent annual report and all other filings we have made with the Commission.
Special Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q including Management’s Discussion and Analysis of Financial Condition and Results of Operations and certain information incorporated herein by reference contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"). These forward-looking statements are based on expectations, estimates, forecasts and projections and the beliefs and assumptions of our management as of the filing of this Form 10-Q. In some cases, forward-looking statements are identified by words such as “expect,” “anticipate,” “target,” “project,” “believe,” “goals,” “estimates,” “intend,” and variations of these types of words and similar expressions which are intended to identify these forward-looking statements. In addition, any statements that refer to our plans, expectations, strategies or other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned that these forward-looking statements are predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements and readers should not place undue reliance on such statements. We undertake no obligation, and expressly disclaim any duty, to revise or update publicly any forward-looking statement for any reason.
For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see “Item 1A - Risk Factors” in our 2023 Annual Report on Form 10-K filed with the Commission on May 19, 2023, and in "Part II, Item 1A - Risk Factors” within this Quarterly Report on Form 10-Q. Readers should carefully review these risk factors, as well as those identified in other documents filed by us with the Commission.
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Overview
Cirrus Logic, Inc. (“Cirrus Logic,” “We,” “Us,” “Our,” or the “Company”) is a leader in low-power, high-precision mixed-signal processing solutions that create innovative user experiences for the world’s top mobile and consumer applications.
The Company remains committed to our three-pronged strategy for growing our business: first, maintaining our leadership position in smartphone audio; second, increasing HPMS content in smartphones; and third, leveraging our strength in audio and HPMS to expand into additional applications and markets with new and existing components.
During the second quarter of fiscal year 2024, the Company recorded the financial impact of the disposition of wafers associated with the new HPMS product previously scheduled for introduction in fall 2023, that did not come to market as anticipated. The disposition did not have a material financial impact. While this product was intended to be manufactured at GlobalFoundries as part of our Capacity Reservation Agreement, the agreement allows for wafer allocation flexibility within our product portfolio. As a result, these wafers are being reallocated to other products that utilize the same underlying technology, including amplifiers, haptic drivers, and battery and power integrated circuits (ICs). We continue to focus on our long-term strategy to drive content expansion with this customer as we pursue a variety of opportunities for both the next generation of our existing components as well as new products.
Critical Accounting Policies and Estimates
Our discussion and analysis of the Company’s financial condition and results of operations are based upon the unaudited consolidated condensed financial statements included in this report, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts. We evaluate the estimates on an on-going basis. We base these estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions.
There have been no significant changes during the three and six months ended September 23, 2023, to the information provided under the headings “Critical Accounting Estimates” and "Summary of Significant Accounting Policies" included in our fiscal year 2023 Annual Report on Form 10-K for the fiscal year ended March 25, 2023.
Recently Issued Accounting Pronouncements
For a discussion of recently issued accounting pronouncements, refer to Note 2 of the Notes to the Consolidated Condensed Financial Statements.
Results of Operations
Our fiscal year is the 52- or 53-week period ending on the last Saturday in March. Fiscal year 2024 is a 53-week fiscal year, including a 14-week fiscal third quarter. Fiscal year 2023 was a 52-week fiscal year.
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The following table summarizes the results of our operations for the first three and six months of fiscal years 2024 and 2023, respectively, as a percentage of net sales. All percentage amounts were calculated using the underlying data in thousands, unaudited:

| Three Months Ended |  | Six Months Ended
| September 23, |  | September 24, |  | September 23, |  | September 24,
| 2023 |  | 2022 |  | 2023 |  | 2022
Net sales | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
Gross margin | 51 | % |  | 50 | % |  | 51 | % |  | 51 | %
Research and development | 22 | % |  | 21 | % |  | 26 | % |  | 24 | %
Selling, general and administrative | 7 | % |  | 7 | % |  | 9 | % |  | 9 | %
Restructuring and related costs | — | % |  | — | % |  | — | % |  | — | %
Income from operations | 22 | % |  | 22 | % |  | 15 | % |  | 18 | %
Interest income | 1 | % |  | — | % |  | 1 | % |  | 1 | %
Interest expense | — | % |  | — | % |  | — | % |  | — | %
Other income (expense) | — | % |  | — | % |  | — | % |  | — | %
Income before income taxes | 23 | % |  | 22 | % |  | 16 | % |  | 19 | %
Provision for income taxes | 7 | % |  | 6 | % |  | 5 | % |  | 5 | %
Net income | 16 | % |  | 16 | % |  | 11 | % |  | 14 | %

Net Sales
Net sales for the second quarter of fiscal year 2024 decreased $59.5 million, or 11 percent, to $481.1 million from $540.6 million in the second quarter of fiscal year 2023. Net sales from our audio products decreased $55.0 million, primarily driven by continued weakness in sales of general market products and a reduction in components shipping in smartphones. Net sales from HPMS products decreased $4.6 million for the quarter versus the second quarter of fiscal year 2023, primarily due to a decline in general market sales.
Net sales for the first six months of fiscal year 2024 decreased $136.1 million, or 15 percent, to $798.1 million from $934.2 million for the first six months of fiscal year 2023. Net sales from our audio products decreased $113.6 million, primarily driven by continued weakness in general market sales and, to a lesser extent, a reduction in components shipping in smartphones. Net sales from HPMS products decreased $22.5 million for the year versus the first six months of fiscal year 2023, primarily due to a reduction in components shipping in smartphones.
International sales, including sales to U.S.-based end customers that manufacture products through contract manufacturers or plants located overseas, were approximately 99 percent and 98 percent of net sales for the second quarters of fiscal years 2024 and 2023, respectively, and 99 percent and 98 percent for the first six months of fiscal years 2024 and 2023, respectively. Our sales are denominated primarily in U.S. dollars.
Since the components we produce are largely proprietary, we consider our end customer to be the entity specifying the use of our component in their design. These end customers may purchase our products directly from us, through distributors, or third-party manufacturers contracted to produce their designs. For the second quarter of fiscal years 2024 and 2023, our ten largest end customers represented approximately 95 percent and 91 percent of our net sales, respectively, and 94 percent and 90 percent of our net sales for the first six months of fiscal years 2024 and 2023, respectively.
We had one end customer, Apple Inc., that purchased through multiple contract manufacturers and represented approximately 88 percent and 82 percent of the Company’s total net sales for the second quarter of fiscal years 2024 and 2023, respectively, and 86 percent and 81 percent for the first six months of fiscal years 2024 and 2023, respectively.
No other end customer or distributor represented more than 10 percent of net sales for the three and six months ended September 23, 2023 or September 24, 2022.
For more information, please see "Part II, Item 1A - Risk Factors" — “We depend on a limited number of customers and distributors for a substantial portion of our sales, and the loss of, or a significant reduction in orders from, or pricing on products sold to, any key customer or distributor could significantly reduce our sales and our profitability.”
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Gross Margin
Gross margin was 51.3 percent in the second quarter of fiscal year 2024, up from 50.2 percent in the second quarter of fiscal year 2023. The increase was primarily due to reduced supply chain costs and inventory reserves, partially offset by a less favorable product mix.
Gross margin was 50.9 percent for the first six months of fiscal year 2024, up from 50.7 percent for the first six months of fiscal year 2023 due to reduced supply chain costs and the benefit of lower inventory reserves, mostly offset by a less favorable product mix.
Research and Development Expense
Research and development expense for the second quarter of fiscal year 2024 was $104.2 million, a decrease of $11.3 million, from $115.5 million in the second quarter of fiscal year 2023. Significant drivers of the decrease included reduced amortization of acquisition intangibles expense, increased R&D incentives, lower variable compensation costs, reduced acquisition-related and product development costs, partially offset by higher employee-related and stock-based compensation expenses for the quarter.
Research and development expense for the first six months of fiscal year 2024 was $210.4 million, a decrease of $14.8 million, from $225.2 million for the first six months of fiscal year 2023 primarily due to reduced amortization of acquisition intangibles expense, increased R&D incentives, lower variable compensation costs, reduced product development and acquisition-related costs, partially offset by higher employee-related and stock-based compensation expenses for the period.
Selling, General and Administrative Expense
Selling, general and administrative expense for the second quarter of fiscal year 2024 was $34.3 million, a decrease of $5.3 million, from $39.6 million in the second quarter of fiscal year 2023, primarily due to lower variable compensation costs and employee-related expenses.
Selling, general and administrative expense for the first six months of fiscal year 2024 was $69.7 million, a decrease of $8.5 million, from $78.2 million for the first six months of fiscal year 2023, primarily due to lower variable compensation costs and employee-related expenses for the period.
Restructuring and Related Costs
Restructuring costs for the second quarter and first six months of fiscal year 2024 were $2.3 million. These costs were primarily related to workforce reduction actions previously disclosed. See Note 10 - Restructuring and Related Costs for additional information.
Interest Income
The Company reported interest income of $4.0 million and $8.8 million, for the three and six months ended September 23, 2023, respectively and $1.5 million and $2.1 million for the three and six months ended September 24, 2022, respectively. Interest income increased in the current period due to higher yields on combined average cash, cash equivalents and marketable securities balances, compared to the prior period.
Interest Expense
The Company reported interest expense of $0.2 million and $0.5 million for the three and six months ended September 23, 2023, respectively and $0.2 million and $0.5 million for the three and six months ended September 24, 2022, respectively. Interest expense consists primarily of commitment fees associated with the Company's Revolving Credit Facility (see Note 8 - Revolving Credit Facility).
Other Income (Expense)
For the three and six months ended September 23, 2023, the Company reported other expense of $0.1 million and other income of $0.3 million, respectively, and $0.3 million and $0.8 million in other income for the three and six months ended
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September 24, 2022, respectively. This activity primarily related to remeasurement on foreign currency denominated monetary assets and liabilities.
Income Taxes
Our provision for income taxes is based on estimated effective tax rates derived from an estimate of annual consolidated earnings before taxes, adjusted for nondeductible expenses, other permanent items and any applicable credits.
The following table presents the provision for income taxes (in thousands) and the effective tax rates:

| Three Months Ended |  | Six Months Ended
| September 23, |  | September 24, |  | September 23, |  | September 24,
| 2023 |  | 2022 |  | 2023 |  | 2022
Income before income taxes | $ | 109,408 |  |  | $ | 117,797 |  |  | $ | 132,178 |  |  | $ | 172,884 |
Provision for income taxes | $ | 34,001 |  |  | $ | 30,609 |  |  | $ | 41,171 |  |  | $ | 45,989 |
Effective tax rate | 31.1 | % |  | 26.0 | % |  | 31.1 | % |  | 26.6 | %

Our income tax expense for the second quarter of fiscal year 2024 was $34.0 million compared to $30.6 million for the second quarter of fiscal year 2023, resulting in effective tax rates of 31.1 percent and 26.0 percent, respectively. Our income tax expense was $41.2 million and $46.0 million for the first six months of fiscal years 2024 and 2023, respectively, resulting in effective tax rates of 31.1 percent and 26.6 percent, respectively. Our effective tax rates for the second quarters and first six months of fiscal year 2024 and 2023 were higher than the federal statutory rate primarily due to a provision in the Tax Cuts and Jobs Act of 2017 that requires R&D expenditures incurred in tax years beginning after December 31, 2021 to be capitalized and amortized ratably over five or fifteen years depending on the location in which the research activities are conducted, resulting in higher global intangible low-taxed income ("GILTI"), which is treated as a period cost. In addition, our effective tax rates for both periods presented were unfavorably impacted by U.S. tax rules related to refundable tax credits, including R&D expenditure credits available to us in the United Kingdom, that reduce the amount of foreign tax credits available to offset GILTI.
Liquidity and Capital Resources
We require cash to fund our operating expenses and working capital requirements, including outlays for inventory, capital expenditures, share repurchases, and strategic acquisitions. Our principal sources of liquidity are cash on hand, cash generated from operations, cash generated from the sale and maturity of marketable securities, and available borrowings under our $300 million Revolving Credit Facility.
Cash used in or generated from our operating activities is net income adjusted for certain non-cash items and changes in working capital. Cash used in operations was $62.5 million for the first six months of fiscal year 2024 versus $110.4 million generated for the corresponding period of fiscal year 2023. The cash flow used in operations during the first six months of fiscal year 2024 was related to the cash components of our net income and a $216.5 million unfavorable change in working capital, primarily as a result of an increase in accounts receivables (see Note 6) and inventory and a decrease in acquisition-related liabilities, partially offset by prepaid wafer usage (related to the Capacity Reservation Agreement) beginning in the second quarter of fiscal year 2024. The Company anticipates inventory to remain at increased levels during fiscal year 2024 as we balance product demand and wafer purchase commitments. The cash flow from operations during the corresponding period of fiscal year 2023 was related to the cash components of our net income and a $84.9 million unfavorable change in working capital, primarily as a result of an increase in accounts receivables and inventory for the period.
Net cash used in investing activities was $23.8 million during the first six months of fiscal year 2024 versus $16.9 million during the first six months of fiscal year 2023. The cash used in investing activities in the first six months of fiscal year 2024 was related to capital expenditures of $20.8 million and net purchases of marketable securities of $2.9 million. The cash used in investing activities in the corresponding period in fiscal year 2023 was related to capital expenditures and technology investments of $17.5 million, partially offset by net sales of marketable securities of $0.6 million.
Net cash used in financing activities was $81.6 million during the first six months of fiscal year 2024 and was primarily associated with stock repurchases for the period of $79.1 million. The cash used in financing activities during the
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first six months of fiscal year 2023 of $108.3 million was primarily associated with stock repurchases during the period of $106.4 million.
Our future capital requirements will depend on many factors, including the rate of sales growth, market acceptance of our products, the timing and extent of research and development projects, potential future acquisitions of companies or technologies, inventory build, and commitments under the Capacity Reservation Agreement with GlobalFoundries (discussed further in Note 13 - Commitments and Contingencies of the Notes to the Consolidated Condensed Financial Statements). We believe our expected future cash earnings, existing cash, cash equivalents, investment balances, and available borrowings under our Revolving Credit Facility will be sufficient to meet our capital requirements both domestically and internationally, in the short-term (i.e. the next 12 months) and in the long-term, although we could be required, or could elect, to seek additional funding prior to that time.
Revolving Credit Facility
On July 8, 2021, the Company entered into a second amended and restated credit agreement (the “Second Amended Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto. The Second Amended Credit Agreement provides for a $300 million senior secured revolving credit facility (the “Revolving Credit Facility”). The Revolving Credit Facility matures on July 8, 2026 (the “Maturity Date”). The Revolving Credit Facility is required to be guaranteed by all of Cirrus Logic’s material domestic subsidiaries ("Subsidiary Guarantors"). The Revolving Credit Facility is secured by substantially all the assets of Cirrus Logic and any Subsidiary Guarantors, except for certain excluded assets.
On March 20, 2023, the Company, entered into the First Amendment (the "Amendment") to its Second Amended Credit Agreement, with the lending institutions party thereto and Wells Fargo Bank, National Association, as administrative agent. The Amendment updates the benchmark interest rate provisions to replace the London interbank offered rate ("LIBOR") with the forward-looking secured overnight financing rate ("Term SOFR"), for the purposes of calculating interest under the terms of the Second Amended Credit Agreement.
As of September 23, 2023, the Company had no amounts outstanding under the Revolving Credit Facility and was in compliance with all covenants under the Second Amended Credit Agreement.
See Note 8 — Revolving Credit Facility for additional information including material terms and related covenants.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risks associated with interest rates on our debt securities, currency movements on non-functional currency assets and liabilities, and the effect of market factors on the value of our marketable securities. We assess these risks on a regular basis and have established policies that are designed to protect against the adverse effects of these and other potential exposures. We use forward contracts to manage exposure to foreign currency exchange risk attributable to certain non-U.S. dollar balance sheet exposures. Gains and losses from these foreign currency forward contracts are recognized currently in earnings along with the gains and losses resulting from remeasuring the underlying exposures. For further description of our market risks, see “Part II – Item 7A – Quantitative and Qualitative Disclosures about Market Risk” in our fiscal year 2023 Annual Report on Form 10-K filed with the Commission on May 19, 2023. For related financial statement impact see Note 5 - Derivative Financial Instruments.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of disclosure controls and procedures
As required by Rule 13a-15(b) of the Exchange Act, we have evaluated, under the supervision and with the participation of our management, including our chief executive officer (CEO) and chief financial officer (CFO), the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the Commission rules and forms and (ii) accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.
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Based upon the evaluation, our management, including our CEO and CFO, has concluded that our disclosure controls and procedures were effective as of September 23, 2023.
Changes in control over financial reporting
There has been no change in the Company’s internal control over financial reporting during the quarter ended September 23, 2023, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Information regarding legal proceedings to which the Company is a party is set forth in Note 14 – Legal Matters to our unaudited consolidated condensed financial statements and is incorporated herein by reference.
ITEM 1A. RISK FACTORS
In evaluating all forward-looking statements, you should specifically consider risk factors that may cause actual results to vary from those contained in the forward-looking statements. Various risk factors associated with our business are included in our Annual Report on Form 10-K for the year ended March 25, 2023, as filed with the Commission on May 19, 2023, and available at www.sec.gov. Other than as set forth below, there have been no material changes to those risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended March 25, 2023.
We depend on a limited number of customers and distributors for a substantial portion of our sales, and the loss of, or a significant reduction in orders from, or pricing on products sold to, any key customer or distributor could significantly reduce our sales and our profitability.
While we generate sales from a broad base of customers worldwide, the loss of any of our key customers, or a significant reduction in sales or selling prices to any key customer, or reductions in selling prices made to retain key customer relationships, would significantly reduce our revenue, margins and earnings and adversely affect our business. For the second quarter of fiscal years 2024 and 2023, our ten largest end customers represented approximately 95 percent and 91 percent of our net sales, respectively. For the first six month periods of fiscal years 2024 and 2023, our ten largest end customers represented approximately 94 percent and 90 percent of our net sales, respectively. We had one end customer, Apple Inc., that purchased through multiple contract manufacturers and represented approximately 88 percent and 82 percent of the Company’s total net sales for the second quarter of fiscal years 2024 and 2023, respectively and 86 percent and 81 percent for the first six months of fiscal years 2024 and 2023, respectively. No other end customer or distributor represented more than 10 percent of net sales for the three and six months ended September 23, 2023, or September 24, 2022.
We may not be able to maintain or increase sales to certain of our key customers for a variety of reasons, including:
- most of our customers can stop incorporating our products into their own products with limited notice to us and suffer little or no penalty;
- our agreements with our customers typically do not require them to purchase a minimum quantity of our products;
- many of our customers have pre-existing or concurrent relationships with our current or potential competitors that may affect the customers’ decisions to purchase our products;
- many of our customers have sufficient resources to internally develop technology solutions and semiconductor components that could replace the products that we currently supply in our customers’ end products;
- our customers face intense competition from other manufacturers that do not use our products;
- our customers regularly evaluate alternative sources of supply in order to diversify their supplier base, which increases their negotiating leverage with us and their ability to either obtain or dual-source components from other suppliers; and
- our current customers may be hesitant in some cases to award new business to us based on their desire to manage their supply
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chain risks around any potential over-dependence on a supplier or supply chain.
In addition, our dependence on a limited number of key customers may make it easier for them to pressure us on price reductions or to not accept price increases resulting from unexpected or additional cost increases or fees associated with our suppliers. We have experienced pricing pressure from certain key customers, and we expect that the average selling prices ("ASPs") for certain of our products will decline from time to time, potentially reducing our revenue, margins, and earnings.
Our key customer relationships often require us to develop new products that may involve significant technological challenges. Our customers frequently place considerable pressure on us to meet tight development schedules. In addition, we have entered, and may again enter in the future, into customer agreements providing for exclusivity periods during which we may only sell specified products or technology to a specific customer. Even without exclusivity periods, the products that we develop are often specific to our customer's system architecture and frequently cannot be sold to other customers. Accordingly, we have in the past and may in the future devote a substantial amount of resources to strategic relationships, which could detract from or delay our completion of other important development projects or the development of next-generation products and technologies, and notwithstanding our efforts, our customers may not be obligated to purchase new products that we develop for them, which could impact our operating results, financial condition, and cash flows. For example, in April 2023, we were informed that a new product that we had developed for a key customer for introduction in the fall of calendar 2023 was no longer expected to come to market as planned.
Our reliance on certain customers may continue to increase, which could heighten the risks associated with having key customers, including making us more vulnerable to significant reductions in revenue, margins, and earnings; pricing pressure; and other adverse effects on our business.
Because we depend on subcontractors internationally to perform key manufacturing functions for us, we are subject to political, economic, climate and natural disaster risks that could disrupt the fabrication, assembly, packaging, or testing of our products.
We depend on third-party subcontractors, primarily in Asia, for the fabrication, assembly, packaging, and testing of most of our products. International operations may be subject to a variety of risks, including political instability, global health conditions, currency controls, exchange rate fluctuations, changes in import/export regulations, tariff and freight rates, as well as the risks of natural disasters such as earthquakes, tsunamis, and floods. The potential physical impacts of climate change, including high heat events, power or water shortages, fires, rising sea levels, changes in storm patterns or intensities, or other extreme weather conditions, are uncertain and could impact operations at our subcontractors. Any disruption to our manufacturing cycle could adversely affect our operations and financial results.
Although we seek to reduce our dependence on any one subcontractor, the substantial majority of our semiconductor wafers are manufactured by TSMC at fabs in Taiwan, and GlobalFoundries in Singapore and Germany. This concentration of subcontractors and manufacturing operations, subjects us to the risks of conducting business internationally, including associated political and economic conditions. If we experience manufacturing problems at a particular location, or a supplier is unable to continue operating due to financial difficulties, natural disasters, political or economic turmoil or conflict, or other reasons, we would be required to transfer manufacturing to a backup supplier. Transferring from a primary supplier to another facility would likely result in increased production costs and a delay in production. Further, such a transition may not be possible, particularly in a supply constrained environment. There are only a few foundries that are currently available for certain advanced processing technologies that we utilize or may utilize. As a result, delays in our production or shipping by the parties to whom we outsource these functions could reduce our sales, damage our customer relationships, and damage our reputation in the marketplace, any of which could harm our business, results of operations, and financial condition.
For example, we rely on several third-party suppliers located in Taiwan. Any deterioration in the social, political, or economic conditions in Taiwan, particularly as it relates to China-Taiwan relations, may disrupt our business operations and materially and adversely affect our results of operations. Similarly, our operations also could be harmed, and our costs could increase, if Russia’s invasion of Ukraine results in a shortage of materials that our suppliers require to manufacture our products.
In addition, we are currently working with a supplier that is headquartered in Israel on the development of additional manufacturing alternatives. The recent declaration of war by Israel against Hamas, and the resulting actions that may be taken by governments in response to the war, could potentially impact or delay the supplier's ability to provide timely engineering support that may be required to advance our efforts to develop future manufacturing alternatives.
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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
The following table provides information about purchases of equity securities that are registered by us pursuant to Section 12 of the Exchange Act during the three months ended September 23, 2023 (in thousands, except per share amounts):

Monthly Period | Total Number of Shares Purchased |  | Average Price Paid Per Share |  | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |  | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1)
June 25, 2023 - July 22, 2023 | — |  |  | $ | — |  |  | — |  |  | $ | 462,625 |
July 23, 2023 - August 19, 2023 | 402 |  |  | $ | 79.71 |  |  | 402 |  |  | $ | 430,554 |
August 20, 2023 - September 23, 2023 | 109 |  |  | $ | 78.48 |  |  | 109 |  |  | $ | 422,049 |
Total | 511 |  |  | $ | 79.45 |  |  | 511 |  |  | $ | 422,049 |

(1) The Company currently has one active share repurchase authorization, the $500 million in share repurchases authorized by the Board of Directors in July 2022. Share repurchases are to be funded from existing cash and intended to be effected from time to time in accordance with applicable securities laws through the open market, including pursuant to a Rule 10b5-1 trading plan, or in privately negotiated transactions. The timing of repurchases and the actual amount purchased depend on a variety of factors including general market and economic conditions and other corporate considerations. The authorization does not have an expiration date, does not obligate the Company to repurchase any particular amount of common stock, and may be modified or suspended at any time at the Company's discretion. The Company repurchased 0.5 million shares of its common stock for an aggregate of $40.6 million during the second quarter of fiscal year 2024, under the 2022 share repurchase authorization. These shares were repurchased in the open market and were funded from existing cash. All shares of our common stock that were repurchased were retired as of September 23, 2023.
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 (deficit) in the Consolidated Condensed Statements of Stockholders' Equity. Disclosure of repurchased amounts and related average costs exclude the impact of excise taxes.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
Trading Arrangements
None of our directors or Section 16 officers entered into or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the second quarter of fiscal year 2024.
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ITEM 6. EXHIBITS
The following exhibits are filed as part of or incorporated by reference into this Report:

Number | Description
3.1 | Certificate of Incorporation of Registrant, filed with the Delaware Secretary of State on August 26, 1998 (1)
3.2 | Amended and Restated Bylaws of Registrant (2)
10.1 | Cirrus Logic, Inc. Executive Severance and Change of Control Plan, as amended and restated on August 24, 2023
31.1 | Certification of Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2 | Certification of Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1* | Certification of Chief Executive Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2* | Certification of Chief Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH | Inline XBRL Taxonomy Extension Schema Document
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

1.Incorporated by reference from Registrant’s Report on Form 10-K for the fiscal year ended March 31, 2001, filed with the Commission on June 22, 2001 (Registration No. 000-17795).
2.Incorporated by reference from Registrant’s Report on Form 8-K filed with the Commission on March 8, 2023 (Registration No. 000-17795).
* The certifications attached as Exhibits 32.1 and 32.2 accompanying this Quarterly Report on Form 10-Q are deemed furnished and not filed with the SEC and are not to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
CIRRUS LOGIC, INC.

Date: | November 2, 2023 | /s/ Venk Nathamuni |
|  | Venk Nathamuni |
|  | Chief Financial Officer and Principal Accounting Officer

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