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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K
x     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended March 29, 2014
¨     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. 6 th Street, Austin, TX 78701
(Address of principal executive offices)
Registrant’s telephone number, including area code: (512) 851-4000
Securities registered pursuant to Section 12(b) of the Act:
None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $0.001 Par Value
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    YES   þ         NO   ¨
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    YES   ¨         NO     þ
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   þ         NO   ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, 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   þ         NO   ¨
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.     ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer   þ	 	Accelerated filer   ¨	 	Non-accelerated filer   ¨	 	Smaller reporting company   ¨	
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    YES   ¨         NO   þ
The aggregate market value of the registrant’s voting and non-voting common equity held by non-affiliates was $1,114,423,592 based upon the closing price reported on the NASDAQ Global Select Market as of September 27, 2013. Stock held by directors, officers and stockholders owning 5 percent or more of the outstanding common stock were excluded as they may be deemed affiliates. This determination of affiliate status is not a conclusive determination for any other purpose.
As of May 23, 2014, the number of outstanding shares of the registrant’s common stock, $0.001 par value, was 62,058,267.
DOCUMENTS INCORPORATED BY REFERENCE
Certain information contained in the registrant’s proxy statement for its annual meeting of stockholders to be held July 28, 2014 is incorporated by reference in Part II – Item 5. and Part III of this Annual Report on Form 10-K.

 

Table of Contents
CIRRUS LOGIC, INC.
FORM 10-K
For The Fiscal Year Ended March 29, 2014
 INDEX

PART I	   	
Item 1.	 	Business	  	 	3	  	
			
Item 1A.	 	Risk Factors	  	 	7	  	
			
Item 1B.	 	Unresolved Staff Comments	  	 	22	  	
			
Item 2.	 	Properties	  	 	22	  	
			
Item 3.	 	Legal Proceedings	  	 	23	  	
			
Item 4.	 	Mine Safety Disclosures	  	 	24	  	
	
PART II	   	
			
Item 5.	 	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	  	 	24	  	
			
Item 6.	 	Selected Financial Data	  	 	27	  	
			
Item 7.	 	Management’s Discussion and Analysis of Financial Condition and Results of Operations	  	 	27	  	
			
Item 7A.	 	Quantitative and Qualitative Disclosures about Market Risk	  	 	36	  	
			
Item 8.	 	Financial Statements and Supplementary Data	  	 	37	  	
			
Item 9.	 	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	  	 	68	  	
			
Item 9A.	 	Controls and Procedures	  	 	68	  	
	
PART III	   	
			
Item 10.	 	Directors, Executive Officers and Corporate Governance	  	 	68	  	
			
Item 11.	 	Executive Compensation	  	 	69	  	
			
Item 12.	 	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	  	 	69	  	
			
Item 13.	 	Certain Relationships and Related Transactions, and Director Independence	  	 	69	  	
			
Item 14.	 	Principal Accounting Fees and Services	  	 	69	  	
	
PART IV	   	
			
Item 15.	 	Exhibits and Financial Statement Schedules	  	 	69	  	
			
	 	Signatures	  	 	72	  	
 
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 PART I
 ITEM 1.   Business 
Cirrus Logic, Inc. (“Cirrus Logic,” “We,” “Us,” “Our,” or the “Company”) develops high-precision, analog and mixed-signal integrated circuits (“ICs”) for a broad range of audio and energy markets. Building on our diverse analog and mixed-signal patent portfolio, Cirrus Logic delivers highly optimized products for consumer and professional audio, automotive entertainment, and targeted industrial applications including energy control, energy measurement, light emitting diode (“LED”) lighting and energy exploration.
We were incorporated in California in 1984, became a public company in 1989 and were reincorporated in the State of Delaware in February 1999. Our primary facility housing engineering, sales and marketing, and administrative functions is located in Austin, Texas. We also serve customers from sales offices in the United States, Europe and Asia, including the People’s Republic of China, Hong Kong, South Korea, Japan, Singapore, Taiwan and the United Kingdom. Our common stock, which has been publicly traded since 1989, is listed on the NASDAQ Global Select Market under the symbol CRUS.
We maintain a website with the address www.cirrus.com . We are not including the information contained on our website as a part of, or incorporating it by reference into, this Annual Report on Form 10-K. We make available free of charge through our website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and amendments to these reports, as soon as reasonably practicable after we electronically file such material with, or furnish such material to, the Securities and Exchange Commission (the “SEC”). To receive a free copy of this Annual Report on Form 10-K, please forward your written request to Cirrus Logic, Inc., Attn: Investor Relations, 800 W. 6 th Street, Austin, Texas 78701, or via email at Investor.Relations@cirrus.com. In addition, the SEC maintains a website at www.sec.gov that contains reports, proxy and information statements filed electronically with the SEC by Cirrus Logic.
Background of the Semiconductor Industry
In general, the semiconductor industry produces three types of products: analog, digital and mixed-signal. Analog semiconductors process a continuous range of signals that can represent functions such as temperature, speed, pressure and sound. Digital semiconductors process information represented by discrete values, for example, 0s and 1s. Mixed-signal semiconductors combine analog and digital circuits in a single product. The design of the analog component of a mixed-signal IC is particularly complex and difficult, and requires experienced engineers to optimize speed, power and resolution within standard manufacturing processes.
The convergence and sophistication of our customers’ products, such as portable audio applications, home entertainment and automotive audio devices, is made possible in part by advances in semiconductor technology. Semiconductor companies are attempting to differentiate their products by offering new features and functionality to customers, while at the same time shrinking product sizes, reducing power consumption, and lowering overall system costs.
Due to the extremely high costs involved in developing and operating a wafer fabrication facility, many semiconductor companies, including Cirrus Logic, rely on third party foundries to manufacture their ICs. We believe that our fabless manufacturing model significantly reduces our capital requirements and allows us to focus our resources on the design, development, and marketing of our ICs.
Segments
We determine our operating segments in accordance with Financial Accounting Standards Board (“FASB”) guidelines. Our Chief Executive Officer (“CEO”) has been identified as the chief operating decision maker as defined by these guidelines.
The Company operates and tracks its results in one reportable segment, but reports revenue performance in two product lines, which currently are audio and energy. 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 operations support functions such as sales, public relations, supply chain management, various research and development
 
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and engineering support, in addition to the general and administrative functions of human resources, legal, finance and information technology. Therefore, there is no discrete financial information maintained for these product lines. For fiscal years 2014, 2013, and 2012, audio product sales were $667.7 million, $754.8 million, and $350.7 million, respectively. For fiscal years 2014, 2013, and 2012, energy product sales were $46.6 million, $55.0 million, and $76.1 million, respectively.
See Note 18 - Segment Information, of the Notes to Consolidated Financial Statements contained in Item 8 for further details including sales and property, plant and equipment, net, by geographic locations.
Company Strategy
Cirrus Logic targets growing markets where we can leverage our expertise in analog and digital signal processing to solve complex problems. Our approach has been to develop custom and catalog components that embody our latest innovations, which we use to engage key players in a particular market or application. We focus on building strong engineering relationships with the design teams at these customers and work to develop highly differentiated products that address their specific needs using our own intellectual property (“IP”), sometimes in combination with theirs. When we have been successful with this approach, one initial design win has often expanded into additional products. This strategy gives us the opportunity to increase our content per box with a customer over time through the incorporation of new features, the integration of other system components into our products and the addition of new components.
Markets and Products
The following provides a detailed discussion regarding our audio and energy product lines:
Audio Products :  High-precision analog and mixed-signal components, as well as audio digital signal processor (“DSP”) products for consumer, professional and automotive entertainment markets.
Energy Products :  High-precision analog and mixed-signal components for energy-related applications, such as LED lighting, energy measurement, energy exploration and energy control systems.
AUDIO PRODUCTS
We are a recognized leader in analog and mixed-signal audio converter and audio DSP products that enable today’s consumer, professional and automotive entertainment applications. Our broad portfolio of approximately 250 active proprietary audio products includes analog-to-digital converters (“ADCs”), digital-to-analog converters (“DACs”), “codecs”— chips that integrate ADCs and DACs into a single IC, digital interface ICs, volume controls, adaptive noise cancelling circuits (“ANC”) and amplifiers, as well as audio DSPs. In fiscal year 2014, the Company introduced its first line of voice processors, featuring SoundClear ® technology, for voice-enabled portable applications. Our products are used in a wide array of consumer applications, including smartphones, tablets, laptops, audio/video receivers (“AVRs”) portable media players, home theater systems, set-top boxes, portable speakers, headsets and headphones, digital camcorders and televisions. Applications for products within professional markets include digital mixing consoles, multi-track digital recorders and effects processors. Applications for products within automotive markets include amplifiers, satellite radio systems, telematics and multi-speaker car-audio systems.
ENERGY PRODUCTS
We provide high-precision analog and mixed-signal ICs for targeted energy control, energy measurement, LED lighting and energy exploration applications. We have approximately 450 active proprietary energy products which include LED driver ICs, power meter ICs, ADCs, and DACs. Our products are used in a wide array of high-precision, energy-related applications including LED retrofit lamps, digital utility meters, power supplies and energy exploration.
Customers, Marketing, and Sales
We offer approximately 700 products worldwide through both direct and indirect sales channels. Our major customers are among the world’s leading electronics manufacturers. We target both large existing and emerging
 
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growth consumer electronic and energy markets that derive value from our expertise in advanced analog and mixed-signal design processing, systems-level integrated circuit engineering and embedded software development. We derive our sales both domestically and from a variety of locations across the world, including the People’s Republic of China, the European Union, Hong Kong, Japan, South Korea, Taiwan, and the United Kingdom. Our domestic sales force includes a network of direct sales offices located in California and Texas. International sales offices and staff are located in Hong Kong, Japan, Shanghai and Shenzhen in the People’s Republic of China, Singapore, South Korea, Taiwan, and the United Kingdom. We also have sales staff located in Germany. We supplement our direct sales force with external sales representatives and distributors. Our technical support staff is located in Texas and Arizona. Our worldwide sales force provides geographically specific support to our customers and specialized selling of product lines with unique customer bases. See Note 18 — Segment Information, of the Notes to Consolidated Financial Statements contained in Item 8 for further detail and for additional disclosure regarding sales and property, plant and equipment, net, by geographic locations.
Since the components we produce are largely proprietary and generally not available from second sources, we generally 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, or distributors, or through a third party manufacturer contracted to produce their designs. For fiscal years 2014, 2013, and 2012, our ten largest end customers represented approximately 88 percent, 89 percent, and 74 percent, of our sales, respectively. For fiscal years 2014, 2013, and 2012, we had one end customer, Apple Inc., who purchased through multiple contract manufacturers and represented approximately 80 percent, 82 percent, and 62 percent, of the Company’s total sales, respectively. For fiscal year 2012, we had one distributor, Avnet Inc., who represented 15 percent, of our sales. No other customer or distributor represented more than 10 percent of net sales in fiscal years 2014, 2013, or 2012.
Manufacturing
As a fabless semiconductor company, we contract with third parties for wafer fabrication and our assembly and test operations. We use multiple wafer foundries, assembly sources and test houses in the production of our inventory. Our outsourced manufacturing strategy allows us to concentrate on our design strengths, and minimize fixed costs and capital expenditures while giving us access to advanced manufacturing facilities. It also provides the flexibility to source multiple leading-edge technologies through strategic relationships. After wafer fabrication by the foundry, third-party assembly vendors package the wafer die. The finished products are then tested before shipment to our customers. While we do have some redundancy of fabrication processes by using multiple outside foundries, any interruption of supply by one or more of these foundries could materially impact the Company. As a result, we maintain some amount of business interruption insurance to help reduce the risk of wafer supply interruption, but we are not fully insured against such risk. Our supply chain management organization is responsible for the management of all aspects of the manufacturing, assembly, and testing of our products, including process and package development, test program development, and production testing of products in accordance with our ISO-certified quality management system.
Although our products are made from basic materials (principally silicon, metals and plastics), all of which are available from a number of suppliers, capacity at wafer foundries sometimes becomes constrained. The limited availability of certain materials may impact our suppliers’ ability to meet our demand needs or impact the price we are charged. The prices of certain other basic materials, such as metals, gases and chemicals used in the production of circuits can increase as demand grows for these basic commodities. In most cases, we do not procure these materials ourselves; nevertheless, we are reliant on such materials for producing our products because our outside foundry and package and test subcontractors must procure them. To help mitigate risks associated with constrained capacity, we use multiple foundries, assembly and test sources.
Patents, Licenses and Trademarks
We rely on patent, copyright, trademark, and trade secret laws to protect our intellectual property, products, and technology. As of March 29, 2014, we held approximately 1,007 granted U.S. patents, 182 U.S. pending patent applications and various corresponding international patents and applications. Our U.S. patents expire in
 
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calendar years 2014 through 2032. While our patents are an important element of our success, our business as a whole is not dependent on any one patent or group of patents. We do not anticipate any material effect on our business due to any patents expiring in 2014, and we continue to obtain new patents through our ongoing research and development.
We have maintained U.S. federal trademark registrations for CIRRUS LOGIC, CIRRUS, Cirrus Logic logo designs, CRYSTAL, and SoundClear. These U.S. registrations may be renewed as long as the marks continue to be used in interstate commerce. We have also filed or obtained foreign registration for these marks in other countries or jurisdictions where we conduct, or anticipate conducting, international business.
To complement our own research and development efforts, we have also licensed and expect to continue to license, a variety of intellectual property and technologies important to our business from third parties.
Research and Development
We concentrate our research and development efforts on the design and development of new products for each of our principal markets. We also fund certain advanced-process technology development, as well as other emerging product opportunities. Expenditures for research and development in fiscal years 2014, 2013, and 2012 were $126.2 million, $114.1 million, and $85.7 million, respectively. Our future success is highly dependent upon our ability to develop complex new products, transfer new products to volume production, introduce them into the marketplace in a timely fashion, and have them selected for design into products of systems manufacturers. Our future success may also depend on assisting our customers with integration of our components into their new products, including providing support from the concept stage through design, launch and production ramp.
Competition
Markets for our products are highly competitive and we expect that competition will continue to increase. Our ability to compete effectively and to expand our business will depend on our ability to continue to recruit key engineering talent, execute on new product developments, persuade customers to design-in these new products into their applications, and provide lower-cost versions of existing products. We compete with other semiconductor suppliers that offer standard semiconductors, application-specific standard products and fully customized ICs, including embedded software, chip and board-level products.
While no single company competes with us in all of our product lines, we face significant competition in all markets where our products are available. We expect to face additional competition from new entrants in our markets, which may include both large domestic and international IC manufacturers and smaller, emerging companies.
The principal competitive factors in our markets include: time to market; quality of hardware/software design and end-market systems expertise; price; product benefits that are characterized by performance, features, quality and compatibility with standards; access to advanced process and packaging technologies at competitive prices; and sales and technical support, which includes assisting our customers with integration of our components into their new products and providing support from the concept stage through design, launch and production ramp.
Product life cycles may vary greatly by product category. For example, many consumer electronic devices have shorter design-in cycles; therefore, our competitors have increasingly frequent opportunities to achieve design wins in next-generation systems. Conversely, this also provides us frequent opportunities to displace competitors in products that have previously not utilized our design. The industrial and automotive markets typically have longer life cycles, which provide continued revenue streams over longer periods of time.
Backlog
Sales are made primarily pursuant to short-term purchase orders for delivery of products. The quantity actually ordered by the customer, as well as the shipment schedules, are frequently revised, without significant penalty, to reflect changes in the customer’s needs. The majority of our backlog is typically requested for delivery within six months. In markets where the end system life cycles are relatively short, customers typically
 
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request delivery in six to ten weeks. We believe a backlog analysis at any given time gives little indication of our future business except on a short-term basis, principally within the next 60 days.
We utilize backlog as an indicator to assist us in production planning. However, backlog is influenced by several factors including market demand, pricing, and customer order patterns in reaction to product lead times. Quantities actually purchased by customers, as well as prices, are subject to variations between booking and delivery because of changes in customer needs or industry conditions. As a result, we believe that our backlog at any given time is an incomplete indicator of future sales.
Employees
As of March 29, 2014, we had 751 full-time employees, an increase of 99 employees, or 15 percent, from the end of fiscal year 2013. The increase was primarily due to headcount increases at our headquarters location of approximately 60 employees, primarily in research and development, in addition to the Acoustic Technologies, Inc. (“Acoustic”) acquisition in the third quarter of the current fiscal year, which added approximately 30 employees. Of our full-time employees, 67 percent were engaged in research and product development activities, 25 percent in sales, marketing, general and administrative activities, and 8 percent in manufacturing-related activities. Our future success depends, in part, on our ability to continue to attract, retain and motivate highly qualified technical, marketing, engineering, and administrative personnel.
We have never had a work stoppage and none of our employees are represented by collective bargaining agreements. We consider our employee relations to be good.
Forward—Looking Statements
This Annual Report on Form 10-K 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. All statements included or incorporated by reference in this Annual Report on Form 10-K, other than statements that are purely historical, are forward-looking statements. In some cases, forward-looking statements are identified by words such as “expect,” “anticipate,” “target,” “project,” “believe,” “goals,” “estimates,” and “intend.” Variations of these types of words and similar expressions are intended to identify these forward-looking statements. 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. Among the important factors that could cause actual results to differ materially from those indicated by our forward-looking statements are those discussed in Item 1A. Risk Factors and elsewhere in this report, as well as in the documents filed by us with the SEC, specifically the most recent reports on Form 10-Q and 8-K, each as it may be amended from time to time.
We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this Annual Report on Form 10-K, and we undertake no obligation to update this information to reflect events or circumstances after the filing of this report with the SEC, except as required by law. All forward-looking statements, expressed or implied, included in this Annual Report on Form 10-K and attributable to Cirrus Logic are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we may make or persons acting on our behalf may issue. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.
 Item 1A.   Risk Factors 
Our business faces significant risks. The risk factors set forth below may not be the only risks that we face and there is a risk that we may have failed to identify all possible risk factors. Additional risks that we are not aware of yet or that currently are not significant may adversely affect our business operations. You should read the following cautionary statements in conjunction with the factors discussed elsewhere in this and other Cirrus
 
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Logic filings with the SEC. These cautionary statements are intended to highlight certain factors that may affect the financial condition and results of operations of Cirrus Logic and are not meant to be an exhaustive discussion of risks that apply to companies such as ours.
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 twelve month periods ending March 29, 2014 and March 30, 2013, our ten largest end customers represented approximately 88 percent and 89 percent of our sales, respectively. For the twelve month periods ending March 29, 2014 and March 30, 2013, we had one end customer, Apple Inc., who purchased through multiple contract manufacturers and represented approximately 80 percent and 82 percent of the Company’s total sales, respectively. For the twelve month period ending March 31, 2012, we had one distributor, Avnet Inc., who represented 15 percent of our sales.
We may not be able to maintain or increase sales to certain of our key customers for a variety of reasons, including the following:
 
 	¡	 	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;	
 
 	¡	 	our customers face intense competition from other manufacturers that do not use our products; and	
 
 	¡	 	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.	
In addition, our dependence on a limited number of key customers may make it easier for key customers to pressure us to reduce the prices of the products we sell to them. We have experienced pricing pressure from certain key customers and we expect that the average selling prices for certain of our products will decline from time to time, potentially reducing our revenue, our margins and our 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 their tight development schedules. In addition, we may from time to time enter into customer agreements providing for exclusivity periods during which we may only sell specified products or technology to that customer. Accordingly, we may have to 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.
Our lack of diversification in our revenue and customer base increases the risk of an investment in our company, and our consolidated financial condition, results of operations, and stock price may deteriorate if we fail to diversify.
Although we continue to invest in and investigate opportunities to diversify our revenue and customer base, our sales, marketing, and development efforts have historically been focused on a limited number of customers and opportunities. Larger companies have the ability to manage their risk by product, market, and customer diversification. However, we lack diversification, in terms of both the nature and scope of our business, which increases the risk of an investment in our company. If we cannot diversify our customer and revenue opportunities, our financial condition and results of operations could deteriorate.
 
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We have entered into joint development agreements, custom product arrangements, and strategic relationships with some of our largest customers. These arrangements subject us to a number of risks, and any failure to execute on any of these arrangements could have a material adverse effect on our business, results of operations, and financial condition.
We have entered into joint development, product collaboration and technology licensing arrangements with some of our largest customers, and we expect to enter into new strategic arrangements of these kinds from time to time in the future. Such arrangements can magnify several risks for us, including loss of control over the development and development timeline of jointly developed products, risks associated with the ownership of the intellectual property that is developed pursuant to such arrangements, and increased risk that our joint development activities may result in products that are not commercially successful or that are not available in a timely fashion. In addition, any third party with whom we enter into a joint development, product collaboration or technology licensing arrangement may fail to commit sufficient resources to the project, change its policies or priorities or abandon or fail to perform its obligations related to such arrangement. In addition, we may from time to time enter into customer product arrangements that provide for exclusivity periods during which we may only sell specified products or technologies to that particular customer. Any failure to timely develop commercially successful products through our joint development activities as a result of any of these and other challenges could have a material adverse effect on our business, results of operations, and financial condition.
We are subject to risks relating to product concentration.
We derive a substantial portion of our revenues from a limited number of products, and we expect these products to represent a large percentage of our revenues in the near term. Customer acceptance of these products is critical to our future success. Our business, operating results, financial condition and cash flows could therefore be adversely affected by:
 
 	¡	 	a decline in demand for any of our more significant products;	
 
 	¡	 	a decline in the average selling prices of our more significant products;	
 
 	¡	 	failure of our products to achieve continued market acceptance;	
 
 	¡	 	competitive products;	
 
 	¡	 	new technological standards or changes to existing standards that we are unable to address with our products;	
 
 	¡	 	manufacturing or supply issues that prevent us from meeting our customers’ demand for these products;	
 
 	¡	 	a failure to release new products or enhanced versions of our existing products on a timely basis; and	
 
 	¡	 	the failure of our new products to achieve market acceptance.	
In general, our customers may cancel or reschedule orders on short notice without incurring significant penalties; therefore, our sales and operating results in any quarter are difficult to forecast.
In general, we rely on customers issuing purchase orders to buy our products rather than long-term supply contracts. Customers may cancel or reschedule orders on short notice without incurring significant penalties. Therefore, cancellations, reductions, or delays of orders from any significant customer could have a material adverse effect on our business, financial condition, and results of operations.
In addition, a significant portion of our sales and earnings in any quarter depends upon customer orders for our products that we receive and fulfill in that quarter. Because our expense levels are based in part on our expectations as to future revenue and to a large extent are fixed in the short term, we likely will be unable to adjust spending on a timely basis to compensate for any unexpected shortfall in sales or reductions in average selling prices. Accordingly, any significant shortfall of sales in relation to our expectations could hurt our operating results.
 
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Our sales could be materially impacted by the failure of other component suppliers to deliver required parts needed in the final assembly of our customers’ end products.
The products we supply our customers are typically a portion of the many components provided from multiple suppliers in order to complete the final assembly of an end product. If one or more of these other component suppliers are unable to deliver their required component(s) in order for the final end product to be assembled, our customers may delay, or ultimately cancel, their orders from us.
We may acquire other companies or technologies, which may create additional risks associated with our ability to successfully integrate them into our business.
We continue to consider future acquisitions of other companies, or their technologies or products, to improve our market position, broaden our technological capabilities, and expand our product offerings. If we are able to acquire companies, products or technologies that would enhance our business, we could experience difficulties in integrating them. Integrating acquired businesses involves a number of risks, including, but not limited to:
 
 	¡	 	the potential disruption of our ongoing business;	
 
 	¡	 	unexpected costs or incurring unknown liabilities;	
 
 	¡	 	the diversion of management resources from other strategic and operational issues;	
 
 	¡	 	the inability to retain the employees of the acquired businesses;	
 
 	¡	 	difficulties relating to integrating the operations and personnel of the acquired businesses;	
 
 	¡	 	adverse effects on our existing customer relationships or the existing customer relationships of acquired businesses;	
 
 	¡	 	the potential incompatibility of the acquired business or their business customers;	
 
 	¡	 	adverse effects associated with entering into markets and acquiring technologies in areas in which we have little experience; and	
 
 	¡	 	acquired intangible assets becoming impaired as a result of technological advancements or worse-than-expected performance of the acquired business.	
If we are unable to successfully address any of these risks, our business could be harmed.
Strong competition in the semiconductor market may harm our business.
The IC industry is intensely competitive and is frequently characterized by rapid technological change, price erosion, technological obsolescence, and a push towards IC component integration. Because of shortened product life cycles and even shorter design-in cycles in a number of the markets that we serve, our competitors have increasingly frequent opportunities to achieve design wins in next-generation systems. In the event that competitors succeed in supplanting our products, our market share may not be sustainable and our net sales, gross margin and operating results would be adversely affected. Additionally, further component integration, changes in system architectures, and transitions to new audio technologies could eliminate the need for our products.
We compete in a number of fragmented markets. Our principal competitors in these markets include AKM Semiconductor Inc., Analog Devices Inc., Audience, Inc., Austriamicrosystems AG, Dialog Semiconductor, ESS Technology, Inc., Infineon Technologies AG, Marvell Technology Group, Ltd., Maxim Integrated Products Inc., NXP Semiconductors N.V., Power Integrations Inc., Qualcomm Incorporated, Realtek Semiconductor Corporation, ST Microelectronics N.V., Texas Instruments, Inc., Wolfson Microelectronics plc, a public limited company incorporated in Scotland (“Wolfson”), and Yamaha Corporation. See below “Risk Factors Relating to the Wolfson Acquisition” and Note 20 – Subsequent Event for further information. Many of these competitors have greater financial, engineering, manufacturing, marketing, technical, distribution, and other resources; broader product lines; broader intellectual property portfolios; and longer relationships with customers. We also
 
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expect intensified competition from emerging companies and from customers who develop their own IC products. In addition, some of our current and future competitors maintain their own fabrication facilities, which could benefit them in connection with cost, capacity, and technical issues.
Increased competition could adversely affect our business. We cannot provide assurances that we will be able to compete successfully in the future or that competitive pressures will not adversely affect our financial condition and results of operations. Competitive pressures could reduce market acceptance of our products and result in price reductions and increases in expenses that could adversely affect our business and our financial condition. In particular, we have seen increased pricing pressures in the portable audio market, which will likely impact revenues and gross margins in the future.
We are dependent on third-party manufacturing and supply relationships for the majority of our products. Our reliance on third-party foundries and suppliers involves certain risks that may result in increased costs, delays in meeting our customers’ demand, and loss of revenue.
We do not own or operate a semiconductor fabrication facility and do not have the resources to manufacture the majority of our products internally. We use third parties to manufacture, assemble, package and test the majority of our products. As a result, we are subject to risks associated with these third parties, including:
 
 	¡	 	insufficient capacity available to meet our demand;	
 
 	¡	 	inadequate manufacturing yields and excessive costs;	
 
 	¡	 	inability of these third parties to obtain an adequate supply of raw materials;	
 
 	¡	 	difficulties selecting and integrating new subcontractors;	
 
 	¡	 	limited warranties on products supplied to us;	
 
 	¡	 	potential increases in prices; and	
 
 	¡	 	increased exposure to potential misappropriation of our intellectual property.	
Our outside foundries and assembly and test suppliers generally manufacture our products on a purchase order basis, and we have few long-term supply arrangements with these suppliers. Therefore, our third-party manufacturers and suppliers are not obligated to supply us with products for any specific period of time, quantity, or price, except as may be provided in any particular purchase order or in relation to an existing supply agreement. A manufacturing or supply disruption experienced by one or more of our outside suppliers or a disruption of our relationship with an outside foundry could negatively impact the production of certain of our products for a substantial period of time.
In addition, difficulties associated with adapting our technology and product design to the proprietary process technology and design rules of outside foundries can lead to reduced yields of our products. Since low yields may result from either design or process technology failures, yield problems may not be effectively determined or resolved until an actual product exists that can be analyzed and tested to identify process sensitivities relating to the design rules that are used. As a result, yield problems may not be identified until well into the production process, and resolution of yield problems may require cooperation between our manufacturer and us. This risk could be compounded by the offshore location of certain of our manufacturers, increasing the effort and time required to identify, communicate and resolve manufacturing yield problems. Manufacturing defects that we do not discover during the manufacturing or testing process may lead to costly product recalls. These risks may lead to increased costs or delayed product delivery, which would harm our profitability and customer relationships.
In some cases, our requirements may represent a small portion of the total production of the third-party suppliers. As a result, we are subject to the risk that a producer will cease production of an older or lower-volume process that it uses to produce our parts. We cannot provide any assurance that our external foundries will continue to devote resources to the production of parts for our products or continue to advance the process design technologies on which the manufacturing of our products are based. Each of these events could increase our costs, lower our gross margin, and cause us to hold more inventories, or materially impact our ability to deliver our products on time.
 
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Our products are complex and could contain defects, which could result in material costs to us.
Product development in the markets we serve is becoming more focused on the integration of multiple functions on individual devices. There is a general trend towards increasingly complex products. The greater integration of functions and complexity of operations of our products increases the risk that we or our customers or end users could discover latent defects or subtle faults after volumes of product have been shipped. This could result in material costs and other adverse consequences to us, including, but not limited to:
 
 	¡	 	reduced margins;	
 
 	¡	 	damage to our reputation;	
 
 	¡	 	a material recall and replacement costs for product warranty and support;	
 
 	¡	 	payments to our customer related to recall claims as a result of various industry or business practices, contractual requirements, or in order to maintain good customer relationships;	
 
 	¡	 	an adverse impact to our customer relationships by the occurrence of significant defects;	
 
 	¡	 	a delay in recognition or loss of revenues, loss of market share, or failure to achieve market acceptance; and	
 
 	¡	 	a diversion of the attention of our engineering personnel from our product development efforts.	
In addition, any defects or other problems with our products could result in financial losses or other damages to our customers who could seek damages from us for their losses. A product liability or warranty claim brought against us, even if unsuccessful, would likely be time consuming and costly to defend. In particular, the sale of systems and components that are incorporated into certain applications for the automotive industry involves a high degree of risk that such claims may be made.
Due to the complex nature of our products, quality and reliability issues may arise after significant volumes of a product have shipped. This could result in damage to our reputation as a high quality supplier; a material recall or significant product warranty costs; a delay in recognition of revenue; loss of customers and market share; lower manufacturing yields; or a diversion of our engineering personnel from our product development efforts.
While we believe that we are reasonably insured against some of these risks and that we have attempted to contractually limit our financial exposure with many of our customers, a warranty or product liability claim against us in excess of our available insurance coverage and established reserves, or a requirement that we participate in a customer product recall, could have material adverse effects on our business, results of operations, and financial condition.
Because we depend on subcontractors internationally to perform key manufacturing functions for us, we are subject to political, economic, 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. Although we seek to reduce our dependence on any one subcontractor, this concentration of subcontractors and manufacturing operations in Asia 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, or other reasons, we would be required to transfer manufacturing to a backup supplier. Converting or transferring manufacturing from a primary supplier to a backup facility could be expensive and time consuming. 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.
 
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Our products may be subject to average selling prices that decline over time. If we are unable to maintain average selling prices for existing products, increase our volumes, introduce new or enhanced products with higher selling prices, or reduce our costs, our business and operating results could be harmed.
Historically in the semiconductor industry, average selling prices of products have decreased over time. Moreover, our dependence on a limited number of key customers may make it easier for key customers to pressure us to reduce the prices of the products we sell to them. If the average selling price of any of our products declines and we are unable to increase our unit volumes, introduce new or enhanced products with higher margins, and/or reduce manufacturing costs to offset anticipated decreases in the prices of our existing products, our operating results may be adversely affected. In addition, because of procurement lead times, we are limited in our ability to reduce total costs quickly in response to any reductions in prices or sales shortfalls. Because of these factors, we may experience material adverse fluctuations in our future operating results on a quarterly or annual basis.
We may experience difficulties transitioning to advanced manufacturing process technologies, which could materially adversely affect our results.
Our future success depends in part on our ability to transition our current development and production efforts to advanced manufacturing process technologies on circuit geometries of 55 nano-meter and smaller. To the extent that we do not timely transition to smaller geometries, experience difficulties in shifting to smaller geometries, or have significant quality or reliability issues at these smaller geometries, our results could be materially adversely affected.
Costs related to product defects and errata may harm our results of operations and business.
Costs associated with unexpected product defects and errata (deviations from published specifications) due to, for example, unanticipated problems in our design and manufacturing processes, could include:
 
 	¡	 	writing off or reserving the value of inventory of such products;	
 
 	¡	 	disposing of products that cannot be fixed;	
 
 	¡	 	recalling such products that have been shipped to customers;	
 
 	¡	 	providing product replacements for, or modifications to, such products; and	
 
 	¡	 	defending against litigation related to such products.	
These costs could be substantial and may increase our expenses and lower our margins and profitability. In addition, our reputation with our customers or users of our products could be damaged as a result of such product defects and errata, and the demand for our products could be reduced. The announcement of product defects and/or errata could cause customers to purchase products from our competitors as a result of anticipated shortages of our components or for other reasons. These factors could harm our financial results and the prospects for our business.
As we carry only limited insurance coverage, any incurred liability resulting from uncovered claims could adversely affect our financial condition and results of operations.
Our insurance policies may not be adequate to fully offset losses from covered incidents, and we do not have coverage for certain losses. For example, there is limited coverage available with respect to the services provided by our third party foundries and assembly and test subcontractors. Although we believe that our existing insurance coverage is consistent with common practices of companies in our industry, our insurance coverage may be inadequate to protect us against product recalls, natural disasters, and other unforeseen catastrophes that could adversely affect our financial condition and results of operations.
Our failure to develop and ramp new products into production in a timely manner could harm our operating results.
Our success depends upon our ability to develop new products for new and existing customers, and to introduce these products in a timely and cost-effective manner. New product introductions involve significant
 
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investment of resources and potential risks. Delays in new product introductions or less-than-anticipated market acceptance of our new products are possible and would have an adverse effect on our sales and earnings. The development of new products is highly complex and, from time-to-time, we have experienced delays in developing and introducing these new products. Successful product development and introduction depend on a number of factors including, but not limited to:
 
 	¡	 	proper new product definition;	
 
 	¡	 	timely completion of design and testing of new products;	
 
 	¡	 	assisting our customers with integration of our components into their new products, including providing support from the concept stage through design, launch and production ramp;	
 
 	¡	 	successfully developing and implementing the software necessary to integrate our products into our customers’ products;	
 
 	¡	 	achievement of acceptable manufacturing yields;	
 
 	¡	 	availability of wafer fabrication, assembly, and test capacity; and	
 
 	¡	 	market acceptance of our products and the products of our customers.	
Both sales and/or margins may be materially affected if new product introductions are delayed, or if our products are not designed into successive generations of new or existing customers’ products. Our failure to develop and introduce new products successfully could harm our business and operating results.
In addition, difficulties associated with adapting our technology and product design to the proprietary process technology and design rules of outside foundries can lead to reduced yields of our products. Since low yields may result from either design or process technology failures, yield problems may not be effectively determined or resolved until an actual product exists that can be analyzed and tested to identify process sensitivities relating to the design rules that are used. As a result, yield problems may not be identified until well into the production process, and resolution of yield problems may require cooperation between our manufacturer and us. This risk could be compounded by the offshore location of certain of our manufacturers, increasing the effort and time required to identify, communicate and resolve manufacturing yield problems. Manufacturing defects that we do not discover during the manufacturing or testing process may lead to costly product recalls. These risks may lead to increased costs or delayed product delivery, which would harm our profitability and customer relationships.
Shifts in industry-wide capacity and our practice of ordering and purchasing our products based on sales forecasts may result in significant fluctuations in inventory and our quarterly and annual operating results.
We rely on independent foundries and assembly and test houses to manufacture our products. Our reliance on these third party suppliers involves certain risks and uncertainties. For example, shifts in industry-wide capacity from shortages to oversupply, or from oversupply to shortages, may result in significant fluctuations in our quarterly and annual operating results. In addition, we may order wafers and build inventory in advance of receiving purchase orders from our customers. Because our industry is highly cyclical and is subject to significant downturns resulting from excess capacity, overproduction, reduced demand, order cancellations, or technological obsolescence, there is a risk that we will forecast inaccurately and produce excess inventories of particular products. In addition, if we experience supply constraints or manufacturing problems at a particular supplier, we could be required to switch suppliers or qualify additional suppliers. Switching and/or qualifying additional suppliers could be an expensive process and take as long as six to twelve months to complete, which could result in material adverse fluctuations to our operating results.
We generally order our products through non-cancelable purchase orders from third-party foundries based on our sales forecasts, and our customers can generally cancel or reschedule orders they place with us without significant penalties. If we do not receive orders as anticipated by our forecasts, or our customers cancel orders that are placed, we may experience increased inventory levels.
Due to the product manufacturing cycle characteristic of IC manufacturing and the inherent imprecision in the accuracy of our customers’ forecasts, product inventories may not always correspond to product demand,
 
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leading to shortages or surpluses of certain products. As a result of such inventory imbalances, future inventory write-downs and charges to gross margin may occur due to lower of cost or market accounting, excess inventory, and inventory obsolescence.
We have historically experienced fluctuations in our operating results and expect these fluctuations to continue in future periods.
Our quarterly and annual operating results are affected by a wide variety of factors that could materially and adversely affect our net sales, gross margin, and operating results. If our operating results fall below expectations of market analysts or investors, the market price of our common stock could decrease significantly. We are subject to business cycles and it is difficult to predict the timing, length, or volatility of these cycles. These business cycles may create pressure on our sales, gross margin, and/or operating results.
Factors that could cause fluctuations and materially and adversely affect our net sales, gross margin and/or operating results include, but are not limited to:
 
 	¡	 	the volume and timing of orders received;	
 
 	¡	 	changes in the mix of our products sold;	
 
 	¡	 	market acceptance of our products and the products of our customers;	
 
 	¡	 	excess or obsolete inventory;	
 
 	¡	 	pricing pressures from competitors and key customers;	
 
 	¡	 	our ability to introduce new products on a timely basis;	
 
 	¡	 	the timing and extent of our research and development expenses;	
 
 	¡	 	the failure to anticipate changing customer product requirements;	
 
 	¡	 	disruption in the supply of wafers, assembly, or test services;	
 
 	¡	 	reduction of manufacturing yields;	
 
 	¡	 	certain production and other risks associated with using independent manufacturers, assembly houses, and testers; and	
 
 	¡	 	product obsolescence, price erosion, competitive developments, and other competitive factors.	
We have significant international sales, and risks associated with these sales could harm our operating results.
Export sales, principally to Asia, include sales to U.S-based customers with overseas manufacturing plants or manufacturing sub-contractors. These export sales represented 94 percent of our net sales in each of fiscal years 2014 and 2013, and 88 percent, of our net sales in fiscal year 2012. We expect export sales to continue to represent a significant portion of product sales. This reliance on international sales subjects us to the risks of conducting business internationally, including risks associated with political and economic instability, global health conditions, currency controls, exchange rate fluctuations and changes in import/export regulations, tariff and freight rates, as well as the risks of natural disaster, especially in Asia. For example, the political or economic instability in a given region may have an adverse impact on the financial position of end users in the region, which could affect future orders and harm our results of operations. Our international sales operations involve a number of other risks including, but not limited to:
 
 	¡	 	unexpected changes in government regulatory requirements;	
 
 	¡	 	changes to countries’ banking and credit requirements;	
 
 	¡	 	changes in diplomatic and trade relationships;	
 
 	¡	 	delays resulting from difficulty in obtaining export licenses for technology;	
 
 	¡	 	tariffs and other barriers and restrictions;	
 
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 	¡	 	competition with non-U.S. companies or other domestic companies entering the non-U.S. markets in which we operate;	
 
 	¡	 	longer sales and payment cycles;	
 
 	¡	 	problems in collecting accounts receivable; and	
 
 	¡	 	the burdens of complying with a variety of non-U.S. laws.	
In addition, our competitive position may be affected by the exchange rate of the U.S. dollar against other currencies. Consequently, increases in the value of the dollar would increase the price in local currencies of our products in non-U.S. markets and make our products relatively more expensive. Alternatively, decreases in the value of the dollar will increase the relative cost of operations that are based overseas. We cannot provide assurances that regulatory, political and other factors will not adversely affect our operations in the future or require us to modify our current business practices.
Our international operations subject our business to additional political and economic risks that could have an adverse impact on our business.
In addition to international sales constituting a large portion of our net sales, we maintain international operations, sales, and technical support personnel. International expansion has required, and will continue to require, significant management attention and resources. There are risks inherent in expanding our presence into non-U.S. regions, including, but not limited to:
 
 	¡	 	difficulties in staffing and managing non-U.S. operations;	
 
 	¡	 	failure of non-U.S. laws to adequately protect our U.S. intellectual property, patent, trademarks, copyrights, know-how, and other proprietary rights;	
 
 	¡	 	global health conditions and potential natural disasters;	
 
 	¡	 	political and economic instability in international regions;	
 
 	¡	 	international currency controls and exchange rate fluctuations;	
 
 	¡	 	vulnerability to terrorist groups targeting American interests abroad; and	
 
 	¡	 	legal uncertainty regarding liability and compliance with non-U.S. laws and regulatory requirements.	
If we are unable to successfully manage the demands of our international operations, it may have a material adverse effect on our business, financial condition, or results of operations.
We may be adversely impacted by global economic conditions. As a result, our financial results and the market price of our common shares may decline.
Global economic conditions could make it difficult for our customers, our suppliers, and us to accurately forecast and plan future business activities, and could cause global businesses to defer or reduce spending on our products, or increase the costs of manufacturing our products. During challenging economic times our customers and distributors may face issues gaining timely access to sufficient credit, which could impact their ability to make timely payments to us. If that were to occur, we may be required to increase our allowance for doubtful accounts and our days sales outstanding would increase.
We cannot predict the timing, strength, or duration of any economic slowdown or subsequent economic recovery. If the economy or markets in which we operate were to deteriorate, our business, financial condition, and results of operations will likely be materially and/or adversely affected.
Our results may be affected by the fluctuation in sales in the consumer entertainment and smartphone markets.
Because we sell products primarily in the consumer entertainment and smartphone markets, we are likely to be affected by seasonality in the sales of our products and the cyclical nature of these markets. Further, a decline
 
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in consumer confidence and consumer spending relating to economic conditions, terrorist attacks, armed conflicts, oil prices, global health conditions, natural disasters, and/or the political stability of countries that we operate in or sell into could have a material adverse effect on our business.
Our failure to manage our distribution channel relationships could adversely affect our business.
The future of our business, as well as the future growth of our business, will depend in part on our ability to manage our relationships with current and future distributors and external sales representatives and to develop additional channels for the distribution and sale of our products. The inability to successfully manage these relationships could adversely affect our business.
We may be unable to protect our intellectual property rights .
Our success depends in part on our ability to obtain patents and to preserve our other intellectual property rights covering our products. We seek patent protection for those inventions and technologies for which we believe such protection is suitable and is likely to provide a competitive advantage to us. We also rely on trade secrets, proprietary technology, non-disclosure and other contractual terms, and technical measures to protect our technology and manufacturing knowledge. We work actively to foster continuing technological innovation to maintain and protect our competitive position. We cannot provide assurances that steps taken by us to protect our intellectual property will be adequate, that our competitors will not independently develop or design around our patents, or that our intellectual property will not be misappropriated. In addition, the laws of some non-U.S. countries may not protect our intellectual property as well as the laws of the United States.
Any of these events could materially and adversely affect our business, operating results, or financial condition. Policing infringement of our technology is difficult, and litigation may be necessary in the future to enforce our intellectual property rights. Any such litigation could be expensive, take significant time, and divert management’s attention from other business concerns.
Potential intellectual property claims and litigation could subject us to significant liability for damages and could invalidate our proprietary rights.
The IC industry is characterized by frequent litigation regarding patent and other intellectual property rights. We may find it necessary to initiate a lawsuit to assert our patent or other intellectual property rights. These legal proceedings could be expensive, take significant time, and divert management’s attention from other business concerns. We cannot provide assurances that we will ultimately be successful in any lawsuit, nor can we provide assurances that any patent owned by us will not be invalidated, circumvented, or challenged. We cannot provide assurances that rights granted under our patents will provide competitive advantages to us, or that any of our pending or future patent applications will be issued with the scope of the claims sought by us, if at all.
As is typical in the IC industry, we and our customers have, from time to time, received and may in the future receive, communications from third parties asserting patents, mask work rights, or copyrights. In the event third parties were to make a valid intellectual property claim and a license was not available on commercially reasonable terms, our operating results could be harmed. Litigation, which could result in substantial cost to us and diversion of our management, technical and financial resources, may also be necessary to defend us against claimed infringement of the rights of others. An unfavorable outcome in any such suit could have an adverse effect on our future operations and/or liquidity.
System security risks, data protection breaches, cyber-attacks and other related cyber security issues could disrupt our internal operations, and any such disruption could increase our expenses, damage our reputation and adversely affect our stock price.
Experienced computer programmers and hackers may be able to penetrate our security controls and misappropriate or compromise our confidential information or that of third parties, create system disruptions or cause shutdowns. Computer programmers and hackers also may be able to develop and deploy viruses, worms and other malicious software programs that attack our websites, products or otherwise exploit any security vulnerabilities of our websites and products. The costs to us to eliminate or alleviate cyber or other security
 
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problems, bugs, viruses, worms, malicious software programs and security vulnerabilities could be significant, and our efforts to address these problems may not be successful and could result in interruptions, delays, cessation of service and loss of existing or potential customers that may impede our sales, manufacturing, distribution or other critical functions.
We manage and store various proprietary information and sensitive or confidential data relating to our business. In addition, we manage and store a significant amount of proprietary and sensitive confidential information from our customers. Any breach of our security measures or the accidental loss, inadvertent disclosure or unapproved dissemination of proprietary information or sensitive or confidential data about us or our customers, including the potential loss or disclosure of such information or data as a result of fraud, trickery or other forms of deception, could result in litigation and potential liability for us, damage our brand and reputation or otherwise harm our business.
If we fail to attract, hire and retain qualified personnel, we may not be able to develop, market, or sell our products or successfully manage our business.
Competition for highly qualified personnel in our industry is intense. The number of technology companies in the geographic areas in which we operate is greater than it has been historically and we expect competition for qualified personnel to intensify. There are only a limited number of individuals in the job market with the requisite skills. Our Human Resources organization focuses significant efforts on attracting and retaining individuals in key technology positions. The loss of the services of key personnel or our inability to hire new personnel with the requisite skills could restrict our ability to develop new products or enhance existing products in a timely manner, sell products to our customers, or manage our business effectively.
If we fail to effectively manage our hiring needs and successfully assimilate new talent, our ability to meet development schedules, productivity, employee morale and retention could be impacted, resulting in an adverse effect on our business and operating results.
We continue to experience rapid growth in hiring new employees. As we continue to grow, we must effectively integrate, develop and motivate a large number of new employees, while at the same time not losing key personnel. While managing those risks, we still must sustain the beneficial aspects of our award-winning corporate culture, which we believe fosters innovation, teamwork and mitigates voluntary turnover.
We intend to make substantial investments to expand our engineering, research and development organizations. The challenges of integrating a rapidly growing employee base into our corporate culture are exacerbated by the tight product development schedules for our key customers. Therefore, if we fail to effectively manage our hiring needs and successfully assimilate new talent, our ability to meet development schedules, productivity, employee morale and retention could be impacted, resulting in an adverse effect on our business and operating results.
We are subject to the export control regulations of the U.S. Department of State and the Department of Commerce. A violation of these export control regulations could have a material adverse effect on our business or our results of operations, cash flows, or financial position.
The nature of our international business subjects us to the export control regulations of the U.S. Department of State and the Department of Commerce. If these export control regulations are violated, it could result in monetary penalties and denial of export privileges. The U.S. government is very strict with respect to compliance and has served notice generally that failure to comply with these regulations may subject violators to fines and/or imprisonment. Although we are not aware of any material violation of any export control regulations, a failure to comply with any of the above mentioned regulations could have a material adverse effect on our business.
Our financial results may be adversely affected by changes in the valuation allowance on our deferred tax assets.
The Company has a significant amount of deferred tax assets. Our ability to recognize these deferred tax assets is dependent upon our ability to determine whether it is more likely than not that we will be able to realize, or actually use, these deferred tax assets. That determination depends primarily on our ability to generate future
 
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U.S. taxable income. Our judgments regarding future profitability may change due to future market conditions, changes in U.S. or international tax laws and other factors. These changes, if any, may require possible material adjustments to the net deferred tax asset and an accompanying reduction or increase in net income in the period in which such determinations are made.
Our stock price has been and is likely to continue to be volatile .
The market price of our common stock fluctuates significantly. This fluctuation has been or may be the result of numerous factors, including, but not limited to:
 
 	¡	 	actual or anticipated fluctuations in our operating results;	
 
 	¡	 	announcements concerning our business or those of our competitors, customers, or suppliers;	
 
 	¡	 	loss of a significant customer, or customers;	
 
 	¡	 	changes in financial estimates by securities analysts or our failure to perform as anticipated by the analysts;	
 
 	¡	 	news, commentary, and rumors emanating from the media relating to our customers, the industry, or us. These reports may be unrelated to the actual operating performance of the Company, and in some cases, may be potentially misleading or incorrect;	
 
 	¡	 	announcements regarding technological innovations or new products by us or our competitors;	
 
 	¡	 	announcements by us of significant acquisitions, strategic partnerships, joint ventures, or capital commitments;	
 
 	¡	 	announcements by us of significant divestitures or sale of certain assets or intellectual property;	
 
 	¡	 	litigation arising out of a wide variety of matters, including, among others, employment matters and intellectual property matters;	
 
 	¡	 	departure of key personnel;	
 
 	¡	 	single significant stockholders selling for any reason;	
 
 	¡	 	general conditions in the IC industry; and	
 
 	¡	 	general market conditions and interest rates.	
We have provisions in our Certificate of Incorporation and Bylaws, and are subject to certain provisions of Delaware law, which could prevent, delay or impede a change of control of our company. These provisions could affect the market price of our stock.
Certain provisions of Delaware law and of our Certificate of Incorporation and Bylaws could make it more difficult for a third party to acquire us, even if our stockholders support the acquisition. These provisions include, but are not limited to:
 
 	¡	 	the inability of stockholders to call a special meeting of stockholders;	
 
 	¡	 	a prohibition on stockholder action by written consent; and	
 
 	¡	 	a requirement that stockholders provide advance notice of any stockholder nominations of directors or any proposal of new business to be considered at any meeting of stockholders.	
We are also subject to the anti-takeover laws of Delaware that may prevent, delay or impede a third party from acquiring or merging with us, which may adversely affect the market price of our common stock.
We are subject to the risks of owning real property.
We currently own our U.S. headquarters in Austin, Texas. The ownership of our U.S. headquarters subjects us to the risks of owning real property, which may include:
 
 	¡	 	the possibility of environmental contamination and the costs associated with correcting any environmental problems;	
 
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 	¡	 	adverse changes in the value of these properties, due to interest rate changes, changes in the neighborhood in which the property is located, or other factors; and	
 
 	¡	 	the risk of financial loss in excess of amounts covered by insurance, or uninsured risks, such as the loss caused by damage to the buildings as a result of fire, floods, or other natural disasters.	
Risk Factors Relating to the Wolfson Acquisition
On April 29, 2014, we announced that we and the board of directors of Wolfson had agreed on the terms of a recommended cash offer of £2.35 per share (the “Offer”) to be made by us for the acquisition of the entire issued and to be issued share capital of Wolfson (the “Acquisition”). The Offer values the entire issued and to be issued share capital of Wolfson at approximately £291 million (approximately $488 million based on a U.S. dollar-to-pound sterling exchange rate of 1.68) (the “Offer Consideration”). It is intended that the Acquisition will be effected by means of a court-sanctioned scheme of arrangement under the laws of the United Kingdom (the “Scheme”). The Offer is subject to the U.K. City Code on Takeovers and Mergers (the “City Code”) and is regulated by the U.K. Panel on Takeovers and Mergers (the “Takeover Panel”).
We must obtain governmental and regulatory consents to complete the Acquisition, which, if delayed, not granted or granted with onerous conditions, may jeopardize or delay the Acquisition, result in additional expenditures of money and resources and/or reduce the anticipated benefits of the Acquisition.
The Offer is conditional on, among other things, confirmation from the U.K. Competition and Markets Authority (the “CMA”) on terms reasonably satisfactory to Cirrus Logic that the Acquisition will not be subject to a Phase 2 review under the U.K. Enterprise Act of 2002, as amended by the U.K. Enterprise and Regulatory Reform Act 2013. We may not be able to obtain the required confirmation and, if so, the required conditions of the Scheme may not be satisfied. This could prevent the completion of the Scheme.
The Acquisition must be sanctioned by a U.K. court and approved by Wolfson’s shareholders and, and if such approvals are not obtained, the Acquisition will not become effective.
The Scheme must be sanctioned by a U.K. court and approved at the Wolfson shareholders meeting convened in connection with the Scheme by both (1) a majority in number of the Wolfson shareholders voting at the meeting and (2) at least 75% of the votes cast. If these required approvals are not obtained, the Acquisition will not become effective.
Even if a material adverse change to Wolfson’s business or prospects were to occur, we may not be able to invoke the conditions to the Acquisition and terminate the Scheme, in which case, we would be required to complete the Acquisition without any reduction in or adjustment to the Offer Consideration payable to the Wolfson security holders.
Completion of the Acquisition is subject to a number of conditions, including that there has been no material adverse change or deterioration in the business, assets, financial position, profits or prospects of Wolfson and its subsidiaries before the Acquisition becomes or is declared unconditional and effective. Under the U.K. Takeover Code, and except for the Wolfson shareholder approval condition and the conditions relating to antitrust clearance, we may invoke a condition to the Acquisition to cause the Scheme not to proceed only if the U.K. Takeover Panel determines that the circumstances giving rise to that condition not being satisfied are of material significance to us in the context of the Acquisition. If a material adverse change affecting Wolfson occurs and the U.K. Takeover Panel does not allow us to invoke the condition, we may be required to complete the Acquisition and our business or our financial condition may be materially adversely affected.
We are subject to restrictions in order to comply with and borrow funds under our credit facility and we may not be able to secure future financing.
On April 29, 2014, we entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent and lender. The Credit Agreement provides for a $225 million senior secured revolving credit facility (the “Credit Facility”) that may be used for, among other things, payment of the Offer Consideration in connection with the Acquisition.
 
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The Credit Agreement contains various conditions, covenants and representations with which we must comply on an ongoing basis and in order to borrow funds thereunder. If we fail to comply with these conditions, covenants and representations, we may not be able to borrow funds under the Credit Facility.
For purposes of the Acquisition however, the Credit Agreement provides for a “Certain Funds Period” during which only limited borrowing conditions apply and only breaches of certain major representations and major defaults or illegality would prevent us from borrowing to fund the payment of the Offer Consideration. If we are in breach or default of other terms of the Credit Agreement, the lenders cannot prevent funding for payment of the Offer Consideration. If we are in breach or default of the Credit Agreement following the Certain Funds Period (or a breach of a major representation occurs or a major default exists during the Certain Funds Period), the administrative agent may be able to declare the entire outstanding amount of the Credit Facility immediately due and payable (subject to a 60 day cure period in respect of inadvertent defaults caused by circumstances existing at Wolfson on the Acquisition closing date) and our business or our financial condition may be materially adversely affected.
The Credit Facility expires no later than January 23, 2015, at which time we will be required to refinance the outstanding indebtedness under the Credit Facility. We may not be able to secure new financing, or financing on terms that are acceptable to us. If we are unable to refinance the Credit Facility, our business and our financial condition would be materially adversely affected.
Our ability to service our indebtedness will depend on, among other things, our future financial and operating performance, which will be affected by prevailing economic conditions and financial, business, regulatory, and other factors, some of which are beyond our control. If our operating results are not sufficient to service our future indebtedness, we will be forced to take actions such as reducing or delaying business activities, acquisitions, investments, and/or capital expenditures, selling assets, restructuring or refinancing our indebtedness, or seeking additional equity capital or bankruptcy protection. We may not be able to effect any of these remedies on satisfactory terms or at all.
While the Acquisition is pending, we must maintain sufficient cash resources to enable us to pay the full amount of the Offer Consideration to the Wolfson security holders, restricting our ability to use cash and borrowing capacity under our credit facility to meet other needs of our business.
In connection with the Offer, we entered into a Certain Funds Undertaking with our financial advisor, Goldman Sachs International, providing certain assurances and undertakings to enable Goldman Sachs to confirm, as required by the City Code, that sufficient cash resources are and will continue to be available to us to pay the full amount of the Offer Consideration. The Certain Funds Undertaking effectively restricts our use of the funds required to pay the Offer Consideration until the earlier of the Offer being completed, lapsing or being withdrawn or January 23, 2015. While the Acquisition is pending, our use of cash on our balance sheet and our ability to draw under the Credit Facility to meet other needs of our business will therefore be limited. We believe that we have sufficient unrestricted cash to meet the liquidity and capital requirements of our business, but our business or our financial condition could be materially adversely affected if our cash requirements are higher than we anticipate.
The Acquisition could cause disruptions in the businesses of Cirrus Logic and/or Wolfson, which could have material adverse effects on their businesses and financial results, as well as on the business prospects and financial results of the combined company.
The Acquisition could cause disruptions in the businesses of Cirrus Logic and/or Wolfson. Specifically, some existing customers, including key customers, of Cirrus Logic and/or Wolfson may have concerns about purchasing products from the combined company if, for example, the combined company is also selling products to their competitors. Moreover, some current and prospective employees may experience uncertainty about their future roles within the combined company, which may adversely affect the ability of Cirrus Logic and Wolfson to retain or recruit key managers and other employees. If Cirrus Logic and Wolfson fail to manage these risks effectively, the business and financial results of Cirrus Logic, Wolfson and the combined company could be adversely affected.
 
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If there are significant, unforeseen difficulties integrating the business operations of Cirrus Logic and Wolfson, the business of the combined company could be adversely affected.
We intend, to the extent possible, to integrate the operations of Wolfson with our operations. Our goal in integrating these operations is to increase revenues through enhanced growth opportunities and achieve cost savings by taking advantage of the anticipated synergies of consolidation. However, we may encounter difficulties integrating Wolfson’s operations into our operations, resulting in a delay or the failure to achieve the anticipated synergies, including the expected increases in earnings and cost savings. If such difficulties are significant, this could adversely affect the business of the combined company.
We may incur higher than expected integration, transaction and acquisition-related costs.
We expect to incur a number of non-recurring costs associated with combining the operations of the two companies. In addition, we will incur investment banking, legal, accounting and other transaction fees and costs related to the Acquisition. Some of these costs are payable regardless of whether the Acquisition is completed and such costs may be higher than anticipated. Although we believe that the elimination of duplicative costs, as well as the realization of other efficiencies related to the integration of the businesses, will offset these implementation and acquisition costs over time, this net benefit may not be achieved within the expected timetable. In addition, some of these costs could be higher than we anticipate, which could reduce the net benefits of the transaction and impact our results of operations.
 ITEM 1B.   Unresolved Staff Comments 
None.
 ITEM 2.   Properties 
As of May 1, 2014, our principal facilities are located in Austin, Texas. The Company’s corporate headquarters, which we own, consists of approximately 135,000 square feet of office space and is primarily occupied by research and development personnel and testing equipment. In addition, the Company has purchased surrounding properties that consist of approximately 32,000 square feet of space, of which 7,000 square feet is subleased through November 2014. We expect to staff these facilities with a mixture of administrative personnel, research and development personnel, and testing equipment as needed, once renovations are complete and the current sublease expires.
Additionally, we have various leased facilities in Austin, Texas, consisting of approximately 96,000 square feet. This includes approximately 59,000 square feet of leased space that houses a mixture of administrative personnel as well as research and development personnel. Our failure analysis and reliability facilities occupy the remaining 37,000 square feet of leased space.
Pursuant to the acquisition of Acoustic on October 1, 2013, the Company assumed the existing lease for Acoustic’s operations, which consisted of approximately 13,000 square feet. This lease was subsequently extended through April 2019.
The Company closed operations in Tucson, Arizona during fiscal year 2013, which included 28,000 square feet of leased office space that was primarily occupied by engineering personnel. A portion of this leased facility has been subleased through the term of the existing lease, which extends through May 2015.
 
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Below is a detailed schedule that identifies our principal locations of occupied leased and owned property as of May 1, 2014, with various lease terms through calendar year 2019:

Design Centers	    	 	    	Sales Support Offices – International	
Austin, Texas	    		    	Hong Kong, China	
Mesa, Arizona	    		    	Shanghai, China	
	    		    	Shenzhen, China	
	    		    	Tokyo, Japan	
	    		    	Singapore	
	    		    	Seoul, South Korea	
	    		    	Taipei, Taiwan	
	    		    	Buckinghamshire, United Kingdom	
See Note 13 - Commitments and Contingencies of the Notes to Consolidated Financial Statements contained in Item 8 for further detail.
 ITEM 3.   Legal Proceedings 
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 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.
On June 4, 2012, U.S. Ethernet Innovations, LLC (the “Plaintiff”) filed suit against Cirrus Logic and two other defendants in the U.S. District Court, Eastern District of Texas. The Plaintiff alleges that Cirrus Logic infringed four U.S. patents relating to Ethernet technology. In its complaint, the Plaintiff indicated that it is seeking unspecified monetary damages, including up to treble damages for willful infringement. We answered the complaint on June 29, 2012, denying the allegations of infringement and seeking a declaratory judgment that the patents in suit were invalid and not infringed. The parties entered into a settlement agreement on May 30, 2013. In exchange for a full release of claims as it relates to the asserted patent, we paid the Plaintiff $0.7 million. This amount is recorded as a separate line item on the Consolidated Statements of Comprehensive Income under the caption “Patent infringement settlements, net.”
On February 4, 2013, a purported shareholder filed a class action complaint in the U.S. District Court, Southern District of New York against the Company and two of the Company’s executives (the “Securities Case”). Koplyay v. Cirrus Logic, Inc., et al. Civil Action No. 13-CV-0790. The complaint alleges that the defendants violated the federal securities laws by making materially false and misleading statements regarding our business results between July 31, 2012, and October 31, 2012, and seeks unspecified damages along with plaintiff’s costs and expenses, including attorneys’ fees. A second complaint was filed on April 13, 2013, by a different purported shareholder, in the same court, setting forth substantially the same allegations. On April 19, 2013, the court appointed the plaintiff and counsel in the first class action complaint as the lead plaintiff and lead counsel. The lead plaintiff filed an amended complaint on May 1, 2013, including substantially the same allegations as the original complaint. On May 24, 2013, the Company filed a motion to dismiss the amended complaint for failure to state a claim. On December 2, 2013, the court granted the Company’s motion and dismissed the case with prejudice. The plaintiff did not appeal the court’s order and the case has concluded.
On April 13, 2013, another purported shareholder filed a shareholder derivative complaint against several of our current officers and directors in the District Court of Travis County, Texas, 53 rd Judicial District (the “Derivative Case”). Graham, derivatively on behalf of Cirrus Logic, Inc. v. Rhode, et. al., Cause No. D-1-GN-13-001285. In this complaint, the plaintiff makes allegations similar to those presented in the Securities Case, but the plaintiff asserts various state law causes of action, including claims of breach of fiduciary duty and unjust enrichment. On January 27, 2014, the plaintiff filed a Notice of Non-Suit (the “Notice”) indicating that the plaintiff did not intend to pursue the claims further. Based on the plaintiff’s filing of the Notice, the court dismissed the plaintiff’s claims without prejudice.
 
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 ITEM 4.   Mine Safety Disclosures 
Not applicable.
 PART II
 
 ITEM 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 	
Our common stock is traded on the NASDAQ Global Select Market under the symbol CRUS.
As of May 23, 2014, there were approximately 594 holders of record of our common stock.
We have not paid cash dividends on our common stock and currently intend to continue a policy of retaining any earnings for reinvestment in our business.
The information under the caption “Equity Compensation Plan Information” in the proxy statement to be delivered to stockholders in connection with our Annual Meeting of Stockholders to be held on July 28, 2014 (the “Proxy Statement”) is incorporated herein by reference.
The following table shows, for the periods indicated, the high and low intra-day sales prices for our common stock.

 	  	High	 	  	Low	 	
Fiscal year ended March 29, 2014	  				  				
First quarter	  	$	23.48	  	  	$	16.46	  	
Second quarter	  	 	25.27	  	  	 	17.36	  	
Third quarter	  	 	25.91	  	  	 	18.55	  	
Fourth quarter	  	 	20.87	  	  	 	16.81	  	
Fiscal year ended March 30, 2013	  				  				
First quarter	  	$	31.23	  	  	$	20.28	  	
Second quarter	  	 	45.49	  	  	 	24.94	  	
Third quarter	  	 	42.00	  	  	 	25.31	  	
Fourth quarter	  	 	31.97	  	  	 	22.04	  	
 
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Purchases of Equity Securities by the Issuer and Affiliated Purchasers
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 March 29, 2014 (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)	 	
December 29, 2013 -
January 25, 2014	 	 	—	  	 	$	—	  	 	 	—	  	 	$	—	  	
January 26, 2014 -
February 22, 2014	 	 	—	  	 	 	—	  	 	 	—	  	 	 	—	  	
February 23, 2014 -
March 29, 2014	 	 	500	  	 	 	19.50	  	 	 	500	  	 	 	62,253	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	500	  	 	$	19.50	  	 	 	500	  	 	$	62,253	  	

 	(1)	On November 20, 2012, we announced that our Board of Directors authorized a share repurchase program of up to $200 million of the Company’s common stock. The repurchases were to be funded from existing cash and were intended to be effected opportunistically from time to time in accordance with applicable securities laws through the open market or in privately negotiated transactions. The timing of the repurchases and the actual amount purchased depend on a variety of factors including market price of the Company’s shares, general market and economic conditions, and other corporate considerations. The program does not have an expiration date, does not obligate the Company to repurchase any particular amount of its 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 $9.7 million during the fourth quarter of fiscal year 2014. All of 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 March 29, 2014.	
 
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Stock Price Performance Graph
The following graph and table show a comparison of the five-year cumulative total stockholder return, calculated on a dividend reinvestment basis, for Cirrus Logic, the Standard & Poor’s 500 Composite Index (the “S&P 500 Index”), and the Semiconductor Subgroup of the Standard & Poor’s Electronics Index (the “S&P 500 Semiconductors Index”).
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN
Assumes Initial Investment of $100 on March 28, 2009

 
																									
 	  	3/28/2009	 	  	3/27/2010	 	  	3/26/2011	 	  	3/31/2012	 	  	3/30/2013	 	  	3/29/2014	 	
Cirrus Logic, Inc.	  	 	100.00	  	  	 	197.25	  	  	 	529.00	  	  	 	595.00	  	  	 	568.75	  	  	 	488.00	  	
S&P 500 Index	  	 	100.00	  	  	 	146.06	  	  	 	167.78	  	  	 	183.84	  	  	 	209.51	  	  	 	253.28	  	
S&P 500 Semiconductors Index	  	 	100.00	  	  	 	152.05	  	  	 	169.60	  	  	 	195.10	  	  	 	176.36	  	  	 	226.95	  	
 
 	(1)	The graph assumes that $100 was invested in our common stock and in each index at the market close on March 28, 2009, and that all dividends were reinvested. No cash dividends were declared on our common stock during the periods presented.	
 
 	(2)	Stockholder returns over the indicated period should not be considered indicative of future stockholder returns.	
The information in this Annual Report on Form 10-K appearing under the heading “Stock Price Performance Graph” is being “furnished” pursuant to Item 201(e) of Regulation S-K under the Securities Act of 1933, as amended, and shall not be deemed to be “soliciting material” or “filed” with the Securities and Exchange Commission or subject to Regulation 14A or 14C, other than as provided in Item 201(e) of Regulation S-K, or to the liabilities of Section 18 of the Securities Exchange Act of 1934, as amended.
 
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 ITEM 6.   Selected Financial Data 
The information contained below should be read along with Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 8 — Financial Statements and Supplementary Data (amounts in thousands, except per share amounts).

 	  	Fiscal Years	 	
 	  	2014	 	 	2013	 	 	2012	 	 	2011	 	 	2010	 	
	  	 	(1)	  	 	 	(1)	  	 	 	(1)	  	 				 				
Net sales	  	$	714,338	  	 	$	809,786	  	 	$	426,843	  	 	$	369,571	(2) 	 	$	220,989	  	
Net income	  	 	108,111	  	 	 	136,598	  	 	 	87,983	  	 	 	203,503	  	 	 	38,398	  	
Basic earnings per share	  	$	1.72	  	 	$	2.12	  	 	$	1.35	  	 	$	3.00	  	 	$	0.59	  	
Diluted earnings per share	  	$	1.65	  	 	$	2.00	  	 	$	1.29	  	 	$	2.82	  	 	$	0.59	  	
Financial position at year end:	  				 				 				 				 				
Cash, cash equivalents, restricted investments and marketable securities	  	 	384,510	  	 	 	236,547	  	 	 	184,788	  	 	 	215,055	  	 	 	141,626	  	
Total assets	  	$	724,744	  	 	$	651,347	  	 	$	544,462	  	 	$	496,621	  	 	$	267,610	  	
Working capital	  	 	392,810	  	 	 	351,455	  	 	 	278,602	  	 	 	267,416	  	 	 	142,965	  	
Long-term liabilities	  	 	4,863	  	 	 	10,094	  	 	 	5,620	  	 	 	6,188	  	 	 	7,119	  	
Total stockholders’ equity	  	$	637,358	  	 	$	548,174	  	 	$	465,857	  	 	$	438,379	  	 	$	218,601	  	
 
 	1)	Refer to the consolidated financial statements and the Notes thereto contained in Item 8 of this Form 10-K for fiscal years 2014, 2013, and 2012, for an expanded discussion of factors that materially affect the comparability of the information reflected in the selected consolidated financial data presented above.	
 
 	2)	The increase in net sales was primarily due to a 72 percent increase in audio sales over fiscal year 2010, attributable to higher sales of portable audio and surround codec products. Additionally, energy product sales increased 56 percent with increases in seismic, power meter and power amplification products.	
 ITEM 7.   Management’s Discussion and Analysis of Financial Condition and Results of Operations 
Please read the following discussion in conjunction with our audited historical consolidated financial statements and notes thereto, which are included elsewhere in this Form 10-K. Management’s Discussion and Analysis of Financial Condition and Results of Operations contains statements that are forward-looking. These statements are based on current expectations and assumptions that are subject to risk, uncertainties and other factors. Actual results could differ materially because of the factors discussed in Part I, Item 1A. “Risk Factors” of this Form 10-K.
Critical Accounting Policies
Our discussion and analysis of the Company’s financial condition and results of operations are based upon the consolidated financial statements included in this report, which have been prepared in accordance with U. S. generally accepted accounting principles. 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.
We believe the following critical accounting policies involve significant judgments and estimates that are used in the preparation of the consolidated financial statements:
 
 	¡	 	We provide for the recognition of deferred tax assets if realization of such assets is more likely than not. The Company evaluates the ability to realize its deferred tax assets based on all the facts and circumstances, including projections of future taxable income and expiration dates of carryover	
 
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 	attributes. We have provided a valuation allowance against a portion of our net U.S. deferred tax assets due to uncertainties regarding its realization.	
The calculation of our tax liabilities involves assessing uncertainties with respect to the application of complex tax rules and the potential for future adjustment of our uncertain tax positions by the Internal Revenue Service or other taxing jurisdiction. If our estimates of these taxes are greater or less than actual results, an additional tax benefit or charge will result. See Note 17 — Income Taxes of the Notes to Consolidated Financial Statements contained in Item 8 for additional details.
 
 	¡	 	We recognize revenue when all of the following criteria are met: persuasive evidence that an arrangement exists, delivery of goods has occurred, the sales price is fixed or determinable and collectability is reasonably assured. We evaluate our distributor arrangements, on a distributor by distributor basis, with respect to each of the four criteria above. For a majority of our distributor arrangements, we provide rights of price protection and stock rotation. Revenue is deferred at the time of shipment to our domestic distributors and certain international distributors due to the determination that the ultimate sales price to the distributor is not fixed or determinable. Once the distributor has resold the product, and our final sales price is fixed or determinable, we recognize revenue for the final sales price and record the related costs of sales. For certain of our smaller international distributors, we do not grant price protection rights and provide minimal stock rotation rights. For these distributors, revenue is recognized upon delivery to the distributor, less an allowance for estimated returns, as the revenue recognition criteria have been met upon shipment.	
Further, the Company defers the associated cost of goods sold on our Consolidated Balance Sheet, net within the deferred income caption. The Company routinely evaluates the products held by our distributors for impairment to the extent such products may be returned by the distributor within these limited rights and such products would be considered excess or obsolete if included within our own inventory. Products returned by distributors and subsequently scrapped have historically been immaterial to the Company.
 
 	¡	 	Inventories are recorded at the lower of cost or market, with cost being determined on a first-in, first-out basis. We write down inventories to net realizable value based on forecasted demand, product release schedules, product life cycles, management judgment, and the age of inventory. Actual demand and market conditions may be different from those projected by management, which could have a material effect on our operating results and financial position. See Note 2 — Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements contained in Item 8.	
 
 	¡	 	We evaluate the recoverability of property, plant, and equipment and intangible assets by testing for impairment losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. An impairment loss is recognized in the event the carrying value of these assets exceeds the fair value of the applicable assets. Impairment evaluations involve management estimates of asset useful lives and future cash flows. Actual useful lives and cash flows could be different from those estimated by management, which could have a material effect on our operating results and financial position. See Note 6 — Goodwill and Intangibles, net of the Notes to Consolidated Financial Statements contained in Item 8.	
 
 	¡	 	The Company evaluates the collectability of accounts receivable. We maintain allowances for doubtful accounts for estimated losses resulting from the inability or failure of our customers to make required payments. We regularly evaluate our allowance for doubtful accounts based upon the age of the receivable, our ongoing customer relations, as well as any disputes with the customer. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required, which could have a material effect on our operating results and financial position. Additionally, we may maintain an allowance for doubtful accounts for estimated losses on receivables from customers with whom we are involved in litigation. See Note 5 — Accounts Receivable, net of the Notes to Consolidated Financial Statements contained in Item 8.	
 
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 	¡	 	The Company evaluates goodwill and other intangible assets. Goodwill is recorded at the time of an acquisition and is calculated as the difference between the total consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired. The Company tests goodwill and other intangible assets for impairment on an annual basis or more frequently if the Company believes indicators of impairment exist. Impairment evaluations involve management’s assessment of qualitative factors to determine whether it is more likely than not that goodwill and other intangible assets are impaired. If management concludes from its assessment of qualitative factors that it is more likely than not that impairment exists, then a quantitative impairment test will be performed involving management estimates of asset useful lives and future cash flows. Significant management judgment is required in the forecasts of future operating results that are used in these evaluations. If our actual results, or the plans and estimates used in future impairment analyses, are lower than the original estimates used to assess the recoverability of these assets, we could incur additional impairment charges in a future period. There were no impairments of goodwill in fiscal years 2014, 2013, or 2012. There were no material intangible asset impairments in fiscal years 2014, 2013 and 2012.	
 
 	¡	 	Our available-for-sale investments, non-marketable securities and other investments are subject to a periodic impairment review . Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. This determination requires significant judgment and actual results may be materially different than our estimate. Marketable securities are evaluated for impairment if the decline in fair value below cost basis is significant and/or has lasted for an extended period of time. Non-marketable securities or other investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. For investments accounted for using the cost method of accounting, we evaluate information (e.g., budgets, business plans, financial statements) in addition to quoted market prices, if any, in determining whether an other-than-temporary decline in value exists. Factors indicative of an other-than-temporary decline include recurring operating losses, credit defaults, and subsequent rounds of financings at an amount below the cost basis of the investment. This list is not all inclusive and we weigh all quantitative and qualitative factors in determining if an other-than-temporary decline in value of an investment has occurred. When a decline in value is deemed to be other-than-temporary, we recognize an impairment loss in the current period’s operating results to the extent of the decline. Actual values could be different from those estimated by management, which could have a material effect on our operating results and financial position. See Note 3 — Marketable Securities of the Notes to Consolidated Financial Statements contained in Item 8 .	
 
 	¡	 	We are subject to the possibility of loss contingencies for various legal matters. See Note 14 — Legal Matters of the Notes to Consolidated Financial Statements contained in Item 8 . We regularly evaluate current information available to us to determine whether any accruals should be made based on the status of the case, the results of the discovery process and other factors. If we ultimately determine that an accrual should be made for a legal matter, this accrual could have a material effect on our operating results and financial position and the ultimate outcome may be materially different than our estimate.	
Overview
Cirrus Logic develops high-precision analog and mixed-signal ICs for a broad range of audio and energy markets. We track operating results in one reportable segment, but report revenue performance by product line, currently audio and energy. In fiscal year 2014, the Company repurchased approximately 2.6 million shares under its authorized share repurchase program, leaving $62.3 million remaining for repurchases of the Company’s common stock in the future. The Company continued to target fast-growing markets and develop innovative products. We acquired Acoustic in the current year, and with it, the SoundClear ® embedded firmware voice processing technology. The Company reported a revenue decrease of 12 percent from the prior fiscal year and an increase in the investment in research and development of $12.1 million, discussed below.
Fiscal Year 2014
Fiscal year 2014 was a year focused on developing innovative new products, strengthening existing customer relationships and establishing new relationships with key players in the markets we serve. With the
 
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addition of the embedded SoundClear ® technology and existing hardware, the Company is leveraging its engineering expertise to develop custom and general market audio subsystems that intelligently solve system design issues. Also in fiscal year 2014, we expanded our footprint in portable audio with the addition of several new top tier smartphone customers.
Fiscal year 2014 net sales of $714.3 million represented a 12 percent decrease over fiscal year 2013 net sales of $809.8 million. Audio product line sales of $667.7 million in fiscal year 2014 represented a 12 percent decrease over fiscal year 2013 sales of $754.8 million, attributable to lower sales of portable audio products due to reduced average selling prices (“ASPs”) to certain customers. Energy product line sales of $46.6 million in fiscal year 2014 represented a 15 percent decrease from fiscal year 2013 sales of $55.0 million, which was attributable, primarily to the absence of revenue related to the products associated with our Tucson office asset sale, described in Note 8 — Asset Sale.
Overall, gross margin for fiscal year 2014 was 50 percent. The increase in gross margin for fiscal year 2014 was primarily due to the absence of the significant inventory write-down, including scrapped inventory, experienced in the prior fiscal year, which had a 3.1% negative impact on fiscal year 2013 margin. The Company achieved net income of $108.1 million in fiscal year 2014, which included an income tax provision in the amount of $47.6 million. Additionally, the Company’s number of employees increased to 751 as of March 29, 2014.
Fiscal Year 2013
Fiscal year 2013 was a year focused on ramping new custom products and introducing general market portable audio and energy products that we expected to drive revenue growth and customer diversification longer-term. The Company targeted tier-one customers in growing markets who were able to differentiate their products with our innovative technology, highlighted by the fact that our top ten end customer concentration had increased to 89 percent of sales in fiscal year 2013, from 74 percent in fiscal year 2012.
Fiscal year 2013 net sales of $809.8 million represented a 90 percent increase over fiscal year 2012 net sales of $426.8 million. Audio product line sales of $754.8 million in fiscal year 2013 represented a 115 percent increase over fiscal year 2012 sales of $350.7 million, attributable to higher sales of portable audio products. Energy product line sales of $55.0 million in fiscal year 2013 represented a 28 percent decrease from fiscal year 2012 sales of $76.1 million, which was attributable, primarily to the absence of revenue related to the products associated with our Tucson office asset sale, described in Note 8 — Asset Sale, coupled with decreased sales from our power meter components. Additionally, the restructuring discussed in Note 10 — Restructuring Costs of the consolidated financial statements contributed to this decrease.
In fiscal year 2013, we experienced substantial growth in our revenue and operating profit, significantly expanded our footprint in portable audio, and continued our investments in new LED lighting products.
Overall, gross margin for fiscal year 2013 was 49 percent. Decreases in gross margin for fiscal year 2013 were primarily due to inventory write-downs, including scrapped inventory, and unfavorable product mix. The Company achieved net income of $136.6 million in fiscal year 2013, which included an income tax provision in the amount of $64.6 million. Additionally, the Company’s number of employees decreased slightly to 652 in fiscal year 2013, due to the restructuring discussed in Note 10, partially offset by an increase in new hires.
Fiscal Year 2012
Fiscal year 2012 net sales of $426.8 million represented a 15 percent increase over fiscal year 2011 net sales of $369.6 million. Audio product line sales of $350.7 million in fiscal year 2012 represented a 32 percent increase over fiscal year 2011 sales of $264.8 million and were primarily attributable to higher sales of portable audio products. Energy product line sales of $76.1 million in fiscal year 2012 represented a 27 percent decrease from fiscal year 2011 sales of $104.7 million, and were attributable to decreased sales across product lines, primarily in the seismic product line.
In fiscal year 2012, we launched our first LED controller within our energy product line and continued our strategy of targeting growing markets, to showcase our expertise in analog and digital signal processing to solve challenging problems.
 
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Overall gross margin of 54 percent for fiscal year 2012 represented an approximate 14 percent increase in gross profit over prior years. The Company achieved net income of $88.0 million in fiscal year 2012, which included a benefit for income taxes in the amount of $8.0 million upon realizing net deferred tax assets. Additionally, the Company’s number of employees grew to 667 in the 2012 fiscal year, due to the increased hiring of engineering talent for additional projects.
Results of Operations
The following table summarizes the results of our operations for each of the past three fiscal years as a percentage of net sales. All percentage amounts were calculated using the underlying data, in thousands:

 	  	Fiscal Years Ended	 	
 	  	March 29,
2014	 	 	March 30,
2013	 	 	March 31,
2012	 	
Net sales	  	 	100	% 	 	 	100	% 	 	 	100	% 	
Gross margin	  	 	50	% 	 	 	49	% 	 	 	54	% 	
Research and development	  	 	18	% 	 	 	14	% 	 	 	20	% 	
Selling, general and administrative	  	 	10	% 	 	 	10	% 	 	 	15	% 	
Patent infringement settlements, net	  	 	0	% 	 	 	0	% 	 	 	0	% 	
Restructuring and other, net	  	 	0	% 	 	 	0	% 	 	 	0	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income from operations	  	 	22	% 	 	 	25	% 	 	 	19	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Interest income, net	  	 	0	% 	 	 	0	% 	 	 	0	% 	
Other expense, net	  	 	0	% 	 	 	0	% 	 	 	0	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income before income taxes	  	 	22	% 	 	 	25	% 	 	 	19	% 	
Provision (benefit) for income taxes	  	 	7	% 	 	 	8	% 	 	 	-2	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	15	% 	 	 	17	% 	 	 	21	% 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net Sales
We report sales in two product categories: audio products and energy products. Our sales by product line are as follows (in thousands):

 	  	Fiscal Years Ended	 	
 	  	March 29,
2014	 	  	March 30,
2013	 	  	March 31,
2012	 	
Audio Products	  	$	667,739	  	  	$	754,769	  	  	$	350,743	  	
Energy Products	  	 	46,599	  	  	 	55,017	  	  	 	76,100	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
	  	$	  714,338	  	  	$	  809,786	  	  	$	  426,843	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Net sales for fiscal year 2014 decreased 12 percent, to $714.3 million from $809.8 million in fiscal year 2013. The decrease in net sales reflects an $87.0 million decrease in audio product sales and an $8.4 million decrease in energy product sales. The audio products group experienced a decline in sales from portable audio products, primarily due to anticipated declines in ASPs. The decline in energy product group sales was attributable primarily to the absence of revenue related to the products associated with our Tucson office asset sale, described in Note 8 — Asset Sale.
Net sales for fiscal year 2013 increased 90 percent, to $809.8 million from $426.8 million in fiscal year 2012. The increase in net sales reflects a $404.0 million increase in audio product sales, partially offset by a $21.1 million decrease in energy product sales. The substantial increase in audio revenue was largely driven by sales in portable audio products, where we experienced increases in the ASPs and volumes associated with low power audio codecs. In addition, we saw an increase in portable audio revenue as we began the shipment of a new product, a low power audio amplifier. The decline in energy product group sales was attributable primarily
 
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to the absence of revenue related to the products associated with our Tucson office asset sale, described in Note 8 — Asset Sale, coupled with decreased sales from our power meter components.
Export sales, principally to Asia, including sales to U.S.-based customers that manufacture products at plants overseas, were approximately $673.7 million in fiscal year 2014, $764.9 million in fiscal year 2013, and $376.6 million in fiscal year 2012. Export sales to customers located in Asia were 92 percent, 91 percent, and 79 percent, of net sales in fiscal years 2014, 2013, and 2012, respectively. All other export sales represented 3 percent of net sales in each of fiscal years 2014 and 2013, and 9 percent, of net sales in fiscal year 2012.
Our sales are denominated primarily in U.S. dollars. During fiscal years 2014, 2013, and 2012, we did not enter into any foreign currency hedging contracts.
Gross Margin
Overall gross margin of 50 percent for fiscal year 2014 reflects an increase from fiscal year 2013 gross margin of 49 percent. The increase was primarily attributable to the absence of a significant inventory write-down, which, as discussed below, occurred during the 2013 fiscal year in the amount of $25.5 million, partially offset by changes in product mix. Fiscal year 2014 sales of product written down in prior periods contributed $12.2 million to gross margin compared to less than $0.1 million, in fiscal year 2013. In total, excess and obsolete inventory charges, including scrapped inventory, decreased by $33.6 million from fiscal year 2013 and resulted in an increase of gross margin of 4.7 percent.
Overall gross margin of 49 percent for fiscal year 2013 reflects a decrease from fiscal year 2012 gross margin of 54 percent, primarily due to inventory write-downs in the 2013 fiscal year and unfavorable product mix. Fiscal year 2013 sales of product written down in prior periods contributed less than $0.1 million to gross margin compared to approximately $1.8 million, or 0.4 percent, in fiscal year 2012. In total, excess and obsolete inventory charges, including scrapped inventory, increased by $25.5 million from fiscal year 2012 and resulted in a decrease of gross margin of 3.1 percent. The $25.5 million increase in excess and obsolete inventory charges was primarily associated with a customer build forecast that exceeded actual market demand and resulted in excess inventory levels for certain high volume products.
Research and Development Expenses
Fiscal year 2014 research and development expenses of $126.2 million reflect an increase of $12.1 million, or 11 percent, from fiscal year 2013. The increase was primarily attributable to a 23 percent increase in research and development headcount and associated salary-related expenses. Additionally, during fiscal year 2014, we experienced higher headcount and associated facilities costs, driving increased depreciation and amortization costs. CAD software costs also increased for the year.
Fiscal year 2013 research and development expenses of $114.1 million reflect an increase of $28.4 million, or 33 percent, from fiscal year 2012. The variance was primarily due to a 13 percent increase in research and development headcount and associated salary expenses as well as increased product development costs. Also, in the 2013 fiscal year, depreciation increased as well as expenses related to investments in more CAD software.
Selling, General and Administrative Expenses
Fiscal year 2014 selling, general and administrative expenses of $74.9 million reflect a decrease of $2.1 million, or 3 percent, compared to fiscal year 2013. The decrease was primarily attributable to decreases in variable compensation, sales commissions and travel expenses for the period, despite an increase in headcount of 7 percent.
Fiscal year 2013 selling, general and administrative expenses of $77.0 million reflect an increase of $11.8 million, or 18 percent, compared to fiscal year 2012. The $11.8 million increase was primarily attributable to an increase in employee-related expenses, including bonuses and stock-based compensation, as well as increased external professional services, despite a decrease in headcount of 14 percent.
 
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Patent Infringement Settlements, Net
The Company reported a $0.7 million expense in the first quarter of fiscal year 2014 in connection with the settlement of the U.S. Ethernet Innovations, LLC case discussed in Note 14 — Legal Matters. This item is presented as a separate line item on the Consolidated Statements of Comprehensive Income within operating expenses under the caption “Patent infringement settlements, net.”
Interest Income, Net
Interest income, net in fiscal years 2014, 2013, and 2012, was $0.8 million, $0.4 million, and $0.5 million, respectively. The increase in interest income, net in fiscal year 2014 was due to higher cash and cash equivalent balances, compared to fiscal year 2013. The decrease in fiscal year 2013 was attributable to lower yield on invested capital.
Provision (Benefit) for Income Taxes
We recorded income tax expense of $47.6 million in fiscal year 2014 on a pre-tax income of $155.7 million, yielding an effective tax provision rate of 30.6 percent. Our effective tax rate was lower than the U.S. statutory rate of 35 percent, primarily due to the effect of a tax benefit of $6.3 million provided by the Extraterritorial Income Exclusion Act, an elective provision of the Internal Revenue Code. Another factor causing our tax expense to be below the federal statutory rate was the federal research and development credit which was in effect through December 31, 2013 as a result of the American Taxpayer Relief Act of 2013, which was enacted on January 2, 2013.
We recorded income tax expense of $64.6 million in fiscal year 2013 on a pre-tax income of $201.2 million, yielding an effective tax provision rate of 32.1 percent. Our effective tax rate was lower than the U.S. statutory rate of 35 percent, primarily as a result of federal research and development credits that were recorded during the year due to the retroactive extension of the credit by the enactment of the American Taxpayer Relief Act of 2012 on January 2, 2013. Our effective tax rate was also lowered slightly by the release of $2.6 million of valuation allowance that had been placed on our federal capital loss carryforward from the capital gain income generated by the sale of assets associated with the Company’s Apex products.
We recorded an income tax benefit of $8.0 million in fiscal year 2012 on a pre-tax income of $80.0 million, yielding an effective tax benefit rate of 10 percent. Our effective tax rate was lower than the U.S. statutory rate of 35 percent, primarily as a result of the release of a portion of the valuation allowance on certain deferred tax assets that have not yet been utilized.
We evaluate our ability to realize our deferred tax assets on a quarterly basis. The deferred tax assets that we have recognized result from a more likely than not assessment that these assets will be realized.
Outlook
Our long-term gross margin expectation is to remain in the mid-40 percent range with operating profit of approximately 20-percent. We anticipate revenues for fiscal year 2015 to be relatively flat compared to fiscal year 2014, due to changes in our portable audio pricing structure.
Liquidity and Capital Resources
In fiscal year 2014, our net cash provided by operating activities was $228.0 million. The positive cash flow from operating activities was predominantly due to the cash components of our net income, and a $48.1 million increase in working capital, primarily due to decreases in inventory for the period. In fiscal year 2013, our net cash provided by operating activities was $160.8 million. The positive cash flow from operating activities was predominantly due to the cash components of our net income, partially offset by a $76.1 million reduction in working capital, primarily due to an increase in inventory and accounts receivable as our business grew. In fiscal year 2012, our net cash provided by operating activities was $83.2 million. The positive cash flow from operating activities was predominantly due to the cash components of our net income, partially offset by a $16.8 million reduction in working capital.
 
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In fiscal year 2014, we used approximately $220.3 million in cash for investing activities, principally due to the net purchases of marketable securities of $182.5 million, $15.1 million in capital expenditures and $20.4 million related to the Acoustic acquisition. In fiscal year 2013, we used approximately $84.8 million in cash for investing activities, principally due to the net purchases of marketable securities of $51.5 million and $52.9 million in capital expenditures, partially offset by $22.2 million in proceeds from the sale of assets associated with the Company’s Apex business in Tucson, Arizona. In fiscal year 2012, we generated approximately $18.4 million in cash from investing activities, principally due to the net proceeds from the sale of marketable securities, partially offset by $42 million in capital expenditures and investments in technology.
During fiscal years 2014, 2013, and 2012, we generated $5.3 million, $12.0 million, and $4.1 million, respectively, in cash from financing activities related to the receipt of cash from common stock issuances as a result of the exercises of employee stock options, net the cash paid by the Company for withholding taxes associated with the vesting of employee restricted stock units. In fiscal years 2014 and 2013, the Company utilized approximately $52.1 million and $86.1 million, respectively, in cash to repurchase and retire portions of its outstanding common stock as part of the $200 million stock repurchase program announced in the third quarter of fiscal year 2013. In fiscal year 2012, the Company utilized approximately $76.8 million in cash to repurchase and retire portions of its outstanding common stock as part of the $80 million stock repurchase program that began in fiscal year 2011. Additionally, excess tax benefits related to employee stock options exercises generated $8.4 million and $0.1 million, in fiscal years 2014 and 2013, respectively.
On April 19, 2012, the Company entered into a credit agreement (the “Expired Credit Agreement”) providing for a $100 million unsecured revolving credit facility with a $15 million letter of credit sublimit. This credit facility expired on April 19, 2013, and the Company chose not to renew the Expired Credit Agreement. The Company did not draw against the revolving line of credit. On April 29, 2014, the Company entered into a $225 million senior secured revolving line of credit facility to fund the Offer Consideration payable in the Acquisition. The Acquisition is expected to close in the second half of calendar year 2014. See “Revolving Credit Facilities” below for additional details regarding both facilities.
The Company began expansion of operations in fiscal year 2014 with the acquisition and building of additional facilities in Austin. We anticipate future costs related to the current expansion to range from $18 million to $20 million over the next year. We anticipate these cash uses to be funded from current cash sources.
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 acquisitions of companies or technologies and the expansion of our sales and marketing activities. We believe our expected future cash earnings, existing cash, cash equivalents, investments and credit under our Credit Facility are sufficient to meet our capital requirements through at least the next 12 months, although we could be required, or could elect, to seek additional funding prior to that time.
Revolving Credit Facilities
On April 29, 2014, we entered into the Credit Agreement with Wells Fargo Bank, National Association as administrative agent and lender. The Credit Agreement provides for a $225 million senior secured revolving credit facility. The Credit Facility may be used for, among other things, payment of the Offer Consideration in connection with the Acquisition.
The Credit Facility matures on the earliest to occur of (a) January 23, 2015, (b) the date of termination of the Commitments as a result of a permanent reduction of all of the Commitments (as defined therein) by Cirrus Logic or (c) the date of termination of the Commitments as a result of an event of default (such date, the “Maturity Date”). We must repay the outstanding principal amount of all borrowings, together with all accrued but unpaid interest thereon, on the Maturity Date. The Credit Facility is required to be guaranteed by all of Cirrus Logic’s material domestic subsidiaries (the “Subsidiary Guarantors”). The Credit Facility is secured by substantially all of the assets of Cirrus Logic and any Subsidiary Guarantors, except for certain excluded assets.
Borrowings under the Credit Facility may, at our election, bear interest at either (a) a base rate plus the applicable margin (“Base Rate Loans”) or (b) a LIBOR rate plus the applicable margin (“LIBOR Rate Loans”). The applicable margin ranges from 0% to .25% per annum for Base Rate Loans and 1.75% to 2.25% per
 
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annum for LIBOR Rate Loans based on Cirrus Logic’s Leverage Ratio (as defined below). A commitment fee accrues at a rate per annum ranging from 0.30% to 0.40% (based on the Leverage Ratio) on the average daily unused portion of the commitments of the lenders.
We are entitled to borrow only in U.S. dollars under the Credit Facility. The Offer Consideration in connection with the Acquisition is payable in Great Britain pounds sterling; therefore, we entered into a separate nine-month foreign currency hedging contract with Wells Fargo, which is expected to mitigate the risk of fluctuations in the dollar/pounds sterling exchange rates in relation to the payment of the Offer Consideration in connection with the Acquisition.
The 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. Further, the Credit Agreement 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. The Credit Facility also contains certain financial covenants providing that (a) the ratio of consolidated funded indebtedness to consolidated EBITDA for the prior four consecutive quarters must not be greater than 1.75 to 1.00 (the “Leverage Ratio”) and (b) the sum of cash and cash equivalents of Cirrus Logic and its subsidiaries on a consolidated basis must not be less than $75 million.
The Credit Facility provides for a “Certain Funds Period” during which limited borrowing conditions apply and only breaches of certain major representations and major defaults or illegality may prevent funding the Offer Consideration in order to comply with the certain funds requirements of the United Kingdom City Code on Takeover and Mergers. Following the Certain Funds Period, the Credit Facility provides for a clean-up period to permit us to cure certain technical breaches.
The Company also maintained the Expired Credit Agreement with Wells Fargo Bank, National Association, as administrative agent and issuing lender, Barclays Bank, as syndication agent, Wells Fargo Securities, LLC and Barclays Capital, as joint lead arrangers and co-book managers, and the lenders referred to therein (collectively, the “Lenders”). The aggregate borrowing limit under the unsecured revolving credit facility was $100 million with a $15 million letter of credit sublimit and was intended to provide the Company with short-term borrowings for working capital and other general corporate purposes.
The Expired Credit Agreement contained 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. Further, the Expired Credit Agreement contained customary negative covenants limiting the ability of the Company or any Subsidiary Guarantors to, among other things, incur debt, grant liens, make investments, effect certain fundamental changes, make certain asset dispositions, make certain restricted payments, enter into certain transactions with affiliates and permit aggregate capital expenditures to exceed $90.0 million on a rolling four-quarter basis. The facility also contained certain negative financial covenants providing that (a) the ratio of consolidated funded indebtedness to consolidated EBITDA for the prior four consecutive quarters must not be greater than 1.75 to 1.00 and (b) the ratio of consolidated EBITDA for the prior four consecutive quarters to consolidated interest expense for the prior four consecutive quarters must not be less than 3.50 to 1.00. The Company was in compliance with these covenants and there were no borrowings under the facility through April 19, 2013. The credit facility expired on April 19, 2013 and was not renewed.
See also Note 9 — Revolving Line of Credit.
Off Balance Sheet Arrangements
As of March 29, 2014, the Company did not have any material off-balance-sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.
 
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Contractual Obligations
In our business activities, we incur certain commitments to make future payments under contracts such as purchase orders, operating leases and other long-term contracts. Maturities under these contracts are set forth in the following table as of March 29, 2014:

 	  	Payment due by period (in thousands)	 	
 	  	< 1 year	 	  	1 – 3 years	 	  	3 – 5 years	 	  	> 5 years	 	  	Total	 	
Facilities leases, net	  	$	3,054	  	  	$	5,115	  	  	$	1,196	  	  	$	—	  	  	$	9,365	  	
Equipment leases	  	 	11	  	  	 	13	  	  	 	9	  	  	 	—	  	  	 	33	  	
Wafer purchase commitments	  	 	36,717	  	  	 	—	  	  	 	—	  	  	 	—	  	  	 	36,717	  	
Assembly purchase commitments	  	 	2,053	  	  	 	—	  	  	 	—	  	  	 	—	  	  	 	2,053	  	
Outside test purchase commitments	  	 	5,321	  	  	 	—	  	  	 	—	  	  	 	—	  	  	 	5,321	  	
Other purchase commitments	  	 	—	  	  	 	—	  	  	 	—	  	  	 	—	  	  	 	—	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	    47,156	  	  	$	    5,128	  	  	$	    1,205	  	  	$	    —	  	  	$	    53,489	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Certain of our operating lease obligations include escalation clauses. These escalating payment requirements are reflected in the table.
 ITEM 7A.   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-U.S. dollar denominated assets and liabilities, and the effect of market factors on the value of our marketable equity 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. All of the potential changes noted below are based on sensitivity analyses as of March 29, 2014. Actual results may differ materially.
Interest Rate Risk
Our primary financial instruments include cash equivalents, marketable securities, accounts receivable, accounts payable, and accrued liabilities. The Company’s investments are managed by outside professional managers within investment guidelines set by the Company. These guidelines include security type, credit quality, and maturity, and are intended to limit market risk by restricting the Company’s investments to high quality debt instruments with relatively short-term maturities. The Company does not use derivative financial instruments in its investment portfolio. Due to the short-term nature of our investment portfolio and the current low interest rate environment, our downside exposure to interest rate risk is minimal.
To provide a meaningful assessment of the interest rate risk associated with our investment portfolio, we performed a sensitivity analysis to determine the impact a change in interest rates would have on the value of our investment portfolio. At March 29, 2014, an immediate one percent, or 100 basis points, increase or decrease in interest rates could result in a $3.4 million fluctuation in our annual interest income. However, our investment portfolio holdings as of March 29, 2014, yielded less than 100 basis points, which reduces our downside interest rate risk to the amount of interest income recognized in fiscal year 2014, or $0.8 million. At March 30, 2013, an immediate one percent, or 100 basis points, increase or decrease in interest rates could result in a $1.8 million fluctuation in our annual interest income. However, our investment portfolio holdings as of March 30, 2013, yielded less than 100 basis points, which reduces our downside interest rate risk to the amount of interest income recognized in fiscal year 2013, or $0.4 million. At March 31, 2012, an immediate one percent, or 100 basis points, increase or decrease in interest rates could result in a $0.6 million fluctuation in our annual interest income. However, our investment portfolio holdings as of March 31, 2012, yielded less than 100 basis points, which reduces our downside interest rate risk to the amount of interest income recognized in fiscal year 2012, or $0.5 million. For all of these fiscal years, the risks associated with fluctuating interest rates were limited to our annual interest income and not the underlying principal as we generally have the ability to hold debt related
 
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investments to maturity. The amounts disclosed in this paragraph are based on a 100 basis point fluctuation in interest rates applied to the average cash balance for that fiscal year.
Foreign Currency Exchange Risk
Our revenue and spending is transacted primarily in U.S. dollars; however, in fiscal years 2014, 2013, and 2012, we entered into routine transactions in other currencies to fund the operating needs of our technical support, and sales offices outside of the U.S. As of March 29, 2014 and March 30, 2013, a ten percent change in the value of the related currencies would not have a material impact on our results of operations and financial position. During fiscal years 2014, 2013, and 2012, we did not enter into any foreign currency hedging contracts. See Note 20 — Subsequent Event for further detail regarding the Wolfson acquisition.
In addition to the direct effects of changes in exchange rates on the value of open exchange contracts, we may, from time to time, have changes in exchange rates that can also affect the volume of sales or the foreign currency sales prices of our products and the relative costs of operations based overseas.
 ITEM 8.   Financial Statements and Supplementary Data 
Index to Consolidated Financial Statements

Reports of Independent Registered Public Accounting Firm	  	 	38	  	
Consolidated Balance Sheets as of March 29, 2014 and March 30, 2013	  	 	40	  	
Consolidated Statements of Comprehensive Income for the Fiscal Years Ended March 29, 2014,  March 30, 2013, and March 31, 2012	  	 	41	  	
Consolidated Statements of Cash Flows for the Fiscal Years Ended March 29, 2014, March  30, 2013, and March 31, 2012	  	 	42	  	
Consolidated Statements of Stockholders’ Equity for the Fiscal Years Ended March  29, 2014, March 30, 2013, and March 31, 2012	  	 	43	  	
Notes to Consolidated Financial Statements	  	 	44	  	
 
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 Report of Independent Registered Public Accounting Firm
The Board of Directors and Stockholders of Cirrus Logic, Inc.
We have audited the accompanying consolidated balance sheets of Cirrus Logic, Inc. (the Company) as of March 29, 2014 and March 30, 2013, and the related consolidated statements of comprehensive income, stockholders’ equity, and cash flows for each of the three fiscal years in the period ended March 29, 2014. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Cirrus Logic, Inc. at March 29, 2014 and March 30, 2013, and the consolidated results of its operations and its cash flows for each of the three fiscal years in the period ended March 29, 2014, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Cirrus Logic, Inc.’s internal control over financial reporting as of March 29, 2014, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (1992 framework) and our report dated May 28, 2014 expressed an unqualified opinion thereon .
/s/ Ernst & Young LLP
Austin, Texas
May 28, 2014
 
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Report of Independent Registered Public Accounting Firm
The Board of Directors and Stockholders of Cirrus Logic, Inc.
We have audited Cirrus Logic, Inc.’s (the Company) internal control over financial reporting as of March 29, 2014, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (1992 framework) (the COSO criteria). Cirrus Logic, Inc.’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
In our opinion, Cirrus Logic, Inc. maintained, in all material respects, effective internal control over financial reporting as of March 29, 2014, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Cirrus Logic, Inc. as of March 29, 2014 and March 30, 2013, and the related consolidated statements of comprehensive income, stockholders’ equity, and cash flows for each of the three fiscal years in the period ended March 29, 2014 of Cirrus Logic, Inc. and our report dated May 28, 2014 expressed an unqualified opinion thereon.
/s/ Ernst & Young LLP
Austin, Texas
May 28, 2014
 
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CIRRUS LOGIC, INC.
 CONSOLIDATED BALANCE SHEETS
(in thousands)
									
 	  	March 29,
2014	 	 	March 30,
2013	 	
Assets	  				 				
Current assets:	  				 				
Cash and cash equivalents	  	$	31,850	  	 	$	66,402	  	
Marketable securities	  	 	263,417	  	 	 	105,235	  	
Accounts receivable, net	  	 	63,220	  	 	 	69,289	  	
Inventories	  	 	69,743	  	 	 	119,300	  	
Deferred tax assets	  	 	22,024	  	 	 	64,937	  	
Other current assets	  	 	25,079	  	 	 	19,371	  	
	  	 	 	 	 	 	 	 	
Total current assets	  	 	475,333	  	 	 	444,534	  	
Long-term marketable securities	  	 	89,243	  	 	 	64,910	  	
Property and equipment, net	  	 	103,650	  	 	 	100,623	  	
Goodwill and intangibles, net	  	 	28,366	  	 	 	10,677	  	
Deferred tax assets	  	 	25,065	  	 	 	16,671	  	
Other assets	  	 	3,087	  	 	 	13,932	  	
	  	 	 	 	 	 	 	 	
Total assets	  	$	724,744	  	 	$	651,347	  	
	  	 	 	 	 	 	 	 	
Liabilities and Stockholders’ Equity	  				 				
Current liabilities:	  				 				
Accounts payable	  	$	51,932	  	 	$	60,827	  	
Accrued salaries and benefits	  	 	13,388	  	 	 	16,592	  	
Deferred income	  	 	5,631	  	 	 	4,956	  	
Software license agreement	  	 	7,023	  	 	 	6,424	  	
Other accrued liabilities	  	 	4,549	  	 	 	4,280	  	
	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	82,523	  	 	 	93,079	  	
Long-term liabilities	  	 	4,863	  	 	 	10,094	  	
Stockholders’ equity:	  				 				
Preferred stock, 5.0 million shares authorized but unissued	  	 	—	  	 	 	—	  	
Common stock, $0.001 par value, 280,000 shares authorized, 61,956 shares and 63,291 shares issued and outstanding at March 29, 2014 and March 30, 2013, respectively	  	 	62	  	 	 	63	  	
Additional paid-in capital	  	 	1,078,816	  	 	 	1,041,771	  	
Accumulated deficit	  	 	(440,634	) 	 	 	(492,741	) 	
Accumulated other comprehensive loss	  	 	(886	) 	 	 	(919	) 	
	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	637,358	  	 	 	548,174	  	
	  	 	 	 	 	 	 	 	
Total liabilities and stockholders’ equity	  	$	724,744	  	 	$	651,347	  	
	  	 	 	 	 	 	 	 	
The accompanying notes are an integral part of these financial statements.
 
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CIRRUS LOGIC, INC.
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share amounts)

 	  	Fiscal Years Ended	 	
 	  	March 29,
2014	 	 	March 30,
2013	 	 	March 31,
2012	 	
Net sales	  	$	714,338	  	 	$	809,786	  	 	$	426,843	  	
Cost of sales	  	 	358,175	  	 	 	414,595	  	 	 	196,402	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	  	 	356,163	  	 	 	395,191	  	 	 	230,441	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses	  				 				 				
Research and development	  	 	126,189	  	 	 	114,071	  	 	 	85,697	  	
Selling, general and administrative	  	 	74,861	  	 	 	76,998	  	 	 	65,208	  	
Patent infringement settlements, net	  	 	695	  	 	 	—	  	 	 	—	  	
Restructuring and other, net	  	 	(598	) 	 	 	3,292	  	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	201,147	  	 	 	194,361	  	 	 	150,905	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income from operations	  	 	155,016	  	 	 	200,830	  	 	 	79,536	  	
Interest income, net	  	 	848	  	 	 	440	  	 	 	517	  	
Other expense, net	  	 	(127	) 	 	 	(80	) 	 	 	(70	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Income before income taxes	  	 	155,737	  	 	 	201,190	  	 	 	79,983	  	
Provision (benefit) for income taxes	  	 	47,626	  	 	 	64,592	  	 	 	(8,000	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	108,111	  	 	 	136,598	  	 	 	87,983	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Change in unrealized gain (loss) on marketable securities, net of tax	  	 	33	  	 	 	(157	) 	 	 	(8	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Comprehensive income	  	$	108,144	  	 	$	136,441	  	 	$	87,975	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Basic earnings per share	  	$	1.72	  	 	$	2.12	  	 	$	1.35	  	
Diluted earnings per share	  	$	1.65	  	 	$	2.00	  	 	$	1.29	  	
Basic weighted average common shares outstanding	  	 	62,926	  	 	 	64,580	  	 	 	64,934	  	
Diluted weighted average common shares outstanding	  	 	65,535	  	 	 	68,454	  	 	 	68,063	  	
The accompanying notes are an integral part of these financial statements.
 
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CIRRUS LOGIC, INC.
 CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 	 	Fiscal Years Ended	 	
 	 	March 29,
2014	 	 	March 30,
2013	 	 	March 31,
2012	 	
Cash flows from operating activities:	 				 				 				
Net income	 	$	108,111	  	 	$	136,598	  	 	$	87,983	  	
Adjustments to reconcile net income to net cash provided by operating activities:	 				 				 				
Depreciation and amortization	 	 	14,883	  	 	 	13,562	  	 	 	9,972	  	
Stock compensation expense	 	 	23,074	  	 	 	21,495	  	 	 	12,178	  	
Deferred income taxes	 	 	35,959	  	 	 	60,600	  	 	 	(10,154	) 	
Loss on retirement or write-off of long-lived assets	 	 	568	  	 	 	—	  	 	 	23	  	
Excess tax benefit related to the exercise of employee stock options	 	 	(8,445	) 	 	 	(106	) 	 	 	—	  	
Other non-cash charges	 	 	5,760	  	 	 	4,792	  	 	 	—	  	
Net change in operating assets and liabilities:	 				 				 				
Accounts receivable, net	 	 	6,815	  	 	 	(25,232	) 	 	 	(5,055	) 	
Inventories	 	 	49,557	  	 	 	(67,606	) 	 	 	(15,418	) 	
Other assets	 	 	1,239	  	 	 	134	  	 	 	(9,783	) 	
Accounts payable	 	 	(9,443	) 	 	 	22,423	  	 	 	10,469	  	
Accrued salaries and benefits	 	 	(3,169	) 	 	 	3,260	  	 	 	1,232	  	
Deferred income	 	 	660	  	 	 	(2,272	) 	 	 	384	  	
Income taxes payable	 	 	9,496	  	 	 	263	  	 	 	(130	) 	
Other accrued liabilities	 	 	(7,027	) 	 	 	(7,087	) 	 	 	1,494	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by operating activities	 	 	228,038	  	 	 	160,824	  	 	 	83,195	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from investing activities:	 				 				 				
Proceeds from sale of available for sale marketable securities	 	 	139,037	  	 	 	127,336	  	 	 	181,282	  	
Purchases of available for sale marketable securities	 	 	(321,519	) 	 	 	(178,847	) 	 	 	(127,852	) 	
Purchases of property, equipment and software	 	 	(15,058	) 	 	 	(52,902	) 	 	 	(35,948	) 	
Acquisition of Acoustic Technologies, net of cash obtained	 	 	(20,402	) 	 	 	—	  	 	 	—	  	
Proceeds from sale of Apex assets	 	 	—	  	 	 	22,220	  	 	 	—	  	
Investments in technology	 	 	(2,296	) 	 	 	(3,009	) 	 	 	(6,604	) 	
Decrease in restricted investments	 	 	—	  	 	 	—	  	 	 	5,786	  	
(Increase) decrease in deposits and other assets	 	 	(111	) 	 	 	402	  	 	 	1,773	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash (used in) provided by investing activities	 	 	(220,349	) 	 	 	(84,800	) 	 	 	18,437	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from financing activities:	 				 				 				
Issuance of common stock, net of shares withheld for taxes	 	 	5,320	  	 	 	12,008	  	 	 	4,108	  	
Repurchase and retirement of common stock	 	 	(52,138	) 	 	 	(86,059	) 	 	 	(76,782	) 	
Repurchase of stock to satisfy employee tax withholding obligations	 	 	(3,868	) 	 	 	(1,674	) 	 	 	—	  	
Excess tax benefit related to the exercise of employee stock options	 	 	8,445	  	 	 	106	  	 	 	—	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash used in financing activities	 	 	(42,241	) 	 	 	(75,619	) 	 	 	(72,674	) 	
	 	 	 	 	 	 	 	 	 	 	 	 	
Net (decrease) increase in cash and cash equivalents	 	 	(34,552	) 	 	 	405	  	 	 	28,958	  	
Cash and cash equivalents at beginning of period	 	 	66,402	  	 	 	65,997	  	 	 	37,039	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	 	$	31,850	  	 	$	66,402	  	 	$	65,997	  	
	 	 	 	 	 	 	 	 	 	 	 	 	
Supplemental disclosures of cash flow information	 				 				 				
Cash payments during the year for:	 				 				 				
Income taxes	 	$	2,118	  	 	$	5,125	  	 	$	2,268	  	
The accompanying notes are an integral part of these financial statements.
 
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CIRRUS LOGIC, INC.
 CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands)

 	  	 	 	 	 	 	 	 	 	  	 	 	 	Accumulated
Other
Comprehensive
Loss	 	 	 	 	
 	  	 	 	 	 	 	 	Additional
Paid-In
Capital	 	  	 	 	 			 	 	 	
 	  	Common Stock	 	 			  	Accumulated
Deficit	 	 			 	 	 	
 	  	Shares	 	 	Amount	 	 			  			 			 	Total	 	
Balance, March 26, 2011	  	 	68,664	 	 	 	69	 	 	 	991,878	 	  	 	(552,814	) 	 	 	(754	) 	 	 	438,379	 	
Net income	  	 	—	  	 	 	—	  	 	 	—	  	  	 	87,983	 	 	 	—	  	 	 	87,983	 	
Change in unrealized gain (loss) on marketable securities, net of tax	  	 	—	  	 	 	—	  	 	 	—	  	  	 	—	  	 	 	(8	) 	 	 	(8	) 	
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes	  	 	642	 	 	 	—	  	 	 	4,108	 	  	 	—	  	 	 	—	  	 	 	4,108	 	
Repurchase and retirement of common stock	  	 	(4,912	) 	 	 	(5	) 	 	 	—	  	  	 	(76,778	) 	 	 	—	  	 	 	(76,783	) 	
Amortization of deferred stock compensation	  	 	—	  	 	 	—	  	 	 	12,178	 	  	 	—	  	 	 	—	  	 	 	12,178	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Balance, March 31, 2012	  	 	64,394	 	 	 	64	 	 	 	1,008,164	 	  	 	(541,609	) 	 	 	(762	) 	 	 	465,857	 	
Net income	  	 	—	  	 	 	—	  	 	 	—	  	  	 	136,598	 	 	 	—	  	 	 	136,598	 	
Change in unrealized gain (loss) on marketable securities, net of tax	  	 	—	  	 	 	—	  	 	 	—	  	  	 	—	  	 	 	(157	) 	 	 	(157	) 	
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes	  	 	1,907	 	 	 	2	 	 	 	12,006	 	  	 	(1,674	) 	 	 	—	  	 	 	10,334	 	
Repurchase and retirement of common stock	  	 	(3,010	) 	 	 	(3	) 	 	 	—	  	  	 	(86,056	) 	 	 	—	  	 	 	(86,059	) 	
Amortization of deferred stock compensation	  	 	—	  	 	 	—	  	 	 	21,495	 	  	 	—	  	 	 	—	  	 	 	21,495	 	
Excess tax benefit from employee stock options	  	 	—	  	 	 	—	  	 	 	106	 	  	 	—	  	 	 	—	  	 	 	106	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Balance, March 30, 2013	  	 	63,291	 	 	 	63	 	 	 	1,041,771	 	  	 	(492,741	) 	 	 	(919	) 	 	 	548,174	 	
Net income	  	 	—	  	 	 	—	  	 	 	—	  	  	 	108,111	 	 	 	—	  	 	 	108,111	 	
Change in unrealized gain (loss) on marketable securities, net of tax	  	 	—	  	 	 	—	  	 	 	—	  	  	 	—	  	 	 	33	 	 	 	33	 	
Issuance of stock under stock option plans and other, net of shares withheld for employee taxes	  	 	1,301	 	 	 	1	 	 	 	5,319	 	  	 	(3,868	) 	 	 	—	  	 	 	1,452	 	
Repurchase and retirement of common stock	  	 	(2,636	) 	 	 	(2	) 	 	 	—	  	  	 	(52,136	) 	 	 	—	  	 	 	(52,138	) 	
Amortization of deferred stock compensation	  	 	—	  	 	 	—	  	 	 	23,281	 	  	 	—	  	 	 	—	  	 	 	23,281	 	
Excess tax benefit from employee stock options	  	 	—	  	 	 	—	  	 	 	8,445	 	  	 	—	  	 	 	—	  	 	 	8,445	 	
	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	
Balance, March 29, 2014	  	 	61,956	 	 	 	62	 	 	 	1,078,816	 	  	 	(440,634	) 	 	 	(886	) 	 	 	637,358	 	
The accompanying notes are an integral part of these financial statements.
 
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CIRRUS LOGIC, INC . 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
1.	Description of Business	
Description of Business
Cirrus Logic, Inc. (“Cirrus Logic,” “We,” “Us,” “Our,” or the “Company”) develops high-precision, analog and mixed-signal integrated circuits (“ICs”) for a broad range of consumer and industrial markets. Building on our diverse analog mixed-signal patent portfolio, Cirrus Logic delivers highly optimized products for consumer and professional audio, automotive entertainment, and targeted industrial applications including energy control, energy management, light emitting diode (“LED”) and energy exploration.
We were incorporated in California in 1984, became a public company in 1989, and were reincorporated in the State of Delaware in February 1999. Our primary facility housing engineering, sales and marketing, and administration functions is located in Austin, Texas. In addition, we have sales locations internationally and throughout the United States. Specifically, we serve customers from international sales offices in Europe and Asia, including the People’s Republic of China, Hong Kong, South Korea, Japan, Singapore, Taiwan, and the United Kingdom. Our common stock, which has been publicly traded since 1989, is listed on the NASDAQ Global Select Market under the symbol CRUS.
Basis of Presentation
We prepare financial statements on a 52- or 53-week year that ends on the last Saturday in March. Fiscal years 2014 and 2013 were 52-week years, whereas fiscal year 2012 was a 53-week year.
Principles of Consolidation
The accompanying consolidated financial statements have been prepared in accordance with U. S. generally accepted accounting principles (U.S. GAAP) and include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated.
Reclassifications
Certain reclassifications have been made to prior year balances in order to conform to the current year’s presentation of financial information.
Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP requires the use of management estimates. These estimates are subjective in nature and involve judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at fiscal year-end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates.
 
2.	Summary of Significant Accounting Policies	
Cash and Cash Equivalents
Cash and cash equivalents consist primarily of money market funds, commercial paper, and U.S. Government Treasury and Agency instruments with original maturities of three months or less at the date of purchase.
Marketable Securities
We determine the appropriate classification of marketable securities at the time of purchase and reevaluate this designation as of each balance sheet date. We classify these securities as either held-to-maturity, trading, or available-for-sale. As of March 29, 2014 and March 30, 2013, all marketable securities were classified as
 
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available-for-sale securities. The Company classifies its investments as “available for sale” because it expects to possibly sell some securities prior to maturity. The Company’s investments are subject to market risk, primarily interest rate and credit risk. The Company’s investments are managed by an outside professional manager within investment guidelines set by the Company. Such guidelines include security type, credit quality, and maturity, and are intended to limit market risk by restricting the Company’s investments to high quality debt instruments with relatively short-term maturities. The fair value of investments is determined using observable or quoted market prices for those securities.
Available-for-sale securities are carried at fair value, with unrealized gains and losses included as a component of accumulated other comprehensive loss. Realized gains and losses, declines in value judged to be other than temporary, and interest on available-for-sale securities are included in net income. The cost of securities sold is based on the specific identification method.
Inventories
We use the lower of cost or market method to value our inventories, with cost being determined on a first-in, first-out basis. One of the factors we consistently evaluate in the application of this method is the extent to which products are accepted into the marketplace. By policy, we evaluate market acceptance based on known business factors and conditions by comparing forecasted customer unit demand for our products over a specific future period, or demand horizon, to quantities on hand at the end of each accounting period.
On a quarterly and annual basis, we analyze inventories on a part-by-part basis. Product life cycles and the competitive nature of the industry are factors considered in the evaluation of customer unit demand at the end of each quarterly accounting period. Inventory quantities on-hand in excess of forecasted demand is considered to have reduced market value and, therefore, the cost basis is adjusted to the lower of cost or market. Typically, market values for excess or obsolete inventories are considered to be zero. During fiscal year 2013, the Company recorded excess and obsolete inventory charges of $25.5 million, primarily associated with a customer build forecast that exceeded actual market demand and resulted in excess inventory levels for certain high volume products. No significant inventory charges were recorded in fiscal year 2014 for excess and obsolete inventory.
Inventories were comprised of the following (in thousands):

 	  	March 29,
2014	 	  	March 30,
2013	 	
Work in process	  	$	37,967	  	  	$	34,169	  	
Finished goods	  	 	31,776	  	  	 	85,131	  	
	  	 	 	 	  	 	 	 	
	  	$	69,743	  	  	$	119,300	  	
	  	 	 	 	  	 	 	 	
Property, Plant and Equipment, net
Property, plant and equipment is recorded at cost, net of depreciation and amortization. Depreciation and amortization is calculated on a straight-line basis over estimated economic lives, ranging from three to 39 years. Leasehold improvements are depreciated over the shorter of the term of the lease or the estimated useful life. Furniture, fixtures, machinery, and equipment are all depreciated over a useful life of three to 10 years, while buildings are depreciated over a period of up to 39 years. In general, our capitalized software is amortized over a useful life of three years, with capitalized enterprise resource planning software being amortized over a useful life of 10 years. Gains or losses related to retirements or dispositions of fixed assets are recognized in the period incurred.
 
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Property, plant and equipment was comprised of the following (in thousands):

 	  	March 29,
2014	 	 	March 30,
2013	 	
Land	  	$	23,806	  	 	$	23,778	  	
Buildings	  	 	37,899	  	 	 	38,257	  	
Furniture and fixtures	  	 	9,440	  	 	 	9,677	  	
Leasehold improvements	  	 	2,387	  	 	 	1,091	  	
Machinery and equipment	  	 	59,552	  	 	 	51,080	  	
Capitalized software	  	 	24,437	  	 	 	24,671	  	
Construction in progress	  	 	3,797	  	 	 	2,528	  	
	  	 	 	 	 	 	 	 	
Total property, plant and equipment	  	 	161,318	  	 	 	151,082	  	
Less: Accumulated depreciation and amortization	  	 	(57,668	) 	 	 	(50,459	) 	
	  	 	 	 	 	 	 	 	
Property, plant and equipment, net	  	$	103,650	  	 	$	100,623	  	
	  	 	 	 	 	 	 	 	
Depreciation and amortization expense on property, plant, and equipment for fiscal years 2014, 2013, and 2012, was $12.1 million, $10.2 million, and $6.3 million, respectively.
Goodwill and Intangibles, net
Intangible assets include purchased technology licenses and patents that are reported at cost and are amortized on a straight-line basis over their useful lives, generally ranging from one to ten years. Acquired intangibles include existing technology, core technology or patents, license agreements, trademarks, tradenames, and customer relationships. These assets are amortized on a straight-line basis over lives ranging from four to fifteen years.
Goodwill is recorded at the time of an acquisition and is calculated as the difference between the aggregate consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired. Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests. If the assumptions and estimates used to allocate the purchase price are not correct, or if business conditions change, purchase price adjustments or future asset impairment charges could be required. The value of our intangible assets, including goodwill, could be impacted by future adverse changes such as: (i) any future declines in our operating results, (ii) a decline in the valuation of technology company stocks, including the valuation of our common stock, (iii) a significant slowdown in the worldwide economy and the semiconductor industry, or (iv) any failure to meet the performance projections included in our forecasts of future operating results. The Company tests goodwill and indefinite lived intangibles for impairment on an annual basis or more frequently if the Company believes indicators of impairment exist. Impairment evaluations involve management’s assessment of qualitative factors to determine whether it is more likely than not that goodwill and other intangible assets are impaired. If management concludes from its assessment of qualitative factors that it is more likely than not that impairment exists, then a quantitative impairment test will be performed involving management estimates of asset useful lives and future cash flows. Significant management judgment is required in the forecasts of future operating results that are used in these evaluations. If our actual results, or the plans and estimates used in future impairment analyses, are lower than the original estimates used to assess the recoverability of these assets, we could incur additional impairment charges in a future period. There were no impairments of goodwill in fiscal years 2014, 2013 or 2012. There were no material intangible asset impairments in fiscal years 2014, 2013 and 2012.
Long-Lived Assets
We test for impairment losses on long-lived assets and definite-lived intangibles used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. We measure any impairment loss by comparing the fair value of the asset to its carrying amount. We estimate fair value based on discounted future cash flows, quoted market prices, or independent appraisals.
 
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Foreign Currency Translation
All of our international subsidiaries have the U.S. dollar as the functional currency. The local currency financial statements are remeasured into U.S. dollars using current rates of exchange for assets and liabilities. Gains and losses from remeasurement are included in other income (expense), net. Revenue and expenses from our international subsidiaries are remeasured using the monthly average exchange rates in effect for the period in which the items occur. For all periods presented, our foreign currency remeasurement expense was not significant.
Concentration of Credit Risk
Financial instruments that potentially subject us to material concentrations of credit risk consist primarily of cash equivalents, marketable securities, long-term marketable securities, and trade accounts receivable. We are exposed to credit risk to the extent of the amounts recorded on the balance sheet. By policy, our cash equivalents, marketable securities, and long-term marketable securities are subject to certain nationally recognized credit standards, issuer concentrations, sovereign risk, and marketability or liquidity considerations.
In evaluating our trade receivables, we perform credit evaluations of our major customers’ financial condition and monitor closely all of our receivables to limit our financial exposure by limiting the length of time and amount of credit extended. In certain situations, we may require payment in advance or utilize letters of credit to reduce credit risk. By policy, we establish a reserve for trade accounts receivable based on the type of business in which a customer is engaged, the length of time a trade account receivable is outstanding, and other knowledge that we may possess relating to the probability that a trade receivable is at risk for non-payment.
We had three contract manufacturers, Futaihua Industrial, Hongfujin Precision and Protek, who represented 14 percent, 44 percent, and 12 percent, respectively, for fiscal year 2014 and 21 percent, 36 percent, and 16 percent, respectively for fiscal year 2013, of our consolidated gross accounts receivable. Additionally, in fiscal year 2014, we had one distributor, Avnet, Inc. who represented 11 percent of our consolidated gross accounts receivable. No other distributor or customer had receivable balances that represented more than 10 percent of consolidated gross trade accounts receivable as of the end of fiscal year 2014 or 2013.
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 2014, 2013, and 2012, our ten largest end customers represented approximately 88 percent, 89 percent, and 74 percent, of our sales, respectively. For fiscal years 2014, 2013, and 2012, we had one end customer, Apple Inc., who purchased through multiple contract manufacturers and represented approximately 80 percent, 82 percent, and 62 percent, of the Company’s total sales, respectively. Further, we had one distributor, Avnet, Inc., that represented 15 percent of our sales for fiscal year 2012. No other customer or distributor represented more than 10 percent of net sales in fiscal years 2014, 2013, or 2012.
Revenue Recognition
We recognize revenue when all of the following criteria are met: persuasive evidence that an arrangement exists, delivery of goods has occurred, the sales price is fixed or determinable and collectability is reasonably assured. We evaluate our distributor arrangements, on a distributor by distributor basis, with respect to each of the four criteria above. For a majority of our distributor arrangements, we provide rights of price protection and stock rotation. As a result, revenue is deferred at the time of shipment to our domestic distributors and certain international distributors due to the determination that the ultimate sales price to the distributor is not fixed or determinable. Once the distributor has resold the product, and our final sales price is fixed or determinable, we recognize revenue for the final sales price and record the related costs of sales. For certain of our smaller international distributors, we do not grant price protection rights and provide minimal stock rotation rights. For these distributors, revenue is recognized upon delivery to the distributor, less an allowance for estimated returns, as the revenue recognition criteria have been met upon shipment.
 
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Further, for sales where revenue is deferred, the Company defers the associated cost of goods sold on our Consolidated Balance Sheet, net within the deferred income caption. The Company routinely evaluates the products held by our distributors for impairment to the extent such products may be returned by the distributor within these limited rights and such products would be considered excess or obsolete if included within our own inventory. Products returned by distributors and subsequently scrapped have historically been immaterial to the Company.
Warranty Expense
We warrant our products and maintain a provision for warranty repair or replacement of shipped products. The accrual represents management’s estimate of probable returns. Our estimate is based on an analysis of our overall sales volume and historical claims experience. The estimate is re-evaluated periodically for accuracy.
Shipping Costs
Our shipping and handling costs are included in cost of sales for all periods presented in the Consolidated Statements of Comprehensive Income.
Advertising Costs
Advertising costs are expensed as incurred. Advertising costs were $1.4 million, $1.5 million, and $1.8 million, in fiscal years 2014, 2013, and 2012, respectively.
Stock-Based Compensation
Stock-based compensation is measured at the grant date based on the grant-date fair value of the awards and is recognized as an expense, on a ratable basis, over the vesting period, which is generally between zero and four years. Determining the amount of stock-based compensation to be recorded requires the Company to develop estimates used in calculating the grant-date fair value of stock options. The Company calculates the grant-date fair value for stock options using the Black-Scholes valuation model. The use of valuation models requires the Company to make estimates of assumptions such as expected volatility, expected term, risk-free interest rate, expected dividend yield, and forfeiture rates. The grant-date fair value of restricted stock units is the market value at grant date multiplied by the number of units.
Income Taxes
We provide for the recognition of deferred tax assets if realization of such assets is more likely than not. The Company evaluates the ability to realize its deferred tax assets based on all the facts and circumstances, including projections of future taxable income and expiration dates of carryover attributes on a quarterly basis. We have provided a valuation allowance against a portion of our net U.S. deferred tax assets due to uncertainties regarding its realization. The calculation of our tax liabilities involves assessing uncertainties with respect to the application of complex tax rules and the potential for future adjustment of our uncertain tax positions by the Internal Revenue Service or other taxing jurisdiction. We recognize liabilities for uncertain tax positions based on the two-step process. The first step requires us to determine if the weight of available evidence indicates that the tax position has met the threshold for recognition; therefore, we must evaluate whether it is more likely than not that the position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step requires us to measure the tax benefit of the tax position taken, or expected to be taken, in an income tax return as the largest amount that is more than 50 percent likely of being realized upon ultimate settlement. We reevaluate the uncertain tax positions each quarter based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, expirations of statutes of limitation, effectively settled issues under audit, and new audit activity. If our estimates of these taxes are greater or less than actual results, an additional tax benefit or charge will result.
Although we believe the measurement of our liabilities for uncertain tax positions is reasonable, we cannot assure that the final outcome of these matters will not be different than what is reflected in the historical income tax provisions and accruals. If additional taxes are assessed as a result of an audit or litigation, it could have a material effect on our income tax provision and net income in the period or periods for which that determination
 
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is made. We operate within multiple taxing jurisdictions and are subject to audit in these jurisdictions. These audits can involve complex issues which may require an extended period of time to resolve and could result in additional assessments of income tax. We believe adequate provisions for income taxes have been made for all periods.
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 fiscal years 2014, 2013, and 2012 (in thousands, except per share amounts):

 	  	2014	 	  	2013	 	  	2012	 	
Numerator:	  				  				  				
Net income	  	$	108,111	  	  	$	136,598	  	  	$	87,983	  	
Denominator:	  				  				  				
Weighted average shares outstanding	  	 	62,926	  	  	 	64,580	  	  	 	64,934	  	
Effect of dilutive securities	  	 	2,609	  	  	 	3,874	  	  	 	3,129	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Weighted average diluted shares	  	 	65,535	  	  	 	68,454	  	  	 	68,063	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Basic earnings per share	  	$	1.72	  	  	$	2.12	  	  	$	1.35	  	
Diluted earnings per share	  	$	1.65	  	  	$	2.00	  	  	$	1.29	  	
The weighted outstanding options excluded from our diluted calculation for the years ended March 29, 2014, March 30, 2013, and March 31, 2012, were 833 thousand, 453 thousand, and 1,052 thousand, respectively, as the exercise price exceeded the average market price during the period.
Accumulated Other Comprehensive Loss
Our accumulated other comprehensive loss is comprised of foreign currency translation adjustments from prior years when we had subsidiaries whose functional currency was not the U.S. Dollar, as well as unrealized gains and losses on investments classified as available-for-sale. See Note 16 – Accumulated Other Comprehensive loss for additional discussion.
 
3.	Marketable Securities	
The Company’s investments that have original maturities greater than 90 days have been classified as available-for-sale securities in accordance with U.S. GAAP. Marketable securities are categorized on the Consolidated Balance Sheet as marketable securities, as appropriate.
The following table is a summary of available-for-sale securities (in thousands):

As of March 29, 2014	  	Amortized
Cost	 	  	Gross Unrealized
Gains	 	  	Gross Unrealized
Losses	 	 	Estimated Fair Value
(Net Carrying Amount)	 	
Corporate debt securities	  	$	246,878	  	  	$	52	  	  	$	(245	) 	 	$	246,685	  	
U.S. Treasury securities	  	 	56,986	  	  	 	10	  	  	 	(2	) 	 	 	56,994	  	
Agency discount notes	  	 	2,008	  	  	 	1	  	  	 	—	  	 	 	2,009	  	
Commercial paper	  	 	41,962	  	  	 	10	  	  	 	(2	) 	 	 	41,970	  	
Certificates of deposit	  	 	5,006	  	  	 	—	  	  	 	(4	) 	 	 	5,002	  	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Total securities	  	$	352,840	  	  	$	73	  	  	$	(253	) 	 	$	352,660	  	

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The Company’s specifically identified gross unrealized losses of $253 thousand relates to 74 different securities with a total amortized cost of approximately $207.8 million at March 29, 2014. Because the Company does not intend to sell the investments at a loss and the Company will not be required to sell the investments before recovery of its amortized cost basis, it did not consider the investment in these securities to be other-than-temporarily impaired at March 29, 2014. Further, the securities with gross unrealized losses had been in a continuous unrealized loss position for less than 12 months as of March 29, 2014.

As of March 30, 2013	  	Amortized
Cost	 	  	Gross  Unrealized
Gains	 	  	Gross  Unrealized
Losses	 	 	Estimated Fair Value
(Net Carrying Amount)	 	
Corporate debt securities	  	$	94,798	  	  	$	2	  	  	$	(133	) 	 	$	94,667	  	
U.S. Treasury securities	  	 	34,380	  	  	 	4	  	  	 	(3	) 	 	 	34,381	  	
Agency discount notes	  	 	1,027	  	  	 	—	  	  	 	—	  	 	 	1,027	  	
Commercial paper	  	 	40,089	  	  	 	9	  	  	 	(28	) 	 	 	40,070	  	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Total securities	  	$	170,294	  	  	$	15	  	  	$	(164	) 	 	$	170,145	  	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
The Company’s specifically identified gross unrealized losses of $164 thousand relates to 43 different securities with a total amortized cost of approximately $124.1 million at March 30, 2013. Because the Company does not intend to sell the investments at a loss and the Company will not be required to sell the investments before recovery of its amortized cost basis, it did not consider the investment in these securities to be other-than-temporarily impaired at March 30, 2013. Further, the securities with gross unrealized losses had been in a continuous unrealized loss position for less than 12 months as of March 30, 2013.
The cost and estimated fair value of available-for-sale investments by contractual maturity were as follows:

 	  	March 29, 2014	 	  	March 30, 2013	 	
 	  	Amortized
Cost	 	  	Estimated
Fair  Value	 	  	Amortized
Cost	 	  	Estimated
Fair  Value	 	
Within 1 year	  	$	263,418	  	  	$	263,417	  	  	$	105,290	  	  	$	105,235	  	
After 1 year	  	 	89,422	  	  	 	89,243	  	  	 	65,004	  	  	 	64,910	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total	  	$	352,840	  	  	$	352,660	  	  	$	170,294	  	  	$	170,145	  	

4.	Fair Value of Financial Instruments	
The Company has determined that the only 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 investment portfolio assets. 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 or liabilities (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 investment portfolio assets consist of corporate debt securities, money market funds, U.S. Treasury securities, obligations of U.S. government-sponsored enterprises, commercial paper, and certificates of
 
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deposit and are reflected on our Consolidated Balance Sheet under the headings cash and cash equivalents, marketable securities, and long-term marketable securities. The Company determines the fair value of its investment portfolio assets by obtaining non-binding market prices from its third-party portfolio managers 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.
As of March 29, 2014 and March 30, 2013, the Company classified all investment portfolio assets as Level 1 or Level 2 assets. The Company has no Level 3 assets. There were no transfers between Level 1, Level 2, or Level 3 measurements for the years ending March 29, 2014 and March 30, 2013.
The fair value of our financial assets at March 29, 2014, was determined using the following inputs (in thousands):

 	  	Quoted Prices
in  Active
Markets  for
Identical
Assets
Level 1	 	  	Significant
Other
Observable
Inputs
Level 2	 	  	Significant
Unobservable
Inputs
Level 3	 	  	Total	 	
Cash equivalents	  				  				  				  				
Money market funds	  	$	20,456	  	  	$	—	  	  	$	—	  	  	$	20,456	  	
Commercial paper	  	 	—	  	  	 	1,878	  	  	 	—	  	  	 	1,878	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
	  	$	20,456	  	  	$	1,878	  	  	$	—	  	  	$	22,334	  	
Available-for-sale securities	  				  				  				  				
Corporate debt securities	  	$	—	  	  	$	246,685	  	  	$	—	  	  	$	246,685	  	
U.S. Treasury securities	  	 	56,994	  	  	 	—	  	  	 	—	  	  	 	56,994	  	
Agency discount notes	  	 	—	  	  	 	2,009	  	  	 	—	  	  	 	2,009	  	
Commercial paper	  	 	—	  	  	 	41,970	  	  	 	—	  	  	 	41,970	  	
Certificates of deposit	  	 	—	  	  	 	5,002	  	  	 	—	  	  	 	5,002	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
	  	$	56,994	  	  	$	295,666	  	  	$	—	  	  	$	352,660	  	
The fair value of our financial assets at March 30, 2013, was determined using the following inputs (in thousands):

 	  	Quoted Prices
in Active
Markets for
Identical
Assets
Level 1	 	  	Significant
Other
Observable
Inputs
Level 2	 	  	Significant
Unobservable
Inputs
Level 3	 	  	Total	 	
Cash equivalents	  				  				  				  				
Money market funds	  	$	54,762	  	  	$	—	  	  	$	—	  	  	$	54,762	  	
Commercial paper	  	 	—	  	  	 	1,500	  	  	 	—	  	  	 	1,500	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
	  	$	54,762	  	  	$	1,500	  	  	$	—	  	  	$	56,262	  	
Available-for-sale securities	  				  				  				  				
Corporate debt securities	  	$	—	  	  	$	94,667	  	  	$	—	  	  	$	94,667	  	
U.S. Treasury securities	  	 	34,381	  	  	 	—	  	  	 	—	  	  	 	34,381	  	
Agency discount notes	  	 	—	  	  	 	1,027	  	  	 	—	  	  	 	1,027	  	
Commercial paper	  	 	—	  	  	 	40,070	  	  	 	—	  	  	 	40,070	  	
	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
	  	$	34,381	  	  	$	135,764	  	  	$	—	  	  	$	170,145	  	
 
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5.	Accounts Receivable, net	
The following are the components of accounts receivable, net (in thousands):

 	  	March 29,
2014	 	 	March 30,
2013	 	
Gross accounts receivable	  	$	63,449	  	 	$	69,590	  	
Allowance for doubtful accounts	  	 	(229	) 	 	 	(301	) 	
	  	 	 	 	 	 	 	 	
Accounts receivable, net	  	$	63,220	  	 	$	69,289	  	
	  	 	 	 	 	 	 	 	
The following table summarizes the changes in the allowance for doubtful accounts (in thousands):

Balance, March 26, 2011	  	$	(421	) 	
Bad debt expense, net of recoveries	  	 	50	  	
	  	 	 	 	
Balance, March 31, 2012	  	 	(371	) 	
Bad debt expense, net of recoveries	  	 	70	  	
	  	 	 	 	
Balance, March 30, 2013	  	 	(301	) 	
Bad debt expense, net of recoveries	  	 	72	  	
	  	 	 	 	
Balance, March 29, 2014	  	$	(229	) 	

6.	Goodwill and Intangibles, net	
The goodwill balance included on the Consolidated Balance Sheets under the caption “Goodwill and intangibles, net” is $16.4 million and $6.0 million at March 29, 2014 and March 30, 2013, respectively. The increase in the goodwill and intangibles balances resulted from the acquisition discussed below in Note 7 — Acquisition.
The following information details the gross carrying amount and accumulated amortization of our intangible assets (in thousands):

 	 	March 29, 2014	 	 	March 30, 2013	 	
Intangible Category (Weighted-Average
Amortization period (years))	 	Gross
Amount	 	 	Accumulated
Amortization	 	 	Gross
Amount	 	 	Accumulated
Amortization	 	
Core technology (a)	 	$	1,390	  	 	$	(1,390	) 	 	$	1,390	  	 	$	(1,390	) 	
License agreement (a)	 	 	440	  	 	 	(440	) 	 	 	440	  	 	 	(440	) 	
Existing technology (10.1)	 	 	9,826	  	 	 	(4,206	) 	 	 	5,566	  	 	 	(3,802	) 	
Trademarks and tradename (b)	 	 	1,600	  	 	 	(384	) 	 	 	320	  	 	 	(320	) 	
Customer relationships (10.0)	 	 	2,400	  	 	 	(120	) 	 	 	—	  	 	 	—	  	
Technology licenses (3.2)	 	 	18,000	  	 	 	(15,117	) 	 	 	16,303	  	 	 	(13,417	) 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	$	33,656	  	 	$	(21,657	) 	 	$	24,019	  	 	$	(19,369	) 	

 	(a)	Intangible assets are fully amortized.	
 	(b)	Trademark assets are fully amortized. The tradename is being amortized over a period of ten years.	
 
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Amortization expense for intangibles in fiscal years 2014, 2013, and 2012 was $2.8 million, $3.4 million, and $3.7 million, respectively. The following table details the estimated aggregate amortization expense for all intangibles owned as of March 29, 2014, for each of the five succeeding fiscal years (in thousands):

For the year ended March 28, 2015	  	$	3,443	  	
For the year ended March 26, 2016	  	$	2,295	  	
For the year ended March 25, 2017	  	$	1,101	  	
For the year ended March 31, 2018	  	$	794	  	
For the year ended March 30, 2019	  	$	794	  	
 
7.	Acquisition	
On October 1, 2013, the Company acquired 100 percent of the outstanding equity of Acoustic Technologies, Inc. (“Acoustic”), a privately held company. The Mesa, Ariz.,-based firm is a leader in embedded firmware voice processing technology, including noise reduction, echo cancelation and voice enhancement. This strategic acquisition enhances the Company’s technology and software expertise in our portable audio applications.
The Company acquired Acoustic for approximately $20.4 million, net of cash obtained, and recorded the purchase using the acquisition method of accounting. This method allows for the recognition of the assets acquired and liabilities assumed at their fair values as of the acquisition date. The Consolidated Statements of Comprehensive Income presented include Acoustic’s results of operations beginning on the date of the acquisition. Pro forma information related to this acquisition has not been presented because it would not be materially different from amounts reported.
Goodwill was recorded in relation to the acquisition, as the purchase price was in excess of the fair value of the net assets acquired. None of the goodwill is tax-deductible. The final purchase price was allocated as follows (in thousands):

Goodwill and Net Assets Acquired	  	Amount	 	
Cash and cash equivalents	  	$	120	  	
Accounts receivable	  	 	775	  	
Other current assets	  	 	2	  	
Property and equipment	  	 	175	  	
Intangible assets	  	 	7,940	  	
Goodwill	  	 	10,340	  	
Deferred tax asset — long-term	  	 	1,440	  	
Other non-current assets	  	 	36	  	
Current liabilities	  	 	(276	) 	
	  	 	 	 	
Total purchase price	  	$	20,552	  	
	  	 	 	 	
The acquired intangible assets and related weighted average amortization periods are detailed below (in thousands):

Intangible assets	  	Amount	 	  	Weighted-average
Amortization
Period (years)	 	
Technology	  	$	4,260	  	  	 	10	  	
Tradename	  	 	1,280	  	  	 	10	  	
Customer relationships	  	 	2,400	  	  	 	10	  	
	  	 	 	 	  				
Total	  	$	7,940	  	  				
 
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8.	Asset Sale	
The Company entered into an agreement to sell certain assets associated with Apex Precision Power (“Apex”) products in Tucson, Arizona for $26.1 million. On August 17, 2012, the Company closed the transaction under this agreement. After closing the transaction, the Company maintained a high voltage / high power IC design team in Tucson. See Note 10 — Restructuring Costs for information regarding the subsequent closure and relocation of the Tucson design center. The Company received $22.2 million in cash and has recorded a long-term note receivable for $3.9 million to be paid in its entirety by August 17, 2014. The gain recorded on the sale was $0.2 million and is included on the Consolidated Statement of Comprehensive Income under the caption, “Restructuring and other, net.”
 
9.	Revolving Line of Credit	
The Company maintained a revolving credit agreement (the “Expired Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent and issuing lender, Barclays Bank, as syndication agent, Wells Fargo Securities, LLC and Barclays Capital, as joint lead arrangers and co-book managers until early fiscal year 2014. The aggregate borrowing limit under the unsecured revolving credit facility was $100 million with a $15 million letter of credit sublimit and was intended to provide the Company with short-term borrowings for working capital and other general corporate purposes. The interest rate payable was, at the Company’s election, (i) a base rate plus the applicable margin, where the base rate is determined by reference to the highest of 1) the prime rate publicly announced by the administrative agent, 2) the federal funds rate plus 0.50%, and 3) LIBOR for a one month period plus the difference between the applicable margin for LIBOR rate loans and the applicable margin for base rate loans, or (ii) the LIBOR rate plus the applicable margin that varies according to the leverage ratio of the Company. Certain representations and warranties were required under the Expired Credit Agreement, and the Company must have been in compliance with specified financial covenants, including (i) the requirement that the Company maintain a ratio of consolidated funded indebtedness to consolidated EBITDA of not greater than 1.75 to 1.0, computed in accordance with the terms of the Expired Credit Agreement, and (ii) a minimum ratio of consolidated EBITDA to consolidated interest expense of not less than 3.50 to 1.0. The Company was in compliance with these covenants during the period. The Company had no outstanding amounts under the facility as of March 29, 2014 and March 30, 2013, and there were no borrowings under the facility prior to its expiration on April 19, 2013. See Note 20 – Subsequent Event for details on new revolving line of credit.
 
10.	Restructuring Costs	
In the third quarter of fiscal year 2013, the Company committed to a plan to close its Tucson, Arizona design center and move those operations to the Company’s headquarters in Austin, Texas. As a result, the Company incurred a one-time charge for relocation, severance-related items and facility-related costs to operating expenses totaling $3.5 million in the third quarter of fiscal year 2013. The charge included $1.5 million in severance and relocation-related costs and $2.0 million in facility and other related charges. In fiscal year 2014, the Company recorded a credit of approximately $0.6 million related to changes in estimates for the facility, due to new subleases on the vacated property. This information is presented in a separate line item on the Consolidated Statements of Comprehensive Income in operating expenses under the caption “ Restructuring and other, net. ”
Of the net $2.9 million expense incurred, approximately $2.5 million has been completed, and consisted of severance and relocation-related costs of approximately $1.1 million, an asset impairment charge of approximately $1.0 million, and facility-related costs of approximately $0.4 million. As of March 29, 2014, we have a remaining restructuring accrual of $0.4 million, included in “ Other accrued liabilities” on the Consolidated Balance Sheet.
 
11.	Employee Benefit Plans	
We have a 401(k) Profit Sharing Plan (the “401(k) Plan”) covering all of our qualifying domestic employees. Under the 401(k) Plan, employees may elect to contribute any percentage of their annual compensation up to the annual IRS limitations. Beginning in the fourth quarter of fiscal year 2014, the Company matches 50 percent of the first 8 percent of the employees’ annual contribution; prior to the fourth quarter of the
 
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current fiscal year, the Company matched 50 percent of the first 6 percent of the employee’s annual contribution. We made matching employee contributions of $1.8 million, $1.5 million, and $1.3 million during fiscal years 2014, 2013, and 2012, respectively.
 
12.	Equity Compensation	
The Company is currently granting equity awards from the 2006 Stock Incentive Plan (the “Plan”), which was approved by stockholders in July 2006. The Plan provides for granting of stock options, restricted stock awards, performance awards, phantom stock awards, and bonus stock awards, or any combination of the foregoing. To date, the Company has granted stock options, restricted stock awards, and phantom stock awards (also called restricted stock units) under the Plan. Stock options generally vest between zero and four years, and are exercisable for a period of ten years from the date of grant. Generally, restricted stock awards are subject to vesting schedules up to four years. Restricted stock units are generally subject to vesting from one to three years, depending upon the terms of the grant.
The following table summarizes the activity in total shares available for grant (in thousands):

 	  	Shares
Available  for
Grant	 	
Balance, March 26, 2011	  	 	8,175	  	
Plans terminated	  	 	(34	) 	
Granted	  	 	(2,049	) 	
Forfeited	  	 	165	  	
	  	 	 	 	
Balance, March 31, 2012	  	 	6,257	  	
Plans terminated	  	 	—	  	
Granted	  	 	(1,600	) 	
Forfeited	  	 	468	  	
	  	 	 	 	
Balance, March 30, 2013	  	 	5,125	  	
Plans terminated	  	 	—	  	
Granted	  	 	(1,785	) 	
Forfeited	  	 	207	  	
	  	 	 	 	
Balance, March 29, 2014	  	 	3,547	  	
Stock Compensation Expense
The following table summarizes the effects of stock-based compensation on cost of goods sold, research and development, sales, general and administrative, pre-tax income, and net income after taxes for options granted under the Company’s equity incentive plans (in thousands, except per share amounts):

 	  	Fiscal Years Ended	 	
 	  	March 29,
2014	 	 	March 30,
2013	 	 	March 31,
2012	 	
Cost of sales	  	$	864	  	 	$	751	  	 	$	398	  	
Research and development	  	 	10,392	  	 	 	10,549	  	 	 	5,590	  	
Sales, general and administrative	  	 	11,818	  	 	 	10,195	  	 	 	6,190	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Effect on pre-tax income	  	 	23,074	  	 	 	21,495	  	 	 	12,178	  	
Income Tax Benefit	  	 	(8,445	) 	 	 	(106	) 	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total share-based compensation expense (net of taxes)	  	 	14,629	  	 	 	21,389	  	 	 	12,178	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Share-based compensation effects on basic earnings per share	  	$	0.50	  	 	$	0.33	  	 	$	0.19	  	
Share-based compensation effects on diluted earnings per share	  	 	0.48	  	 	 	0.32	  	 	 	0.18	  	
Share-based compensation effects on operating activities cash flow	  	 	14,629	  	 	 	21,389	  	 	 	12,178	  	
Share-based compensation effects on financing activities cash flow	  	 	8,445	  	 	 	106	  	 	 	—	  	
 
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The total share based compensation expense included in the table above and which is attributable to restricted stock awards and restricted stock units was $18.6 million, $16.3 million, and $6.3 million, for fiscal years 2014, 2013, and 2012, respectively.
As of March 29, 2014, there was $37.5 million of compensation costs related to non-vested stock options, restricted stock awards, and restricted stock units granted under the Company’s equity incentive plans not yet recognized in the Company’s financial statements. The unrecognized compensation cost is expected to be recognized over a weighted average period of 1.21 years for stock options, 0.27 years for restricted stock awards, and 1.49 years for restricted stock units.
Stock Option Awards
We estimated the fair value of each stock option grant on the date of grant using the Black-Scholes option-pricing model using a dividend yield of zero and the following additional assumptions:

 	  	Year Ended	
 	  	March 29, 2014	  	March 30, 2013	  	March 31, 2012	
Expected stock price volatility	  	51.93 - 54.34%	  	63.42%	  	59.25 - 66.11%	
Risk-free interest rate	  	  0.47 -   0.52%	  	  0.31%	  	  0.27 -   1.43%	
Expected term (in years)	  	  2.46 -   2.61   	  	  2.46   	  	  2.32 -   3.82   	
The Black-Scholes valuation calculation requires us to estimate key assumptions such as stock price volatility, expected term, risk-free interest rate and dividend yield. The expected stock price volatility is based upon implied volatility from traded options on our stock in the marketplace. The expected term of options granted is derived from an analysis of historical exercises and remaining contractual life of stock options, and represents the period of time that options granted are expected to be outstanding after becoming vested. The risk-free interest rate reflects the yield on zero-coupon U.S. Treasury securities for a period that is commensurate with the expected term assumption. Finally, we have never paid cash dividends, do not currently intend to pay cash dividends, and thus have assumed a zero percent dividend yield.
Using the Black-Scholes option valuation model, the weighted average estimated fair values of employee stock options granted in fiscal years 2014, 2013, and 2012, were $10.45, $20.43, $7.58, respectively.
During fiscal year 2014, 2013, and 2012, we received a net $5.1 million, $12.0 million, and $4.1 million, respectively, from the exercise of 0.8 million, 1.7 million, and 0.6 million, respectively, stock options granted under the Company’s Stock Plan.
The total intrinsic value of stock options exercised during fiscal year 2014, 2013, and 2012, was $12.4 million, $48.6 million, and $7.6 million, respectively. Intrinsic value represents the difference between the market value of the Company’s common stock at the time of exercise and the strike price of the stock option.
As of March 29, 2014, approximately 7.3 million shares of common stock were reserved for issuance under the Company’s Stock Plan.
 
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Additional information with respect to stock option activity is as follows (in thousands, except per share amounts):

 	  	Outstanding Options	 	
 	  	Number	 	  	Weighted
Average
Exercise Price	 	
Balance, March 26, 2011	  	 	6,181	  	  	$	7.63	  	
Options granted	  	 	450	  	  	 	15.63	  	
Options exercised	  	 	(593	) 	  	 	6.88	  	
Options forfeited	  	 	(67	) 	  	 	7.70	  	
Options expired	  	 	(67	) 	  	 	15.68	  	
	  	 	 	 	  				
Balance, March 31, 2012	  	 	5,904	  	  	$	8.23	  	
Options granted	  	 	264	  	  	 	37.22	  	
Options exercised	  	 	(1,746	) 	  	 	6.88	  	
Options forfeited	  	 	(144	) 	  	 	12.52	  	
Options expired	  	 	—	  	  	 	20.25	  	
	  	 	 	 	  				
Balance, March 30, 2013	  	 	4,278	  	  	$	10.42	  	
Options granted	  	 	318	  	  	 	23.45	  	
Options exercised	  	 	(834	) 	  	 	6.12	  	
Options forfeited	  	 	(10	) 	  	 	15.33	  	
Options expired	  	 	(27	) 	  	 	19.52	  	
	  	 	 	 	  				
Balance, March 29, 2014	  	 	3,725	  	  	$	12.42	  	
Additional information with regards to outstanding options that are vesting, expected to vest, or exercisable as of March 29, 2014 is as follows (in thousands, except years and per share amounts):

 	  	Number of
Options	 	  	Weighted
Average
Exercise price	 	  	Weighted Average
Remaining Contractual
Term (years)	 	  	Aggregate
Intrinsic Value	 	
Vested and expected to vest	  	 	3,676	  	  	$	12.24	  	  	 	5.68	  	  	$	32,674	  	
Exercisable	  	 	3,004	  	  	$	9.54	  	  	 	5.07	  	  	$	31,823	  	
In accordance with U.S. GAAP, stock options outstanding that are expected to vest are presented net of estimated future option forfeitures, which are estimated as compensation costs are recognized. Options with a fair value of $4.8 million, $4.8 million, and $6.3 million, became vested during fiscal years 2014, 2013, and 2012, respectively.
The following table summarizes information regarding outstanding and exercisable options as of March 29, 2014 (in thousands, except per share amounts):

 	  	Options Outstanding	 	  	Options Exercisable	 	
Range of Exercise Prices	  	Number	 	  	Weighted
Average
Remaining
Contractual Life
(years)	 	  	Weighted
Average Exercise
Price	 	  	Number
Exercisable	 	  	Weighted
Average
Exercise Price	 	
$2.82 - $5.53	  	 	502	  	  	 	4.03	  	  	$	5.16	  	  	 	502	  	  	$	5.16	  	
$5.55 - $5.55	  	 	943	  	  	 	5.50	  	  	 	5.55	  	  	 	943	  	  	 	5.55	  	
$5.66 - $7.87	  	 	701	  	  	 	3.21	  	  	 	7.27	  	  	 	701	  	  	 	7.27	  	
$8.06 - $16.25	  	 	831	  	  	 	6.74	  	  	 	15.21	  	  	 	616	  	  	 	15.10	  	
$16.28 - $24.14	  	 	499	  	  	 	8.30	  	  	 	22.03	  	  	 	154	  	  	 	19.46	  	
$38.99 - $38.99	  	 	249	  	  	 	8.52	  	  	 	38.99	  	  	 	88	  	  	 	38.99	  	
	  	 	 	 	  				  				  	 	 	 	  				
	  	 	3,725	  	  	 	5.72	  	  	$	12.42	  	  	 	3,004	  	  	$	9.54	  	

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As of March 29, 2014 and March 30, 2013, the number of options exercisable was 3.0 million and 3.2 million, respectively.
Restricted Stock Awards
The Company periodically grants restricted stock awards (“RSA’s”) to select employees. The grant date for these awards is equal to the measurement date and the awards are valued as of the measurement date and amortized over the requisite vesting period, which is no more than four years. Each full value award, including RSA’s, reduces the total shares available for grant under the Plan at a rate of 1.5 shares per RSA granted. As of March 29, 2014, approximately 0.1 million shares attributable to RSA awards were reserved for issuance under the Plan, which includes the additional shares associated with this full value multiplier. A summary of the activity for RSA’s in fiscal year 2014, 2013, and 2012, is presented below (in thousands, except per share amounts):

 	  	Number of
Shares	 	 	Weighted
Average
Grant Date
Fair Value
(per share)	 	
March 26, 2011	  	 	45	  	 	$	7.21	  	
Granted	  	 	49	  	 	 	15.31	  	
Vested	  	 	(54	) 	 	 	14.57	  	
Forfeited	  	 	—	  	 	 	—	  	
	  	 	 	 	 	 	 	 	
March 31, 2012	  	 	40	  	 	 	7.19	  	
Granted	  	 	27	  	 	 	28.24	  	
Vested	  	 	(62	) 	 	 	15.45	  	
Forfeited	  	 	—	  	 	 	—	  	
	  	 	 	 	 	 	 	 	
March 30, 2013	  	 	5	  	 	 	17.28	  	
Granted	  	 	—	  	 	 	—	  	
Vested	  	 	—	  	 	 	—	  	
Forfeited	  	 	—	  	 	 	—	  	
	  	 	 	 	 	 	 	 	
March 29, 2014	  	 	5	  	 	$	17.28	  	
	  	 	 	 	 	 	 	 	
The aggregate intrinsic value of RSA’s outstanding as of March 29, 2014 was $98 thousand. RSA’s with a fair value of $951 thousand and $637 thousand became vested during fiscal years 2013 and 2012, respectively. No RSA’s became vested during fiscal year 2014.
Restricted Stock Units
Commencing in fiscal year 2011, the Company began granting restricted stock units (“RSU’s”) to select employees. These awards are valued as of the grant date and amortized over the requisite vesting period. Generally, RSU’s vest 100 percent on the first to third anniversary of the grant date depending on the vesting specifications. Each full value award, including RSU’s, reduces the total shares available for grant under the 2006 option plan at a rate of 1.5 shares per RSU granted. As of March 29, 2014, approximately 3.9 million shares attributable to RSU awards were reserved for issuance under the Plan, which includes the additional shares
 
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associated with this full value award multiplier. A summary of the activity for RSU’s in fiscal year 2014, 2013, and 2012 is presented below (in thousands, except year and per share amounts):

 	  	Shares	 	 	Weighted
Average
Fair Value	 	
March 26, 2011	  	 	620	  	 	$	16.41	  	
Granted	  	 	1,017	  	 	 	16.59	  	
Vested	  	 	—	  	 	 	—	  	
Forfeited	  	 	(21	) 	 	 	16.04	  	
	  	 	 	 	 	 	 	 	
March 31, 2012	  	 	1,616	  	 	 	16.52	  	
Granted	  	 	864	  	 	 	37.26	  	
Vested	  	 	(193	) 	 	 	20.56	  	
Forfeited	  	 	(216	) 	 	 	21.46	  	
	  	 	 	 	 	 	 	 	
March 30, 2013	  	 	2,071	  	 	 	23.66	  	
Granted	  	 	977	  	 	 	22.55	  	
Vested	  	 	(626	) 	 	 	17.71	  	
Forfeited	  	 	(113	) 	 	 	25.81	  	
	  	 	 	 	 	 	 	 	
March 29, 2014	  	 	2,309	  	 	$	25.26	  	
	  	 	 	 	 	 	 	 	
The aggregate intrinsic value of RSU’s outstanding as of March 29, 2014 was $45.1 million. Additional information with regards to outstanding restricted stock units that are vesting or expected to vest as of March 29, 2014, is as follows (in thousands, except year and per share amounts):

 	  	Shares	 	  	Weighted
Average
Fair Value	 	  	Weighted Average
Remaining Contractual
Term (years)	 	
Vested and expected to vest	  	 	2,174	  	  	$	25.26	  	  	 	1.46	  	
RSU’s outstanding that are expected to vest are presented net of estimated future forfeitures, which are estimated as compensation costs are recognized. RSU’s with a fair value of $11.1 million and $3.8 million became vested during fiscal years 2014 and 2013, respectively. No RSU’s became vested during fiscal year 2012. The majority of RSUs that vested in 2014 and 2013 were net settled such that the Company withheld a portion of the shares at fair value to satisfy tax withholding requirements. In fiscal years 2014 and 2013, the vesting of RSU’s reduced the authorized and unissued share balance by approximately 0.6 million and 0.2 million, respectively. Total shares withheld and subsequently retired out of the Plan were approximately 0.2 million and 0.1 million, and total payments for the employees’ tax obligations to taxing authorities were $3.9 million and $1.7 million for fiscal years 2014 and 2013, respectively. A portion of RSUs that vested in fiscal year 2014 were cash settled such that the Company received cash from employees in lieu of withholding shares to satisfy tax withholding requirements. The total amount received from cash settled shares during fiscal year 2014 was $0.2 million.
13.    Commitments and Contingencies
Facilities and Equipment Under Operating Lease Agreements
With the exception of our corporate headquarters and select surrounding properties, we lease our facilities and certain equipment under operating lease agreements, some of which have renewal options. Certain of these arrangements provide for lease payment increases based upon future fair market rates. As of May 1, 2014, our principal facilities are located in Austin, Texas.
The Company closed operations in Tucson, Arizona during fiscal year 2013, which included 28,000 square feet of leased office space which was primarily occupied by engineering personnel. The term of this lease extends through May 2015.
 
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The aggregate minimum future rental commitments under all operating leases, net of sublease income, for the following fiscal years are (in thousands):

 	 	Facilities	 	 	Subleases	 	 	Net Facilities
Commitments	 	 	Equipment
Commitments	 	 	Total
Commitments	 	
2015	 	$	3,292	  	 	$	238	  	 	$	3,054	  	 	$	11	  	 	$	3,065	  	
2016	 	 	2,623	  	 	 	27	  	 	 	2,596	  	 	 	8	  	 	 	2,604	  	
2017	 	 	2,519	  	 	 	—	  	 	 	2,519	  	 	 	5	  	 	 	2,524	  	
2018	 	 	823	  	 	 	—	  	 	 	823	  	 	 	5	  	 	 	828	  	
2019	 	 	373	  	 	 	—	  	 	 	373	  	 	 	4	  	 	 	377	  	
Thereafter	 	 	—	  	 	 	—	  	 	 	—	  	 	 	—	  	 	 	—	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total minimum lease payment	 	$	9,630	  	 	$	265	  	 	$	9,365	  	 	$	33	  	 	$	9,398	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total rent expense was approximately $2.8 million, $3.2 million, and $4.7 million, for fiscal years 2014, 2013, and 2012, respectively. Sublease rental income was $0.1 million, $0.1 million, $0.4 million, for fiscal years 2014, 2013, and 2012, respectively.
Wafer, Assembly and Test Purchase Commitments
We rely primarily on third-party foundries for our wafer manufacturing needs. As of March 29, 2014, we had agreements with multiple foundries for the manufacture of wafers. On December 22, 2011, the Company entered into a $10 million Capacity Investment and Loading Agreement with STATS ChipPAC Ltd (Supplier Agreement) in order to secure assembly and test capacity for certain products. As part of the agreement, we are eligible to receive rebates on our purchases up to the full amount of the specified $10 million in the Supplier Agreement upon our meeting certain purchase volume milestones. We have utilized $2.6 million and $4.3 million during fiscal years 2014 and 2013, respectively, related to the agreement and expect to receive the full amount of our $10 million payments back in rebates through fiscal year 2015, based on our current projections. Other than the previously mentioned agreement, our foundry agreements do not have volume purchase commitments or “take or pay” clauses and provide for purchase commitments based on purchase orders. Cancellation fees or other charges may apply and are generally dependent upon whether wafers have been started or the stage of the manufacturing process at which the notice of cancellation is given. As of March 29, 2014, we had foundry commitments of $36.7 million.
In addition to our wafer supply arrangements, we contract with third-party assembly vendors to package the wafer die into finished products. Assembly vendors provide fixed-cost-per-unit pricing, as is common in the semiconductor industry. We had non-cancelable assembly purchase orders with numerous vendors totaling $2.1 million at March 29, 2014.
Test vendors provide fixed-cost-per-unit pricing, as is common in the semiconductor industry. Our total non-cancelable commitment for outside test services as of March 29, 2014 was $5.3 million.
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 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.
On June 4, 2012, U.S. Ethernet Innovations, LLC (the “Plaintiff”) filed suit against Cirrus Logic and two other defendants in the U.S. District Court, Eastern District of Texas. The Plaintiff alleges that Cirrus Logic infringed four U.S. patents relating to Ethernet technology. In its complaint, the Plaintiff indicated that it is seeking unspecified monetary damages, including up to treble damages for willful infringement. We answered the complaint on June 29, 2012, denying the allegations of infringement and seeking a declaratory judgment that the patents in suit were invalid and not infringed. The parties entered into a settlement agreement on May 30,
 
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2013. In exchange for a full release of claims as it relates to the asserted patent, we paid the Plaintiff $0.7 million. This amount is recorded as a separate line item on the Consolidated Statements of Comprehensive Income under the caption “Patent infringement settlements, net.”
On February 4, 2013, a purported shareholder filed a class action complaint in the U.S. District Court, Southern District of New York against the Company and two of the Company’s executives (the “Securities Case”). Koplyay v. Cirrus Logic, Inc., et al. Civil Action No. 13-CV-0790. The complaint alleges that the defendants violated the federal securities laws by making materially false and misleading statements regarding our business results between July 31, 2012, and October 31, 2012, and seeks unspecified damages along with plaintiff’s costs and expenses, including attorneys’ fees. A second complaint was filed on April 13, 2013, by a different purported shareholder, in the same court, setting forth substantially the same allegations. On April 19, 2013, the court appointed the plaintiff and counsel in the first class action complaint as the lead plaintiff and lead counsel. The lead plaintiff filed an amended complaint on May 1, 2013, including substantially the same allegations as the original complaint. On May 24, 2013, the Company filed a motion to dismiss the amended complaint for failure to state a claim. On December 2, 2013, the court granted the Company’s motion and dismissed the case with prejudice. The plaintiff did not appeal the court’s order and the case has concluded.
On April 13, 2013, another purported shareholder filed a shareholder derivative complaint against several of our current officers and directors in the District Court of Travis County, Texas, 53 rd Judicial District (the “Derivative Case”). Graham, derivatively on behalf of Cirrus Logic, Inc. v. Rhode, et. al., Cause No. D-1-GN-13-001285. In this complaint, the plaintiff makes allegations similar to those presented in the Securities Case, but the plaintiff asserts various state law causes of action, including claims of breach of fiduciary duty and unjust enrichment. On January 27, 2014, the plaintiff filed a Notice of Non-Suit (the “Notice”) indicating that the plaintiff did not intend to pursue the claims further. Based on the plaintiff’s filing of the Notice, the Court dismissed the plaintiff’s claims without prejudice.
15.    Stockholders’ Equity
Share Repurchase Program
On November 20, 2012, we announced that our Board of Directors authorized a share repurchase program of up to $200 million of the Company’s common stock. As of March 29, 2014, the Company had repurchased 5.6 million shares at a cost of approximately $137.7 million, or an average cost of $24.46 per share. Of this total, 2.6 million shares were purchased in the current fiscal year at a cost of $52.1 million, or an average cost of $19.78 per share. As of March 29, 2014, approximately $62.3 million remains available for repurchase under this plan.
In fiscal year 2013, the Company repurchased 3.0 million shares at a cost of $86.1 million, or an average cost of $28.59 per share. This amount included $0.5 million of stock repurchased pursuant to the remaining portion of the $80 million share repurchase program authorized by the Board of Directors in November 2010.
All of 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 March 29, 2014.
Preferred Stock
We have 5.0 million shares of Preferred Stock authorized. As of March 29, 2014 we have not issued any of the authorized shares.
16.    Accumulated Other Comprehensive Loss
Our accumulated other comprehensive loss is comprised of foreign currency translation adjustments and unrealized gains and losses on investments classified as available-for-sale. The foreign currency translation adjustments are not currently adjusted for income taxes because they relate to indefinite investments in non-U.S. subsidiaries that have since changed from a foreign functional currency to a U.S dollar functional currency.
 
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The following table summarizes the changes in the components of accumulated other comprehensive loss, net of tax (in thousands):

 	  	Foreign
Currency	 	 	Unrealized Gains
(Losses) on Securities	 	 	Total	 	
Balance, March 31, 2012	  	$	(770	) 	 	$	8	  	 	$	(762	) 	
Current period activity	  	 	—	  	 	 	(157	) 	 	 	(157	) 	
Tax effect	  	 	—	  	 	 	—	  	 	 	—	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Balance, March 30, 2013	  	 	(770	) 	 	 	(149	) 	 	 	(919	) 	
Current period activity	  	 	—	  	 	 	(31	) 	 	 	(31	) 	
Tax effect	  	 	—	  	 	 	64	  	 	 	64	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Balance, March 29, 2014	  	$	(770	) 	 	$	(116	) 	 	$	(886	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
17.    Income Taxes
Income before income taxes consisted of (in thousands):

 	  	Year Ended	 	
 	  	March 29,
2014	 	  	March 30,
2013	 	  	March 31,
2012	 	
United States	  	$	155,431	  	  	$	200,124	  	  	$	79,425	  	
Non-U.S.	  	 	306	  	  	 	1,066	  	  	 	558	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
	  	$	155,737	  	  	$	201,190	  	  	$	79,983	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
The provision (benefit) for income taxes consists of (in thousands):

 	  	Year Ended	 	
 	  	March 29,
2014	 	 	March 30,
2013	 	 	March 31,
2012	 	
Current:	  				 				 				
Federal	  	$	10,550	  	 	$	3,537	  	 	$	1,322	  	
State	  	 	258	  	 	 	323	  	 	 	518	  	
Non-U.S.	  	 	335	  	 	 	243	  	 	 	261	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total current tax provision	  	$	11,143	  	 	$	4,103	  	 	$	2,101	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Deferred:	  				 				 				
U.S.	  	 	36,543	  	 	 	60,506	  	 	 	(10,102	) 	
Non-U.S.	  	 	(60	) 	 	 	(17	) 	 	 	1	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total deferred tax provision (benefit)	  	 	36,483	  	 	 	60,489	  	 	 	(10,101	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Total tax provision (benefit)	  	$	47,626	  	 	$	64,592	  	 	$	(8,000	) 	

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The effective income tax rates differ from the rates computed by applying the statutory federal rate to pretax income as follows (in percentages):

 	  	Year Ended	 	
 	  	March 29,
2014	 	 	March 30,
2013	 	 	March 31,
2012	 	
Expected income tax provision at the U.S. federal statutory rate	  	 	35.0	  	 	 	35.0	  	 	 	35.0	  	
Valuation allowance changes affecting the provision of income taxes	  	 	(0.1	) 	 	 	(1.3	) 	 	 	(46.7	) 	
Foreign taxes at different rates	  	 	0.1	  	 	 	(0.1	) 	 	 	—	  	
R&D credit	  	 	(0.9	) 	 	 	(2.1	) 	 	 	—	  	
Stock compensation	  	 	(0.1	) 	 	 	0.1	  	 	 	1.0	  	
Recognition of prior year benefit	  	 	(4.1	) 	 	 	—	  	 	 	—	  	
Nondeductible expenses	  	 	0.5	  	 	 	0.3	  	 	 	0.1	  	
Other	  	 	0.2	  	 	 	0.2	  	 	 	0.6	  	
	  	 	 	 	 	 	 	 	 	 	 	 	
Provision (benefit) for income taxes	  	 	30.6	  	 	 	32.1	  	 	 	(10.0	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	
Significant components of our deferred tax assets and liabilities as of March 29, 2014 and March 30, 2013 are (in thousands):

 	  	March 29,
2014	 	 	March 30,
2013	 	
Deferred tax assets:	  				 				
Inventory valuation	  	$	7,692	  	 	$	12,065	  	
Accrued expenses and allowances	  	 	3,905	  	 	 	5,077	  	
Net operating loss carryforwards	  	 	29,062	  	 	 	28,162	  	
Research and development tax credit carryforwards	  	 	15,164	  	 	 	37,054	  	
State tax credit carryforwards	  	 	231	  	 	 	237	  	
Capitalized research and development	  	 	3,485	  	 	 	6,601	  	
Other	  	 	28,627	  	 	 	21,505	  	
	  	 	 	 	 	 	 	 	
Total deferred tax assets	  	$	88,166	  	 	$	110,701	  	
Valuation allowance for deferred tax assets	  	 	(32,159	) 	 	 	(23,232	) 	
	  	 	 	 	 	 	 	 	
Net deferred tax assets	  	$	56,007	  	 	$	87,469	  	
	  	 	 	 	 	 	 	 	
Deferred tax liabilities:	  				 				
Depreciation and amortization	  	$	5,709	  	 	$	5,238	  	
Acquisition intangibles	  	 	3,209	  	 	 	623	  	
	  	 	 	 	 	 	 	 	
Total deferred tax liabilities	  	$	8,918	  	 	$	5,861	  	
	  	 	 	 	 	 	 	 	
Total net deferred tax assets	  	$	47,089	  	 	$	81,608	  	
	  	 	 	 	 	 	 	 	
These net deferred tax assets have been categorized on the Consolidated Balance Sheets as of March 29, 2014 and March 30, 2013 as follows:

 	  	March 29,
2014	 	  	March 30,
2013	 	
Current deferred tax assets	  	$	22,024	  	  	$	64,937	  	
Long-term deferred tax assets	  	 	25,065	  	  	 	16,671	  	
	  	 	 	 	  	 	 	 	
Total net deferred tax assets	  	$	47,089	  	  	$	81,608	  	

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The current and long-term deferred tax assets are disclosed separately under their respective captions on the Consolidated Balance Sheets.
The valuation allowance increased by $8.9 million in fiscal year 2014 and decreased by $5.8 million in fiscal year 2013. The increase during fiscal year 2014 was primarily due to the equity acquisition of Acoustic, which had a large Federal net operating loss that will not be fully realized due to the limitations of Internal Revenue Code Section 382. The Company maintained its valuation allowance on various state net operating losses and credits due to the likelihood that they will expire or go unutilized because the Company no longer has a significant apportionment in the jurisdiction in which the attribute was created. The decrease in the fiscal year 2013 allowance was the result of a release of valuation allowance that the Company had maintained on its capital loss carryforward due to the capital gain income generated by the sale of assets associated with the Company’s Apex products. With regard to the remaining deferred tax assets, Management believes that the Company’s results from future operations will generate sufficient taxable income such that it is more likely than not that these deferred tax assets will be realized.
At March 29, 2014, we had federal net operating loss carryforwards of $81.3 million. Of that amount, $29.5 million related to acquired companies and are, therefore, subject to certain limitations under Section 382 of the Internal Revenue Code. Because the Company has elected the “with and without” method for purposes of tracking its excess stock deductions, the amount of federal net operating loss included in deferred tax assets is $61.2 million, which yields a tax effected deferred tax asset of $21.4 million. The net deferred tax asset for federal net operating loss carryforwards is $8.8 million after taking into account the valuation allowance that has been placed on this deferred tax asset. The Company had $110.0 million of excess stock deductions which are not included in deferred tax assets. The tax benefit from these deductions will increase additional paid-in capital when they are deemed realized under the “with and without” method. We had net operating losses in various states that total $94.0 million. The federal net operating loss carryforwards expire in fiscal years 2019 through 2034. The state net operating loss carryforwards expire in fiscal years 2015 through 2029. We also have non-U.S. net operating losses of $2.2 million, which do not expire.
Federal research and development credit carryforwards of $21.0 million expire in fiscal years 2018 through 2034. Under the “with and without method”, all but $612 thousand of these credit carryforwards are deemed to have been utilized in fiscal year 2014 and are therefore, not reflected as deferred tax assets at the end of the fiscal year. Of the $14.5 million of state research and development credits, $2.8 million will expire in fiscal years 2022 through 2027. The remaining $11.7 million of state research and development credits are not subject to expiration.
We have approximately $307 thousand of cumulative undistributed earnings in certain non-U.S. subsidiaries. We have not recognized a deferred tax liability on these undistributed earnings because the Company currently intends to reinvest these earnings in operations outside the U.S. The unrecognized deferred tax liability on these earnings is approximately $109 thousand.
We record unrecognized tax benefits for the estimated risk associated with tax positions taken on tax returns. The unrecognized tax benefits balance was zero at March 29, 2014 and March 30, 2013.
The Company does not believe that its unrecognized tax benefits will significantly increase or decrease during the next 12 months.
We accrue interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes. As of March 29, 2014, the balance of accrued interest and penalties was zero. No interest or penalties were incurred during fiscal year 2014 or 2013.
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 2011 through 2014 remain open to examination by the major taxing jurisdictions to which we are subject.
 
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18.    Segment Information
We determine our operating segments in accordance with Financial Accounting Standards Board (“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 performance in two product lines, which currently are audio and energy. 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 operations 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 from our product lines are as follows (in thousands):

 	  	Fiscal Years Ended	 	
 	  	March 29,
2014	 	  	March 30,
2013	 	  	March 31,
2012	 	
Audio Products	  	$	667,739	  	  	$	754,769	  	  	$	350,743	  	
Energy Products	  	 	46,599	  	  	 	55,017	  	  	 	76,100	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
	  	$	714,338	  	  	$	809,786	  	  	$	426,843	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Geographic Area
The following illustrates sales by geographic locations based on the sales office location (in thousands):

 	  	Fiscal Years Ended	 	
 	  	March 29,
2014	 	  	March 30,
2013	 	  	March 31,
2012	 	
United States	  	$	35,582	  	  	$	38,670	  	  	$	50,230	  	
European Union	  	 	13,125	  	  	 	17,601	  	  	 	23,493	  	
United Kingdom	  	 	1,513	  	  	 	1,610	  	  	 	434	  	
China	  	 	617,850	  	  	 	700,051	  	  	 	294,143	  	
Hong Kong	  	 	6,057	  	  	 	8,590	  	  	 	8,671	  	
Japan	  	 	5,150	  	  	 	9,299	  	  	 	15,196	  	
South Korea	  	 	9,338	  	  	 	8,975	  	  	 	9,781	  	
Taiwan	  	 	13,739	  	  	 	11,694	  	  	 	10,662	  	
Other Asia	  	 	11,112	  	  	 	10,387	  	  	 	13,063	  	
Other non-U.S. countries	  	 	872	  	  	 	2,909	  	  	 	1,170	  	
	  	 	 	 	  	 	 	 	  	 	 	 	
Total consolidated sales	  	$	714,338	  	  	$	809,786	  	  	$	426,843	  	

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The following illustrates property, plant and equipment, net, by geographic locations, based on physical location (in thousands):

 	  	Fiscal Years Ended	 	
 	  	March 29,
2014	 	  	March 30,
2013	 	
United States	  	$	103,287	  	  	$	100,343	  	
United Kingdom	  	 	16	  	  	 	23	  	
China	  	 	265	  	  	 	137	  	
Hong Kong	  	 	2	  	  	 	5	  	
Japan	  	 	12	  	  	 	25	  	
South Korea	  	 	5	  	  	 	6	  	
Taiwan	  	 	52	  	  	 	70	  	
Other Asia	  	 	11	  	  	 	14	  	
	  	 	 	 	  	 	 	 	
Total consolidated property, plant and equipment, net	  	$	103,650	  	  	$	100,623	  	
	  	 	 	 	  	 	 	 	
19.    Quarterly Results (Unaudited)
The following quarterly results have been derived from our audited annual consolidated financial statements. In the opinion of management, this unaudited quarterly information has been prepared on the same basis as the annual consolidated financial statements and includes all adjustments, including normal recurring adjustments, necessary for a fair presentation of this quarterly information. This information should be read along with the financial statements and related notes. The operating results for any quarter are not necessarily indicative of results to be expected for any future period.
The unaudited quarterly statement of operations data for each quarter of fiscal years 2014 and 2013 were as follows (in thousands, except per share data):

 	  	Fiscal Year 2014	 	
 	  	1st
Quarter	 	  	2nd
Quarter	 	  	3rd
Quarter	 	  	4th
Quarter	 	
Net sales	  	$	155,125	  	  	$	190,671	  	  	$	218,883	  	  	$	149,659	  	
Gross profit	  	 	79,498	  	  	 	99,448	  	  	 	103,849	  	  	 	73,368	  	
Net income	  	 	20,642	  	  	 	33,367	  	  	 	41,500	  	  	 	12,602	  	
Basic income per share	  	$	0.33	  	  	$	0.53	  	  	$	0.66	  	  	$	0.20	  	
Diluted income per share	  	 	0.31	  	  	 	0.50	  	  	 	0.63	  	  	 	0.20	  	

 	  	Fiscal Year 2013	 	
 	  	1st
Quarter	 	  	2nd
Quarter	 	  	3rd
Quarter	 	  	4th
Quarter	 	
Net sales	  	$	99,006	  	  	$	193,774	  	  	$	310,133	  	  	$	206,873	  	
Gross profit	  	 	53,440	  	  	 	100,087	  	  	 	158,050	  	  	 	83,614	  	
Net income	  	 	6,927	  	  	 	35,449	  	  	 	67,862	  	  	 	26,360	  	
Basic income per share	  	$	0.11	  	  	$	0.55	  	  	$	1.04	  	  	$	0.41	  	
Diluted income per share	  	 	0.10	  	  	 	0.51	  	  	 	0.99	  	  	 	0.39	  	
20.    Subsequent Event
On April 29, 2014, Cirrus Logic announced that Cirrus Logic and board of directors of Wolfson Microelectronics plc, a public limited company incorporated in Scotland (“Wolfson”), had agreed on the terms of a recommended cash offer of £2.35 per share (the “Offer”) to be made by Cirrus Logic for the acquisition of the entire issued and to be issued share capital of Wolfson (the “Acquisition”). The Offer values the entire issued and to be issued share capital of Wolfson at approximately £291 million (approximately $488 million based on a U.S.
 
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dollar to pound sterling exchange rate of 1.68) (the “Offer Consideration”), and implies an enterprise value of Wolfson of approximately £278 million (approximately $467 million based on a U.S. dollar to pound sterling exchange rate of 1.68). As a result of this agreement, we entered into a nine-month foreign currency hedging contract, which is expected to mitigate the risks of foreign currency fluctuation related to this transaction. The Acquisition, if approved, is expected to strengthen Cirrus Logic’s ability to expand its customer base with highly differentiated, end-to-end audio solutions for portable audio applications. The Acquisition will be financed by a combination of existing cash on Cirrus Logic’s balance sheet and $225 million in debt funding from Wells Fargo Bank, National Association. The Acquisition is expected to close in the second half of calendar year 2014.
Cirrus Logic entered into a credit agreement (the “Credit Agreement”) with Wells Fargo Bank, National Association as administrative agent and lender, on April 29, 2014, in connection with the Acquisition. The Credit Agreement provides for a $225 million senior secured revolving credit facility (the “Credit Facility”). The Credit Facility may be used for, among other things, payment of the Offer Consideration in connection with the deal. The Credit Facility matures on the earliest to occur of (a) January 23, 2015, (b) the date of termination of the Commitments as a result of a permanent reduction of all of the Commitments (as defined therein) by Cirrus Logic or (c) the date of termination of the Commitments as a result of an event of default (such date, the “Maturity Date”). Cirrus Logic must repay the outstanding principal amount of all borrowings, together with all accrued but unpaid interest thereon, on the Maturity Date. The Credit Facility is required to be guaranteed by all of Cirrus Logic’s material domestic subsidiaries (the “Subsidiary Guarantors”). The Credit Facility is secured by substantially all of the assets of Cirrus Logic and any Subsidiary Guarantors, except for certain excluded assets.
Borrowings under the Credit Facility may, at our election, bear interest at either (a) a base rate plus the applicable margin (“Base Rate Loans”) or (b) a LIBOR rate plus the applicable margin (“LIBOR Rate Loans”). The applicable margin ranges from 0% to .25% per annum for Base Rate Loans and 1.75% to 2.25% per annum for LIBOR Rate Loans based on the Leverage Ratio (as defined below). A Commitment Fee accrues at a rate per annum ranging from 0.30% to 0.40% (based on the Leverage Ratio) on the average daily unused portion of the Commitment of the Lenders. Certain representations and warranties are required under the Credit Agreement, and the Company must be in compliance with specified financial covenants, including the ratio of consolidated funded indebtedness to consolidated EBITDA for the prior four consecutive quarters must not be greater than 1.75 to 1.00 (the “Leverage Ratio”) and the sum of cash and cash equivalents of Cirrus Logic and its subsidiaries on a consolidated basis must not be less than $75 million.
 
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 ITEM 9.   Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 
None.
 
 ITEM 9A.   Controls	and Procedures 	
Evaluation of Disclosure Controls and Procedures
As required by Rule 13a-15(e) of the Exchange Act, we have evaluated, under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(b) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Form 10-K. 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 accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Commission. Based upon the evaluation, our chief executive officer and chief financial officer have concluded that our disclosure controls and procedures were effective as of March 29, 2014 at the reasonable assurance level.
Management’s Annual Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined under Rule 13a-15(f). Under the supervision and with the participation of our management, including our CEO and CFO, we assessed the effectiveness of our internal control over financial reporting as of the end of the period covered by this report based on the framework in “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Because of its inherent limitation, internal control over financial reporting may not prevent or detect misstatements. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions and that the degree of compliance with the policies or procedures may deteriorate.
Based on its assessment of internal control over financial reporting, management has concluded that our internal control over financial reporting was effective as of March 29, 2014, to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of our financial statements for external purposes in accordance with U.S. generally accepted accounting principles.
Our independent registered public accounting firm, Ernst & Young LLP, has issued an attestation report on management’s assessment of our internal control over financial reporting as of March 29, 2014, included in Item 8 of this report.
Changes in Internal Control Over Financial Reporting
There has been no change in the Company’s internal control over financial reporting during the quarter ended March 29, 2014, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
 PART III
ITEM 10.   Directors , Executive Officers and Corporate Governance
The information set forth in the proxy statement to be delivered to stockholders in connection with our Annual Meeting of Stockholders to be held on July 28, 2014 (the “Proxy Statement”) under the headings Corporate Governance — Board Meetings and Committees, Corporate Governance — Audit Committee, Proposals to be Voted on — Proposal No. 1 — Election of Directors, Summary of Executive Compensation, and Section 16(a) Beneficial Ownership Reporting Compliance is incorporated herein by reference.
 
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ITEM 11.   Executive Compensation
The information set forth in the Proxy Statement under the headings Director Compensation Arrangements , Compensation Discussion and Analysis, Compensation Committee Report, and Proposals to be Voted on — Proposal No. 3 — Advisory Vote to Approve Named Executive Officer Compensation, Proposal No. 4 —Approval of the Amendment to, and the Restatement of, the 2006 Stock Incentive Plan and Proposal No. 5 — Approval of Material Terms of the 2006 Incentive Plan, as amended and restated, for purposes of complying with the requirements of Section 162(m) of the Internal Revenue Code are incorporated herein by reference.
ITEM 12.   Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
The information set forth in the Proxy Statement under the headings Equity Compensation Plan Information and Security Ownership of Certain Beneficial Owners and Management is incorporated herein by reference.
ITEM 13.   Certain Relationships and Related Transactions, and Director Independence
The information set forth in the Proxy Statement under the headings Certain Relationships and Related Transactions and Corporate Governance is incorporated herein by reference.
ITEM 14.   Principal Accountant Fees and Services 
The information set forth in the Proxy Statement under the headings Audit and Non-Audit Fees and Services and Proposal No. 2 — Ratification of Appointment of Independent Registered Public Accounting Firm is incorporated herein by reference.
 PART IV
ITEM 15.   Exhibits and Financial Statement Schedules
 
(a)	The following documents are filed as part of this Report:	
 
 	1.	Consolidated Financial Statements	
 
 	¡	 	Reports of Ernst & Young LLP, Independent Registered Public Accounting Firm.	
 
 	¡	 	Consolidated Balance Sheets as of March 29, 2014 and March 30, 2013.	
 
 	¡	 	Consolidated Statements of Comprehensive Income for the fiscal years ended March 29, 2014, March 30, 2013, and March 31, 2012.	
 
 	¡	 	Consolidated Statements of Cash Flows for the fiscal years ended March 29, 2014, March 30, 2013, and March 31, 2012.	
 
 	¡	 	Consolidated Statements of Stockholders’ Equity for the fiscal years ended March 29, 2014, March 30, 2013, and March 31, 2012.	
 
 	¡	 	Notes to Consolidated Financial Statements.	
 
 	2.	Financial Statement Schedules	
All schedules have been omitted since the required information is not present or not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements or notes thereto.
 
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 	3.	Exhibits	
The following exhibits are filed as part of or incorporated by reference into this Annual Report on Form 10-K:

Number	  	Description	
2.1	  	Credit Agreement dated April 29, 2014 among the Company, Wells Fargo Bank and National Association, as Administrative Agent and Lender. (1)	
2.2	  	Cooperation Agreement dated April 29, 2014 between the Company and Wolfson Microelectronics plc. (1)	
3.1	  	Certificate of Incorporation of Registrant, filed with the Delaware Secretary of State on August 26, 1998. (2)	
3.2	  	Amended and Restated Bylaws of Registrant. (3)	
10.1+	  	Cirrus Logic, Inc. 1996 Stock Plan, as amended and restated as of December 4, 2007. (4)	
10.2+	  	2002 Stock Option Plan, as amended. (5)	
10.3+	  	Cirrus Logic, Inc. 2006 Stock Incentive Plan. (6)	
10.4+	  	Form of Stock Option Agreement for options granted under the Cirrus Logic, Inc. 2006 Stock Incentive Plan. (7)	
10.5+	  	Form of Notice of Grant of Stock Option for options granted under the Cirrus Logic, Inc. 2006 Stock Incentive Plan. (6)	
10.6+	  	Form of Stock Option Agreement for Outside Directors under the Cirrus Logic, Inc. 2006 Stock Incentive Plan. (8)	
10.7+	  	Form of Restricted Stock Award Agreement under the Cirrus Logic, Inc. 2006 Stock Incentive Plan. (9)	
10.8+	  	Form of Restricted Stock Unit Agreement for U.S. Employees under the Cirrus Logic, Inc. 2006 Stock Incentive Plan. (7)	
10.9+	  	Form of Notice of Grant of Restricted Stock Units granted under the Cirrus Logic, Inc. 2006 Stock Incentive Plan. (7)	
10.10+	  	2007 Executive Severance and Change of Control Plan, effective as of October 1, 2007, as amended and restated on March 4, 2014. (10)	
10.11+	  	2007 Management and Key Individual Contributor Incentive Plan, as amended on May 28, 2013. (11)	
10.12	  	The Revised Stipulation of Settlement dated March 10, 2009. (12)	
10.13	  	Credit Agreement dated April 19, 2012, among the Company, Wells Fargo Bank, National Association, as Administrative Agent and Issuing Lender, Barclays Bank, as Syndication Agent, Wells Fargo Securities, LLC and Barclays Capital, as Joint Lead Arrangers and Co-Book Managers, and the lenders referred to therein. (13)	
14.1*	  	Code of Conduct, dated March 5, 2014.	
23.1*	  	Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm.	
24.1*	  	Power of Attorney (see signature page).	
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*	  	XBRL Instance Document	
101.SCH*	  	XBRL Taxonomy Extension Schema Document	
101.CAL*	  	XBRL Taxonomy Extension Calculation Linkbase Document	
101.LAB*	  	XBRL Taxonomy Extension Label Linkbase Document	
101.PRE*	  	XBRL Taxonomy Extension Presentation Linkbase Document	
101.DEF*	  	XBRL Taxonomy Extension Definition Linkbase Document	
 
+	Indicates a management contract or compensatory plan or arrangement.	
 
*	Filed with this Form 10-K.	
 
 	(1)	Incorporated by reference from Registrant’s Report on Form 8-K filed with the SEC on April 29, 2014 (Registration No. 000-17795).	
 
 	(2)	Incorporated by reference from Registrant’s Report on Form 10-K for the fiscal year ended March 31, 2001, filed with the SEC on June 22, 2001 (Registration No. 000-17795).	
 
 	(3)	Incorporated by reference from Registrant’s Report on Form 8-K filed with the SEC on September 20, 2013.	
 
 	(4)	Incorporated by reference from Registrant’s Report on Form 10-Q filed with the SEC on January 30, 2008.	
 
Page 70 of 72

Table of Contents

 	(5)	Incorporated by reference from Registrant’s Report on Form 10-K for the fiscal year ended March 29, 2003, filed with the SEC on June 13, 2003 (Registration No. 000-17795).	
 
 	(6)	Incorporated by reference from Registration’s Statement on Form S-8 filed with the SEC on August 1, 2006 (Registration No. 000-17795), as amended on Form 8-K filed with the SEC on March 4, 2014 (Registration No. 000-17795).	
 
 	(7)	Incorporated by reference from Registrant’s Report on Form 8-K filed with the SEC on October 7, 2010.	
 
 	(8)	Incorporated by reference from Registrant’s Report on Form 8-K filed with the SEC on August 1, 2007.	
 
 	(9)	Incorporated by reference from Registrant’s Report on Form 10-Q filed with the SEC on November 5, 2007.	
 
 	(10)	Incorporated by reference from Registrant’s Report on Form 8-K filed with the SEC on March 10, 2014.	
 
 	(11)	Incorporated by reference from Registrant’s Report on Form 10-K for the fiscal year ended March 30, 2013, filed with the SEC on May 29, 2013 (Registration No. 000-17795).	
 
 	(12)	Incorporated by reference from Registrant’s Report on Form 8-K filed with the SEC on April 1, 2009.	
 
 	(13)	Incorporated by reference from Registrant’s Report on Form 8-K filed with the SEC on April 25, 2012.	
 
Page 71 of 72

Table of Contents
 Signatures
Pursuant to the requirements of Section 13 or 15(d) 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.	
		
By:	 	/ S / T HURMAN K. C ASE	
	 	Thurman K. Case	
	 	Vice President, Chief Financial Officer and Chief Accounting Officer	
	 	May 28, 2014	
KNOW BY THESE PRESENT, that each person whose signature appears below constitutes and appoints Thurman K. Case, his attorney-in-fact, with the power of substitution, for him in any and all capacities, to sign any amendments to this report on Form 10-K and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of the attorney-in-fact, or his substitute or substitutes, may do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, the following persons on behalf of the Registrant, in the capacities and on the dates indicated have signed this report below:

Signature	  	Title	 	Date	
			
/ S / J ASON P. R HODE
Jason P. Rhode	  	President and Chief Executive
Officer	 	May 28, 2014	
			
/ S / T HURMAN K. C ASE
Thurman K. Case	  	Vice President, Chief Financial
Officer and Chief Accounting
Officer	 	May 28, 2014	
			
/ S / J OHN C. C ARTER
John C. Carter	  	Director	 	May 28, 2014	
			
/ S / T IMOTHY R. D EHNE
Timothy R. Dehne	  	Director	 	May 28, 2014	
			
/ S / C HRISTINE K ING
Christine King	  	Director	 	May 28, 2014	
			
/ S / A LAN R. S CHUELE
Alan R. Schuele	  	Director	 	May 28, 2014	
			
/ S / W ILLIAM D. S HERMAN
William D. Sherman	  	Director	 	May 28, 2014	
			
/ S / S USAN W ANG
Susan Wang	  	Director	 	May 28, 2014	
 
Page 72 of 72

Exhibit 14.1
Corporate Code of Conduct
of
Cirrus Logic, Inc.
June 3, 2004
(as amended on
April 23, 2013, and March 5, 2014)

Table of Contents

I.	 	Ethics and Compliance	  	 	1	  	
			
II.	 	Confidential Information	  	 	2	  	
			
III.	 	Conflicts of Interest and Corporate Opportunities	  	 	3	  	
			
IV.	 	Fair Dealing	  	 	4	  	
			
V.	 	Government Investigations	  	 	4	  	
			
VI.	 	Insider Information	  	 	4	  	
			
VII.	 	Customer, Supplier and Competitor Relations	  	 	5	  	
			
VIII.	 	Export Controls	  	 	8	  	
			
IX.	 	Public Company Reporting	  	 	8	  	
			
X.	 	Record Management	  	 	8	  	
			
XI.	 	Recording Transactions	  	 	9	  	
			
XII.	 	Use and Protection of Company Assets	  	 	9	  	
			
XIII.	 	Delegation of Authority	  	 	10	  	
			
XIV.	 	Monitoring and Enforcement	  	 	10	  	
			
XV.	 	Reporting Violations	  	 	10	  	
			
XVI.	 	Corrective Actions	  	 	11	  	
			
XVII.	 	Amendment, Modification, Waiver and Termination of Provisions of the Code	  	 	11	  	
 
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CORPORATE CODE OF CONDUCT
 
I .	ETHICS AND COMPLIANCE	
Cirrus Logic, Inc. (“we” or the “Company”) is committed to promoting integrity, honesty and professionalism, and maintaining the highest standards of ethical conduct in all of the Company’s activities. The Company’s business success is dependent on our reputation for integrity and fairness. Therefore, it is essential that the highest standards of conduct and professional integrity be observed in all contacts made by our directors and employees with our customers, creditors, stockholders, suppliers, governmental officials, fellow employees and members of the general public. In this regard, we have established this written set of policies dealing with the rules and policies of conduct to be used in conducting the business affairs of the Company.
This document does not cover all Company policies or all laws. Please refer to the Company’s intranet for additional policies adopted by the Company. In addition, if a local law conflicts with a policy in this Code, then you must comply with the law; if a local custom or practice conflicts with this Code, then you must comply with this Code. If your line of business or region has a policy or practice that conflicts with this Code, then you must comply with this Code. If your line of business or region has policies or practices that require more of you than is required by the Code or if local law requires more, then you must follow the stricter policy, practice or law. Think of this Code as a baseline, or a minimum requirement, which must always be followed. The only time you can go below the baseline is if a law absolutely requires you to do so or if the Company’s Board of Directors or the Governance and Nominating Committee of the Board has approved the exception in writing.
No set of policy guidelines can anticipate all situations that the Company’s employees or directors may encounter. When faced with a business decision with ethical implications, you as an employee or director should ask yourself the following questions:
 
 	•	 	Would my actions inspire trust?	
 
 	•	 	Are my actions legal? If legal, are they also ethical? Are my actions fair and honest in every respect?	
 
 	•	 	Can I defend this action with a clear conscience before my supervisor, fellow employees and the general public?	
 
 	•	 	Would my supervisor act this way? Would it be helpful to ask my supervisor about this matter before I act?	
 
 	•	 	Would I want my actions reported in the newspaper?	
When in doubt, you are encouraged to seek guidance and express any concerns you may have regarding this Code. Questions regarding these rules and policies should be directed to the Company’s General Counsel. Any concerns or possible violations of these rules and policies should be promptly reported by contacting Ethicspoint, an independent reporting system provider, by phone at 1-866-384-4277 (1-866-ETHICSP), or through its website at www.ethicspoint.com.
 
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Violations of the rules and policies of conduct set forth in this Code will result in corrective action up to and including termination of employment.
 
II.	CONFIDENTIAL INFORMATION	
Information on the Company’s activities, strategies and business data is proprietary. Confidential information includes all non-public information that might be of use to the Company’s competitors, or harmful to the Company or the Company’s customers, if disclosed. We believe that our confidential proprietary information and data are important corporate assets in the operation of our business and prohibit the use or disclosure of this information, except when disclosure is authorized or legally mandated. You must be careful not to disclose confidential information to unauthorized persons, either inside or outside the Company, and you must exercise care to protect the confidentiality of information received from any other party.
To protect this information, it is Company policy that:
 
 	•	 	Confidential information of the Company should be disclosed within the Company only on a need-to-know basis.	
 
 	•	 	Confidential information of the Company should be disclosed outside the Company only when required by law or when necessary to further the Company’s business activities and in accordance with the Company’s disclosure guidelines. Any disclosure of confidential information outside the Company must be pursuant to an approved Non-Disclosure Agreement.	
Concerns with respect to confidential information may arise in the securities area as well. See the Company’s Policy on Insider Trading and Confidentiality that is accessible on the Company’s intranet. If you believe you have a legal obligation to disclose confidential information, you should consult the Legal Department prior to doing so.
Patents, Copyrights, Trademarks and Proprietary Information
Protection of the Company’s intellectual property, including its trade secrets, pending patent information, scientific and technical knowledge, know-how and the experience developed in the course of the Company’s activities, is essential to maintaining our competitive advantage. This information should be protected by all Company personnel and should not be disclosed to outsiders.
Much of the information we develop in research, production, marketing, sales, legal and finance is original in nature and its protection is essential to our continued success. This information should be safeguarded. Proprietary/confidential information and trade secrets may consist of any formula, pattern, device or compilation of information maintained in secrecy that is used in business, and that gives the business an opportunity to obtain an advantage over competitors who do not know about it or use it. This information should be protected by all Company employees and not disclosed to outsiders. Its loss through inadvertent or improper disclosure could be harmful to the Company.
 
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No Inadvertent Disclosures
In becoming an employee, you were required to sign an agreement confirming your obligation not to disclose the Company’s proprietary confidential information, both while you are employed and after you leave the Company. The loyalty, integrity and sound judgment of the Company’s employees both on and off the job are essential to the protection of this information.
You should be especially mindful in the use of the telephone, cellular telephone, fax, telex, electronic mail, and other electronic means of storing and transmitting information.
You should take every practicable step to preserve the Company’s confidential information. For example, you should not discuss material information in elevators, hallways, restrooms, restaurants, airplanes, taxicabs, or any place where you can be overheard; not read confidential documents in public places or discard them where they can be retrieved by others; not leave confidential documents in unattended conference rooms; and not leave confidential documents behind when a meeting or conference is over. Also, you should be cautious when conducting conversations on speaker telephones in offices, and of the potential for eavesdropping on conversations conducted on cellular, car or airplane telephones, and other unsecured means of communication.
 
III.	CONFLICTS OF INTEREST AND CORPORATE OPPORTUNITIES	
A conflict of interest occurs when an individual’s private interest interferes, or even appears to interfere, in any way with the interests of the Company as a whole. As a result, you as an employee or director must avoid any action that may involve, or may appear to involve, a conflict of interest with the Company. If you consider undertaking any transaction or relationship that reasonably could be expected to give rise to an actual or apparent conflict or disparity of interest between you and the Company, or in your personal or professional relationship, you must promptly disclose this activity for review by the Legal Department. Immediate disclosure of any potential conflict is the key to remaining in full compliance with this Code.
Examples of Potential Conflicts:
 
 	•	 	You take actions or have interests that may make it difficult to perform your work at the Company objectively and effectively.	
 
 	•	 	You, or a member of your family, receive improper personal benefits as a result of your position in the Company.	
 
 	•	 	You perform services for, serve as a director, employee or consultant of, or have a substantial interest in, any competitor of the Company.	
 
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 	•	 	You engage in a transaction with the Company, or work for or own a substantial interest in any organization, doing or seeking to do business with the Company.	
 
 	•	 	You intend to acquire ownership of, or an interest in, any type of property (such as real estate, patent rights, securities or software) in which the Company has or might reasonably be thought to have an interest.	
In addition, you are prohibited from engaging in the following corporate opportunities:
 
 	•	 	Taking for yourself personally opportunities that are discovered through the use of Company property, information or position.	
 
 	•	 	Using Company property, information or position for personal gain.	
 
 	•	 	Competing with the Company.	
You owe a duty to the Company to advance the Company’s legitimate interests when the opportunity to do so arises.
 
IV.	FAIR DEALING	
You should endeavor to deal fairly with the Company’s customers, suppliers, competitors and employees. You should not take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair-dealing practice.
 
V.	GOVERNMENT INVESTIGATIONS	
It is Company policy to fully cooperate with any appropriate government investigation. If you learn about a possible government investigation or inquiry, inform the Legal Department immediately.
The Company prohibits any employee, officer or director from altering, destroying, mutilating or concealing a record, document, or other object, or attempting to do so, with the intent to impair the object’s integrity or availability for use in an official preceding. Furthermore, the Company prohibits any employee or director from otherwise obstructing, influencing or impeding any official proceeding or any attempts to do so.
 
VI.	INSIDER INFORMATION	
In the normal course of business, directors, officers and employees of the Company may come into possession of significant, nonpublic information. This kind of information, often referred to as “material, nonpublic” information in the securities laws, is considered the property of the Company that you have been entrusted with. Accordingly, you may not seek to profit from it by buying or selling securities yourself or by passing on the information to others to enable them to profit. This rule applies to trading in Cirrus’ own securities, but it also applies to trading in the securities of other companies if you learn something in the course of your employment or relationship with Cirrus that might affect the value of the other stock. The insider trading rules apply both to buying stock (to make a profit based on good news) and selling stock (to avoid a loss based on bad news).
 
-4-

Besides your obligation to refrain from trading while in possession of material, nonpublic information, you are also prohibited from “tipping” others. The concept of unlawful tipping includes passing on information to friends or family members under circumstances that suggest that you were trying to help them make a profit or avoid a loss. When tipping occurs, both the “tipper” and the “tippee” may be held liable, and this liability may extend to all those to whom the tippee, in turn, gives the information.
The basic Company policy in the insider trading area is that no trading under any circumstances is permitted by Company personnel while such personnel or members of their households possess material, nonpublic information, as described above. In addition, certain individuals are restricted from trading during restricted trading periods, generally in connection with the Company’s earnings announcements. The policy also includes other prohibitions on trading, including the prohibition against trading in options in the Company’s securities, which are specifically designed to encourage investment in the Company’s stock for the long term, on a buy and hold basis, and to discourage active trading or short-term speculation. For additional information regarding the complete policy, see the Company’s Policy on Insider Trading and Confidentiality, which can be accessed on the Company intranet.
 
VII.	CUSTOMER, SUPPLIER AND COMPETITOR RELATIONS	
The Company, its employees, and representatives must treat customers, business allies and suppliers fairly and may not engage in anticompetitive practices that unlawfully restrict the free market economy. In addition, the Company and employees and directors must comply with all U.S. and non-U.S. laws, rules and regulations applicable in the country, state and local jurisdiction where the Company conducts business.
Permissible Payments
The payment of normal discounts and allowances, commissions, fees, sales promotion activity, entertainment, and the extension of services and other customary courtesies in the ordinary course of business is permissible so long as they have been authorized and properly recorded. If a customer, supplier, vendor or government agency has adopted a more stringent policy than the Company’s regarding gifts and gratuities, then you must comply with that more stringent policy when dealing with that person or entity. (See below for a discussion of gifts to government representatives.)
Anti-Bribery
The Company’s objective is to compete in the marketplace on the basis of superior products, services and competitive prices. No payment in any form (whether funds or assets) shall be made directly or indirectly to anyone for the purpose of obtaining or retaining business or to obtain any other favorable action. It is imperative that each and every person who does business with the Company understands that we will not, under any circumstances, give or accept bribes or kickbacks. A violation of this policy will subject you to corrective action as well as potential criminal prosecution.
 
-5-

Gifts
No gift should be accepted from a supplier, vendor or customer unless the gift has insubstantial value and a refusal to accept it would be discourteous or otherwise harmful to the Company. This applies equally to gifts to suppliers or vendors or non-governmental customers. (See below for a discussion of gifts to government representatives.)
Entertainment
Appropriate business entertainment of non-government employees occurring in connection with business discussions or the development of business relationships is generally deemed appropriate in the conduct of official business. This may include business-related meals and trips, refreshments before or after a business meeting, and occasional athletic, theatrical or cultural events. Entertainment in any form that would likely result in a feeling or expectation of personal obligation should not be extended or accepted. This applies equally to giving or receiving entertainment.
Government Representatives
What is acceptable practice in the commercial business environment may be illegal or against the policies of federal, state or local governments. Therefore, no gifts or business entertainment of any kind may be given to any government employee without the prior approval of the Legal Department, except for items of nominal value having the Cirrus Logic logo (i.e., pens, coffee mugs, etc.).
In addition, the Foreign Corrupt Practices Act (“FCPA”) prohibits giving anything of value to officials or political parties of foreign governments in order to obtain or retain business or to gain any improper advantage. Any proposed incentive to be given to government personnel to secure an improper advantage is not permitted. In your relations with governmental agencies or customers, the Company and you may not directly or indirectly engage in bribery, kickbacks, payoffs or other corrupt business practices. If you suspect that any payment is being used for improper purposes, you must immediately report the situation to the Legal Department for investigation.
In certain instances, the FCPA does allow what are referred to as “facilitating payments.” Typically, these are nominal payments given to relatively low-ranking government personnel to hasten the inspection of goods or the performance of other basic administrative tasks. Nonetheless, the Company strongly discourages these payments, and in any case, the payment must also be consistent with applicable laws of the host country. If you are faced with or anticipate a situation that may involve a facilitating payment, contact the Legal Department before taking any action.
The FCPA also prohibits knowingly falsifying the Company’s books and records or knowingly circumventing or failing to implement accounting controls.
 
-6-

Third-Party Agents
The Company’s business may involve the use of agents, consultants, brokers or representatives in connection with its dealings with governmental entities, departments, officials and employees. These arrangements may not be employed to do anything prohibited by this Code. The commissions or fees payable to a third party must be reasonable in amount for the services rendered in accordance with local business practices.
Antitrust Matters
Antitrust laws are intended to protect and promote free and fair competition. These laws apply to all U.S. and some non-U.S. transactions by businesses in the United States. Therefore, you should not exchange information with competitors regarding prices or market share and should refrain from exchanging other information that could be construed as a violation of antitrust laws.
A violation of antitrust laws is a serious offense. In the United States, it is not uncommon for individuals to be criminally prosecuted. You should report to the Legal Department any instance in which these discussions are initiated by other companies.
Agreements with Competitors
Formal or informal agreements with competitors that seek to limit or restrict competition in some way are often illegal. Unlawful agreements include those that seek to fix or control prices; allocate products, markets or territories; or boycott certain customers or suppliers. To ensure compliance with antitrust law, discussions with competitors regarding any of these potential agreements is a violation of Company policy and will subject you to corrective action, as well as the potential for criminal prosecution.
Agreements with Customers
Certain understandings between the Company and a customer are also considered anti-competitive and illegal. These include agreements that fix resale prices or that result in discriminatory pricing among customers for the same product. These types of restrictive understandings must not be discussed or agreed to with a customer.
Trade Association Activity
Contact with competitors at trade shows or trade association meetings is unavoidable. However, these contacts are not immune from antitrust law. Consequently, contact with competitors necessitated by these meetings should be as limited as possible and kept strictly to the subjects on the agenda for the meeting. In addition, employee participants in trade associations should consult with the Legal Department regarding any proposed association activity that would have a potential effect on competition, such as the development of product standards or an industry code of practice.
 
-7-

Boycotts
It is illegal under U.S. anti-boycott regulations to enter into an agreement to refuse to deal with potential or actual customers or suppliers, or otherwise to engage in or support restrictive international trade practices or boycotts. The Company will not agree to a contract, document or oral request containing language that could be interpreted as an attempt by any country to enforce a boycott. Even providing information may constitute a violation of U.S. law, which requires that boycott requests be immediately reported to the government even when a response is not provided, and calls for the imposition of fines and other penalties on U.S. parent companies in cases where their non-U.S. subsidiaries violate U.S. anti-boycott regulations. Therefore, any request for information or receipt of boycott-related documentation must be immediately reported to the Legal Department.
 
VIII.	 EXPORT CONTROLS	
It is our policy to fully comply with all applicable U.S. export, customs and trade control laws and regulations, licensing requirements, relevant non-U.S. laws and international sanctions. The Company is responsible for customs, export and trade control compliance, and will establish licensing and compliance programs. To the extent feasible, the Company is expected to perform due diligence and know its customer in any business transaction. Any investigation or inquiry by a U.S. governmental organization regarding alleged trade control violations or irregularities should be immediately reported to the Legal Department prior to taking any action. The Legal Department is available to answer any questions regarding customers, export licensing and trade controls and should be consulted as the need arises.
 
IX.	PUBLIC COMPANY REPORTING	
As a public company, it is of critical importance that our filings and submissions with the Securities and Exchange Commission (the “Commission”) be accurate and timely. Depending on your position with the Company, you may be called upon to provide necessary information to assure that the Company’s public reports and documents filed with the Commission and in other public communications by the Company are full, fair and understandable. The Company expects you to provide prompt, accurate answers to inquiries related to the Company’s public disclosure requirements.
 
X.	RECORD MANAGEMENT	
The Legal Department has company-wide responsibility for developing, administering and coordinating the record management program, and issuing retention guidelines for specific types of documents. Records should be maintained to comply with applicable statutory, regulatory or contractual requirements, as well as pursuant to prudent business practices. The Company prohibits any employee or director from altering, destroying, mutilating or concealing a record, document, or other object, or attempt to do so, with the intent to impair the object’s integrity or availability for use in an official proceeding. You can contact the Legal Department for specific information on the Company’s Document Retention Policy.
 
-8-

XI.	RECORDING TRANSACTIONS	
We have established and maintain a high standard of accuracy and completeness in our financial records. These records serve as the basis for managing our business, for measuring and fulfilling its obligations to employees, customers, suppliers and others, and for compliance with tax and financial reporting requirements.
In the preparation and maintenance of records, employees must make and keep books, invoices, records and accounts that, in reasonable detail, accurately and fairly reflect the financial transactions of the Company. These records must comply with generally accepted accounting practices and principles. Accounting entries must be promptly and accurately recorded and properly documented. No accounting entry may intentionally distort or disguise the true nature of any transaction. The Company prohibits the establishment of any undisclosed or unrecorded funds or assets for any purpose.
Each employee must maintain accurate records of transactions, time reports, expense accounts and other company records. You are prohibited from making a representation, either in a document or in oral communication, which is other than fully accurate. The Company has devised, implemented and maintained a system of internal accounting controls that is sufficient to provide reasonable assurances that financial transactions are properly authorized, executed and recorded. You must comply with this system and report any incident that you believe is in violation of the requirements of this system.
See “Reporting Violations” in Section XV below for specific information on reporting violations of this Code, as well as issues regarding accounting, internal accounting controls or auditing matters, harassment or discrimination, or any other issue.
 
XII.	USE AND PROTECTION OF COMPANY ASSETS	
Company assets are to be used only for the legitimate business purposes of the Company and its subsidiaries and only by authorized employees or their designees. This includes both tangible and intangible assets.
Some examples of tangible assets include office equipment, such as telephones, copy machines, computers, furniture, supplies and production equipment. Some examples of intangible assets include intellectual property, such as pending patent information, trade secrets or other confidential or proprietary information (whether in printed or electronic form).
You are responsible for ensuring that appropriate measures are taken to assure that Company assets are properly protected. In addition, you should take appropriate measures to ensure the efficient use of Company assets, since theft, carelessness and waste have a direct impact on the Company’s profitability.
Use of E-mail and the Internet
The use of the Company’s electronic mail (e-mail) system and connection to the Internet should be used primarily for Company business. All employees, officers and directors should use the same care, caution and etiquette in sending e-mail messages as in all other written or oral
 
-9-

business communications. The Company will not tolerate discriminatory, offensive, defamatory, pornographic and other similar type of messages or materials sent by e-mail or accessed through the Internet. Since the e-mail system and Internet connection are Company resources, the Company reserves the right at any time to monitor and inspect without notice, all electronic communications using these Company resources.
Computer Software
Most computer software is protected by copyrights. The Company’s policy is to respect copyrights and to strictly adhere to all relevant laws and regulations regarding the use and copying of computer software. Therefore, the unauthorized duplication of software, whether or not owned by the Company, is prohibited, even if the duplication is for business purposes, is of limited duration, or is otherwise accepted local practice.
 
XIII.	 DELEGATION OF AUTHORITY	
See the Company’s Policy on Transaction Processing and Signature Authority Policy that is accessible on the Company’s intranet.
 
XIV.	 MONITORING AND ENFORCEMENT	
You should take steps to ensure compliance with the standards set forth in this Code in the operations of the Company. If there are instances of non-compliance, employees and directors shall ensure timely and reasonable remediation of any non-compliance, whether found by internal or external monitors, and ensure that adequate steps are taken to prevent the recurrence and/or occurrence in the Company. In instances where the proper and ethical course of action is unclear, you should seek counsel from the Legal Department.
All managerial personnel are responsible for the necessary distribution of this Code to ensure employee knowledge and compliance on a worldwide basis.
 
XV.	REPORTING VIOLATIONS	
You are encouraged to submit any concerns or complaints anonymously and/or confidentially regarding violations of this Code, accounting, internal accounting controls or auditing matters, harassment, discrimination, or any other issue by contacting Ethicspoint, an independent reporting system provider, by phone at 1-866-384-4277 (1-866-ETHICSP), or through its website at www.ethicspoint.com. The values and responsibilities outlined in this Code are important to the Company and must be taken seriously by all employees. As a result, violations of these values and responsibilities will not be tolerated.
You are encouraged to speak to your supervisor, manager or other appropriate personnel when in doubt about the best course of action in a particular situation. You are also encouraged to promptly report information or knowledge of any act in violation of the laws, rules, regulations or this Code, or which you believe to be unethical.
In no event will any action be taken against you for making a complaint or reporting, in good faith, known or suspected violations of Company policy. You will not lose your job for refusing an order you reasonably believe would violate the provisions of this Code, and any retaliation against you is prohibited.
 
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Any report by an employee or director will be kept confidential to the extent permitted by law and regulation and the Company’s ability to address these concerns. In certain instances, the identity of the reporting employee, officer or director may be provided to those persons involved in the investigation.
 
XVI. 	CORRECTIVE ACTION	
Violations of the rules and policies of conduct set forth in this Code may result in one or more of the following corrective actions, as appropriate:
 
 	•	 	a warning;	
 
 	•	 	a reprimand (noted in the employee’s personnel record);	
 
 	•	 	probation;	
 
 	•	 	demotion;	
 
 	•	 	temporary suspension;	
 
 	•	 	required reimbursement of losses or damages;	
 
 	•	 	termination of employment; and/or	
 
 	•	 	referral for criminal prosecution or civil action.	
Corrective actions may apply to any supervisor who directs or approves any prohibited actions, or has knowledge of them and does not promptly correct them.
As stated above, reporting possible violations of this Code will not result in retaliation against the employee for making this report.
Conduct that violates this Code may also violate federal or state laws or laws outside the United States. These violations may subject you to prosecution, imprisonment and fines. The Company may also be subject to prosecution and fines for your conduct.
 
XVII. 	AMENDMENT, MODIFICATION, WAIVER AND TERMINATION OF PROVISIONS OF THE CODE	
We reserve the right to amend, modify, waive or terminate these rules and policies at any time for any reason.
We will disclose any waivers of this Code made to executive officers or directors of the Company, subject to the provisions of the Securities Exchange Act of 1934, as amended, and the rules thereunder, and all applicable listing rules. Waivers of this Code can only be granted by the Board of Directors or the Governance and Nominating Committee of the Board of Directors.
 
-11-

Exhibit 23.1
Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 33-65495, 333-16417, 333-42693, 333-72573, 333-88345, 333-48490, 333-67322, 333-101119, 333-107808, 333-117741, and 333-136219) pertaining to the following: the Cirrus Logic, Inc. Amended 1996 Stock Plan; the Cirrus Logic, Inc. 2002 Stock Option Plan; and the Cirrus Logic, Inc. 2006 Stock Incentive Plan of our reports dated May 28, 2014, with respect to the consolidated financial statements of Cirrus Logic, Inc., and the effectiveness of internal control over financial reporting of Cirrus Logic, Inc., included in its Annual Report (Form 10-K) for the fiscal year ended March 29, 2014.
/s/ Ernst & Young LLP
Austin, Texas
May 28, 2014

Exhibit 31.1

 
CERTIFICATION
Pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Jason P. Rhode, certify that:
 
1.	I have reviewed this annual report on Form 10-K of Cirrus Logic, Inc.;	
 
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;	
 
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;	
 
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:	
 
 	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;	
 
 	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;	
 
 	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and	
 
 	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and	
 
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):	
 
 	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and	
 
 	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.	

Date:      May 28, 2014	 		 	Signature:	 	/s/ Jason P. Rhode	
	 		 		 	Jason P. Rhode	
	 		 		 	President and Chief Executive Officer	

Exhibit 31.2

 
CERTIFICATION
Pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Thurman K. Case, certify that:
 
1.	I have reviewed this annual report on Form 10-K of Cirrus Logic, Inc.;	
 
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;	
 
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;	
 
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:	
 
 	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;	
 
 	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;	
 
 	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and	
 
 	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and	
 
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):	
 
 	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and	
 
 	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.	

Date:     May 28, 2014	 		 	Signature: 	 	/s/ Thurman K. Case	
	 		 		 	Thurman K. Case	
	 		 		 	Vice President, Chief Financial Officer and
Principal Accounting Officer	

Exhibit 32.1
Certification Pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the annual report of Cirrus Logic, Inc. (the “Company”) on Form 10-K for the period ended March 29, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jason P. Rhode, Chief Executive Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to my knowledge:
 
 	1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and	
 
 	2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.	
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
This Certification has not been, and shall not be deemed, “filed” with the Securities and Exchange Commission.

Date: May 28, 2014	 		 		 	/s/ Jason P. Rhode	
	 		 		 	Jason P. Rhode	
	 		 		 	President and Chief Executive Officer	

Exhibit 32.2
Certification Pursuant to 18 U.S.C. Section 1350, 
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the annual report of Cirrus Logic, Inc. (the “Company”) on Form 10-K for the period ended March 29, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thurman K. Case, Chief Financial Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to my knowledge:
 
 	1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and	
 
 	2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.	
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
This Certification has not been, and shall not be deemed, “filed” with the Securities and Exchange Commission.

Date: May 28, 2014	 		 		 	/s/ Thurman K. Case	
	 		 		 	Thurman K. Case	
	 		 		 	Vice President, Chief Financial Officer and Principal Accounting Officer