Cirrus Logic presents a strongly positive liquidation posture as of December 27, 2025, driven by a liquid, high-quality asset base and an absence of funded debt. Under liquidation-value haircuts, the asset recovery stack is dominated by cash and cash equivalents ($778M at 100%), available-for-sale marketable securities ($304M at fair value, essentially par for investment-grade corporate and Treasury instruments), and accounts receivable ($279M gross, zero allowance, 90-95% recovery = ~$265M). These three categories alone yield approximately $1.35B in recoverable value before touching inventory or fixed assets. Inventory of $189M (at 60% = $113M), PP&E net $148M (at 50-70% = $74-104M), and operating lease ROU assets ($123M, minimal liquidation value) round out the tangible asset pool. Goodwill ($436M) and finite intangibles ($23M) are zeroed under the lens. Total recoverable tangible assets are approximately $1.6-1.65B. On the liability side, current liabilities of $184M (including $69M accounts payable, $50M accrued compensation, $20M operating lease current, $19M other accruals) and noncurrent liabilities of $169M (including $118M noncurrent operating lease, $46M noncurrent income taxes) produce a total obligation stack of approximately $353M at face. The implied liquidation surplus to equity is approximately $1.25-1.3B, well above the MFFAIS-estimated OLV of $945M, reflecting the large cash/securities accumulation in Q3 FY2026. Key changes since the prior filing (Q2 FY2026, period ended September 27, 2025): cash equivalents increased materially (money market funds up from $491M to $722M), inventory declined from $299M to $189M (a $110M draw-down, liquidation value reduction offset by reduced liability to process), and accounts receivable increased from $216M to $279M as the fiscal year third quarter is the peak revenue period. The Capacity Reservation Agreement with GlobalFoundries carries a $33M prepaid wafer balance (current) and $10M unamortized reservation fee, both non-recoverable at full value in liquidation. An IRS transfer pricing dispute asserting approximately $168M additional tax plus $64M in penalties (total face exposure approximately $232M plus interest) is unaccrued and represents a contingent liability not reflected in the balance sheet; if assessed in full, it would materially compress the liquidation surplus. The revolving credit facility ($300M capacity, maturing July 2026) is undrawn, adding no debt liability. No pension obligations. No funded long-term debt. The liability stack is structurally light, and the asset base is materially liquid.
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