Qorvo (QRVO) as of March 28, 2026 presents a materially negative liquidation recovery posture for equity holders. Total reported assets are $5.83B against total liabilities of $2.48B, implying $3.34B in book equity. Under liquidation haircuts, the asset side compresses sharply. Cash of $1.22B recovers at par. Accounts receivable of $383M at 90-95% yields approximately $344-364M. Inventory of $554M at 60% recovers approximately $332M. PP&E gross of $2.49B with accumulated depreciation of $1.78B leaves net book value of $710M; at a 50-70% haircut on net book, recovery is approximately $355-497M. ROU assets of $52M are effectively zeroed. Goodwill of $2.35B and identifiable intangibles net of $122M receive zero recovery under the lens, representing approximately $2.47B of value destruction. Deferred tax assets of $130M (net on balance sheet) are tax attributes realizable only as a going concern and receive zero liquidation value. Computed liquidation asset pool (cash + haircut AR + haircut inventory + haircut PP&E net) approximates $2.25-2.41B before any adjustments for other current assets ($98M prepaid/other at partial recovery) and non-current assets. Against this, liabilities stay at face: current liabilities of $713M (including $243M AP, $248M accrued liabilities, $119M deferred revenue, $121M accrued compensation), long-term debt of $1.55B (4.375% 2029 Notes $850M + 3.375% 2031 Notes $700M), operating lease liabilities of $57M, other long-term liabilities of $219M (includes $44M long-term tax liability for unrecognized tax benefits), and a $91M valuation allowance already flagged on deferred tax assets. Total face-value liability load is approximately $2.48B. MFFAIS CLV of $466M and OLV of $1.40B bracket the range; the negative intangible haircut is the dominant driver of the gap between book equity ($3.34B) and liquidation recovery. Compared to the prior-period Q3 FY2026 10-Q (December 27, 2025), the full-year 10-K shows goodwill impairment of $36.5M (CSG reporting unit, per Note 7 per segment disclosure) and total goodwill/intangible impairment of $82.4M recognized in FY2026 versus $192.6M in FY2025, indicating the pace of intangible erosion is decelerating but remains material. A pending merger with Skyworks Solutions (announced October 27, 2025) introduces $298.7M mutual termination fee exposure and $23.5M of merger-related costs already charged in FY2026; these represent contingent claims not currently on the liability stack but potentially crystallizing. The filing does not separately tag merger termination fee contingency in XBRL.
▼ Community Notes