{"url_path":"/sec/qrvo/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-05-08","source_url":"https://www.sec.gov/Archives/edgar/data/1604778/0001628280-26-032873-index.html","accession_number":"0001628280-26-032873","cik":"0001604778","ticker":"QRVO","issuer_name":"Qorvo, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1604778/0001628280-26-032873-index.html","primary_entity_key":"0001604778","primary_entity_name":"Qorvo, Inc."},"word_count":16981,"has_tables":true,"body_markdown":"ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.\n\nINDEX TO CONSOLIDATED FINANCIAL STATEMENTS\n\nPage\n\n[Consolidated Balance Sheets](#i20702a1530574cc7a4597a4ae0a64f2c_73)\n\n[55](#i20702a1530574cc7a4597a4ae0a64f2c_73)\n\n[Consolidated Statements of Operations](#i20702a1530574cc7a4597a4ae0a64f2c_79)\n\n[56](#i20702a1530574cc7a4597a4ae0a64f2c_79)\n\n[Consolidated Statements of Comprehensive Income (Loss)](#i20702a1530574cc7a4597a4ae0a64f2c_82)\n\n[57](#i20702a1530574cc7a4597a4ae0a64f2c_82)\n\n[Consolidated Statements of S](#i20702a1530574cc7a4597a4ae0a64f2c_85)tockholders' Equity\n\n[58](#i20702a1530574cc7a4597a4ae0a64f2c_85)\n\n[Consolidated Statements of Cash Flows](#i20702a1530574cc7a4597a4ae0a64f2c_88)\n\n[59](#i20702a1530574cc7a4597a4ae0a64f2c_88)\n\n[Notes to Consolidated Financial Statements](#i20702a1530574cc7a4597a4ae0a64f2c_91)\n\n[60](#i20702a1530574cc7a4597a4ae0a64f2c_91)\n\n[Reports of Independent Registered Public Accounting Firm](#i20702a1530574cc7a4597a4ae0a64f2c_151)\nPCAOB ID:42\n[90](#i20702a1530574cc7a4597a4ae0a64f2c_151)\n\n54\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nConsolidated Balance Sheets\n(In thousands, except per share data)\n\nMarch 28, 2026March 29, 2025\n\nASSETS\n\nCurrent assets:\n\nCash and cash equivalents $1,219,015 $1,021,176 \n\nAccounts receivable, net of allowance of $301 and $309 as of March 28, 2026 and March 29, 2025, respectively382,509 386,719 \n\nInventories 553,718 640,992 \n\nPrepaid expenses36,724 32,808 \n\nOther receivables 16,172 11,023 \n\nOther current assets98,176 74,557 \n\nTotal current assets2,306,314 2,167,275 \n\nProperty and equipment, net710,392 801,895 \n\nGoodwill 2,353,226 2,389,741 \n\nIntangible assets, net 121,506 273,478 \n\nLong-term investments16,295 23,433 \n\nOther non-current assets317,857 277,309 \n\nTotal assets$5,825,590 $5,933,131 \n\nLIABILITIES AND STOCKHOLDERS' EQUITY\n\nCurrent liabilities:\n\nAccounts payable$242,870 $260,663 \n\nAccrued liabilities248,160 287,981 \n\nOther current liabilities221,727 234,538 \n\nTotal current liabilities712,757 783,182 \n\nLong-term debt 1,549,154 1,549,215 \n\nOther long-term liabilities219,380 208,422 \n\nTotal liabilities2,481,291 2,540,819 \n\nCommitments and contingent liabilities (Note 11)\n  \n\nStockholders’ equity:\n\nPreferred stock, $.0001 par value; 5,000 shares authorized; no shares issued and outstanding— — \n\nCommon stock and additional paid-in capital, $0.0001 par value; 405,000 shares authorized; 87,741 and 92,920 shares issued and outstanding at March 28, 2026 and March 29, 2025, respectively3,301,450 3,431,308 \n\nAccumulated other comprehensive income (loss)4,061 (5,013)\n\nRetained earnings (accumulated deficit)38,788 (33,983)\n\nTotal stockholders’ equity3,344,299 3,392,312 \n\nTotal liabilities and stockholders’ equity$5,825,590 $5,933,131 \n\nSee accompanying notes.\n\n55\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nConsolidated Statements of Operations\n(In thousands, except per share data)\n\nFiscal Year\n\n202620252024\n\nRevenue$3,678,517 $3,718,971 $3,769,506 \n\nCost of goods sold1,990,415 2,183,382 2,281,011 \n\nGross profit1,688,102 1,535,589 1,488,495 \n\nOperating expenses:\n\nResearch and development726,122 747,709 682,249 \n\nMarketing and selling215,485 231,912 217,273 \n\nGeneral and administrative165,189 171,712 171,867 \n\nGoodwill and intangible asset impairment82,369 192,569 221,414 \n\nOther operating expense87,513 96,160 103,991 \n\nTotal operating expenses1,276,678 1,440,062 1,396,794 \n\nOperating income411,424 95,527 91,701 \n\nInterest expense (73,134)(78,328)(69,245)\n\nOther income, net59,983 48,700 51,104 \n\nIncome before income taxes398,273 65,899 73,560 \n\nIncome tax expense(59,284)(10,284)(143,882)\n\nNet income (loss)$338,989 $55,615 $(70,322)\n\nNet income (loss) per share\n\nBasic$3.66 $0.59 $(0.72)\n\nDiluted$3.62 $0.58 $(0.72)\n\nWeighted-average shares of common stock outstanding:\n\nBasic92,592 94,586 97,557 \n\nDiluted93,547 95,450 97,557 \n\nSee accompanying notes.\n\n56\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nConsolidated Statements of Comprehensive Income (Loss)\n\n(In thousands)\n\nFiscal Year\n\n 202620252024\n\nNet income (loss)$338,989 $55,615 $(70,322)\n\nOther comprehensive income (loss), net of tax:\n\nChange in pension liability366 358 (123)\n\nForeign currency translation adjustment, including intra-entity foreign currency transactions that are of a long-term investment nature8,739 (247)(1,787)\n\nReclassification adjustments, net of tax:\n\nForeign currency gain realized upon liquidation of subsidiary— (26)— \n\nAmortization of pension actuarial gain(31)(1)(12)\n\nOther comprehensive income (loss)9,074 84 (1,922)\n\nTotal comprehensive income (loss)$348,063 $55,699 $(72,244)\n\nSee accompanying notes.\n\n57\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\n\nConsolidated Statements of Stockholders’ Equity\n\n(In thousands)\n\nCommon Stock and\nAdditional Paid-in CapitalAccumulated Other Comprehensive Income (Loss)Retained Earnings\n(Accumulated Deficit)\n\nSharesAmountTotal\n\nBalance, April 1, 202398,649 $3,821,474 $(3,175)$84,495 $3,902,794 \n\nNet loss— — — (70,322)(70,322)\n\nOther comprehensive loss— — (1,922)— (1,922)\n\nExercise of stock options and vesting of restricted stock units, net of shares withheld for employee taxes629 (25,787)— — (25,787)\n\nIssuance of common stock in connection with employee stock purchase plan479 35,045 — — 35,045 \n\nRepurchase of common stock, including transaction costs and excise tax(3,959)(299,204)— (103,771)(402,975)\n\nStock-based compensation— 119,539 — — 119,539 \n\nBalance, March 30, 202495,798 $3,651,067 $(5,097)$(89,598)$3,556,372 \n\nNet income— — — 55,615 55,615 \n\nOther comprehensive income— — 84 — 84 \n\nExercise of stock options and vesting of restricted stock units, net of shares withheld for employee taxes626 (31,214)— — (31,214)\n\nIssuance of common stock in connection with employee stock purchase plan499 34,234 — — 34,234 \n\nRepurchase of common stock, including transaction costs and excise tax(4,003)(358,761)— — (358,761)\n\nStock-based compensation— 135,982 — — 135,982 \n\nBalance, March 29, 202592,920 $3,431,308 $(5,013)$(33,983)$3,392,312 \n\nNet income— — — 338,989 338,989 \n\nOther comprehensive income— — 9,074 — 9,074 \n\nExercise of stock options and vesting of restricted stock units, net of shares withheld for employee taxes769 (32,018)— — (32,018)\n\nIssuance of common stock in connection with employee stock purchase plan656 36,889 — — 36,889 \n\nRepurchase of common stock, including transaction costs and excise tax(6,604)(270,517)— (266,218)(536,735)\n\nStock-based compensation— 135,788 — — 135,788 \n\nBalance, March 28, 202687,741 $3,301,450 $4,061 $38,788 $3,344,299 \n\nSee accompanying notes.\n\n58\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\n\nConsolidated Statements of Cash Flows\n\n(In thousands)\n\nFiscal Year\n\n202620252024\n\nCash flows from operating activities:\n\nNet income (loss)$338,989 $55,615 $(70,322)\n\nAdjustments to reconcile net income (loss) to net cash provided by operating activities:\n\nDepreciation151,338 163,222 193,035 \n\nIntangible assets amortization 111,051 133,614 127,898 \n\nDeferred income taxes (39,384)(84,737)19,405 \n\nGoodwill and intangible asset impairment82,369 192,569 221,414 \n\nStock-based compensation expense136,070 136,346 120,834 \n\nOther, net(13,421)31,966 78,521 \n\nChanges in operating assets and liabilities:\n\nAccounts receivable, net3,154 26,807 (105,776)\n\nInventories86,616 18,188 92,909 \n\nPrepaid expenses and other assets(18,510)(24,348)(23,174)\n\nAccounts payable(4,886)7,178 89,139 \n\nAccrued liabilities(45,325)(45,777)130,979 \n\nIncome taxes payable and receivable942 (4,103)8,681 \n\nOther liabilities19,628 15,662 (50,354)\n\nNet cash provided by operating activities808,631 622,202 833,189 \n\nCash flows from investing activities:\n\nPurchases of property and equipment(129,070)(137,600)(127,230)\n\nProceeds from sales of property and equipment51,711 7,059 49,548 \n\nPurchases of businesses, net of cash acquired — (791)(82,974)\n\nProceeds from sales of businesses21,472 173,117 20,000 \n\nOther investing activities12,287 (5,230)4,186 \n\nNet cash (used in) provided by investing activities(43,600)36,555 (136,470)\n\nCash flows from financing activities:\n\nPayment and repurchase of debt— (439,124)(58,309)\n\nNet (payments) proceeds from purchase and sale of inventories subject to repurchase(11,711)130,204 — \n\nRepurchase of common stock, including transaction costs(532,552)(356,336)(400,054)\n\nProceeds from the issuance of common stock 35,492 35,741 36,918 \n\nTax withholding paid on behalf of employees for restricted stock units(32,018)(31,250)(27,111)\n\nOther financing activities(25,737)(23,597)(11,018)\n\nNet cash used in financing activities(566,526)(684,362)(459,574)\n\nEffect of exchange rate changes on cash, cash equivalents and restricted cash(666)(2,477)3,170 \n\nNet increase (decrease) in cash, cash equivalents and restricted cash197,839 (28,082)240,315 \n\nCash, cash equivalents and restricted cash at the beginning of the period1,021,176 1,049,258 808,943 \n\nCash, cash equivalents and restricted cash at the end of the period$1,219,015 $1,021,176 $1,049,258 \n\nReconciliation of cash, cash equivalents and restricted cash:\n\nCash and cash equivalents$1,219,015 $1,021,176 $1,029,258 \n\nRestricted cash included in \"Other current assets\"— — 20,000 \n\nTotal cash, cash equivalents and restricted cash$1,219,015 $1,021,176 $1,049,258 \n\nSupplemental disclosure of cash flow information:\n\nCash paid during the year for interest, net of amounts capitalized$73,169 $76,336 $55,270 \n\nCapital expenditures included in liabilities$24,740 $65,221 $70,127 \n\nSee accompanying notes.\n\n59\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\n\nNotes to Consolidated Financial Statements\n\nMarch 28, 2026\n\n1. THE COMPANY AND ITS SIGNIFICANT ACCOUNTING POLICIES\n\nQorvo, Inc. (the \"Company\" or \"Qorvo\") is a global leader in the development and commercialization of technologies and products for wireless, wired and power markets. Qorvo was formed as the result of a business combination (the \"Business Combination\") of RF Micro Devices, Inc. and TriQuint Semiconductor, Inc. (\"TriQuint\"), which closed on January 1, 2015.\n\nThe Company's design expertise and manufacturing capabilities span multiple process technologies. As of March 28, 2026, the Company's primary wafer fabrication facilities are located in Oregon and Texas, and its primary assembly and test facilities are located in Germany and Texas. The Company also sources products and materials through external suppliers. The Company operates design, sales and other manufacturing facilities throughout Asia, Europe and North America.\n\nThe Company is organized into three operating and reportable segments that align technologies and applications with customers and end markets: High Performance Analog (\"HPA\"), Connectivity and Sensors Group (\"CSG\") and Advanced Cellular Group (\"ACG\").\n\nPrinciples of Consolidation and Basis of Presentation\n\nThe consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the fiscal 2026 presentation.\n\nAccounting Periods\n\nThe Company uses a 52- or 53-week fiscal year ending on the Saturday closest to March 31 of each year. Approximately every five to six years, the Company reports a 53-week fiscal year to align with the foregoing policy. The most recent three fiscal years ended on March 28, 2026, March 29, 2025 and March 30, 2024. Fiscal years 2026, 2025, and 2024 were 52-week years, with each fiscal quarter consisting of 13 weeks.\n\nUse of Estimates\n\nThe preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses and the disclosure of contingent liabilities. The Company evaluates its estimates on an ongoing basis, including those related to revenue recognition, product warranty obligations, valuation of inventories, tax-related contingencies, valuation of long-lived and intangible assets, other contingencies and litigation, among others. The Company generally bases its estimates on historical experience, expected future conditions and third-party evaluations. Actual results could differ materially from these estimates, and such differences could affect the results of operations reported in future periods.\n\nCash and Cash Equivalents\n\nCash and cash equivalents consist of demand deposit accounts, money market funds and other short-term, highly liquid investments with original maturities of three months or less when purchased.\n\nInvestments\n\nThe Company has investments in limited partnerships which are accounted for using the equity method. These equity method investments are classified as \"Long-term investments\" in the Consolidated Balance Sheets. The Company records its share of the financial results of the limited partnerships in \"Other income, net\" in the Company's Consolidated Statements of Operations.\n\n60\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nThe Company also invests in other privately held entities. These investments are measured using the most appropriate valuation methodology based on the specific characteristics of the security and are classified as \"Long-term investments\" in the Consolidated Balance Sheets.\n\nThe Company assesses its investments for impairment on a quarterly basis and considers both qualitative and quantitative factors that may have a significant impact on the investee's fair value. Qualitative factors considered include the investee's financial condition and business outlook, market for technology and other relevant events and factors affecting the investee. Investments are impaired when their fair value is less than their carrying value.\n\nFair Value Measurement\n\nThe Company measures and reports certain financial assets and liabilities on a recurring basis. Fair value is 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 categorizes its financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is described as follows:\n\n•Level 1 - includes instruments for which inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.\n\n•Level 2 - includes instruments for which the inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly.\n\n•Level 3 - includes instruments for which the valuations are based on inputs that are unobservable and significant to the overall fair value measurement. These inputs are supported by little or no market activity and reflect the use of significant management judgment.\n\nThe Company also holds assets whose fair value is measured and recorded on a nonrecurring basis. These assets include equity method investments, equity investments without a readily determinable fair value and certain non-financial assets, such as intangible assets and property and equipment. Intangible assets, including goodwill, are adjusted to fair value after initial recognition only if an impairment charge is recognized, which is generally determined using a discounted cash flow model based on significant unobservable inputs (Level 3).\n\nInvested funds under the Company's non-qualified deferred compensation plan are held in a rabbi trust and consist of mutual funds. The fair value of the mutual funds is calculated using the net asset value per share determined by quoted active market prices of the underlying investments and are considered Level 1 in the fair value hierarchy.\n\nThe carrying values of cash, cash equivalents and restricted cash, accounts receivable, accounts payable and other accrued liabilities approximate fair values because of the relatively short-term maturities of these instruments.\n\nInventories\n\nInventories are stated at the lower of cost or net realizable value (cost is based on standard cost, which approximates actual average cost). Cost includes labor, materials and manufacturing overhead related to the purchase and production of inventories. In accordance with Accounting Standards Codification (\"ASC\") 330, \"Inventory\" (\"ASC 330\"), abnormal manufacturing costs are charged to \"Cost of goods sold\" in the Consolidated Statements of Operations in the period incurred rather than as a portion of inventory cost.\n\nThe Company’s business is subject to the risk of technological and design changes. The Company evaluates inventory levels quarterly against demand forecasts on a material or product family basis to evaluate its overall inventory risk. Reserves are adjusted to reflect inventory values in excess of demand forecasts and management's analysis and assessment of overall inventory risk. Product-specific facts and circumstances reviewed in the inventory valuation process include a review of the customer base, market conditions and customer acceptance of the Company's products and technologies, as well as an assessment of the selling price in relation to the product cost. In the event the Company sells inventory that was previously covered by a specific inventory reserve, the sale\n\n61\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nis recorded at the actual selling price and the cost of goods sold for this inventory is recorded at its inventory cost, net of the reserve.\n\nIn fiscal 2025, the Company completed the sale of its assembly and test operations in Beijing and Dezhou to Luxshare Precision Industry Co., Ltd. (\"Luxshare\"). Pursuant to a supply agreement with Luxshare, the Company is obligated to repurchase inventory that it sold to Luxshare subsequent to the performance of assembly and test services by Luxshare. Although legal title of the inventory resides with Luxshare, in accordance with ASC 606 \"Revenue from Contracts with Customers\" (\"ASC 606\"), the Company will continue to recognize the inventory on its balance sheet and record a financial liability (which is included in \"Other current liabilities\" in the Consolidated Balance Sheets) equal to the cash received by the Company attributable to the inventory subject to repurchase. Changes in the amount outstanding under the supply agreement related to inventory subject to repurchase are included in cash flows from financing activities in the Consolidated Statements of Cash Flows. In accordance with ASC 330, the Company capitalizes costs incurred by Luxshare to enhance the inventory by increasing its carrying value on the Company’s balance sheet and recognizing a corresponding liability. Cash paid for inventory enhancements is included in cash flows from operating activities in the Consolidated Statements of Cash Flows. Financing costs related to inventory subject to repurchase are included in \"Interest expense\" in the Consolidated Statements of Operations.\n\nProduct Warranty\n\nThe Company generally sells products with a limited warranty against defects in materials and workmanship and non-conformance to applicable specifications. The majority of the Company’s product warranty claims are settled through the return of the defective product and the shipment of replacement product. Accruals are estimated based upon both historical experience as well as specifically identified claims. If there is a significant increase in the rate of customer claims compared with the Company's historical experience or if the Company's estimates of probable losses relating to specifically identified warranty exposures require revision, the Company may record a charge against future cost of sales. Product warranty accruals and related expenses were immaterial for the periods presented.\n\nProperty and Equipment\n\nProperty and equipment are stated at cost, less accumulated depreciation. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the assets, ranging from one to 39 years. The Company capitalizes interest on borrowings related to eligible capital expenditures. Capitalized interest is added to the cost of qualified assets and depreciated together with the asset cost. The Company’s assets acquired under leases and leasehold improvements are amortized over the lesser of the asset life or lease term (which is reasonably assured) and included in depreciation. The Company records capital-related government grants earned as a reduction to property and equipment and depreciates the net asset over the estimated useful lives of the associated assets.\n\nThe Company periodically evaluates the period over which it expects to recover the economic value of the Company’s property and equipment, considering factors such as changes in machinery and equipment technology, the ability to re-use equipment across generations of process technology and historical usage trends. If the Company determines that the useful lives of its assets are shorter or longer than originally estimated, the rate of depreciation is adjusted to reflect the revised useful lives of the assets.\n\nThe Company assesses property and equipment for impairment when events or changes in circumstances indicate that the carrying amount of its assets may not be recoverable. Factors that are considered in deciding when to perform an impairment review include an adverse change in the use of the Company’s assets or an expectation that the assets will be sold or otherwise disposed. The Company assesses the recoverability of the assets held and used by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining estimated useful lives against their respective carrying amounts. Assets identified as \"held for sale\" are recorded at the lesser of their carrying value or their fair market value less costs to sell.  Impairment of those assets, if any, is based on the excess of the carrying amount over the fair value less costs to sell.\n\n62\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nLeases\n\nThe Company determines that a contract contains a lease at lease inception if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In evaluating whether the right to control an identified asset exists, the Company assesses whether it has the right to direct the use of the identified asset and obtain substantially all of the economic benefit from the use of the identified asset.\n\nRight-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate in determining the present value of lease payments considering the term of the lease, which is derived from information available at the lease commencement date. The lease term includes options to extend or terminate the lease when it is reasonably certain such options will be exercised. To the extent that the Company's agreements have variable lease payments, the Company includes variable lease payments that depend on an index or a rate and excludes those that depend on facts or circumstances occurring after the commencement date, other than the passage of time. The Company elected the practical expedient not to separate lease and non-lease components for substantially all of its classes of leases and to account for the combined lease and non-lease components as a single lease component. In addition, the Company made an accounting policy election to exclude from the balance sheet leases with an initial term of 12 months or less. The Company assesses right-of-use assets for impairment in accordance with its long-lived asset impairment policy.\n\nBusiness Acquisitions\n\nThe Company allocates the fair value of the purchase price to the assets acquired and liabilities assumed based on their estimated fair value. The excess of the purchase price over the fair values of the identifiable assets and liabilities is recorded to goodwill. Goodwill is assigned to the Company's reporting unit that is expected to benefit from the synergies of the business combination.\n\nA number of assumptions, estimates and judgments are used in determining the fair value of acquired assets and liabilities, particularly with respect to the intangible assets acquired. The valuation of intangible assets requires the Company to use valuation techniques such as the income approach. The income approach includes management’s estimation of future cash flows (including expected revenue growth rates and profitability), the underlying product or technology life cycles and the discount rates applied to future cash flows.\n\nJudgment is also required in estimating the fair values of deferred tax assets and liabilities, uncertain tax positions and tax-related valuation allowances, which are initially estimated as of the acquisition date, as well as inventory, property and equipment, pre-existing liabilities or legal claims, deferred revenue and contingent consideration, each as may be applicable.\n\nWhile the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, the Company’s estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. After the measurement period, any purchase price adjustments are recognized in the Consolidated Statements of Operations.\n\nGoodwill Impairment Testing\n\nIn accordance with ASC 350, \"Intangibles - Goodwill and Other\" (\"ASC 350\"), goodwill is not amortized, but rather is reviewed for impairment at the reporting unit level on the first day of the Company's fourth quarter of each fiscal year, or when there is evidence that events or changes in circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill.\n\nUnder ASC 350, the Company has the option to first assess qualitatively whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. In performing qualitative assessments, the Company considers the following factors which could trigger a goodwill impairment review: (i) significant underperformance relative to historical or projected future operating results; (ii) significant changes in the\n\n63\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nmanner or use of the acquired assets or the strategy for the Company's overall business; (iii) significant negative industry or economic trends; (iv) a significant decline in the Company's stock price for a sustained period; and (v) a significant change in the Company's market capitalization relative to its net book value.\n\nIf qualitative assessments conclude that it is more likely than not that the fair value of any reporting unit is less than its carrying value, quantitative assessments are performed on the applicable reporting units. The quantitative assessments may consider both the income and market approaches to estimate the fair value of a reporting unit. The income approach is based on the discounted cash flow method that uses estimates of the reporting unit's revenue growth rates and operating margins as part of the Company's long-term planning process, taking into consideration historical data and industry and market conditions. The discount rate used to determine the present value of future cash flows is based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the ability to execute on the projected cash flows. The market approach estimates fair value based on market multiples of revenue and earnings derived from comparable publicly traded companies with similar operating and investment characteristics.\n\nIdentified Intangible Assets\n\nThe Company amortizes definite-lived intangible assets (including developed technology, customer relationships, technology licenses and trade names) on a straight-line basis over their estimated useful lives. In-process research and development (\"IPRD\") assets represent the fair value of incomplete R&D projects that had not reached technological feasibility as of the date of the acquisition and are initially not subject to amortization. Upon completion of development, IPRD assets are transferred to developed technology and are amortized over their useful lives. The asset balances relating to abandoned projects are impaired and expensed to R&D.\n\nThe Company evaluates definite-lived intangible assets for impairment in accordance with ASC 360-10-35, \"Impairment or Disposal of Long-Lived Assets\" to determine whether facts and circumstances (including external factors such as industry and economic trends and internal factors such as changes in the Company’s business strategy and forecasts) indicate that the carrying amount of the assets may not be recoverable. If such facts and circumstances exist, the Company assesses the recoverability of identified intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amounts over the fair value of those assets and are recognized in the period in which the impairment determination was made.\n\nRevenue Recognition\n\nThe Company generates revenue primarily from the sale of semiconductor products, either directly to a customer or to a distributor, or at completion of a consignment process. Revenue is recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. A majority of the Company's revenue is recognized at a point in time, either on shipment or delivery of the product, depending on individual customer terms and conditions. Revenue from sales to the Company’s distributors is recognized upon shipment of the product to the distributors (sell-in). Revenue is recognized from the Company’s consignment programs at a point in time when the products are pulled from consignment inventory by the customer. Revenue recognized for products and services over time is less than 3% of overall revenue. The Company applies a five-step approach, as defined in ASC 606, in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the corresponding performance obligation is satisfied.\n\nSales agreements are in place with certain customers and contain terms and conditions with respect to payment, delivery, warranty and supply, but typically do not require minimum purchase commitments. In the absence of a sales agreement, the Company’s standard terms and conditions apply. The Company considers a customer's purchase order, which is governed by a sales agreement or the Company’s standard terms and conditions, to be the contract with the customer.\n\n64\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nThe Company’s pricing terms are negotiated independently on a stand-alone basis. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. Variable consideration in the form of rebate programs is offered to certain customers, including distributors, and represents approximately 7% of net revenue in fiscal 2026. The Company determines variable consideration by estimating the most likely amount of consideration it expects to receive from the customer. The Company's terms and conditions do not give its customers a right of return associated with the original sale of its products. However, the Company may authorize sales returns under certain circumstances, which include courtesy returns and like-kind exchanges. The Company reduces revenue and records reserves for product returns and allowances, rebate programs and scrap allowance based on historical experience or specific identification depending on the contractual terms of the arrangement.\n\nThe Company’s accounts receivable balance is from contracts with customers and represents the Company’s unconditional right to receive consideration from its customers. Payments are due upon completion of the performance obligation and subsequent invoicing. Substantially all payments are collected within the Company’s standard terms, which do not include any financing components. There have been no material impairment losses on accounts receivable for fiscal years 2026, 2025 or 2024. Contract assets and contract liabilities recorded in the Consolidated Balance Sheets were immaterial as of March 28, 2026 and March 29, 2025.\n\nThe Company invoices customers upon shipment and recognizes revenue in accordance with delivery terms. As of March 28, 2026, the Company had $102.9 million in remaining unsatisfied performance obligations with an original duration greater than one year, of which the majority is expected to be recognized as income over the next 12 months.\n\nThe Company includes shipping charges billed to customers in \"Revenue\" and includes the related shipping costs in \"Cost of goods sold\" in the Consolidated Statements of Operations. Taxes assessed by government authorities on revenue-producing transactions, including tariffs, value-added taxes and excise taxes, are excluded from revenue in the Consolidated Statements of Operations.\n\nThe Company incurs commission expense that is incremental to obtaining contracts with customers. Sales commissions (which are recorded in the \"Marketing and selling\" expense line item in the Consolidated Statements of Operations) are expensed when incurred because such commissions are not owed until the performance obligation is satisfied, which coincides with the end of the contract term, and therefore, no remaining period exists over which to amortize the commissions.\n\nResearch and Development\n\nThe Company charges all research and development (\"R&D\") costs to expense as incurred.\n\nIncome Taxes\n\nThe Company accounts for income taxes under the liability method, which requires recognition of deferred tax assets and liabilities for the temporary differences between the financial reporting and tax basis of assets and liabilities and for tax carryforwards. Deferred tax assets and liabilities for each tax jurisdiction are measured using the enacted statutory tax rates in effect for the years in which the differences are expected to reverse. A valuation allowance is provided against deferred tax assets to the extent the Company determines it is more likely than not that some portion or all of its deferred tax assets will not be realized.\n\nA more-likely-than-not recognition threshold is required to be met before the Company recognizes the benefit of an income tax position in its financial statements. The Company’s policy is to recognize accrued interest and penalties, if incurred, on any unrecognized tax benefits as a component of income tax expense.\n\nThe Global Intangible Low-Taxed Income (“GILTI”) and Foreign-Derived Intangible Income (“FDII”) provisions became effective for the Company in fiscal 2019. The Company has elected to treat taxes related to GILTI inclusions as a period cost and therefore does not recognize deferred tax assets or liabilities for basis differences expected to give rise to future GILTI inclusions. The tax effects of FDII are recognized in the period in which the related income is earned.\n\n65\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nIn accordance with ASC 740, \"Income Taxes,\" the Company recognizes a deferred tax liability for income taxes on unremitted foreign earnings of foreign subsidiaries which the Company intends to repatriate. If the Company asserts that such earnings will be permanently reinvested, a deferred tax liability is not recognized related to such earnings. It is the Company’s intent to repatriate all previously taxed earnings of foreign subsidiaries from outside the U.S.\n\nStock-Based Compensation\n\nIn accordance with ASC 718, \"Compensation – Stock Compensation\" (\"ASC 718\"), stock-based compensation cost is measured at the grant date, based on the estimated fair value of the awards. The fair value of employee stock purchase plan awards is estimated on the date of grant using a Black-Scholes pricing model based on the historical volatility, dividend yield, term and risk-free interest rate. The fair value per unit of each restricted stock unit is determined on the grant date using market price and is recognized as expense over the requisite service period based on awards ultimately expected to vest.\n\nForeign Currency Translation\n\nThe financial statements of foreign subsidiaries have been translated into U.S. dollars in accordance with ASC 830, \"Foreign Currency Matters.\"  The functional currency for most of the Company’s international operations is the U.S. dollar.  The functional currency for the remainder of the Company’s foreign subsidiaries is the local currency. Assets and liabilities denominated in foreign currencies are translated using the exchange rates on the balance sheet dates.  Revenue and expenses are translated using the weighted-average exchange rates throughout the year. Translation adjustments are a component of \"Accumulated other comprehensive income (loss)\" within \"Stockholders’ equity\" in the Consolidated Balance Sheets.  Foreign currency transaction gains or losses (transactions denominated in a currency other than the functional currency) are reported in \"Other income, net\" in the Consolidated Statements of Operations.\n\nSupplemental Financial Information\n\nThe \"Accrued liabilities\" balance as of March 28, 2026 includes accrued compensation and benefits of $120.8 million. The \"Accrued liabilities\" balance as of March 29, 2025 includes accrued compensation and benefits of $89.7 million and accrued rebates of $77.9 million.\n\nThe \"Other current liabilities\" balance as of March 28, 2026 includes a liability of $118.5 million for inventory subject to repurchase in connection with a supply agreement and income taxes payable of $64.4 million. The \"Other current liabilities\" balance as of March 29, 2025 includes a liability of $130.2 million for inventory subject to repurchase in connection with a supply agreement and income taxes payable of $54.7 million.\n\nDetails of \"Other operating expense\" are as follows (in thousands):\n\nFiscal 2026\n\nFiscal 2025\n\nFiscal 2024\n\nRestructuring-related charges (1)\n$36,905 $60,345 $70,365 \n\nMerger-related costs (2)\n23,475 — — \n\nBusiness transformation costs860 14,933 11,863 \n\nDeferred compensation expense9,266 2,815 9,879 \n\nStart-up costs14,983 467 — \n\nOther, net (3)\n2,024 17,600 11,884 \n\nTotal$87,513 $96,160 $103,991 \n\n(1) Refer to Note 12 for additional information.\n\n(2) Refer to Note 2 for additional information.\n\n(3) Includes acquisition and integration-related costs and certain settlements, gains, losses and other charges.\n\nInterest income of $43.0 million, $47.1 million and $38.3 million for fiscal years 2026, 2025 and 2024, respectively, is included in \"Other income, net.\"\n\n66\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nRecent Accounting Pronouncements\n\nIn December 2023, the FASB issued Accounting Standard Update (\"ASU\") 2023-09, “Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires enhanced disclosures related to income taxes. The amendments in ASU 2023-09 require a public entity to disclose specified additional information in its income tax rate reconciliation and to provide additional information for reconciling items that meet a quantitative threshold. The amendments also require the Company to disaggregate its taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. The Company adopted this standard for the year ended March 28, 2026 retrospectively for all periods presented in the financial statements. Refer to Note 13 for additional information.\n\n2. PROPOSED MERGERS\n\nOn October 27, 2025, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among Skyworks Solutions, Inc., a Delaware corporation (“Skyworks”), the Company, Comet Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of Skyworks (“Merger Sub I”), and Comet Acquisition II, LLC, a Delaware limited liability company and a wholly-owned subsidiary of Skyworks (“Merger Sub II”). Pursuant to the Merger Agreement, and subject to the satisfaction or waiver of the conditions specified therein, (i) Merger Sub I will merge with and into the Company (the “First Merger”), with the Company surviving the First Merger as a wholly-owned subsidiary of Skyworks (the “Surviving Corporation”), and (ii) immediately following the First Merger, and as the second step in a single integrated transaction with the First Merger, the Surviving Corporation will merge with and into Merger Sub II (the “Second Merger,” and together with the First Merger, the “Mergers”), with Merger Sub II continuing as the surviving entity in the Second Merger and a wholly-owned subsidiary of Skyworks.\n\nAt the effective time of the First Merger (the “Effective Time”), each share of the Company’s common stock, par value $0.0001 per share (“Qorvo Common Stock”), outstanding immediately prior to the Effective Time (subject to certain exceptions, including shares of Qorvo Common Stock owned by stockholders of the Company who have not voted in favor of the adoption of the Merger Agreement and have properly exercised appraisal rights in accordance with Section 262 of the General Corporation Law of the State of Delaware) will be converted into the right to receive (i) 0.960 (the “Exchange Ratio”) shares of Skyworks common stock, without interest, and (ii) $32.50 in cash, without interest, subject to applicable withholding taxes. No fractional shares of Skyworks common stock will be issued in the Mergers, and the Company’s stockholders will receive cash in lieu of any fractional shares, as specified in the Merger Agreement.\n\nIf the Mergers are consummated, Qorvo Common Stock will be delisted from the Nasdaq Stock Market LLC and deregistered under the Securities Exchange Act of 1934, as amended. The Exchange Ratio is expected to result in the Company’s equityholders and Skyworks equityholders owning approximately 37% and 63%, respectively, of the combined company on a pro forma basis following the closing of the transactions contemplated by the Merger Agreement.\n\nThe Merger Agreement contains certain termination rights for each of Skyworks and Qorvo. Under specified circumstances, each of Qorvo and Skyworks will be required to pay the other party a termination fee of $298.7 million, as more fully described in the Merger Agreement. Alternatively, under certain specified circumstances, including termination following an injunction arising in connection with certain antitrust or foreign investment laws, or failure to receive certain required regulatory approvals of specified governmental authorities, Skyworks will be required to pay Qorvo a termination fee of $100.0 million, as more fully described in the Merger Agreement.\n\nOn February 5, 2026, Qorvo and Skyworks each received a Request for Additional Information and Documentary Material (the “Second Request”) from the U.S. Federal Trade Commission (“FTC”) in connection with the transaction. The Second Request was issued under notification requirements of the HSR Act. The effect of the Second Request is to extend the waiting period imposed by the HSR Act until 30 days after Qorvo and Skyworks have each substantially complied with the Second Request it received, unless the waiting period is voluntarily extended by the parties or terminated sooner by the FTC.\n\n67\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nThe stockholders of both Qorvo and Skyworks approved the Merger Agreement at each company's special meeting of stockholders on February 11, 2026. Consummation of the Mergers is subject to required regulatory approvals, including certain antitrust and foreign investment approvals, and the satisfaction of other customary closing conditions. The Company currently anticipates the transaction will be completed early in calendar year 2027.\n\nThe foregoing summary of the Merger Agreement and the transactions contemplated thereby does not purport to be complete and is subject to, and qualified in its entirety by, the Merger Agreement, which was filed as Exhibit 2.1 to the Company's Current Report on Form 8-K filed on October 28, 2025.\n\nMerger-related costs for fiscal 2026 were approximately $23.5 million, primarily related to legal and professional fees.\n\n3. CONCENTRATIONS OF CREDIT RISK\n\nThe Company’s principal financial instrument subject to potential concentration of credit risk is accounts receivable, which is unsecured. The Company provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of accounts receivable. The Company's trade receivables are evaluated on a collective (pool) basis and aggregated on the basis of similar risk characteristics, adjusting for broad-based economic indicators as well as customer-specific factors. The Company has adopted credit policies and standards intended to accommodate industry growth and inherent risk and believes that credit risks are moderated by the financial stability of its major customers, conservative payment terms and the Company’s strict credit policies.\n\nThe Company provides products to its largest end customer, Apple Inc., through sales to multiple contract manufacturers, which in the aggregate accounted for approximately 50%, 47% and 46% of total revenue in fiscal years 2026, 2025 and 2024, respectively. Samsung Electronics Co., Ltd., accounted for approximately 10%, 10% and 12% of total revenue in fiscal years 2026, 2025 and 2024, respectively. These customers primarily purchase radio frequency (\"RF\") solutions for a variety of mobile devices from the Company's ACG segment.\n\nThe Company's three largest accounts receivable balances comprised approximately 58% and 64% of aggregate gross accounts receivable as of March 28, 2026 and March 29, 2025, respectively.\n\n4. INVENTORIES\n\nThe components of inventories, net of reserves, are as follows (in thousands):\n\nMarch 28, 2026March 29, 2025\n\nRaw materials$162,588 $184,695 \n\nWork in process265,250 322,814 \n\nFinished goods125,880 133,483 \n\nTotal inventories$553,718 $640,992 \n\n5. BUSINESS DIVESTITURES\n\nMEMS-based sensing solutions business\n\nIn fiscal 2025, the Company determined that there was a more-likely-than-not expectation of divesting its microelectromechanical system (“MEMS”)-based sensing solutions business and impairment testing was triggered, resulting in impairment charges to goodwill and intangible assets (developed technology) of approximately $47.8 million and $31.7 million, respectively.\n\nIn the third quarter of fiscal 2026, the Company sold its MEMS-based sensing solutions business for net cash proceeds of approximately $21.5 million, resulting in a gain of $19.2 million, which is recorded in \"Other operating expense\" in the Consolidated Statement of Operations.\n\n68\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nSilicon carbide power device business\n\nIn the second quarter of fiscal 2025, the Company determined that there was a more-likely-than-not expectation of divesting its silicon carbide (\"SiC\") power device business (the “SiC Disposal Group”) and impairment testing was triggered, resulting in inventory write-downs of $13.7 million (for inventory expected to be disposed of) and impairments of goodwill and intangible assets (primarily developed technology) of $96.5 million and $16.6 million, respectively.\n\nIn the fourth quarter of fiscal 2025, the Company sold the SiC Disposal Group, which had a carrying value of $90.6 million, for net cash proceeds of approximately $117.5 million, resulting in a gain of $26.9 million, which is recorded in \"Other operating expense\" in the fiscal 2025 Consolidated Statement of Operations.\n\nAssembly and test operations in Beijing and Dezhou\n\nIn fiscal 2024, the Company entered into a definitive agreement with Luxshare to divest its assembly and test operations in Beijing and Dezhou, China (the \"China Disposal Group\"). The China Disposal Group met the criteria to be classified as held for sale in accordance with ASC 360, \"Property, Plant and Equipment,\" in the fourth quarter of fiscal 2024. As the carrying value of the China Disposal Group exceeded the fair value less costs to sell, a loss of $35.3 million (which included a goodwill write-off of $22.0 million) was recorded in \"Other operating expense\" in the fiscal 2024 Consolidated Statement of Operations.\n\nThe Company completed the sale of the China Disposal Group in the first quarter of fiscal 2025 for a purchase price of approximately $234.0 million, resulting in an incremental loss of $6.0 million (which included an additional goodwill write-off of $1.0 million) recorded in \"Other operating expense\" in the fiscal 2025 Consolidated Statement of Operations. The consideration received was for the cash on hand of the disposed business of $29.0 million, the assets and liabilities of the China Disposal Group of $76.0 million and inventory of $129.0 million. The cash received for inventory related to inventory that the Company sold to Luxshare and is obligated to repurchase at a future date subsequent to the performance of assembly and test services by Luxshare pursuant to a supply agreement.\n\nThe cash received from the sale of the assets and liabilities of the China Disposal Group of $76.0 million was included in cash flows from investing activities in the fiscal 2025 Consolidated Statement of Cash Flows, net of a $20.0 million deposit received in fiscal 2024 upon execution of the definitive agreement (which was included in investing activities in the fiscal 2024 Consolidated Statement of Cash Flows). The net proceeds from the sale of inventory subject to repurchase by the Company is included in cash flows from financing activities in the Consolidated Statement of Cash Flows.\n\n6. PROPERTY & EQUIPMENT\n\nThe components of property and equipment are as follows (in thousands):\n\nMarch 28, 2026March 29, 2025\n\nLand$20,606 $23,039 \n\nBuilding and leasehold improvements338,857 366,061 \n\nMachinery and equipment2,027,411 2,159,937 \n\nConstruction in progress104,687 98,223 \n\nTotal property and equipment, gross2,491,561 2,647,260 \n\nLess accumulated depreciation(1,781,169)(1,845,365)\n\nTotal property and equipment, net$710,392 $801,895 \n\n69\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\n7. GOODWILL AND INTANGIBLE ASSETS\n\nThe changes in the carrying amount of goodwill for fiscal 2026 are as follows (in thousands):\n\nHPACSGACGTotal\n\nBalance as of March 29, 2025 (1)\n$421,464 $252,317 $1,715,960 $2,389,741 \n\nGoodwill impairment— (36,515)— (36,515)\n\nBalance as of March 28, 2026 (1)\n$421,464 $215,802 $1,715,960 $2,353,226 \n\n(1) The Company’s goodwill balance is presented net of accumulated impairment losses totaling $1,084.1 million and $1,047.6 million as of March 28, 2026 and March 29, 2025, respectively.\n\nThe Company operates under three segments with a total of five reporting units as of March 28, 2026.\n\nIn the second quarter of fiscal 2026, the Company consolidated its CSG organizational structure and realigned reporting units within CSG in order to align resources, improve efficiency and narrow its focus on a higher margin portfolio. The Company performed a goodwill impairment assessment for CSG's reporting units immediately before and after the realignment and concluded that goodwill was not impaired.\n\nIn March 2026, due to slower than expected market adoption for certain technologies, the Company revised its forecasts for a reporting unit within the CSG segment and determined it was more likely than not that the fair value of the reporting unit was below its carrying amount, and impairment testing was triggered. The impairment testing resulted in impairments of goodwill and intangible assets (developed technology) of approximately $36.5 million and $45.9 million, respectively. The estimated fair values of the intangible assets and the reporting unit were determined using the income approach, and the significant inputs related to valuing these assets are classified as Level 3 in the fair value hierarchy.\n\nIn fiscal 2025, the Company recorded goodwill and intangible asset impairment charges of approximately $96.5 million and $16.6 million, respectively, as a result of the expected divestiture of its SiC power device business, which constituted a reporting unit within the HPA segment. Additionally, the Company recorded goodwill and intangible asset impairment charges of approximately $47.8 million and $31.7 million, respectively, as a result of the expected divestiture of its MEMS-based sensing solutions business, which constituted a reporting unit within the CSG segment. In fiscal 2024, the Company recorded goodwill impairment charges totaling $221.4 million for a reporting unit within the CSG segment as a result of the Company's interim goodwill impairment assessments. These impairment charges are recorded in \"Goodwill and intangible asset impairment\" in the Consolidated Statements of Operations.\n\nThe following summarizes information regarding the gross carrying amounts and accumulated amortization of intangible assets (in thousands):\n\n March 28, 2026March 29, 2025\n\n Gross\nCarrying\nAmountAccumulated\nAmortizationGross\nCarrying\nAmountAccumulated\nAmortization\n\nDeveloped technology $330,939 $239,563 $627,038 $427,366 \n\nCustomer relationships 39,900 29,588 80,800 62,111 \n\nTechnology licenses 75,475 55,861 74,976 29,876 \n\nTrade names 700 496 700 262 \n\nIPRD — — 9,579 N/A\n\nTotal (1)\n$447,014 $325,508 $793,093 $519,615 \n\n(1) Amounts include the impact of foreign currency translation.\n\nAt the beginning of each fiscal year, the Company removes the gross asset and accumulated amortization amounts of intangible assets that have reached the end of their useful lives and have been fully amortized. Useful lives are estimated based on the expected economic benefit to be derived from the intangible assets. The gross carrying amounts and accumulated amortization of fully impaired intangible assets are written off at the time of impairment.\n\n70\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nTotal intangible assets amortization expense was $111.1 million, $133.6 million and $127.9 million in fiscal years 2026, 2025 and 2024, respectively.\n\nThe following table provides the Company's estimated amortization expense for intangible assets for the periods indicated (in thousands):\n\nFiscal Year Estimated\nAmortization\nExpense\n\n2027$53,000 \n\n202833,000 \n\n202921,000 \n\n20309,000 \n\n20316,000 \n\n8. LEASES\n\nThe Company leases certain of its corporate, manufacturing and other facilities from multiple third-party real estate developers. The Company also leases various machinery and office equipment. These operating leases expire at various dates through 2036, and some of these leases have renewal options, with the longest ranging up to two, ten-year periods.\n\nOperating leases are classified in the Consolidated Balance Sheets as follows (in thousands):\n\nMarch 28, 2026March 29, 2025\n\nOther non-current assets$52,397 $58,511 \n\nOther current liabilities16,468 16,562 \n\nOther long-term liabilities40,615 45,283 \n\nDetails of operating leases are as follows (in thousands):\n\nFiscal Year\n\n202620252024\n\nOperating lease expense$19,020 $19,172 $21,531 \n\nShort-term lease expense6,508 8,342 7,359 \n\nVariable lease expense5,829 4,243 5,323 \n\nCash paid for amounts included in the measurement of operating lease liabilities19,869 20,392 22,471 \n\nRight-of-use assets obtained in exchange for new operating lease liabilities11,953 14,363 11,750 \n\nThe weighted-average remaining lease term and weighted-average discount rate for operating leases are as follows:\n\nMarch 28, 2026March 29, 2025\n\nWeighted-average remaining lease term (years) 4.85.1\n\nWeighted-average discount rate 4.24 %4.27 %\n\n71\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nThe aggregate future lease payments for operating leases as of March 28, 2026 are as follows (in thousands):\n\nFiscal Year\n\n2027$18,224 \n\n202815,677 \n\n20299,735 \n\n20305,544 \n\n20314,306 \n\nThereafter10,320 \n\nTotal future lease payments63,806 \n\nLess imputed interest(6,723)\n\nPresent value of lease liabilities$57,083 \n\n9. DEBT\n\nThe following table summarizes the Company's outstanding debt (in thousands):\n\nMarch 28, 2026March 29, 2025\n\n4.375% senior notes due 2029$850,000 $850,000 \n\n3.375% senior notes due 2031700,000 700,000 \n\nUnamortized premium and issuance costs, net(846)(785)\n\nTotal long-term debt$1,549,154 $1,549,215 \n\nCredit Agreement\n\nOn April 23, 2024, the Company entered into a five-year unsecured senior credit facility pursuant to a credit agreement with Bank of America, N.A., as administrative agent, swing line lender and letter of credit issuer and a syndicate of lenders (the \"Credit Agreement\"), which replaced the previous credit agreement dated as of September 29, 2020. The Credit Agreement provides for a $325.0 million senior revolving line of credit (the \"Revolving Facility\"). Up to $25.0 million of the Revolving Facility may be used for the issuance of standby letters of credit, and up to $10.0 million of the Revolving Facility may be used for swing line advances (i.e., short-term borrowings made available from the lead lender). The Company may request at any time that the Revolving Facility be increased by up to $325.0 million, subject to securing additional funding commitments from existing or new lenders. The Revolving Facility is available to finance working capital, capital expenditures and other lawful corporate purposes. The initial maturity date of the Revolving Facility is April 23, 2029, which may be extended by up to two years by exercising extension options provided in the Credit Agreement.\n\nAt the Company’s option, loans under the Credit Agreement bear interest at (i) the Applicable Rate (as defined in the Credit Agreement) plus Term SOFR (as defined in the Credit Agreement) or (ii) the Applicable Rate plus a rate equal to the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate of Bank of America, N.A., or (c) Term SOFR plus 1.00% (the “Base Rate”). All swing line loans bear interest at a rate equal to the Applicable Rate plus the Base Rate. Term SOFR is the rate per annum equal to the forward-looking SOFR term rate for interest periods of one, three or six months, as selected by the Company, plus an adjustment of 0.10%. The Applicable Rate is determined by reference to a pricing grid based on the Consolidated Leverage Ratio (as defined in the Credit Agreement) or, at the option of the Company, the Debt Rating (as defined in the Credit Agreement). The Applicable Rate for Term SOFR loans ranges from 1.000% per annum to 1.750% per annum and the Applicable Rate for Base Rate loans ranges from 0.000% per annum to 0.750% per annum. Undrawn amounts under the Revolving Facility are subject to a commitment fee ranging from 0.125% to 0.275%. Interest for Term SOFR loans is payable at the end of each applicable interest period or at three-month intervals, if such interest period exceeds three months. Interest for Base Rate loans is payable quarterly in arrears. The Company pays a letter of credit fee equal to the Applicable Rate multiplied by the daily amount available to be drawn under any letter of credit, a fronting fee and any customary documentary and processing charges for any letter of credit issued under the Credit Agreement.\n\nDuring fiscal 2026, there were no borrowings under the Revolving Facility.\n\n72\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nThe Credit Agreement contains various conditions, covenants and representations with which the Company must be in compliance in order to borrow funds and to avoid an event of default. As of March 28, 2026, the Company was in compliance with these covenants.\n\nSenior Notes due 2024\n\nOn December 14, 2021, the Company issued $500.0 million aggregate principal amount of its 1.750% senior notes due 2024 (the \"2024 Notes\"). The Company repurchased $27.3 million and $60.3 million of the principal amount of the 2024 Notes in fiscal years 2025 and 2024, respectively, plus accrued and unpaid interest, on the open market, and recognized net gains on debt extinguishment of $0.6 million and $1.8 million in fiscal years 2025 and 2024, respectively, which is included in \"Other income, net\" in the Consolidated Statements of Operations. The Company repaid the remaining principal balance of $412.5 million of the 2024 Notes, plus accrued and unpaid interest, with cash on hand upon maturity in December 2024.\n\nInterest paid on the 2024 Notes during fiscal years 2025 and 2024 was $7.2 million and $8.6 million, respectively.\n\nSenior Notes due 2029\n\nOn September 30, 2019, the Company issued $350.0 million aggregate principal amount of its 4.375% senior notes due 2029 (the \"Initial 2029 Notes\"). On December 20, 2019 and June 11, 2020, the Company issued an additional $200.0 million and $300.0 million, respectively, aggregate principal amount of such notes (together, the \"Additional 2029 Notes\" and collectively with the Initial 2029 Notes, the \"2029 Notes\"). The 2029 Notes will mature on October 15, 2029, unless earlier redeemed in accordance with their terms. The 2029 Notes are senior unsecured obligations of the Company and are guaranteed, jointly and severally, by certain of the Company's U.S. subsidiaries (the \"Guarantors\").\n\nThe Initial 2029 Notes were issued pursuant to an indenture, dated as of September 30, 2019, by and among the Company, the Guarantors and MUFG Union Bank, N.A., as trustee, and the Additional 2029 Notes were issued pursuant to supplemental indentures, dated as of December 20, 2019 and June 11, 2020 (such indenture and supplemental indentures, collectively, the \"2019 Indenture\"). The Company may redeem the 2029 Notes, in whole or in part, at the redemption prices specified in the 2019 Indenture, plus accrued and unpaid interest. The 2019 Indenture contains customary events of default, including payment default, exchange default, failure to provide certain notices thereunder and certain provisions related to bankruptcy events. The 2019 Indenture also contains customary negative covenants.\n\nInterest is payable on the 2029 Notes on April 15 and October 15 of each year. Interest paid on the 2029 Notes during each of the fiscal years 2026, 2025 and 2024 was $37.2 million.\n\nSenior Notes due 2031\n\nOn September 29, 2020, the Company issued $700.0 million aggregate principal amount of its 3.375% senior notes due 2031 (the \"2031 Notes\"). The 2031 Notes will mature on April 1, 2031, unless earlier redeemed in accordance with their terms. The 2031 Notes are senior unsecured obligations of the Company and are guaranteed, jointly and severally, by the Guarantors.\n\nThe 2031 Notes were issued pursuant to an indenture, dated as of September 29, 2020, by and among the Company, the Guarantors and MUFG Union Bank, N.A., as trustee (the \"2020 Indenture\"). The Company may redeem the 2031 Notes, in whole or in part, at the redemption prices specified in the 2020 Indenture, plus accrued and unpaid interest. The 2020 Indenture contains substantially the same customary events of default and negative covenants as the 2019 Indenture.\n\nThe 2031 Notes have not been and will not be registered under the Securities Act of 1933, as amended (the \"Securities Act\"), or any state securities laws, and may not be offered or sold in the United States absent an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.\n\n73\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nInterest is payable on the 2031 Notes on April 1 and October 1 of each year. Interest paid on the 2031 Notes during fiscal years 2026, 2025 and 2024 was $23.6 million, $23.6 million and $11.8 million, respectively.\n\nFair Value of Debt\n\nThe Company's debt is carried at amortized cost and is measured at fair value quarterly for disclosure purposes. The estimated fair value of the 2029 Notes and the 2031 Notes as of March 28, 2026 was $829.4 million and $629.5 million, respectively (compared to the outstanding principal amount of $850.0 million and $700.0 million, respectively). The estimated fair value of the 2029 Notes and the 2031 Notes as of March 29, 2025 was $812.8 million and $613.5 million, respectively (compared to the outstanding principal amount of $850.0 million and $700.0 million, respectively). The Company considers its debt to be Level 2 in the fair value hierarchy. Fair values are estimated based on quoted market prices for identical or similar instruments. The 2029 Notes and the 2031 Notes currently trade over-the-counter, and the fair values were estimated based upon the value of the last trade at the end of the period.\n\nInterest Expense\n\nDuring fiscal 2026, the Company recognized $76.5 million of interest expense primarily related to the 2029 Notes and the 2031 Notes, which was partially offset by $3.3 million of interest capitalized to property and equipment. During fiscal 2025, the Company recognized $82.2 million of interest expense primarily related to the 2024 Notes, the 2029 Notes and the 2031 Notes, which was partially offset by $3.9 million of interest capitalized to property and equipment. Interest expense in fiscal years 2026 and 2025 also includes financing costs related to certain inventory (subject to repurchase) in connection with a supply agreement. During fiscal 2024, the Company recognized $72.1 million of interest expense primarily related to the 2024 Notes, the 2029 Notes and the 2031 Notes, which was partially offset by $2.9 million of interest capitalized to property and equipment.\n\n10. RETIREMENT BENEFIT PLANS\n\nDefined Contribution Plans\n\nThe Company offers tax-beneficial retirement contribution plans to eligible employees in the U.S. and certain other countries. Eligible employees in certain countries outside of the U.S. are eligible to participate in stakeholder, group, or national pension plans with differing eligibility and contributory requirements based on local and national regulations. U.S. employees are eligible to participate in the Company's fully qualified 401(k) plan 30 days after their date of hire. An employee may contribute and invest pretax and/or Roth dollars into the 401(k) plan up to the maximum legal limits (as defined by federal regulations). Employer contributions to the 401(k) plan are made at the discretion of the Company’s Board of Directors.  Employees are immediately vested in their own contributions as well as employer matching contributions.\n\nIn total, the Company contributed $23.2 million, $23.5 million and $20.3 million to its domestic and foreign defined contribution plans during fiscal years 2026, 2025 and 2024, respectively.\n\nDefined Benefit Pension Plans\n\nThe Company maintains two qualified defined benefit pension plans for its subsidiaries located in Germany. One of the plans is funded through a self-paid reinsurance program with assets valued at $3.8 million as of March 28, 2026 and March 29, 2025 (included in \"Other non-current assets\" in the Consolidated Balance Sheets). The pension benefit obligations of the Company's plans totaled $9.4 million and $9.2 million as of March 28, 2026 and March 29, 2025, respectively, which is included in \"Accrued liabilities\" and \"Other long-term liabilities\" in the Consolidated Balance Sheets. The benefit obligations for the plans are calculated annually by an independent actuary and require the use of significant judgment including assumptions based on local economic conditions. The net periodic benefit cost was approximately $0.5 million for fiscal years 2026, 2025 and 2024.\n\n74\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nNon-Qualified Deferred Compensation Plan\n\nCertain employees and members of the Board of Directors are eligible to participate in the Company's Non-Qualified Deferred Compensation Plan (the \"NQDC Plan\"). The NQDC Plan provides eligible participants the opportunity to defer and invest a specified percentage of their cash compensation. The NQDC Plan is a non-qualified plan that is maintained in a rabbi trust, which restricts the Company's use and access to the assets held but is subject to the claims of the Company's general creditors in the event that the Company becomes insolvent. The amount of compensation to be deferred by each participant is based on their own elections and is adjusted for any investment changes that the participant directs. This plan does not provide for employer contributions. The deferred compensation obligation and the fair value of the investments held in the rabbi trust were $66.4 million and $58.4 million as of March 28, 2026 and March 29, 2025, respectively. The current portion of the deferred compensation obligation and fair value of the assets held in the rabbi trust were $3.9 million and $2.9 million as of March 28, 2026 and March 29, 2025, respectively, and are included in \"Other current assets\" and \"Accrued liabilities\" in the Consolidated Balance Sheets. The non-current portion of the deferred compensation obligation and fair value of the assets held in the rabbi trust were $62.5 million and $55.5 million as of March 28, 2026 and March 29, 2025, respectively, and are included in \"Other non-current assets\" and \"Other long-term liabilities\" in the Consolidated Balance Sheets. Fluctuations in the market value of the investments held in the rabbi trust result in the recognition of an investment gain or loss and deferred compensation expense or income. The change in the market value of the assets and the corresponding deferred compensation expense are recognized in “Other income, net” and “Other operating expenses,” respectively, in the Consolidated Statements of Operations.\n\n11. COMMITMENTS AND CONTINGENT LIABILITIES\n\nPurchase Obligations\n\nThe Company's purchase obligations include noncancelable purchases of materials, manufacturing services and equipment and software, with the majority of payments due within the next 12 months. The majority of noncancelable purchase obligations are not recorded as liabilities in the Consolidated Balance Sheet because the Company has not received the related goods or services as of March 28, 2026.\n\nLegal Matters\n\nThe Company is involved in various legal proceedings and claims that have arisen in the ordinary course of business that have not been fully adjudicated. The Company accrues a liability for legal contingencies when it believes that it is both probable that a liability has been incurred, and the amount of the loss can be reasonably estimated. The Company regularly evaluates developments in its legal matters that could affect the amount of the previously accrued liability and records adjustments as appropriate. Although it is not possible to predict with certainty the outcome of the unresolved legal matters, it is the opinion of management that these matters will not, individually or in the aggregate, have a material adverse effect on the Company’s consolidated financial position or results of operations. The aggregate range of reasonably possible losses in excess of accrued liabilities, if any, associated with these unresolved legal matters is not material.\n\n12. RESTRUCTURING\n\n2026 Restructuring Initiatives\n\nIn the second quarter of fiscal 2026, the Company initiated further actions to reduce operating expenses, streamline its manufacturing footprint and accelerate its focus on long-term profitability objectives (the \"2026 Restructuring Initiatives\"). As part of these actions, the Company decided to close its North Carolina fabrication facility and transfer surface acoustic wave filter production to its Texas fabrication facility. In the fourth quarter of fiscal 2026, the Company completed the sale of its North Carolina fabrication facility for net proceeds of $36.8 million, resulting in a net gain on sale of $7.9 million, and is operating under a short-term supply agreement with the buyer until the Company completes the transfer of SAW filter production to its Texas facility. In addition, the Company consolidated the CSG organizational structure as it continues to align total Company resources, improve efficiency and narrow its focus on a higher margin portfolio.\n\n75\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nThe following table summarizes the charges resulting from the 2026 Restructuring Initiatives (in thousands):\n\nFiscal 2026\n\nCost of Goods SoldOther Operating ExpenseTotal\n\nContract termination and other costs$7,400 $4,162 $11,562 \n\nAsset impairment costs and gain on sale (1)\n— (6,131)(6,131)\n\nOne-time employee termination benefits— 37,086 37,086 \n\nTotal$7,400 $35,117 $42,517 \n\n(1) \"Other Operating Expense\" includes a gain on sale of the North Carolina fabrication facility.\n\nThe Company expects to incur additional charges associated with the 2026 Restructuring Initiatives of approximately $10.0 million to $20.0 million, primarily related to employee termination benefits.\n\nThe following table summarizes the liability activity related to the 2026 Restructuring Initiative (in thousands):\n\nOne-Time Employee Termination BenefitsContract Termination and Other CostsTotal\n\nAccrued restructuring balance as of March 29, 2025\n$— $— $— \n\nCosts incurred and charged to expense37,086 11,562 48,648 \n\nCash payments(17,230)(2,069)(19,299)\n\nAccrued restructuring balance as of March 28, 2026\n$19,856 $9,493 $29,349 \n\nThe Company incurred additional immaterial legal fees and other costs in fiscal 2026 in connection with other miscellaneous restructuring initiatives.\n\n2025 Restructuring Initiatives\n\nIn fiscal 2025, the Company initiated actions to reduce operating expenses, streamline its manufacturing footprint and focus on opportunities that align with its long-term profitability objectives (the \"2025 Restructuring Initiatives\"). As part of these actions, the Company reduced its workforce related to its mass-market Android business, sold its SiC power device business, cancelled certain multiyear projects to update the Company's core business systems, and began to seek strategic alternatives related to its MEMS-based sensing solutions business. In the third quarter of fiscal 2026, the Company completed the sale of its MEMS-based sensing solutions business, resulting in a gain of $19.2 million, which is included in \"Other operating expense\" in the Consolidated Statement of Operations.\n\nRefer to Note 5 for additional information regarding the divestitures of the SiC power device business and the MEMS-based sensing solutions business.\n\n76\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nThe following table summarizes the charges resulting from the 2025 Restructuring Initiatives (in thousands):\n\nFiscal 2026\n\nCost of Goods SoldOther Operating ExpenseTotal\n\nContract termination and other costs$3,430 $12,743 $16,173 \n\nAsset impairment costs and gain on sale of business (1)\n514 (17,702)(17,188)\n\nOne-time employee termination benefits— 5,387 5,387 \n\nTotal$3,944 $428 $4,372 \n\nFiscal 2025\n\nCost of Goods SoldGoodwill and Intangible Asset ImpairmentOther Operating ExpenseTotal\n\nContract termination and other costs$11,622 $— $43,443 $55,065 \n\nAsset impairments and gain on sale of business (2)\n14,359 192,569 (10,914)196,014 \n\nOne-time employee termination benefits— — 7,788 7,788 \n\nTotal$25,981 $192,569 $40,317 $258,867 \n\n(1) \"Other Operating Expense\" in fiscal 2026 includes a gain on sale of the MEMS-based sensing solutions business.\n\n(2) \"Other Operating Expense\" in fiscal 2025 includes a gain on sale of the SiC power device business.\n\nAs of March 28, 2026, the Company has recorded cumulative expenses of approximately $71.2 million for contract termination and other costs, $178.8 million for asset impairment costs and gain on sales of businesses, and $13.2 million for one-time employee termination benefits as a result of the 2025 Restructuring Initiatives. The Company does not expect to incur additional material charges related to the 2025 Restructuring Initiatives.\n\nThe following table summarizes the liability activity related to the 2025 Restructuring Initiatives (in thousands):\n\nOne-Time Employee Termination BenefitsContract Termination and Other CostsTotal\n\nAccrued restructuring balance as of March 30, 2024$— $— $— \n\nCosts incurred and charged to expense7,788 43,443 51,231 \n\nCash payments(7,311)(12,955)(20,266)\n\nAccrued restructuring balance as of March 29, 2025\n$477 $30,488 $30,965 \n\nCosts incurred and charged to expense5,387 12,743 18,130 \n\nCash payments(5,795)(16,367)(22,162)\n\nAccrued restructuring balance as of March 28, 2026\n$69 $26,864 $26,933 \n\n2024 Restructuring Initiative\n\nDuring fiscal years 2025 and 2024, the Company incurred $18.3 million and $53.0 million, respectively, in restructuring-related charges in connection with an initiative that began in fiscal 2024 to divest its assembly and test operations in China (the \"2024 Restructuring Initiative\"). The sale of these operations was completed in the first quarter of fiscal 2025 (refer to Note 5 for additional information).\n\nThe Company incurred immaterial costs in fiscal 2026 as a result of the 2024 Restructuring Initiative.\n\n2023 Restructuring Initiatives\n\nDuring fiscal 2024, the Company incurred $37.4 million in restructuring-related charges in connection with initiatives that began in fiscal 2023 to improve efficiencies in its operations and further align the organization with its strategic objectives, which primarily included seeking strategic alternatives related to its biotechnology business\n\n77\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\n(the \"2023 Restructuring Initiatives\"). The Company completed the sale of its biotechnology business in the third quarter of fiscal 2024.\n\nThe Company incurred immaterial costs in fiscal 2026 and fiscal 2025 as a result of the 2023 Restructuring Initiatives.\n\n13. INCOME TAXES\n\nIncome before income taxes consists of the following components (in thousands):\n\nFiscal Year\n\n202620252024\n\nUnited States$(102,415)$(405,546)$(281,790)\n\nForeign500,688 471,445 355,350 \n\nTotal$398,273 $65,899 $73,560 \n\nThe components of the income tax provision are as follows (in thousands):\n\nFiscal Year\n\n202620252024\n\nCurrent tax expense (benefit):\n\nFederal$4,125 $19,482 $36,155 \n\nState1,023 92 232 \n\nForeign93,520 75,447 88,090 \n\n98,668 95,021 124,477 \n\nDeferred tax expense (benefit):\n\nFederal(22,757)(91,101)6,532 \n\nState(2,499)49 (1,090)\n\nForeign(14,128)6,315 13,963 \n\n(39,384)(84,737)19,405 \n\nTotal$59,284 $10,284 $143,882 \n\n78\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nA reconciliation of the U.S. federal statutory income tax rate to the Company's effective tax rate, pursuant to the disclosure requirements of ASU 2023-09, is as follows (dollars in thousands):\n\nFiscal 2026Fiscal 2025Fiscal 2024\n\nAmountPercentageAmountPercentageAmountPercentage\n\nU.S. Federal Statutory Tax Rate$83,637 21.0 %$13,839 21.0 %$15,448 21.0 %\n\nState and Local Taxes, Net of Federal Tax Effect (1)\n(1,086)(0.3)%(400)(0.6)%(1,213)(1.6)%\n\nForeign Tax Effects\n\nSingapore\n\nStatutory tax rate difference(22,235)(5.6)%(19,448)(29.5)%(20,051)(27.3)%\n\nTax holiday and other rate differences(57,069)(14.3)%(48,891)(74.2)%(45,580)(62.0)%\n\nRestructuring-related impact(19,824)(5.0)%— — %— — %\n\nGlobal minimum taxes39,002 9.8 %— — %— — %\n\nOther1,165 0.3 %954 1.4 %1,234 1.7 %\n\nIreland\n\nStatutory tax rate difference6,569 1.6 %3,828 5.8 %16,596 22.6 %\n\nChanges in valuation allowance(4,948)(1.2)%2,784 4.2 %5,251 7.1 %\n\nRestructuring-related impact16,404 4.1 %— — %— — %\n\nGoodwill impairment— — %— — %18,237 24.8 %\n\nOther(417)(0.1)%(150)(0.2)%(23)— %\n\nFrance\n\nStatutory tax rate difference(1,291)(0.3)%(688)(1.0)%(1,437)(2.0)%\n\nChanges in valuation allowance8,037 2.0 %5,762 8.7 %5,724 7.8 %\n\nGoodwill impairment— — %— — %4,784 6.5 %\n\nOther58 — %(688)(1.0)%(909)(1.2)%\n\nChina\n\nStatutory tax rate difference47 — %177 0.3 %2,346 3.2 %\n\nRestructuring-related impact— — %(664)(1.0)%45,096 61.3 %\n\nOther556 0.1 %(928)(1.4)%5,111 6.9 %\n\nOther Foreign Jurisdictions\n\nStatutory tax rate difference8,233 2.1 %3,632 5.5 %4,025 5.5 %\n\nOther139 — %1,145 1.7 %(125)(0.2)%\n\nEffect of Cross-Border Tax Laws\n\nGlobal intangible low-taxed income71,418 17.9 %70,132 106.4 %110,572 150.3 %\n\nSubpart F income12,731 3.2 %9,599 14.6 %19,121 26.0 %\n\nForeign-derived intangible income(4,486)(1.1)%(4,848)(7.4)%— — %\n\nRestructuring-related impact(6,461)(1.6)%5,034 7.6 %— — %\n\nOther(340)(0.1)%(672)(1.0)%574 0.8 %\n\nTax Credits\n\nResearch & development credits(30,354)(7.6)%(25,305)(38.4)%(22,392)(30.4)%\n\nForeign tax credit(77,588)(19.5)%(32,142)(48.8)%(46,940)(63.8)%\n\nRestructuring-related impact5,409 1.4 %(5,944)(9.0)%(7,624)(10.4)%\n\nChanges in Federal Valuation Allowance(41)— %27,938 42.4 %24 — %\n\nNontaxable or Nondeductible Items\n\nDisallowed stock-based and officers' compensation14,634 3.7 %11,793 17.9 %10,148 13.8 %\n\nRestructuring-related impact— — %(2,093)(3.2)%5,388 7.3 %\n\nGoodwill impairment3,987 1.0 %— — %5,489 7.5 %\n\nOther3,685 0.9 %1,434 2.2 %6,574 8.9 %\n\nChanges in Unrecognized Tax Benefits9,603 2.4 %(5,016)(7.6)%8,451 11.5 %\n\nOther Adjustments110 0.1 %110 0.2 %(17)— %\n\nEffective Tax Rate$59,284 14.9 %$10,284 15.6 %$143,882 195.6 %\n\n(1) Primarily consisting of taxes attributable to California and Texas.\n\n79\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nOn July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the United States. The OBBBA permanently extends several tax provisions originally introduced under the 2017 Tax Cuts and Jobs Act, and also repeals, modifies and introduces various other tax measures with varying effective dates. The OBBBA did not have a material impact on the Consolidated Financial Statements for the fiscal year ended March 28, 2026.\n\nThe following table presents cash paid for income taxes, net of refunds received, by jurisdiction, pursuant to the disclosure requirements of ASU 2023-09 (in thousands):\n\nFiscal Year\n\n202620252024\n\nFederal$13,659 $8,065 $16,123 \n\nState and local1,089 444 841 \n\nForeign\n\nChina15,344 31,588 42,955 \n\nSingapore22,505 24,891 33,414 \n\nGermany3,295 22,268 11,333 \n\nOther40 1,956 (14)\n\nTotal$55,932 $89,212 $104,652 \n\nThe timing of cash tax payments and refunds is determined by jurisdiction-specific statutory requirements, which may not correspond to the period in which the related income tax expense is recognized.\n\nDeferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the basis used for income tax purposes. The deferred income tax assets and liabilities are measured in each taxing jurisdiction using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.\n\n80\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nSignificant components of the Company’s net deferred income taxes are as follows (in thousands):\n\nMarch 28, 2026March 29, 2025\n\nDeferred income tax assets:\n\nCapitalized research and development expenses$103,142 $96,198 \n\nResearch and other tax credits43,312 42,066 \n\nEmployee benefits37,412 34,335 \n\nCapital loss carryforwards29,221 29,334 \n\nNet operating loss carryforwards25,437 25,045 \n\nInventories17,593 17,485 \n\nLease liabilities12,871 13,713 \n\nOther21,050 14,012 \n\nTotal deferred income tax assets290,038 272,188 \n\nValuation allowance(90,855)(85,722)\n\nTotal deferred income tax assets, net of valuation allowance$199,183 $186,466 \n\nDeferred income tax liabilities:\n\nProperty and equipment$(28,703)$(34,912)\n\nIntangible assets(17,897)(34,289)\n\nRight-of-use assets(11,819)(12,985)\n\nAccrued tax on unremitted foreign earnings(8,906)(8,701)\n\nOther (2,356)(4,948)\n\nTotal deferred income tax liabilities(69,681)(95,835)\n\nNet deferred income tax asset$129,502 $90,631 \n\nAmounts included in the Consolidated Balance Sheets:\n\nOther non-current assets$130,794 $101,439 \n\nOther long-term liabilities(1,292)(10,808)\n\nNet deferred income tax asset$129,502 $90,631 \n\nThe Company has recorded a valuation allowance against certain U.S. and foreign deferred tax assets as of March 28, 2026 and March 29, 2025. These valuation allowances were established based upon management's opinion that it is more likely than not (a likelihood of more than 50 percent) that the benefit of these deferred tax assets will not be realized.\n\n81\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nThe components of the change in valuation allowances and ending balances are as follows (in thousands):\n\nFiscal Year\n\n202620252024\n\nBeginning valuation allowance$85,722 $43,636 $35,896 \n\nCharged (credited) to income tax provision:\n\nDomestic tax attributes and deferred tax assets746 33,344 (3,367)\n\nForeign tax attributes and deferred tax assets3,311 8,802 10,904 \n\nTranslation and other charges (1)\n1,076 (60)203 \n\nEnding valuation allowance$90,855 $85,722 $43,636 \n\nComponents of ending valuation allowance:\n\nDomestic deferred tax assets$66,516 $65,769 $32,406 \n\nForeign deferred tax assets24,339 19,953 11,230 \n\nValuation allowance$90,855 $85,722 $43,636 \n\n(1) Other charges primarily relate to purchase accounting adjustments.\n\nAs of March 28, 2026, the Company had federal tax loss carryforwards of approximately $20.4 million, some of which expire in fiscal years 2029 to 2038, and state tax loss carryforwards of approximately $91.9 million, some of which expire in fiscal years 2027 to 2044, the remainder of which will carry forward indefinitely. Federal research tax credits of $87.7 million expire in fiscal years 2044 to 2046, and a portion of the Company's state research tax credits of $72.0 million expire in fiscal years 2027 to 2043, while the remainder carry forward indefinitely. The Company had foreign tax loss carryforwards of $97.0 million as of March 28, 2026, the majority of which will carry forward indefinitely. Each tax loss carryforward and tax credit expires only if unused prior to its respective expiration date. The utilization of acquired domestic tax assets is subject to certain annual limitations as required under Section 382 of the Internal Revenue Code of 1986, as amended, and similar state income tax provisions.\n\nThe Company currently operates in numerous international jurisdictions, which expose the Company to taxation in various regions. The Company is not permanently reinvested on earnings of its foreign subsidiaries which have been subject to U.S. federal taxation and has recognized a corresponding deferred tax liability for the estimated tax that would be incurred upon repatriation.\n\nThe Company has foreign subsidiaries with tax holiday agreements in Costa Rica and Singapore, which provide for reduced income tax rates expiring in December 2027 and December 2031, respectively. These incentives are contingent upon the Company satisfying specified employment and investment requirements. Upon the divestiture of operations in Costa Rica, the Company began the process to deregister from the Costa Rica tax holiday agreement. As a result of the Company’s active tax holiday agreements, income tax expense decreased relative to the statutory rate by $64.0 million (an impact of approximately $0.69 per basic share and $0.68 per diluted share) in fiscal 2026 and $54.0 million (an impact of approximately $0.57 per basic and diluted share) in fiscal 2025. The overall benefit derived from the Company’s Singapore tax holiday was adversely impacted in fiscal 2026 due to Singapore’s implementation of a minimum tax of 15% on income, which resulted in the Company recording $39.0 million of incremental income tax expense. Certain countries in which the Company operates, including Singapore, have implemented legislation and other guidance to align their international tax rules with the Organization for Economic Co-operation and Development’s (the \"OECD\") Base Erosion and Profit Shifting recommendations and action plan, including establishment of a minimum tax of 15% on global income (commonly referred to as the OECD's global minimum tax regime or \"Pillar Two\"). On January 5, 2026, the OECD released additional Pillar Two guidance introducing a new “side-by-side” system, which, upon adoption by local legislatures, will exclude U.S. headquartered companies from some aspects of minimum taxation.\n\nThe Company’s gross unrecognized tax benefits totaled $154.6 million, $145.7 million and $158.9 million as of March 28, 2026, March 29, 2025 and March 30, 2024, respectively. Of these amounts, $148.8 million, $139.6 million and $152.6 million as of March 28, 2026, March 29, 2025 and March 30, 2024, respectively, represent the\n\n82\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\namounts of unrecognized tax benefits that, if recognized, would impact the effective tax rate in each of the fiscal years.\n\nThe Company’s gross unrecognized tax benefits increased from $145.7 million as of March 29, 2025 to $154.6 million as of March 28, 2026, primarily due to current year tax positions, partially offset by the expiration of statute of limitations on prior-year positions.\n\nA summary of the changes in the amount of gross unrecognized tax benefits is as follows (in thousands):\n\nFiscal Year\n\n202620252024\n\nBeginning balance$145,717 $158,899 $152,331 \n\nAdditions based on positions related to current year11,832 16,696 5,298 \n\nAdditions for tax positions in prior years578 1,593 2,280 \n\nReductions for tax positions in prior years(1,297)(536)(2,416)\n\nExpiration of statute of limitations(2,197)(24,983)(436)\n\nOther (reductions) additions (1)\n— (5,952)1,842 \n\nEnding balance$154,633 $145,717 $158,899 \n\n(1) Relates to divestitures and purchase accounting related adjustments.\n\nIt is the Company’s policy to recognize interest and penalties related to uncertain tax positions as a component of income tax expense. During fiscal years 2026, 2025 and 2024, the Company recognized $0.8 million, $2.2 million and $3.5 million, respectively, of interest and penalties related to uncertain tax positions. Accrued interest and penalties related to unrecognized tax benefits totaled $8.3 million, $7.5 million and $5.3 million as of March 28, 2026, March 29, 2025 and March 30, 2024, respectively.\n\nThe unrecognized tax benefits of $154.6 million and accrued interest and penalties of $8.3 million as of March 28, 2026 are recorded in the Consolidated Balance Sheet as a $44.4 million other long-term liability, with the balance reducing the carrying value of the gross deferred tax assets.\n\nThe Company files a consolidated U.S. federal income tax return, as well as separate and combined income tax returns in numerous state and international jurisdictions. The Company’s fiscal 2021 U.S. federal and state tax returns and subsequent tax years remain open for examination, as well as attributes brought forward into those years. As of March 28, 2026, the Company’s U.S. federal income tax return for fiscal 2023 is under examination. While the ultimate resolution of this examination is uncertain, the Company believes that its tax positions are reasonably supported and that adequate reserves, if any, have been recorded in accordance with ASC 740. The Company is also subject to examination by various international tax authorities, with tax years subject to examination varying by jurisdiction.\n\n83\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\n14. NET INCOME (LOSS) PER SHARE\n\nThe following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data):\n\nFiscal Year\n\n202620252024\n\nNumerator:\n\nNumerator for basic and diluted net income (loss) per share — net income (loss) available to common stockholders\n$338,989 $55,615 $(70,322)\n\nDenominator:\n\nDenominator for basic net income (loss) per share — weighted-average shares\n92,592 94,586 97,557 \n\nEffect of dilutive securities:\n\nStock-based awards955 864 — \n\nDenominator for diluted net income (loss) per share — adjusted weighted-average shares and assumed conversions\n93,547 95,450 97,557 \n\nBasic net income (loss) per share\n$3.66 $0.59 $(0.72)\n\nDiluted net income (loss) per share\n$3.62 $0.58 $(0.72)\n\nIn the computation of diluted net income per share for fiscal years 2026 and 2025, approximately 1.1 million and 1.0 million shares, respectively, of outstanding stock-based awards were excluded because the effect of their inclusion would have been anti-dilutive. In the computation of net loss per share for fiscal 2024, approximately 1.5 million shares of outstanding stock-based awards were excluded because the effect of their inclusion would have been anti-dilutive.\n\n15. STOCK-BASED COMPENSATION\n\nTotal pre-tax stock-based compensation expense recognized in the Consolidated Statements of Operations was $136.1 million, $136.3 million and $120.8 million for fiscal years 2026, 2025 and 2024, respectively. The net tax benefit realized for the tax deduction from stock-based compensation was $14.7 million, $17.3 million and $16.2 million for fiscal years 2026, 2025 and 2024, respectively.\n\nEquity Incentive Award Plan\n\nAmended and Restated 2022 Stock Incentive Plan – Qorvo, Inc.\n\nThe Company currently grants equity-based awards to eligible employees, directors and independent contractors under the Qorvo, Inc. Amended and Restated 2022 Stock Incentive Plan (the \"2022 Plan\"), which was amended and restated upon approval by stockholders at the Annual Meeting of Stockholders held on August 13, 2025 to increase the number of shares that may be issued in connection with awards granted thereunder by approximately 3.2 million shares (subject to adjustment for anti-dilution purposes). Under the 2022 Plan, the Company is permitted to grant awards, such as restricted stock units (\"RSUs\"), restricted stock awards, performance shares, performance units, stock options, stock appreciation rights and phantom stock awards, to eligible participants. The maximum number of shares issuable under the 2022 Plan may not exceed approximately 7.7 million shares (subject to adjustment for anti-dilution purposes). As of March 28, 2026, approximately 3.8 million shares were available for issuance under the 2022 Plan.\n\nRestricted Stock Units\n\nThe RSUs granted by the Company in fiscal years 2026, 2025 and 2024 are either service-based or performance-based. Service-based RSUs generally vest over a four-year period from the grant date. Performance-based awards are comprised of corporate objective-based awards and gross margin-based awards. Corporate objective-based awards are earned based on Company achievement of specific performance targets and, if earned, generally vest one-half when earned and the remaining balance vests in equal installments over each of the following two years. Gross margin-based awards are earned based on Company achievement of gross margin targets and, if earned,\n\n84\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\ngenerally vest when earned. RSUs granted to non-employee directors generally vest over a one-year period from the grant date. In fiscal 2026, each non-employee director was eligible to receive an annual grant of RSUs.\n\nThe RSUs granted to certain officers of the Company generally will, in the event of the officer's termination other than for cause and subject to the officer executing certain agreements in favor of the Company, continue to vest pursuant to the same vesting schedule as if the officer had remained an employee of the Company and, as a result, these awards are expensed at grant date. In fiscal 2026, stock-based compensation of $34.9 million was recognized upon the grant of 0.1 million service-based RSUs and 0.3 million performance-based RSUs to certain officers of the Company.\n\nThe fair value per unit of each RSU is determined on the grant date, and the compensation expense is based on awards ultimately expected to vest. The Company has elected to estimate forfeitures at the time of grant and if actual forfeitures differ from those estimates, the Company revises the estimates in subsequent periods. Based upon historical pre-vesting forfeiture experience, the Company assumed an annualized forfeiture rate of 2.4% for RSUs.\n\nA summary of activity with respect to RSUs under the Company’s director and employee stock plans is as follows:\n\nRSUs\n(in thousands)\nWeighted-Average\nGrant-Date\nFair Value\n\nUnvested balance as of March 29, 20252,820 $102.45 \n\nGranted1,601 87.26 \n\nVested(1,157)106.83 \n\nForfeited(293)96.94 \n\nUnvested balance as of March 28, 20262,971 94.07 \n\nAs of March 28, 2026, total remaining unearned compensation cost related to unvested RSUs was $167.0 million, which will be amortized over the weighted-average remaining service period of approximately 1.3 years.\n\nThe total intrinsic value of RSUs that vested during fiscal years 2026, 2025 and 2024 was $96.4 million, $96.3 million and $85.8 million, respectively, based upon the fair market value of the Company’s common stock on the vesting date. The Company settles RSUs with newly issued shares of the Company's common stock. For the majority of RSUs, shares are issued on the vesting date net of the amount of shares needed to satisfy statutory tax withholding obligations to be paid by the Company on behalf of the employees. As a result, the actual number of shares issued will be fewer than the number of RSUs unvested.\n\nAmended and Restated Employee Stock Purchase Plan\n\nThe Qorvo, Inc. Amended and Restated 2007 Employee Stock Purchase Plan (the \"ESPP\"), which is intended to qualify as an \"employee stock purchase plan\" under Section 423 of the Internal Revenue Code, was assumed by the Company in connection with the Business Combination and was amended and restated upon approval by stockholders at the Annual Meeting of Stockholders held on August 13, 2025 to increase the number of shares that may be made available for sale thereunder by 4.0 million shares (subject to adjustment for anti-dilution purposes). All employees who meet the eligibility requirements of the plan may participate in the ESPP, which provides employees an opportunity to acquire the Company’s common stock at 85% of the lower of the closing price per share of the Company’s common stock on the first or last day of each six-month purchase period. The maximum number of shares issuable under the ESPP is approximately 10.2 million shares (subject to adjustment for anti-dilution purposes). As of March 28, 2026, 5.0 million shares were available for future issuance under this plan. The Company makes no cash contributions to the ESPP but bears the expenses of its administration. The Company issued 0.7 million shares under the ESPP in fiscal 2026 and 0.5 million shares in both fiscal years 2025 and 2024.\n\nCash received from participation in the ESPP (excluding accrued unremitted employee funds) was approximately $36.9 million for fiscal 2026 and is reflected in cash flows from financing activities in the Consolidated Statement of Cash Flows. The Company settles ESPP purchases with newly issued shares of the Company's common stock. The\n\n85\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nfair value of each award is estimated on the date of grant using a Black-Scholes pricing model based on the historical volatility, dividend yield, term and risk-free interest rate.\n\n16. STOCKHOLDERS' EQUITY\n\nStock Repurchase\n\nOn November 2, 2022, the Company announced that its Board of Directors authorized a share repurchase program to repurchase up to $2.0 billion of the Company's outstanding common stock, which included the remaining authorized dollar amount under a prior program terminated concurrent with the new authorization.\n\nUnder this program, share repurchases are made in accordance with applicable securities laws on the open market or in privately negotiated transactions. The extent to which the Company repurchases its shares, the number of shares and the timing of any repurchases depends on general market conditions, regulatory requirements, alternative investment opportunities and other considerations. The program does not require the Company to repurchase a minimum number of shares, does not have a fixed term, and may be modified, suspended or terminated at any time without prior notice. Following the execution of the Merger Agreement in the third quarter of fiscal 2026, the Company suspended its share repurchase activity; however, in the fourth quarter of fiscal 2026, the Company resumed share repurchases in accordance with the terms of the Merger Agreement.\n\nDuring fiscal years 2026, 2025 and 2024, the Company repurchased approximately 6.6 million shares, 4.0 million shares and 4.0 million shares of its common stock, respectively, for approximately $536.7 million, $358.8 million and $403.0 million, respectively (including transaction costs and excise tax, as applicable) under the share repurchase program. As of March 28, 2026, approximately $416.2 million remains authorized for repurchases under the share repurchase program.\n\nCommon Stock Reserved For Future Issuance\n\nAs of March 28, 2026, the Company had reserved a total of approximately 11.8 million of its authorized 405.0 million shares of common stock for possible future issuance as follows (in thousands):\n\nCompany stock incentive plan3,789\n\nEmployee stock purchase plan5,005\n\nUnvested restricted stock units2,971\n\nTotal shares reserved11,765\n\n17. OPERATING SEGMENT AND GEOGRAPHIC INFORMATION\n\nThe Company is organized into three operating and reportable segments that align technologies and applications with customers and end markets: HPA, CSG and ACG.\n\nHPA is a leading global supplier of RF, analog mixed signal and power management solutions. HPA leverages a diverse portfolio of differentiated process technologies and products to serve customers in consumer, defense and aerospace, infrastructure, and industrial and enterprise markets.\n\nCSG is a leading global supplier of connectivity solutions, with broad expertise spanning ultra-wideband, Matter®, Bluetooth® Low Energy, Zigbee®, Thread®, Wi-Fi® and cellular solutions for the Internet of Things to serve customers in automotive, consumer, industrial and enterprise, and mobile markets.\n\nACG is a leading global supplier of advanced cellular solutions for smartphones, wearables, laptops, tablets and other devices. ACG leverages world-class technology and systems-level expertise to deliver a broad portfolio of high-performance discrete and highly integrated cellular products.\n\nThe Company's three operating and reportable segments are based on the organizational structure and information reviewed by the Company's Chief Executive Officer, who is also the Company's chief operating decision maker (the \"CODM\"). The CODM primarily uses segment operating income (loss) to evaluate each segment's performance and\n\n86\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nallocate resources. This measure is utilized during the budgeting and forecasting process to assess profitability and enable decision making regarding strategic initiatives, capital investments and personnel across all operating segments. The Company’s manufacturing facilities service and provide benefit to all three operating segments, and the operating costs of the facilities are reflected in the cost of goods sold for each operating segment. The Company’s operating segments do not have intercompany revenue. The CODM does not evaluate operating segments using discrete asset information.\n\n87\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\nThe following table presents details of the Company’s operating and reportable segments and a reconciliation of segment operating income (loss) to consolidated income before income taxes (in thousands):\n\nFiscal Year\n\n202620252024\n\nRevenue:\n\nHPA$705,657 $637,261 $572,953 \n\nCSG421,654 472,521 434,537 \n\nACG2,551,206 2,609,189 2,762,016 \n\nTotal revenue$3,678,517 $3,718,971 $3,769,506 \n\nSegment expenses:\n\nHPA\n\nCost of goods sold$272,528 $288,847 $279,516 \n\nResearch and development150,955 151,139 130,000 \n\nMarketing and selling65,581 63,006 52,565 \n\nGeneral and administrative27,237 25,374 28,371 \n\nSegment operating income189,356 108,895 82,501 \n\nCSG\n\nCost of goods sold243,521 293,664 291,350 \n\nResearch and development127,491 135,580 133,252 \n\nMarketing and selling69,722 76,583 74,455 \n\nGeneral and administrative23,173 22,536 24,129 \n\nSegment operating loss(42,253)(55,842)(88,649)\n\nACG\n\nCost of goods sold1,363,621 1,456,799 1,523,025 \n\nResearch and development390,596 406,776 373,473 \n\nMarketing and selling55,532 61,654 56,687 \n\nGeneral and administrative74,105 81,513 80,925 \n\nSegment operating income667,352 602,447 727,906 \n\nTotal segment operating income$814,455 $655,500 $721,758 \n\nUnallocated amounts:\n\nStock-based compensation expense(136,070)(136,346)(120,834)\n\nAmortization of acquired intangible assets(84,953)(110,081)(121,809)\n\nRestructuring-related charges (1)\n(50,739)(88,182)(92,764)\n\nMerger-related costs (2)\n(23,475)— — \n\nGoodwill and intangible asset impairment (3)\n(82,369)(192,569)(221,414)\n\nNet adjustments related to a terminated capacity reservation agreement2,010 5,444 (38,419)\n\nOther (4)\n(27,435)(38,239)(34,817)\n\nConsolidated operating income411,424 95,527 91,701 \n\nInterest expense(73,134)(78,328)(69,245)\n\nOther income, net59,983 48,700 51,104 \n\nIncome before income taxes$398,273 $65,899 $73,560 \n\n(1) Refer to Note 12 for additional information.\n\n(2) Refer to Note 2 for additional information.\n\n(3) Refer to Note 7 for additional information.\n\n(4) Includes acquisition and integration-related costs; certain settlements, gains, losses and other charges; costs associated with upgrading certain of the Company's core business systems; and start-up costs.\n\nThe unallocated amounts in the table above are not allocated to the Company's operating segments because they are not included in the segment operating performance measures evaluated by the Company’s CODM. Except as\n\n88\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_70)\n\nQorvo, Inc. and Subsidiaries\nNotes to Consolidated Financial Statements (continued)\n\ndiscussed above regarding the unallocated amounts, the Company's accounting policies for segment reporting are the same as for the Company as a whole.\n\nThe consolidated financial statements include revenue to customers by geographic region (based on the location of the customers' headquarters) that are summarized as follows (in thousands):\n\nFiscal Year\n\n202620252024\n\nRevenue:\n\nUnited States$2,315,762 $2,227,177 $2,175,937 \n\nChina474,870 620,423 726,810 \n\nOther Asia431,862 444,352 517,683 \n\nTaiwan357,739 341,161 260,839 \n\nEurope98,284 85,858 88,237 \n\nTotal revenue$3,678,517 $3,718,971 $3,769,506 \n\nThe consolidated financial statements include the following long-lived tangible asset amounts related to operations of the Company by geographic region (in thousands):\n\nMarch 28, 2026March 29, 2025\n\nLong-lived tangible assets:\n\nUnited States$650,340 $725,620 \n\nOther countries60,05276,275\n\n89\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_7)\n\nReport of Independent Registered Public Accounting Firm\n\nTo the Stockholders and the Board of Directors of Qorvo, Inc.\n\nOpinion on the Financial Statements\n\nWe have audited the accompanying consolidated balance sheets of Qorvo, Inc. and subsidiaries (the Company) as of March 28, 2026 and March 29, 2025, the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for each of the three years in the period ended March 28, 2026, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at March 28, 2026 and March 29, 2025, and the results of its operations and its cash flows for each of the three years in the period ended March 28, 2026, in conformity with U.S. generally accepted accounting principles.\n\nWe also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of March 28, 2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated May 8, 2026 expressed an unqualified opinion thereon.\n\nBasis for Opinion\n\nThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.\n\nCritical Audit Matter\n\nThe critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.\n\n90\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_7)\n\nInventory - Valuation\n\nDescription of the MatterThe Company’s inventory, net totaled $553.7 million as of March 28, 2026, representing approximately 9.5% of total assets. As explained in Note 1 to the consolidated financial statements, the Company assesses the valuation of inventories on a material or product family basis each reporting period. Obsolete inventory or inventory in excess of management’s demand forecasts is written down to its estimated net realizable value if less than cost by recording an inventory reserve at each reporting period.\n\nAuditing management’s estimates for inventory reserves involved significant judgment because the assessment considers a number of factors, including demand forecasts, changes in the customer base, and customer acceptance of the Company’s products and technologies that are affected at least partially by market and economic conditions outside the Company’s control.\n\nHow We Addressed the Matter in Our Audit\nWe obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risk of material misstatement relating to the Company’s inventory reserves estimation process, including controls over management's development and review of the assumptions and data underlying the inventory reserves.\n\nOur audit procedures included, among others, testing the reasonableness of the significant assumptions and testing the accuracy and completeness of underlying data used in management’s assessment of inventory reserves. We evaluated inventory levels compared to forecasted demand, historical sales and specific product considerations. We also assessed the historical accuracy of management’s estimates for both the demand forecast assumptions and the reserve estimate by comparing management’s historical estimates to actual results.\n\n/s/ Ernst & Young LLP\n\nWe have served as the Company’s auditor since 2018.\nCharlotte, North Carolina\nMay 8, 2026\n\n91\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_7)\n\nReport of Independent Registered Public Accounting Firm\n\nTo the Stockholders and the Board of Directors of Qorvo, Inc.\n\nOpinion on Internal Control Over Financial Reporting\n\nWe have audited Qorvo, Inc. and subsidiaries’ internal control over financial reporting as of March 28, 2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Qorvo, Inc. and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of March 28, 2026, based on the COSO criteria.\n\nWe also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of March 28, 2026 and March 29, 2025, the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity and cash flows for each of the three years in the period ended March 28, 2026, and the related notes and our report dated May 8, 2026 expressed an unqualified opinion thereon.\n\nBasis for Opinion\n\nThe Company’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 assessment of 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 are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audit in accordance with the standards of the PCAOB. 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.\n\nOur 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.\n\nDefinition and Limitations of Internal Control Over Financial Reporting\n\nA 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.\n\nBecause 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.\n\n/s/ Ernst & Young LLP\nCharlotte, North Carolina\nMay 8, 2026\n\n92\n\n[Table of Contents](#i20702a1530574cc7a4597a4ae0a64f2c_7)"}