MACOM Technology Solutions Holdings, Inc.MTSI

MACOM Technology Solutions Holdings, Inc. Commitments Disclosure

10-KFiled Nov 14, 20251 min read
COMMITMENTS AND CONTINGENCIES
Asset Retirement Obligations—We are obligated under certain facility leases to restore those facilities to the condition in which we or our predecessors first occupied the facilities. We are required to remove leasehold improvements and equipment installed in these facilities prior to termination of the leases. As of October 3, 2025 and September 27, 2024, the estimated cost for the removal of these assets that are recorded as asset retirement obligations in other long-term liabilities in our Consolidated Balance Sheets was $1.9 million.
Purchase Commitments—As of October 3, 2025, we had outstanding purchase commitments of $157.1 million primarily for purchases of services and inventory supply arrangements of which approximately $145.1 million are payments due within one year.
Litigation—From time to time we may be subject to commercial disputes, employment issues, claims by other companies in the industry that we have infringed their intellectual property rights and other similar claims and litigation. Any such claims may lead to future litigation and material damages and defense costs. We were not involved in any material legal proceedings during the year ended October 3, 2025

Historical Timeline

Fiscal YearFiled
2025Nov 14, 2025Showing above
2024Nov 12, 2024
2023Nov 13, 2023
2022Nov 14, 2022
2021Nov 15, 2021
2020Nov 18, 2020
2019Nov 26, 2019
2018Nov 16, 2018
2017Nov 15, 2017
2016Nov 17, 2016
2015Nov 24, 2015

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

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