The company discontinued its Preferred Supply Program in February 2024, indicating a shift in strategy as industry capacity conditions improved and product lead times reduced. This program was initially launched to provide customers with prioritized capacity during periods of high demand.

Consistent with the weak macroeconomic environment, most of the company's factory expansion activity remains paused and planned capital investments have been reduced through fiscal 2025. This indicates a cautious approach to growth in the near term.

Despite the slowing economic environment, the company remains committed to investing in new and enhanced products, including development systems software, and in its design and manufacturing process technologies. This is viewed as essential for maintaining their competitive position.

The company is actively managing inventory levels and reducing production levels in response to adverse economic conditions. This demonstrates proactive management in the face of uncertainty.

The company incurred special charges related to restructuring of acquired and existing wafer fabrication operations to increase operational efficiency. This indicates a commitment to improving profitability.

Management intends to vigorously defend their legal positions and expects to prevail in ongoing tax disputes. This indicates confidence in their compliance and risk management.

The company acknowledges the impact of global economic conditions on their operating results, net sales and profitability. This includes uncertain economic conditions in U.S., China and Europe, increases in interest rates, high inflation or instability in the banking sector.

The company acknowledges the risks associated with foreign sales, suppliers, and operations. This includes economic uncertainty in the worldwide markets served by us, political instability, trade restrictions and changes in tariffs.

The company acknowledges the risk of attacks on their IT systems. This includes interruptions in and unauthorized access to our IT systems, attacks on or security vulnerabilities of our products, or our improper handling of data.

The company acknowledges the intense competition in the markets they serve. This includes pricing pressures, reduced sales or reduced market share.

The company acknowledges the importance of changes in demand in the markets that they serve and the overall rate of growth or contraction of such markets.

The company acknowledges the importance of obtaining adequate foundry and assembly and test capacity and supplies at acceptable prices.

The company is actively managing inventory levels and reducing production levels in response to adverse economic conditions. This demonstrates proactive management in the face of uncertainty.

The company incurred special charges related to restructuring of acquired and existing wafer fabrication operations to increase operational efficiency. This indicates a commitment to improving profitability.

The company has increased the percentage of assembly and test operations performed internally, which provides significant cost savings and increased control over the manufacturing process.

The company remains committed to investing in new and enhanced products, including development systems software, and in its design and manufacturing process technologies. This is viewed as essential for maintaining their competitive position.

R&D expenses decreased $16.4 million, or 5.8%, for the three months ended December 31, 2023 over the same period last year. R&D expenses increased $37.1 million, or 4.5%, for the nine months ended December 31, 2023 over the same period last year.

The company employs proprietary design and manufacturing processes in developing our embedded control products. We believe our processes afford us both cost-effective designs in existing and derivative products and greater functionality in new product designs.

The company repurchased approximately 7.4 million shares of common stock for $594.7 million under the existing authorization. This demonstrates a commitment to returning capital to shareholders.

The company declared a quarterly cash dividend of $0.450 per share, indicating a continued commitment to returning capital to shareholders.

Capital expenditures are primarily for the expansion of production capacity and the addition of research and development equipment. This indicates a focus on long-term growth.

Because the actions by Russia against Ukraine are in conflict with our Guiding Values, we chose to cease shipments into Russia and Belarus, and we will continue to comply with applicable U.S. sanctions regarding Ukraine.

The company must comply with federal, state, local and foreign governmental regulations related to the use, storage, emissions, discharge and disposal of hazardous substances used in our products and manufacturing processes, or that are the result of our manufacturing operations, such as greenhouse gases.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, in August 2012, the SEC released investigation, and disclosure requirements regarding the use of "conflict" minerals mined from the Democratic Republic of Congo and adjoining countries.

The decrease in net sales in the three months ended December 31, 2023 compared to the three months ended December 31, 2022 was primarily due to adverse economic conditions, including slowing economic activity, increasing business uncertainty, persistent inflation and higher interest rates.

The decreases in Asia net sales in the three and nine months ended December 31, 2023 compared to the three and nine months ended December 31, 2022 were due to unfavorable business conditions and weakening demand in the China market.

The company acknowledges the risks associated with foreign sales, suppliers, and operations. This includes economic uncertainty in the worldwide markets served by us, political instability, trade restrictions and changes in tariffs.