Deferred Revenue and Commissions

12 Months Ended

Feb. 06, 2022

Revenue from Contract with Customer [Abstract]

Deferred Revenue and Commissions

Deferred Revenue and Commissions

Deferred Commissions

Changes in total deferred commissions during the periods presented are as follows (in thousands):

	Fiscal Year Ended
	2021		2022
Beginning balance	$	139,204	$	187,924
Additions	183,151		217,595
Recognition of deferred commissions	(134,431)		(159,212)
Ending balance	$	187,924	$	246,307

During fiscal 2020, 2021 and 2022, we recognized sales commission expenses of $142.5 million, $150.2 million, and $175.9 million, respectively. Of the $246.3 million total deferred commissions balance at the end of fiscal 2022, we expect to recognize approximately 33% as sales commission expense over the next 12 months and the remainder thereafter.

There was no impairment related to capitalized commissions for fiscal 2020, 2021 or 2022.

Deferred Revenue

Changes in total deferred revenue during the periods presented are as follows (in thousands):

	Fiscal Year Ended
	2021		2022
Beginning balance	$	697,288	$	843,697
Additions	703,800		937,510
Recognition of deferred revenue	(557,391)		(701,335)
Ending balance	$	843,697	$	1,079,872

During fiscal 2021 and 2022, we recognized approximately $353.1 million and $442.7 million, respectively, in revenue pertaining to deferred revenue as of the beginning of each period.

Remaining Performance Obligations

Total contracted but not recognized revenue was $1.4 billion at the end of fiscal 2022. Contracted but not recognized revenue consists of both deferred revenue and non-cancelable amounts that are expected to be invoiced and recognized as revenue in future periods. The value of orders that are contracted but have not been fulfilled and that can be canceled by customers, are excluded from remaining performance obligations. Of the $1.4 billion contracted but not recognized revenue at the end of fiscal 2022, we expect to recognize approximately 47% over the next 12 months, and the remainder thereafter.