Leases

12 Months Ended

Feb. 05, 2023

LeasesWe lease office facilities under non-cancelable operating lease agreements expiring through July 2032. Our lease agreements do not contain any material residual value guarantees or restrictive covenants.

In June 2022, we entered into an eight-year sublease through July 2030 for a new headquarters facility in Santa Clara, California with total lease payments of $100.2 million that include rent escalation and abatement clauses. The sublease of space with total lease payments of $89.4 million commenced in August 2022. Additional space with lease payments of $10.8 million will commence in May 2024 and end in July 2030 and therefore are excluded from our future lease payments disclosure below.

During fiscal 2021, we ceased use of certain leased facilities that resulted in the recognition of certain exit costs - see Note 10 for further information.

We also lease certain engineering test equipment under financing agreements. These finance leases are three years and contain a bargain purchase option at the end of the respective lease term. It is reasonably certain that the bargain purchase option will be exercised.

The components of lease costs were as follows (in thousands):


	Fiscal Year Ended
	2021		2022		2023
Fixed operating lease cost	$	37,411	$	37,598	$	47,533

Variable lease cost (1)	9,168		10,228		8,521
Short-term lease cost (12 months or less)	5,734		4,178		3,787

Finance lease cost:
Amortization of finance lease right-of-use assets	—		384		3,028
Interest on finance lease liabilities	—		42		330
Total finance lease cost	$	—	$	426	$	3,358

Total lease cost	$	52,313	$	52,430	$	63,199

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(1) Variable lease cost predominantly included common area maintenance charges.

Supplemental information related to leases is as follows (in thousands):


	Fiscal Year Ended
	2022			2023
Operating leases:
Weighted-average remaining lease term (in years)	4.5			5.2
Weighted-average discount rate	5.7		%	6.1		%

Finance leases:
Finance lease right-of-use assets, gross (1)	$	3,577		$	17,596
Accumulated amortization(1)	(384)			(3,412)
Finance lease right-of-use assets, net (1)	$	3,193		$	14,184
Finance lease liabilities, current (2)	1,035			5,432
Finance lease liabilities, non-current (3)	1,487			4,765
Total finance lease liabilities	$	2,522		$	10,197
Weighted-average remaining lease term (in years)	3.6			3.3
Weighted-average discount rate	2.7		%	5.1		%

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(1) Included in the consolidated balance sheets within property and equipment, net.

(2) Included in the consolidated balance sheets within accrued expenses and other liabilities.

(3) Included in the consolidated balance sheets within other liabilities, non-current.

Supplemental cash flow information related to leases is as follows (in thousands):


	Fiscal Year Ended
	2022		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases	$	36,648	$	49,955
Financing cash outflows for finance leases	$	1,000	$	6,138
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	7,517	$	80,962
Finance leases	$	3,577	$	14,019

Future lease payments under our non-cancelable leases at the end of fiscal 2023 are as follows (in thousands):


Fiscal Years Ending	Operating Leases		Finance Leases
2024	$	45,153	$	5,839
2025	48,315		4,728
2026	36,366		183
2027	19,384		—
2028	21,062		—
Thereafter	44,274		—
Total future lease payments	$	214,554	$	10,750
Less: imputed interest	(38,374)		(553)
Present value of total lease liabilities	$	176,180	$	10,197