Balance Sheet Components

9 Months Ended

Nov. 05, 2023

Balance Sheet Components Disclosure [Abstract]

Inventory

Inventory consists of the following (in thousands):


	At the End of
	Fiscal 2023		Third Quarter of Fiscal 2024
Raw materials	$	24,896	$	20,704
Finished goods	25,256		25,507
Inventory	$	50,152	$	46,211

Property and Equipment, Net

Property and equipment, net consists of the following (in thousands):


	At the End of
	Fiscal 2023		Third Quarter of Fiscal 2024
Test equipment	$	315,290	$	359,073
Computer equipment and software	262,574		308,671
Furniture and fixtures	9,693		9,915
Leasehold improvements	71,235		95,919
Capitalized software development costs	15,806		30,831
Total property and equipment	674,598		804,409
Less: accumulated depreciation and amortization	(402,153)		(466,850)
Property and equipment, net	$	272,445	$	337,559

Depreciation and amortization expense related to property and equipment was $22.2 million and $28.7 million for the third quarter of fiscal 2023 and 2024, and $61.0 million and $82.5 million for the first three quarters of fiscal 2023 and 2024.

Intangible Assets, Net

Intangible assets, net consist of the following (in thousands):


	At the End of
	Fiscal 2023						Third Quarter of Fiscal 2024
	Gross Carrying Value		Accumulated Amortization		Net Carrying Amount		Gross Carrying Value		Accumulated Amortization		Net Carrying Amount
Technology patents	$	19,125	$	(14,826)	$	4,299	$	19,125	$	(15,787)	$	3,338
Developed technology	83,211		(43,366)		39,845		83,211		(53,284)		29,927
Customer relationships	6,459		(2,166)		4,293		6,459		(2,856)		3,603
Trade name	3,623		(2,838)		785		3,623		(3,623)		—
Intangible assets, net	$	112,418	$	(63,196)	$	49,222	$	112,418	$	(75,550)	$	36,868

Intangible assets amortization expense was $4.1 million and $4.0 million for the third quarter of fiscal 2023 and 2024, and $12.3 million for the first three quarters of fiscal 2023 and 2024. At the end of the third quarter of fiscal 2024, the weighted-average remaining amortization period was 1.2 years for technology patents, 2.3 years for developed technology, and 3.9 years for customer relationships. We record amortization of technology patents in general and administrative expenses due to their defensive nature, developed technology in cost of product revenue, and customer relationships and trade name in sales and marketing expenses in the condensed consolidated statements of operations.

At the end of the third quarter of fiscal 2024, future expected amortization expense for intangible assets is as follows (in thousands):


Fiscal Years Ending	Estimated Future Amortization Expense
Remainder of 2024	$	3,856
2025	15,425
2026	12,830
2027	3,107
2028	1,054
Thereafter	596
Total	$	36,868

Goodwill

As of the end of fiscal 2023 and the third quarter of fiscal 2024, goodwill was $361.4 million. There were no impairments to goodwill during the third quarter and first three quarters of fiscal 2023 and 2024.

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consist of the following (in thousands):


	At the End of
	Fiscal 2023		Third Quarter of Fiscal 2024
Taxes payable	$	16,615	$	18,132
Accrued marketing	14,228		15,649
Accrued cloud and outside services	7,644		5,077
Supply chain-related accruals (1)	23,545		34,966
Accrued service logistics and professional services	7,927		8,135
Acquisition earn-out and deferred consideration	3,556		1,000
Finance lease liabilities, current	5,432		5,576
Customer deposits from contracts with customers	17,824		20,993
Other accrued liabilities	26,978		31,713
Total accrued expenses and other liabilities	$	123,749	$	141,241

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(1) Primarily consists of warranty reserves and accruals related to our inventory and inventory purchase commitments with our contract manufacturers.