Leases

12 Months Ended

Feb. 04, 2024

We 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 corporate headquarters facility in Santa Clara, California with total lease payments of $100.2 million that include rent escalation and abatement clauses. The sublease of a majority of the space with total lease payments of $89.4 million commenced in August 2022. During the fourth quarter of fiscal 2024, we took possession of the remaining space with lease payments of $10.8 million that will commence in May 2024.

During the second quarter of fiscal 2024, we ceased use of our former corporate headquarters that resulted in certain impairment and abandonment charges - see Note 9 for further information.

We also lease certain engineering test equipment under financing agreements. These finance leases have a lease term of 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
	2022		2023		2024
Fixed operating lease cost	$	37,598	$	47,533	$	48,158

Variable lease cost (1)	10,228		8,521		10,840
Short-term lease cost (12 months or less)	4,178		3,787		4,284

Finance lease cost:
Amortization of finance lease right-of-use assets	384		3,028		4,400
Interest on finance lease liabilities	42		330		406
Total finance lease cost	$	426	$	3,358	$	4,806

Total lease cost	$	52,430	$	63,199	$	68,088

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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
	2023			2024
Operating leases:
Weighted-average remaining lease term (in years)	5.2			5.0
Weighted-average discount rate	6.1		%	7.1		%

Finance leases:
Finance lease right-of-use assets, gross (1)	$	17,596		$	17,596
Accumulated amortization (1)	(3,412)			(7,812)
Finance lease right-of-use assets, net (1)	$	14,184		$	9,784
Finance lease liabilities, current (2)	5,432			4,204
Finance lease liabilities, non-current (3)	4,765			180
Total finance lease liabilities	$	10,197		$	4,384
Weighted-average remaining lease term (in years)	3.3			2.4
Weighted-average discount rate	5.1		%	5.4		%

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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
	2023		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases	$	49,955	$	40,704
Financing cash outflows for finance leases	$	6,138	$	7,292
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	80,962	$	23,581
Finance leases	$	14,019	$	—

Future lease payments under our non-cancelable leases at the end of fiscal 2024 are as follows (in thousands):


Fiscal Years Ending	Operating Leases		Finance Leases
2025	$	55,313	$	4,347
2026	41,288		183
2027	23,722		—
2028	26,660		—
2029	22,348		—
Thereafter	32,227		—
Total future lease payments	$	201,558	$	4,530
Less: imputed interest	(33,689)		(146)
Present value of total lease liabilities	$	167,869	$	4,384