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Income Taxes
 12 Months Ended
Feb. 04, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The geographical breakdown of income (loss) before provision for income taxes is as follows (in thousands):
 Fiscal Year Ended
 202220232024
Domestic$(192,058)$39,004 $(2,565)
International63,562 52,804 93,151 
Total$(128,496)$91,808 $90,586 
The components of the provision for income taxes are as follows (in thousands):
 Fiscal Year Ended
 202220232024
Current:   
Federal$— $— $2,407 
State592 5,999 9,678 
Foreign12,525 12,020 15,239 
Total$13,117 $18,019 $27,324 
Deferred:   
Federal$— $(639)$— 
State— (99)— 
Foreign1,646 1,456 1,951 
Total$1,646 $718 $1,951 
Provision for income taxes$14,763 $18,737 $29,275 
The reconciliation of income taxes at the federal statutory income tax rate to the provision for income taxes is as follows (in thousands):
 Fiscal Year Ended
 202220232024
Tax at federal statutory rate$(26,984)$19,280 $19,023 
State tax, net of federal benefit468 4,625 7,559 
Stock-based compensation expense(19,658)(11,976)(21,779)
Research and development tax credits(16,783)(26,634)(19,033)
U.S. taxes on foreign income25,059 19,065 10,956 
Foreign-derived intangible income deduction
— — (8,706)
Foreign rate differential(1,698)(425)(5,861)
Withholding tax143 2,339 3,490 
Change in valuation allowance48,270 10,631 37,529 
Non-deductible expenses4,381 2,091 2,943 
Other1,565 (259)3,154 
Provision for income taxes$14,763 $18,737 $29,275 
Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of our deferred tax assets and liabilities were as follows (in thousands):
 At the End of Fiscal
 20232024
Deferred tax assets:  
Net operating loss carryforwards$198,495 $111,750 
Tax credit carryover171,775 196,288 
Accruals and reserves34,506 31,827 
Deferred revenue87,026 108,558 
Stock-based compensation expense25,564 17,041 
ASC 842 lease liabilities40,772 40,101 
Capitalized research and development154,027 297,016 
Other4,950 3,117 
Total deferred tax assets$717,115 $805,698 
Valuation allowance(598,997)(661,783)
Total deferred tax assets, net of valuation allowance$118,118 $143,915 
Deferred tax liabilities:  
Depreciation and amortization$(31,744)$(48,497)
Deferred commissions(53,421)(65,192)
Convertible debt— — 
ASC 842 right-of-use assets(36,366)(34,729)
Acquired intangibles and goodwill(4,702)(1,428)
Interest income(2,521)(6,584)
Total deferred tax liabilities$(128,754)$(156,430)
Net deferred tax liabilities$(10,636)$(12,515)
At the end of fiscal 2024, the undistributed earnings of $236.1 million from non-U.S. operations held by our foreign subsidiaries are designated as permanently reinvested outside the U.S. Accordingly, no additional U.S. income taxes or additional foreign withholding taxes have been provided thereon. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable.
At the end of fiscal 2024, we had net operating loss carryforwards for federal income tax purposes of approximately $377.6 million and state income tax purposes of approximately $509.0 million. The federal net operating loss carryforwards have an indefinite life while the state net operating loss carryforwards begin to expire in 2025.
We had federal and state research and development tax credit carryforwards of approximately $152.8 million and $137.9 million at the end of fiscal 2024. The federal research and development tax credit carryforwards will expire commencing in 2028, while the state research and development tax credit carryforwards have no expiration date.
Realization of deferred tax assets is dependent on future taxable income, the existence and timing of which is uncertain. Based on our history of losses, management has determined that it is more likely than not that the U.S. deferred tax assets will not be realized, and accordingly has placed a full valuation allowance on the net U.S. deferred tax assets. The valuation allowance increased by $44.4 million and $62.8 million, respectively, during fiscal 2023 and 2024.
Utilization of the net operating loss carryforwards and credits may be subject to substantial annual limitation due to the ownership change limitations provided by Section 382 of the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization. In March 2024, we completed an analysis through the end of fiscal 2024 to evaluate whether there are any limitations of our net operating loss carryforwards and concluded that there was not a limitation that would result in the permanent expiration of carryforwards before they are utilized.
Uncertain Tax Positions
The activity related to the unrecognized tax benefits is as follows (in thousands):
 Fiscal Year Ended
 202220232024
Gross unrecognized tax benefits—beginning balance$39,571 $51,582 $68,897 
Decreases related to tax positions taken during prior years(173)— (274)
Increases related to tax positions taken during prior years1,201 2,172 — 
Increases related to tax positions taken during current year
10,983 15,143 13,508 
Gross unrecognized tax benefits—ending balance$51,582 $68,897 $82,115 
At the end of fiscal 2024, our gross unrecognized tax benefit was approximately $82.1 million, $7.0 million of which if recognized, would have an impact on the effective tax rate.
At the end of fiscal 2024, we had no current or cumulative interest and penalties related to uncertain tax positions.
It is difficult to predict the final timing and resolution of any particular uncertain tax position. Based on our assessment, including experience and complex judgments about future events, we do not expect that changes in the liability for unrecognized tax benefits during the next twelve months will have a significant impact on our consolidated financial position or results of operations.
We file income tax returns in the U.S. federal jurisdiction as well as many U.S. states and foreign jurisdictions. The tax returns for fiscal years 2009 and forward remain open to examination by the major jurisdictions in which we are subject to tax. The tax returns for fiscal years outside the normal statutes of limitation remain open to audit by tax authorities due to tax attributes generated in those early years, which have been carried forward and may be audited in subsequent years when utilized.