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Deferred Revenue and Commissions
 9 Months Ended
Nov. 03, 2024
Revenue from Contract with Customer [Abstract]  
Deferred Revenue and Commissions Deferred Revenue and Commissions
Deferred Commissions
Deferred commissions consist of incremental costs paid to our sales force to obtain customer contracts.
Changes in total deferred commissions during the periods presented are as follows (in thousands):
Third Quarter of Fiscal
First Three Quarters of Fiscal
2024202520242025
Beginning balance
$255,417 $298,179 $245,856 $304,332 
Additions50,183 39,737 130,312 108,777 
Recognition of deferred commissions(40,683)(40,406)(111,251)(115,599)
Ending balance$264,917 $297,510 $264,917 $297,510 
Of the $297.5 million total deferred commissions balance at the end of the third quarter of fiscal 2025, we expect to recognize approximately 29% as commission expense over the next 12 months and the remainder thereafter.
There was no impairment related to capitalized commissions for the third quarter and first three quarters of fiscal 2024 and 2025.
Deferred Revenue
Deferred revenue primarily consists of amounts that have been invoiced but have not yet been recognized as revenue including performance obligations pertaining to subscription services.
Changes in total deferred revenue during the periods presented are as follows (in thousands):
Third Quarter of Fiscal
First Three Quarters of Fiscal
2024202520242025
Beginning balance
$1,437,043 $1,623,660 $1,385,650 $1,594,522 
Additions368,708 419,745 975,149 1,129,256 
Recognition of deferred revenue(309,244)(361,949)(864,292)(1,042,322)
Ending balance$1,496,507 $1,681,456 $1,496,507 $1,681,456 
Revenue recognized during the third quarter of fiscal 2024 and 2025 from deferred revenue at the beginning of each respective period was $280.4 million and $310.6 million. Revenue recognized during the first three quarters of fiscal 2024 and 2025 from deferred revenue at the beginning of each respective period was $589.1 million and $703.5 million.
Remaining Performance Obligations
Total remaining performance obligations (RPO) which is contracted but not recognized revenue was $2.4 billion at the end of the third quarter of fiscal 2025. Total RPO includes $35.7 million in remaining non-cancelable product orders, of which $13.5 million relates to a lessor arrangement that is further discussed in Note 8. RPO consists of both deferred revenue and non-cancelable amounts that are expected to be invoiced and recognized as revenue in future periods. Product orders are generally cancelable until delivery has occurred, and as such, unfulfilled product orders that are cancelable are excluded from RPO. Of the $2.4 billion RPO at the end of the third quarter of fiscal 2025, we expect to recognize approximately 47% over the next 12 months, and the remainder thereafter.