Financial Instruments

12 Months Ended

Feb. 02, 2025

Investments, Debt and Equity Securities [Abstract]

Fair Value Measurements

We define fair value as the exchange price that would be received from sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure our financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Three levels of inputs may be used to measure fair value:

•Level 1 - Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities;

•Level 2 - Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments; and

•Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs are based on our own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation.

Cash Equivalents, Marketable Securities and Restricted Cash

We measure our cash equivalents, marketable securities and restricted cash at fair value on a recurring basis. We classify our cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because they are valued using either quoted market prices or inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. Our fixed income available-for-sale securities consist of high quality, investment grade securities from diverse issuers. The valuation techniques used to measure the fair value of our marketable securities were derived from non-binding market consensus prices that are corroborated by observable market data or quoted market prices for similar instruments.

The following tables summarize our cash equivalents, marketable securities and restricted cash by significant investment categories and their classification within the fair value hierarchy at the end of fiscal 2024 and 2025 (in thousands):


	At the End of Fiscal 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash Equivalents		Marketable Securities		Restricted Cash
Level 1

Money market accounts	$	—	$	—	$	—	$	32,422	$	22,827	$	—	$	9,595
Level 2
U.S. government treasury notes	340,168		584		(1,374)		339,378		1,834		337,544		—
U.S. government agencies	4,397		2		—		4,399		—		4,399		—
Corporate debt securities	419,051		1,163		(2,262)		417,952		—		417,952		—
Foreign government bonds	1,290		6		(16)		1,280		—		1,280		—
Asset-backed securities	65,947		279		(316)		65,910		—		65,910		—
Municipal bonds	1,510		—		(38)		1,472		—		1,472		—
Total	$	832,363	$	2,034	$	(4,006)	$	862,813	$	24,661	$	828,557	$	9,595


	At the End of Fiscal 2025
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash Equivalents		Marketable Securities		Restricted Cash
Level 1

Money market accounts	$	—	$	—	$	—	$	264,067	$	258,750	$	—	$	5,317
Level 2
U.S. government treasury notes	360,578		735		(146)		361,167		27,663		333,504		—
U.S. government agencies	1,400		—		—		1,400		—		1,400		—
Corporate debt securities	395,532		1,903		(55)		397,380		—		397,380		—
Foreign government bonds	700		3		—		703		—		703		—
Asset-backed securities	64,926		331		(7)		65,250		—		65,250		—

Total	$	823,136	$	2,972	$	(208)	$	1,089,967	$	286,413	$	798,237	$	5,317

The amortized cost and estimated fair value of our marketable securities are shown below by contractual maturity (in thousands):


	At the End of Fiscal 2025
	Amortized Cost		Fair Value
Due within one year	$	291,418	$	291,868
Due in one to five years	503,190		505,502
Due in five to ten years	865		867
Total	$	795,473	$	798,237

Unrealized losses on our marketable securities have not been recorded into income because we do not intend to sell nor is it more likely than not that we will be required to sell these investments prior to recovery of their amortized cost basis. The fair value of our marketable securities is impacted by the interest rate environment and related credit spreads. The credit ratings associated with our marketable securities are highly rated and the issuers continue to make timely principal and interest payments. As a result, there were no credit or non-credit impairment charges recorded in fiscal 2023, 2024, and 2025. The following table presents the fair values and gross unrealized losses for those investments that were in a continuous unrealized loss position at the end of fiscal 2024 and 2025, aggregated by investment category (in thousands):


	At the End of Fiscal 2024
	12 Months or less				Greater than 12 months				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. government treasury notes	$	166,565	$	(725)	$	47,842	$	(649)	$	214,407	$	(1,374)

Corporate debt securities	116,247		(260)		104,810		(2,002)		221,057		(2,262)
Foreign government bonds	—		—		573		(16)		573		(16)
Asset-backed securities	12,029		(34)		13,800		(282)		25,829		(316)
Municipal bonds	—		—		1,472		(38)		1,472		(38)
Total	$	294,841	$	(1,019)	$	168,497	$	(2,987)	$	463,338	$	(4,006)


	At the End of Fiscal 2025
	12 Months or less				Greater than 12 months				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. government treasury notes	$	99,397	$	(146)	$	—	$	—	$	99,397	$	(146)

Corporate debt securities	33,619		(55)		1,998		—		35,617		(55)

Asset-backed securities	10,702		(7)		30		—		10,732		(7)

Total	$	143,718	$	(208)	$	2,028	$	—	$	145,746	$	(208)

Realized gains or losses on sale of marketable securities were not significant for all periods presented.

Strategic Investments

Strategic investments primarily include equity investments in privately-held companies, which do not have a readily determinable fair value. We deem our strategic investments as Level 3 in the fair value hierarchy as nonrecurring fair value measurements may include observable and unobservable inputs. At the end of fiscal 2024 and 2025, the carrying amount of our strategic investments was $5.0 million and $36.7 million that is included in other assets, non-current in our consolidated balance sheets. Adjustments made under the fair value measurement alternative were either none or not material during fiscal 2023, 2024 and 2025.

Other Financial Instruments

The investments held in our NQDC trust are considered trading securities that are measured at fair value using Level 1 inputs. The fair value of these investments was $3.2 million and $8.4 million at the end of fiscal 2024 and 2025.