Leases

12 Months Ended

Feb. 02, 2025

Leases [Abstract]

Leases

Leases

We lease office and data center 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.

During the second quarter of fiscal 2024, we ceased use of our former corporate headquarters that resulted in certain impairment and abandonment charges during fiscal 2024 and 2025. Refer to Note 9—Restructuring and Impairment 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 that we have exercised or expect to exercise at the end of the respective lease terms.

The components of lease costs were as follows (in thousands):

	Fiscal Year Ended
	2023		2024		2025
Fixed operating lease cost	$	47,533	$	48,158	$	48,392
Variable lease cost (1)	8,521		10,840		13,789
Short-term lease cost (12 months or less)	3,787		4,284		4,073
Finance lease cost:
Amortization of finance lease right-of-use assets	3,028		4,400		3,510
Interest on finance lease liabilities	330		406		144
Total finance lease cost	$	3,358	$	4,806	$	3,654
Total lease cost	$	63,199	$	68,088	$	69,908

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(1) Variable lease cost predominantly included common area maintenance charges.

Supplemental information related to leases is as follows (in thousands):

	At the End of Fiscal
	2024			2025
Operating leases:
Weighted-average remaining lease term (in years)	5.0			4.9
Weighted-average discount rate	7.1		%	7.4		%
Finance leases:
Finance lease right-of-use assets, net (1)	$	9,784		$	5,555
Finance lease liabilities, current (2)	$	4,204		$	387
Finance lease liabilities, non-current (3)	180			—
Total finance lease liabilities	$	4,384		$	387
Weighted-average remaining lease term (in years)	2.4			1.0
Weighted-average discount rate	5.4		%	3.3		%

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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
	2024		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows for operating leases	$	40,704	$	51,949
Financing cash outflows for finance leases	$	7,292	$	5,155
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	23,581	$	56,813

Future lease payments under our non-cancelable leases at the end of fiscal 2025 are as follows (in thousands):

Fiscal Years Ending	Operating Leases		Finance Leases
2026	$	55,145	$	390
2027	36,687		—
2028	39,628		—
2029	32,173		—
2030	28,915		—
Thereafter	24,775		—
Total future lease payments	$	217,323	$	390
Less: imputed interest	(36,557)		(3)
Present value of total lease liabilities	$	180,766	$	387

Lessor Arrangement

During fiscal 2024 and 2025, we, as a lessor, entered into non-cancelable arrangements to lease our data storage solutions and subscription services. The arrangements include multiple seven-year leases that both commenced during fiscal 2025 and will commence in fiscal 2026 with total net consideration of $174.8 million. The arrangements provide an end-of-term option to purchase the leased assets for a pre-determined price.

We determined, at inception of the respective arrangements, that each of the leases include sales-type leases, an operating lease, and non-lease components. The non-lease components are comprised of subscription support services and professional services. The total net consideration for each lease was allocated to these components based on relative standalone selling price.

Total net consideration for the leases that commenced during fiscal 2025 was $134.8 million. We recognized $47.4 million in product revenue related to the sales-type lease components during fiscal 2025. The associated profit was $36.1 million, based on the product revenue recognized less certain costs, during fiscal 2025. Subscription services revenue related to the operating lease and non-lease components recognized during fiscal 2025 was $7.2 million.

Future minimum gross lease payments for the leases that commenced during fiscal 2025 allocated to the sales-type leases and operating lease components were as follows (in thousands). The remaining lease payments of $100.0 million allocated to the non-lease components, are excluded from the table below.

Fiscal Years Ending	Sales-Type Leases		Operating Leases
2026	$	10,510	$	5,388
2027	8,990		4,749
2028	11,434		2,304
2029	13,738		—
2030	13,738		—
Thereafter	20,985		—
Total future lease payments to be received	$	79,395	$	12,441