Restructuring and Impairment

12 Months Ended

Feb. 02, 2025

Restructuring and Related Activities [Abstract]

Restructuring and Impairment

Restructuring and Impairment

The following table summarizes our restructuring and impairment charges during fiscal 2024 and 2025 (in thousands):

	Fiscal Year Ended
	2024		2025
Severance and other termination benefit costs	$	16,846	$	9,526
Lease impairment and abandonment charges	16,766		6,375
Total restructuring and impairment	$	33,612	$	15,901

Workforce Realignment Plan

In February 2024, we approved a workforce realignment plan (the Plan) to better align our resources with our business strategy that reduced our headcount by nearly 250 employees globally. We recognized total restructuring costs of $27.9 million associated with one-time severance and other termination benefits, of which $18.0 million and $9.9 million was recognized in fiscal 2024 and 2025. The restructuring costs recognized included $1.2 million and $0.4 million in cost of revenue in our consolidated statement of operations for fiscal 2024 and 2025. The Plan was completed by the third quarter of fiscal 2025.

The following table summarizes the activity related to our liability associated with the Plan that is included within accrued compensation and benefits in our consolidated balance sheets (in thousands):

	Severance and Other Termination Benefits
Balance at the end of fiscal 2024	$	18,009
Restructuring charges	9,855
Cash payments	(27,864)
Balance at the end of fiscal 2025	$	—

Facilities Abandonment and Impairment

During the second quarter of fiscal 2024, we ceased use of our former corporate headquarters that resulted in the recognition of $16.8 million and $6.4 million in lease impairment and abandonment charges during fiscal 2024 and 2025. The impairment charges represent the amount that the carrying value of the underlying operating lease right-of-use assets exceeded their estimated fair values, which were determined by utilizing a discounted cash flow approach that incorporated a sublease assumption. The incremental impairment charge recognized during fiscal 2025 resulted from a revision to the underlying sublease assumptions