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Income Taxes
 12 Months Ended
Feb. 02, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The geographical breakdown of income before provision for income taxes is as follows (in thousands):
 Fiscal Year Ended
 202320242025
Domestic$39,004 $(2,565)$32,566 
International52,804 93,151 115,268 
Total$91,808 $90,586 $147,834 
The components of the provision for income taxes are as follows (in thousands):
 Fiscal Year Ended
 202320242025
Current:   
Federal$— $2,407 $268 
State5,999 9,678 5,474 
Foreign12,020 15,239 26,631 
Total$18,019 $27,324 $32,373 
Deferred:   
Federal$(639)$— $— 
State(99)— — 
Foreign1,456 1,951 8,722 
Total$718 $1,951 $8,722 
Provision for income taxes$18,737 $29,275 $41,095 
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
 202320242025
Tax at federal statutory rate$19,280 $19,023 $31,045 
State tax, net of federal benefit4,625 7,559 3,966 
Stock-based compensation expense(11,976)(21,779)(50,981)
Research and development tax credits(26,634)(19,033)(36,379)
U.S. taxes on foreign income19,065 10,956 12,701 
Foreign-derived intangible income deduction
— (8,706)(2,882)
Foreign rate differential(425)(5,861)4,327 
Withholding tax2,339 3,490 6,820 
Change in valuation allowance10,631 37,529 69,432 
Non-deductible expenses2,091 2,943 2,646 
Other(259)3,154 400 
Provision for income taxes$18,737 $29,275 $41,095 
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
 20242025
Deferred tax assets:  
Net operating loss carryforwards$111,750 $32,227 
Tax credit carryover196,288 248,502 
Accruals and reserves31,827 34,259 
Deferred revenue108,558 110,176 
Stock-based compensation expense17,041 19,067 
ASC 842 lease liabilities40,101 42,375 
Capitalized research and development297,016 430,114 
Other3,117 3,240 
Total deferred tax assets$805,698 $919,960 
Valuation allowance(661,783)(755,509)
Total deferred tax assets, net of valuation allowance$143,915 $164,451 
Deferred tax liabilities:  
Depreciation and amortization$(48,497)$(62,494)
Deferred commissions(65,192)(70,219)
ASC 842 right-of-use assets(34,729)(39,552)
Acquired intangibles and goodwill(1,428)— 
Interest income(6,584)(13,423)
Total deferred tax liabilities$(156,430)$(185,688)
Net deferred tax liabilities$(12,515)$(21,237)
At the end of fiscal 2025, the undistributed earnings of $336.0 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 2025, we had net operating loss carryforwards for state income tax purposes of approximately $522.0 million that begin to expire in fiscal 2026.
We had federal and state research and development tax credit carryforwards of approximately $200.3 million and $166.8 million at the end of fiscal 2025. 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 $62.8 million and $93.7 million, respectively, during fiscal 2024 and 2025.
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 2025, we completed an analysis through the end of fiscal 2025 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
 202320242025
Gross unrecognized tax benefits—beginning balance$51,582 $68,897 $82,115 
Decreases related to tax positions taken during prior years— (274)(1,597)
Increases related to tax positions taken during prior years2,172 — 3,193 
Decreases related to tax positions taken during current year
— (16)— 
Increases related to tax positions taken during current year
15,143 13,508 17,679 
Gross unrecognized tax benefits—ending balance$68,897 $82,115 $101,390 
At the end of fiscal 2025, our gross unrecognized tax benefit was approximately $101.4 million, $7.0 million of which if recognized, would have an impact on the effective tax rate.
At the end of fiscal 2025, 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.