Income Taxes (Tables)

12 Months Ended

Jul. 31, 2021

Income Tax Disclosure [Abstract]

Components of Income (Loss) Before Income Taxes

The components of income (loss) before income taxes are as follows:

	For the Fiscal Year Ended
(in thousands)	July 31, 2021		August 1, 2020		August 3, 2019
Income (loss) before income taxes
United States	$	(62,341)	$	(48,302)	$	31,657
Foreign	1,224		580		(836)
Total	$	(61,117)	$	(47,722)	$	30,821

Components of Provision for Income Tax Expense

The components of the provision (benefit) for income tax expense are as follows:

	For the Fiscal Year Ended
(in thousands)	July 31, 2021		August 1, 2020		August 3, 2019
Current:
Federal	$	(49,552)	$	(5,528)	$	(221)
State	(2,562)		1,768		2,431
Foreign	(191)		275		(67)
Total current	(52,305)		(3,485)		2,143
Deferred:
Federal	—		17,367		(5,464)
State	—		5,773		(2,667)
Foreign	64		(260)		(72)
Total deferred	64		22,880		(8,203)
Provision (benefit) for income taxes	$	(52,241)	$	19,395	$	(6,060)

Reconciliation of Effective Tax Rate to the Statutory Federal Rate

The reconciliation of our effective tax rate to the statutory federal rate is as follows:

	For the Fiscal Year Ended
(in thousands, except percentages)	July 31, 2021				August 1, 2020				August 3, 2019
Taxes at federal statutory rate	$	(12,835)	21.0	%	$	(10,022)	21.0	%	$	6,472	21.0	%
State taxes, net of federal effect	(2,417)		4.0	%	(4,868)		10.2	%	(1,068)		(3.5)	%
Stock-based compensation	(34,314)		56.1	%	(2,047)		4.3	%	(7,114)		(23.1)	%
CARES Act carryback benefit	(13,571)		22.2	%	(3,070)		6.4	%	—		0.0	%
Change in valuation allowance	21,789		(35.7)	%	43,153		(90.4)	%	—		0.0	%
R&D credits	(13,582)		22.2	%	(6,536)		13.7	%	(5,984)		(19.4)	%
Uncertain tax positions	(40)		0.1	%	2,343		(4.9)	%	2,030		6.6	%
Return to provision	783		(1.3)	%	(777)		1.6	%	(1,821)		(5.9)	%
Other	1,946		(3.1)	%	1,219		(2.5)	%	1,425		4.6	%
Effective tax rate	$	(52,241)	85.5	%	$	19,395	(40.6)	%	$	(6,060)	(19.7)	%

Components of Net Deferred Tax Assets

The components of net deferred tax assets are as follows:

(in thousands)	July 31, 2021		August 1, 2020		August 3, 2019
Deferred tax assets:
Inventory reserve and UNICAP	$	23,007	$	17,015	$	11,696
Deferred rent	—		—		232
Accruals and reserves	5,997		4,632		6,623
Research and development credits	27,964		11,611		4,778
Stock-based compensation	17,062		11,717		6,195
Deferred revenue	276		435		713
Operating lease liability	35,969		39,380		—
Net operating losses	10,136		739		—
Other	1,105		349		302
Gross deferred tax assets	121,516		85,878		30,539
Less: valuation allowance	(77,604)		(43,153)		—
Deferred tax assets, net of valuation allowance	43,912		42,725		30,539
Deferred tax liabilities:
Depreciation and amortization	(13,110)		(11,044)		(8,275)
Operating lease right-of-use assets	(28,607)		(31,267)		—
Other	(1,907)		(81)		(89)
Gross deferred tax liabilities	(43,624)		(42,392)		(8,364)
Net deferred tax assets, net of valuation allowance	$	288	$	333	$	22,175

Reconciliation of Unrecognized Tax Benefits

A reconciliation of our unrecognized tax benefits is as follows:

(in thousands)	July 31, 2021		August 1, 2020		August 3, 2019
Balance at the beginning of the year	$	16,693	$	10,995	$	5,503
Lapse of statute of limitations	(1,909)		(939)		(422)
Increase related to prior period tax positions	495		1,074		2,602
Decrease related to prior period tax positions	—		—		(183)
Increase related to current year tax positions	8,346		5,563		3,495
Balance at the end of the year	$	23,625	$	16,693	$	10,995

Summary of Valuation Allowance

A reconciliation of our valuation allowance is as follows:

(in thousands)	July 31, 2021		August 1, 2020
Beginning of year valuation allowance	$	43,153	$	—
Valuation allowance charged / (credited) to expense	40,995		43,153
Valuation allowance charged / (credited) to other accounts	(6,544)		—
End of year valuation allowance	$	77,604	$	43,153