Convertible Senior Notes and Related Transactions (Tables)

3 Months Ended

Apr. 29, 2023

The Notes consist of the following (in thousands):


	Apr 29, 2023		Jan 28, 2023
2028 Notes
Principal	$	275,000	$	—
Unamortized debt discount and issuance costs1	(9,406)		—
Net carrying amount	$	265,594	$	—

Fair value, net2	$	268,127	$	—

2024 Notes
Principal	$	115,144	$	300,000
Unamortized debt issuance costs	(332)		(1,069)
Net carrying amount	$	114,812	$	298,931

Fair value, net2	$	118,226	$	331,862

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Notes:

1The unamortized debt discount related to the 2028 Notes is due to the result of the modification accounting for a portion of the exchanged notes. This discount represents both an increase in the fair value of the embedded conversion option, which is calculated as the difference between the fair value of the embedded conversion option immediately before and after the exchange, and cash paid to modified noteholders. The change in conversion option value reduces the carrying amount of the convertible debt instrument with a corresponding increase in additional paid-in capital. The additional cash paid to modified noteholders increased the debt discount. This debt discount is being amortized to interest expense over five years.

2The fair value of the Notes is determined based on inputs that are observable in the market and have been classified as Level 2 in the fair value hierarchy.