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v3.23.1

Income Taxes (Tables) | 12 Months Ended
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Jan. 29, 2023
Income Tax Disclosure [Abstract] |
Schedule of regional income before income taxes | The Company's regional income before income taxes and equity in net gains (losses) of equity method investments was as follows:
| Fiscal Year Ended
(in thousands) | January 29, 2023 |  | January 30, 2022 |  | January 31, 2021
Domestic | $ | (59,961) |  |  | $ | (16,593) |  |  | $ | (26,170) |
Foreign | 138,428 |  |  | 155,662 |  |  | 89,145 |
Total | $ | 78,467 |  |  | $ | 139,069 |  |  | $ | 62,975 |
Schedule of components of income tax expense | The provision for income taxes consisted of the following:
| Fiscal Year Ended
(in thousands) | January 29, 2023 |  | January 30, 2022 |  | January 31, 2021
Current income tax provision (benefit) |  |  |  |  |
Federal | $ | 8,291 |  |  | $ | 1,078 |  |  | $ | 6,716 |
State | 17 |  |  | 211 |  |  | (69) |
Foreign | 24,231 |  |  | 16,374 |  |  | 4,801 |
Subtotal | 32,539 |  |  | 17,663 |  |  | 11,448 |
Deferred income tax provision (benefit) |  |  |  |  |
Federal | (23,730) |  |  | (1,797) |  |  | (7,012) |
State | (28) |  |  | — |  |  | 20 |
Foreign | 8,563 |  |  | (327) |  |  | (1,019) |
Subtotal | (15,195) |  |  | (2,124) |  |  | (8,011) |
Provision for income taxes | $ | 17,344 |  |  | $ | 15,539 |  |  | $ | 3,437 |
Schedule of income tax reconciliation | The provision for income taxes reconciles to the amount computed by applying the statutory federal rate to income before taxes as follows:
| Fiscal Year Ended
(in thousands) | January 29, 2023 |  | January 30, 2022 |  | January 31, 2021
Federal income tax at statutory rate | $ | 16,478 |  |  | $ | 29,194 |  |  | $ | 13,309 |
State income taxes, net of federal benefit | (4,134) |  |  | 272 |  |  | (186) |
Foreign taxes differential, including withholding taxes | (11,636) |  |  | (6,611) |  |  | (2,688) |
Tax credits generated | (6,922) |  |  | (9,008) |  |  | (4,361) |
Changes in valuation allowance | 6,500 |  |  | 1,778 |  |  | (438) |
Gain on intra-entity asset transfer of intangible assets | (8,735) |  |  | — |  |  | — |
Changes in uncertain tax positions | 826 |  |  | 180 |  |  | 1,841 |
Equity compensation | 430 |  |  | (2,698) |  |  | (3,573) |
GILTI and Subpart F income | 7,385 |  |  | 441 |  |  | 270 |
Transaction costs | 13,729 |  |  | — |  |  | — |
Nondeductible officers compensation | 1,326 |  |  | 3,052 |  |  | 1,702 |
Other | 2,097 |  |  | (1,061) |  |  | (2,439) |
Provision for income taxes | $ | 17,344 |  |  | $ | 15,539 |  |  | $ | 3,437 |
Schedule of components of deferred tax assets and liabilities | The components of the net deferred income tax assets and liabilities at January 29, 2023 and January 30, 2022 were as follows:
(in thousands) | January 29, 2023 |  | January 30, 2022
Non-current deferred tax assets: |  |  |
Inventory reserve | $ | 6,127 |  |  | $ | 5,734 |
Bad debt reserve | 20 |  |  | 26 |
Foreign tax credits | 3,294 |  |  | 3,304 |
Research credit carryforward | 61,699 |  |  | 13,498 |
NOL carryforward | 95,955 |  |  | 7,839 |
Payroll and related accruals | 10,433 |  |  | 11,743 |
Share-based compensation | 4,014 |  |  | 5,256 |
Foreign pension deferred | 474 |  |  | 1,412 |
Accrued sales reserves | 684 |  |  | 1,012 |
Research and development charges | 14,835 |  |  | 7,263 |
Goodwill and other intangibles | 17,979 |  |  | — |
Leasing deferred assets | 3,932 |  |  | 4,311 |
OID interest | 19,421 |  |  | 723 |
Other reserves | 8,255 |  |  | — |
Other deferred assets | 4,265 |  |  | 1,516 |
Valuation allowance | (156,850) |  |  | (17,506) |
Total non-current deferred tax assets | 94,537 |  |  | 46,131 |
Non-current deferred tax liabilities: |  |  |
Goodwill and other intangibles | — |  |  | (1,530) |
Property, plant and equipment | (26,908) |  |  | (6,990) |
Repatriation of foreign earnings | — |  |  | (4,709) |
Leasing deferred liabilities | (3,780) |  |  | (4,139) |
Other non-current deferred tax liabilities | (5,130) |  |  | (2,093) |
Total non-current deferred tax liabilities | (35,818) |  |  | (19,461) |
Net deferred tax assets | $ | 58,719 |  |  | $ | 26,670 |
Summary of changes in the valuation allowance | Changes in the valuation allowance for the three years ended January 29, 2023 are summarized in the table below:
| Fiscal Year Ended
(in thousands) | January 29, 2023 |  | January 30, 2022 |  | January 31, 2021
Beginning balance | $ | 17,506 |  |  | $ | 15,751 |  |  | $ | 16,189 |
Assumed valuation allowance from Sierra Wireless Acquisition | 116,528 |  |  | — |  |  | — |
Additions | 22,816 |  |  | 2,605 |  |  | 1,208 |
Releases | — |  |  | (850) |  |  | (1,646) |
Ending balance | $ | 156,850 |  |  | $ | 17,506 |  |  | $ | 15,751 |
Schedule of gross unrecognized tax benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (before federal impact of state items) is as follows:
| Fiscal Year Ended
(in thousands) | January 29, 2023 |  | January 30, 2022
Beginning balance | $ | 27,051 |  |  | $ | 26,850 |
Assumed uncertain tax positions related to Sierra Wireless Acquisition | 3,578 |  |  | — |
Net additions based on tax positions related to the current year | 700 |  |  | 925 |
Additions based on tax positions related to prior years | 533 |  |  | 464 |
Reductions as a result of lapsed statutes | — |  |  | (991) |
Reductions for settlements with tax authorities | (391) |  |  | (197) |
Ending balance | $ | 31,471 |  |  | $ | 27,051 |
Schedule of liability for uncertain tax positions | The liability for UTP is reflected on the Balance Sheets as follows:
| Fiscal Year Ended
(in thousands) | January 29, 2023 |  | January 30, 2022
Deferred tax assets - non-current | $ | 17,446 |  |  | $ | 16,346 |
Other long-term liabilities | 12,641 |  |  | 9,335 |
Total uncertain tax positions | $ | 30,087 |  |  | $ | 25,681 |

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