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Acquisition and Divestiture (Tables)

12 Months Ended

Jan. 29, 2023

Business Combination and Asset Acquisition [Abstract]

Allocation of total purchase price

The purchase price consideration is as follows:

(in thousands)			January 29, 2023
Cash consideration paid to common shareholders			$	1,213,091
Cash consideration paid to holders of Sierra Wireless equity compensation awards (a)			37,669
Total cash consideration paid to selling equity holders			$	1,250,760
Sierra Wireless debt settled at close			58,791
Total purchase price consideration			$	1,309,551

(a) Consideration for Sierra Wireless equity compensation awards consists of $37.7 million paid for the pre-combination portion of unvested equity awards that were accelerated as part of the Arrangement Agreement. The fair value of the unvested equity awards attributable to the post-combination period of $45.7 million is included in the Company's Statements of Income for the fiscal year ended January 29, 2023.

The Company's preliminary allocation of the purchase price as of January 12, 2023 is summarized below:

(in thousands)			January 12, 2023
Total purchase price consideration, net of cash acquired $68,794			$	1,240,757
Assets:
Accounts receivable, net			92,633
Inventories			96,339
Other current assets			72,724
Property, plant and equipment			29,086
Intangible assets			214,780
Prepaid taxes			3,001
Deferred tax assets			22,595
Other assets			14,878
Liabilities:
Accounts payable			50,413
Accrued liabilities			148,654
Deferred tax liabilities			4,824
Other long-term liabilities			32,785
Net assets acquired, excluding goodwill			$	309,360
Goodwill			$	931,397

The Company recognized $74.5 million of acquisition-related costs that were expensed in the Statements of Income in the fiscal year ended January 29, 2023 as follows:

(in thousands)			Share-based compensation acceleration expense						Other acquisition costs expensed						Total
Cost of sales			$	802					$	—					$	802
Selling, general and administrative			33,937						28,798						$	62,735
Product development and engineering			11,010						—						$	11,010
Total acquisition costs expensed			$	45,749					$	28,798					$	74,547

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

A summary of the preliminary allocation of the purchase price to amortizable intangible assets as of January 12, 2023 follows:

(in thousands)

Estimated Useful Life

January 12, 2023

Amortizable intangible assets:

Developed technology

1-6 years

$

152,780

Customer relationships

2-10 years

53,000

Trade name

2-10 years

9,000

Total amortizable intangible assets

$

214,780

Business Acquisition, Pro Forma Information

The following table provides a summary of the pro forma unaudited consolidated results of operations as if the Sierra Wireless Acquisition had been completed on February 1, 2021:

						Fiscal Year Ended
						January 29, 2023						January 30, 2022
(in thousands)						(unaudited)						(unaudited)
Total revenues						$	1,415,721					$	1,214,067
Net income (loss)						22,174						(144,342)

X

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

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