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Income Taxes (Tables) | 12 Months Ended
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Jan. 28, 2024
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 28, 2024 |  | January 29, 2023 |  | January 30, 2022
Domestic | $ | (306,039) |  |  | $ | (59,961) |  |  | $ | (16,593) |
Foreign | (735,516) |  |  | 138,428 |  |  | 155,662 |
Total | $ | (1,041,555) |  |  | $ | 78,467 |  |  | $ | 139,069 |
Schedule of components of income tax expense | The provision for income taxes consisted of the following:
| Fiscal Year Ended
(in thousands) | January 28, 2024 |  | January 29, 2023 |  | January 30, 2022
Current income tax provision (benefit) |  |  |  |  |
Federal | $ | 1,758 |  |  | $ | 8,291 |  |  | $ | 1,078 |
State | 1 |  |  | 17 |  |  | 211 |
Foreign | 8,750 |  |  | 24,231 |  |  | 16,374 |
Subtotal | 10,509 |  |  | 32,539 |  |  | 17,663 |
Deferred income tax provision (benefit) |  |  |  |  |
Federal | 50,938 |  |  | (23,730) |  |  | (1,797) |
State | 51 |  |  | (28) |  |  | — |
Foreign | (10,979) |  |  | 8,563 |  |  | (327) |
Subtotal | 40,010 |  |  | (15,195) |  |  | (2,124) |
Provision for income taxes | $ | 50,519 |  |  | $ | 17,344 |  |  | $ | 15,539 |
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 28, 2024 |  | January 29, 2023 |  | January 30, 2022
Federal income tax at statutory rate | $ | (218,726) |  |  | $ | 16,478 |  |  | $ | 29,194 |
State income taxes, net of federal benefit | (9,989) |  |  | (4,134) |  |  | 272 |
Foreign taxes differential, including withholding taxes | (36,408) |  |  | (11,636) |  |  | (6,611) |
Tax credits generated | (6,054) |  |  | (6,922) |  |  | (9,008) |
Changes in valuation allowance | 149,209 |  |  | 6,500 |  |  | 1,778 |
Gain on intra-entity asset transfer of intangible assets | — |  |  | (8,735) |  |  | — |
Changes in uncertain tax positions | 1,877 |  |  | 826 |  |  | 180 |
Equity compensation | 2,929 |  |  | 430 |  |  | (2,698) |
GILTI and Subpart F income | — |  |  | 7,385 |  |  | 441 |
Transaction costs | — |  |  | 13,729 |  |  | — |
Goodwill impairment | 193,699 |  |  | — |  |  | — |
Nondeductible officers compensation | 741 |  |  | 1,326 |  |  | 3,052 |
Other | (26,759) |  |  | 2,097 |  |  | (1,061) |
Provision for income taxes | $ | 50,519 |  |  | $ | 17,344 |  |  | $ | 15,539 |
Schedule of components of deferred tax assets and liabilities | The components of the net deferred income tax assets and liabilities at January 28, 2024 and January 29, 2023 were as follows:
(in thousands) | January 28, 2024 |  | January 29, 2023
Non-current deferred tax assets: |  |  |
Inventory reserve | $ | 8,091 |  |  | $ | 6,127 |
Bad debt reserve | 447 |  |  | 20 |
Foreign tax credits | 1,737 |  |  | 3,294 |
Research credit carryforward | 78,593 |  |  | 61,699 |
NOL carryforward | 107,030 |  |  | 95,955 |
Payroll and related accruals | 8,253 |  |  | 10,433 |
Share-based compensation | 2,904 |  |  | 4,014 |
Foreign pension deferred | 632 |  |  | 474 |
Accrued sales reserves | 3,498 |  |  | 684 |
Research and development charges | 20,274 |  |  | 14,835 |
Leasing deferred assets | 7,001 |  |  | 3,932 |
OID interest | 12,812 |  |  | 19,421 |
Other reserves | 1,176 |  |  | 8,255 |
Section 163(J) Limitation | 17,696 |  |  | 3,711 |
Other deferred assets | 4,181 |  |  | 554 |
Intangibles | 72,946 |  |  | 5,296 |
Valuation allowance | (304,355) |  |  | (156,850) |
Total non-current deferred tax assets | 42,916 |  |  | 81,854 |
Non-current deferred tax liabilities: |  |  |
Property, plant and equipment | (7,937) |  |  | (7,952) |
Goodwill and other intangibles | (7,406) |  |  | (6,273) |
Leasing deferred liabilities | (5,866) |  |  | (3,780) |
Other non-current deferred tax liabilities | (4,523) |  |  | (5,130) |
Total non-current deferred tax liabilities | (25,732) |  |  | (23,135) |
Net deferred tax assets | $ | 17,184 |  |  | $ | 58,719 |
Summary of changes in the valuation allowance | Changes in the valuation allowance for the three years ended January 28, 2024 are summarized in the table below:
| Fiscal Year Ended
(in thousands) | January 28, 2024 |  | January 29, 2023 |  | January 30, 2022
Beginning balance | $ | 156,850 |  |  | $ | 17,506 |  |  | $ | 15,751 |
Assumed valuation allowance from Sierra Wireless Acquisition | — |  |  | 116,528 |  |  | — |
Additions | 147,505 |  |  | 22,816 |  |  | 2,605 |
Releases | — |  |  | — |  |  | (850) |
Ending balance | $ | 304,355 |  |  | $ | 156,850 |  |  | $ | 17,506 |
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 28, 2024 |  | January 29, 2023
Beginning balance | $ | 31,471 |  |  | $ | 27,051 |
Assumed uncertain tax positions related to Sierra Wireless Acquisition | — |  |  | 3,578 |
Net additions based on tax positions related to the current year | 1,016 |  |  | 700 |
Additions based on tax positions related to prior years | 5,227 |  |  | 533 |
Reductions as a result of lapsed statutes | (834) |  |  | — |
Reductions for settlements with tax authorities | (332) |  |  | (391) |
Ending balance | $ | 36,548 |  |  | $ | 31,471 |
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 28, 2024 |  | January 29, 2023
Deferred tax assets - non-current | $ | 20,519 |  |  | $ | 17,446 |
Other long-term liabilities | 14,632 |  |  | 12,641 |
Total uncertain tax positions | $ | 35,151 |  |  | $ | 30,087 |

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