XML 26 R16.htm IDEA: XBRL DOCUMENT v3.24.3
Restructuring and Impairment
9 Months Ended
Nov. 03, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and Impairment Restructuring and Impairment
Workforce Realignment
In February 2024, we initiated a workforce realignment plan (the Plan) that impacted nearly 250 employees globally, resulting in total restructuring costs of $27.9 million associated with one-time severance and other termination benefits. We recognized $18.0 million in restructuring costs in the fourth quarter of fiscal 2024 and the remaining $9.9 million was recognized in the first quarter of fiscal 2025. Of the restructuring costs recognized in the first quarter of fiscal 2025, $9.5 million is presented in restructuring and impairment and $0.4 million is presented in cost of revenue in our condensed consolidated statement of operations for the first three quarters of fiscal 2025. The execution of the Plan and related payments was completed by the end of the third quarter of fiscal 2025.
Facilities Abandonment and Impairment
During the first three quarters of fiscal 2024, we recognized $16.8 million in abandonment and impairment charges related to leases associated with our former corporate headquarters that we ceased use during the second quarter of fiscal 2024. The impairment charge represents the amount that the carrying value of the underlying operating lease right-of-use assets exceeded their estimated fair values, which were determined by utilizing a discounted cash flow approach that incorporated a sublease assumption. During the first three quarters of fiscal 2025, we recognized $6.4 million in incremental abandonment and impairment charges related to these leases. The incremental impairment charge was due to a revision to the underlying sublease assumptions during the first quarter of fiscal 2025.