Convertible Senior Notes and Related Transactions (Tables)

9 Months Ended

Oct. 28, 2023

Debt Disclosure [Abstract]

Schedule of Convertible Debt

The Notes consist of the following (in thousands):

	Oct 28, 2023		Jan 28, 2023
2028 Notes1
Principal	$	275,000	$	—
Unamortized debt discount and issuance costs2	(8,449)		—
Net carrying amount	$	266,551	$	—
Fair value, net3	$	274,342	$	—
2024 Notes
Principal	$	115,144	$	300,000
Unamortized debt issuance costs	(159)		(1,069)
Net carrying amount	$	114,985	$	298,931
Fair value, net3	$	117,327	$	331,862

______________________________________________________________________

Notes:

1For the three and nine months ended October 28, 2023, the weighted average effective interest rate including amortization of debt discount and issuance costs on the 2028 Notes was 4.5%.

2The 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.

3The 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.

Schedule of Interest Expense on Convertible Notes

Interest expense for the Notes for the three and nine months ended October 28, 2023 and October 29, 2022 consists of the following (in thousands):

	2028 Notes				2024 Notes
	Oct 28, 2023		Oct 29, 2022		Oct 28, 2023		Oct 29, 2022
	Three Months Ended
Coupon interest	$	2,578	$	—	$	325	$	1,500
Amortization of debt discount and issuance costs	415		—		50		215
Total	$	2,993	$	—	$	375	$	1,715

	Nine Months Ended
Coupon interest	$	5,557	$	—	$	2,247	$	4,500
Amortization of debt discount and issuance costs	894		—		334		644
Total	$	6,451	$	—	$	2,581	$	5,144