v3.22.2.2
Deferred Revenue and Commissions
 9 Months Ended
Nov. 06, 2022
Revenue from Contract with Customer [Abstract]  
Deferred Revenue and Commissions Deferred Revenue and Commissions
Deferred Commissions
Deferred commissions consist of incremental costs paid to our sales force to obtain customer contracts.
Changes in total deferred commissions during the periods presented are as follows (in thousands):
Third Quarter of Fiscal
First Three Quarters of Fiscal
2022202320222023
Beginning balance
$195,965 $235,681 $187,924 $246,307 
Additions49,822 35,827 121,802 98,949 
Recognition of deferred commissions(37,467)(36,376)(101,406)(110,124)
Ending balance$208,320 $235,132 $208,320 $235,132 
Of the $235.1 million total deferred commissions balance at the end of the third quarter of fiscal 2023, we expect to recognize approximately 30% as commission expense over the next 12 months and the remainder thereafter.
There was no impairment related to capitalized commissions for the third quarter and first three quarters of fiscal 2022 and 2023.
Deferred Revenue
Deferred revenue primarily consists of amounts that have been invoiced but have not yet been recognized as revenue including performance obligations pertaining to subscription services.
Changes in total deferred revenue during the periods presented are as follows (in thousands):
Third Quarter of Fiscal
First Three Quarters of Fiscal
2022202320222023
Beginning balance
$909,814 $1,178,691 $843,697 $1,079,872 
Additions208,542 313,279 611,006 854,535 
Recognition of deferred revenue(168,606)(243,751)(504,953)(686,188)
Ending balance$949,750 $1,248,219 $949,750 $1,248,219 
Revenue recognized during the third quarter of fiscal 2022 and 2023 from deferred revenue at the beginning of each respective period was $163.2 million and $216.8 million. Revenue recognized during the first three quarters of fiscal 2022 and 2023 from deferred revenue at the beginning of each respective period was $356.2 million and $466.0 million.
Remaining Performance Obligations
Total remaining performance obligations (RPO) which is contracted but not recognized revenue was $1.6 billion at the end of the third quarter of fiscal 2023. RPO consists of both deferred revenue and non-cancelable amounts that are expected to be invoiced and recognized as revenue in future periods. Product orders are generally cancelable until delivery has occurred, and as such unfulfilled product orders are excluded from RPO. Of the $1.6 billion contracted but not recognized revenue at the end of the third quarter of fiscal 2023, we expect to recognize approximately 47% over the next 12 months, and the remainder thereafter.