Leases

3 Months Ended

Apr. 30, 2019

7. Leases

The Company has entered into operating leases for its worldwide office buildings and research and development facilities. The leases expire at various dates through fiscal year 2028, some of which include options to extend the lease for up to 3 years. For the three months ended April 30, 2019, the Company recorded approximately $0.7 million of operating lease expense. The Company's short-term leases and finance leases are immaterial.

The cumulative effect of the changes made to the condensed consolidated balance sheet as of February 1, 2019 for the adoption of Topic 842 was as follows:

	Balance as of					Opening Balance as of
	January 31, 2019		Adjustment			February 1, 2019
	(in thousands)
Operating lease right-of-use assets	$	—	$	8,581		$	8,581
Prepaid expenses and other current assets	$	6,206	$	(174	)	$	6,032
Accrued and other current liabilities	$	24,700	$	(279	)	$	24,421
Operating lease liabilities, current	$	—	$	2,534		$	2,534
Operating lease liabilities, non-current	$	—	$	6,152		$	6,152

Supplemental cash flow information related to leases is as follows:

	Three Months Ended
	April 30, 2019
	(in thousands)
Cash paid for operating leases included in operating cash flows	$	727
Supplemental non-cash information related to lease liabilities arising from obtaining right-of-use assets	$	65
Weighted-average remaining lease term – operating leases	4.25 years
Weighted-average discount rate – operating leases		5.00	%

Future minimum lease payments for the operating lease liabilities are as follows:

	As of
	April 30, 2019
Fiscal Year	(in thousands)
2020 (9 months remaining)	$	2,067
2021		2,148
2022		1,782
2023		1,567
2024		491
Thereafter		516
Total future annual minimum lease payments		8,571
Less: interest		(546	)
Total lease liabilities	$	8,025

Prior to the adoption of the new leases guidance, future minimum undiscounted lease payments as of January 31, 2019 were as follows:

	As of
	January 31, 2019
Fiscal Year	(in thousands)
2020	$	2,592
2021		1,040
2022		356
2023		143
2024		147
Thereafter		576
Total future annual minimum lease payments	$	4,854

The increased liabilities as of April 30, 2019 were attributable to a renewal option reasonably certain to be exercised during the three months ended April 30, 2019.