Leases

9 Months Ended

Oct. 31, 2021

Note 5. Leases

We have entered into various non-cancellable operating lease agreements for certain of our offices and data centers with lease periods expiring primarily between fiscal years 2022 and 2029. Certain of these arrangements have free or escalating rent payment provisions and optional renewal or termination clauses. Our operating leases typically include variable lease payments, which are primarily comprised of common area maintenance and utility charges for our offices and power and network connections for our data centers, that are determined based on actual consumption. Our operating lease agreements do not contain any residual value guarantees, covenants, or other restrictions.

We have also entered into various finance lease arrangements to obtain servers and related equipment for our data center operations. These agreements are primarily for four years and certain of these arrangements have optional renewal or termination clauses. The leases are secured by the underlying leased servers and related equipment.

We sublease certain floors of our Redwood City, San Francisco, and London offices. Our current subleases have total lease terms ranging from 11 to 96 months that will expire at various dates by fiscal year 2025.

The components of lease cost, which were included in operating expenses in our condensed consolidated statements of operations, were as follows (in thousands):


	Three Months Ended						Nine Months Ended
	October 31,						October 31,
	2021			2020			2021			2020
Finance lease cost:
Amortization of finance lease right-of-use assets	$	13,366		$	14,102		$	39,516		$	41,027
Interest on finance lease liabilities		913			1,416			3,128			4,440
Operating lease cost, gross		13,295			13,552			40,817			40,095
Variable lease cost, gross		2,269			2,180			6,647			7,074
Sublease income		(2,472	)		(2,707	)		(8,692	)		(7,888	)
Total lease cost (1)	$	27,371		$	28,543		$	81,416		$	84,748

(1)

Short-term lease cost was not material for the periods presented and is not included in the table above.

As of October 31, 2021, maturities of our operating and finance lease liabilities, which do not include short-term leases and variable lease payments, are as follows (in thousands):


Years ending January 31:	Operating Leases (1)			Finance Leases
Remainder of 2022	$	13,641		$	12,798
2023		50,893			42,493
2024		49,785			19,490
2025		34,213			1,574
2026		30,052			—
Thereafter		64,574			—
Total lease payments	$	243,158		$	76,355
Less: imputed interest	$	(32,647	)	$	(3,141	)
Present value of total lease liabilities	$	210,511		$	73,214

(1)

Non-cancellable sublease proceeds for the remainder of the fiscal year ending January 31, 2022 and the fiscal years ending January 31, 2023, 2024, and 2025 of $1.5 million, $8.8 million, $2.3 million, and $2.1 million, respectively, are not included in the table above.