Leases

6 Months Ended

Jul. 31, 2022

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 2023 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 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						Six Months Ended
	July 31,						July 31,
	2022			2021			2022			2021
Finance lease cost:
Amortization of finance lease right-of-use assets	$	11,502		$	13,068		$	23,463		$	26,150
Interest on finance lease liabilities		547			1,044			1,213			2,215
Operating lease cost, gross		12,542			13,742			25,131			27,522
Variable lease cost, gross		2,009			2,076			4,001			4,378
Sublease income		(2,317	)		(3,027	)		(4,573	)		(6,221	)
Total lease cost (1)	$	24,283		$	26,903		$	49,235		$	54,044

As of July 31, 2022, 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
2023	$	27,479		$	24,451
2024		54,232			19,829
2025		36,135			1,574
2026		31,589			—
2027		30,251			—
Thereafter		35,972			—
Total lease payments	$	215,658		$	45,854
Less: imputed interest	$	(25,436	)	$	(1,352	)
Present value of total lease liabilities	$	190,222		$	44,502

(1) Non-cancellable sublease proceeds for the remainder of the fiscal year ending January 31, 2023 and the fiscal years ending January 31, 2024 and 2025 of $3.5 million, $4.5 million, and $4.2 million, respectively, are not included in the table above.