Note 3. Balance Sheet Components

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):

	July 31,		January 31,
	2016		2016
Prepaid expenses	$	11,032	$	8,410
Tenant incentives receivable under our headquarters lease in Redwood City	—			3,024
Other current assets		2,738		3,295
Total prepaid expenses and other current assets	$	13,770	$	14,729

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	July 31,			January 31,
	2016			2016
Servers	$	117,948		$	111,015
Leasehold improvements		63,930			68,082
Computer hardware and software		10,676			11,009
Furniture and fixtures		12,649			12,485
Construction in progress		8,415			4,808
Total property and equipment		213,618			207,399
Less: accumulated depreciation		(106,525	)		(86,907	)
Total property and equipment, net	$	107,093		$	120,492

As of July 31, 2016, the gross carrying amount of property and equipment included $19.4 million of servers and $5.7 million of construction in progress acquired under capital leases, and the accumulated depreciation of property and equipment acquired under these capital leases was $5.4 million. As of January 31, 2016, the gross carrying amount of property and equipment included $13.9 million of servers and $1.2 million of construction in progress acquired under capital leases, and the accumulated depreciation of property and equipment acquired under these capital leases was $2.4 million.

Depreciation expense related to property and equipment was $9.8 million and $8.4 million for the three months ended July 31, 2016 and 2015, respectively, and $20.4 million and $16.4 million for the six months ended July 31, 2016 and 2015, respectively. Included in these amounts was depreciation expense for servers acquired under capital leases in the amount of $1.6 million and $0.4 million for the three months ended July 31, 2016 and 2015, respectively, and $2.9 million and $0.6 million for the six months ended July 31, 2016 and 2015, respectively. Construction in progress primarily consists of servers, networking equipment and storage infrastructure being provisioned in our third party datacenter hosting facilities as well as leasehold improvements. In addition, the amounts of interest capitalized to property and equipment were immaterial for the three and six months ended July 31, 2016 and 2015.