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Balance Sheet Components
9 Months Ended
Oct. 31, 2018
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components

Note 4. Balance Sheet Components

Prepaid Expenses and Other Current Assets

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

 

 

 

October 31,

 

 

January 31,

 

 

 

2018

 

 

2018

 

Prepaid expenses

 

$

11,652

 

 

$

8,494

 

Other current assets

 

 

3,385

 

 

 

2,897

 

Total prepaid expenses and other current assets

 

$

15,037

 

 

$

11,391

 

Property and Equipment, Net

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

 

 

 

October 31,

 

 

January 31,

 

 

 

2018

 

 

2018

 

Servers

 

$

195,594

 

 

$

170,422

 

Leasehold improvements

 

 

76,789

 

 

 

72,599

 

Computer hardware and software

 

 

19,711

 

 

 

14,558

 

Furniture and fixtures

 

 

13,625

 

 

 

14,254

 

Construction in progress

 

 

14,867

 

 

 

7,348

 

Total property and equipment

 

 

320,586

 

 

 

279,181

 

Less: accumulated depreciation

 

 

(187,212

)

 

 

(155,204

)

Total property and equipment, net

 

$

133,374

 

 

$

123,977

 

 

As of October 31, 2018, the gross carrying amount of property and equipment included $100.7 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 $47.1 million. As of January 31, 2018, the gross carrying amount of property and equipment included $74.7 million of servers and related equipment and $3.7 million of construction in progress acquired under capital leases, and the accumulated depreciation of property and equipment acquired under these capital leases was $29.1 million.

Depreciation expense related to property and equipment was $11.4 million and $9.9 million for the three months ended October 31, 2018 and 2017, respectively, and $34.7 million and $28.8 million for the nine months ended October 31, 2018 and 2017, respectively. Included in these amounts was depreciation expense for servers acquired under capital leases in the amount of $6.6 million and $4.9 million for the three months ended October 31, 2018 and 2017, respectively and $19.0 million and $13.3 million for nine months ended October 31, 2018 and 2017, respectively. Construction in progress primarily consists of servers and networking equipment and storage infrastructure being provisioned in our datacenter facilities. In addition, the amounts of interest capitalized to property and equipment were not material for the three and nine months ended October 31, 2018 and 2017.  

Other Long-term Assets

Other long-term assets consisted of the following (in thousands):

 

 

 

October 31,

 

 

January 31,

 

 

 

2018

 

 

2018

 

Deposits, non-current

 

$

2,593

 

 

$

2,934

 

Other assets, non-current

 

 

4,936

 

 

 

2,469

 

Other long-term assets

 

$

7,529

 

 

$

5,403

 

Internal-Use Software Costs

As of October 31, 2018, we capitalized $1.3 million in qualifying costs to develop software for internal use associated with the development of additional significant features and functionality to our products as part of other long-term assets. There were no material qualifying costs as of January 31, 2018. We have not incurred any amortization of the capitalized amounts for any of the periods presented.

As of October 31, 2018, we capitalized $1.6 million in qualifying implementation costs incurred in a hosting arrangement that is a service contract, which is presented in the same line item as prepayment of the fees for the associated hosting arrangement in the condensed consolidated balance sheets. There were no material qualifying costs as of January 31, 2018. The amortization of the capitalized implementation cost is not material for any of the periods presented.