Balance Sheet Components

12 Months Ended

Jan. 31, 2021

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

Note 5. Balance Sheet Components

Allowance for Doubtful Accounts

Allowance for doubtful accounts, which is presented within accounts receivable, was $2.7 million and $3.2 million as of January 31, 2021 and 2020, respectively.

Prepaid Expenses and Other Current Assets

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

	January 31,
	2021		2020
Prepaid expenses	$	11,672	$	16,416
Capitalized qualifying implementation costs incurred in a hosting arrangement that is a service contract, net of amortization (1)		1,672		1,202
Other current assets		3,441		4,247
Total prepaid expenses and other current assets	$	16,785	$	21,865

(1) Capitalized stock-based compensation expense, which is included in these amounts, was not material for the periods presented. The accumulated amortization of the capitalized costs was $1.4 million and $0.6 million as of January 31, 2021 and 2020, respectively. Amortization expense related to capitalized costs was not material for the fiscal years ended January 31, 2021 and 2020. We have not recorded any related impairment charges during the periods presented.

Property and Equipment, Net

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

	January 31,
	2021			2020
Servers and related equipment	$	352,224		$	312,369
Leasehold improvements		80,558			79,979
Computer hardware		25,810			23,086
Furniture and fixtures		14,157			14,192
Construction in progress		11,422			18,370
Total property and equipment		484,171			447,996
Less: accumulated depreciation		(324,023	)		(257,020	)
Total property and equipment, net	$	160,148		$	190,976

As of January 31, 2021, the gross carrying amount of property and equipment included $256.0 million of servers and related equipment and $7.1 million of construction in progress acquired under finance leases, and the accumulated depreciation of property and equipment acquired under these finance leases was $152.5 million. As of January 31, 2020, the gross carrying amount of property and equipment included $216.4 million of servers and related equipment and $16.3 million of construction in progress acquired under finance leases, and the accumulated depreciation of property and equipment acquired under these finance leases was $98.0 million.    

Depreciation expense related to property and equipment was $68.1 million, $58.2 million and $46.3 million for the fiscal years ended January 31, 2021, 2020 and 2019, respectively. Included in these amounts were depreciation expense for servers and related equipment acquired under finance leases in the amount of $54.6 million, $43.4 million and $26.3 million, for the same periods respectively. Construction in progress primarily consists of servers and networking equipment and storage infrastructure being provisioned in our data center facilities. Interest capitalized to property and equipment was not material for the periods presented.

Operating Lease Right-of-Use Assets, Net

Operating lease right-of-use assets, net consisted of the following (in thousands):

	January 31,
	2021			2020
Operating lease right-of-use assets	$	270,428		$	233,255
Less: accumulated amortization		(76,175	)		(35,449	)
Operating lease right-of-use assets, net	$	194,253		$	197,806

Other Long-term Assets

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

	January 31,
	2021		2020
Deposits, noncurrent	$	2,707	$	2,726
Internally developed software costs, net of amortization (1) (2)		16,071		14,521
On-premises software, net of amortization (2) (3)		8,749		10,594
Other assets, noncurrent		5,247		4,140
Other long-term assets	$	32,774	$	31,981

(1) Capitalized stock-based compensation expense, which is included in these amounts, was $5.8 million and $5.0 million as of January 31, 2021 and 2020, respectively.

(2) The accumulated amortization of capitalized software costs in the aggregate was $11.2 million and $1.7 million as of January 31, 2021 and 2020, respectively. Amortization expense related to capitalized software was $9.5 million and $1.7 million for the fiscal years ending January 31, 2021 and 2020, respectively. We have not recorded any material impairment charges during the periods presented.

(3) The estimated useful lives of on-premises software range from three to four years.