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Leases

3 Months Ended

Apr. 30, 2020

Finance Lease

In December 2017, the Company entered into a lease agreement for 106,230 rentable square feet of office space (the “Premises”) to accommodate its growing employee base in New York City. The Company received delivery of the Premises on January 1, 2018 to commence construction to renovate the Premises. Total estimated aggregate base rent payments over the initial 12-year term of the lease are $87.3 million and payments began in July 2019. The Company has the option to extend the term of the lease by an additional 5 years.

Operating Leases

The Company has entered into non-cancelable operating leases, primarily related to rental of office space expiring through 2032. The Company recognizes operating lease costs on a straight-line basis over the term of the agreement, taking into account adjustments for market provisions such as free or escalating base monthly rental payments or deferred payment terms such as rent holidays that defer the commencement date of the required payments. The Company may receive renewal or expansion options, leasehold improvement allowances or other incentives on certain lease agreements.

In December 2019, the Company entered into a new agreement to lease approximately 40,000 square feet of office space in Dublin, Ireland, which commenced during the three months ended April 30, 2020 for a term of 12 years with two five-year renewal options. This agreement was determined to be an operating lease with total estimated aggregate base rent payments, excluding the renewal options, of approximately $27.0 million.

Lease Costs

The components of the Company’s lease costs included in its condensed consolidated statement of operations were as follows (in thousands):



	Three Months Ended April 30, 2020		Three Months Ended April 30, 2019
Finance lease cost:
Amortization of right-of-use assets	$	994	$	994
Interest on lease liabilities	884		905
Operating lease cost	1,823		967
Short-term lease cost	793		395
Total lease cost	$	4,494	$	3,261

Balance Sheet Components

The balances of the Company’s finance and operating leases were recorded on the condensed consolidated balance sheet as follows (in thousands):



	April 30, 2020		January 31, 2020
Finance Lease:
Property and equipment, net	$	38,418	$	39,411
Other accrued liabilities	4,698		4,633
Other liabilities, non-current	58,057		59,257
Operating Leases:
Operating lease right-of-use assets	$	32,965	$	11,147
Operating lease liabilities (current)	4,005		3,750
Operating lease liabilities, non-current	29,625		8,113

Supplemental Information

The following table presents supplemental information related to the Company’s finance and operating leases (in thousands, except weighted-average information):



	Three Months Ended April 30, 2020			Three Months Ended April 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance lease	$	884		$	—
Operating cash flows from operating leases	1,297			1,032
Financing cash flows from finance lease	1,135			—
Right-of-use assets obtained in exchange for lease obligations:
Finance lease	$	—		$	—
Operating leases	23,375			2,269
Weighted-average remaining lease term (in years):
Finance lease	9.7			10.7
Operating leases	8.7			4.8
Weighted-average discount rate:
Finance lease	5.6		%	5.6		%
Operating leases	5.0		%	6.1		%

Maturities of Lease Liabilities

Future minimum lease payments under non-cancelable finance and operating leases on an annual undiscounted cash flow basis as of April 30, 2020 were as follows (in thousands):



Year Ending January 31,	Finance Lease			Operating Leases
Remainder of 2021	$	6,055		$	3,625
2022	8,073			5,524
2023	8,073			5,557
2024	8,073			4,512
2025	8,445			4,125
Thereafter	42,829			18,180
Total minimum payments	81,548			41,523
Less imputed interest	(18,793		)	(7,893		)
Present value of future minimum lease payments	62,755			33,630
Less current obligations under leases	(4,698		)	(4,005		)
Non-current lease obligations	$	58,057		$	29,625

Excluded in the lease obligation table above is a new agreement to lease an additional 21,000 square feet of office space in New York City, which will be recognized as an operating lease upon the lease commencement date. The Company entered into this agreement in October 2019, but the lease has not yet commenced. The term of this new lease is five years with no renewal period. The total estimated aggregate base rent payments are $8.4 million with payments beginning four months subsequent to the commencement date. Also excluded in the lease obligation table above is a new agreement to lease approximately 16,000 square feet of office space in Palo Alto, which will be recognized as an operating lease upon the lease commencement date. The lease term is eight years with one option to extend for an additional five years. The total estimated aggregate base rent payments are $14.2 million with payments beginning four months subsequent to the commencement date. For both the New York City and Palo Alto leases, the lease commencement dates are uncertain given the impacts of the COVID-19 pandemic and associated construction and occupancy restrictions.

Leases