XML 24 R13.htm IDEA: XBRL DOCUMENT v3.21.2
Leases
 9 Months Ended
Oct. 31, 2021
Leases [Abstract]  
Leases Leases
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.
The Company entered into a new agreement to lease approximately 16,000 square feet of office space in Palo Alto for a term of 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, which was April 13, 2021.
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 October 31,Nine Months Ended October 31,
2021202020212020
Finance lease cost:
Amortization of finance lease right-of-use assets$993 $993 $2,981 $2,981 
Interest on finance lease liabilities785 852 2,406 2,604 
Operating lease cost2,313 2,335 6,481 6,189 
Short-term lease cost431 435 630 1,968 
Total lease cost$4,522 $4,615 $12,498 $13,742 
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):
October 31, 2021January 31, 2021
Finance Lease:
Property and equipment, net$32,457 $35,437 
Other accrued liabilities (current)5,111 4,900 
Other liabilities, non-current50,496 54,356 
Operating Leases:
Operating lease right-of-use assets$42,291 $34,587 
Operating lease liabilities (current)7,298 2,343 
Operating lease liabilities, non-current41,072 39,095 

Supplemental Information
The following table presents supplemental information related to the Company’s finance and operating leases (in thousands, except weighted-average information):
Nine Months Ended October 31,
20212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance lease$2,406 $2,604 
Operating cash flows from operating leases5,909 4,146 
Financing cash flows from finance lease3,649 3,450 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$12,893 $30,593 
Weighted-average remaining lease term (in years):
Finance lease8.29.2
Operating leases7.47.9
Weighted-average discount rate:
Finance lease5.6 %5.6 %
Operating leases4.3 %4.6 %
Maturities of Lease Liabilities
Future minimum lease payments under non-cancelable finance and operating leases on an annual undiscounted cash flow basis as of October 31, 2021 were as follows (in thousands):
Year Ending January 31,
Finance Lease
Operating Leases
Remainder of 2022$2,018 $1,729 
20238,073 10,050 
20248,073 8,759 
20258,445 7,557 
20268,711 6,081 
Thereafter
34,118 22,604 
Total minimum payments
69,438 56,780 
Less imputed interest
(13,831)(8,410)
Present value of future minimum lease payments
55,607 48,370 
Less current obligations under leases
(5,111)(7,298)
Non-current lease obligations
$50,496 $41,072 
Leases Leases
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.
The Company entered into a new agreement to lease approximately 16,000 square feet of office space in Palo Alto for a term of 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, which was April 13, 2021.
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 October 31,Nine Months Ended October 31,
2021202020212020
Finance lease cost:
Amortization of finance lease right-of-use assets$993 $993 $2,981 $2,981 
Interest on finance lease liabilities785 852 2,406 2,604 
Operating lease cost2,313 2,335 6,481 6,189 
Short-term lease cost431 435 630 1,968 
Total lease cost$4,522 $4,615 $12,498 $13,742 
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):
October 31, 2021January 31, 2021
Finance Lease:
Property and equipment, net$32,457 $35,437 
Other accrued liabilities (current)5,111 4,900 
Other liabilities, non-current50,496 54,356 
Operating Leases:
Operating lease right-of-use assets$42,291 $34,587 
Operating lease liabilities (current)7,298 2,343 
Operating lease liabilities, non-current41,072 39,095 

Supplemental Information
The following table presents supplemental information related to the Company’s finance and operating leases (in thousands, except weighted-average information):
Nine Months Ended October 31,
20212020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance lease$2,406 $2,604 
Operating cash flows from operating leases5,909 4,146 
Financing cash flows from finance lease3,649 3,450 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$12,893 $30,593 
Weighted-average remaining lease term (in years):
Finance lease8.29.2
Operating leases7.47.9
Weighted-average discount rate:
Finance lease5.6 %5.6 %
Operating leases4.3 %4.6 %
Maturities of Lease Liabilities
Future minimum lease payments under non-cancelable finance and operating leases on an annual undiscounted cash flow basis as of October 31, 2021 were as follows (in thousands):
Year Ending January 31,
Finance Lease
Operating Leases
Remainder of 2022$2,018 $1,729 
20238,073 10,050 
20248,073 8,759 
20258,445 7,557 
20268,711 6,081 
Thereafter
34,118 22,604 
Total minimum payments
69,438 56,780 
Less imputed interest
(13,831)(8,410)
Present value of future minimum lease payments
55,607 48,370 
Less current obligations under leases
(5,111)(7,298)
Non-current lease obligations
$50,496 $41,072