Leases

12 Months Ended

Jan. 31, 2020

We have entered into various non-cancelable operating lease agreements for our facilities. Our leases have various expiration dates through September 2031. Many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement.

As described within Note 2, we adopted ASU 2016-02, Leases, as of February 1, 2019, which requires, among other changes, operating leases with terms exceeding twelve months to be recognized as ROU assets and lease liabilities on the consolidated balance sheets.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The lease term is determined to be the non-cancelable period including any lessee renewal options which are considered to be reasonably certain of exercise. The interest rate implicit in the lease contracts is typically not readily determinable. As such, we utilized the appropriate incremental borrowing rate based on information available at the commencement date, which is the rate incurred to borrow on a collateralized basis over a similar term in a similar economic environment.

Components of lease expense are summarized as follows (in thousands):


	Twelve Months Ended January 31, 2020
Operating lease cost	$	45,640
Short-term lease cost	2,276
Sublease income	(15,730)
Net lease cost	$	32,186

Lease term and discount rate information are summarized as follows:


	As of January 31, 2020
Weighted Average Remaining Lease Term (years)	6.8
Weighted Average Discount Rate	6	%

Maturities of lease liabilities as of January 31, 2020 are as follows (in thousands):


	Minimum Lease Payments, Gross
2021	$	30,038
2022	39,497
2023	35,823
2024	36,453
2025	35,617
2026 and thereafter	83,646
Total lease payments	$	261,074
Less imputed interest	(49,569)
Present value of lease liabilities	$	211,505

We expect to receive $31.3 million of sublease rental proceeds in the next five years as of January 31, 2020.

As of January 31, 2019, prior to the adoption of Topic 842, future minimum lease payments under non-cancelable operating leases was as follows (in thousands):


	Minimum Lease Payments, Gross
2020	$	42,293
2021	41,475
2022	37,172
2023	34,249
2024	35,190
2025 and thereafter	115,481
Total minimum lease payments	$	305,860