Leases

3 Months Ended

Apr. 30, 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.

Operating lease right-of-use 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):


	Three Months Ended April 30,
	2020		2019
Operating lease cost	$	11,301	$	11,315
Short-term lease cost	479		571
Sublease income	(3,922)		(3,955)
Net lease cost	$	7,858	$	7,931

Lease term and discount rate information are summarized as follows:


	As of
	April 30, 2020		January 31, 2020
Weighted Average Remaining Lease Term (years)	6.6		6.8
Weighted Average Discount Rate	6.0	%	6.0	%

Maturities of lease liabilities as of April 30, 2020 are as follows (in thousands):


	Minimum Lease Payments, Gross
Remaining nine months of fiscal 2021	$	37,728
fiscal 2022	39,985
fiscal 2023	36,040
fiscal 2024	36,447
fiscal 2025	35,611
fiscal 2026 and thereafter	83,612
Total lease payments	$	269,423
Less imputed interest	(57,074)
Present value of lease liabilities	$	212,349

As of April 30, 2020, we expected to receive $27.2 million of sublease rental proceeds in the next five years.