Derivative Instruments

6 Months Ended

Jul. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Cash Flow Hedges

As of July 31, 2020 and January 31, 2020, the Company had outstanding foreign currency forward contracts designated as cash flow hedges with total notional values of $3.7 million and $5.8 million, respectively. All contracts have maturities not greater than 13 months. The notional value represents the amount that will be bought or sold upon maturity of the forward contract.

During the three and six months ended July 31, 2020 and 2019, all cash flow hedges were considered effective.

Foreign Currency Forward Contracts Not Designated as Hedges

As of July 31, 2020 and January 31, 2020, the Company had outstanding forward contracts with total notional values of $24.9 million and $23.5 million, respectively. All contracts have maturities not greater than 13 months.

The fair values of outstanding derivative instruments were as follows (in thousands):


	July 31, 2020		January 31, 2020
Derivative assets (recorded in prepaid expenses and other current assets):
Foreign currency forward contracts designated as cash flow hedges	$	354	$	384
Foreign currency forward contracts not designated as hedges	100		299
Derivative liabilities (recorded in accrued expenses and other current liabilities):
Foreign currency forward contracts designated as cash flow hedges	544		76
Foreign currency forward contracts not designated as hedges	462		266

Gains (losses) associated with foreign currency forward contracts designated as cash flow hedges were as follows (in thousands):


	Condensed Consolidated Statements of Operations and Statements of Comprehensive Loss (OCI) Locations	Three Months Ended July 31,						Six Months Ended July 31,
				2020		2019		2020		2019

Gains (losses) recognized in OCI (effective portion)	Change in unrealized gain (loss) on cash flow hedges, net of tax	$	(748)	$	(467)	$	(676)	$	(610)
Gains (losses) reclassified from OCI into income (effective portion)	Revenues	161		115		291		219
Gains (losses) reclassified from OCI into income (effective portion)	General and administrative	(363)		(145)		(199)		(139)
Gains (losses) recognized in income (amount excluded from effectiveness testing and ineffective portion)	Interest income and other income (expense), net	(9)		(29)		(58)		(62)

Of the gains (losses) recognized in OCI for the effective portion of foreign currency forward contracts designated as cash flow hedges as of July 31, 2020, $0.3 million is expected to be reclassified out of OCI within the next 12 months.

Gains (losses) associated with foreign currency forward contracts not designated as cash flow hedges were as follows (in thousands):


	Condensed Consolidated Statements of Operations Location	Three Months Ended July 31,						Six Months Ended July 31,
Derivative Type				2020		2019		2020		2019
Foreign currency forward contracts not designated as hedges	Interest income and other income (expense), net	$	(1,784)	$	16	$	(1,117)	$	(43)

As of July 31, 2020, information related to offsetting arrangements was as follows (in thousands):


	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Assets in the Condensed Consolidated Balance Sheets		Gross Amounts Not Offset in Condensed Consolidated Balance Sheets								Net Asset Exposed
																Financial Instruments	Cash Collateral Received
Derivative assets:
Counterparty A	$	146	$	—	$	146	$	(51)	$	—		$	95
Counterparty B	307		—		307		(307)		—			—
Total	$	453	$	—	$	453	$	(358)	$	—		$	95

	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Assets in the Condensed Consolidated Balance Sheets		Gross Amounts Not Offset in Condensed Consolidated Balance Sheets								Net Liabilities Exposed
											Financial Instruments			Cash Collateral Pledged
Derivative liabilities:
Counterparty A	$	51	$	—	$	51	$	(51)	$	—		$	—
Counterparty B	955		—		955		(307)		—			648
Total	$	1,006	$	—	$	1,006	$	(358)	$	—		$	648

As of January 31, 2020, information related to offsetting arrangements was as follows (in thousands):


	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Assets in the Condensed Consolidated Balance Sheets		Gross Amounts Not Offset in Condensed Consolidated Balance Sheets								Net Asset Exposed
											Financial Instruments			Cash Collateral Received
Derivative assets:
Counterparty A	$	102	$	—	$	102	$	(5)	$	—		$	97
Counterparty B	581		—		581		(337)		—			244
Total	$	683	$	—	$	683	$	(342)	$	—		$	341


	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Assets in the Condensed Consolidated Balance Sheets		Gross Amounts Not Offset in Condensed Consolidated Balance Sheets						Net Liabilities Exposed
											Financial Instruments			Cash Collateral Pledged
Derivative liabilities:
Counterparty A	$	5	$	—	$	5	$	(5)	$	—	$	—
Counterparty B	337		—		337		(337)		—		—
Total	$	342	$	—	$	342	$	(342)	$	—	$	—