Derivative Instruments

9 Months Ended

Oct. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Cash Flow Hedges

As of October 31, 2020 and January 31, 2020 the Company had outstanding foreign currency forward contracts designated as cash flow hedges with total notional values of $4.2 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 nine months ended October 31, 2020 and 2019 all cash flow hedges were considered effective.

Foreign Currency Forward Contracts Not Designated as Hedges

As of October 31, 2020 and January 31, 2020 the Company had outstanding forward contracts with total notional values of $25.5 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):


	October 31, 2020		January 31, 2020
Derivative assets (recorded in prepaid expenses and other current assets):
Foreign currency forward contracts designated as cash flow hedges	$	191	$	384
Foreign currency forward contracts not designated as hedges	432		299
Derivative liabilities (recorded in accrued expenses and other current liabilities):
Foreign currency forward contracts designated as cash flow hedges	$	397	$	76
Foreign currency forward contracts not designated as hedges	397		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 October 31,				Nine Months Ended October 31,
		2020		2019		2020		2019
Gains (losses) recognized in OCI (effective portion)	Change in unrealized gains (losses) on cash flow hedges, net of tax	$	16	$	374	$	(660)	$	(237)
Gains reclassified from OCI into income (effective portion)	Revenues	166		131		459		350
Gains (losses) reclassified from OCI into income (effective portion)	General and administrative	53		(365)		(146)		(504)
Losses recognized in income (amount excluded from effectiveness testing and ineffective portion)	Interest income and other income (expense), net	(15)		(42)		(73)		(105)

Of the gains (losses) recognized in OCI for the effective portion of foreign currency forward contracts designated as cash flow hedges as of October 31, 2020, $0.2 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 October 31,				Nine Months Ended October 31,
Derivative Type		2020		2019		2020		2019
Foreign currency forward contracts not designated as hedges	Interest income and other income (expense), net	$	(214)	$	124	$	(1,331)	$	80

As of October 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 the Condensed Consolidated Balance Sheets				Net Assets Exposed
							Financial Instruments		Cash Collateral Received
Derivative assets:
Counterparty A	$	5	$	—	$	5	$	(5)	$	—	$	—
Counterparty B	618		—		618		(618)		—		—
Total	$	623	$	—	$	623	$	(623)	$	—	$	—

	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Liabilities in the Condensed Consolidated Balance Sheets		Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets				Net Liabilities Exposed
							Financial Instruments		Cash Collateral Pledged
Derivative liabilities:
Counterparty A	$	29	$	—	$	29	$	(5)	$	—	$	24
Counterparty B	765		—		765		(618)		—		147
Total	$	794	$	—	$	794	$	(623)	$	—	$	171

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 the Condensed Consolidated Balance Sheets				Net Assets 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 Liabilities in the Condensed Consolidated Balance Sheets		Gross Amounts Not Offset in the 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)	$	—	$	—