Derivative Instruments

6 Months Ended

Jul. 31, 2019

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments

4. Derivative Instruments

Cash Flow Hedges

The Company is exposed to foreign currency fluctuations resulting from customer contracts denominated in foreign currencies. The Company has a hedging program in which it enters into foreign currency forward contracts related to certain customer contracts. The Company designates these forward contracts as cash flow hedging instruments since the accounting criteria for such designation have been met.

As of July 31, 2019 and January 31, 2019, the Company had outstanding foreign currency forward contracts designated as cash flow hedges with total notional values of $9.4 million and $9.9 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, 2019 and 2018, all cash flow hedges were considered effective.

Foreign Currency Forward Contracts Not Designated as Hedges

The Company also enters into foreign currency forward contracts to hedge a portion of its net outstanding monetary assets and liabilities. These forward contracts are intended to offset the foreign currency gains or losses associated with the underlying monetary assets and liabilities and are recorded on the condensed consolidated balance sheet at fair value. The forward contracts are not designated as hedging instruments under applicable accounting guidance, and therefore all changes in the fair value of the forward contracts are recorded in Other income (expense), net on the unaudited condensed consolidated statements of operations. Cash flows from such forward contracts are classified as operating activities.

As of July 31, 2019 and January 31, 2019, the Company had outstanding forward contracts with total notional values of $12.0 million and $2.5 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, 2019		January 31, 2019
Derivative assets (recorded in prepaid expenses and other    current assets):
Foreign currency forward contracts designated as cash    flow hedges	$	285	$	621
Foreign currency forward contracts not designated as    hedges	541			453
Derivative liabilities (recorded in accrued expenses and other    current liabilities):
Foreign currency forward contracts designated as cash    flow hedges	$	789	$	71
Foreign currency forward contracts not designated as    hedges	853			602

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

	Condensed Consolidated Statements of Operations and Condensed Statements of Comprehensive Loss Locations
		Three Months Ended July 31,						Six Months Ended, July 31,
		2019			2018			2019			2018
Gains (losses) recognized in other    comprehensive loss    (effective portion)	Change in unrealized gain (loss) on cash flow hedges, net of tax	$	(467	)	$	(314	)	$	(610	)	$	38
Gains (losses) reclassified from    other comprehensive loss    into income (effective portion)	Revenues	115				(10	)		219			(17	)
Gains (losses) reclassified from    other comprehensive loss    into income (effective portion)	General and administrative		(145	)		(188	)		(139	)		184
Gains (losses) recognized in    income (amount excluded from    effectiveness testing and    ineffective portion)	Interest income and other income (expense), net		(29	)	7				(62	)		16

Of the gains (losses) recognized in other comprehensive loss for the effective portion of foreign currency forward contracts designated as cash flow hedges as of July 31, 2019 and January 31, 2019, $0.1 million and $(0.5) million, respectively, is expected to be reclassified out of other comprehensive loss within the next 12 months.

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

Derivative Type	Condensed Consolidated Statements of Operations Location
		Three Months Ended July 31,					Six Months Ended, July 31,
		2019		2018			2019			2018
Foreign currency forward contracts    not designated as hedges	Interest income and other income (expense), net	$	16	$	(151	)	$	(43	)	$	87

As of July 31, 2019, information related to offsetting arrangements were as follows (in thousands):

							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Assets in the Condensed Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received		Net Asset Exposed
Derivative assets:
Counterparty A	$	139	$	—	$	139	$	—		$	—	$	139
Counterparty B		687		—		687		(687	)		—		—
Total	$	826	$	—	$	826	$	(687	)	$	—	$	139

							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Liabilities in the Condensed Consolidated Balance Sheets		Financial Instruments			Cash Collateral Pledged		Net Liabilities Exposed
Derivative liabilities:
Counterparty A	$	—	$	—	$	—	$	—		$	—	$	—
Counterparty B		1,642		—		1,642		(687	)		—		955
Total	$	1,642	$	—	$	1,642	$	(687	)	$	—	$	955

As of January 31, 2019, information related to offsetting arrangements were as follows (in thousands):

							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Assets in the Condensed Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received		Net Asset Exposed
Derivative assets:
Counterparty A	$	297	$	—	$	297	$	—		$	—	$	297
Counterparty B		776		—		776		(673	)		—		103
Total	$	1,073	$	—	$	1,073	$	(673	)	$	—	$	400

							Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Liabilities in the Condensed Consolidated Balance Sheets		Financial Instruments			Cash Collateral Pledged		Net Liabilities Exposed
Derivative liabilities:
Counterparty A	$	—	$	—	$	—	$	—		$	—	$	—
Counterparty B		673		—		673		(673	)		—		—
Total	$	673	$	—	$	673	$	(673	)	$	—	$	—