Operating Leases

12 Months Ended

Jan. 31, 2021

Leases [Abstract]

Operating Leases

Operating LeasesWe have entered into various operating lease agreements for office space, with remaining contractual periods of up to 9 years. We also enter into equipment operating lease agreements related to our HaaS offering. As a practical expedient, we account for HaaS with customers as a combined performance obligation with the right to access our unified communications platform under ASC 606, Revenue from Contracts with Customers. HaaS was immaterial to our consolidated financial statements. Many of our leases contain one or more options to extend. As leases approach maturity, we consider various factors such as market conditions and the terms of any renewal options that may exist to determine whether we are reasonably certain to exercise the options to extend the lease. Operating lease expense for the fiscal years ended January 31, 2021 and 2020 was $14.5 million and $9.7 million, respectively, excluding short-term lease costs, variable lease costs, and sublease income, each of which was immaterial for the fiscal years ended January 31, 2021 and 2020. Rent expense was $7.2 million for the fiscal year ended January 31, 2019, under Topic 840.

Supplemental balance sheet information related to operating leases was as follows:

	As of January 31,
	2021			2020
	(in thousands)
Reported as:
Assets:
Operating lease right-of-use assets	$	97,649		$	68,608
Liabilities:
Accrued expenses and other current liabilities	$	15,601		$	7,675
Operating lease liabilities, noncurrent	90,415			64,792
Total operating lease liabilities	$	106,016		$	72,467
Weighted average remaining lease term	6.1 years			7.5 years
Weighted average discount rate	4.5		%	5.1		%

Supplemental cash flow and other information related to operating leases was as follows:

	Year Ended January 31,
	2021		2020
	(in thousands)
Cash payments included in the measurement of our operating lease liabilities	$	13,717	$	9,774
Operating lease right-of-use assets recognized in exchange for new operating lease obligations	$	39,918	$	34,993

As of January 31, 2021, the future minimum lease payments included in the measurement of our operating lease liabilities are as follows:

	As of January 31, 2021
	(in thousands)
Year Ending January 31,
2022	$	19,949
2023	21,313
2024	20,310
2025	20,216
2026	15,384
Thereafter	24,808
Total operating lease payments	$	121,980
Less: imputed interest	(15,964)
Total operating lease liabilities	$	106,016