Operating Leases

12 Months Ended

Jan. 31, 2023

We have entered into various operating lease agreements for office space, with remaining contractual periods of up to six years. We also enter into equipment operating lease agreements related to our Hardware-as-a-Service (“HaaS”) offering. We elect to apply the lessor practical expedient per ASC 842 and account for HaaS with customers as a combined performance obligation with the right to access our unified communications and collaboration 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, 2023, 2022 and 2021 was $32.7 million, $22.8 million and $14.5 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, 2023, 2022 and 2021.

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


	As of January 31,
	2023			2022
	(in thousands, except life and percentages)
Reported as:
Assets:
Operating lease right-of-use assets	$	80,906		$	95,965
Liabilities:
Accrued expenses and other current liabilities	$	22,790		$	20,697
Operating lease liabilities, noncurrent	73,687			85,018
Total operating lease liabilities	$	96,477		$	105,715

Weighted average remaining lease term	4.3 years			5.1 years
Weighted average discount rate	3.8		%	4.0		%

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


	Year Ended January 31,
	2023		2022		2021
	(in thousands)
Cash payments included in the measurement of our operating lease liabilities	$	27,120	$	22,679	$	13,717
Operating lease right-of-use assets recognized in exchange for new operating lease obligations	$	13,857	$	16,784	$	39,918

As of January 31, 2023, the future minimum lease payments included in the measurement of our operating lease liabilities are as follows:


	As of January 31, 2023
	(in thousands)
Year Ending January 31,
2024	$	25,886
2025	27,165
2026	21,541
2027	14,119
2028	8,461
Thereafter	8,004
Total operating lease payments	$	105,176
Less: imputed interest	(8,699)
Total operating lease liabilities	$	96,477