Balance Sheet Components

6 Months Ended

Jan. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NOTE 4. BALANCE SHEET COMPONENTS

Short-Term Investments

The amortized cost of our short-term investments approximates their fair value. Unrealized losses related to our short-term investments are generally due to interest rate fluctuations, as opposed to credit quality. However, we review individual securities that are in an unrealized loss position in order to evaluate whether or not they have experienced or are expected to experience credit losses that would result in a decline in fair value. As of July 31, 2021 and January 31, 2022, unrealized gains and losses from our short-term investments were not material and were not the result of a decline in credit quality. As a result, as of July 31, 2021 and January 31, 2022, we did not record any credit losses for these investments.

The following table summarizes the estimated fair value of our investments in marketable debt securities by their contractual maturity dates:


	As of January 31, 2022
	(in thousands)
Due within one year	$	711,092
Due in one to two years		179,934
Total	$	891,026

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consists of the following:


	As of
	July 31, 2021		January 31, 2022
	(in thousands)
Prepaid operating expenses	$	36,455	$	40,005
VAT receivables		8,290		6,314
Other current assets		12,071		14,085
Total prepaid expenses and other current assets	$	56,816	$	60,404

Property and Equipment, Net

Property and equipment, net consists of the following:


		As of
	Estimated Useful Life	July 31, 2021			January 31, 2022
	(in months)	(in thousands)
Computer, production, engineering and other equipment	36	$	300,583		$	323,498
Demonstration units	12		68,992			63,178
Leasehold improvements	(1)		62,676			60,830
Furniture and fixtures	60		16,518			16,473
Total property and equipment, gross			448,769			463,979
Less: accumulated depreciation (2)			(317,148	)		(346,370	)
Total property and equipment, net		$	131,621		$	117,609

(1)

Leasehold improvements are amortized over the shorter of the estimated useful lives of the improvements or the remaining lease term.

(2)

Includes a $0.9 million write-off related to the impairment of certain leasehold improvements during the fiscal quarter ended October 31, 2020. For additional information on this lease-related impairment, refer to Note 6.

Depreciation expense related to our property and equipment was $19.2 million and $38.3 million for the three and six months ended January 31, 2021, respectively, and $17.7 million and $36.4 million for the three and six months ended January 31, 2022, respectively.

Goodwill and Intangible Assets, Net

There was no change in the carrying value of goodwill during the six months ended January 31, 2022.

Intangible assets, net consists of the following:


	As of
	July 31, 2021			January 31, 2022
	(in thousands)
Developed technology	$	79,300		$	79,300
Customer relationships		8,860			8,860
Trade name		4,170			4,170
Total intangible assets, gross		92,330			92,330
Less:
Accumulated amortization of developed technology		(50,764	)		(57,608	)
Accumulated amortization of customer relationships		(6,513	)		(7,294	)
Accumulated amortization of trade name		(3,041	)		(3,562	)
Total accumulated amortization		(60,318	)		(68,464	)
Total intangible assets, net	$	32,012		$	23,866

Amortization expense related to our intangible assets is being recognized in the condensed consolidated statements of operations within product cost of revenue for developed technology and sales and marketing expense for customer relationships and trade name.

The estimated future amortization expense of our intangible assets is as follows:


Fiscal Year Ending July 31:	Amount
	(in thousands)
2022 (remaining six months)	$	8,037
2023		10,856
2024		3,210
2025		1,763
Total	$	23,866

Accrued Compensation and Benefits

Accrued compensation and benefits consists of the following:


	As of
	July 31, 2021		January 31, 2022
	(in thousands)
Contributions to ESPP withheld	$	26,735	$	28,634
Accrued commissions		48,321		28,162
Accrued vacation		26,961		25,553
Payroll taxes payable		21,603		22,338
Accrued wages and taxes		1,675		12,675
Accrued bonus		14,878		12,378
Accrued benefits		10,243		10,646
Other		11,921		9,603
Total accrued compensation and benefits	$	162,337	$	149,989

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consists of the following:


	As of
	July 31, 2021		January 31, 2022
	(in thousands)
Income taxes payable	$	13,309	$	9,337
Accrued professional services		3,541		3,355
Other		22,554		24,897
Total accrued expenses and other current liabilities	$	39,404	$	37,589