Commitment and Contingencies

12 Months Ended

Jan. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Operating Leases

The Company leases its facilities for office space under non-cancelable operating leases with various expiration dates through fiscal 2033. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the determination of lease payments.

In addition, the Company subleases certain of its unoccupied facilities to third parties with various expiration dates through fiscal 2030. Such subleases have all been classified as operating leases.

The components of lease costs and other information related to leases were as follows (in thousands):

	Fiscal Year Ended January 31,
	2022		2021		2020
Operating lease costs	$	35,745	$	33,627	$	27,711
Variable lease costs	6,029		6,203		5,002
Sublease income	(12,722)		(12,779)		(6,026)
Total lease costs	$	29,052	$	27,051	$	26,687

Supplemental cash flow information and non-cash activity related to the Company’s operating leases were as follows (in thousands):

	Fiscal Year Ended January 31,
	2022		2021		2020
Cash payments (receipts) included in the measurement of operating lease liabilities – operating cash flows	$	38,249	$	31,281	$	13,458
Operating lease liabilities arising from obtaining right-of-use assets	$	28,314	$	11,506	$	194,712

Weighted-average remaining lease term and discount rate for the Company’s operating leases were as follows:

	January 31, 2022		January 31, 2021
Weighted-average remaining lease term (years)	8.0		9.2
Weighted-average discount rate	5.9	%	6.2	%

The total remaining lease payments under non-cancelable operating leases and lease receipts for subleases as of January 31, 2022 were as follows (in thousands):

	Operating Leases		Subleases		Total
Fiscal Year Ending January 31,
2023	$	36,068	$	(12,617)	$	23,451
2024	38,460		(11,992)		26,468
2025	30,159		(7,763)		22,396
2026	27,186		(5,774)		21,412
2027	27,144		(5,960)		21,184
Thereafter	106,885		(15,738)		91,147
Total lease payments (receipts)	$	265,902	$	(59,844)	$	206,058
Less: imputed interest	(59,605)
Present value of operating lease liabilities	$	206,297

Lease payments presented above exclude $25.3 million of legally-binding lease commitments, net of tenant incentives expected to be received, for leases signed but not yet commenced as of January 31, 2022. These leases will commence in fiscal 2023 with lease terms of 4.6 to 9.5 years.

Other Contractual Commitments

Other contractual commitments relate mainly to third-party cloud infrastructure agreements and subscription arrangements used to facilitate the Company’s operations at the enterprise level. 

Future minimum payments under the Company’s non-cancelable purchase commitments with a remaining term in excess of one year as of January 31, 2022 are presented in the table below (in thousands):

	Amount
Fiscal Year Ending January 31,
2023	$	44,662
2024	280,961
2025	326,227
2026	852,323		(1)
2027	93
Thereafter	—
Total	$	1,504,266

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(1)Includes $495.4 million of remaining non-cancelable contractual commitments as of January 31, 2022 related to one of the Company's third-party cloud infrastructure agreements, under which the Company committed to spend an aggregate of at least $555.0 million, between September 2020 and December 2025 with no minimum purchase commitment during any year. The Company is required to pay the difference if it fails to meet the minimum purchase commitment by December 2025, and such payment can be applied to qualifying expenditures for cloud infrastructure services for up to twelve months after December 2025.

401(k) Plan—The Company sponsors a 401(k) defined contribution plan covering all eligible U.S. employees. Contributions to the 401(k) plan are discretionary. The Company did not make any matching contributions to the 401(k) plan for each of the fiscal years ended January 31, 2022, 2021, and 2020.

Legal Matters—The Company is involved from time to time in various claims and legal actions arising in the ordinary course of business. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company believes that none of its current legal proceedings will have a material adverse effect on its financial position, results of operations, or cash flows.

Letters of Credit—As of January 31, 2022, the Company had a total of $16.8 million in cash collateralized letters of credit outstanding, substantially in favor of certain landlords for the Company’s leased facilities. These letters of credit renew annually and expire at various dates through fiscal 2033.

Indemnification—The Company enters into indemnification provisions under agreements with other parties in the ordinary course of business, including business partners, investors, contractors, customers, and the Company’s officers, directors, and certain employees. The Company has agreed to indemnify and defend the indemnified party for claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claims due to the Company’s activities or non-compliance with certain representations and warranties made by the Company. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. For each of the fiscal years ended January 31, 2022, 2021, and 2020, losses recorded in the consolidated statements of operations in connection with the indemnification provisions were not material.