Commitments and Contingencies

In July 2017, the Company entered into a non-cancellable contractual agreement with a third-party provider of datacenter hosting facilities for a period of three years. Future annual commitments under this agreement are $10.0 million.

Leases

The Company leases office space under noncancelable operating leases for its San Francisco, California headquarters, as well as its offices in San Jose, California; Bellevue, Washington; London, England; Sydney, Australia; and Toronto, Canada. These office leases expire on various dates through August 2026.

Certain facility lease agreements contain rent holidays, allowances and rent escalation provisions. For these leases, the Company recognizes the related rental expense on a straight-line basis over the lease period of the facility and records the difference between amounts charged to operations and amounts paid as deferred rent. These rent holidays, allowances and rent escalations are considered in determining the straight-line expense to be recorded over the lease term. Deferred rent was $5.0 million and $4.8 million as of October 31, 2017 and January 31, 2017, respectively, and the current and noncurrent portions are included in accrued expenses and other current liabilities and other liabilities, noncurrent, respectively, in the condensed consolidated balance sheets. Rent expense was $3.0 million and $1.9 million for the three months ended October 31, 2017 and 2016, respectively, and $7.6 million and $5.5 million for the nine months ended October 31, 2017 and 2016, respectively.

In August 2017, the Company executed an amendment to its San Jose lease to add space and extend the lease term through August 2024. The incremental commitment for the additional space is $6.3 million with a tenant improvement allowance of up to $0.8 million. Rental payments will commence in August 2018.

In conjunction with the execution of the leases, letters of credit in the aggregate amount of $4.4 million and $5.4 million were issued and outstanding as of October 31, 2017 and January 31, 2017, respectively. No draws have been made under such letters of credit.

As of October 31, 2017, the future minimum lease payments by fiscal year under the financing arrangements and various operating leases are as follows (in thousands):



	Financing Arrangements			Operating Leases		Purchase Obligations		Total
Remainder of 2018	$	212		$	2,968	$	2,595	$	5,775
2019	212			12,343		10,401		22,956
2020	—			9,441		10,301		19,742
2021	—			6,088		4,167		10,255
2022	—			5,749		—		5,749
Thereafter	—			13,896		—		13,896
Total minimum lease payments	$	424		$	50,485	$	27,464	$	78,373
Less: amount representing interest	(29		)	—		—		(29		)
Present value of minimum lease payments	$	395		$	50,485	$	27,464	$	78,344

Legal Matters

From time to time in the normal course of business, the Company may be subject to various legal matters such as threatened or pending claims or proceedings. There were no such material matters as of October 31, 2017.