6. Deferred Rent

Payment escalations, rent holidays and lease incentives specified in the Company’s non-cancelable operating lease and hosting agreements are recognized on a straight-line basis over the terms of the agreements. For purposes of recognizing incentives and minimum rental expenses on a straight-line basis, the Company uses the date it obtains the legal right to use and control the leased space to begin amortization. The differences arising from straight-line expense recognition and cash payments are recorded as deferred rent in the accompanying consolidated balance sheets. Tenant leasehold improvement allowances received from landlords are recorded as deferred rent and are amortized to operating expenses over the applicable lease terms.

Deferred rent consists of the following:

	April 30, 2017			January 31, 2017
Leasehold improvement incentive	$	1,518		$	1,582
Non-cash rent expense		1,275			1,349
Total deferred rent		2,793			2,931
Less current portion included in accrued expenses		(533	)		(540	)
Deferred rent, net of current portion	$	2,260		$	2,391