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Property and Equipment, Net
 6 Months Ended
Jul. 31, 2021
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
Property and equipment, net consisted of the following (in thousands):
July 31, 2021January 31, 2021
Land and land improvements$80,553 $37,065 
Buildings676,724 494,599 
Computers, equipment, and software1,025,628 931,456 
Furniture and fixtures55,048 54,193 
Leasehold improvements147,633 204,273 
Property and equipment, gross1,985,586 1,721,586 
Less accumulated depreciation and amortization(849,993)(749,183)
Property and equipment, net$1,135,593 $972,403 
Depreciation expense totaled $65 million and $57 million for the three months ended July 31, 2021, and 2020, respectively, and $128 million and $112 million for the six months ended July 31, 2021, and 2020, respectively.
Related-Party Transactions
During fiscal 2021, we entered into an agreement with an affiliate of our Co-Founder, Director, and Chairman Emeritus, David Duffield, for an option to purchase certain leased office space (“Property”) within our corporate headquarters at a price based on third-party appraisals and negotiation between Workday and the affiliated party (“Leased Property Purchase Option”). In deciding to enter into and subsequently exercise the Leased Property Purchase Option, our Board of Directors considered the benefits to Workday of purchasing the Property, including the importance of obtaining control of the Property, which is part of Workday’s headquarters campus, and the long-term cost savings from ownership as compared to continuing to lease the Property. Our Board also considered independent appraisals, comparable transaction data, and the extent and nature of Mr. Duffield’s interest in the transaction.
In the first quarter of fiscal 2022, we exercised the Leased Property Purchase Option at a purchase price of $173 million in cash, reduced by a $2 million fee paid for the Leased Property Purchase Option in the prior fiscal year. The carrying value of the Property upon purchase was $158 million, calculated as the purchase price less approximately $15 million which represents the difference between the carrying values of the right-of-use asset and lease liability of the Property immediately prior to the purchase. For further information, see Note 12, Leases.