Leases

6 Months Ended

Jul. 31, 2021

LeasesWe have entered into operating lease agreements for our office space, data centers, and other property and equipment. As of July 31, 2021, and January 31, 2021, operating lease right-of-use assets were $276 million and $414 million, respectively, and operating lease liabilities were $291 million and $443 million, respectively. We have also entered into finance lease agreements for other property and equipment. As of July 31, 2021, and January 31, 2021, finance leases were not material.

The components of operating lease expense were as follows (in thousands):


	Three Months Ended July 31,				Six Months Ended July 31,
	2021		2020		2021		2020
Operating lease cost	$	22,743	$	22,336	$	47,016	$	43,235
Short-term lease cost	2,037		4,080		4,215		8,432
Variable lease cost	4,642		4,886		9,763		9,336
Total operating lease cost	$	29,422	$	31,302	$	60,994	$	61,003

Supplemental cash flow information related to our operating leases was as follows (in thousands):


	Three Months Ended July 31,				Six Months Ended July 31,
	2021		2020		2021		2020
Cash paid for operating lease liabilities	$	19,951	$	21,153	$	46,573	$	42,165
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities	17,188		32,216		38,689		70,503

Other information related to our operating leases was as follows:


	July 31, 2021	January 31, 2021
Weighted average remaining lease term (in years)	5	6
Weighted average discount rate	2.36%	1.73%

As of July 31, 2021, maturities of operating lease liabilities were as follows (in thousands):


Fiscal Period:
Remainder of 2022	$	43,521
2023	83,047
2024	70,778
2025	54,591
2026	28,577
Thereafter	37,916
Total lease payments	318,430
Less imputed interest	(27,162)
Total	$	291,268

As of July 31, 2021, we have additional operating leases for office space that have not yet commenced with total undiscounted lease payments of $17 million. These operating leases will commence in fiscal 2022 and 2023, with lease terms ranging from two to eight years.

Related-Party Transactions

As discussed in Note 6, Property and Equipment, Net, during fiscal 2021, we entered into an agreement with an affiliated party which gave us the option to purchase certain leased properties within our corporate headquarters. We exercised the Leased Property Purchase Option in the first quarter of fiscal 2022 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.

Subsequent to the exercise of the Leased Property Purchase Option, the Property is included in Property and equipment, net on the condensed consolidated balance sheet. As of January 31, 2021, the operating lease right-of-use assets and operating lease liabilities related to these agreements were $134 million and $146 million, respectively. We incurred no rent expense under these agreements for the three months ended July 31, 2021, as compared to $4 million for the three months ended July 31, 2020. Rent expense was $2 million and $7 million for the six months ended July 31, 2021, and 2020, respectively.