Operating Leases

6 Months Ended

Jan. 31, 2020

The following is a summary of our operating lease costs for the three and six months ended January 31, 2020:


	Three Months Ended January 31, 2020										Six Months Ended January 31, 2020
	Real Estate Arrangements		Co-Location Arrangements		Total		Real Estate Arrangements		Co-Location Arrangements		Total
	(in thousands)
Operating lease	$	1,165	$	2,098	$	3,263	$	2,333	$	3,882	$	6,215
Short-term lease cost	347		263		610		626		425		1,051
Variable lease cost	401		452		853		613		939		1,552
Total operating lease costs	$	1,913	$	2,813	$	4,726	$	3,572	$	5,246	$	8,818

At January 31, 2020, the real estate arrangements’ weighted-average remaining lease term and weighted-average discount rate for operating leases were 5.5 years and 4.7%, respectively. At January 31, 2020, the co-location arrangements' weighted-average remaining lease term and weighted-average discount rate for operating leases were 2.3 years and 3.3%. respectively.

Cash paid for amounts included in the measurement of operating lease liabilities was $2.9 million and $5.2 million for the three and six months ended January 31, 2020.

Rent expense was $0.8 million and $1.4 million for the three and six months ended January 31, 2019, respectively. Bandwidth and co-location expenses were $3.4 million and $6.4 million for the three and six months ended January 31, 2019, respectively. Rent expense prior to fiscal 2020 was recognized in accordance with ASC 840, Leases, using the straight-line method over the term of the lease.

Maturities of operating lease liabilities consisted of the following as of January 31, 2020:



	Real Estate Arrangements		Co-Location Arrangements		Total
Year ending July 31,	(in thousands)
2020 (remaining six months)	$	2,171	$	4,062	$	6,233
2021	3,912		8,087		11,999
2022	2,899		5,826		8,725
2023	2,601		394		2,995
2024	2,666		—		2,666
Thereafter	5,847		—		5,847
Total future minimum lease payments	$	20,096	$	18,369	$	38,465
Less: Imputed interest	3,304		719		4,023
Total	$	16,792	$	17,650	$	34,442

As of January 31, 2020, we have entered into non-cancelable operating leases with a term greater than 12 months that have not yet commenced with undiscounted future minimum payments of $20.5 million, which are excluded from the above table. These operating leases will commence between February 2020 and October 2022 with lease terms ranging from 2.0 years to 6.0 years.

Future minimum payments under non-cancelable operating leases consisted of the following as of July 31, 2019:



	Real Estate Arrangements		Data Center Arrangements		Total
Year ending July 31,	(in thousands)
2020	$	4,624	$	11,766	$	16,390
2021	5,836		9,890		15,726
2022	4,871		5,533		10,404
2023	6,143		106		6,249
2024	6,509		—		6,509
Thereafter	15,977		—		15,977
Total	$	43,960	$	27,295	$	71,255