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BALANCE SHEET COMPONENTS | 6 Months Ended
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Jan. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS Short-Term Investments The amortized cost of our short-term investments approximates their fair value. As of July 31, 2019 and January 31, 2020, unrealized gains and losses from our short-term investments were not material. As of July 31, 2019 and January 31, 2020, unrealized losses from securities that were in an unrealized loss position for more than 12 months were not material. Unrealized losses related to our short-term investments are due to interest rate fluctuations, as opposed to credit quality. As a result, at July 31, 2019 and January 31, 2020, there were no other-than-temporary impairments for these investments. The following table summarizes the estimated fair value of our investments in marketable debt securities by their contractual maturity dates:
| As of January 31, 2020
| (in thousands)
Due within one year | $ | 441,622 |
Due in one to two years | 165,685 |
Total | $ | 607,307 |
Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consists of the following:
| As of
| July 31, 2019 |  | January 31, 2020
| (in thousands)
Prepaid operating expenses | $ | 37,864 |  |  | $ | 37,541 |
Tenant improvement allowances | — |  |  | 7,930 |
VAT receivables | 5,068 |  |  | 6,516 |
Prepaid income taxes | 19,690 |  |  | 1,548 |
Other current assets | 12,043 |  |  | 12,173 |
Total prepaid expenses and other current assets | $ | 74,665 |  |  | $ | 65,708 |
The decrease in prepaid expenses and other current assets from July 31, 2019 to January 31, 2020 was due primarily to the receipt of an $18.0 million corporate income tax refund in the first quarter of fiscal 2020, partially offset by the addition of $7.9 million of tenant improvement allowances, which are recorded within prepaid expenses and other current assets on the condensed consolidated balance sheet as of January 31, 2020 as a result of our adoption of ASC 842 during the first quarter of fiscal 2020. Property and Equipment, Net Property and equipment, net consists of the following:
| Estimated Useful Life |  | As of
|  | July 31, 2019 |  | January 31, 2020
| (in months) |  | (in thousands)
Computer, production, engineering and other equipment | 36 |  | $ | 200,762 |  |  | $ | 226,897 |
Demonstration units | 12 |  | 59,981 |  |  | 64,190 |
Leasehold improvements | (1) |  | 46,520 |  |  | 54,570 |
Furniture and fixtures | 60 |  | 12,868 |  |  | 14,147 |
Total property and equipment, gross |  |  | 320,131 |  |  | 359,804 |
Less: accumulated depreciation (2) |  |  | (183,169 | ) |  | (216,374 | )
Total property and equipment, net |  |  | $ | 136,962 |  |  | $ | 143,430 |
(1) | Leasehold improvements are amortized over the shorter of the estimated useful lives of the improvements or the remaining lease term.
(2) | Includes a $1.2 million write-off related to the impairment of certain leasehold improvements for the fiscal quarter ended January 31, 2020. For additional information on this lease-related impairment, refer to Note 6.
Depreciation expense related to our property and equipment was $14.5 million and $26.9 million for the three and six months ended January 31, 2019 and $18.7 million and $36.9 million for the three and six months ended January 31, 2020, respectively. Goodwill and Intangible Assets, Net The change in the carrying value of goodwill during the six months ended January 31, 2020 was not material. Intangible assets, net consists of the following:
| As of
| July 31, 2019 |  | January 31, 2020
| (in thousands)
Developed technology | $ | 79,300 |  |  | $ | 79,300 |
Customer relationships | 8,860 |  |  | 8,860 |
Trade name | 4,170 |  |  | 4,170 |
Total intangible assets, gross | 92,330 |  |  | 92,330 |
Less: |  |  |
Accumulated amortization of developed technology | (21,210 | ) |  | (28,598 | )
Accumulated amortization of customer relationships | (3,392 | ) |  | (4,172 | )
Accumulated amortization of trade name | (955 | ) |  | (1,477 | )
Total accumulated amortization | (25,557 | ) |  | (34,247 | )
Total intangible assets, net | $ | 66,773 |  |  | $ | 58,083 |
Amortization expense related to our intangible assets is being recognized in the condensed consolidated statements of operations within product cost of revenue for developed technology and sales and marketing expense for customer relationships and trade name. The estimated future amortization expense of our intangible assets is as follows:
Fiscal Year Ending July 31: | Amount
| (in thousands)
2020 (remaining six months) | $ | 8,690 |
2021 | 17,380 |
2022 | 16,183 |
2023 | 10,856 |
2024 | 3,210 |
Thereafter | 1,764 |
Total | $ | 58,083 |
Accrued Compensation and Benefits Accrued compensation and benefits consists of the following:
| As of
| July 31, 2019 |  | January 31, 2020
| (in thousands)
Accrued commissions | $ | 31,703 |  |  | $ | 32,841 |
Contributions to ESPP withheld | 20,778 |  |  | 29,643 |
Accrued vacation | 15,475 |  |  | 19,036 |
Payroll taxes payable | 8,504 |  |  | 11,660 |
Accrued bonus | 11,413 |  |  | 10,612 |
Other | 11,931 |  |  | 16,097 |
Total accrued compensation and benefits | $ | 99,804 |  |  | $ | 119,889 |

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI http://asc.fasb.org/topic&trid=2122208 + Details
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