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LEASES | 6 Months Ended
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Jan. 31, 2020
Leases [Abstract] |
LEASES | LEASES We have operating leases for offices, research and development facilities and datacenters. Our leases have remaining lease terms of one year to approximately nine years, some of which include options to renew or terminate. We do not include renewal options in the lease terms for calculating our lease liability, as we are not reasonably certain that we will exercise these renewal options at the time of the lease commencement. Our lease agreements do not contain any residual value guarantees or restrictive covenants. Total operating lease cost was $10.2 million and $18.9 million for the three and six months ended January 31, 2020, respectively, excluding short-term leases and variable lease costs, which are not material. Variable lease costs primarily include common area maintenance charges. Total lease expense recognized prior to our adoption of ASC 842 was $8.4 million and $15.7 million for the three and six months ended January 31, 2019, respectively. During the second quarter of fiscal 2020, we ceased using certain office spaces in Bangalore, India. As the carrying value of the related right-of-use assets exceeded fair value, we recorded a $3.0 million impairment in our condensed consolidated statements of operations for the three and six months ended January 31, 2020. Of the $3.0 million impairment, approximately $1.8 million relates to the impairment of the operating lease right-of-use assets and approximately $1.2 million relates to the impairment of leasehold improvements. Additional charges related to asset impairments may be recorded in the future. Supplemental balance sheet information related to leases is as follows:
| As of January 31, 2020
| (in thousands)
Operating leases: |
Operating lease right-of-use assets, gross | $ | 151,975 |
Impairment | (1,756 | )
Accumulated amortization | (14,539 | )
Operating lease right-of-use assets, net | $ | 135,680 |
Operating lease liabilities—current | $ | 31,668 |
Operating lease liabilities—non-current | 129,420 |
Total operating lease liabilities | $ | 161,088 |
Weighted average remaining lease term (in years): | 4.3 |
Weighted average discount rate: | 5.4 | %
Supplemental cash flow and other information related to leases is as follows:
| Six Months Ended January 31, 2020
| (in thousands)
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows from operating leases | $ | 21,436 |
Lease liabilities arising from obtaining right-of-use assets: |
Operating leases | $ | 36,389 |
The undiscounted cash flows for our operating lease liabilities as of January 31, 2020 were as follows:
Fiscal Year Ending July 31: | Amount
| (in thousands)
2020 (remaining six months) | $ | 17,998 |
2021 | 43,636 |
2022 | 42,655 |
2023 | 40,854 |
2024 | 29,849 |
Thereafter | 8,473 |
Total lease payments | 183,465 |
Less: imputed interest | (22,377 | )
Total lease obligation | 161,088 |
Less: current lease obligations | 31,668 |
Long-term lease obligations | $ | 129,420 |
As of January 31, 2020, we have additional operating lease commitments of approximately $4.9 million on an undiscounted basis for certain office leases that have not yet commenced. These operating leases will commence during the remainder of fiscal 2020, fiscal 2021 and fiscal 2022, with lease terms of two to five years. As previously disclosed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2019, the following table summarizes the future minimum payments due under our operating leases as of July 31, 2019, reported under ASC 840:
Fiscal Year Ending July 31: | Amount
| (in thousands)
2020 | $ | 39,540 |
2021 | 41,909 |
2022 | 41,332 |
2023 | 40,695 |
2024 | 30,240 |
Thereafter | 3,511 |
Total | $ | 197,227 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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