Commitments and Contingencies

3 Months Ended

Apr. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

As of April 30, 2019, we had unused letters of credit outstanding associated with our various operating leases totaling $9.7 million.

We have entered into certain noncancelable contractual arrangements that require future purchases of goods and services. These arrangements primarily relate to cloud infrastructure support and sales and marketing activities. As of April 30, 2019, our noncancelable contractual obligations with a remaining term of more than one year were as follows (in thousands):



Fiscal 2020, remainder	$	6,142
Fiscal 2021	10,987
Fiscal 2022	9,379
Fiscal 2023	898
Fiscal 2024	943
Thereafter	4,555
Total	$	32,904

Indemnification

We enter into indemnification provisions under our agreements with other companies in the ordinary course of business, including business partners, contractors and parties performing our research and development. Pursuant to these arrangements, we agree to indemnify and defend the indemnified party for certain claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claim because of our activities. The duration of these indemnification agreements is generally perpetual. The maximum potential amount of future payments we could be required to make under these indemnifications is not determinable. Historically, we have not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, we believe the fair value of these indemnification agreements is not material as of April 30, 2019 and January 31, 2018. We maintain commercial general liability insurance and product liability insurance to offset certain of our potential liabilities under these indemnification agreements.

We have entered into indemnification agreements with each of our directors and executive officers. These agreements require us to indemnify such individuals, to the fullest extent permitted by Delaware law, for certain liabilities to which they may become subject as a result of their affiliation with us.

Claims and Litigation

From time to time, we may be subject to legal proceedings, claims and litigations made against us in the ordinary course of business. We believe the final outcome of these matters will not have a material adverse effect on our business, consolidated financial position, results of operations or cash flows. In June 2011, RMail Limited, RPost Communications Limited and RPost Holdings filed a complaint against us for patent infringement in the U.S. District Court for the Eastern District of Texas. In October 2012, RPost Holdings Inc. and RPost Communications Limited filed another patent infringement complaint against us in the same court. The complaints allege, among other things, that DocuSign infringes certain RPost patents and seek damages, interest, costs and attorneys’ fees. While we intend to vigorously defend these and any other lawsuits, intellectual property cases are complex and inherently uncertain and there can be no assurance that we will prevail in defense of these actions. Based on the state of the infringement contentions and evaluation of the facts available at this time, we do not believe a loss contingency is probable and we cannot estimate a reasonable range of possible loss at this time.