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Leases | 9 Months Ended
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Oct. 31, 2019
Leases [Abstract] |
Leases | Note 5. Leases We have entered into various non-cancellable operating lease agreements for certain of our offices and data centers with lease periods expiring primarily between fiscal years 2020 and 2029. Certain of these arrangements have free or escalating rent payment provisions and optional renewal or termination clauses. Our operating leases typically include variable lease payments, which are primarily comprised of common area maintenance and utility charges for our offices and power and network connections for our data centers, that are determined based on actual consumption. Our operating lease agreements do not contain any residual value guarantees, covenants, or other restrictions. We also entered into various finance lease arrangements to obtain servers and related equipment for our data center operations. These agreements are primarily for four years and certain of these arrangements have optional renewal or termination clauses. The leases are secured by the underlying leased servers and related equipment. We sublease certain floors of our Redwood City, San Francisco, and London offices. These subleases have terms ranging from 31 to 55 months that will expire at various dates by fiscal year 2023. The components of lease cost, which were included in operating expenses in our condensed consolidated statements of operations, were as follows (in thousands):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | October 31, |  |  | October 31, |
|  | 2019 |  |  | 2019 |
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of finance lease right-of-use assets |  | $ | 11,713 |  |  | $ | 29,823 |
Interest on finance lease liabilities |  |  | 1,312 |  |  |  | 2,987 |
Operating lease cost, gross |  |  | 12,300 |  |  |  | 36,533 |
Variable lease cost, gross |  |  | 3,040 |  |  |  | 8,741 |
Sublease income |  |  | (2,741 | ) |  |  | (8,327 | )
Total lease cost (1) |  | $ | 25,624 |  |  | $ | 69,757 |
| (1) | Short-term lease cost for the three and nine months ended October 31, 2019 was not material and is not included in the table above.
Supplemental cash flow information related to leases was as follows (in thousands):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | October 31, |  |  | October 31, |
|  | 2019 |  |  | 2019 |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |  |
Operating cash flows for operating leases |  | $ | 11,562 |  |  | $ | 35,053 |
Operating cash flows for finance leases |  |  | 802 |  |  |  | 2,531 |
Financing cash flows for finance leases |  |  | 7,055 |  |  |  | 26,200 |
Right-of-use assets obtained in exchange of lease obligations (1) |  |  |  |  |  |  |  |
Operating leases |  |  | 1,016 |  |  |  | 230,371 |
Finance leases |  |  | 40,530 |  |  |  | 84,950 |
| (1) | Includes the adoption impact of ASC Topic 842 on the opening balance sheet as of February 1, 2019 as disclosed in Note 1.
Supplemental information related to the remaining lease term and discount rate was as follows (in thousands):
|  | October 31, |
|  | 2019 |
Weighted-average remaining lease term (in years) |  |  |  |
Operating leases |  |  | 6.84 |
Finance leases |  |  | 3.07 |
Weighted-average discount rate |  |  |  |
Operating leases |  |  | 5.41 | %
Finance leases |  |  | 4.29 | %
As of October 31, 2019, maturities of our operating and finance lease liabilities, which do not include short-term leases and variable lease payments, are as follows (in thousands):
Years ending January 31: |  | Operating Leases (1) |  |  | Finance Leases |
Remainder of 2020 |  | $ | 14,577 |  |  | $ | 17,559 |
2021 |  |  | 51,175 |  |  |  | 48,240 |
2022 |  |  | 48,918 |  |  |  | 38,084 |
2023 |  |  | 39,241 |  |  |  | 29,160 |
2024 |  |  | 37,230 |  |  |  | 8,742 |
Thereafter |  |  | 115,241 |  |  |  | — |
Total lease payments |  | $ | 306,382 |  |  | $ | 141,785 |
Less: imputed interest |  |  | (52,678 | ) |  |  | (9,842 | )
Present value of total lease liabilities |  | $ | 253,704 |  |  | $ | 131,943 |
| (1) | Non-cancellable sublease proceeds for the remainder of the fiscal year ending January 31, 2020 and the fiscal years ending January 31, 2021, 2022, and 2023 of $1.4 million, $9.5 million, $7.1 million, and $6.1 million, respectively, are not included in the table above.
As of October 31, 2019, we had operating leases for two of our data centers that have not yet commenced with aggregated undiscounted future payments of $17.2 million. These operating leases will commence in the later part of fiscal year 2020 and have lease terms ranging from 4 to 5 years and therefore, we did not reflect these on the condensed consolidated balance sheet as of October 31, 2019 and the tables above. We did not have any finance leases that have not yet commenced as of October 31, 2019. We establish assets and liabilities for the present value of estimated future costs to return certain of our leased facilities to their original condition. Such assets are depreciated over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated restoration costs. For the nine months ended October 31, 2019, we recorded $2.8 million in other long-term liabilities related to the present value of our estimated asset retirement obligation for our headquarters facility. We did not have material asset retirement obligations as of January 31, 2019. The accretion expense, which was included in operating expenses in our condensed consolidated statements of operations, was not material for all periods presented.

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