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Balance Sheet Components

3 Months Ended

Apr. 30, 2020

Balance Sheet Related Disclosures [Abstract]

Note 4. Balance Sheet Components

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):

	April 30,		January 31,
	2020		2020
Prepaid expenses	$	22,091	$	16,416
Capitalized qualifying implementation costs incurred in a hosting arrangement that is a service contract, net of amortization (1)		1,143		1,202
Other current assets		5,653		4,247
Total prepaid expenses and other current assets	$	28,887	$	21,865

(1)	Capitalized stock-based compensation expense and the amortization of the capitalized costs were not material for the periods presented. We have not recorded any related impairment charges during the periods presented.

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	April 30,			January 31,
	2020			2020
Servers and related equipment	$	322,388		$	312,369
Leasehold improvements		80,354			79,979
Computer hardware		24,235			23,086
Furniture and fixtures		14,286			14,192
Construction in progress		24,056			18,370
Total property and equipment		465,319			447,996
Less: accumulated depreciation		(273,294	)		(257,020	)
Total property and equipment, net	$	192,025		$	190,976

As of April 30, 2020, the gross carrying amount of property and equipment included $226.5 million of servers and related equipment and $20.0 million of construction in progress acquired under finance leases, and the accumulated depreciation of property and equipment acquired under these finance leases was $111.0 million. As of January 31, 2020, the gross carrying amount of property and equipment included $216.4 million of servers and related equipment and $16.3 million of construction in progress acquired under finance leases, and the accumulated depreciation of property and equipment acquired under these finance leases was $98.0 million.

Depreciation expense related to property and equipment was $16.4 million and $12.6 million for the three months ended April 30, 2020 and 2019, respectively. Included in these amounts were depreciation expense for servers and related equipment acquired under finance leases in the amount of $13.1 million and $8.6 million, for the same periods respectively. Construction in progress primarily consists of servers and networking equipment and storage infrastructure being provisioned in our data center facilities. Interest capitalized to property and equipment was not material for the periods presented.

Operating Lease Right-of-Use Assets, Net

Operating lease right-of-use assets, net consisted of the following (in thousands):

	April 30,			January 31,
	2020			2020
Operating lease right-of-use assets	$	260,825		$	233,255
Less: accumulated amortization		(45,162	)		(35,449	)
Operating lease right-of-use assets, net	$	215,663		$	197,806

Other Long-term Assets

Other long-term assets consisted of the following (in thousands):

	April 30,		January 31,
	2020		2020
Deposits, noncurrent	$	2,772	$	2,726
Internally developed software costs, net of amortization (1) (2)		16,199		14,521
On-premises software, net of amortization (2) (3)		10,425		10,594
Other assets, noncurrent		4,023		4,140
Other long-term assets	$	33,419	$	31,981

(1)	Included in these amounts were $5.6 million and $5.0 million in capitalized stock-based compensation expense as April 30, 2020 and January 31, 2020, respectively.

(2)

The accumulated amortization of capitalized software costs in the aggregate was $3.6 million and $1.7 million as of April 30, 2020 and January 31, 2020, respectively. Amortization expense related to capitalized software was $1.9 million for the three months ended April 30, 2020 and was not material for the three months ended April 30, 2019.

(3)	The estimated useful lives of on-premises software range from three to four years.