Leases

3 Months Ended

Apr. 30, 2021

Operating Leases

The Company has entered into various non-cancellable operating leases for its office spaces with lease periods expiring between fiscal 2022 and fiscal 2029. The operating lease agreements generally provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments if exercised.

Lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The lease right-of-use assets also include any lease payments made and exclude lease incentives such as tenant improvement allowances.

The operating leases typically include non-lease components such as common-area maintenance costs. The Company has elected to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Non-lease components that are not fixed are expensed as incurred as variable lease payments.

Leases with a term of one year or less are not recognized on our condensed consolidated balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

The following tables present information about leases on the condensed consolidated balance sheet.


	As of April 30, 2021		As of January 31, 2021
	(in thousands)
Assets
Lease right-of-use assets	$	23,594	$	24,691
Liabilities
Lease liabilities	5,390		5,262
Lease liabilities, non-current	25,278		26,542

As of April 30, 2021, the weighted average remaining lease term was 5.5 years and the weighted average discount rate used to determine the net present value of the lease liabilities was 3.7%.

The following table presents information about leases on the condensed consolidated statement of operations.


	Three Months Ended April 30,
	2021		2020
	(in thousands)
Operating lease expense	$	1,369	$	1,442
Short-term lease expense	90		299
Variable lease expense	113		302

The following table presents supplemental cash flow information about the Company’s leases.


	Three Months Ended April 30,
	2021		2020
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities	$	1,572	$	1,138