Effective February 3, 2019, the Company adopted the new lease accounting standard using the modified retrospective approach. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows the Company to carry forward the historical lease classification. The Company elected to apply the short-term lease measurement and recognition exemption in which right-of use assets (“ROU”) and lease liabilities are not recognized for short-term leases. Adoption of this standard resulted in the recording of net operating lease ROU assets and corresponding operating lease liabilities of $125 million and $149 million, respectively. The net ROU asset includes the effect of reclassifying a portion of facilities-related restructuring reserves as an offset in accordance with the transition guidance. The standard did not materially affect the condensed consolidated statements of operations and had no impact on cash flows.

The Company determines if an arrangement is a lease at inception. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Operating lease ROU assets also include any initial direct costs and prepayments less lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. As the Company's leases generally do not provide an implicit rate, the Company uses its collateralized incremental borrowing rate based on the information available at the lease commencement date, including lease term, in determining the present value of lease payments. Lease expense for these leases is recognized on a straight line basis over the lease term.

The Company's leases include facility leases and data center leases, which are all classified as operating leases. For data center leases, the Company elected the practical expedient to account for the lease and non-lease component as a single lease component.



	Three Months Ended August 3, 2019		Six Months Ended August 3, 2019
Operating lease expenses	$	13,701	$	24,369
Cash paid for amounts included in the measurement of operating lease liabilities	$	8,043	$	15,287
Right-of-use assets obtained in exchange for lease obligation	$	10,107	$	11,244



	Classification on the Condensed Consolidated Balance Sheet	August 3, 2019
Right-of-use assets	Other non-current assets	$	113,024

Current portion of lease liabilities	Accrued liabilities	26,874
Non-current portion of lease liabilities	Other non-current liabilities	116,379
Total lease liabilities		$	143,253



Fiscal Year	Operating Leases
Remainder of 2020	$	16,801
2021	33,157
2022	31,029
2023	24,304
2024	16,138
Thereafter	45,991
Total lease payments	167,420
Less: imputed interest	24,167
Present value of lease liabilities	$	143,253

As previously disclosed in our Annual Report on Form 10-K for the year ended February 2, 2019 and under the previous lease accounting standard ASC 840, the aggregate future non-cancelable minimum rental payments on our operating leases, as of February 2, 2019, are as follows (in thousands):