Company: ZM
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001585521-25-000042
Chunk: 156

Company: Zoom Communications, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 156
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 lease agreements related to our Hardware-as-a-Service (“HaaS”) offering. We elect to apply the lessor practical expedient per ASC 842 and account for HaaS with customers as a combined performance obligation with the right to access our unified communications and collaboration platform under ASC 606, Revenue from Contracts with Customers. HaaS was immaterial to our consolidated financial statements. Many of our leases contain one or more options to extend. As leases approach maturity, we consider various factors such as market conditions and the terms of any renewal options that may exist to determine whether we are reasonably certain to exercise the options to extend the lease. Operating lease expense for the fiscal years ended January 31, 2025, 2024 and 2023 was $26.7 million, $24.9 million and $32.7 million, respectively, excluding short-term lease costs, variable lease costs, and sublease income, each of which was immaterial for the fiscal years ended January 31, 2025, 2024 and 2023.Supplemental balance sheet information related to operating leases was as follows:As of January 31,20252024(in thousands, except life and percentages)Reported as:Assets:Operating lease right-of-use assets$55,900 $58,975 Liabilities:Accrued expenses and other current liabilities$27,026 $24,645 Operating lease liabilities, noncurrent37,406 48,308 Total operating lease liabilities$64,432 $72,953 Weighted average remaining lease term3.3 years3.7 yearsWeighted average discount rate4.4 %4.1 %Supplemental cash flow and other information related to operating leases was as follows:

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Year Ended January 31,202520242023(in thousands)Cash payments included in the measurement of our operating lease liabilities$31,197 $26,471 $27,120 Operating lease right-of-use assets recognized in exchange for new operating lease obligations$21,760 $— $13,857 As of January 31, 2025, the future minimum lease payments included in the measurement of our operating lease liabilities are as follows:As of January 31, 2025(in thousands)Year Ending January 31,2026$27,171 202718,017 202811,512 20299,658 20302,645 Thereafter