Commitments

Letters of Credit

As of January 31, 2015, the Company had a total of $63.8 million in letters of credit outstanding substantially in favor of certain landlords for office space. These letters of credit renew annually and expire at various dates through December 2030.

Leases

The Company leases facilities space and certain fixed assets under non-cancelable operating and capital leases with various expiration dates.

As of January 31, 2015, the future minimum lease payments under non-cancelable operating and capital leases are as follows (in thousands):



	Capital Leases			Operating Leases		Financing Obligation, Building in Progress-Leased Facility(1)
Fiscal Period:
Fiscal 2016	$	104,825		$	289,547	$	1,777
Fiscal 2017	113,982			267,377		16,877
Fiscal 2018	118,259			224,359		21,107
Fiscal 2019	112,807			186,936		21,551
Fiscal 2020	201,471			186,385		21,995
Thereafter	0			1,124,370		252,517
Total minimum lease payments	651,344			$	2,278,974	$	335,824
Less: amount representing interest	(84,477		)
Present value of capital lease obligations	$	566,867

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(1) Total Financing Obligation, Building in Progress-Leased Facility noted above represents the total obligation on the lease agreement noted in Note 3 “Property and Equipment” and includes $125.3 million that was recorded to Financing obligation, building in progress-leased facility, which is included in Other noncurrent liabilities on the balance sheet.

The Company’s agreements for the facilities and certain services provide the Company with the option to renew. The Company’s future contractual obligations would change if the Company exercised these options.

The terms of the lease agreements provide for rental payments on a graduated basis. The Company recognizes rent expense on a straight-line basis over the lease period and has accrued for rent expense incurred but not paid. Of the total operating lease commitment balance of $2.3 billion, approximately $2.0 billion is related to facilities space. The remaining commitment amount is related to computer equipment, other leases, data center capacity and our development and test data center.

In April 2014, the Company entered into an office lease agreement to lease approximately 714,000 rentable square feet of an office building located in San Francisco, California that is under construction. The lease payments associated with the lease will be approximately $560.0 million over the 15.5 year term of the lease, beginning in the Company's first quarter of fiscal 2018, which is reflected above under Operating Leases.

In February 2015, the Company acquired an office building totaling approximately 817,000 rentable square feet. As of January 31, 2015, approximately 500,000 square feet of the building was being leased by the Company (see Note 14 “Subsequent Event”). The lease, which was signed in January 2012, is reflected above under Operating Leases, and the commitment totals $238.5 million. The operating lease commitment is as follows: $16.1 million during fiscal 2016; $16.6 million during fiscal 2017; $17.1 million during fiscal 2018; $17.6 million during fiscal 2019; $18.1 million during fiscal 2020; and $153.0 million thereafter. Beginning in the quarter ending April 30, 2015, this commitment will be excluded from future operating lease obligations.

Rent expense for fiscal 2015, 2014 and 2013 was $162.8 million, $123.6 million and $88.3 million, respectively.

In December 2014, the Company entered into an agreement with a third party provider under which the Company will purchase certain infrastructure services for three years. The agreement provides that the Company will pay $33.0 million in fiscal 2016 and $36.0 million in both fiscal 2017 and 2018 for infrastructure services under the agreement.