Commitments and Contingencies

12 Months Ended

Jan. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 13. Commitments and Contingencies

Litigation

Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment or remediation can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.

From time to time, we may be involved in other legal proceedings and subject to claims incident to the ordinary course of business. Although the results of such legal proceedings and claims cannot be predicted with certainty, we believe we are not currently a party to any legal proceedings. The outcome of any potential legal proceedings, if determined adversely to us, could individually or taken together have a material adverse effect on our business, operating results, cash flows or financial position. Regardless of the outcome, such proceedings can have an adverse impact on us because of defense and settlement costs, diversion of resources and other factors, and there can be no assurances that favorable outcomes will be obtained.

Leases

We have several non-cancelable operating leases, primarily for offices and servers. Rental payments include minimum rental fees.

Minimum rent payments under operating leases are recognized on a straight-line basis over the term of the lease including any periods of free rent. Rent expense for operating leases were $2.9 million, $2.5 million and $1.5 million, for the fiscal year ended January 31, 2015, 2014 and 2013, respectively.

Future minimum lease payments under non-cancelable operating leases as of January 31, 2015 are as follows (in thousands):

	Operating
Period	leases
Fiscal 2016	$	2,665
Fiscal 2017		2,008
Fiscal 2018		1,192
Fiscal 2019		1,081
Fiscal 2020		464
Thereafter		814
Total	$	8,224

Value-Added Reseller Agreement

We have a value-added reseller agreement with salesforce.com, inc. for our use of the Salesforce1 Platform in combination with our developed technology to deliver our Veeva CRM solution, including hosting infrastructure and data center operations provided by salesforce.com. On March 3, 2014, we extended the term of the Value-Added Reseller Agreement for an additional ten years through September 1, 2025 and amended our minimum order commitments. As of January 31, 2015, we remained obligated to pay fees of at least $462.8 million prior to September 1, 2025 in connection with this agreement.