LEASES

9 Months Ended

Dec. 31, 2020

Operating Leases

The Company primarily leases facilities for office and data center space for its U.S. and international locations under non-cancellable operating leases. The leases expire at various dates through 2030.

The following table provides balance sheet information related to leases as of December 31, 2020 (in thousands):


	December 31, 2020		March 31, 2020
Assets
Operating lease, right-of-use assets	$	70,443	$	78,963

Liabilities
Operating lease liabilities, current	$	12,691	$	5,875
Operating lease liabilities, non-current	85,379		92,452
Total operating lease liabilities	$	98,070	$	98,327

The components of lease expense were as follows (in thousands):


	Three Months Ended December 31,				Nine Months Ended December 31,
	2020		2019		2020		2019
Operating lease expense	$	3,886	$	4,436	$	11,469	$	10,677
Variable lease expense	$	729	$	434	$	2,368	$	872

Short-term lease expense was immaterial for the three and nine months ended December 31, 2020 and 2019.

Cash outflows from operating leases were $6.3 million and $7.2 million, respectively, for the nine months ended December 31, 2020 and 2019.

The following table presents supplemental information for the nine months ended December 31, 2020 (in thousands, except for weighted average):


Weighted average remaining lease term						8.5 years
Weighted average discount rate						4.0%

The following table presents future payments of lease liabilities under the Company's non-cancellable operating leases as of December 31, 2020 (in thousands):


Remainder of 2021	$	3,586
2022	16,382
2023	15,182
2024	11,835
2025	11,497
Thereafter	58,190
Total lease payments	116,672
Less: imputed interest	(18,602)
Present value of lease liabilities	$	98,070

Lease Assignment

In the fourth quarter of fiscal 2018, the Company entered into a 132-month lease agreement (the "Agreement") with CAP Phase I, a Delaware limited liability company (the "Landlord"), to rent approximately 162,000 square feet of office space in a new building in San Jose, California. The lease term began on January 1, 2019. On April 30, 2019, the Company entered into an assignment and assumption (the "Assignment") of the Agreement with the Landlord, and Roku Inc., a Delaware corporation ("Roku"), whereby the Company assigned to Roku the Agreement. Pursuant to the Assignment, the Company expects to be released from all of its obligations under the lease and related standby letter of credit by the end of the Company’s fiscal year ending March 31, 2022, or shortly thereafter. The Company also expects to receive the reimbursement of base rent and direct expenses from Roku by the end of the Company’s fiscal year ending March 31, 2021, in accordance with the Assignment.

Amounts related to the Agreement are not included in the right-of-use asset or lease liabilities as of December 31, 2020 or March 31, 2020. The remaining obligations related to the Assignment of $2.8 million and the termination fee of $0.8 million are recorded in Other accrued liabilities and Other liabilities, non-current, respectively, and the expected receivable of $6.4 million due in February 2021 is recorded in Other current assets, on the Company's Condensed Consolidated Balance Sheets as of both December 31, 2020 and March 31, 2020.