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LEASES
 12 Months Ended
Mar. 31, 2024
Leases [Abstract]  
LEASES LEASES
The components of lease expense were as follows:
For the years ended March 31,
202420232022
Operating lease expense$10,934 $12,030 $13,482 
Variable lease expense$3,690 $6,378 $3,837 
The supplemental cash flow information related to leases was as follows:
For the years ended March 31,
202420232022
Cash outflows from operating leases$14,634 $18,985 $17,310 
Right-of-use assets obtained in exchange for operating lease obligations$2,311 $3,777 $9,104 
Short-term lease expense was immaterial during the years ended March 31, 2024 and 2023.
The following table presents supplemental lease information:
March 31, 2024March 31, 2023
Weighted average remaining lease term6.2 years7.0 years
Weighted average discount rate4.3%4.1%
The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of March 31, 2024:
2025$13,737 
202612,633 
202711,331 
202810,661 
202910,487 
Thereafter18,435 
Total lease payments77,284 
Less: imputed interest(9,342)
Present value of lease liabilities$67,942 
The Company continues to evaluate its leases for potential impairments. During the third quarter of fiscal 2024, in support of the Company's office-home hybrid workforce model, the Company's board of directors authorized the cessation of use of approximately 42% of leased space at the Company’s headquarters at 675 Creekside Way, Campbell, CA (the “Company’s Headquarters”). The Company ceased use of the space on November 2, 2023, and plans to continue to hold this space available for sublease. Additionally, the Company partially ceased use of office space for a certain international lease and does not plan to hold this available for sublease.
The Company reviewed the recoverability of the related right-of-use asset and determined the changes in the intended use of these locations represented an impairment indicator, as these events indicated the carrying value of the right-of-use asset may not be recoverable. In connection with partially ceasing use of the Company’s Headquarters and an international office space, the Company recorded impairment charges of $9.9 million and $1.1 million, respectively, as the carrying amount of the right-of-use assets related to the leases exceeded its fair value based on the Company’s estimate of future discounted cash flows under
the income approach. The fair value represented a Level 3 measurement and utilized certain unobservable inputs which required significant judgment and estimates, including estimated sublease income, temporary idling periods, discount rates and future cash flows based on the Company’s experience and assessment of existing market conditions. The estimation of sublease income is subject to uncertainty due to various factors, including market conditions, demand for the Company’s leased headquarters, the future financial stability of potential subtenants, market rent, any related free rent periods and uncertainties regarding demand for the commercial real estate market. Temporary idling periods are difficult to predict accurately and may arise due to unforeseen circumstances, such as availability of new tenants, economic downturns, or changes in commercial real estate market conditions. The estimated discount rate of 11% is influenced by various factors, including prevailing interest rates, credit risk, tenor, and sub-lease specific characteristics. The estimated future cash flows were calculated by factoring in the approximated sublease income, temporary idling periods, and discount rates to determine the Level 3 fair value measurement. The Company performed a sensitivity analysis and determined that variations in the aforementioned assumptions do not materially impact the Company’s fair value measurement. During fiscal 2024, the non-cash charge of $11.0 million was recorded as an impairment of long-lived assets on the consolidated statements of operations and consisted of an $11.0 million impairment of operating lease right-of-use assets.
During fiscal 2023, certain leases were impaired, and as a result, $2.7 million of right-of-use assets were written off.