Leases

9 Months Ended

Dec. 31, 2021

LEASES

We have several non-cancellable operating leases, primarily for office space, that expire at various dates over the next nine years. These leases generally contain renewal options to extend for one lease term of five years. For leases that we are reasonably certain we will exercise the lease renewal options, the options were considered in determining the lease term, and associated potential option payments are included in the lease payments. The payments used in the renewal term were estimated using the percentage rate increase of historical rent payments for each location where the renewal will be exercised.

Payments due under the lease contracts include annual fixed payments for office space. Variable payments including payments for our proportionate share of the building’s property taxes, insurance, and common area maintenance are treated as non-lease components and are recognized in the period for which the costs occur.

Lease expense was as follows (in thousands):


	Three-Months Ended December 31,				Nine-Months Ended December 31,
	2021		2020		2021		2020
Operating lease expense	$	1,465	$	1,072	$	4,397	$	3,269
Amortization of finance lease assets	29		—		29		—

Total lease expense	$	1,494	$	1,072	$	4,426	$	3,269

Leases with an initial term of 12 months or less (“short-term lease”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term.

Other information related to leases was as follows (dollars in thousands):


	As of
	December 31, 2021		March 31, 2021
Supplemental cash flow information related to leases was as follows:

Operating leases:
Operating lease right-of-use-assets	$	24,534	$	19,108

Operating lease liabilities	21,855		17,875
Operating lease liabilities, net of current portion	4,653		3,384
Total operating lease liabilities	$	26,508	$	21,259

Finance leases:
Property, plant and equipment, at cost	$	569	$	—
Accumulated depreciation	(29)		—
Property, plant and equipment, net	$	540	$	—

Finance lease obligations	$	423	$	—
Finance lease obligations, net of current portion	119		—
Total finance lease liabilities	$	542	$	—

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	1,724	$	1,076
Finance cash flows from finance leases	30		—

Additional lease information:
ROU assets obtained in exchange for operating lease obligations	$	1,032	$	—
ROU assets obtained in exchange for finance lease obligations	569		—
Reductions to ROU assets resulting from reductions to operating lease obligations	329		268


Weighted Average Remaining Lease Term:
Operating leases	5.89		6.94
Finance leases	4.75		—

Weighted Average Discount Rate:
Operating leases	5.00%		4.95%
Finance leases	2.08%		—%

We determined the discount rate for leases using a portfolio approach to determine an incremental borrowing rate to calculate the right-of-use assets and lease liabilities.

Maturities of lease liabilities under non-cancellable leases were as follows (in thousands):


	As of
	December 31, 2021
	Operating leases		Finance leases
2022	$	1,344	$	120
2023	5,859		120
2024	5,422		120
2025	5,584		120
2026	4,520		90
Thereafter	8,158		—
Total undiscounted lease payments	30,887		570
Less imputed interest	(4,379)		(28)
Total lease liabilities	$	26,508	$	542