Leases

12 Months Ended

Mar. 31, 2022

LEASES

We have several noncancelable operating leases, primarily for office space, that expire at various dates over the next five 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.

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


	Year Ended March 31,		Three-Months Ended March 31, (transition period)		Year Ended December 31,
	2022		2021		2020		2019
Operating lease expense	$	5,822	$	1,035	$	4,404	$	4,518
Amortization of right of use assets of finance leases assets	57		—		—		—
Interest expense of finance lease liabilities	6		—		—		—
Total lease expense	$	5,885	$	1,035	$	4,404	$	4,518

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


	As of March 31,						As of December 31,
	2022			2021			2020
Supplemental cash flow information related to leases was as follows:

Operating leases:
Operating lease right-of-use assets	$	23,620		$	19,108		$	19,876

Operating lease liabilities, non-current	$	20,926		$	17,875		$	18,736
Operating lease liabilities, current	4,494			3,384			3,331
Total operating lease liabilities	$	25,420		$	21,259		$	22,067

Finance leases:
Property, plant and equipment, at cost	$	569		$	—		$	—
Accumulated depreciation	(57)			—			—
Property, plant and equipment, net	$	512		$	—		$	—

Finance lease liabilities, non-current	$	395		$	—		$	—
Finance lease liabilities, current	119			—			—
Total finance lease liabilities	$	514		$	—		$	—

Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flow from operating leases	$	6,485		$	1,076		$	3,906
Finance cash flows from finance leases	60			—			—

Additional operating lease information:
ROU assets obtained in exchange for operating lease obligations	$	10,323		$	—		$	—
ROU assets obtained in exchange for finance lease obligations	569			—			—
Reductions to ROU assets resulting from reductions to operating lease obligations	1,358			268			3,239
Increases to ROU assets resulting from remeasurement of lease obligations	—			—			3,929

Weighted Average Remaining Lease Term:
Operating leases	3.1 years			6.9 years			7.1 years
Finance leases	4.5 years			N/A			N/A

Weighted Average Discount Rate:
Operating leases	4.65		%	4.95		%	4.94		%
Finance leases	2.14		%	—		%	—		%

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-cancelable leases were as follows (in thousands):


	As of March 31, 2022
	Operating leases		Finance leases
Year ending:
2023	$	5,668	$	120
2024	5,543		120
2025	5,601		120
2026	4,517		120
2027	2,359		60
Thereafter	5,796		—
Total undiscounted lease payments	29,484		540
Less imputed interest	(4,064)		(26)
Total lease liabilities	$	25,420	$	514