Leases

3 Months Ended

Jun. 30, 2022

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 June 30,
	2022		2021
Operating lease expense	$	1,533	$	1,466
Amortization of finance lease assets	28		—

Total lease expense	$	1,561	$	1,466

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 (in thousands):


	As of
	June 30, 2022		March 31, 2022
Supplemental cash flow information related to leases was as follows:

Operating leases:
Operating lease right-of-use-assets	$	22,353	$	23,620

Operating lease liabilities, non-current	$	19,778	$	20,926
Operating lease liabilities, current portion	4,316		4,494
Total operating lease liabilities	$	24,094	$	25,420

Finance leases:
Property, plant and equipment, at cost	$	512	$	569
Accumulated depreciation	(28)		(57)
Property, plant and equipment, net	$	484	$	512

Finance lease obligations, non-current	$	367	$	395
Finance lease obligations, current portion	120		119
Total finance lease liabilities	$	487	$	514

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	1,940	$	6,485
Finance cash flows from finance leases	30		60

Additional 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	316		1,358


Weighted Average Remaining Lease Term:
Operating leases	2.8 years		3.1 years
Finance leases	4.3 years		4.5 years

Weighted Average Discount Rate:
Operating leases	4.65%		4.65%
Finance leases	2.14%		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-cancellable leases were as follows (in thousands):



	As of June 30, 2022
	Operating leases		Finance leases
Remainder of fiscal 2023	$	4,060	$	89
2024	5,528		120
2025	5,592		120
2026	4,509		120
2027	2,353		60
Thereafter	5,796		—
Total undiscounted lease payments	27,838		509
Less imputed interest	(3,744)		(22)
Total lease liabilities	$	24,094	$	487