Leases

12 Months Ended

Mar. 31, 2023

LEASES

We have several noncancelable operating leases, primarily for office space, that expire at various dates over the next seven 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,
	2023		2022
Operating lease expense	$	5,807	$	5,822
Amortization of right of use assets of finance leases assets	114		57
Interest expense of finance lease liabilities	10		6
Total lease expense	$	5,931	$	5,885

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


	As of March 31,
	2023			2022
Supplemental cash flow information related to leases was as follows:

Operating leases:
Operating lease right-of-use assets	$	19,078		$	23,620

Operating lease liabilities, non-current	$	16,380		$	20,926
Operating lease liabilities, current	4,427			4,494
Total operating lease liabilities	$	20,807		$	25,420

Finance leases:
Property, plant and equipment, at cost	$	569		$	569
Accumulated depreciation	(171)			(57)
Property, plant and equipment, net	$	398		$	512

Finance lease liabilities, non-current	$	282		$	395
Finance lease liabilities, current	122			119
Total finance lease liabilities	$	404		$	514

Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flow from operating leases	$	6,226		$	6,485
Finance cash flows from finance leases	119			60

Additional operating lease information:
ROU assets obtained in exchange for operating lease obligations	$	100		$	10,323
ROU assets obtained in exchange for finance lease obligations	—			569
Reductions to ROU assets resulting from reductions to operating lease obligations	1,175			1,358
Increases to ROU assets resulting from remeasurement of lease obligations	—			—

Weighted Average Remaining Lease Term:
Operating leases	5.0 years			3.1 years
Finance leases	3.5 years			4.5 years

Weighted Average Discount Rate:
Operating leases	5.05		%	4.65		%
Finance leases	2.08		%	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, 2023
	Operating leases		Finance leases
Year ending:
2024	$	5,382	$	120
2025	5,648		120
2026	4,520		120
2027	2,361		59

Thereafter	5,796		—
Total undiscounted lease payments	23,707		419
Less imputed interest	(2,900)		(15)
Total lease liabilities	$	20,807	$	404