Leases

12 Months Ended

Mar. 31, 2024

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,
	2024		2023
Operating lease expense	$	4,791	$	5,807
Amortization of right of use assets of finance leases assets	114		114
Interest expense of finance lease liabilities	7		10
Total lease expense	$	4,912	$	5,931

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


	As of March 31,
	2024			2023
Supplemental cash flow information related to leases was as follows:

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

Operating lease liabilities, non-current	$	11,457		$	16,380
Operating lease liabilities, current	4,734			4,427
Total operating lease liabilities	$	16,191		$	20,807

Finance leases:
Property, plant and equipment, at cost	$	569		$	569
Accumulated depreciation	(285)			(171)
Property, plant and equipment, net	$	284		$	398

Finance lease liabilities, non-current	$	167		$	282
Finance lease liabilities, current	125			122
Total finance lease liabilities	$	292		$	404

Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flow from operating leases	$	5,800		$	6,226
Finance cash flows from finance leases	120			119

Additional operating lease information:
ROU assets obtained in exchange for operating lease obligations	$	—		$	100

Reductions to ROU assets resulting from reductions to operating lease obligations	955			1,175
Reductions to ROU assets resulting from asset impairments	8,850			—


Weighted Average Remaining Lease Term:
Operating leases	4.3 years			5.0 years
Finance leases	2.5 years			3.5 years

Weighted Average Discount Rate:
Operating leases	5.07		%	5.05		%
Finance leases	2.08		%	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.

See Note 1, Significant Accounting Policies and Note 8, Goodwill and asset impairment charge for information regarding non-cash impairment charges in fiscal 2024 and 2023.

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


	As of March 31, 2024
	Operating leases		Finance leases
Year ending:
2025	$	5,453	$	120
2026	4,523		120
2027	2,364		60
2028	2,062		—

Thereafter	3,734		—
Total undiscounted lease payments	18,136		300
Less imputed interest	(1,945)		(8)
Total lease liabilities	$	16,191	$	292

Leases