Leases (Notes)

3 Months Ended

Jun. 30, 2020

Operating Leased Assets [Line Items]

Leases of Lessee Disclosure [Text Block]

Accounting Policies and Matters Requiring Management's Judgment

When determining the economic life of a lease the Company adopts a convention of applying an economic life equal to the useful life as specified in its accounting policy. Refer to Note 1, “Property and Equipment,” to the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2020 for a description of the Company's accounting policy regarding useful lives.

The Company uses its effective annual interest rate as the discount rate when evaluating leases under Topic 842. Management applies its effective annual interest rate to leases entered for the entirety of the subsequent year. For example, fiscal 2020’s annual effective interest rate of 5.8% will be used in the determination of lease type as well as the discount rate when calculating the present value of lease payments for all leases entered into in fiscal 2021 or until a new annual effective interest rate is available for application.

Based on its historical practice, the Company believes it is reasonably certain to exercise a given option associated with a given office space lease. Therefore, the Company classifies all lease options for office space as “reasonably certain” unless it has specific knowledge to the contrary for a given lease. The Company does not believe it is reasonably certain to exercise any options associated with its office equipment leases.

Periodic Disclosures

The Company's leases consist of real estate leases for office space as well as office equipment leases, all of which were classified as operating at June 30, 2020. Both the real estate and office equipment leases range from three years to five years, and generally contain options to extend which mirror the original terms of the lease.

The following table reports information about the Company's lease cost for the three months ended June 30, 2020 and 2019:

	Three months ended June 30,
	2020		2019
Lease Cost
Operating lease cost	$	7,069,662	$	6,230,579
Short-term lease cost	1,800		—
Variable lease cost	879,650		804,607
Total lease cost	$	7,951,112	$	7,035,186

The following table reports other information about the Company's leases for the three months ended June 30, 2020 and 2019:

	Three months ended June 30,
	2020			2019
Other Lease Information
Cash paid for amounts included in the measurement of lease liabilities	$	6,936,849		$	6,032,398
Right-of-use assets obtained in exchange for new operating lease liabilities(1)	$	4,123,442		$	17,493,249
Weighted average remaining lease term — operating leases	7.2 years			5.2 years
Weighted-average discount rate — operating leases	6.6		%	6.7		%

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⁽¹⁾ In May 2019 the Company executed a new 10 year lease agreement for its corporate headquarters in Greenville, South Carolina. The lease payments commenced in December 2019; however, execution of the lease agreement triggered recognition of the right-of-use asset in May 2019 for approximately $15.6 million.

The following table reports information about the maturity of the Company's operating leases as of June 30, 2020:

	June 30, 2020
Operating lease liability maturity analysis
Fiscal 2021	$	19,920,292
Fiscal 2022	23,646,592
Fiscal 2023	19,363,738
Fiscal 2024	15,435,761
Fiscal 2025	11,176,842
Fiscal 2026	7,578,950
Thereafter	28,338,811
Total undiscounted lease liability	$	125,460,986
Imputed interest	27,845,340
Total discounted lease liability	$	97,615,646

The Company had no leases with related parties at June 30, 2020.