LEASES

9 Months Ended

Dec. 31, 2020

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, adjusted for certain assumptions, as the discount rate when evaluating leases under Topic 842. Management applies the adjusted effective annual interest rate to leases entered for the entirety of the subsequent year.

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 December 31, 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 and nine months ended December 31, 2020 and 2019:


	Three months ended December 31,				Nine months ended December 31,
	2020		2019		2020		2019
Lease Cost



Operating lease cost	$	6,939,330	$	6,636,596	$	21,027,265	$	19,289,946
Short-term lease cost	—		1,800		1,800		1,800
Variable lease cost	882,559		835,637		2,659,932		2,450,322

Total lease cost	$	7,821,889	$	7,474,033	$	23,688,997	$	21,742,068

The following table reports other information about the Company's leases for the three and nine months ended December 31, 2020 and 2019:


	Three months ended December 31,						Nine months ended December 31,
	2020			2019			2020			2019
Other Lease Information
Cash paid for amounts included in the measurement of lease liabilities	$	6,845,544		$	6,515,141		$	20,694,712		$	18,818,335




Right-of-use assets obtained in exchange for new operating lease liabilities(1)	$	2,116,215		$	8,182,788		$	9,748,709		$	31,476,079

Weighted average remaining lease term — operating leases	7.3 years			8.5 years			7.3 years			8.5 years

Weighted-average discount rate — operating leases	6.3		%	6.7		%	6.3		%	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 December 31, 2020:


	December 31, 2020
Operating lease liability maturity analysis
Fiscal 2021	$	6,779,218
Fiscal 2022	24,901,962
Fiscal 2023	20,560,663
Fiscal 2024	16,573,622
Fiscal 2025	12,182,488
Fiscal 2026	8,500,529
Thereafter	30,535,307
Total undiscounted lease liability	120,033,789
Imputed interest	25,649,254
Total discounted lease liability	$	94,384,535

The Company had no leases with related parties at December 31, 2020 or March 31, 2020.