Leases

6 Months Ended

Sep. 30, 2022

The Company leases office space under non-cancelable operating leases, which expire from 2023 to 2031. All of its office leases are classified as operating leases with lease expense recognized on a straight-line basis over the lease term.

Lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As these leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company considers information including, but not limited to, the lease term, the Company's credit rating and interest rates of similar debt instruments with comparable credit ratings. The lease right-of-use assets are also increased by any lease prepayments made and reduced by any lease incentives such as tenant improvement allowances. Options to extend the lease term are included in the lease term when it is reasonably certain that the Company will exercise the extension option.

The Company’s operating leases typically include nonlease components such as common-area maintenance costs. The Company has elected to include nonlease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Nonlease components that are not fixed are expensed as incurred as variable lease payments.

Leases with a term of one year or less are not recognized on the Company’s condensed consolidated balance sheet.

In the second quarter of fiscal 2023, the Company evaluated its real estate portfolio and decided to abandon certain office space leases. For the three months ended September 30, 2022, the Company recorded a $1.5 million cost associated with leasehold improvement write-offs and $1.2 million of acceleration of right-of-use assets.

The following table presents information about leases on the condensed consolidated balance sheet (in thousands):


	September 30, 2022		March 31, 2022
Assets
Lease right-of-use-assets	$	44,599	$	50,465
Liabilities
Lease liabilities	$	11,025	$	11,103
Lease liabilities, non-current	42,842		49,809
Total operating lease liabilities	$	53,867	$	60,912

As of September 30, 2022, the weighted average remaining lease term was 4.9 years and the weighted average discount rate was 6.9%.

The following table presents information about leases on its condensed consolidated statement of operations (in thousands):


	Three Months Ended September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Operating lease expense	$	3,360	$	3,481	$	6,873	$	6,954
Short-term lease expense	205		153		451		303
Variable lease expense	854		731		1,498		1,363

The following table presents supplemental cash flow information about the Company’s leases (in thousands):


	Six Months Ended September 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities	$	7,359	$	7,567
Operating lease assets obtained in exchange for new lease liabilities (1)	245		319

(1) Includes the impact of new leases as well as remeasurements and modifications to existing leases.

As of September 30, 2022, remaining maturities of lease liabilities were as follows (in thousands):


Fiscal Years Ending March 31,	Operating Leases
2023 (remaining six months)	$	7,012
2024	13,658
2025	11,315
2026	11,528
2027	12,081
2028	6,185
Thereafter	2,014
Total operating lease payments	$	63,793
Less imputed interest	(9,926)
Total operating lease liabilities	$	53,867