Our leasing arrangements are reflected on the balance sheet as right-of-use assets and liabilities pertaining to the rights and obligations created by the leased assets.

Right-of-use lease assets and corresponding lease liabilities are recognized at commencement date based on the present value of lease payments over the expected lease term. Since the interest rate implicit in our lease arrangements is not readily determinable, we determine an incremental borrowing rate for each lease based on the approximate interest rate on a collateralized basis with similar remaining terms and payments as of the lease commencement date to determine the present value of future lease payments. Our lease terms may include options to extend or terminate the lease. Currently, it is not reasonably certain that we will exercise those options and therefore, we utilize the initial, noncancelable, lease term to calculate the lease assets and corresponding liabilities for all our leases. Operating right-of-use lease assets are classified as operating lease assets on our consolidated balance sheets. We determine whether an arrangement is a lease at inception and classify it as finance or operating. All of our existing material leases are classified as operating leases. Our leases do not contain any residual value guarantees.

Our lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. We have applied the practical expedient to combine fixed payments for non-lease components with our lease payments for all of our leases and account for them together as a single lease component, which increases the amount of our lease assets and corresponding liabilities. Payments under our lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease assets and liabilities.

Operating lease costs are recognized on a straight-line basis over the lease term and included as a selling, general and administrative expense in the consolidated statements of net income and comprehensive income. Total operating lease costs were $2,487, $6,549, and $9,190 for the years ended March 31, 2023, 2022, and 2021, respectively.

Components of operating lease costs are summarized as follows:


	Twelve Months Ended March 31,
	2023			2022
Operating lease costs	$	2,800		$	6,328
Short-term lease costs		—			8
Variable lease costs		649			774
Less: Sublease income		(962	)		(561	)
Total operating lease costs	$	2,487		$	6,549

Supplemental cash flow information related to operating leases is summarized as follows:


	Twelve Months Ended March 31,
	2023		2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	9,451	$	13,766
Operating lease assets obtained in exchange for operating lease liabilities		957		1,610

We have operating lease agreements for our offices in the United States and India with lease periods expiring between 2023 and 2025. As of March 31, 2023, our operating leases had a weighted average remaining lease term of 2.0 years and a weighted average discount rate of 4.2%. Future minimum aggregate lease payments under operating leases as of March 31, 2023 are summarized as follows:


For the year ended March 31,
2024	$	4,077
2025		3,667
2026		528
Total future lease payments		8,272
Less interest		(351	)
Total lease liabilities	$	7,921

As of March 31, 2023, we have entered into a lease that has not yet commenced with future lease payments of $686 that are not reflected in the table above. This lease is primarily related to office real estate and will commence in fiscal 2024 with a lease term of up to five years.

During the year ended March 31, 2023, we vacated portions of certain leased locations and recorded impairments of $3,163 to our right-of-use assets and certain related fixed assets associated with the vacated locations, or portions thereof, in St. Louis, Atlanta, Horsham, Hunt Valley, Chapel Hill, Irvine and Bangalore based on projected sublease rental income and estimated sublease commencement dates and the remeasurement of our operating lease liabilities associated with the modification and

early termination of certain leases. The impairment analyses were performed at the asset group level and the impairment charges were estimated by comparing the fair value of each asset group based on the expected cash flows to its respective book value. We determined the discount rate for each asset group based on the approximate interest rate on a collateralized basis with similar remaining terms and payments as of the impairment date. Significant judgment was required to estimate the fair value of each asset group and actual results could vary from the estimates, resulting in potential future adjustments to amounts previously recorded.

During the year ended March 31, 2022, we vacated portions of certain leased locations and recorded impairments of $3,906 to our right-of-use assets and certain related fixed assets associated with the vacated locations, or portions thereof, in Irvine, Horsham, Atlanta, Fairport, Hunt Valley, Bangalore, and St. Louis based on projected sublease rental income and estimated sublease commencement dates.

During the year ended March 31, 2021, as part of our response to the COVID-19 pandemic and ongoing cost reduction efforts, we vacated our Cary office, portions of our Irvine and Horsham offices, and the remainder of our San Diego office. We recorded impairments of $5,539 to our operating right-of-use assets and certain related fixed assets associated with the vacated locations based on projected sublease rental income and estimated sublease commencement dates and the remeasurement of our operating lease liabilities associated with the modification of certain lease expiration dates.