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 condensed consolidated statements of net income and comprehensive income. Total operating lease costs were $475 and $942 for the three months ended June 30, 2023 and 2022, respectively.

Components of operating lease costs are summarized as follows:


	Three Months Ended June 30,
	2023			2022
Operating lease costs	$	622		$	949
Variable lease costs		181			173
Less: Sublease income		(328	)		(180	)
Total operating lease costs	$	475		$	942

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


	Three Months Ended June 30,
	2023		2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,144	$	2,308
Operating lease assets obtained in exchange for operating lease liabilities		585		—

We have operating lease agreements for our offices in the United States and India with lease periods expiring between 2023 and 2028. As of June 30, 2023, our operating leases had a weighted average remaining lease term of 2.1 years and a weighted average discount rate of 4.4%. Future minimum aggregate lease payments under operating leases as of June 30, 2023 are summarized as follows:


For the year ended March 31,
2024	$	2,797
2025		3,520
2026		572
2027		143
2028		150
2029 and beyond		13
Total future lease payments		7,195
Less interest		(340	)
Total lease liabilities	$	6,855

In the three months ended June 30, 2023, we recorded impairments of $359 to our right-of-use assets and certain related fixed assets associated with the vacated locations, or portions thereof, in St. Louis and Hunt Valley based on projected sublease rental income and estimated sublease commencement dates and the early termination of a portion of our St. Louis lease.

In the three months ended June 30, 2022, we vacated portions of certain leased locations and recorded impairments of $524 to the operating right-of-use asset and related fixed assets for our previously vacated portion of our St. Louis office related to changes in projected sublease assumptions.

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.