XML 21 R11.htm IDEA: XBRL DOCUMENT v3.20.2
Leases
6 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Leases

5. Leases

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. We have certain insignificant short-term leases with an initial term of twelve months or less that are not recorded in our condensed consolidated balance sheets. Operating right-of-use lease assets are classified as operating lease assets on our condensed 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 comprehensive income. Total operating lease costs were $2,265 and $2,751 for the three months ended September 30, 2020 and 2019, respectively. Total operating lease costs were $4,535 and $5,051 for the six months ended September 30, 2020 and 2019, respectively.

Components of operating lease costs are summarized as follows:

 

 

 

Three Months Ended September 30,

 

 

Six Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating lease costs

 

$

2,093

 

 

$

2,514

 

 

$

4,184

 

 

$

4,677

 

Short-term lease costs

 

 

6

 

 

 

67

 

 

 

13

 

 

 

93

 

Variable lease costs

 

 

289

 

 

 

198

 

 

 

586

 

 

 

337

 

Less: Sublease income

 

 

(123

)

 

 

(28

)

 

 

(248

)

 

 

(56

)

Total operating lease costs

 

$

2,265

 

 

$

2,751

 

 

$

4,535

 

 

$

5,051

 

 

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

 

 

 

Three Months Ended September 30,

 

 

Six Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Cash paid for amounts included in the measurement of operating lease liabilities

 

$

3,132

 

 

$

2,864

 

 

$

6,264

 

 

$

5,480

 

Operating lease assets obtained in exchange for operating lease liabilities

 

 

3,107

 

 

 

 

 

 

3,107

 

 

 

5,324

 

 

We have operating lease agreements for our offices in the United States and India with lease periods expiring between calendar 2020 and 2026. As of September 30, 2020, our operating leases had a weighted average remaining lease term of 4.2 years and a weighted average discount rate of 4.0%. Future minimum aggregate lease payments under operating leases as of September 30, 2020 are summarized as follows:

 

For the year ended March 31,

 

 

 

 

2021 (remaining six months)

 

$

6,401

 

2022

 

 

12,720

 

2023

 

 

12,162

 

2024

 

 

10,300

 

2025

 

 

7,968

 

Thereafter

 

 

2,418

 

Total future lease payments

 

 

51,969

 

Less interest

 

 

(4,528

)

Total lease liabilities

 

$

47,441