Leases

12 Months Ended

Mar. 31, 2022

Note 5 — Leases

The Company’s operating leases consist primarily of leases for office space, data centers and satellite ground facilities and have remaining terms from less than one year to 11 years, some of which include renewal options, and some of which include options to terminate the leases within one year. Certain earth station leases have renewal terms that have been deemed to be reasonably certain to be exercised and as such have been recognized as part of the Company’s right-of-use assets and lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company recognized right-of-use assets and lease liabilities for such leases in connection with its adoption of ASC 842 as of April 1, 2019 (see Note 1 — The Company and a Summary of Its Significant Accounting Policies — Leases for more information). The Company reports operating lease right-of-use assets in operating lease right-of-use assets and the current and non-current portions of its operating lease liabilities in accrued and other liabilities and non-current operating lease liabilities, respectively.

The Company’s finance leases consist primarily of satellite lifetime Ka-band capacity leases and have remaining terms from less than one year to four years. The Company reports assets obtained under finance leases in property, equipment and satellites, net and the current and non-current portions of its finance lease liabilities in current portion of long-term debt and other long-term debt, respectively.

The components of the Company's lease costs, weighted average lease terms and discount rates are presented in the tables below:


	Fiscal Years Ended
	March 31, 2022		March 31, 2021		March 31, 2020
	(In thousands)
Lease cost:
Operating lease cost	$	71,499	$	65,732	$	60,861
Finance lease cost:
Depreciation of assets obtained under finance leases		11,961		13,656		11,328
Interest on lease liabilities		2,749		3,314		2,144
Short-term lease cost		10,514		5,618		4,750
Variable lease cost		8,752		7,176		8,608
Net lease cost	$	105,475	$	95,496	$	87,691


	As of			As of			As of
	March 31, 2022			March 31, 2021			March 31, 2020
Lease term and discount rate:
Weighted average remaining lease term (in years):
Operating leases		7.0			7.4			7.0
Finance leases	4.4			5.3			6.3

Weighted average discount rate:
Operating leases		5.4	%		5.4	%		5.4	%
Finance leases		5.4	%		5.4	%		5.4	%

The following table details components of the consolidated statements of cash flows for operating and finance leases:


	Fiscal Years Ended
	March 31, 2022		March 31, 2021		March 31, 2020
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	71,335	$	64,676	$	58,987
Operating cash flows from finance leases		3,024		3,108		1,856
Financing cash flows from finance leases		10,749		10,900		8,044

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	61,599	$	78,393	$	25,420
Finance leases		—		2,076		72,711

The following table presents maturities of the Company’s lease liabilities as of March 31, 2022:


	Operating Leases		Finance Leases
	(In thousands)
Expected for fiscal year 2023	$	71,235	$	12,220
Expected for fiscal year 2024		70,286		12,030
Expected for fiscal year 2025		64,609		12,000
Expected for fiscal year 2026		62,296		12,000
Expected for fiscal year 2027		59,699		3,000
Thereafter		130,109		—
Total future lease payments required		458,234		51,250
Less: interest		78,448		5,498
Total	$	379,786	$	45,752

As of March 31, 2022, the Company had $55.5 million of additional lease commitments that will commence in fiscal year 2023 with lease terms of five to sixteen years.