Leases

12 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

Note 7 — 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 10 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. In accordance with ASC 842, 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 three 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.

During the fourth quarter of fiscal year 2023, after the completion of the Link-16 TDL Sale, the Company reduced its real estate footprint as part of cost-reduction measures taken in order to right-size the Company’s remaining businesses. As a result, the Company recorded an impairment of right-of-use assets of $19.1 million and an impairment of leasehold improvements and furniture and fixtures of an insignificant amount, taking into consideration the current and anticipated future market conditions for sublease income in the markets the leases are located, recorded in the consolidated statements of operations in selling, general and administrative expenses spread across each of the Company's segments.

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, 2023		March 31, 2022		March 31, 2021
	(In thousands)
Lease cost:
Operating lease cost	$	87,627	$	68,822	$	63,576
Finance lease cost:
Depreciation of assets obtained under finance leases		11,947		11,961		13,656
Interest on lease liabilities		2,441		2,749		3,314
Short-term lease cost		14,410		10,514		5,618
Variable lease cost		15,261		8,752		7,176
Net lease cost	$	131,686	$	102,798	$	93,340

	As of			As of			As of
	March 31, 2023			March 31, 2022			March 31, 2021
Lease term and discount rate:
Weighted average remaining lease term (in years):
Operating leases		6.3			7.0			7.4
Finance leases	3.4			4.4				5.3
Weighted average discount rate:
Operating leases		5.7	%		5.4	%		5.4	%
Finance leases		6.3	%		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, 2023		March 31, 2022		March 31, 2021
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	69,595	$	68,763	$	63,167
Operating cash flows from finance leases		2,449		3,024		3,108
Financing cash flows from finance leases		11,572		10,749		10,900
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	9,817	$	61,599	$	66,162
Finance leases		2,232		—		2,076

The following table presents maturities of the Company’s lease liabilities as of March 31, 2023:

	Operating Leases		Finance Leases
	(In thousands)
Expected for fiscal year 2024	$	67,803	$	13,230
Expected for fiscal year 2025		64,508		12,000
Expected for fiscal year 2026		61,466		12,000
Expected for fiscal year 2027		58,239		3,000
Expected for fiscal year 2028		50,820		—
Thereafter		83,618		—
Total future lease payments required		386,454		40,230
Less: interest		62,809		3,825
Total	$	323,645	$	36,405

As of March 31, 2023, the Company had $56.1 million of additional lease commitments with lease terms of three to sixteen years.