Leases

12 Months Ended

Mar. 31, 2020

Effective April 1, 2019, the Company adopted the new lease accounting standard using the modified retrospective approach. The Company elected the package of practical expedients permitted under the transition guidance with the new standard, which among other things, allows the Company to carry forward historical lease classification. The Company elected to apply the short-term measurement and recognition exemption in which ROU assets and lease liabilities are not recognized for short-term leases. Adoption of this standard resulted in recording of net operating lease ROU assets and corresponding operating lease liabilities of $124.6 million and $137.3 million, respectively. The net ROU asset includes the effect of reclassifying a portion of facilities-related restructuring reserves as an offset in accordance with the transition guidance. The standard did not materially affect the consolidated statements of income and had no impact on the condensed consolidated statements of cash flows.

The Company determines if an arrangement is a lease at its inception. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Operating lease ROU assets also include any initial direct costs and prepayments less lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options. As the Company's leases generally do not provide an implicit rate, the Company uses its collateralized incremental borrowing rate based on the information available at the lease commencement date, including lease term, in determining the present value of lease payments. Lease expense for these leases is recognized on a straight-line basis over the lease term.

Operating lease arrangements are comprised primarily of real estate and equipment agreements for which the ROU assets are included in other assets and the corresponding lease liabilities, depending on their maturity, are included in accrued liabilities or other long-term liabilities in the consolidated balance sheets. There are certain immaterial finance leases recorded in the consolidated balance sheets. The Company has elected to account for the lease and non-lease components as a single lease component.

The details of the Company's total lease expense are as follows (in millions):



	Year Ended March 31,
	2020
Operating lease expense	$	50.8
Variable lease expense	10.8
Short-term lease expense	8.8
Total lease expense	$	70.4

The Company's leases are included as a component of the following balance sheet lines (in millions):



	March 31,
	2020
Other assets:
Right-of-use assets	$	119.5
Total lease assets	$	119.5
Accrued liabilities:
Current portion of lease liabilities	$	44.5
Other long-term liabilities:
Non-current portion of lease liabilities	94.7
Total lease liabilities	$	139.2

As of March 31, 2020, there are additional operating lease commitments of approximately $9.0 million that have not yet commenced. The following table presents the maturities of lease liabilities as of March 31, 2020 (in millions):



Fiscal year ending March 31,	Operating Leases
2021	$	49.2
2022	41.9
2023	22.8
2024	12.2
2025	8.2
Thereafter	18.9
Total lease payments	$	153.2
Less: Imputed lease interests	14.0
Total lease liabilities	$	139.2

The following table represents future minimum lease obligations under non-cancelable operating leases as of March 31, 2019 (in millions):



Fiscal year ending March 31,	Operating Leases
2020	$	49.0
2021	38.2
2022	30.3
2023	18.0
2024	9.1
Thereafter	22.6
Total	$	167.2

The Company's weighted-average remaining lease-term and weighted-average discount rate are as follows:



	As of March 31, 2020
Weighted average remaining lease-term	4.4 years
Weighted average discount rate	4.6	%

Leases

The details of the Company's total lease expense are as follows (in millions):



	Year Ended March 31,
	2020
Operating lease expense	$	50.8
Variable lease expense	10.8
Short-term lease expense	8.8
Total lease expense	$	70.4

The Company's leases are included as a component of the following balance sheet lines (in millions):



	March 31,
	2020
Other assets:
Right-of-use assets	$	119.5
Total lease assets	$	119.5
Accrued liabilities:
Current portion of lease liabilities	$	44.5
Other long-term liabilities:
Non-current portion of lease liabilities	94.7
Total lease liabilities	$	139.2



Fiscal year ending March 31,	Operating Leases
2021	$	49.2
2022	41.9
2023	22.8
2024	12.2
2025	8.2
Thereafter	18.9
Total lease payments	$	153.2
Less: Imputed lease interests	14.0
Total lease liabilities	$	139.2

The following table represents future minimum lease obligations under non-cancelable operating leases as of March 31, 2019 (in millions):



Fiscal year ending March 31,	Operating Leases
2020	$	49.0
2021	38.2
2022	30.3
2023	18.0
2024	9.1
Thereafter	22.6
Total	$	167.2

The Company's weighted-average remaining lease-term and weighted-average discount rate are as follows:



	As of March 31, 2020
Weighted average remaining lease-term	4.4 years
Weighted average discount rate	4.6	%