Leases

3 Months Ended

Jun. 30, 2019

The Company’s operating leases are primarily for distribution facilities, and sales and administrative offices. These operating leases have lease periods expiring between 2019 and 2061.

The Company’s finance leases are primarily for vehicles and certain network equipment. These leases expire between 2019 and 2024. Many leases require the Company to pay certain executory costs (taxes, insurance, and maintenance) and contain renewal and purchase options. The Company does not assume renewals in the determination of the lease term unless renewals are deemed to be reasonably assured at lease commencement. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of lease expense for the three months ended June 30, 2019 are as follows (amounts in thousands):



	Three Months Ended June 30, 2019
Operating lease expense	$	2,404
Variable lease expense and other, net ⁽¹⁾	277
Short-term lease expense	—
Finance lease expense
Amortization of right-of-use assets	251
Interest	16
Total lease expense	$	2,948

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⁽¹⁾ Predominantly includes common area maintenance and parking expenses.

Supplemental balance sheet information related to operating and finance leases as of June 30, 2019 is as follows (amounts in thousands, except lease term and discount rate):



	Balance Sheet Location	June 30, 2019
Lease assets
Operating lease ROU assets	Other assets	$	32,169
Finance lease ROU assets⁽¹⁾	Property, plant and equipment, net of accumulated depreciation	2,297
		$	34,466

Lease liabilities
Current operating lease liabilities	Accrued expenses	$	8,061
Current finance lease liabilities	Accrued expenses	1,000
Non-current operating lease liabilities	Other non-current obligations	23,646
Non-current finance lease liabilities	Other non-current obligations	1,328
		$	34,035

Weighted average remaining lease term
Operating leases		6.43 years
Finance leases		2.59 years

Weighted average discount rate
Operating leases		4.72		%
Finance leases		5.63		%

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⁽¹⁾ Finance lease ROU assets are shown net of accumulated depreciation of $4.5 million.

Supplemental cash flow information related to leases for the three months ended June 30, 2019 is as follows (amounts in thousands):



	Three Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	2,922
Operating cash flows used for finance leases	30
Financing cash flows used for finance leases	367
	$	3,319

Lease liabilities arising from obtaining ROU assets
Operating leases	$	1,975
Finance leases	405
	$	2,380

Maturities of operating and finance lease liabilities as of June 30, 2019 were as follows (amounts in thousands):



Fiscal year ending March 31,	Operating Lease Liabilities			Finance Lease Liabilities
2020 (nine months ending March 31, 2020)	$	7,026		$	893
2021	7,546			834
2022	4,431			513
2023	4,035			225
2024	3,426			42
Thereafter	11,501			8
Total undiscounted cash flows	$	37,965		$	2,515
Less imputed interest	(6,258		)	(187		)
Present value of lease liabilities	$	31,707		$	2,328

Leases