Leases

9 Months Ended

Dec. 31, 2019

The Company’s operating leases are primarily for distribution facilities, and sales and administrative offices. These operating leases have lease periods expiring between 2020 and 2061. The Company’s finance leases are primarily for vehicles and certain network equipment. These leases expire between 2020 and 2029.

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 and nine month periods ended December 31, 2019 are as follows (amounts in thousands):



	Three Months Ended December 31, 2019			Nine Months Ended December 31, 2019
Operating lease expense
Operating lease cost	$	2,941		$	7,984
Variable lease cost and other, net ⁽¹⁾	276			830
Short-term lease cost	(2		)	3
Sublease income	(26		)	(53		)
Finance lease expense
Amortization of right-of-use assets	308			902
Interest	30			93
Total lease expense	$	3,527		$	9,759

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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 December 31, 2019 is as follows (amounts in thousands, except lease term and discount rate):



	Balance Sheet Location	December 31, 2019
Lease assets
Operating lease ROU assets	Other assets	$	29,081
Finance lease ROU assets⁽¹⁾	Property, plant and equipment, net of accumulated depreciation	2,718
		$	31,799

Lease liabilities
Current operating lease liabilities	Accrued expenses	$	7,504
Current finance lease liabilities	Accrued expenses	1,146
Non-current operating lease liabilities	Other non-current obligations	21,660
Non-current finance lease liabilities	Other non-current obligations	1,565
		$	31,875

Weighted average remaining lease term
Operating leases		6.41 years
Finance leases		3.01 years

Weighted average discount rate
Operating leases		4.83		%
Finance leases		5.31		%

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⁽¹⁾ Finance lease ROU assets are shown net of accumulated depreciation of $3.3 million.

Supplemental cash flow information related to leases for the three and nine month periods ended December 31, 2019 is as follows (amounts in thousands):



	Three Months Ended December 31, 2019		Nine Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	2,620	$	8,152
Operating cash flows used for finance leases	29		102
Financing cash flows used for finance leases	407		1,153
	$	3,056	$	9,407

Lease liabilities arising from obtaining ROU assets
Operating leases	$	1,349	$	3,483
Finance leases	281		1,458
	$	1,630	$	4,941

Maturities of operating and finance lease liabilities as of December 31, 2019 were as follows (amounts in thousands):



Fiscal year ending March 31,	Operating Lease Liabilities			Finance Lease Liabilities
2020 (three months ending March 31, 2020)	$	2,369		$	356
2021	7,895			1,139
2022	4,795			720
2023	4,369			413
2024	3,764			118
Thereafter	11,832			101
Total undiscounted cash flows	$	35,024		$	2,847
Less imputed interest	(5,860		)	(136		)
Present value of lease liabilities	$	29,164		$	2,711

Leases