Leases

6 Months Ended

Sep. 30, 2019

The Company leases office space under non-cancelable operating leases, which expire from 2020 to 2028. All of its office leases are classified as operating leases with lease expense recognized on a straight-line basis over the lease term.

Lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As these leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company considers information including, but not limited to, the lease term, the Company's credit rating and interest rates of similar debt instruments with comparable credit ratings. The lease right-of-use assets are also increased by any lease prepayments made and reduced by any lease incentives such as tenant improvement allowances. Options to extend the lease term are included in the lease term when it is reasonably certain that the Company will exercise the extension option.

The Company’s operating leases typically include nonlease components such as common-area maintenance costs. The Company has elected to include nonlease components with lease payments for the purpose of calculating lease right-of-use

assets and liabilities, to the extent that they are fixed. Nonlease components that are not fixed are expensed as incurred as variable lease payments.

Leases with a term of one year or less are not recognized on the Company’s condensed consolidated balance sheet.

The following table presents information about leases on the condensed consolidated balance sheet (in thousands):


	September 30, 2019
Assets
Lease right-of-use-assets	$	61,766
Liabilities
Lease liabilities	$	7,780
Lease liabilities, non-current	61,513
Total operating lease liabilities	$	69,293

As of September 30, 2019, the weighted average remaining lease term was 7.2 years and the weighted average discount rate was 6.7%.

The following table presents information about leases on its condensed consolidated statement of operations (in thousands):


	Three Months Ended September 30, 2019		Six Months Ended September 30, 2019
Operating lease expense	$	3,674	$	7,670
Short-term lease expense	311		532
Variable lease expense	645		1,390

Rent expense for operating leases was $3.8 million and $7.6 million for the three and six months ended September 30, 2018, respectively.

The following table presents supplemental cash flow information about the Company’s leases (in thousands):


	Six Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities	$	6,212
Operating lease assets obtained in exchange for new lease liabilities	1,586

As of September 30, 2019, remaining maturities of lease liabilities were as follows (in thousands):


Fiscal Years Ending March 31,	Operating Leases
2020 (remaining six months)	$	5,453
2021	12,701
2022	11,846
2023	12,207
2024	11,300
2025	9,710
Thereafter	24,562
Total operating lease payments	$	87,779
Less imputed interest	(18,486)
Total operating lease liabilities	$	69,293

The table above excludes future payments of $6.5 million related to signed leases that have not yet commenced. These operating leases are expected to commence during 2020 with lease terms of 7.5 to 8.0 years.

As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended March 31, 2019, and under previous lease accounting standard ASC 840, the aggregate future non-cancelable minimum rental payments on its operating leases, as of March 31, 2019, were as follows (in thousands):


Fiscal Years Ending March 31,	Operating Leases
2020	$	16,374
2021	16,155
2022	15,620
2023	16,105
2024	13,484
Thereafter	32,849
Total minimum future lease payments	$	110,587