Leases

3 Months Ended

Jun. 30, 2020

The Company leases office space under non-cancelable operating leases, which expire from 2020 to 2031. 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):


	June 30, 2020
Assets
Lease right-of-use-assets	$	59,985
Liabilities
Lease liabilities	$	4,693
Lease liabilities, non-current	62,730
Total operating lease liabilities	$	67,423

As of June 30, 2020, the weighted average remaining lease term was 6.8 years and the weighted average discount rate was 6.9%.

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


	Three Months Ended June 30,
	2020		2019
Operating lease expense	$	3,388	$	3,996
Short-term lease expense	228		221
Variable lease expense	699		745

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


	Three Months Ended June 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities	$	4,484	$	2,893
Operating lease assets obtained in exchange for new lease liabilities (1)	4,411		1,429

(1) Includes the impact of new leases as well as remeasurements and modifications to existing leases.

As of June 30, 2020, remaining maturities of lease liabilities were as follows (in thousands):


Fiscal Years Ending March 31,	Operating Leases
2021 (remaining nine months)	5,857
2022	13,074
2023	13,409
2024	12,538
2025	10,951
2026	11,134
Thereafter	19,372
Total operating lease payments	$	86,335
Less imputed interest	(18,912)
Total operating lease liabilities	$	67,423

The table above excludes future payments of $3.6 million related to signed leases that have not yet commenced. These operating leases are expected to commence during 2020 with lease terms of 1.3 to 7.5 years.