Leases

9 Months Ended

Dec. 31, 2021

The Company leases office space under non-cancelable operating leases, which expire from 2022 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):


	December 31, 2021		March 31, 2021
Assets
Lease right-of-use-assets	$	51,718	$	57,425
Liabilities
Lease liabilities	$	9,594	$	7,886
Lease liabilities, non-current	52,328		59,924
Total operating lease liabilities	$	61,922	$	67,810

As of December 31, 2021, the weighted average remaining lease term was 5.5 years and the weighted average discount rate was 6.8%.

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


	Three Months Ended December 31,				Nine Months Ended December 31,
	2021		2020		2021		2020
Operating lease expense	$	3,418	$	3,467	$	10,372	$	10,382
Short-term lease expense	164		230		467		654
Variable lease expense	736		607		2,099		1,931

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


	Nine Months Ended December 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities	$	11,120	$	11,632
Operating lease assets obtained in exchange for new lease liabilities (1)	1,414		8,536

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

As of December 31, 2021, remaining maturities of lease liabilities were as follows (in thousands):


Fiscal Years Ending March 31,	Operating Leases
2022 (remaining three months)	$	2,285
2023	14,838
2024	13,624
2025	11,639
2026	11,841
2027	12,430
Thereafter	8,359
Total operating lease payments	$	75,016
Less imputed interest	(13,094)
Total operating lease liabilities	$	61,922