Commitments and Contingencies

9 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Litigation

In the ordinary course of business, the Company may be subject to various legal, regulatory, and/or administrative proceedings from time to time. Although there can be no assurance of the outcome of such proceedings, in the opinion of management, the Company does not believe it is probable that any pending or, to its knowledge, threatened legal proceeding or claim would individually or in the aggregate materially affect its condensed consolidated financial statements.

Incentive Fees

The Partnerships have allocated carried interest still subject to contingencies and that did not meet the Company’s criteria for recognition in the amounts of $408,928 and $326,466, net of amounts attributable to non-controlling interests, at December 31, 2019 and March 31, 2019, respectively, and $3,704 at both December 31, 2019 and March 31, 2019 that has been received and deferred by the Company.

If the Company ultimately receives the unrecognized carried interest, a total of $102,232 and $81,616 as of December 31, 2019 and March 31, 2019, respectively, would potentially be payable to certain employees and third parties pursuant to compensation arrangements related to carried interest profit-sharing plans. Such amounts have not been recorded in the Condensed Consolidated Balance Sheets or Condensed Consolidated Statements of Income as the payment is not yet probable.

Commitments

The Company serves as the investment manager of the Partnerships. The general partner or managing member of each Partnership is generally a separate subsidiary of the Company and has agreed to invest funds on the same basis as the limited partners in most instances. The Company’s aggregate unfunded commitment to the Partnerships was $132,899 and $123,637 as of December 31, 2019 and March 31, 2019, respectively.

Leases

The Company’s leases consist primarily of operating leases for office space and office equipment in various locations around the world. These leases have remaining lease terms of one year to six years, some of which have the option to extend for an additional five years or have the option to terminate within one year. In October 2019, the Company executed an agreement to lease office space for its new headquarters in suburban Philadelphia. The lessor is currently building the office space. The Company expects to gain access to the space to build various leasehold improvements in late fiscal 2021. At that time, the Company will then establish an ROU asset and a lease liability for the new lease.

Total operating lease costs were $1,239 and $3,649 for the three and nine months ended December 31, 2019, respectively. Total variable lease costs were $134 and $395 for the three and nine months ended December 31, 2019, respectively. Short-term lease costs were not material for the three and nine months ended December 31, 2019.

The following table shows other supplemental information related to the Company’s operating leases:


	Three Months Ended December 31, 2019		Nine Months Ended December 31, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,323	$	3,898

Weighted average remaining lease term (in years)			2.5
Weighted average discount rate			5.5		%

As of December 31, 2019, the maturities of operating lease liabilities were as follows:


Remainder of FY2020	$	1,290
FY2021	4,531
FY2022	2,868
FY2023	752
FY2024	389
Thereafter	244
Total lease payments	10,074
Less: imputed interest	(677)
Total operating lease liabilities	$	9,397