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Leases | 3 Months Ended
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Jun. 30, 2024
Leases [Abstract] |
Leases | Note 8 — Leases The Company determines if an arrangement is or contains a lease at contract inception. The Company's current lease agreements have remaining lease terms of between 1 and 7 years. The Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. The lease liability is initially measured at the present value of the unpaid lease payments as of the lease commencement date. Key estimates and judgments include how the Company determines (1) the discount rate it uses to discount the unpaid lease payments to present value, (2) the lease term, and (3) lease payments. Accounting Standard Codification ("ASC") 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, the Company cannot determine the interest rate implicit in the lease because it does not have access to the lessor's estimated residual value or the amount of the lessor's deferred initial direct costs. Therefore, the Company generally uses its incremental borrowing rate as the discount rate for the lease. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because the Company does not generally borrow on a collateralized basis, it uses quoted interest rates obtained from financial institutions as an input to derive an appropriate incremental borrowing rate, adjusted for the amount of the lease payments, the lease term, and the effect on that rate of designating specific collateral with a value equal to the unpaid lease payments for that lease. The Company’s lease agreements may include options to extend the lease following the initial term. At the time of adopting ASC 842, the Company determined that it was reasonably certain it would exercise the option to renew; accordingly, these options were considered in determining the initial lease term. The Company elected the practical expedient of hindsight in determining the option to renew. The Company has since reassessed the assumption of the renewal term and determined that due to the COVID-19 pandemic, the Company is now expecting more of its workforce to be working from home permanently. Therefore, expecting a reduction in overall square footage of office space needs, the Company no longer believes it is reasonably certain it will exercise most of its options to renew, and therefore, has removed the renewal term of several lease obligations. The subsequent re-measurement reduced the right-of-use asset and related lease liability on the consolidated balance sheet, but had an immaterial impact on the income statement. For lease agreements entered into or reassessed after the adoption of ASC 842, the Company has elected the practical expedient to account for the lease and non-lease components as a single lease component. Therefore, for those leases, the lease payments used to measure the lease liability include all of the fixed consideration in the contract. Variable lease payments associated with the Company’s leases are recognized upon occurrence of the event, activity, or circumstance in the lease agreement on which those payments are assessed. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The components of lease expense are as follows:
|  | Three Months Ended |  |  | Three Months Ended |
|  | June 30, 2024 |  |  | June 30, 2023 |
Operating lease expense |  | $ | 2,237,000 |  |  | $ | 2,763,000 |
Finance lease expense |  |  | 21,000 |  |  |  | 22,000 |
Short-term lease expense |  |  | 96,000 |  |  |  | 7,000 |
Variable lease expense |  |  | 136,000 |  |  |  | 269,000 |
Total lease expenses |  | $ | 2,490,000 |  |  | $ | 3,061,000 |
The following table presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets related to its operating leases:
|  | June 30, 2024 |  |  | March 31, 2024 |
Right-of-use asset, net |  | $ | 23,241,000 |  |  | $ | 24,058,000 |
Short-term lease liability |  | $ | 8,734,000 |  |  | $ | 8,864,000 |
Long-term lease liability |  |  | 21,714,000 |  |  |  | 22,533,000 |
Total lease liabilities |  | $ | 30,448,000 |  |  | $ | 31,397,000 |
Weighted average remaining operating lease term |  | 4.07 years |  |  | 4.11 years |
Weighted average remaining finance lease term |  | 1 year |  |  | 1.25 years |
Weighted average discount rate |  |  | 3.9 | % |  |  | 3.7 | %
Supplemental cash flow information related to operating leases for the three months ended June 30, 2024 and 2023 was as follows:
|  | Three Months Ended |  |  | Three Months Ended |
|  | June 30, 2024 |  |  | June 30, 2023 |
Cash paid for amounts included in the measurement of operating lease liabilities |  | $ | 2,369,000 |  |  | $ | 2,758,000 |
Operating lease liabilities arising from obtaining ROU assets |  | $ | 50,207,000 |  |  | $ | 53,496,000 |
Finance lease liabilities arising from obtaining ROU assets |  | $ | 358,000 |  |  | $ | 358,000 |
Additions/(reductions) to ROU assets resulting from additions/(reductions) to operating lease liabilities |  | $ | 550,000 |  |  | $ | (324,000 | )
As of June 30, 2024, maturities of operating lease liabilities for each of the next five years and thereafter are as follows:
2025 |  | $ | 7,377,000 |
2026 |  |  | 8,097,000 |
2027 |  |  | 6,446,000 |
2028 |  |  | 5,524,000 |
2029 |  |  | 3,405,000 |
Thereafter |  |  | 2,407,000 |
Total lease payments |  |  | 33,256,000 |
Less interest |  |  | (2,808,000 | )
Total lease liabilities |  | $ | 30,448,000 |
As of June 30, 2024, the Company has approximately $6.9 million of additional operating lease commitments that have not yet commenced. These additional leases commence in the future and have lease terms between 4 years and 7 years.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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