XML 29 R18.htm IDEA: XBRL DOCUMENT
v3.25.1

Leases | 12 Months Ended
--- | ---
Mar. 31, 2025
Leases [Abstract] |
Leases | Note 9 – Leases The Company determines if an arrangement contains a lease at contract inception. The Company’s current lease agreements have remaining lease terms between 1 and 8 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 aftermath of the COVID-19 pandemic, the Company expects 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 from 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 expenses are as follows:
|  | March 31, 2025 |  |  | March 31, 2024 |  |  | March 31, 2023 |
Operating lease expense |  | $ | 9,070,000 |  |  | $ | 9,989,000 |  |  | $ | 12,259,000 |
Finance lease expense |  |  | 80,000 |  |  |  | 86,000 |  |  |  | 92,000 |
Short-term lease expense |  |  | 114,000 |  |  |  | 114,000 |  |  |  | 16,000 |
Variable lease expense |  |  | 665,000 |  |  |  | 559,000 |  |  |  | 555,000 |
Total lease expenses |  | $ | 9,929,000 |  |  | $ | 10,748,000 |  |  | $ | 12,922,000 |
The following table presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets related to its operating leases at March 31, 2025 and March 31, 2024:
|  | March 31, 2025 |  |  | March 31, 2024 |
Right-of-use asset, net |  | $ | 20,825,000 |  |  | $ | 24,058,000 |
Short-term lease liability |  | $ | 8,126,000 |  |  | $ | 8,864,000 |
Long-term lease liability |  |  | 19,953,000 |  |  |  | 22,533,000 |
Total lease liabilities |  | $ | 28,079,000 |  |  | $ | 31,397,000 |
Weighted average remaining lease term |  | 4.01 years |  |  | 4.11 years |
Weighted average finance lease term |  | 0.25 year |  |  | 1.25 years |
Weighted average discount rate |  |  | 4.5 | % |  |  | 3.7 | %
Supplemental cash flow information related to operating leases for fiscal years ended March 31, 2025 and 2024 were as follows:
|  | March 31, 2025 |  |  | March 31, 2024 |
Cash paid for amounts included in the measurement of operating lease liabilities |  | $ | 9,151,000 |  |  | $ | 8,692,000 |
Operating lease liabilities arising from obtaining ROU assets |  | $ | 46,954,000 |  |  | $ | 53,617,000 |
Finance lease liabilities arising from obtaining ROU assets |  | $ | 358,000 |  |  | $ | 358,000 |
Additions to ROU assets resulting from additions to operating lease liabilities |  | $ | 4,555,000 |  |  | $ | 6,247,000 |
As of March 31, 2025, maturities of operating and financing lease liabilities for each of the next five years and thereafter are as follows:
2026 |  | $ | 9,161,000 |
2027 |  |  | 7,368,000 |
2028 |  |  | 6,451,000 |
2029 |  |  | 4,208,000 |
2030 |  |  | 2,275,000 |
Thereafter |  |  | 1,475,000 |
Total lease payments |  |  | 30,938,000 |
Less interest |  |  | (2,859,000 | )
Total lease liabilities |  | $ | 28,079,000 |
As of March 31, 2025, the Company has approximately $1.1 million of additional operating lease commitments that have not yet commenced. This lease commences in May 2025 and has lease terms of 5 years.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration