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RIGHT-OF-USE ASSETS AND LEASES | 9 Months Ended
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Dec. 31, 2019
Leases [Abstract] |
RIGHT-OF-USE ASSETS AND LEASES | RIGHT-OF-USE ASSETS AND LEASES The Company primarily leases facilities for office and data center space under non-cancellable operating leases for its U.S. and international locations that expire at various dates through 2030. For leases with a term greater than 12 months, the Company recognizes a right-of-use asset and a lease liability based on the present value of lease payments over the lease term. Variable lease payments are not included in the lease payments to measure the lease liability and are expensed as incurred. The Company’s leases have remaining terms of one to eleven years and some of the leases include a Company option to extend the lease term for less than twelve months to five years, or more, which if reasonably certain to exercise, the Company includes in the determination of lease payments. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. As most of the Company's leases do not provide a readily determinable implicit rate, the Company uses the incremental borrowing rate at lease commencement, which was determined using a portfolio approach, based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The Company uses the implicit rate when a rate is readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet and the expense for these short-term leases is recognized on a straight-line basis over the lease term. Common area maintenance fees (or CAMs) and other charges related to these leases continue to be expensed as incurred. The following table provides balance sheet information related to leases as of December 31, 2019 (in thousands):
|  | December 31, 2019
Assets |  |
Operating lease, right-of-use assets |  | $ | 77,062 |
Liabilities |  |
Operating lease liabilities, current |  | $ | 4,320 |
Operating lease liabilities, non-current |  | 86,187 |
Total operating lease liabilities |  | $ | 90,507 |
During the three and nine months ended December 31, 2019, operating lease expense was approximately $4.4 million and $10.7 million, respectively. Variable lease cost and short-term lease cost were immaterial during the three and nine months ended December 31, 2019. The following table presents supplemental information for the nine months ended December 31, 2019 (in thousands, except for weighted average):
Weighted average remaining lease term |  | 9.2 years |
Weighted average discount rate |  | 4.0 | %
Cash paid for amounts included in the measurement of lease liabilities |  | $ | 7,207 |
Operating cash flow from operating leases |  | $ | 7,207 |
The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of December 31, 2019 (in thousands):
Remaining 2020 |  | $ | 2,674 |
2021 |  | 8,609 |
2022 |  | 14,324 |
2023 |  | 11,724 |
2024 |  | 11,765 |
Thereafter |  | 69,554 |
Total lease payments |  | $ | 118,650 |
Less: imputed interest |  | (22,003 | )
Less: lease incentives receivable |  | (6,140 | )
Present value of lease liabilities |  | $ | 90,507 |
The Company entered into an operating lease for an office space that has not yet commenced and as such, have not yet been recognized on the Company's condensed consolidated balance sheet as of December 31, 2019. The contractual obligation for this lease is $2.9 million. The Company's lease agreement (the "Agreement") with CAP Phase I, a Delaware limited liability company (the "Landlord") for the Coleman property is not included in the right-of-use assets and operating lease liabilities as of December 31, 2019. On April 30, 2019, the Company entered into an assignment and assumption of the Company's previously executed lease agreement with the Landlord, and Roku Inc., a Delaware corporation ("Roku"), whereby the Company assigned to Roku this lease that had been executed between the Company and the Landlord on January 23, 2018. Pursuant to the Agreement, the Company expects to be released from all of its obligations under the lease and related standby letter of credit by the end of the Company’s fiscal year ending March 31, 2022, or shortly thereafter. On July 3, 2019, the Company entered into a lease for a new company headquarters to rent 177,815 square feet of office space as the sole tenant in a new five-story office building located in Campbell, California. The lease is for a 132-month term that started on January 1, 2020. The Company has the option to extend the lease for two additional five-year terms, on substantially the same terms and conditions as the prior term, with the base rent rate adjusted to fair market value at that time. Base rent is approximately $0.7 million per month for the first 12 months of the lease, with the rate increasing by approximately 3% on each anniversary of the lease. The Company is responsible for paying its share of building and common area expenses. The Company is entitled to full rent abatement during the first 12 months of the lease term. The Company is also entitled to a tenant improvement allowance of approximately $15.4 million. The Company paid to the landlord a security deposit in the amount of $2.0 million, which may be drawn down in the event the Company defaults under the lease. The Company recognized an operating lease right-of-use asset and operating lease liability during second quarter of fiscal 2020, when the Company was given full access to the leased property. This new lease increased our operating lease right-of-use assets by $56.8 million and our operating lease liabilities by $56.1 million.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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