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LEASES

6 Months Ended

Sep. 30, 2020

Operating 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.

The following table provides balance sheet information related to leases as of September 30, 2020 (in thousands):


	September 30, 2020		March 31, 2020
Assets
Operating lease, right-of-use assets	$	72,841	$	78,963

Liabilities
Operating lease liabilities, current	$	9,498	$	5,875
Operating lease liabilities, non-current	87,462		92,452
Total operating lease liabilities	$	96,960	$	98,327

The components of lease expense were as follows (in thousands):


	Three Months Ended September 30,				Six Months Ended September 30,
	2020		2019		2020		2019
Operating lease expense	$	3,833	$	4,156	$	7,583	$	6,241
Variable lease expense	$	857	$	229	$	1,639	$	438

Short-term lease expense was immaterial for the three and six months ended September 30, 2020 and 2019.

Operating cash outflow from operating lease was $4.2 million and $4.5 million, respectively, for the six months ended September 30, 2020 and 2019.

The following table presents supplemental information for the six months ended September 30, 2020 (in thousands, except for weighted average):


Weighted average remaining lease term						8.6 years
Weighted average discount rate						4.0%

The following table presents maturity of lease liabilities under the Company's non-cancellable operating leases as of September 30, 2020 (in thousands):


Remainder of 2021	$	5,631
2022	16,193
2023	15,007
2024	11,766
2025	11,429
Thereafter	58,122
Total lease payments	$	118,148
Less: imputed interest	(19,542)
Less: lease incentives receivable	(1,646)
Present value of lease liabilities	$	96,960

Lease Assignment

In the fourth quarter of fiscal 2018, the Company entered into a 132-month lease agreement (the "Agreement") with CAP Phase I, a Delaware limited liability company (the "Landlord"), to rent approximately 162,000 square feet of office space in a new building in San Jose, California. The lease term began on January 1, 2019. On April 30, 2019, due to the Company's rapid growth and greater than anticipated future space needs, the Company entered into an assignment and assumption (the "Assignment") of the Agreement with the Landlord, and Roku Inc., a Delaware corporation ("Roku"), whereby the Company assigned to Roku the Agreement. Pursuant to the Assignment, 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. The Company also expects to receive the reimbursement of base rent and direct expenses from Roku by the end of the Company’s fiscal year ending March 31, 2022 in accordance with the Assignment. The obligations related to the Agreement are not included in the right-of-use asset or lease liabilities as of September 30, 2020. The remaining obligations related to the Assignment of $4.8 million and the termination fee of $0.8 million are recorded in other accrued liabilities and other liabilities, non-current, respectively, in the Company's condensed consolidated balance sheet. The expected receivable of $6.9 million is recorded in other current assets in the Company's condensed consolidated balance sheet.