Leases

12 Months Ended

Mar. 31, 2023

The Company is a lessee in various noncancellable operating leases, primarily real estate facilities for office space. As of March 31, 2023, the Company's lease arrangements are comprised of operating leases with various expiration dates through November 30, 2033. The lease term for all of the Company’s leases includes the noncancellable period of the lease. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into the Company's determination of the duration of the lease arrangement. The Company's leases do not contain any material residual value guarantees.

The total operating lease costs including short-term lease costs were $21.2 million, $17.3 million and $15.0 million as of March 31, 2023, 2022, and 2021, respectively. Total variable lease costs were not material during the year ended March 31, 2023, 2022 and 2021. The total operating and variable lease costs were included in cost of goods sold, marketing and selling, research and development, and general and administrative in the Company's consolidated statements of operations.

Supplemental cash flow information related to operating leases (in thousands):


	Years Ended March 31,
	2023		2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	16,565	$	15,400	$	13,865
ROU assets obtained in the exchange for operating lease liabilities	$	43,093	$	22,174	$	15,659

Future lease payments included in the measurement of operating lease liabilities as of March 31, 2023 for the following five fiscal years and thereafter are as follows (in thousands):


Years Ending March 31,
2024	$	13,409
2025	13,657
2026	10,769
2027	10,155
2028	9,107
Thereafter	40,889
Total lease payments	$	97,986
Less: imputed interest	(15,416)
Less: tenant improvement allowance (1)	(11,554)
Present value of lease liabilities	$	71,016

(1) The operating leases for two real estate facilities in the Americas region provide for tenant improvement allowances, for which the lessors reimburse the Company for the costs of constructing leasehold improvements up to $11.6 million.

Weighted-average lease terms and discount rates were as follows:


	Years Ended March 31,
	2023		2022
Weighted-average remaining lease terms (in years)	8.1		4.6
Weighted-average discount rate	3.7	%	2.8	%