3. LEASES:
Right-of-use assets and lease liabilities balances consist of the following (dollars in thousands): | | | | | | | | | | | | | | |
| | | | |
| | March 31, 2026 | | March 31, 2025 |
| Right-of-use assets included in other assets, net | | $ | 16,159 | | | $ | 19,341 | |
| Short-term lease liabilities included in other accrued expenses | | $ | 9,667 | | | $ | 9,351 | |
| Long-term lease liabilities included in other liabilities | | $ | 19,898 | | | $ | 26,939 | |
| | | | |
| Supplemental balance sheet information: | | | | |
| Weighted average remaining lease term | | 3.5 years | | 4.5 years |
| Weighted average discount rate | | 5.5 | % | | 5.4 | % |
The Company leases its office facilities under non-cancellable operating leases that expire at various dates through fiscal 2031. Certain leases contain provisions for property-related costs that are variable in nature for which the Company is responsible, including common area maintenance and other property operating services. These costs are calculated based on a variety of factors including property values, tax and utility rates, property service fees, and other factors.
The components of lease cost, net for the twelve months ended March 31, 2026 and 2025, respectively, were as follows (dollars in thousands):
| | | | | | | | | | | | | | |
| | For the twelve months ended March 31, |
| | 2026 | | 2025 |
| Operating lease costs | | $ | 7,534 | | | $ | 7,797 | |
| Operating sublease income | | 2,035 | | | 1,251 | |
| Total leases costs, net | | $ | 5,499 | | | $ | 6,546 | |
The following table presents future minimum payments under all operating leases and subleases (including operating leases with a duration of one year or less and excluding ASC 840 leases related to restructuring plans) as of March 31, 2026 (dollars in thousands):
| | | | | | | | | | | | | | | | | | | | |
| Fiscal year: | | Operating lease payments | | Payments expected under noncancellable subleases | | Net operating lease payments |
| 2027 | | $ | 9,901 | | | $ | (2,303) | | | 7,598 | |
| 2028 | | 9,457 | | | (2,366) | | | 7,091 | |
| 2029 | | 9,036 | | | (2,290) | | | 6,746 | |
| 2030 | | 2,591 | | | (189) | | | 2,402 | |
| 2031 | | 1,708 | | | — | | | 1,708 | |
| Thereafter | | — | | | — | | | — | |
| Total undiscounted lease payments | | 32,693 | | | (7,148) | | | 25,545 | |
| Less: Interest and short-term leases | | 3,128 | | | (765) | | | 2,363 | |
| Total discounted operating lease liabilities | | $ | 29,565 | | | $ | (6,383) | | | $ | 23,182 | |
There are no future minimum payments as of March 31, 2026 related to ASC 840 lease liabilities under restructuring plans as a result of the Company's exit from certain leased office facilities (see Note 4).
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.