LEASES
Our lease arrangements are primarily for (1) corporate, administrative, and development studio offices and (2) data centers and server equipment. Our existing leases have remaining lease terms ranging from one to twelve years. In certain instances, such leases include one or more options to renew, with renewal terms that generally extend the lease term by one to five years for each option. The exercise of lease renewal options is generally at our sole discretion. Additionally, the majority of our leases are classified as operating leases.
Information related to our operating leases are as follows:
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| | Fiscal Year Ended March 31, |
| | 2026 | | 2025 | | 2024 |
| Lease costs | | | | | | |
| Operating lease costs | | $ | 78.0 | | | $ | 84.9 | | | $ | 80.5 | |
| Short-term lease costs | | 1.6 | | | 3.8 | | | 4.9 | |
There were no impairment charges during fiscal year ended March 31, 2026 related to our ROU assets. During the fiscal year ended March 31, 2025, we recognized $3.9 of impairment charges for office closures related to the 2024 Plan. There were no impairment charges during the fiscal year ended March 31, 2024 related to our ROU assets.
| | | | | | | | | | | | | | | | | | | | |
| | Fiscal Year Ended March 31, |
| | 2026 | | 2025 | | 2024 |
| Supplemental operating cash flow information | | | | | | |
| Cash paid for amounts included in the measurement of lease liabilities | | $ | 82.4 | | | $ | 87.1 | | | $ | 73.9 | |
| ROU assets obtained in exchange for lease obligations | | 58.9 | | | 80.4 | | | 89.5 | |
| | | | | | | | | | | | | | | | | | | | |
| | Fiscal Year Ended March 31, |
| | 2026 | | 2025 | | 2024 |
| Weighted average information | | | | | | |
| Remaining lease term | | 7.14 years | | 7.91 years | | 8.40 years |
| Discount rate | | 4.74 | % | | 4.75 | % | | 4.56 | % |
Future undiscounted lease payments for our operating lease liabilities, and a reconciliation of these payments to our operating lease liabilities at March 31, 2026, are as follows:
| | | | | | | | |
| Fiscal Year Ending March 31, | | |
| 2027 | | $ | 92.9 | |
| 2028 | | 86.0 | |
| 2029 | | 84.0 | |
| 2030 | | 74.6 | |
| 2031 | | 64.4 | |
| Thereafter | | 146.6 | |
| Total future lease payments | | $ | 548.5 | |
| Less imputed interest | | (108.2) | |
| Total lease liabilities | | $ | 440.3 | |
As of March 31, 2026, we have entered into a facility lease that has not yet commenced with future lease payments of approximately $2.4. This lease is expected to commence within the next twelve months and will have lease term of 5 years.
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.