| Leases |
The Company’s lease portfolio includes leased offices, dedicated lab facility and storage space, and dedicated data center facility space, with remaining contractual periods from 2.4 years to 10.3 years. For purposes of calculating lease liabilities, lease terms may include options to extend the lease when it is reasonably certain that the Company will exercise those options. In January 2021, the Company entered into an operating lease amendment to extend the lease term of the South San Francisco, CA lab facility, which resulted in $12.1 million of non-cancellable future minimum lease payments and a revised lease term through January 2025. For the Company’s headquarters’ facility in Sunnyvale, CA, there is an option to extend the lease for a period of 7 years. The Company is not reasonably certain that it will exercise this option and therefore it is not included for in its rights of use assets and lease liabilities as of March 31, 2021. The components of lease cost for operating leases for the fiscal years ended March 31, 2021, 2020 and 2019 was as follows: | | | | | | | | | | | | | | | | Year Ended March 31, | | | | | 2021 | | | 2020 | | | 2019 | | | | | (in thousands) | | | | | | Operating lease cost, net 1 | | $ | 13,614 | | | $ | 10,999 | | | $ | 10,484 | | | | | 5,809 | | | | 4,705 | | | | 2,506 | | | | | | | | | | | | | | | | | $ | 19,423 | | | $ | 15,704 | | | $ | 12,990 | | | | | | | | | | | | | | |
| 1) | For the year ended March 31, 2020, included in operating lease cost is a $4.9 million reduction to lease cost related to a lease termination. |
Variable lease cost includes property tax, insurance, common area maintenance, and utilities. The following is supplemental balance sheet information as of March 31, 2021 and 2020: | | | | | | | | | | | | March 31,
2021 | | | March 31,
2020 | | | | | (in thousands) | | | | | | | | | | | | | | | | | | | | | | | Operating lease right-of-use assets | | $ | 63,122 | | | $ | 60,608 | | | | | | | | | | | | | | | | | | | | Operating lease liabilities | | | 6,140 | | | | 7,613 | | Operating lease liabilities, noncurrent | | | 87,582 | | | | 82,709 | | | | | | | | | | | Total operating lease liabilities 1 | | $ | 93,722 | | | $ | 90,322 | | | | | | | | | | |
| 1) | The termination of the operating lease for the Company’s former headquarters facility located in Mountain View, CA occurred during the year ended March 31, 2020. |
Weighted average remaining lease term and discount rate for the Company’s operating leases was as follows: | | | | | | | | | | | | | | | | Year Ended March 31, | | | | | 2021 | | | 2020 | | | 2019 | | Weighted-average remaining lease term (in years) | | | 9.2 | | | | 10.5 | | | | 10.2 | | Weighted-average discount rate | | | 7 | % | | | 8 | % | | | 7 | % |
Supplemental cash flow information related to operating leases for the fiscal years ended March 31, 2021, 2020 and 2019 was as follows: | | | | | | | | | | | | | | | | Year Ended March 31, | | | | | 2021 | | | 2020 | | | 2019 | | | | | (in thousands) | | | | | Cash paid for amounts included in the measurement of operating lease liabilities: | | | | | | | | | Operating cash flows used in operating leases | | $ | (14,067 | ) | | $ | (12,520 | ) | | $ | (8,547 | ) | Landlord contributions included in the measurement of operating lease ROU assets: | | | | | | | | | | | | | Operating cash flows provided by operating leases | | $ | 3,733 | | | $ | 9,940 | | | $ | — | | Supplemental disclosure of non-cash operating lease activities: | | | | | | | | | | | | | Operating lease ROU assets obtained in exchange for new operating lease liabilities | | $ | 12,803 | | | $ | 4,769 | | | $ | 82,348 | |
As of March 31, 2021, the future minimum lease payments included in the measurement of the Company’s operating lease liabilities are as follows: | | | | | | | | March 31,
2021 | | | | | (in thousands) | | | | | | | | | | | $ | 12,567 | | | | | 15,091 | | | | | 15,106 | | | | | 14,350 | | | | | 10,996 | | | | | 64,421 | | | | | | | Total future operating lease payments | | | 132,531 | | | | | 38,809 | | | | | | | Total operating lease liabilities | | $ | 93,722 | | | | | | |
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