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Leases | 12 Months Ended
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Mar. 31, 2024
Leases [Abstract] |
Leases | Note 18. Leases We have lease agreements with lease and non-lease components, which are not accounted for separately. Additionally, for certain leases, we apply a portfolio approach to account for the operating lease right-of-use ("ROU") assets and liabilities as the leases are similar in nature and have nearly identical contract provisions. These leases, which are comprised primarily of storage rental locations, can have lease terms generally between 2 and 20 years. Covenants include the Company’s responsibility for all maintenance and repairs during the term of the agreement. Our equipment sale/leaseback transactions do not qualify as a sale. Equipment leases prior to adoption of ASC 842 were recorded as capital leases and classified as finance lease ROU assets and liabilities upon adoption. New sale leaseback transactions that fail to qualify as a sale are accounted for as a financial liability. We use our incremental borrowing rate based on information available at commencement date, including the rate for a fully collateralized loan that can either be fully amortized or financed with a residual at the end of the lease term, for a borrower with similar credit quality in order to determine the present value of lease payments. Our lease terms are generally 7 years, may include options to extend or terminate the lease, which are included in the calculation of ROU assets when it is reasonably certain that we will exercise those options. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Please see Note 10, Notes, Loans and Finance Leases Payable, net, of the Notes to Consolidated Financial Statements for additional information. The following table shows the components of our ROU assets, net:
|  | As of March 31, 2024 |
|  | Finance |  |  |  | Operating |  |  |  | Total |
|  | (In thousands) |
Buildings and improvements | $ |  | — |  |  | $ |  | 79,317 |  |  | $ |  | 79,317 |
Furniture and equipment |  |  | 61 |  |  |  |  | — |  |  |  |  | 61 |
Rental trailers and other rental equipment |  |  | 114,607 |  |  |  |  | — |  |  |  |  | 114,607 |
Rental trucks |  |  | 607,521 |  |  |  |  | — |  |  |  |  | 607,521 |
Right-of-use assets, gross |  |  | 722,189 |  |  |  |  | 79,317 |  |  |  |  | 801,506 |
Less: Accumulated depreciation |  |  | (432,884 | ) |  |  |  | (25,605 | ) |  |  |  | (458,489 | )
Right-of-use assets, net | $ |  | 289,305 |  |  | $ |  | 53,712 |  |  | $ |  | 343,017 |
|  | As of March 31, 2023 |
|  | Finance |  |  | Operating |  |  | Total |
|  | (In thousands) |
Buildings and improvements | $ |  | — |  | $ |  | 128,221 |  | $ |  | 128,221 |
Furniture and equipment |  |  | 9,687 |  |  |  | — |  |  |  | 9,687 |
Rental trailers and other rental equipment |  |  | 152,294 |  |  |  | — |  |  |  | 152,294 |
Rental trucks |  |  | 949,838 |  |  |  | — |  |  |  | 949,838 |
Right-of-use assets, gross |  |  | 1,111,819 |  |  |  | 128,221 |  |  |  | 1,240,040 |
Less: Accumulated depreciation |  |  | (637,054 | ) |  |  | (69,304 | ) |  |  | (706,358 | )
Right-of-use assets, net | $ |  | 474,765 |  | $ |  | 58,917 |  | $ |  | 533,682 |
As of March 31, 2024 and 2023, we had finance lease liabilities for the ROU assets, net of $117.6 million and $223.2 million, respectively, included in notes, loans and finance leases payable, net.
|  | Financing leases |  |
|  | March 31, |  |
|  | 2024 |  |  |  | 2023 |  |
Weighted average remaining lease term (years) |  |  | 1 |  |  |  |  | 2 |  |
Weighted average discount rate |  |  | 4.1 |  | % |  |  | 3.8 |  | %
|  | Operating leases |  |
|  | March 31, |  |
|  | 2024 |  |  |  | 2023 |  |
Weighted average remaining lease term (years) |  |  | 21.9 |  |  |  |  | 19.2 |  |
Weighted average discount rate |  |  | 4.6 |  | % |  |  | 4.7 |  | %
For fiscal years 2024, 2023 and 2022, cash paid for leases included in our operating cash flow activities were $33.8 million, $32.1 million and $30.2 million, respectively, and our financing cash flow activities were $105.6 million, $124.2 million and $166.3 million, respectively. Non-cash activities of ROU assets in exchange for lease liabilities were $48.8 million, $9.5 million and $3.7 million for fiscal years 2024, 2023 and 2022, respectively. The components of lease costs, including leases of less than 12 months, were as follows:
|  | Twelve Months Ended March 31, |
|  | 2024 |  |  | 2023 |
|  | (In thousands) |
Operating lease costs | $ |  | 34,609 |  | $ |  | 32,878 |
Finance lease cost: |  |  |  |  |  |
Amortization of right-of-use assets | $ |  | 55,085 |  | $ |  | 81,006 |
Interest on lease liabilities |  |  | 6,990 |  |  |  | 11,199 |
Total finance lease cost | $ |  | 62,075 |  | $ |  | 92,205 |
The short-term lease costs for fiscal years 2024 and 2023 were not material. Maturities of lease liabilities were as follows:
|  | Finance leases |  |  | Operating leases |
Year ending March 31, |  | (In thousands) |
2025 | $ |  | 76,522 |  | $ |  | 12,904 |
2026 |  |  | 46,001 |  |  |  | 9,592 |
2027 |  |  | — |  |  |  | 7,500 |
2028 |  |  | — |  |  |  | 6,478 |
2029 |  |  | — |  |  |  | 4,933 |
Thereafter |  |  | — |  |  |  | 61,016 |
Total lease payments |  |  | 122,523 |  |  |  | 102,423 |
Less: imputed interest |  |  | (4,882 | ) |  |  | (47,391 | )
Present value of lease liabilities | $ |  | 117,641 |  | $ |  | 55,032 |

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