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.


		As of March 31, 2025
		Finance				Operating				Total
		(In thousands)

Buildings and improvements	$		—		$		71,330		$		71,330
Furniture and equipment			61				—				61
Rental trailers and other rental equipment			58,071				—				58,071
Rental trucks			309,475				—				309,475
Right-of-use assets, gross			367,607				71,330				438,937
Less: Accumulated depreciation			(228,909	)			(25,305	)			(254,214	)
Right-of-use assets, net	$		138,698		$		46,025		$		184,723


		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, 2025 and 2024, we had finance lease liabilities for the ROU assets, net of $44.3 million and $117.6 million, respectively, included in notes, loans and finance leases payable, net.


	Financing leases
	March 31,
	2025			2024
Weighted average remaining lease term (years)		0.6			1
Weighted average discount rate		4.4	%		4.1	%


	Operating leases
	March 31,
	2025			2024
Weighted average remaining lease term (years)		24.1			21.9
Weighted average discount rate		4.6	%		4.6	%

For fiscal years 2025, 2024 and 2023, cash paid for leases included in our operating cash flow activities were $20.8 million, $33.8 million and $32.1 million, respectively, and our financing cash flow activities were $73.3 million, $105.6 million and $124.2 million, respectively. Non-cash activities of ROU assets in exchange for lease liabilities were $3.2 million, $48.8 million and $9.5 million for fiscal years 2025, 2024 and 2023, respectively.

The components of lease costs, including leases of less than 12 months, were as follows:


		Twelve Months Ended March 31,
		2025			2024
		(In thousands)

Operating lease costs	$		22,907	$		34,609

Finance lease cost:
Amortization of right-of-use assets	$		29,014	$		55,085
Interest on lease liabilities			3,666			6,990
Total finance lease cost	$		32,680	$		62,075


		Finance leases				Operating leases
Year ending March 31,		(In thousands)

2026	$		45,531		$		10,586
2027			—				8,171
2028			—				6,805
2029			—				5,220
2030			—				3,949
Thereafter			—				57,276
Total lease payments			45,531				92,007
Less: imputed interest			(1,193	)			(45,034	)
Present value of lease liabilities	$		44,338		$		46,973