LEASES

12 Months Ended

Mar. 31, 2020

(F) Leases

We lease certain real estate, buildings, and equipment, including rail cars. Certain of these leases contain escalations of rent over the term of the lease, as well as options for us to extend the term of the lease at the end of the original term. These extensions range from periods of one year to twenty years. Our lease agreements do not contain material residual value guarantees or material restrictive covenants. In calculating the present value of future minimum lease payments, we use the rate implicit in the lease if it can be determined. Otherwise, we use our incremental borrowing rate in effect at the commencement of the lease to determine the present value of the future minimum lease payments. Additionally, we lease certain equipment under short-term leases with initial terms of less than twelve months. These short-term equipment leases are not recorded on the balance sheet.

Lease expense for our operating and short-term leases is as follows:

	For the Year Ended March 31, 2020
	(dollars in thousands)
Operating Lease Cost	$	13,315
Short-term Lease Cost		1,470
Total Lease Cost	$	14,785

The Right-of-Use Assets and Lease Liabilities are reflected on our Balance Sheet as follows:

	For the Year Ended March 31, 2020
	(dollars in thousands)
Operating Leases:
Operating Lease Right-of-Use Assets	$	30,530

Current Operating Lease Liabilities	$	10,207
Noncurrent Operating Lease Liabilities		49,809
Total Operating Lease Liabilities	$	60,016

During the quarter ended December 31, 2019, we recognized a $29.1 million impairment related to Right-of-Use assets used by our Oil and Gas Proppants business. See Footnote (A) for additional information about the impairment loss.

Future payments for operating leases are as follows:

	Amount
Fiscal Year	(dollars in thousands)
2021	$	12,036
2022		10,781
2023		10,067
2024		8,222
2025		6,884
Thereafter		24,624
Total Lease Payments	$	72,614
Less: Imputed Interest		(12,598	)
Present Value of Lease Liabilities	$	60,016

Weighted Average Remaining Lease Term (in years)		9.2
Weighted Average Discount Rate		3.78	%