Leases

3 Months Ended

Jun. 30, 2024

Note 16: Leases

Lease assets and liabilities

The following table provides a summary of leases recorded on the consolidated balance sheets.

	Balance Sheet Location	June 30, 2024		March 31, 2024
Lease Assets
Operating lease ROU assets	Other noncurrent assets	$	91.4	$	76.0
Finance lease ROU assets (a)	Property, plant and equipment – net		6.4		6.5

Lease Liabilities
Operating lease liabilities	Other current liabilities	$	17.7	$	15.3
Operating lease liabilities	Other noncurrent liabilities		75.2		62.1
Finance lease liabilities	Long-term debt – current portion		0.4		0.4
Finance lease liabilities	Long-term debt		1.7		1.9

(a)	Finance right of use (“ROU”) assets were recorded net of accumulated amortization of $3.8 million and $3.7 million as of June 30, 2024 and March 31, 2024, respectively.

The increases in operating lease ROU assets and liabilities from March 31, 2024 to June 30, 2024 primarily resulted from the commencement of a 10-year manufacturing facility lease within the Climate Solutions segment. The Company entered into this new lease to increase production capacity for data center products.

Components of lease expense

The components of lease expense were as follows:

	Three months ended June 30,
	2024		2023
Operating lease expense (a)	$	6.9	$	5.9
Finance lease expense:
Depreciation of ROU assets		0.1		0.1
Interest on lease liabilities		-		-
Total lease expense	$	7.0	$	6.0

(a)	For the three months ended June 30, 2024 and 2023, operating lease expense included short-term lease expense of $1.3 million and $1.5 million, respectively. Variable lease expense was not significant.

During July 2024, the Company signed a 10-year operating lease of a manufacturing facility with future lease payments totaling approximately $12.0 million.