XML 28 R12.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2

Leases

12 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

Leases

The Company leases manufacturing facilities, distribution centers, office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from 1 to 16 years. At contract inception, the Company reviews the terms of the arrangement to determine if the contract is or contains a lease. Guidance in Topic 842 is used to evaluate whether the contract has an identified asset; if the Company has the right to obtain substantially all economic benefits from the asset; and if it has the right to direct the use of the underlying asset. When determining if a contract has an identified asset, the Company considers both explicit and implicit assets, and whether the supplier has the right to substitute the asset. When determining if the Company has the right to obtain substantially all economic benefits from the asset, the Company considers the primary outputs of the identified asset throughout the period of use and determines if it receives greater than 90% of those benefits. When determining if it has the right to direct the use of an underlying asset, the Company considers if it has the right to direct how and for what purpose the asset is used throughout the period of use and if it controls the decision-making rights over the asset.

Lease terms may include options to extend or terminate the lease. The Company exercises its judgment to determine the term of those leases when extension or termination options are present and include such options in the calculation of the lease term when it is reasonably certain that the Company will exercise those options.

The Company has elected to include both lease and non-lease components in the determination of lease payments for all asset classes. Payments made to a lessor for items such as taxes, insurance, common area maintenance, or other costs commonly referred to as executory costs, are also included in lease payments if they are fixed. The fixed portion of these payments are included in the calculation of the lease liability, while any variable portion would be recognized as variable lease expenses, when incurred. Variable payments made to third parties for these, or similar costs, such as utilities, are not included in the calculation of lease payments.

Both finance and operating leases are reflected as liabilities on the commencement date of the lease based on the present value of the lease payments to be made over the lease term. As most of the leases do not provide an implicit rate, the Company has exercised judgment in electing the incremental borrowing rate based on the information available when the lease commences to determine the present value of future payments. Right-of-use assets are valued at the initial measurement of the lease liability, plus any initial direct costs or rent prepayments and reduced by any lease incentives and any deferred lease payments.

Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense includes depreciation, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method.

Short term leases with an initial term of 12 months or less are not presented on the balance sheet and expense is recognized as incurred. The current and non-current portion of operating lease liabilities are reflected in accrued expenses and other liabilities, respectively, on the consolidated balance sheets. The right-of use assets relating to operating and finance leases are reflected in other assets and property, plant and equipment, respectively, on the consolidated balance sheets.

The following table presents lease assets and liabilities and their balance sheet classification:

						Classification						As of March 31, 2024						As of March 31, 2023
Operating Leases:
Right-of-use assets						Other assets						$	76,413					$	85,237
Operating lease current liabilities						Accrued expenses						19,280						21,230
Operating lease non-current liabilities						Other liabilities						61,687						66,555
Finance Leases:
Right-of-use assets						Property, plant, and equipment, net						$	878					$	342
Finance lease current liabilities						Current portion of finance leases						237						90
Finance lease non-current liabilities						Finance leases						647						254

The components of lease expense for the fiscal years ended March 31, 2024 and March 31, 2023 were as follows:

						Classification						March 31, 2024						March 31, 2023
Operating Leases:
Operating lease cost						Operating expenses						$	28,030					$	20,232
Variable lease cost						Operating expenses						11,669						9,816
Short term lease cost						Operating expenses						8,078						4,310
Finance Leases:
Depreciation						Operating expenses						$	297					$	95
Interest expense						Interest expense						57						10
Total												$	48,131					$	34,463

The following table presents the weighted average lease term and discount rates for leases as of March 31, 2024 and March 31, 2023:

March 31, 2024

March 31, 2023

Operating Leases:

Weighted average remaining lease term (years)

5.5 years

5.9 years

Weighted average discount rate

5.38%

4.93%

Finance Leases:

Weighted average remaining lease term (years)

3.8 years

3.7 years

Weighted average discount rate

7.4%

6.79%

The following table presents future payments due under leases reconciled to lease liabilities as of March 31, 2024:

						Finance Leases						Operating Leases
Year ended March 31,
2025						$	290					$	22,890
2026						256						20,048
2027						232						16,819
2028						194						13,200
2029						39						7,846
Thereafter						—						13,224
Total undiscounted lease payments						1,012						94,026
Present value discount						128						13,059
Lease liability						$	884					$	80,967

The following table presents supplemental disclosures of cash flow information related to leases for the fiscal years ended March 31, 2024 and March 31, 2023:

						March 31, 2024						March 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases						$	57					$	15
Operating cash flows from operating leases						27,406						27,176
Financing cash flows from finance leases						275						151
Supplemental non-cash information on lease liabilities arising from right-of-use assets:
Right-of-use assets obtained in exchange for new finance lease liabilities						$	811					$	254
Right-of-use assets obtained in exchange for new operating lease liabilities						31,284						24,423

Leases

Leases

The Company leases manufacturing facilities, distribution centers, office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from 1 to 16 years. At contract inception, the Company reviews the terms of the arrangement to determine if the contract is or contains a lease. Guidance in Topic 842 is used to evaluate whether the contract has an identified asset; if the Company has the right to obtain substantially all economic benefits from the asset; and if it has the right to direct the use of the underlying asset. When determining if a contract has an identified asset, the Company considers both explicit and implicit assets, and whether the supplier has the right to substitute the asset. When determining if the Company has the right to obtain substantially all economic benefits from the asset, the Company considers the primary outputs of the identified asset throughout the period of use and determines if it receives greater than 90% of those benefits. When determining if it has the right to direct the use of an underlying asset, the Company considers if it has the right to direct how and for what purpose the asset is used throughout the period of use and if it controls the decision-making rights over the asset.

Lease terms may include options to extend or terminate the lease. The Company exercises its judgment to determine the term of those leases when extension or termination options are present and include such options in the calculation of the lease term when it is reasonably certain that the Company will exercise those options.

The Company has elected to include both lease and non-lease components in the determination of lease payments for all asset classes. Payments made to a lessor for items such as taxes, insurance, common area maintenance, or other costs commonly referred to as executory costs, are also included in lease payments if they are fixed. The fixed portion of these payments are included in the calculation of the lease liability, while any variable portion would be recognized as variable lease expenses, when incurred. Variable payments made to third parties for these, or similar costs, such as utilities, are not included in the calculation of lease payments.

Both finance and operating leases are reflected as liabilities on the commencement date of the lease based on the present value of the lease payments to be made over the lease term. As most of the leases do not provide an implicit rate, the Company has exercised judgment in electing the incremental borrowing rate based on the information available when the lease commences to determine the present value of future payments. Right-of-use assets are valued at the initial measurement of the lease liability, plus any initial direct costs or rent prepayments and reduced by any lease incentives and any deferred lease payments.

Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense includes depreciation, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method.

Short term leases with an initial term of 12 months or less are not presented on the balance sheet and expense is recognized as incurred. The current and non-current portion of operating lease liabilities are reflected in accrued expenses and other liabilities, respectively, on the consolidated balance sheets. The right-of use assets relating to operating and finance leases are reflected in other assets and property, plant and equipment, respectively, on the consolidated balance sheets.

The following table presents lease assets and liabilities and their balance sheet classification:

						Classification						As of March 31, 2024						As of March 31, 2023
Operating Leases:
Right-of-use assets						Other assets						$	76,413					$	85,237
Operating lease current liabilities						Accrued expenses						19,280						21,230
Operating lease non-current liabilities						Other liabilities						61,687						66,555
Finance Leases:
Right-of-use assets						Property, plant, and equipment, net						$	878					$	342
Finance lease current liabilities						Current portion of finance leases						237						90
Finance lease non-current liabilities						Finance leases						647						254

The components of lease expense for the fiscal years ended March 31, 2024 and March 31, 2023 were as follows:

						Classification						March 31, 2024						March 31, 2023
Operating Leases:
Operating lease cost						Operating expenses						$	28,030					$	20,232
Variable lease cost						Operating expenses						11,669						9,816
Short term lease cost						Operating expenses						8,078						4,310
Finance Leases:
Depreciation						Operating expenses						$	297					$	95
Interest expense						Interest expense						57						10
Total												$	48,131					$	34,463

The following table presents the weighted average lease term and discount rates for leases as of March 31, 2024 and March 31, 2023:

March 31, 2024

March 31, 2023

Operating Leases:

Weighted average remaining lease term (years)

5.5 years

5.9 years

Weighted average discount rate

5.38%

4.93%

Finance Leases:

Weighted average remaining lease term (years)

3.8 years

3.7 years

Weighted average discount rate

7.4%

6.79%

The following table presents future payments due under leases reconciled to lease liabilities as of March 31, 2024:

						Finance Leases						Operating Leases
Year ended March 31,
2025						$	290					$	22,890
2026						256						20,048
2027						232						16,819
2028						194						13,200
2029						39						7,846
Thereafter						—						13,224
Total undiscounted lease payments						1,012						94,026
Present value discount						128						13,059
Lease liability						$	884					$	80,967

The following table presents supplemental disclosures of cash flow information related to leases for the fiscal years ended March 31, 2024 and March 31, 2023:

						March 31, 2024						March 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases						$	57					$	15
Operating cash flows from operating leases						27,406						27,176
Financing cash flows from finance leases						275						151
Supplemental non-cash information on lease liabilities arising from right-of-use assets:
Right-of-use assets obtained in exchange for new finance lease liabilities						$	811					$	254
Right-of-use assets obtained in exchange for new operating lease liabilities						31,284						24,423

X

- References

No definition available.

+ Details

Name:	us-gaap_LeasesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//842-20/tableOfContent

+ Details

Name:	us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 842
-SubTopic 20
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//842-20/tableOfContent

+ Details

Name:	us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration