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Leases | 12 Months Ended
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Mar. 31, 2026
Leases [Abstract] |
Lessee, Operating Leases | Leases Lessee Accounting Our leasing activity primarily includes product storage, buildings, real estate, railcars, vehicles and equipment. At the inception of each arrangement, we assess whether it contains a lease and classify it as either an operating or finance lease based on its terms. Lease right-of-use assets reflect our right to use the asset during the lease term, while lease liabilities represent our obligation to make lease payments. Leases with an initial term greater than one year are recognized on the balance sheet at the commencement date, measured at the present value of lease payments. Since the interest rate implicit in our leases is not readily available, we use our incremental borrowing rate, which is the rate we would pay to borrow an amount equal to the lease payments over a similar term and in a similar economic environment. Some vehicle leases include guarantees of residual value. Our lease agreements may include options to extend or terminate, which are considered in measuring our lease liability when exercise is reasonably certain. Lease renewal terms vary from one year to 30 years. We incur variable lease payments, such as adjustments based on an index or rate, such as a consumer price index, fair value adjustments, and charges for common area maintenance, real estate taxes, and insurance. Certain land leas es in our Water Solutions segment require us to pay royalty payments, either as a flat rate per barrel disposed or a percentage of revenue generated. Variable lease payments are excluded from lease right-of-use assets and lease liabilities and are expensed as incurred. Lease right-of-use assets include lease prepayments and exclude lease incentives. For leases acquired through acquisitions, the right-of-use asset reflects adjustments for any favorable or unfavorable market terms. Short-term leases with an initial term of 12 months or less that do not include a purchase option, with the exception of railcar leases, are not recorded on the consolidated balance sheet. Operating lease expense for short-term leases is recognized on a straight-line basis over the lease term and is disclosed below. We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases of buildings, land and vehicles, we account for the lease and non-lease components as a single lease component based on the election of the practical expedient to not separate lease components from non-lease components. The following table summarizes the components of our lease cost for the periods indicated:
|  | Year Ended March 31,
|  | 2026 |  | 2025 |  | 2024
|  | (in thousands)
Operating lease cost (1) |  | $ | 41,274 |  |  | $ | 41,014 |  |  | $ | 44,683 |
Variable lease cost (1) |  | 42,673 |  |  | 37,123 |  |  | 31,118 |
Short-term lease cost (1) |  | 538 |  |  | 1,029 |  |  | 931 |
Finance lease cost |  |  |  |  |  |
Amortization of right-of-use asset (2) |  | 858 |  |  | 5 |  |  | 5 |
Interest on lease obligation (3) |  | 503 |  |  | 9 |  |  | 12 |
Total lease cost |  | $ | 85,846 |  |  | $ | 79,180 |  |  | $ | 76,749 |
(1) Included in operating expenses in our consolidated statements of operations. (2) Included in depreciation and amortization expense in our consolidated statements of operations. (3) Included in interest expense in our consolidated statement of operations. Amounts in the table above do not include lease costs related to our refined products and biodiesel businesses, as these amounts have been classified within discontinued operations within our consolidated statements of operations (see Note 18). The following table summarizes the weighted average lease term and weighted average discount rate for the periods indicated:
| Year Ended March 31,
| 2026 |  | 2025
Operating leases |  |  |
Weighted average lease term (years) | 5.14 |  | 5.54
Weighted average discount rate | 8.30 | % |  | 8.62 | %
Finance leases |  |  |
Weighted average lease term (years) | 2.41 |  | 2.33
Weighted average discount rate | 8.87 | % |  | 14.29 | %
The following table summarizes maturities of our lease obligations at March 31, 2026 (in thousands):
| Operating |  | Finance
Year Ending March 31, | Leases |  | Leases (1)
2027 | $ | 40,851 |  |  | $ | 3,209 |
2028 | 37,292 |  |  | 3,209 |
2029 | 25,095 |  |  | 1,556 |
2030 | 14,149 |  |  | 22 |
2031 | 4,940 |  |  | — |
Thereafter | 20,295 |  |  | — |
Total lease payments | 142,622 |  |  | 7,996 |
Less imputed interest | (27,003) |  |  | (788) |
Total lease obligations | $ | 115,619 |  |  | $ | 7,208 |
(1) At March 31, 2026, the short-term finance lease obligation of $2.7 million is included in accrued expenses and other payables and the long-term finance lease obligation of $4.5 million is included in other noncurrent liabilities in our consolidated balance sheet. The following table summarizes supplemental cash flow information related to our leases for the periods indicated:
|  | Year Ended March 31,
|  | 2026 |  | 2025 |  | 2024
|  | (in thousands)
Supplemental Cash Flow Information |  |  |  |  |  |
Cash paid for amounts included in the measurement of lease obligations |  |  |  |  |  |
Operating cash outflows from operating leases |  | $ | 42,226 |  |  | $ | 41,541 |  |  | $ | 44,781 |
Operating cash outflows from finance leases |  | $ | 456 |  |  | $ | 9 |  |  | $ | 12 |
Financing cash outflows from finance leases |  | $ | 1,593 |  |  | $ | 19 |  |  | $ | 16 |
Right-of-use assets obtained in exchange for lease obligations |  |  |  |  |  |
Operating leases |  | $ | 36,299 |  |  | $ | 51,060 |  |  | $ | 53,338 |
Finance leases |  | $ | 8,753 |  |  | $ | — |  |  | $ | — |
Amounts in the table above do not include operating cash outflows from operating leases related to our refined products and biodiesel businesses, as these amounts have been classified within discontinued operations within our consolidated statements of operations (see Note 18). During the year ended March 31, 2026, we recorded an impairment of $1.5 million related to the remaining biodiesel railcars. During the year ended March 31, 2024, we recorded an impairment of $2.4 million for certain leases in our Water Solutions segment due to underutilization of certain freshwater wells. Lessor Accounting and Subleases Our lessor arrangements include storage, railcar and surface contracts, of which certain agreements contain renewal options for periods of between one year and five years. We determine if an agreement contains a lease at the inception of the arrangement. If an arrangement is determined to contain a lease, we classify the lease as operating, sales-type or direct financing. Lessor accounting under ASC 842 is substantially unchanged and all of our leases will continue to be classified as operating leases. We also, from time to time, sublease certain of our storage capacity and railcars to third-parties. Fixed rental revenue is recognized on a straight-line basis over the lease term. During the years ended March 31, 2026, 2025 and 2024, fixed rental revenue was $13.3 million, $15.0 million and $17.8 million, which includes $4.3 million, $3.4 million and $6.2 million of sublease revenue, respectively. The following table summarizes future minimum lease payments to be received under various noncancelable operating lease agreements at March 31, 2026 (in thousands):
Year Ending March 31, |
2027 | $ | 10,147 |
2028 | 6,915 |
2029 | 2,402 |
2030 | 609 |
2031 | 617 |
Thereafter | 514 |
Total | $ | 21,204 |

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- 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
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