Leases Leases (Notes)

9 Months Ended

Dec. 31, 2020

15. Leases

The Company's leases are classified as operating leases and consist of manufacturing facilities, sales offices, distribution centers, warehouses, vehicles, and equipment. For leases with terms greater than twelve months, at lease commencement the Company recognizes a right-of-use ("ROU") asset and a lease liability. The initial lease liability is recognized at the present

value of remaining lease payments over the lease term. Leases with an initial term of twelve months or less are not recorded on the Company's Condensed Consolidated Balance Sheet. The Company recognizes lease expense for operating leases on a straight-line basis over the lease term.

The Company's leases have lease terms ranging from 1 to 15 years, some of which include options to extend or terminate the lease. The exercise of lease renewal options is at the Company’s sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term. The Company’s lease agreements do not contain material residual value guarantees or any material restrictive covenants.

The following table illustrates the balance sheet classification for ROU assets and lease liabilities (in thousands):


	Balance sheet classification	December 31, 2020		March 31, 2020
Assets	Other assets	$	36,310	$	38,125

Current	Accrued liabilities	7,826		6,924
Non-current	Other non current liabilities	29,251		31,629
Total liabilities		$	37,077	$	38,553

Operating lease expense of $2,342,000 and $2,299,000 and $6,953,000 and $6,833,000 for the three and nine months ending December 31, 2020 and December 31, 2019, respectively, is included in income from operations on the Condensed Consolidated Statements of Operations. Short-term lease expense, sublease income, and variable lease expenses were not material for the three and nine months ending December 31, 2020 and December 31, 2019.

Supplemental cash flow information related to operating leases is as follows (in thousands):


	Nine months ended
	December 31, 2020		December 31, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	6,740	$	6,636
ROU assets obtained in exchange for new operating lease liabilities	$	2,421	$	7,808