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Leases Leases (Notes) | 3 Months Ended
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Jun. 30, 2021
Leases [Abstract] |
Lessee, Operating Leases | 15. Leases Operating leases The Company's operating leases 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 operating 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 | June 30, 2021 | March 31, 2021
Assets | Other assets | $ | 33,781 |  | $ | 34,181 |
Current | Accrued liabilities | 7,963 |  | 7,673 |
Non-current | Other non current liabilities | 26,688 |  | 27,321 |
Total liabilities |  | $ | 34,651 |  | $ | 34,994 |
Included in the ROU asset balance are leases held by Dorner in the amount of $660,000 as of June 30, 2021. Operating lease expense of $2,349,000 and $2,233,000 for the three months ended June 30, 2021 and June 30, 2020, 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 months ended June 30, 2021 and June 30, 2020. Supplemental cash flow information related to operating leases is as follows (in thousands):
| Three months ended
| June 30, 2021 | June 30, 2020
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 2,291 |  | $ | 2,160 |
ROU assets obtained in exchange for new operating lease liabilities | $ | 1,125 |  | $ | 619 |
Finance Lease As stated in Note 9, Debt, in connection with the acquisition of Dorner, the Company recorded a finance lease for a manufacturing facility in Hartland, WI that has a 23 year lease term which terminates in 2035. The outstanding balance on the finance lease obligation is $14,458,000 as of June 30, 2021, of which $501,000 has been recorded within the Current portion of long term debt and finance lease obligations and the remaining balance is recorded within Term loan and finance lease obligations on the Company's Condensed Consolidated Balance Sheet. Similar to the Company discount rate for operating leases, the discount rate implicit within the finance lease is not readily determinable. Therefore, the Company used its estimated incremental borrowing rate in determining the present value of lease payments. The incremental borrowing rate was determined based on the Company’s recent debt issuances, lease term, and the currency, and was determined to be 4.51%. Lease expense of $234,000 is included in Income from operations and $152,000 is included in Interest and debt expense on the Company's Condensed Consolidated Statements of Operations in the three months ended June 30, 2021 related to the finance lease. Supplemental cash flow information related to finance leases is as follows (in thousands):
| Three months ended
| June 30, 2021
Cash paid for amounts included in the measurement of finance lease liabilities | $ | 277 |
ROU assets obtained in exchange for new finance lease liabilities | $ | 14,582 |

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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