Leases

6 Months Ended

Sep. 30, 2025

The Company’s lease arrangements generally include real estate (manufacturing facilities, sales offices, distribution centers, warehouses), vehicles, and equipment. Leases with a term greater than one year are recognized on the Condensed Consolidated Balance Sheets; the Company has elected not to recognize leases with terms of one year or less on the Consolidated Balance Sheet. Lease obligations and their corresponding Right of Use (ROU) assets are recorded based on the present value of lease payments over the expected lease term. The Company recognizes lease expense on a straight-line basis over the lease term.

The Company's leases have lease terms ranging from 1 to 23 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 lease-related assets and liabilities recorded on the Condensed Consolidated Balance Sheet (in thousands):


	September 30, 2025		March 31, 2025
Operating leases:
Other assets	$	56,505	$	59,506

Accrued liabilities	10,615		9,961
Other non current liabilities	55,856		59,735
Total operating liabilities	$	66,471	$	69,696

Finance lease:
Property, plant, and equipment, net	$	10,298	$	10,595

Current portion of long-term debt and finance lease obligations	810		739
Term loan, AR securitization facility and finance lease obligations	11,301		11,528
Total finance liabilities	$	12,111	$	12,267

Operating lease expense of $3,606,000 and $7,198,000 and $3,865,000 and $7,609,000 for the three and six months ended September 30, 2025 and September 30, 2024, 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 six months ended September 30, 2025 and September 30, 2024, respectively. Finance lease expense of $254,000 and $504,000 and $250,000 and $501,000 for the three and six months ended September 30, 2025 and September 30, 2024, respectively, is included in Income from operations on the Condensed Consolidated Statements of Operations. Interest and debt expense related to the finance lease of $137,000 and $273,000 and $144,000 and $288,000 is included the Company's Condensed Consolidated Statements of Operations for the three and six months ended September 30, 2025 and September 30, 2024, respectively.

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


	Six Months Ended September 30,
	2025		2024
Cash paid for amounts included in the measurement of operating lease liabilities	$	7,447	$	6,077
Cash paid for amounts included in the measurement of finance lease liabilities	$	636	$	614
ROU assets obtained in exchange for new operating lease liabilities	$	560	$	6,805