Note

Leases

Under the new lease standard, a contract is a lease or contains

one

when (

) the contract contains an explicitly or implicitly identified asset and (

) the customer obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract in exchange for consideration. We assess whether an arrangement is a lease, or contains a lease, upon inception of the contract. As of

June 30, 2019,

we have operating leases for buildings, warehouses, and office equipment. Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments

not

yet paid. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments. Adjustments would also be made for accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets,

none

of which are present in any of our current lease contracts. To determine the present value of lease payments

not

yet paid, we estimate incremental secured borrowing rates corresponding to the maturities of the leases. When readily determinable, the discount rate used to calculate the lease liability is the rate implicit in the lease. Otherwise we use our incremental borrowing rate based on the information available at lease commencement. Our short-term leases are

not

material.

Our leases typically contain rent escalations over the lease term. We recognize expense for these leases on a straight-line basis over the lease term. Many of our leases include

one

or more renewal or termination options at our discretion, which are included in the determination of the lease term if we are reasonably certain to exercise the option. We have also entered into lease agreements that have variable payments related to certain indexes. Variable lease payments are recognized in the period in which those payments are incurred.

The following table presents the lease balances within the Condensed Consolidated Balance Sheets related to our operating leases as of

June 30, 2019:

Lease Assets and Liabilities	Balance Sheet Location	June 30, 2019
Operating lease ROU asset	Other assets	$	1,361
Current operating lease liabilities	Other accrued expenses		711
Noncurrent operating lease liabilities	Other long-term liabilities		594

Lease term and discount rates were as follows as of

June 30, 2019:

	June 30, 2019
Weighted average remaining lease term in years		2.1
Weighted average discount rate		3.94	%

The components of lease costs were as follows for the

three

month period ended

June 30, 2019:

	Three Months Ended June 30, 2019
Operating lease expense	$	180
Variable lease expense		27
Total lease expense	$	207

Supplemental cash flow information related to leases were as follows for the

three

month period ended

June 30, 2019:

	Three Months Ended June 30, 2019
Cash paid for amounts included in the measurements of lease liabilities	$	194
Operating lease assets obtained in exchange for operating lease obligations		73

Maturities of lease liabilities were as follows as of

June 30, 2019:

Remainder of fiscal year 2020	$	573
2021		549
2022		218
2023		21
Future value of lease liabilities		1,361
Less: imputed interest		56
Present value of lease liabilities	$	1,305

As of

June 30, 2019,

we had

additional significant operating leases that had

not

yet commenced.

Total noncancellable operating leases in effect at

March 31, 2019,

as reported under previous lease accounting guidance, require rental payments of the following amounts in each of the following periods:

Fiscal year ending March 31,
2020	$	653
2021		443
2022		230
2023		48
Total future lease payments	$	1,374