Leases

6 Months Ended

Sep. 30, 2020

9. Leases

The Company leases various facilities in North America and Asia under operating leases expiring through August 2033. The Company has material nonfunctional currency leases that could have a material impact on the Company’s condensed consolidated statements of income. As required for other monetary liabilities, lessees remeasure foreign currency-denominated lease liabilities using the exchange rate at each reporting date, but the lease assets are nonmonetary assets measured at historical rates and are not affected by subsequent changes in the exchange rates. The Company recorded a gain of $1,618,000 and a loss of $1,139,000 in foreign exchange impact of lease liabilities and forward contracts in the condensed consolidated statements of income in connection with the remeasurement of foreign currency-denominated lease liabilities during the three months ended September 30, 2020 and 2019, respectively. The Company recorded a gain of $3,603,000 and a loss of $637,000 in foreign exchange impact of lease liabilities and forward contracts in the condensed consolidated statements of income in connection with the remeasurement of foreign currency-denominated lease liabilities during the six months ended September 30, 2020 and 2019, respectively.

Balance sheet information for leases is as follows:

		September 30, 2020		March 31, 2020
Leases	Classification
Assets:
Operating	Operating lease assets	$	68,530,000	$	53,029,000
Finance	Plant and equipment		7,506,000		6,922,000
Total leased assets		$	76,036,000	$	59,951,000

Liabilities:
Current
Operating	Operating lease liabilities	$	6,228,000	$	5,104,000
Finance	Other current liabilities		2,333,000		2,059,000
Long-term
Operating	Long-term operating lease liabilities		72,959,000		61,425,000
Finance	Other liabilities		4,299,000		3,905,000
Total lease liabilities		$	85,819,000	$	72,493,000

Lease cost recognized in the condensed consolidated statements of income is as follows:

	Three Months Ended September 30,				Six Months Ended September 30,
	2020		2019		2020		2019
Lease cost
Operating lease cost	$	2,877,000	$	1,987,000	$	5,560,000	$	3,885,000
Short-term lease cost		337,000		295,000		654,000		698,000
Variable lease cost		230,000		157,000		373,000		287,000
Finance lease cost:
Amortization of finance lease assets		428,000		372,000		841,000		730,000
Interest on finance lease liabilities		93,000		73,000		176,000		141,000
Total lease cost	$	3,965,000	$	2,884,000	$	7,604,000	$	5,741,000

Maturities of lease commitments at September 30, 2020 were as follows:

Maturity of lease liabilities	Operating Leases			Finance Leases			Total
2021 - remaining six months	$	5,521,000		$	1,310,000		$	6,831,000
2022		10,348,000			2,438,000			12,786,000
2023		9,269,000			1,800,000			11,069,000
2024		8,102,000			1,026,000			9,128,000
2025		8,095,000			618,000			8,713,000
Thereafter		69,261,000			87,000			69,348,000
Total lease payments		110,596,000			7,279,000			117,875,000
Less amount representing interest		(31,409,000	)		(647,000	)		(32,056,000	)
Present value of lease liabilities	$	79,187,000		$	6,632,000		$	85,819,000

Other information about leases is as follows:

	September 30, 2020
Lease term and discount rate
Weighted-average remaining lease term (years):
Finance leases		3.3
Operating leases		11.5
Weighted-average discount rate:
Finance leases		5.6	%
Operating leases		5.9	%