Leases

12 Months Ended

Mar. 31, 2022

10. Leases

The Company leases various facilities in North America and Asia under operating leases expiring through August 2033. During the first quarter of fiscal 2022, the Company renewed the lease for its corporate headquarters in Torrance, California, for an additional 10-year period, which resulted in an increase in the operating lease liability of $15,537,000. The Company also has finance leases for certain office and manufacturing equipment, which generally range from three to five years.

The Company has material non-functional currency leases, which resulted in a remeasurement gains of $1,989,000 and $9,893,000 during the years ended March 31, 2022 and 2021, respectively, and a loss of $11,710,000 during the year ended March 31, 2020. These remeasurement gains are included in “foreign exchange impact of lease liabilities and forward contracts” in the consolidated statements of operations.

Balance sheet information for leases is comprised of the following:

		March 31, 2022		March 31, 2021
Leases	Classification
Assets:
Operating	Operating lease assets	$	81,997,000	$	71,513,000
Finance	Plant and equipment		7,470,000		8,852,000
Total leased assets		$	89,467,000	$	80,365,000

Liabilities:
Current
Operating	Operating lease liabilities	$	6,788,000	$	6,439,000
Finance	Other current liabilities		2,330,000		2,640,000
Long-term
Operating	Long-term operating lease liabilities		80,803,000		70,551,000
Finance	Other liabilities		3,425,000		4,995,000
Total lease liabilities		$	93,346,000	$	84,625,000

Lease cost recognized in the consolidated statement of operations is comprised of the following:

	Years Ended March 31,
	2022		2021		2020
Lease cost
Operating lease cost	$	12,472,000	$	11,527,000	$	8,733,000
Short-term lease cost		1,462,000		1,383,000		1,263,000
Variable lease cost		1,011,000		825,000		600,000
Finance lease cost:
Amortization of finance lease assets		2,088,000		1,762,000		1,616,000
Interest on finance lease liabilities		345,000		379,000		281,000
Total lease cost	$	17,378,000	$	15,876,000	$	12,493,000

Maturities of lease commitments at March 31, 2022 were as follows:

Maturity of lease liabilities by fiscal year	Operating Leases			Finance Leases			Total
2023	$	11,497,000		$	2,549,000		$	14,046,000
2024		10,034,000			1,747,000			11,781,000
2025		10,092,000			1,246,000			11,338,000
2026		10,350,000			553,000			10,903,000
2027		10,497,000			89,000			10,586,000
Thereafter		64,620,000			-			64,620,000
Total lease payments		117,090,000			6,184,000			123,274,000
Less amount representing interest		(29,499,000	)		(429,000	)		(29,928,000	)
Present value of lease liabilities	$	87,591,000		$	5,755,000		$	93,346,000

Other information about leases is as follows:

	March 31, 2022			March 31, 2021
Lease term and discount rate
Weighted-average remaining lease term (years):
Finance leases		2.9			3.4
Operating leases		10.4			11.1
Weighted-average discount rate:
Finance leases		5.1	%		5.3	%
Operating leases		5.7	%		5.9	%