Leases

9 Months Ended

Dec. 31, 2023

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 operations. 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. In connection with the remeasurement of these leases, the Company recorded gains of $2,608,000 and $3,129,000 during the three months ended December 31, 2023 and 2022, respectively. During the nine months ended December 31, 2023 and 2022, the Company recorded gains of $4,430,000 and $2,108,000, respectively, in connection with the remeasurement of these leases. These amounts are included in foreign exchange impact of lease liabilities and forward contracts in the condensed consolidated statements of operations and condensed consolidated statements of cash flows.

Balance sheet information for leases is as follows:

Leases	Classification	December 31, 2023		March 31, 2023
Assets:
Operating	Operating lease assets	$	85,187,000	$	87,619,000
Finance	Plant and equipment		4,251,000		5,549,000
Total leased assets		$	89,438,000	$	93,168,000

Liabilities:
Current
Operating	Operating lease liabilities	$	8,564,000	$	8,767,000
Finance	Other current liabilities		1,564,000		1,851,000
Long-term
Operating	Long-term operating lease liabilities		73,725,000		79,318,000
Finance	Other liabilities		1,640,000		2,742,000
Total lease liabilities		$	85,493,000	$	92,678,000

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

	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2023		2022		2023		2022
Lease cost
Operating lease cost	$	3,740,000	$	3,232,000	$	11,243,000	$	9,527,000
Short-term lease cost		274,000		340,000		917,000		1,353,000
Variable lease cost		138,000		164,000		470,000		528,000
Finance lease cost:
Amortization of finance lease assets		361,000		503,000		1,155,000		1,531,000
Interest on finance lease liabilities		51,000		68,000		170,000		200,000
Total lease cost	$	4,564,000	$	4,307,000	$	13,955,000	$	13,139,000

Maturities of lease commitments at December 31, 2023 by fiscal year were as follows:

Maturity of lease liabilities	Operating Leases			Finance Leases			Total
2024 - remaining three months	$	3,506,000		$	483,000		$	3,989,000
2025		12,514,000			1,577,000			14,091,000
2026		12,200,000			844,000			13,044,000
2027		10,974,000			353,000			11,327,000
2028		10,873,000			194,000			11,067,000
Thereafter		54,486,000			2,000			54,488,000
Total lease payments		104,553,000			3,453,000			108,006,000
Less amount representing interest		(22,264,000	)		(249,000	)		(22,513,000	)
Present value of lease liabilities	$	82,289,000		$	3,204,000		$	85,493,000

Other information about leases is as follows:

	December 31, 2023			March 31, 2023
Lease term and discount rate
Weighted-average remaining lease term (years):
Finance leases		2.4			2.9
Operating leases		8.5			9.0
Weighted-average discount rate:
Finance leases		6.0	%		5.9	%
Operating leases		5.8	%		5.8	%