Leases

3 Months Ended

Jun. 30, 2024

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 a loss of $5,709,000 and a gain of $3,770,000 during the three months ended June 30, 2024 and 2023, respectively. These amounts are included in foreign exchange impact of lease liabilities and forward contracts in the condensed consolidated statements of operations.

Balance sheet information for leases is as follows:

Leases	Classification	June 30, 2024		March 31, 2024
Assets:
Operating	Operating lease assets	$	77,057,000	$	83,973,000
Finance	Plant and equipment		4,239,000		4,611,000
Total leased assets		$	81,296,000	$	88,584,000

Liabilities:
Current
Operating	Operating lease liabilities	$	9,083,000	$	8,319,000
Finance	Other current liabilities		1,427,000		1,585,000
Long-term
Operating	Long-term operating lease liabilities		71,044,000		72,240,000
Finance	Other liabilities		1,577,000		1,893,000
Total lease liabilities		$	83,131,000	$	84,037,000

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

	Three Months Ended
	June 30,
	2024		2023
Lease cost
Operating lease cost	$	3,759,000	$	3,742,000
Short-term lease cost		312,000		293,000
Variable lease cost		164,000		186,000
Finance lease cost:
Amortization of finance lease assets		358,000		403,000
Interest on finance lease liabilities		51,000		62,000
Total lease cost	$	4,644,000	$	4,686,000

Maturities of lease commitments at June 30, 2024 by fiscal year were as follows:

Maturity of lease liabilities	Operating Leases			Finance Leases			Total
2025 - remaining nine months	$	10,093,000		$	1,231,000		$	11,324,000
2026		13,272,000			1,014,000			14,286,000
2027		11,421,000			523,000			11,944,000
2028		10,929,000			363,000			11,292,000
2029		11,126,000			169,000			11,295,000
Thereafter		43,462,000			-			43,462,000
Total lease payments		100,303,000			3,300,000			103,603,000
Less amount representing interest		(20,176,000	)		(296,000	)		(20,472,000	)
Present value of lease liabilities	$	80,127,000		$	3,004,000		$	83,131,000

Other information about leases is as follows:

	June 30, 2024			March 31, 2024
Lease term and discount rate
Weighted-average remaining lease term (years):
Finance leases		2.7			2.8
Operating leases		8.0			8.3
Weighted-average discount rate:
Finance leases		6.5	%		6.4	%
Operating leases		5.8	%		5.8	%