Leases

12 Months Ended

Mar. 31, 2025

10. Leases

The Company leases various facilities in North America and Asia under operating leases expiring through August 2033. 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 loss of $11,713,000 and remeasurement gains of $5,187,000 and $6,515,000 during the years ended March 31, 2025, 2024, and 2023, respectively. These remeasurement losses and gains are included in foreign exchange impact of lease liabilities and forward contracts in the consolidated statements of operations.

During the year ended March 31, 2025, the Company ceased manufacturing operations at its Torrance, California facility as a part of its on-going strategy to utilize its global footprint to enhance its operating efficiencies. This represented a significant change to the use of this right-of-use asset, which required a reassessment of the Company’s asset groups. The Company concluded that this right-of-use asset was no longer part of the Hard Parts asset group. The Company performed a test for recoverability (using Level 3 inputs) which resulted in no impairment at March 31, 2025. Any future changes to the assumptions and estimates from those anticipated may affect the carrying value of right-of-use assets and could result in impairment charges.

Balance sheet information for leases is comprised of the following:


			March 31, 2025		March 31, 2024
Leases	Classification
Assets:
Operating	Operating lease assets	$	66,603,000	$	83,973,000
Finance	Plant and equipment		4,296,000		4,611,000
Total leased assets		$	70,899,000	$	88,584,000

Liabilities:
Current
Operating	Operating lease liabilities	$	9,982,000	$	8,319,000
Finance	Other current liabilities		1,222,000		1,585,000
Long-term
Operating	Long-term operating lease liabilities		65,308,000		72,240,000
Finance	Other liabilities		1,954,000		1,893,000
Total lease liabilities		$	78,466,000	$	84,037,000

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


	Years Ended March 31,
		2025		2024		2023
Lease cost
Operating lease cost	$	14,057,000	$	15,047,000	$	13,176,000
Short-term lease cost		1,221,000		1,263,000		1,686,000
Variable lease cost		511,000		667,000		761,000
Finance lease cost:
Amortization of finance lease assets		1,234,000		1,508,000		1,983,000
Interest on finance lease liabilities		191,000		219,000		262,000
Total lease cost	$	17,214,000	$	18,704,000	$	17,868,000

Maturities of lease commitments at March 31, 2025 were as follows:


Maturity of lease liabilities by Year Ending March 31,		Operating Leases			Finance Leases			Total
2026	$	13,983,000		$	1,396,000		$	15,379,000
2027		12,200,000			905,000			13,105,000
2028		11,560,000			650,000			12,210,000
2029		11,160,000			420,000			11,580,000
2030		11,370,000			186,000			11,556,000
Thereafter		32,119,000			-			32,119,000
Total lease payments		92,392,000			3,557,000			95,949,000
Less: amount representing interest		(17,102,000	)		(381,000	)		(17,483,000	)
Present value of lease liabilities	$	75,290,000		$	3,176,000		$	78,466,000

Other information about leases is as follows:


	March 31, 2025			March 31, 2024
Lease term and discount rate
Weighted-average remaining lease term (years):
Finance leases		3.2			2.8
Operating leases		7.3			8.3
Weighted-average discount rate:
Finance leases		7.0	%		6.4	%
Operating leases		5.8	%		5.8	%