LEASES
We have operating leases for manufacturing facilities, offices, warehouses, vehicles and certain equipment. Our leases have remaining lease terms of 1 year to 22 years, some of which include escalation clauses and/or options to extend or terminate the leases. Our financing lease arrangements are immaterial.
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| (in thousands) | | March 31, 2026 | | March 31, 2025 |
| Components of Operating Lease Expenses | | | | |
| Operating lease expense | | $ | 17,164 | | | $ | 13,048 | |
| Short-term lease expense | | 438 | | | 953 | |
| Total operating lease expense (a) | | $ | 17,602 | | | $ | 14,001 | |
| (a) Included in cost of revenues and selling, general and administrative expense | | | | |
| | | | |
| (in thousands) | | March 31, 2026 | | March 31, 2025 |
| Operating Lease Assets and Liabilities | | | | |
| Right-of-use lease assets, net (a) | | $ | 68,617 | | | $ | 62,061 | |
| Assets of business held for sale | | 2,385 | | | $ | — | |
| | | | |
| Short-term lease liabilities (b) | | $ | 13,622 | | | $ | 11,244 | |
| Long-term lease liabilities (b) | | 61,862 | | | 58,120 | |
| Liabilities of business held for sale | | 2,398 | | | — | |
| Total operating lease liabilities | | $ | 77,882 | | | $ | 69,364 | |
| (a) Included in other assets | | | | |
| (b) Included in accrued and other current liabilities and other long-term liabilities, as applicable | | | | |
| | | | | | | | | | | | | | |
| | Year Ended March 31, |
| (in thousands) | | 2026 | | 2025 |
| Supplemental Cash Flow | | | | |
| Cash paid for amounts included in the measurement of operating lease liabilities | | $ | 17,133 | | | $ | 13,132 | |
| Right-of-use assets obtained in exchange for new operating lease obligations | | 16,371 | | | 30,018 | |
|
| Other Information for Operating Leases | | | | |
| Weighted average remaining lease term (in years) | | 6.3 | | 7.0 |
| Weighted average discount rate (percent) | | 5.8 | % | | 5.6 | % |
| | | | | | | | |
| Maturities of operating lease liabilities were as follows: | | |
| Year Ending March 31, | | |
| 2027 | | $ | 17,840 | |
| 2028 | | 16,450 | |
| 2029 | | 14,933 | |
| 2030 | | 12,545 | |
| 2031 | | 9,042 | |
| Thereafter | | 23,265 | |
| Total lease liabilities | | $ | 94,075 | |
| Less: Imputed interest | | (16,193) | |
| Present value of lease liabilities | | $ | 77,882 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.