Leases Operating lease arrangements are comprised primarily of real estate and equipment agreements for which the ROU assets are included in other assets and the corresponding lease liabilities, depending on their maturity, are included in accrued liabilities or other long-term liabilities in the consolidated balance sheets. There are certain immaterial finance leases recorded in the consolidated balance sheets. The Company has elected to account for the lease and non-lease components as a single lease component.
The Company's leases are included as a component of the following balance sheet lines (in millions):
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| | March 31, |
| 2026 | | 2025 |
| Other assets: | | | |
| ROU assets | $ | 137.5 | | | $ | 146.3 | |
| Total lease assets | $ | 137.5 | | | $ | 146.3 | |
| Accrued liabilities: | | | |
| Current portion of lease liabilities | $ | 38.8 | | | $ | 35.7 | |
| Other long-term liabilities: | | | |
| Non-current portion of lease liabilities | 107.0 | | | 115.1 | |
| Total lease liabilities | $ | 145.8 | | | $ | 150.8 | |
The following table presents the maturities of lease liabilities as of March 31, 2026 (in millions):
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| Fiscal year ending March 31, | | Operating Leases |
| 2027 | | $ | 44.4 | |
| 2028 | | 37.3 | |
| 2029 | | 26.8 | |
| 2030 | | 20.7 | |
| 2031 | | 15.5 | |
| Thereafter | | 17.8 | |
| Total lease payments | | 162.5 | |
| Less: Imputed lease interests | | 16.7 | |
| Total lease liabilities | | $ | 145.8 | |
The Company's weighted-average remaining lease-term and weighted-average discount rate at March 31, 2026 are as follows:
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| Weighted average remaining lease-term (years) | 4.84 |
| Weighted average discount rate | 4.61 | % |
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The Company's total lease expense is as follows (in millions):
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| | | | | Fiscal Year Ended March 31, |
| | | | | | 2026 | | 2025 | 2024 |
| Operating lease expense | | | | | | $ | 63.8 | | | $ | 61.8 | | $ | 60.4 | |
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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.