Note 5. Leases

 

We have operating leases for buildings and office equipment used in manufacturing and distribution, engineering, research and development, sales and marketing, and administration activities. The following table presents the lease balances within the Consolidated Balance Sheets related to our operating leases:

 

Lease Assets and Liabilities

Balance Sheet Location

 

March 31, 2026

  

March 31, 2025

 

Operating lease ROU asset

Other assets

 $17,500  $16,382 

Current operating lease liabilities

Other accrued expenses

  3,687   3,523 

Noncurrent operating lease liabilities

Other noncurrent liabilities

  13,662   12,380 

 

The components of lease costs, the weighted average remaining lease term and the weighted average discount rate were as follows:

 

  

Year Ended March 31,

 
  

2026

  

2025

  

2024

 

Operating lease expense

 $4,990  $4,025  $3,453 

Variable lease expense

  1,781   1,316   1,039 

Short term lease expense

  388   571   423 

Total lease expense

 $7,159  $5,912  $4,915 

Weighted average remaining lease term in years

  7.6   6.8   4.6 

Weighted average discount rate

  6.7%  6.2%  4.1%

 

Supplemental cash flow information related to leases was as follows:

 

  

Year Ended March 31,

 
  

2026

  

2025

  

2024

 

Cash paid for amounts included in the measurements of lease liabilities

 $5,041  $4,534  $3,392 

Operating lease assets obtained in exchange for operating lease liabilities

  4,151   9,863   4,265 

 

As of March 31, 2026 maturities of lease liabilities are as follows for future years ending March 31:

 

2027

 $4,732 

2028

  1,702 

2029

  2,385 

2030

  2,284 

2031

  2,269 

Thereafter

  9,125 

Future value of lease liabilities

  22,497 

Less: imputed interest

  (5,148)

Present value of lease liabilities

 $17,349 

 

Historical Timeline

Fiscal YearFiled
2026Jun 3, 2026Showing above
2025May 28, 2025
2024Jun 28, 2024
2023May 30, 2023
2022May 31, 2022
2021Jun 1, 2021
2020Jun 1, 2020
2019Jun 3, 2019

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.