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 gains of $5,187,000, $6,515,000, and $1,989,000 during the years ended March 31, 2024, 2023, and 2022, respectively. These remeasurement gains are included in foreign exchange impact of lease liabilities and forward contracts in the consolidated statements of operations.

Balance sheet information for leases is comprised of the following:

  
 
March 31, 2024
   
March 31, 2023
 
Leases
Classification
           
Assets:
 
           
Operating
Operating lease assets
 
$
83,973,000
   
$
87,619,000
 
Finance
Plant and equipment
   
4,611,000
     
5,549,000
 
Total leased assets
 
 
$
88,584,000
   
$
93,168,000
 
 
 
               
Liabilities:
 
               
Current
 
               
Operating
Operating lease liabilities
 
$
8,319,000
   
$
8,767,000
 
Finance
Other current liabilities
   
1,585,000
     
1,851,000
 
Long-term
 
               
Operating
Long-term operating lease liabilities
   
72,240,000
     
79,318,000
 
Finance
Other liabilities
   
1,893,000
     
2,742,000
 
Total lease liabilities
 
 
$
84,037,000
   
$
92,678,000
 

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

 
 
Years Ended March 31,
 
 
 
2024
   
2023
    2022  
Lease cost
                 
Operating lease cost
 
$
15,047,000
   
$
13,176,000
    $ 12,472,000  
Short-term lease cost
   
1,263,000
     
1,686,000
      1,462,000  
Variable lease cost
   
667,000
     
761,000
      1,011,000  
Finance lease cost:
                       
Amortization of finance lease assets
   
1,508,000
     
1,983,000
      2,088,000  
Interest on finance lease liabilities
   
219,000
     
262,000
      345,000  
Total lease cost
 
$
18,704,000
   
$
17,868,000
    $ 17,378,000  

Maturities of lease commitments at March 31, 2024 were as follows:

Maturity of lease liabilities by fiscal year
 
Operating Leases
   
Finance Leases
   
Total
 
2025
 
$
12,676,000
   
$
1,753,000
   
$
14,429,000
 
2026
   
12,374,000
     
1,015,000
     
13,389,000
 
2027
   
11,194,000
     
524,000
     
11,718,000
 
2028
   
10,928,000
     
364,000
     
11,292,000
 
2029
   
11,126,000
     
169,000
     
11,295,000
 
Thereafter
   
43,461,000
     
-
     
43,461,000
 
Total lease payments
   
101,759,000
     
3,825,000
     
105,584,000
 
Less: amount representing interest
   
(21,200,000
)
   
(347,000
)
   
(21,547,000
)
Present value of lease liabilities
 
$
80,559,000
   
$
3,478,000
   
$
84,037,000
 

Other information about leases is as follows:

 
 
March 31, 2024
   
March 31, 2023
 
Lease term and discount rate
           
Weighted-average remaining lease term (years):
           
Finance leases
   
2.8
     
2.9
 
Operating leases
   
8.3
     
9.0
 
Weighted-average discount rate:
               
Finance leases
   
6.4
%
   
5.9
%
Operating leases
   
5.8
%
   
5.8
%

Historical Timeline

Fiscal YearFiled
2024Jun 11, 2024Showing above
2023Jun 14, 2023
2022Jun 14, 2022
2021Jun 14, 2021
2020Jun 15, 2020
2019Jun 28, 2019
2018Jun 14, 2018
2017Jun 14, 2017
2016Jun 14, 2016

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.