Leases

6 Months Ended

Sep. 30, 2019

LEASES

The Company, as a lessee, enters into operating leases for land, buildings, equipment, and vehicles. For all operating leases with terms greater than 12 months and with fixed payment arrangements, a lease liability and corresponding right-of-use asset are recognized in the balance sheet for the term of the lease by calculating the net present value of future lease payments. On the date of lease commencement, the present value of lease liabilities is determined by discounting the future lease payments by the Company’s collateralized incremental borrowing rate, adjusted for the lease term and currency of the lease payments. If a lease contains a renewal option that the Company is reasonably certain to exercise, the Company accounts for the original lease term and expected renewal term in the calculation of the lease liability and right-of-use asset.

The following table sets forth the right-of-use assets and lease liabilities for operating leases included in the Company’s consolidated balance sheet:



(in thousands)	September 30, 2019

Assets
Operating lease right-of-use assets	$	34,838

Liabilities
Current portion of operating lease liabilities	8,591
Long-term operating lease liabilities	23,331
Total operating lease liabilities	$	31,922

The following table sets forth the location and amount of operating lease costs included in the Company's consolidated statement of income:



	Three Months Ended September 30,		Six Months Ended September 30,
(in thousands)	2019		2019

Income Statement Location
Cost of goods sold	$	2,591	$	5,209
Selling, general, and administrative expenses	2,064		4,050
Total operating lease costs⁽¹⁾	$	4,655	$	9,259


⁽¹⁾	Includes variable operating lease costs.

For the fiscal year ended March 31, 2019, the Company recorded $17.6 million of total expense for operating leases.

The following table reconciles the undiscounted cash flows to the operating lease liabilities in the Company’s consolidated balance sheet:



(in thousands)	September 30, 2019
Maturity of Operating Lease Liabilities
2020 (excluding the six months ended September 30, 2019)	$	5,369
2021	8,807
2022	5,636
2023	4,309
2024	3,293
2025 and thereafter	9,995
Total undiscounted cash flows for operating leases	$	37,409
Less: Imputed interest	(5,487		)
Total operating lease liabilities	$	31,922

As of September 30, 2019, the Company has entered into additional operating leases that have not yet commenced, representing $1.0 million of future payments.

The following table sets forth supplemental information related to operating leases:



	Three Months Ended September 30,		Six Months Ended September 30,
(in thousands, except lease term and incremental borrowing rate)	2019		2019

Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of operating lease liabilities	$	4,213	$	7,259
Right-of-use assets obtained in exchange for new operating leases	$	3,633	$	4,101

Weighted Average Remaining Lease Term (years)			6.15

Weighted Average Collateralized Incremental Borrowing Rate			4.75		%