Leases

12 Months Ended

Mar. 31, 2023

Leases [Abstract]

Lessee, Operating Leases

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)	March 31, 2023		March 31, 2022
Assets
Operating lease right-of-use assets	$	40,505	$	40,243
Liabilities
Current portion of operating lease liabilities	$	11,404	$	10,303
Long-term operating lease liabilities	25,540		29,617
Total operating lease liabilities	$	36,944	$	39,920

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

	Fiscal Year Ended March 31,		Fiscal Year Ended March 31,
(in thousands)	2023		2022
Income Statement Location
Cost of goods sold	$	11,036	$	10,874
Selling, general, and administrative expenses	10,890		9,676
Total operating lease costs(1)	$	21,926	$	20,550

(1)Includes variable operating lease costs.

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

(in thousands)	March 31, 2023
Maturity of Operating Lease Liabilities
2024	$	13,023
2025	10,061
2026	6,324
2027	4,627
2028	2,908
2029 and thereafter	6,256
Total undiscounted cash flows for operating leases	$	43,199
Less: Imputed interest	(6,255)
Total operating lease liabilities	$	36,944

As of March 31, 2023, the Company had entered into no additional operating leases that have not yet commenced.

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

	Fiscal Year Ended March 31,			Fiscal Year Ended March 31,
(in thousands, except lease term and incremental borrowing rate)	2023			2022
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of operating lease liabilities	$	13,818		$	12,018
Right-of-use assets obtained in exchange for new operating leases	13,536			22,506
Weighted Average Remaining Lease Term (years)	4.86			5.51
Weighted Average Collateralized Incremental Borrowing Rate	5.93		%	5.43		%

As part of the acquisition of Shank's, the Company recognized $8.5 million of operating lease right-of-use assets and corresponding operating lease liabilities on the opening balance sheet related to leases of Shank's facilities. The facilities were subsequently purchased in the three months ended December 31, 2021 and therefore excluded from the lease disclosures above.