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Leases
12 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Leases

Note 18. Leases

We have lease agreements with lease and non-lease components, which are not accounted for separately. Additionally, for certain leases, we apply a portfolio approach to account for the operating lease right-of-use ("ROU") assets and liabilities as the leases are similar in nature and have nearly identical contract provisions. These leases, which are comprised

primarily of storage rental locations, can have lease terms generally between 2 and 20 years. Covenants include the Company’s responsibility for all maintenance and repairs during the term of the agreement.

Our equipment sale/leaseback transactions do not qualify as a sale. Equipment leases prior to adoption of ASC 842 were recorded as capital leases and classified as finance lease ROU assets and liabilities upon adoption. New sale leaseback transactions that fail to qualify as a sale are accounted for as a financial liability. We use our incremental borrowing rate based on information available at commencement date, including the rate for a fully collateralized loan that can either be fully amortized or financed with a residual at the end of the lease term, for a borrower with similar credit quality in order to determine the present value of lease payments. Our lease terms are generally 7 years, may include options to extend or terminate the lease, which are included in the calculation of ROU assets when it is reasonably certain that we will exercise those options. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Please see Note 10, Notes, Loans and Finance Leases Payable, net, of the Notes to Consolidated Financial Statements for additional information.

The following table shows the components of our ROU assets, net:

 

 

 

As of March 31, 2024

 

 

 

Finance

 

 

 

Operating

 

 

 

Total

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Buildings and improvements

$

 

 

 

$

 

79,317

 

 

$

 

79,317

 

Furniture and equipment

 

 

61

 

 

 

 

 

 

 

 

61

 

Rental trailers and other rental equipment

 

 

114,607

 

 

 

 

 

 

 

 

114,607

 

Rental trucks

 

607,521

 

 

 

 

 

 

 

 

607,521

 

Right-of-use assets, gross

 

722,189

 

 

 

 

79,317

 

 

 

 

801,506

 

Less: Accumulated depreciation

 

(432,884

)

 

 

 

(25,605

)

 

 

 

(458,489

)

Right-of-use assets, net

$

 

289,305

 

 

$

 

53,712

 

 

$

 

343,017

 

 

 

 

As of March 31, 2023

 

 

 

Finance

 

 

Operating

 

 

Total

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

Buildings and improvements

$

 

 

$

 

128,221

 

$

 

128,221

 

Furniture and equipment

 

 

9,687

 

 

 

 

 

 

9,687

 

Rental trailers and other rental equipment

 

 

152,294

 

 

 

 

 

 

152,294

 

Rental trucks

 

 

949,838

 

 

 

 

 

 

949,838

 

Right-of-use assets, gross

 

 

1,111,819

 

 

 

128,221

 

 

 

1,240,040

 

Less: Accumulated depreciation

 

 

(637,054

)

 

 

(69,304

)

 

 

(706,358

)

Right-of-use assets, net

$

 

474,765

 

$

 

58,917

 

$

 

533,682

 

 

As of March 31, 2024 and 2023, we had finance lease liabilities for the ROU assets, net of $117.6 million and $223.2 million, respectively, included in notes, loans and finance leases payable, net.

 

 

 

Financing leases

 

 

 

 

March 31,

 

 

 

 

2024

 

 

 

2023

 

 

Weighted average remaining lease term (years)

 

 

1

 

 

 

 

2

 

 

Weighted average discount rate

 

 

4.1

 

%

 

 

3.8

 

%

 

 

 

Operating leases

 

 

 

 

March 31,

 

 

 

 

2024

 

 

 

2023

 

 

Weighted average remaining lease term (years)

 

 

21.9

 

 

 

 

19.2

 

 

Weighted average discount rate

 

 

4.6

 

%

 

 

4.7

 

%

 

For fiscal years 2024, 2023 and 2022, cash paid for leases included in our operating cash flow activities were $33.8 million, $32.1 million and $30.2 million, respectively, and our financing cash flow activities were $105.6 million, $124.2 million and $166.3 million, respectively. Non-cash activities of ROU assets in exchange for lease liabilities were $48.8 million, $9.5 million and $3.7 million for fiscal years 2024, 2023 and 2022, respectively.

The components of lease costs, including leases of less than 12 months, were as follows:

 

 

 

Twelve Months Ended March 31,

 

 

 

2024

 

 

2023

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

Operating lease costs

$

 

34,609

 

$

 

32,878

 

 

 

 

 

 

 

 

Finance lease cost:

 

 

 

 

 

 

Amortization of right-of-use assets

$

 

55,085

 

$

 

81,006

 

Interest on lease liabilities

 

 

6,990

 

 

 

11,199

 

Total finance lease cost

$

 

62,075

 

$

 

92,205

 

 

The short-term lease costs for fiscal years 2024 and 2023 were not material.

Maturities of lease liabilities were as follows:

 

 

 

Finance leases

 

 

Operating leases

 

Year ending March 31,

 

(In thousands)

 

 

 

 

 

 

 

 

2025

$

 

76,522

 

$

 

12,904

 

2026

 

 

46,001

 

 

 

9,592

 

2027

 

 

 

 

 

7,500

 

2028

 

 

 

 

 

6,478

 

2029

 

 

 

 

 

4,933

 

Thereafter

 

 

 

 

 

61,016

 

Total lease payments

 

 

122,523

 

 

 

102,423

 

Less: imputed interest

 

 

(4,882

)

 

 

(47,391

)

Present value of lease liabilities

$

 

117,641

 

$

 

55,032