Leases

12 Months Ended

Mar. 31, 2020

The Company’s operating leases are primarily for sales and administrative offices and manufacturing facilities. These operating leases have lease periods expiring between 2020 and 2061. The Company’s finance leases are primarily for vehicles and certain network equipment. These leases expire between 2020 and 2029.

Many leases require the Company to pay certain executory costs (taxes, insurance, and maintenance) and contain renewal and purchase options. The Company does not assume renewals in the determination of the lease term unless renewals are deemed to be reasonably assured at lease commencement. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of lease expense for the fiscal year ended March 31, 2020 are as follows (amounts in thousands):



	Fiscal Year Ended March 31, 2020
Operating lease expense
Operating lease cost	$	12,033
Variable lease cost and other, net ⁽¹⁾	1,205
Short-term lease cost	31
Sublease income	(79		)
Finance lease expense
Amortization of right-of-use assets	1,323
Interest	152
Total lease expense	$	14,665

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⁽¹⁾ Predominantly includes common area maintenance and parking expenses.

Supplemental balance sheet information related to operating and finance leases as of March 31, 2020 is as follows (amounts in thousands, except lease term and discount rate):



	Balance Sheet Location	March 31, 2020
Lease assets
Operating lease ROU assets	Other assets	$	29,732
Finance lease ROU assets⁽¹⁾	Property, plant and equipment, net of accumulated depreciation	3,008
		$	32,740

Lease liabilities
Current operating lease liabilities	Accrued expenses	$	7,715
Current finance lease liabilities	Accrued expenses	1,245
Non-current operating lease liabilities	Other non-current obligations	22,338
Non-current finance lease liabilities	Other non-current obligations	1,770
		$	33,068

Weighted average remaining lease term (years)
Operating leases		6.11
Finance leases		2.98

Weighted average discount rate
Operating leases		4.77		%
Finance leases		5.51		%

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⁽¹⁾ Finance lease ROU assets are shown net of accumulated depreciation of 3.2 million.

Supplemental cash flow information related to leases for the fiscal year ended March 31, 2020 is as follows (amounts in thousands):



	Fiscal Year Ended March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	12,126
Operating cash flows used for finance leases	148
Financing cash flows used for finance leases	1,447
	$	13,721

Lease liabilities arising from obtaining ROU assets
Operating leases	$	4,731
Finance leases	2,061
	$	6,792

A maturity analysis of the future undiscounted cash flows associated with the Company's operating and finance lease liabilities as of March 31, 2020 were as follows (amounts in thousands):



	Operating Lease Liabilities			Finance Lease Liabilities
2021	$	8,921		$	1,376
2022	6,203			945
2023	4,711			597
2024	3,906			171
2025	2,652			31
Thereafter	9,318			75
Total undiscounted cash flows	$	35,711		$	3,195
Less imputed interest	(5,658		)	(180		)
Present value of lease liabilities	$	30,053		$	3,015

Annual rental expenses for operating leases included in results of operations were $13.3 million and $10.7 million in fiscal years 2019 and 2018, respectively.

Leases

The components of lease expense for the fiscal year ended March 31, 2020 are as follows (amounts in thousands):



	Fiscal Year Ended March 31, 2020
Operating lease expense
Operating lease cost	$	12,033
Variable lease cost and other, net ⁽¹⁾	1,205
Short-term lease cost	31
Sublease income	(79		)
Finance lease expense
Amortization of right-of-use assets	1,323
Interest	152
Total lease expense	$	14,665

______________________________________________________________________________

⁽¹⁾ Predominantly includes common area maintenance and parking expenses.

Supplemental balance sheet information related to operating and finance leases as of March 31, 2020 is as follows (amounts in thousands, except lease term and discount rate):



	Balance Sheet Location	March 31, 2020
Lease assets
Operating lease ROU assets	Other assets	$	29,732
Finance lease ROU assets⁽¹⁾	Property, plant and equipment, net of accumulated depreciation	3,008
		$	32,740

Lease liabilities
Current operating lease liabilities	Accrued expenses	$	7,715
Current finance lease liabilities	Accrued expenses	1,245
Non-current operating lease liabilities	Other non-current obligations	22,338
Non-current finance lease liabilities	Other non-current obligations	1,770
		$	33,068

Weighted average remaining lease term (years)
Operating leases		6.11
Finance leases		2.98

Weighted average discount rate
Operating leases		4.77		%
Finance leases		5.51		%

______________________________________________________________________________

⁽¹⁾ Finance lease ROU assets are shown net of accumulated depreciation of 3.2 million.

Supplemental cash flow information related to leases for the fiscal year ended March 31, 2020 is as follows (amounts in thousands):



	Fiscal Year Ended March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	12,126
Operating cash flows used for finance leases	148
Financing cash flows used for finance leases	1,447
	$	13,721

Lease liabilities arising from obtaining ROU assets
Operating leases	$	4,731
Finance leases	2,061
	$	6,792

A maturity analysis of the future undiscounted cash flows associated with the Company's operating and finance lease liabilities as of March 31, 2020 were as follows (amounts in thousands):



	Operating Lease Liabilities			Finance Lease Liabilities
2021	$	8,921		$	1,376
2022	6,203			945
2023	4,711			597
2024	3,906			171
2025	2,652			31
Thereafter	9,318			75
Total undiscounted cash flows	$	35,711		$	3,195
Less imputed interest	(5,658		)	(180		)
Present value of lease liabilities	$	30,053		$	3,015