Leases

9 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

9. Leases

The Company leases various facilities in North America and Asia under operating leases expiring through August 2033. The Company has material nonfunctional currency leases that could have a material impact on the Company’s condensed consolidated statements of income. As required for other monetary liabilities, lessees remeasure foreign currency-denominated lease liabilities using the exchange rate at each reporting date, but the lease assets are nonmonetary assets measured at historical rates and are not affected by subsequent changes in the exchange rates.

In connection with the remeasurement of these leases, the Company recorded gains of $8,638,000 and $2,128,000 during the three months ended December 31, 2020 and 2019, respectively, and $12,241,000 and $1,491,000 during the nine months ended December 31, 2020 and 2019, respectively. These gains are included in “foreign exchange impact of lease liabilities and forward contracts” in the condensed consolidated statements of income.

Balance sheet information for leases is as follows:

Leases	Classification	December 31, 2020		March 31, 2020
Assets:
Operating	Operating lease assets	$	74,685,000	$	53,029,000
Finance	Plant and equipment		8,559,000		6,922,000
Total leased assets		$	83,244,000	$	59,951,000
Liabilities:
Current
Operating	Operating lease liabilities	$	6,232,000	$	5,104,000
Finance	Other current liabilities		2,555,000		2,059,000
Long-term
Operating	Long-term operating lease liabilities		71,569,000		61,425,000
Finance	Other liabilities		4,981,000		3,905,000
Total lease liabilities		$	85,337,000	$	72,493,000

Lease cost recognized in the condensed consolidated statements of income is as follows:

	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2020		2019		2020		2019
Lease cost
Operating lease cost	$	2,962,000	$	2,402,000	$	8,522,000	$	6,287,000
Short-term lease cost		373,000		278,000		1,027,000		976,000
Variable lease cost		183,000		133,000		556,000		420,000
Finance lease cost:
Amortization of finance lease assets		458,000		448,000		1,299,000		1,178,000
Interest on finance lease liabilities		98,000		73,000		274,000		214,000
Total lease cost	$	4,074,000	$	3,334,000	$	11,678,000	$	9,075,000

Maturities of lease commitments at December 31, 2020 were as follows:

Maturity of lease liabilities	Operating Leases			Finance Leases			Total
2021 - remaining three months	$	2,793,000		$	743,000		$	3,536,000
2022		10,444,000			2,790,000			13,234,000
2023		9,364,000			2,152,000			11,516,000
2024		8,129,000			1,358,000			9,487,000
2025		8,095,000			931,000			9,026,000
Thereafter		69,261,000			300,000			69,561,000
Total lease payments		108,086,000			8,274,000			116,360,000
Less amount representing interest		(30,285,000	)		(738,000	)		(31,023,000	)
Present value of lease liabilities	$	77,801,000		$	7,536,000		$	85,337,000

Other information about leases is as follows:

	December 31, 2020
Lease term and discount rate
Weighted-average remaining lease term (years):
Finance leases		3.4
Operating leases		11.3
Weighted-average discount rate:
Finance leases		5.5	%
Operating leases		5.9	%