Leases

9 Months Ended

Dec. 31, 2021

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 a loss of $985,000 and a gain of $8,638,000 during the three months ended December 31, 2021 and 2020, respectively, and gains of $64,000 and $12,241,000 during the nine months ended December 31, 2021 and 2020, respectively. These amounts 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, 2021		March 31, 2021
Assets:
Operating	Operating lease assets	$	82,029,000	$	71,513,000
Finance	Plant and equipment		7,745,000		8,852,000
Total leased assets		$	89,774,000	$	80,365,000

Liabilities:
Current
Operating	Operating lease liabilities	$	6,444,000	$	6,439,000
Finance	Other current liabilities		2,420,000		2,640,000
Long-term
Operating	Long-term operating lease liabilities		82,287,000		70,551,000
Finance	Other liabilities		3,741,000		4,995,000
Total lease liabilities		$	94,892,000	$	84,625,000

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

	Three Months Ended December 31,				Nine Months Ended December 31,
	2021		2020		2021		2020
Lease cost
Operating lease cost	$	3,134,000	$	2,962,000	$	9,325,000	$	8,522,000
Short-term lease cost		361,000		373,000		1,112,000		1,027,000
Variable lease cost		225,000		183,000		716,000		556,000
Finance lease cost:
Amortization of finance lease assets		515,000		458,000		1,579,000		1,299,000
Interest on finance lease liabilities		83,000		98,000		269,000		274,000
Total lease cost	$	4,318,000	$	4,074,000	$	13,001,000	$	11,678,000

Maturities of lease commitments at December 31, 2021 by fiscal year were as follows:

Maturity of lease liabilities	Operating Leases			Finance Leases			Total
2022 - remaining three months	$	2,449,000		$	714,000		$	3,163,000
2023		11,460,000			2,490,000			13,950,000
2024		10,014,000			1,688,000			11,702,000
2025		10,078,000			1,194,000			11,272,000
2026		10,347,000			507,000			10,854,000
Thereafter		75,113,000			51,000			75,164,000
Total lease payments		119,461,000			6,644,000			126,105,000
Less amount representing interest		(30,730,000	)		(483,000	)		(31,213,000	)
Present value of lease liabilities	$	88,731,000		$	6,161,000		$	94,892,000

Other information about leases is as follows:

	December 31, 2021			March 31, 2021
Lease term and discount rate
Weighted-average remaining lease term (years):
Finance leases		3.0			3.4
Operating leases		10.6			11.1
Weighted-average discount rate:
Finance leases		5.2	%		5.3	%
Operating leases		5.7	%		5.9	%