Leases

6 Months Ended

Sep. 30, 2023

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 operations. 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 $1,948,000 and $1,041,000 during the three months ended September 30, 2023 and 2022, respectively. During the six months ended September 30, 2023 and 2022, the Company recorded a gain of $1,822,000 and a loss of $1,021,000, respectively, in connection with the remeasurement of these leases. These amounts are included in foreign exchange impact of lease liabilities and forward contracts in the condensed consolidated statements of operations.

Balance sheet information for leases is as follows:

Leases	Classification	September 30, 2023		March 31, 2023
Assets:
Operating	Operating lease assets	$	84,881,000	$	87,619,000
Finance	Plant and equipment		4,604,000		5,549,000
Total leased assets		$	89,485,000	$	93,168,000

Liabilities:
Current
Operating	Operating lease liabilities	$	8,737,000	$	8,767,000
Finance	Other current liabilities		1,693,000		1,851,000
Long-term
Operating	Long-term operating lease liabilities		75,698,000		79,318,000
Finance	Other liabilities		1,972,000		2,742,000
Total lease liabilities		$	88,100,000	$	92,678,000

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

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Lease cost
Operating lease cost	$	3,761,000	$	3,130,000	$	7,503,000	$	6,295,000
Short-term lease cost		350,000		559,000		643,000		1,013,000
Variable lease cost		146,000		179,000		332,000		364,000
Finance lease cost:
Amortization of finance lease assets		391,000		489,000		794,000		1,028,000
Interest on finance lease liabilities		57,000		64,000		119,000		132,000
Total lease cost	$	4,705,000	$	4,421,000	$	9,391,000	$	8,832,000

Maturities of lease commitments at September 30, 2023 by fiscal year were as follows:

Maturity of lease liabilities	Operating Leases			Finance Leases			Total
2024 - remaining six months	$	6,959,000		$	996,000		$	7,955,000
2025		12,457,000			1,576,000			14,033,000
2026		12,154,000			844,000			12,998,000
2027		10,962,000			353,000			11,315,000
2028		10,871,000			194,000			11,065,000
Thereafter		54,475,000			2,000			54,477,000
Total lease payments		107,878,000			3,965,000			111,843,000
Less amount representing interest		(23,443,000	)		(300,000	)		(23,743,000	)
Present value of lease liabilities	$	84,435,000		$	3,665,000		$	88,100,000

Other information about leases is as follows:

	September 30, 2023			March 31, 2023
Lease term and discount rate
Weighted-average remaining lease term (years):
Finance leases		2.6			2.9
Operating leases		8.7			9.0
Weighted-average discount rate:
Finance leases		6.0	%		5.9	%
Operating leases		5.8	%		5.8	%