Leases (Tables)

9 Months Ended

Dec. 31, 2019

Operating Leased Assets [Line Items]

Lease, Cost [Table Text Block]

The following table presents the weighted average remaining lease term and discount rate:

	December 31, 2019
Weighted-average remaining lease term (in years)	7.05
Weighted-average discount rate	4.13	%

Amounts recognized on the financial statements

The following table illustrates the balance sheet classification for ROU assets and lease liabilities as of December 31, 2019 (in thousands):

	Balance sheet classification	December 31, 2019
Assets	Other assets	$	37,729
Current	Accrued liabilities	7,098
Non-current	Other non current liabilities	30,823
Total liabilities		$	37,921

Lessee, Operating Leases [Text Block]

15.    Leases

Transition

In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASC 842"). ASC 842 requires the recognition of lease right-of-use ("ROU") assets and lease liabilities by lessees for those leases classified as operating leases and additional disclosures regarding the nature of the Company's leases, significant judgments made, and amounts recognized in the financial statements relating to those leases. The Company adopted this standard effective April 1, 2019 under the modified retrospective method whereas comparative period information is not restated. In addition, the Company elected the package of practical expedients which permits the Company to not reassess whether existing contracts are or contain leases, to not reassess the lease classification of any existing leases, and to not reassess initial direct costs for any existing leases. The Company also elected the practical expedient to not separate lease and non-lease components for all classes of underlying assets and made an accounting

policy election to not record leases with an initial term of twelve months or less on the balance sheet for all classes of underlying assets.

As a result of the adoption of ASC 842, the Company recognized an initial operating lease ROU assets of $35,553,000 on April 1, 2019 with a corresponding lease liability of the same amount. The standard did not materially impact the Company's Condensed Consolidated Statement of Operations or the Condensed Consolidated Statements of Cash Flows for the nine months ending December 31, 2019.

Nature of leases

The Company's leases are classified as operating leases and consist of manufacturing facilities, sales offices, distribution centers, warehouses, vehicles, and equipment. For leases with terms greater than twelve months, at lease commencement the Company recognizes a ROU asset and a lease liability. The initial lease liability is recognized at the present value of remaining lease payments over the lease term. Leases with an initial term of twelve months or less are not recorded on the Company's Condensed Consolidated Balance Sheet. The Company recognizes lease expense for operating leases on a straight-line basis over the lease term. Additionally, because the Company has elected to not separate lease and non-lease components, variable costs also include payments to the landlord for common area maintenance, real estate taxes, insurance, and other operating expenses.

The Company's leases have lease terms ranging from 1 to 15 years, some of which include options to extend or terminate the lease. The exercise of lease renewal options is at the Company’s sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term. The Company’s lease agreements do not contain material residual value guarantees or any material restrictive covenants.

As of December 31, 2019, the Company does not have any significant additional operating leases that have not yet commenced.

Significant assumptions or judgments

The discount rate implicit within each lease is generally not readily determinable, therefore, the Company uses its estimated incremental borrowing rate in determining the present value of lease payments. The incremental borrowing rate is determined based on the Company’s recent debt issuances, lease term, and the currency in which lease payments are made.

The following table presents the weighted average remaining lease term and discount rate:

	December 31, 2019
Weighted-average remaining lease term (in years)	7.05
Weighted-average discount rate	4.13	%

Amounts recognized on the financial statements

The following table illustrates the balance sheet classification for ROU assets and lease liabilities as of December 31, 2019 (in thousands):

	Balance sheet classification	December 31, 2019
Assets	Other assets	$	37,729
Current	Accrued liabilities	7,098
Non-current	Other non current liabilities	30,823
Total liabilities		$	37,921

Operating lease expense of $2,299,000 and $6,833,000 for the three and nine months ending December 31, 2019 is included in income from operations on the Condensed Consolidated Statements of Operations. Short-term lease expense, sublease income, and variable lease expenses are not material for the three and nine months ending December 31, 2019.

Other lease disclosures

At December 31, 2019, the maturities of operating lease liabilities were as follows (in thousands):

Year:	December 31, 2019
Remainder of 2020	$	2,242
2021	8,097
2022	6,705
2023	6,031
2024	4,687
Thereafter	16,498
Total undiscounted lease payments	$	44,260
Less: imputed interest	$	6,339
Present value of lease liabilities	$	37,921

Supplemental cash flow information related to operating leases is as follows (in thousands):

	Nine months ended December 31, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	6,636
ROU assets obtained in exchange for new operating lease liabilities	$	7,808

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Year:	December 31, 2019
Remainder of 2020	$	2,242
2021	8,097
2022	6,705
2023	6,031
2024	4,687
Thereafter	16,498
Total undiscounted lease payments	$	44,260
Less: imputed interest	$	6,339
Present value of lease liabilities	$	37,921

Lessee, Operating Lease, Disclosure [Table Text Block]

Supplemental cash flow information related to operating leases is as follows (in thousands):

	Nine months ended December 31, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	6,636
ROU assets obtained in exchange for new operating lease liabilities	$	7,808