Leases Leases (Notes)

3 Months Ended

Jun. 30, 2020

15. 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 right-of-use ("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.

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.

The following table illustrates the balance sheet classification for ROU assets and lease liabilities (in thousands):


	Balance sheet classification	June 30, 2020		March 31, 2020
Assets	Other assets	$	37,086	$	38,125

Current	Accrued liabilities	7,087		6,924
Non-current	Other non current liabilities	30,548		31,629
Total liabilities		$	37,635	$	38,553

Operating lease expense of $2,233,000 and $2,313,000 for the three months ending June 30, 2020 and June 30, 2019, respectively, 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 months ending June 30, 2020 and June 30, 2019.

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


	Three months ended
	June 30, 2020		June 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	2,160	$	2,250
ROU assets obtained in exchange for new operating lease liabilities	$	619	$	260