Leases

3 Months Ended

Jun. 30, 2020

LEASES

The Company, as a lessee, enters into operating leases for land, buildings, equipment, and vehicles. For all operating leases with terms greater than 12 months and with fixed payment arrangements, a lease liability and corresponding right-of-use asset are recognized in the balance sheet for the term of the lease by calculating the net present value of future lease payments. On the date of lease commencement, the present value of lease liabilities is determined by discounting the future lease payments by the Company’s collateralized incremental borrowing rate, adjusted for the lease term and currency of the lease payments. If a lease contains a renewal option that the Company is reasonably certain to exercise, the Company accounts for the original lease term and expected renewal term in the calculation of the lease liability and right-of-use asset.

The following table sets forth the right-of-use assets and lease liabilities for operating leases included in the Company’s consolidated balance sheet:



(in thousands)	June 30, 2020		June 30, 2019		March 31, 2020

Assets
Operating lease right-of-use assets	$	37,576	$	34,472	$	39,256

Liabilities
Current portion of operating lease liabilities	$	9,914	$	8,938	$	9,823
Long-term operating lease liabilities	24,040		23,098		25,893
Total operating lease liabilities	$	33,954	$	32,036	$	35,716

The following table sets forth the location and amount of operating lease costs included in the Company's consolidated statement of income:



	Three Months Ended June 30,
(in thousands)	2020		2019

Income Statement Location
Cost of goods sold	$	2,911	$	2,617
Selling, general, and administrative expenses	2,190		1,987
Total operating lease costs⁽¹⁾	$	5,101	$	4,604


⁽¹⁾	Includes variable operating lease costs.

The following table reconciles the undiscounted cash flows to the operating lease liabilities in the Company’s consolidated balance sheet:



(in thousands)	June 30, 2020
Maturity of Operating Lease Liabilities
2021 (excluding the three months ended June 30, 2020)	$	8,624
2022	7,628
2023	6,330
2024	4,916
2025	4,050
2026 and thereafter	6,828
Total undiscounted cash flows for operating leases	$	38,376
Less: Imputed interest	(4,422		)
Total operating lease liabilities	$	33,954

As of June 30, 2020, the Company had no leases that have not yet commenced.

The following table sets forth supplemental information related to operating leases:



	Three Months Ended June 30,
(in thousands, except lease term and incremental borrowing rate)	2020			2019

Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of operating lease liabilities	$	3,028		$	3,046
Right-of-use assets obtained in exchange for new operating leases	1,023			468

Weighted Average Remaining Lease Term (years)	5.55			5.98

Weighted Average Collateralized Incremental Borrowing Rate	4.04		%	4.93		%