Leases

3 Months Ended

Jun. 30, 2022

Leases [Abstract]

Lessee, Operating Leases

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 of dollars)	June 30, 2022		June 30, 2021		March 31, 2022
Assets
Operating lease right-of-use assets	$	41,099	$	31,281	$	40,243
Liabilities
Current portion of operating lease liabilities	$	10,568	$	7,998	$	10,303
Long-term operating lease liabilities	28,727		20,826		29,617
Total operating lease liabilities	$	39,295	$	28,824	$	39,920

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 of dollars)	2022		2021
Income Statement Location
Cost of goods sold	$	2,704	$	2,578
Selling, general, and administrative expenses	2,503		2,305
Total operating lease costs(1)	$	5,207	$	4,883

(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 of dollars)	June 30, 2022
Maturity of Operating Lease Liabilities
2023 (excluding the three months ended June 30, 2022)	$	9,459
2024	10,714
2025	8,523
2026	5,285
2027	4,075
2028 and thereafter	8,558
Total undiscounted cash flows for operating leases	$	46,614
Less: Imputed interest	(7,319)
Total operating lease liabilities	$	39,295

As of June 30, 2022, 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)	2022			2021
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of operating lease liabilities	$	3,290		$	2,777
Right-of-use assets obtained in exchange for new operating leases	4,527			2,741
Weighted Average Remaining Lease Term (years)	5.31			5.44
Weighted Average Collateralized Incremental Borrowing Rate	5.81		%	4.12		%