Leases

9 Months Ended

Dec. 31, 2020

The Company has operating leases for the use of real estate, machinery, and office equipment. The majority of our leases have a lease term of 2 to 5 years; however, we have certain leases with longer terms of up to 30 years. Many of our leases include options to extend the lease for an additional period.

The lease term for all of the Company’s leases includes the non-cancellable period of the lease, plus any additional periods covered by either a Company option to extend the lease that the Company is reasonably certain to exercise, or an option to extend the lease controlled by the lessor that is considered likely to be exercised.

Payments due under the lease contracts include fixed payments plus, for some of our leases, variable payments. Variable payments are typically operating costs associated with the underlying asset and are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed occurs. Our leases do not contain residual value guarantees.

The Company has elected to combine lease and non-lease components as a single component and not to recognize leases on the balance sheet with an initial term of one year or less.

The interest rate implicit in lease contracts is typically not readily determinable, and as such the Company utilizes the incremental borrowing rate to calculate lease liabilities, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

The components of lease cost for the three and nine months ended December 31, 2020 and 2019 are as follows (in thousands):


	Three Months Ended December 31,				Nine Months Ended December 31,
	2020		2019		2020		2019
Operating lease cost	$	547	$	569	$	1,599	$	1,489
Short-term lease cost	50		63		251		318
Variable lease cost	241		97		532		304
Total lease cost	$	838	$	729	$	2,382	$	2,111

Amounts reported in the consolidated balance sheets for leases where we are the lessee as of the quarter ended December 31, 2020 and March 31, 2020 were as follows (in thousands):


	December 31, 2020			March 31, 2020
Operating leases
Operating lease right-of-use assets	$	7,895		$	8,116
Operating lease liabilities	8,533			8,647

Weighted-average remaining lease term
Operating leases	13 years, 10 months			14 years, 4 months

Weighted-average discount rate
Operating leases	4.3		%	4.5		%

Maturities of lease liabilities under non-cancellable leases where we are the lessee as of the quarter ended December 31, 2020 are as follows (in thousands):


	Operating Leases
2021 (excluding the nine months ended December 31, 2020)	$	444
2022	1,634
2023	1,455
2024	1,086
2025	761
2026	546
Thereafter	5,852
Total undiscounted lease payments	$	11,778
Less: Interest	(2,719)
Less: Discount	(526)
Total lease liabilities	$	8,533