Leases

3 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

Leases

The Company has operating leases for the use of real estate, machinery, and office equipment. The majority of our leases have a 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 months ended June 30, 2024 and 2023 are as follows (in thousands):

	Three Months Ended June 30,
	2024		2023
Operating lease cost	$	668	$	683
Short-term lease cost	294		85
Variable lease cost	226		185
Total lease cost	$	1,188	$	953

Amounts reported in the consolidated balance sheets for leases where we are the lessee as of June 30, 2024 and March 31, 2024 were as follows (in thousands):

	June 30, 2024			March 31, 2024
Operating leases
Operating lease ROU assets	$	13,048		$	11,376
Operating lease liabilities	$	13,986		$	12,276
Weighted-average remaining lease term
Operating leases	11 years			12 years, 1 month
Weighted-average discount rate
Operating leases	5.31		%	5.09		%

Maturities of lease liabilities under non-cancellable leases where we are the lessee as of June 30, 2024 are as follows (in thousands):

	Operating Leases
2025 (excluding the three months ended June 30, 2024)	$	2,044
2026	2,683
2027	2,535
2028	1,909
2029	1,197
2030	745
Thereafter	7,669
Total undiscounted lease payments	18,782
Interest	(4,796)
Total lease liabilities	$	13,986