Leases

12 Months Ended

Mar. 31, 2026

The Company leases manufacturing facilities, distribution centers, office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from 1 to 16 years. At contract inception, the Company reviews the terms of the arrangement to determine if the contract is or contains a lease. Guidance in Topic 842 is used to evaluate whether the contract has an identified asset; if the Company has the right to obtain substantially all economic benefits from the asset; and if it has the right to direct the use of the underlying asset. When determining if a contract has an identified asset, the Company considers both explicit and implicit assets, and whether the supplier has the right to substitute the asset. When determining if the Company has the right to obtain substantially all economic benefits from the asset, the Company considers the primary outputs of the identified asset throughout the period of use and determines if it receives greater than 90% of those benefits. When determining if it has the right to direct the use of an underlying asset, the Company considers if it has the right to direct how and for what purpose the asset is used throughout the period of use and if it controls the decision-making rights over the asset.

Lease terms may include options to extend or terminate the lease. The Company exercises its judgment to determine the term of those leases when extension or termination options are present and include such options in the calculation of the lease term when it is reasonably certain that the Company will exercise those options.

The Company has elected to include both lease and non-lease components in the determination of lease payments for all asset classes. Payments made to a lessor for items such as taxes, insurance, common area maintenance, or other costs commonly referred to as executory costs, are also included in lease payments if they are fixed. The fixed portion of these payments are included in the calculation of the lease liability, while any variable portion would be recognized as variable lease expenses, when incurred. Variable payments made to third parties for these, or similar costs, such as utilities, are not included in the calculation of lease payments.

Both finance and operating leases are reflected as liabilities on the commencement date of the lease based on the present value of the lease payments to be made over the lease term. As most of the leases do not provide an implicit rate, the Company has exercised judgment in electing the incremental borrowing rate based on the information available when the lease commences to determine the present value of future payments. Right-of-use assets are valued at the initial measurement of the lease liability, plus any initial direct costs or rent prepayments and reduced by any lease incentives and any deferred lease payments.

Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense includes depreciation, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method.

Short term leases with an initial term of 12 months or less are not presented on the balance sheet and expense is recognized as incurred. The current and non-current portion of operating lease liabilities are reflected in accrued expenses and other liabilities, respectively, on the consolidated balance sheets. The right-of use assets relating to operating and finance leases are reflected in other assets and property, plant and equipment, respectively, on the consolidated balance sheets.

The following table presents lease assets and liabilities and their balance sheet classification:


	Classification	As of March 31, 2026		As of March 31, 2025
Operating Leases:
Right-of-use assets	Other assets	$	70,655	$	83,635
Operating lease current liabilities	Accrued expenses	24,976		22,357
Operating lease non-current liabilities	Other liabilities	52,377		67,033
Finance Leases:
Right-of-use assets	Property, plant, and equipment, net	$	3,346	$	915
Finance lease current liabilities	Current portion of finance leases	998		265
Finance lease non-current liabilities	Finance leases	2,350		592

The components of lease expense for the fiscal years ended March 31, 2026 and March 31, 2025 were as follows:


	Classification	March 31, 2026		March 31, 2025
Operating Leases:
Operating lease cost	Operating expenses	$	29,232	$	27,040
Variable lease cost	Operating expenses	6,905		6,338
Short term lease cost	Operating expenses	15,733		16,573
Finance Leases:
Depreciation	Operating expenses	$	911	$	282
Interest expense	Interest expense	158		66
Total		$	52,939	$	50,299

The following table presents the weighted average lease term and discount rates for leases as of March 31, 2026 and March 31, 2025:

March 31, 2026

March 31, 2025

Operating Leases:

Weighted average remaining lease term (years)

4.4 years

5.1 years

Weighted average discount rate

5.66%

6.06%

Finance Leases:

Weighted average remaining lease term (years)

3.6 years

3.2 years

Weighted average discount rate

5.29%

7.07%

The following table presents future payments due under leases reconciled to lease liabilities as of March 31, 2026:


	Finance Leases		Operating Leases
Year ended March 31,
2027	$	1,141	$	28,942
2028	1,052		24,058
2029	754		17,047
2030	483		9,222
2031	215		5,156
Thereafter	—		6,727
Total undiscounted lease payments	3,645		91,152
Present value discount	296		13,798
Lease liability	$	3,349	$	77,354

The following table presents supplemental disclosures of cash flow information related to leases for the fiscal years ended March 31, 2026 and March 31, 2025:


	March 31, 2026		March 31, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	156	$	64
Operating cash flows from operating leases	29,915		26,022
Financing cash flows from finance leases	878		268
Supplemental non-cash information on lease liabilities arising from right-of-use assets:
Right-of-use assets obtained in exchange for new finance lease liabilities	$	2,338	$	302
Right-of-use assets obtained in exchange for new operating lease liabilities	13,651		28,184

Leases

The following table presents lease assets and liabilities and their balance sheet classification:


	Classification	As of March 31, 2026		As of March 31, 2025
Operating Leases:
Right-of-use assets	Other assets	$	70,655	$	83,635
Operating lease current liabilities	Accrued expenses	24,976		22,357
Operating lease non-current liabilities	Other liabilities	52,377		67,033
Finance Leases:
Right-of-use assets	Property, plant, and equipment, net	$	3,346	$	915
Finance lease current liabilities	Current portion of finance leases	998		265
Finance lease non-current liabilities	Finance leases	2,350		592

The components of lease expense for the fiscal years ended March 31, 2026 and March 31, 2025 were as follows:


	Classification	March 31, 2026		March 31, 2025
Operating Leases:
Operating lease cost	Operating expenses	$	29,232	$	27,040
Variable lease cost	Operating expenses	6,905		6,338
Short term lease cost	Operating expenses	15,733		16,573
Finance Leases:
Depreciation	Operating expenses	$	911	$	282
Interest expense	Interest expense	158		66
Total		$	52,939	$	50,299

The following table presents the weighted average lease term and discount rates for leases as of March 31, 2026 and March 31, 2025:

March 31, 2026

March 31, 2025

Operating Leases:

Weighted average remaining lease term (years)

4.4 years

5.1 years

Weighted average discount rate

5.66%

6.06%

Finance Leases:

Weighted average remaining lease term (years)

3.6 years

3.2 years

Weighted average discount rate

5.29%

7.07%

The following table presents future payments due under leases reconciled to lease liabilities as of March 31, 2026:


	Finance Leases		Operating Leases
Year ended March 31,
2027	$	1,141	$	28,942
2028	1,052		24,058
2029	754		17,047
2030	483		9,222
2031	215		5,156
Thereafter	—		6,727
Total undiscounted lease payments	3,645		91,152
Present value discount	296		13,798
Lease liability	$	3,349	$	77,354

The following table presents supplemental disclosures of cash flow information related to leases for the fiscal years ended March 31, 2026 and March 31, 2025:


	March 31, 2026		March 31, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	156	$	64
Operating cash flows from operating leases	29,915		26,022
Financing cash flows from finance leases	878		268
Supplemental non-cash information on lease liabilities arising from right-of-use assets:
Right-of-use assets obtained in exchange for new finance lease liabilities	$	2,338	$	302
Right-of-use assets obtained in exchange for new operating lease liabilities	13,651		28,184