The Company’s lease arrangements generally include real estate (manufacturing facilities, sales offices, distribution centers, warehouses), vehicles, and equipment. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. At lease commencement, the Company evaluates whether the arrangement is a finance or operating lease, and accounts for it accordingly. Operating leases are included in other assets, other current liabilities, and other liabilities on the Company’s Consolidated Balance Sheet. Finance leases are included in net property, plant, and equipment, current portion of long-term debt and finance lease obligation, and the remaining balance is recorded within Term loan, Senior Secured Notes, AR securitization facility and finance lease obligations on the Consolidated Balance Sheet.

Leases with a term greater than one year are recognized on the Consolidated Balance Sheet as right-of-use (“ROU”) assets, lease obligations, and, if applicable, long-term lease obligations in the financial statement line items above. The Company has elected not to recognize leases with terms of one year or less on the Consolidated Balance Sheet. Lease obligations and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. As the interest rate implicit in lease contracts is generally not readily determinable, the Company uses its estimated incremental borrowing rate in determining the present value of lease payments. The incremental borrowing rate is determined based on the Company’s recent debt issuances, lease term, and the currency in which lease payments are made. The Company recognizes lease expense on a straight-line basis over the lease term. Additionally, because the Company has elected to not separate lease and non-lease components, variable costs also include payments to the landlord for common area maintenance, real estate taxes, insurance, and other operating expenses.

The Company's leases have lease terms ranging from 1 to 23 years, some of which include options to extend or terminate the lease. The exercise of lease renewal options is at the Company’s sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term. The Company’s lease agreements do not contain material residual value guarantees or any material restrictive covenants. The Company recorded a finance lease for a manufacturing facility in Hartland, WI that has a 23 year lease term which terminates in 2035 as a result of the Dorner acquisition. As of March 31, 2026, the Company does not have any significant additional leases that have not yet commenced.


	March 31,
	2026		2025
Operating leases:
Other assets (1)	$	88,416	$	59,506

Accrued liabilities	31,523		9,961
Other non-current liabilities	64,195		59,735
Total operating liabilities	$	95,718	$	69,696

Finance leases:
Net property, plant, and equipment	$	9,594	$	10,595

Current portion of long-term debt and finance lease obligation	812		739
Term loan, Senior Secured Notes, AR securitization facility and finance lease obligations	10,737		11,528
Total finance liabilities	$	11,549	$	12,267

Operating lease expense of $16,224,000, $14,433,000 and $12,550,000 for the fiscal years ending March 31, 2026, 2025, and 2024, respectively, is included in Income from operations on the Consolidated Statements of Operations. Short-term lease expense, sublease income, and variable lease expenses are not material for the fiscal year ending March 31, 2026, 2025, and 2024, respectively. Finance lease expense of $1,021,000 and $1,001,000 for fiscal years ending March 31, 2026 and 2025, is included in Income from operations on the Consolidated Statements of Operations, and $541,000 and $566,000 and is included in Interest and debt expense for the fiscal years ending March 31, 2026 and 2025, on the Company's Consolidated Statements of Operations related to the finance lease.


Year:	Operating Leases		Finance Leases
2027	$	23,842	1,312
2028	21,101		1,351
2029	17,246		1,392
2030	13,848		1,433
2031	7,619		1,476
Thereafter	33,917		7,355
Total undiscounted lease payments	$	117,573	$	14,319
Less: imputed interest	$	21,855	$	2,770
Present value of lease liabilities	$	95,718	$	11,549


	Year ended March 31, 2026		Year ended March 31, 2025		Year ended March 31, 2024
Cash paid for amounts included in the measurement of operating lease liabilities	$	16,550	$	12,014	$	9,454
Cash paid for amounts included in the measurement of finance lease liabilities	$	1,300	$	1,237	$	1,200
ROU assets obtained in exchange for new operating lease liabilities	$	2,375	$	8,173	$	22,506