We lease certain real estate, buildings, and equipment, including railcars and barges. Certain of these leases contain escalations of rent over the term of the lease, as well as options for us to extend the term of the lease at the end of the original term. These extensions range from periods of one year to 20 years. Our lease agreements do not contain material residual value guarantees or material restrictive covenants. In calculating the present value of future minimum lease payments, we use the rate implicit in the lease if it can be determined. Otherwise, we use our incremental borrowing rate in effect at the commencement of the lease to determine the present value of the future minimum lease payments. Additionally, we lease certain equipment under short-term leases with initial terms of less than 12 months, which are not recorded on the balance sheet.

Lease expense for our operating and short-term leases is as follows.


	For the Three Months Ended June 30,

	2026		2025

	(dollars in thousands)


Operating Lease Cost	$	2,173	$	2,199


Short-Term Lease Cost		684		623


Total Lease Cost	$	2,857	$	2,822

The Right-of-Use Assets and Lease Liabilities are reflected on our Balance Sheet as follows.


	June 30,		March 31,
	2026		2026
	(dollars in thousands)


Operating Leases:


Operating Lease Right-of-Use Assets	$	31,321	$	29,346





Current Operating Lease Liabilities	$	4,684	$	4,144


Noncurrent Operating Lease Liabilities		33,712		32,559


Total Operating Lease Liabilities	$	38,396	$	36,703

Future payments for operating leases are as follows.


	Amount

Fiscal Year	(dollars in thousands)


2027 (remaining nine months)	$	4,444


2028		5,366


2029		4,805


2030		4,479


2031		4,042


Thereafter		26,316


Total Lease Payments	$	49,452


Less: Imputed Interest		(11,056	)


Present Value of Lease Liabilities	$	38,396





Weighted-Average Remaining Lease Term (in years)		11.1


Weighted-Average Discount Rate		4.47	%