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Leases | 12 Months Ended
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Mar. 31, 2020
Leases [Abstract] |
Leases | Leases The Company leases warehouses, distribution centers, office space, retail space and equipment. Prior to the Restructuring Plan, the Company also leased retail store locations. The majority of the Company's leases include one or more options to renew, with renewal terms that can extend the lease term for up to five years. The exercise of lease renewal options is at the Company's sole discretion and such renewal options are included in the lease term if they are reasonably certain to be exercised. Certain leases also include options to purchase the leased asset. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's equipment leases are finance leases of assets used to operate its distribution centers in Ontario, California and Columbus, Ohio. Significant judgment is required to determine whether commercial contracts contain a lease for purposes of ASC 842. The discount rate used in measuring lease liabilities is generally based on the interest rate on the Company’s revolving line of credit, assuming sufficient unused capacity exists at the time the lease liability is measured. A reconciliation of the balance sheet line items that were impacted or created as a result of the Company’s adoption of ASC 842 as of March 31, 2020 and March 31, 2019 is as follows (in thousands):
|  | Classification |  | March 31, 2020 |  | March 31, 2019
Assets |  |  |  |  |  |
Operating lease assets (a) |  | Other assets |  | $ | 13,668 |  |  | $ | 4,445 |
Finance lease assets (b) |  | Other assets |  | 2,094 |  |  | 3,089 |
Total leased assets |  |  |  | $ | 15,762 |  |  | $ | 7,534 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating (a) |  | Accrued expenses and other current liabilities |  | $ | 3,083 |  |  | $ | 4,172 |
Finance |  | Current portion of long-term debt and finance lease obligations |  | 812 |  |  | 771 |
Noncurrent |  |  |  |  |  |
Operating (a) |  | Long-term operating lease obligations |  | 11,239 |  |  | 15,898 |
Finance |  | Long-term debt and finance lease obligations |  | 2,200 |  |  | 3,012 |
Total lease liabilities |  |  |  | $ | 17,334 |  |  | $ | 23,853 |
___________________ (a) In accordance with ASC 842, $15.7 million of ROU assets related to operating leases were derecognized in the transition period for the three months ended March 31, 2019 in connection with the Restructuring Plan. Pursuant to ASC 842, each related lease liability is derecognized only after the Company is released from that liability. The Company recognized a gain of $1.9 million in restructuring expenses related to the derecognition of lease liabilities in connection with the Restructuring Plan in the transition period for the three months ended March 31, 2019. See Note 15, “Restructuring and other related costs” for further details on the Restructuring Plan and the gain recorded on lease liabilities derecognized in the year ended March 31, 2020 and the transition period for the three months ended March 31, 2019, respectively. (b) Finance leases are recorded net of accumulated amortization of $2.9 million and $1.9 million as of March 31, 2020 and March 31, 2019, respectively. For the year ended March 31, 2020 and the transition period for the three months ended March 31, 2019, the components of operating and finance lease costs were as follows (in thousands):
|  | Classification |  | Twelve months ended March 31, 2020 |  | Three months ended March 31, 2019 (transition period)
Operating lease cost |  | Selling, general and administrative (“SG&A”) expenses |  | $ | 2,950 |  |  | $ | 1,195 |
Gain from extinguishment of lease liabilities |  | Restructuring expense (income) |  | (7,733 | ) |  | (1,866 | )
Acceleration of rent expense |  | Restructuring expenses |  | — |  |  | 16,106 |
Finance lease cost |  |  |  |  |  |
Amortization of leased assets |  | SG&A expenses |  | 996 |  |  | 254 |
Interest on lease liabilities |  | Interest expense, net |  | 179 |  |  | 50 |
Total lease (gain) cost |  |  |  | $ | (3,608 | ) |  | $ | 15,739 |
As of March 31, 2020, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands):
|  | Operating leases |  | Finance leases |  | Total
2021 |  | 3,540 |  |  | 950 |  |  | 4,490 |
2022 |  | 2,350 |  |  | 907 |  |  | 3,257 |
2023 |  | 1,924 |  |  | 1,208 |  |  | 3,132 |
2024 |  | 1,962 |  |  | 235 |  |  | 2,197 |
2025 |  | 1,547 |  |  | — |  |  | 1,547 |
Thereafter |  | 4,748 |  |  | — |  |  | 4,748 |
Total lease payments |  | 16,071 |  |  | 3,300 |  |  | 19,371 |
Less: Interest |  | 1,749 |  |  | 288 |  |  |
Present value of lease liabilities |  | $ | 14,322 |  |  | $ | 3,012 |  |  |
As of December 31, 2018 the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 840 were as follows (in thousands):
Year ending December 31, |  |  |
2019 |  | $ | 5,375 |
2020 |  | 5,210 |
2021 |  | 3,876 |
2022 |  | 2,832 |
2023 |  | 2,858 |
2024 and thereafter |  | 7,167 |
Total |  | $ | 27,318 |
For leases commencing prior to January 1, 2019, minimum lease payments exclude payments to landlords for real estate taxes and common area maintenance. These payments can be either fixed or variable, depending on the lease. As of March 31, 2020 and March 31, 2019, the weighted average remaining lease term (in years) and discount rate were as follows:
|  | March 31, 2020 |  | March 31, 2019
Weighted-average remaining lease term |  |  |  |
Operating leases |  | 6.8 years |  |  | 5.9 years |
Finance leases |  | 3.3 years |  |  | 4.3 years |
Weighted-average discount rate |  |  |  |
Operating leases |  | 3.7 | % |  | 4.8 | %
Finance leases |  | 5.2 | % |  | 5.2 | %
Operating cash outflows from operating leases for the year ended March 31, 2020 and the transition period for the three months ended March 31, 2019 were $10.4 million and $1.8 million, respectively.
Leases | Leases The Company leases warehouses, distribution centers, office space, retail space and equipment. Prior to the Restructuring Plan, the Company also leased retail store locations. The majority of the Company's leases include one or more options to renew, with renewal terms that can extend the lease term for up to five years. The exercise of lease renewal options is at the Company's sole discretion and such renewal options are included in the lease term if they are reasonably certain to be exercised. Certain leases also include options to purchase the leased asset. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's equipment leases are finance leases of assets used to operate its distribution centers in Ontario, California and Columbus, Ohio. Significant judgment is required to determine whether commercial contracts contain a lease for purposes of ASC 842. The discount rate used in measuring lease liabilities is generally based on the interest rate on the Company’s revolving line of credit, assuming sufficient unused capacity exists at the time the lease liability is measured. A reconciliation of the balance sheet line items that were impacted or created as a result of the Company’s adoption of ASC 842 as of March 31, 2020 and March 31, 2019 is as follows (in thousands):
|  | Classification |  | March 31, 2020 |  | March 31, 2019
Assets |  |  |  |  |  |
Operating lease assets (a) |  | Other assets |  | $ | 13,668 |  |  | $ | 4,445 |
Finance lease assets (b) |  | Other assets |  | 2,094 |  |  | 3,089 |
Total leased assets |  |  |  | $ | 15,762 |  |  | $ | 7,534 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Operating (a) |  | Accrued expenses and other current liabilities |  | $ | 3,083 |  |  | $ | 4,172 |
Finance |  | Current portion of long-term debt and finance lease obligations |  | 812 |  |  | 771 |
Noncurrent |  |  |  |  |  |
Operating (a) |  | Long-term operating lease obligations |  | 11,239 |  |  | 15,898 |
Finance |  | Long-term debt and finance lease obligations |  | 2,200 |  |  | 3,012 |
Total lease liabilities |  |  |  | $ | 17,334 |  |  | $ | 23,853 |
___________________ (a) In accordance with ASC 842, $15.7 million of ROU assets related to operating leases were derecognized in the transition period for the three months ended March 31, 2019 in connection with the Restructuring Plan. Pursuant to ASC 842, each related lease liability is derecognized only after the Company is released from that liability. The Company recognized a gain of $1.9 million in restructuring expenses related to the derecognition of lease liabilities in connection with the Restructuring Plan in the transition period for the three months ended March 31, 2019. See Note 15, “Restructuring and other related costs” for further details on the Restructuring Plan and the gain recorded on lease liabilities derecognized in the year ended March 31, 2020 and the transition period for the three months ended March 31, 2019, respectively. (b) Finance leases are recorded net of accumulated amortization of $2.9 million and $1.9 million as of March 31, 2020 and March 31, 2019, respectively. For the year ended March 31, 2020 and the transition period for the three months ended March 31, 2019, the components of operating and finance lease costs were as follows (in thousands):
|  | Classification |  | Twelve months ended March 31, 2020 |  | Three months ended March 31, 2019 (transition period)
Operating lease cost |  | Selling, general and administrative (“SG&A”) expenses |  | $ | 2,950 |  |  | $ | 1,195 |
Gain from extinguishment of lease liabilities |  | Restructuring expense (income) |  | (7,733 | ) |  | (1,866 | )
Acceleration of rent expense |  | Restructuring expenses |  | — |  |  | 16,106 |
Finance lease cost |  |  |  |  |  |
Amortization of leased assets |  | SG&A expenses |  | 996 |  |  | 254 |
Interest on lease liabilities |  | Interest expense, net |  | 179 |  |  | 50 |
Total lease (gain) cost |  |  |  | $ | (3,608 | ) |  | $ | 15,739 |
As of March 31, 2020, the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 842 are as follows (in thousands):
|  | Operating leases |  | Finance leases |  | Total
2021 |  | 3,540 |  |  | 950 |  |  | 4,490 |
2022 |  | 2,350 |  |  | 907 |  |  | 3,257 |
2023 |  | 1,924 |  |  | 1,208 |  |  | 3,132 |
2024 |  | 1,962 |  |  | 235 |  |  | 2,197 |
2025 |  | 1,547 |  |  | — |  |  | 1,547 |
Thereafter |  | 4,748 |  |  | — |  |  | 4,748 |
Total lease payments |  | 16,071 |  |  | 3,300 |  |  | 19,371 |
Less: Interest |  | 1,749 |  |  | 288 |  |  |
Present value of lease liabilities |  | $ | 14,322 |  |  | $ | 3,012 |  |  |
As of December 31, 2018 the aggregate future minimum lease payments under non-cancellable leases presented in accordance with ASC 840 were as follows (in thousands):
Year ending December 31, |  |  |
2019 |  | $ | 5,375 |
2020 |  | 5,210 |
2021 |  | 3,876 |
2022 |  | 2,832 |
2023 |  | 2,858 |
2024 and thereafter |  | 7,167 |
Total |  | $ | 27,318 |
For leases commencing prior to January 1, 2019, minimum lease payments exclude payments to landlords for real estate taxes and common area maintenance. These payments can be either fixed or variable, depending on the lease. As of March 31, 2020 and March 31, 2019, the weighted average remaining lease term (in years) and discount rate were as follows:
|  | March 31, 2020 |  | March 31, 2019
Weighted-average remaining lease term |  |  |  |
Operating leases |  | 6.8 years |  |  | 5.9 years |
Finance leases |  | 3.3 years |  |  | 4.3 years |
Weighted-average discount rate |  |  |  |
Operating leases |  | 3.7 | % |  | 4.8 | %
Finance leases |  | 5.2 | % |  | 5.2 | %
Operating cash outflows from operating leases for the year ended March 31, 2020 and the transition period for the three months ended March 31, 2019 were $10.4 million and $1.8 million, respectively.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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