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Leases
 12 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases Leases
The Company leases warehouses, distribution centers, office space, retail space and equipment. 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, 2021 and March 31, 2020 is as follows (in thousands):
 ClassificationMarch 31, 2021March 31, 2020
Assets
Operating lease assets (a)
Other assets$22,691 $13,668 
Finance lease assets (b)
Other assets1,100 2,094 
Total leased assets$23,791 $15,762 
Liabilities
Current
Operating (a)
Accrued expenses and other current liabilities$4,292 $3,083 
FinanceCurrent portion of long-term debt and finance lease obligations812 812 
Noncurrent
Operating (a)
Long-term operating lease obligations20,084 11,239 
FinanceLong-term debt and finance lease obligations1,388 2,200 
Total lease liabilities$26,576 $17,334 
___________________
(a) In accordance with ASC 842, $15.7 million of ROU assets related to operating leases were derecognized in the three-month transition period ended March 31, 2019 in connection with the 2019 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 2019 Restructuring Plan in the three-month transition period ended March 31, 2019. See Note 15 Restructuring and other related costs to consolidated financial statements in Part IV, Item 15 “Exhibits, financial statement schedules” under the heading "2019 Restructuring Plan" for the 2019 Restructuring Plan and the gain recorded on lease liabilities derecognized in the year ended March 31, 2020 and the three-month transition period ended March 31, 2019, respectively.
During the year ended March 31, 2021, the Company implemented the 2021 Restructuring Plan to record the charge for impairment of ROA assets related to the manufacturing plant closure in accordance with the equipment lease agreements. The amount was immaterial as of March 31, 2021. See Note 15 Restructuring and other related costs to consolidated financial statements in Part IV, Item 15 “Exhibits, financial statement schedules” under the heading "2021 Restructuring Plan" for further details.
(b) Finance leases are recorded net of accumulated amortization of $3.2 million and $2.9 million as of March 31, 2021 and March 31, 2020, respectively.
For the years ended March 31, 2021, March 31, 2020 and the transition period for the three-month transition period ended March 31, 2019, the components of operating and finance lease costs were as follows (in thousands):
Year ended March 31,Three months ended March 31,
(transition period)
 Classification202120202019
Operating lease cost Selling, general and administrative (“SG&A”) expenses$4,756 $2,950 $1,195 
Gain from extinguishment of lease liabilities Restructuring income— (7,733)(1,866)
Acceleration of rent expenseRestructuring expenses— — 16,106 
Finance lease cost
Amortization of leased assetsSG&A expenses970 996 254 
Interest on lease liabilitiesInterest expense, net137 179 50 
Total lease cost (gain)$5,863 $(3,608)$15,739 
As of March 31, 2021, 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
20224,823 907 5,730 
20234,857 1,208 6,065 
20244,884 235 5,119 
20254,075 — 4,075 
20263,091 — 3,091 
Thereafter4,605 — 4,605 
Total lease payments26,335 2,350 28,685 
Less: Interest1,959 150 
Present value of lease liabilities$24,376 $2,200 
As of March 31, 2021 and March 31, 2020, the weighted average remaining lease term (in years) and discount rate were as follows:
 March 31, 2021March 31, 2020
Weighted-average remaining lease term
Operating leases6.0 years6.8 years
Finance leases2.3 years3.3 years
Weighted-average discount rate
Operating leases2.8 %3.7 %
Finance leases5.2 %5.2 %
Operating cash outflows from operating leases for the years ended March 31, 2021, March 31, 2020 and the three-month transition period ended March 31, 2019 were $3.8 million, $10.4 million and $1.8 million, respectively.
Leases Leases
The Company leases warehouses, distribution centers, office space, retail space and equipment. 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, 2021 and March 31, 2020 is as follows (in thousands):
 ClassificationMarch 31, 2021March 31, 2020
Assets
Operating lease assets (a)
Other assets$22,691 $13,668 
Finance lease assets (b)
Other assets1,100 2,094 
Total leased assets$23,791 $15,762 
Liabilities
Current
Operating (a)
Accrued expenses and other current liabilities$4,292 $3,083 
FinanceCurrent portion of long-term debt and finance lease obligations812 812 
Noncurrent
Operating (a)
Long-term operating lease obligations20,084 11,239 
FinanceLong-term debt and finance lease obligations1,388 2,200 
Total lease liabilities$26,576 $17,334 
___________________
(a) In accordance with ASC 842, $15.7 million of ROU assets related to operating leases were derecognized in the three-month transition period ended March 31, 2019 in connection with the 2019 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 2019 Restructuring Plan in the three-month transition period ended March 31, 2019. See Note 15 Restructuring and other related costs to consolidated financial statements in Part IV, Item 15 “Exhibits, financial statement schedules” under the heading "2019 Restructuring Plan" for the 2019 Restructuring Plan and the gain recorded on lease liabilities derecognized in the year ended March 31, 2020 and the three-month transition period ended March 31, 2019, respectively.
During the year ended March 31, 2021, the Company implemented the 2021 Restructuring Plan to record the charge for impairment of ROA assets related to the manufacturing plant closure in accordance with the equipment lease agreements. The amount was immaterial as of March 31, 2021. See Note 15 Restructuring and other related costs to consolidated financial statements in Part IV, Item 15 “Exhibits, financial statement schedules” under the heading "2021 Restructuring Plan" for further details.
(b) Finance leases are recorded net of accumulated amortization of $3.2 million and $2.9 million as of March 31, 2021 and March 31, 2020, respectively.
For the years ended March 31, 2021, March 31, 2020 and the transition period for the three-month transition period ended March 31, 2019, the components of operating and finance lease costs were as follows (in thousands):
Year ended March 31,Three months ended March 31,
(transition period)
 Classification202120202019
Operating lease cost Selling, general and administrative (“SG&A”) expenses$4,756 $2,950 $1,195 
Gain from extinguishment of lease liabilities Restructuring income— (7,733)(1,866)
Acceleration of rent expenseRestructuring expenses— — 16,106 
Finance lease cost
Amortization of leased assetsSG&A expenses970 996 254 
Interest on lease liabilitiesInterest expense, net137 179 50 
Total lease cost (gain)$5,863 $(3,608)$15,739 
As of March 31, 2021, 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
20224,823 907 5,730 
20234,857 1,208 6,065 
20244,884 235 5,119 
20254,075 — 4,075 
20263,091 — 3,091 
Thereafter4,605 — 4,605 
Total lease payments26,335 2,350 28,685 
Less: Interest1,959 150 
Present value of lease liabilities$24,376 $2,200 
As of March 31, 2021 and March 31, 2020, the weighted average remaining lease term (in years) and discount rate were as follows:
 March 31, 2021March 31, 2020
Weighted-average remaining lease term
Operating leases6.0 years6.8 years
Finance leases2.3 years3.3 years
Weighted-average discount rate
Operating leases2.8 %3.7 %
Finance leases5.2 %5.2 %
Operating cash outflows from operating leases for the years ended March 31, 2021, March 31, 2020 and the three-month transition period ended March 31, 2019 were $3.8 million, $10.4 million and $1.8 million, respectively.