XML 28 R18.htm IDEA: XBRL DOCUMENT
v3.21.2

Leases | 6 Months Ended
--- | ---
Sep. 30, 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 September 30, 2021, March 31, 2021 and September 30, 2020 were as follows (in thousands):
|  | Classification |  | September 30, 2021 |  | March 31, 2021 |  | September 30, 2020
Assets |  |  |  |  |  |  |  |
Operating lease assets |  | Other assets |  | $ | 20,270 |  |  | $ | 22,691 |  |  | $ | 21,548 |
Finance lease assets (a) |  | Other assets |  | 874 |  |  | 1,100 |  |  | 1,599 |
Total leased assets |  |  |  | $ | 21,144 |  |  | $ | 23,791 |  |  | $ | 23,147 |
Liabilities |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |
Operating |  | Accrued expenses and other current liabilities |  | $ | 4,233 |  |  | $ | 4,292 |  |  | $ | 3,374 |
Finance |  | Current portion of long-term debt and finance lease obligations |  | 774 |  |  | 812 |  |  | 812 |
Noncurrent |  |  |  |  |  |  |  |
Operating |  | Long-term operating lease obligations |  | 17,919 |  |  | 20,084 |  |  | 19,185 |
Finance |  | Long-term debt and finance lease obligations |  | 1,029 |  |  | 1,388 |  |  | 1,799 |
Total lease liabilities |  |  |  | $ | 23,955 |  |  | $ | 26,576 |  |  | $ | 25,170 |
_____________________ (a) Finance leases are recorded net of accumulated amortization of $2.8 million, $3.2 million and $3.4 million as of September 30, 2021, March 31, 2021 and September 30, 2020, respectively. For the three and six months ended September 30, 2021 and September 30, 2020, the components of operating and finance lease costs were as follows (in thousands):
|  |  |  |  |  | Three months ended September 30, |  | Six months ended September 30,
|  | Classification |  | 2021 |  | 2020 |  | 2021 |  | 2020
Operating lease cost |  | Selling, general and administrative (“SG&A”) expenses |  | $ | 1,242 |  |  | $ | 1,046 |  |  | $ | 2,312 |  |  | $ | 2,126 |
Finance lease cost |  |  |  |  |  |  |  |  |  |
Amortization of leased assets |  | SG&A expenses |  | 105 |  |  | 247 |  |  | 226 |  |  | 495 |
Interest on lease liabilities |  | Interest expense, net |  | 15 |  |  | 36 |  |  | 39 |  |  | 74 |
Total lease cost |  |  |  | $ | 1,362 |  |  | $ | 1,329 |  |  | $ | 2,577 |  |  | $ | 2,695 |
As of September 30, 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
Remainder of Fiscal 2022 |  | $ | 2,322 |  |  | $ | 408 |  |  | $ | 2,730 |
2023 |  | 4,864 |  |  | 816 |  |  | 5,680 |
2024 |  | 4,890 |  |  | 582 |  |  | 5,472 |
2025 |  | 4,075 |  |  | 58 |  |  | 4,133 |
2026 |  | 3,091 |  |  | — |  |  | 3,091 |
Thereafter |  | 4,606 |  |  | — |  |  | 4,606 |
Total lease payments |  | 23,848 |  |  | 1,864 |  |  | 25,712 |
Less: Interest |  | 1,696 |  |  | 61 |  |  | 1,757 |
Present value of lease liabilities |  | $ | 22,152 |  |  | $ | 1,803 |  |  | $ | 23,955 |
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 September 30, 2021 and September 30, 2020, the weighted-average remaining lease term (in years) and discount rate were as follows:
|  | September 30, 2021 |  | September 30, 2020
Weighted-average remaining lease term |  |  |  |
Operating leases |  | 5.6 years |  | 6.5 years
Finance leases |  | 2.3 years |  | 2.8 years
Weighted-average discount rate |  |  |  |
Operating leases |  | 2.8 | % |  | 2.8 | %
Finance leases |  | 3.0 | % |  | 5.2 | %
Operating cash outflows from operating leases for the six months ended September 30, 2021 and September 30, 2020 were $2.5 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 September 30, 2021, March 31, 2021 and September 30, 2020 were as follows (in thousands):
|  | Classification |  | September 30, 2021 |  | March 31, 2021 |  | September 30, 2020
Assets |  |  |  |  |  |  |  |
Operating lease assets |  | Other assets |  | $ | 20,270 |  |  | $ | 22,691 |  |  | $ | 21,548 |
Finance lease assets (a) |  | Other assets |  | 874 |  |  | 1,100 |  |  | 1,599 |
Total leased assets |  |  |  | $ | 21,144 |  |  | $ | 23,791 |  |  | $ | 23,147 |
Liabilities |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |
Operating |  | Accrued expenses and other current liabilities |  | $ | 4,233 |  |  | $ | 4,292 |  |  | $ | 3,374 |
Finance |  | Current portion of long-term debt and finance lease obligations |  | 774 |  |  | 812 |  |  | 812 |
Noncurrent |  |  |  |  |  |  |  |
Operating |  | Long-term operating lease obligations |  | 17,919 |  |  | 20,084 |  |  | 19,185 |
Finance |  | Long-term debt and finance lease obligations |  | 1,029 |  |  | 1,388 |  |  | 1,799 |
Total lease liabilities |  |  |  | $ | 23,955 |  |  | $ | 26,576 |  |  | $ | 25,170 |
_____________________ (a) Finance leases are recorded net of accumulated amortization of $2.8 million, $3.2 million and $3.4 million as of September 30, 2021, March 31, 2021 and September 30, 2020, respectively. For the three and six months ended September 30, 2021 and September 30, 2020, the components of operating and finance lease costs were as follows (in thousands):
|  |  |  |  |  | Three months ended September 30, |  | Six months ended September 30,
|  | Classification |  | 2021 |  | 2020 |  | 2021 |  | 2020
Operating lease cost |  | Selling, general and administrative (“SG&A”) expenses |  | $ | 1,242 |  |  | $ | 1,046 |  |  | $ | 2,312 |  |  | $ | 2,126 |
Finance lease cost |  |  |  |  |  |  |  |  |  |
Amortization of leased assets |  | SG&A expenses |  | 105 |  |  | 247 |  |  | 226 |  |  | 495 |
Interest on lease liabilities |  | Interest expense, net |  | 15 |  |  | 36 |  |  | 39 |  |  | 74 |
Total lease cost |  |  |  | $ | 1,362 |  |  | $ | 1,329 |  |  | $ | 2,577 |  |  | $ | 2,695 |
As of September 30, 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
Remainder of Fiscal 2022 |  | $ | 2,322 |  |  | $ | 408 |  |  | $ | 2,730 |
2023 |  | 4,864 |  |  | 816 |  |  | 5,680 |
2024 |  | 4,890 |  |  | 582 |  |  | 5,472 |
2025 |  | 4,075 |  |  | 58 |  |  | 4,133 |
2026 |  | 3,091 |  |  | — |  |  | 3,091 |
Thereafter |  | 4,606 |  |  | — |  |  | 4,606 |
Total lease payments |  | 23,848 |  |  | 1,864 |  |  | 25,712 |
Less: Interest |  | 1,696 |  |  | 61 |  |  | 1,757 |
Present value of lease liabilities |  | $ | 22,152 |  |  | $ | 1,803 |  |  | $ | 23,955 |
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 September 30, 2021 and September 30, 2020, the weighted-average remaining lease term (in years) and discount rate were as follows:
|  | September 30, 2021 |  | September 30, 2020
Weighted-average remaining lease term |  |  |  |
Operating leases |  | 5.6 years |  | 6.5 years
Finance leases |  | 2.3 years |  | 2.8 years
Weighted-average discount rate |  |  |  |
Operating leases |  | 2.8 | % |  | 2.8 | %
Finance leases |  | 3.0 | % |  | 5.2 | %
Operating cash outflows from operating leases for the six months ended September 30, 2021 and September 30, 2020 were $2.5 million and $1.8 million, respectively.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating 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
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration