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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):
 ClassificationSeptember 30, 2021March 31, 2021September 30, 2020
Assets
Operating lease assets Other assets$20,270 $22,691 $21,548 
Finance lease assets (a)
Other assets874 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 
FinanceCurrent portion of long-term debt and finance lease obligations774 812 812 
Noncurrent
Operating Long-term operating lease obligations17,919 20,084 19,185 
FinanceLong-term debt and finance lease obligations1,029 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,
 Classification2021202020212020
Operating lease cost Selling, general and administrative (“SG&A”) expenses$1,242 $1,046 $2,312 $2,126 
Finance lease cost
Amortization of leased assetsSG&A expenses105 247 226 495 
Interest on lease liabilitiesInterest expense, net15 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 
20234,864 816 5,680 
20244,890 582 5,472 
20254,075 58 4,133 
20263,091 — 3,091 
Thereafter4,606 — 4,606 
Total lease payments23,848 1,864 25,712 
Less: Interest1,696 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, 2021September 30, 2020
Weighted-average remaining lease term
Operating leases5.6 years6.5 years
Finance leases2.3 years2.8 years
Weighted-average discount rate
Operating leases2.8 %2.8 %
Finance leases3.0 %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):
 ClassificationSeptember 30, 2021March 31, 2021September 30, 2020
Assets
Operating lease assets Other assets$20,270 $22,691 $21,548 
Finance lease assets (a)
Other assets874 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 
FinanceCurrent portion of long-term debt and finance lease obligations774 812 812 
Noncurrent
Operating Long-term operating lease obligations17,919 20,084 19,185 
FinanceLong-term debt and finance lease obligations1,029 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,
 Classification2021202020212020
Operating lease cost Selling, general and administrative (“SG&A”) expenses$1,242 $1,046 $2,312 $2,126 
Finance lease cost
Amortization of leased assetsSG&A expenses105 247 226 495 
Interest on lease liabilitiesInterest expense, net15 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 
20234,864 816 5,680 
20244,890 582 5,472 
20254,075 58 4,133 
20263,091 — 3,091 
Thereafter4,606 — 4,606 
Total lease payments23,848 1,864 25,712 
Less: Interest1,696 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, 2021September 30, 2020
Weighted-average remaining lease term
Operating leases5.6 years6.5 years
Finance leases2.3 years2.8 years
Weighted-average discount rate
Operating leases2.8 %2.8 %
Finance leases3.0 %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.