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Leases
 9 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases
The Company leases warehouses, distribution centers, office 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 December 31, 2022, March 31, 2022 and December 31, 2021 were as follows (in thousands):
 ClassificationDecember 31, 2022March 31, 2022December 31, 2021
Assets
Operating lease assets Other assets$15,120 $18,218 $18,982 
Finance lease assets (a)
Other assets350 664 769 
Total leased assets$15,470 $18,882 $19,751 
Liabilities
Current
Operating Accrued expenses and other current liabilities$4,528 $4,391 $4,243 
FinanceCurrent portion of long-term debt and finance lease obligations690 786 780 
Noncurrent
Operating Long-term operating lease obligations12,329 15,744 16,659 
FinanceLong-term debt and finance lease obligations142 633 832 
Total lease liabilities$17,689 $21,554 $22,514 
_____________________
(a) Finance leases are recorded net of accumulated amortization of $3.3 million, $3.0 million and $2.9 million as of December 31, 2022, March 31, 2022 and December 31, 2021, respectively.
For the three and nine months ended December 31, 2022 and December 31, 2021, the components of operating and finance lease costs were as follows (in thousands):
Three months ended December 31,Nine months ended December 31,
 Classification2022202120222021
Operating lease cost Selling, general and administrative (“SG&A”) expenses$1,149 $1,221 $3,458 $3,533 
Finance lease cost
Amortization of leased assetsSG&A expenses105 105 315 331 
Interest on lease liabilitiesInterest expense, net7 13 25 52 
Total lease cost $1,261 $1,339 $3,798 $3,916 
As of December 31, 2022, 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 2023$1,252 $204 $1,456 
20244,849 582 5,431 
20254,071 58 4,129 
20263,097 — 3,097 
20271,441 — 1,441 
Thereafter3,218 — 3,218 
Total lease payments17,928 844 18,772 
Less: Interest1,071 12 1,083 
Present value of lease liabilities$16,857 $832 $17,689 
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 December 31, 2022 and December 31, 2021, the weighted-average remaining lease term (in years) and discount rate were as follows:
 December 31, 2022December 31, 2021
Weighted-average remaining lease term
Operating leases4.7 years5.4 years
Finance leases1.1 years2.1 years
Weighted-average discount rate
Operating leases2.6 %2.8 %
Finance leases2.8 %3.0 %
Operating cash outflows from operating leases for the nine months ended December 31, 2022 and December 31, 2021 were $3.6 million and $3.9 million, respectively.
Leases Leases
The Company leases warehouses, distribution centers, office 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 December 31, 2022, March 31, 2022 and December 31, 2021 were as follows (in thousands):
 ClassificationDecember 31, 2022March 31, 2022December 31, 2021
Assets
Operating lease assets Other assets$15,120 $18,218 $18,982 
Finance lease assets (a)
Other assets350 664 769 
Total leased assets$15,470 $18,882 $19,751 
Liabilities
Current
Operating Accrued expenses and other current liabilities$4,528 $4,391 $4,243 
FinanceCurrent portion of long-term debt and finance lease obligations690 786 780 
Noncurrent
Operating Long-term operating lease obligations12,329 15,744 16,659 
FinanceLong-term debt and finance lease obligations142 633 832 
Total lease liabilities$17,689 $21,554 $22,514 
_____________________
(a) Finance leases are recorded net of accumulated amortization of $3.3 million, $3.0 million and $2.9 million as of December 31, 2022, March 31, 2022 and December 31, 2021, respectively.
For the three and nine months ended December 31, 2022 and December 31, 2021, the components of operating and finance lease costs were as follows (in thousands):
Three months ended December 31,Nine months ended December 31,
 Classification2022202120222021
Operating lease cost Selling, general and administrative (“SG&A”) expenses$1,149 $1,221 $3,458 $3,533 
Finance lease cost
Amortization of leased assetsSG&A expenses105 105 315 331 
Interest on lease liabilitiesInterest expense, net7 13 25 52 
Total lease cost $1,261 $1,339 $3,798 $3,916 
As of December 31, 2022, 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 2023$1,252 $204 $1,456 
20244,849 582 5,431 
20254,071 58 4,129 
20263,097 — 3,097 
20271,441 — 1,441 
Thereafter3,218 — 3,218 
Total lease payments17,928 844 18,772 
Less: Interest1,071 12 1,083 
Present value of lease liabilities$16,857 $832 $17,689 
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 December 31, 2022 and December 31, 2021, the weighted-average remaining lease term (in years) and discount rate were as follows:
 December 31, 2022December 31, 2021
Weighted-average remaining lease term
Operating leases4.7 years5.4 years
Finance leases1.1 years2.1 years
Weighted-average discount rate
Operating leases2.6 %2.8 %
Finance leases2.8 %3.0 %
Operating cash outflows from operating leases for the nine months ended December 31, 2022 and December 31, 2021 were $3.6 million and $3.9 million, respectively.