XML 45 R13.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2

Leases

9 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Leases

We lease real estate and equipment for use in our operations. These leases have lease terms of 1 to 10 years, some of which include options to terminate or extend leases for up to 1 to 6 years or on a month-to-month basis. The exercise of lease renewal options is at our sole discretion and our lease ROU assets and liabilities reflect only the options we are reasonably certain that we will exercise.

We determine if an arrangement is or contains a lease at inception by assessing whether the arrangement contains an identified asset and whether we have the right to control the identified asset. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term. ROU assets are based on the measurement of the lease liability and also include any lease payments made prior to or on lease commencement and exclude lease incentives and initial direct costs incurred, as applicable.

Variable lease payments, which do not vary based on an index or rate, are excluded from the ROU asset and lease liability determination. Variable lease payments are typically usage-based and are recorded in the period in which the obligation for those payments is incurred. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As the implicit rate in our leases is unknown, we used our incremental borrowing rate based on the information available at the date of adoption for existing leases and at the lease commencement date for new leases in determining the present value of future lease payments. We give consideration to our credit risk, term of the lease, total lease payments and adjust for the impacts of collateral, as necessary, when calculating our incremental borrowing rates. Rent expense for our operating leases is recognized on a straight-line basis over the lease term.

For the measurement and classification of our lease agreements, we group lease and non-lease components into a single lease component for all underlying asset classes. We have also elected to exclude any leases within our existing classes of assets with a term of twelve months or less.

The components of lease expense for the three and nine months ended December 31, 2019 were as follows:

(In thousands)						Three Months Ended December 31, 2019						Nine Months Ended December 31, 2019
Finance lease cost:
Amortization of right-of-use assets						$	207					$	207
Interest on lease liabilities						34						34
Operating lease cost						2,239						5,697
Short term lease cost						28						78
Variable lease cost						15,731						48,396
Sublease income						(833)						(2,607)
Total net lease cost						$	17,406					$	51,805

As of December 31, 2019, the maturities of lease liabilities were as follows:

(In thousands)
Year Ending March 31,						Operating Leases						Financing Lease						Total
2020 (Remaining three months ending March 31, 2020)						$	2,400					$	336					$	2,736
2021						7,073						1,342						8,415
2022						6,551						1,342						7,893
2023						6,307						1,342						7,649
2024						6,294						1,342						7,636
Thereafter						9,095						672						9,767
Total undiscounted lease payments						37,720						6,376						44,096
Less amount of lease payments representing interest						(5,143)						(492)						(5,635)
Total present value of lease payments						$	32,577					$	5,884					$	38,461

The weighted average remaining lease term and weighted average discount rate were as follows:

									December 31, 2019
Weighted average remaining lease term (years)
			Operating leases						5.49
			Financing leases						4.75
Weighted average discount rate
			Operating leases						5.27		%
			Financing leases						3.49		%

The following table summarizes future minimum lease payments for our operating leases as of March 31, 2019, before adoption of Topic 842:

(In thousands)			Facilities						Equipment						Total
Year Ending March 31,
2020			$	2,828					$	314					$	3,142
2021			2,633						248						2,881
2022			2,265						213						2,478
2023			1,684						105						1,789
2024			1,705						—						1,705
Thereafter			6,780						—						6,780
			$	17,895					$	880					$	18,775

In May 2019, we entered into a Master Logistics Services Agreement with GEODIS Logistics LLC (“GEODIS”), pursuant to which GEODIS serves as a new third party logistics provider. The agreement has an initial term of five years with an option to renew for an additional five year term. Under the Master Logistics Services Agreement, we have authorized GEODIS to lease a facility under a five year term.  The lease commenced in July 2019 and the lease and non-lease components were recorded in our second quarter fiscal year 2020 financial statements.  The ROU asset and operating lease liability at lease commencement was $18.9 million. In November 2019, we recorded a finance lease for assets purchased by Geodis for our use per the Master Logistics Service Agreement. This lease was recorded in our third quarter fiscal year 2020 financial statements and the ROU asset and finance lease liability at lease commencement was $6.1 million.

Leases

Leases

We lease real estate and equipment for use in our operations. These leases have lease terms of 1 to 10 years, some of which include options to terminate or extend leases for up to 1 to 6 years or on a month-to-month basis. The exercise of lease renewal options is at our sole discretion and our lease ROU assets and liabilities reflect only the options we are reasonably certain that we will exercise.

We determine if an arrangement is or contains a lease at inception by assessing whether the arrangement contains an identified asset and whether we have the right to control the identified asset. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term. ROU assets are based on the measurement of the lease liability and also include any lease payments made prior to or on lease commencement and exclude lease incentives and initial direct costs incurred, as applicable.

Variable lease payments, which do not vary based on an index or rate, are excluded from the ROU asset and lease liability determination. Variable lease payments are typically usage-based and are recorded in the period in which the obligation for those payments is incurred. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As the implicit rate in our leases is unknown, we used our incremental borrowing rate based on the information available at the date of adoption for existing leases and at the lease commencement date for new leases in determining the present value of future lease payments. We give consideration to our credit risk, term of the lease, total lease payments and adjust for the impacts of collateral, as necessary, when calculating our incremental borrowing rates. Rent expense for our operating leases is recognized on a straight-line basis over the lease term.

For the measurement and classification of our lease agreements, we group lease and non-lease components into a single lease component for all underlying asset classes. We have also elected to exclude any leases within our existing classes of assets with a term of twelve months or less.

The components of lease expense for the three and nine months ended December 31, 2019 were as follows:

(In thousands)						Three Months Ended December 31, 2019						Nine Months Ended December 31, 2019
Finance lease cost:
Amortization of right-of-use assets						$	207					$	207
Interest on lease liabilities						34						34
Operating lease cost						2,239						5,697
Short term lease cost						28						78
Variable lease cost						15,731						48,396
Sublease income						(833)						(2,607)
Total net lease cost						$	17,406					$	51,805

As of December 31, 2019, the maturities of lease liabilities were as follows:

(In thousands)
Year Ending March 31,						Operating Leases						Financing Lease						Total
2020 (Remaining three months ending March 31, 2020)						$	2,400					$	336					$	2,736
2021						7,073						1,342						8,415
2022						6,551						1,342						7,893
2023						6,307						1,342						7,649
2024						6,294						1,342						7,636
Thereafter						9,095						672						9,767
Total undiscounted lease payments						37,720						6,376						44,096
Less amount of lease payments representing interest						(5,143)						(492)						(5,635)
Total present value of lease payments						$	32,577					$	5,884					$	38,461

The weighted average remaining lease term and weighted average discount rate were as follows:

									December 31, 2019
Weighted average remaining lease term (years)
			Operating leases						5.49
			Financing leases						4.75
Weighted average discount rate
			Operating leases						5.27		%
			Financing leases						3.49		%

The following table summarizes future minimum lease payments for our operating leases as of March 31, 2019, before adoption of Topic 842:

(In thousands)			Facilities						Equipment						Total
Year Ending March 31,
2020			$	2,828					$	314					$	3,142
2021			2,633						248						2,881
2022			2,265						213						2,478
2023			1,684						105						1,789
2024			1,705						—						1,705
Thereafter			6,780						—						6,780
			$	17,895					$	880					$	18,775

In May 2019, we entered into a Master Logistics Services Agreement with GEODIS Logistics LLC (“GEODIS”), pursuant to which GEODIS serves as a new third party logistics provider. The agreement has an initial term of five years with an option to renew for an additional five year term. Under the Master Logistics Services Agreement, we have authorized GEODIS to lease a facility under a five year term.  The lease commenced in July 2019 and the lease and non-lease components were recorded in our second quarter fiscal year 2020 financial statements.  The ROU asset and operating lease liability at lease commencement was $18.9 million. In November 2019, we recorded a finance lease for assets purchased by Geodis for our use per the Master Logistics Service Agreement. This lease was recorded in our third quarter fiscal year 2020 financial statements and the ROU asset and finance lease liability at lease commencement was $6.1 million.

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:	nonnum: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:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration