Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2018 | May 25, 2018 | Sep. 29, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | Container Store Group, Inc. | ||
Entity Central Index Key | 1,411,688 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 71,629,934 | ||
Common Stock Outstanding | 48,297,212 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Current assets: | ||
Cash | $ 8,399 | $ 10,736 |
Accounts receivable, net | 25,528 | 27,476 |
Inventory | 97,362 | 103,120 |
Prepaid expenses | 11,281 | 10,550 |
Income taxes receivable | 15 | 16 |
Other current assets | 11,609 | 10,787 |
Total current assets | 154,194 | 162,685 |
Noncurrent assets: | ||
Property and equipment, net | 158,389 | 165,498 |
Goodwill | 202,815 | 202,815 |
Trade names | 229,401 | 226,685 |
Deferred financing costs, net | 312 | 320 |
Noncurrent deferred tax assets, net | 2,404 | 2,139 |
Other assets | 1,854 | 1,692 |
Total noncurrent assets | 595,175 | 599,149 |
Total assets | 749,369 | 761,834 |
Current liabilities: | ||
Accounts payable | 43,692 | 44,762 |
Accrued liabilities | 70,494 | 60,107 |
Current portion of long-term debt | 7,771 | 5,445 |
Income taxes payable | 4,580 | 2,738 |
Total current liabilities | 126,537 | 113,052 |
Noncurrent liabilities: | ||
Long-term debt | 277,394 | 312,026 |
Noncurrent deferred tax liabilities, net | 54,839 | 80,679 |
Deferred rent and other long-term liabilities | 41,892 | 34,287 |
Total noncurrent liabilities | 374,125 | 426,992 |
Total liabilities | 500,662 | 540,044 |
Commitments and contingencies (Note 12) | ||
Shareholders' equity: | ||
Common stock, $0.01 par value, 250,000,000 shares authorized; 48,072,187 shares issued at March 31, 2018 and 48,045,114 shares issued at April 1, 2017 | 481 | 480 |
Additional paid-in capital | 861,263 | 859,102 |
Accumulated other comprehensive loss | (17,316) | (22,643) |
Retained deficit | (595,721) | (615,149) |
Total shareholders' equity | 248,707 | 221,790 |
Total liabilities and shareholders' equity | $ 749,369 | $ 761,834 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 28, 2015 |
Consolidated balance sheets | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 | |
Common stock, shares issued | 48,072,187 | 48,045,114 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Apr. 02, 2016 | Apr. 02, 2016 | Apr. 04, 2015 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Consolidated statements of operations | ||||||||||||||
Net sales | $ 69,218 | $ 66,761 | $ 232,764 | $ 222,986 | $ 218,410 | $ 183,068 | $ 221,042 | $ 216,380 | $ 205,060 | $ 177,448 | $ 857,228 | $ 819,930 | $ 794,630 | |
Cost of sales (excluding depreciation and amortization) | 29,023 | 360,167 | 343,860 | 331,079 | ||||||||||
Gross profit | 40,195 | 39,254 | 136,516 | 130,561 | 126,374 | 103,610 | 127,318 | 125,702 | 118,355 | 104,695 | 497,061 | 476,070 | 463,551 | |
Selling, general, and administrative expenses (excluding depreciation and amortization) | 34,504 | 33,728 | 411,721 | 387,948 | 393,810 | |||||||||
Stock-based compensation | $ 147 | 147 | 2,026 | 1,989 | 1,556 | |||||||||
Pre-opening costs | 191 | 5,293 | 6,852 | 9,033 | ||||||||||
Depreciation and amortization | $ 3,009 | 3,009 | 37,922 | 37,124 | 34,230 | |||||||||
Other expenses | 102 | 5,734 | 1,058 | |||||||||||
Loss on disposal of assets | 278 | 57 | 61 | |||||||||||
Income from operations | 2,242 | 2,565 | 20,341 | 13,899 | 7,884 | (8,037) | 17,181 | 12,561 | 10,272 | 1,028 | 34,087 | 41,042 | 24,861 | |
Interest expense | 1,550 | 25,013 | 16,687 | 16,810 | ||||||||||
Loss on extinguishment of debt | (2,369) | 2,369 | ||||||||||||
Income before taxes | 692 | 978 | 6,705 | 24,355 | 8,051 | |||||||||
(Benefit) provision for income taxes | 338 | 340 | (12,723) | 9,402 | 2,909 | |||||||||
Net income | $ 354 | $ 638 | $ (399) | $ 28,379 | $ (875) | $ (7,677) | $ 8,377 | $ 5,092 | $ 3,541 | $ (2,057) | $ 19,428 | $ 14,953 | $ 5,142 | |
Net income per common share - basic and diluted | $ 0.01 | $ (0.01) | $ 0.59 | $ (0.02) | $ (0.16) | $ 0.17 | $ 0.11 | $ 0.07 | $ (0.04) | $ 0.40 | $ 0.31 | $ 0.11 | ||
Weighted-average common shares - basic (in shares) | 47,986,975 | 48,072,187 | 48,067,754 | 48,058,231 | 48,047,937 | 48,009,029 | 47,999,535 | 47,991,445 | 47,986,975 | 48,061,527 | 47,996,746 | 47,985,717 | ||
Weighted-average common shares - diluted (in shares) | 47,986,975 | 48,072,187 | 48,167,882 | 48,058,231 | 48,047,937 | 48,073,420 | 48,022,499 | 48,001,112 | 47,986,975 | 48,147,725 | 48,016,010 | 47,985,717 |
Consolidated statements of comp
Consolidated statements of comprehensive income - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 02, 2016 | Apr. 04, 2015 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Consolidated statements of comprehensive income | |||||||||||||
Net income | $ 354 | $ 638 | $ (399) | $ 28,379 | $ (875) | $ (7,677) | $ 8,377 | $ 5,092 | $ 3,541 | $ (2,057) | $ 19,428 | $ 14,953 | $ 5,142 |
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) of $30, $(85), $606, and $7 | 12 | 53 | (138) | 853 | |||||||||
Pension liability adjustment, net of tax provision of $98, $142, $39, and $0 | (66) | (349) | (386) | 175 | |||||||||
Foreign currency translation adjustment | 4,053 | 5,623 | (6,283) | (2,521) | |||||||||
Comprehensive income | $ 4,353 | $ 24,755 | $ 8,146 | $ 3,649 |
Consolidated statements of com6
Consolidated statements of comprehensive income (Parenthetical) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Consolidated statements of comprehensive income | ||||
Unrealized gain (loss) on financial instruments, tax provision (benefit) | $ 7 | $ 30 | $ (85) | $ 606 |
Pension liability adjustment, tax provision | $ 0 | $ 98 | $ 142 | $ 39 |
Consolidated statements of shar
Consolidated statements of shareholders' equity - USD ($) $ in Thousands | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained deficit | Total |
Balance at the beginning of period at Feb. 28, 2015 | $ 480 | $ 855,322 | $ (18,342) | $ (635,598) | $ 201,862 |
Balance (in shares) at Feb. 28, 2015 | 47,983,660 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 5,142 | 5,142 | |||
Stock-based compensation | 1,556 | 1,556 | |||
Stock option exercises | 59 | $ 59 | |||
Stock option exercises (in shares) | 3,315 | 3,315 | |||
Excess tax provision from stock-based compensation | (58) | $ (58) | |||
Foreign currency translation adjustment | (2,521) | (2,521) | |||
Unrealized (loss) gain on financial instruments, net of tax (benefit) provision of $30, $85, $7 and $606 | 853 | 853 | |||
Pension liability adjustment, net of tax provision of $98, $142, $39, and $0 | 175 | 175 | |||
Balance at the end of period at Feb. 27, 2016 | $ 480 | 856,879 | (19,835) | (630,456) | 207,068 |
Balance (in shares) at Feb. 27, 2016 | 47,986,975 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 354 | 354 | |||
Stock-based compensation | 147 | $ 147 | |||
Stock option exercises (in shares) | 0 | ||||
Foreign currency translation adjustment | 4,053 | $ 4,053 | |||
Unrealized (loss) gain on financial instruments, net of tax (benefit) provision of $30, $85, $7 and $606 | 12 | 12 | |||
Pension liability adjustment, net of tax provision of $98, $142, $39, and $0 | (66) | (66) | |||
Balance at the end of period at Apr. 02, 2016 | $ 480 | 857,026 | (15,836) | (630,102) | 211,568 |
Balance (in shares) at Apr. 02, 2016 | 47,986,975 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 14,953 | 14,953 | |||
Stock-based compensation | 1,989 | 1,989 | |||
Vesting of restricted stock awards | 31,216 | ||||
Taxes related to net share settlement of restricted stock awards | (39) | (39) | |||
Common stock granted to non-employees | 135 | 135 | |||
Common stock granted to non-employees (in shares) | 26,923 | ||||
Excess tax provision from stock-based compensation | (9) | (9) | |||
Foreign currency translation adjustment | (6,283) | (6,283) | |||
Unrealized (loss) gain on financial instruments, net of tax (benefit) provision of $30, $85, $7 and $606 | (138) | (138) | |||
Pension liability adjustment, net of tax provision of $98, $142, $39, and $0 | (386) | (386) | |||
Balance at the end of period at Apr. 01, 2017 | $ 480 | 859,102 | (22,643) | (615,149) | 221,790 |
Balance (in shares) at Apr. 01, 2017 | 48,045,114 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 19,428 | 19,428 | |||
Stock-based compensation | 2,026 | 2,026 | |||
Common stock granted to non-employees | $ 1 | 135 | 136 | ||
Common stock granted to non-employees (in shares) | 27,073 | ||||
Foreign currency translation adjustment | 5,623 | 5,623 | |||
Unrealized (loss) gain on financial instruments, net of tax (benefit) provision of $30, $85, $7 and $606 | 53 | 53 | |||
Pension liability adjustment, net of tax provision of $98, $142, $39, and $0 | (349) | (349) | |||
Balance at the end of period at Mar. 31, 2018 | $ 481 | $ 861,263 | $ (17,316) | $ (595,721) | $ 248,707 |
Balance (in shares) at Mar. 31, 2018 | 48,072,187 |
Consolidated statements of sha8
Consolidated statements of shareholders' equity (Parenthetical) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | Feb. 28, 2015 | |
Consolidated statements of shareholders' equity | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Unrealized gain (loss) on financial instruments, taxes | $ 7 | $ 30 | $ (85) | $ 606 | |
Pension liability adjustment, tax provision | $ 0 | $ 98 | $ 142 | $ 39 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 02, 2016 | Apr. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Operating activities | |||||
Net income | $ 354 | $ 19,428 | $ 14,953 | $ 5,142 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||
Depreciation and amortization | 3,009 | $ 3,009 | 37,922 | 37,124 | 34,230 |
Stock-based compensation | 147 | 147 | 2,026 | 1,989 | 1,556 |
Loss on disposal of assets | 278 | 57 | 61 | ||
Loss on extinguishment of debt | 2,369 | ||||
Deferred tax (benefit) expense | 818 | 818 | (25,545) | (96) | 859 |
Noncash interest | 160 | 160 | 2,664 | 1,921 | 1,940 |
Other | 45 | 227 | (29) | 401 | |
Changes in operating assets and liabilities: | |||||
Accounts receivable | 6,958 | 3,192 | (5,861) | (5,338) | |
Inventory | 1,516 | 8,406 | (19,598) | (1,929) | |
Prepaid expenses and other assets | (7,371) | (2,133) | 4,028 | 487 | |
Accounts payable and accrued liabilities | (14,258) | 6,249 | 10,965 | 5,840 | |
Income taxes | (719) | 625 | 3,527 | (1,330) | |
Other noncurrent liabilities | (199) | 6,468 | (4,341) | 388 | |
Net cash provided by (used in) operating activities | (9,540) | 62,176 | 44,639 | 42,307 | |
Investing activities | |||||
Additions to property and equipment | (2,435) | (2,435) | (27,646) | (28,515) | (46,431) |
Proceeds from investment grant | 479 | ||||
Proceeds from sale of property and equipment | 1 | 96 | 7 | 202 | |
Net cash used in investing activities | (2,434) | (27,550) | (28,508) | (45,750) | |
Financing activities | |||||
Borrowings on revolving lines of credit | 4,958 | 47,486 | 42,731 | 55,872 | |
Payments on revolving lines of credit | (2,072) | (47,486) | (46,216) | (57,935) | |
Borrowings on long-term debt | 5,000 | 335,000 | 30,000 | 33,000 | |
Payments on long-term debt and capital leases | (944) | (361,403) | (40,496) | (38,246) | |
Payment of debt issuance costs | (11,246) | (266) | |||
Payment of taxes with shares withheld upon restricted stock vesting | (39) | ||||
Proceeds from the exercise of stock options | 59 | ||||
Net cash (used in) provided by financing activities | 6,942 | (37,688) | (13,981) | (7,516) | |
Effect of exchange rate changes on cash | 232 | 725 | (223) | (426) | |
Net (decrease) increase in cash | (4,800) | (2,337) | 1,927 | (11,385) | |
Cash at beginning of fiscal year | 13,609 | 13,609 | 10,736 | 8,809 | 24,994 |
Cash at end of fiscal year | 8,809 | $ 8,809 | 8,399 | 10,736 | 13,609 |
Cash paid during the year for: | |||||
Interest | 3,552 | 22,119 | 14,656 | 14,850 | |
Taxes | 236 | 4,740 | 7,651 | 891 | |
Supplemental information for non-cash investing and financing activities: | |||||
Purchases of property and equipment (included in accounts payable) | 1,114 | 741 | 138 | 1,386 | |
Capital lease obligation incurred | $ 60 | $ 215 | $ 691 | $ 541 |
Nature of business and summary
Nature of business and summary of significant accounting policies | 12 Months Ended |
Mar. 31, 2018 | |
Nature of business and summary of significant accounting policies | |
Nature of business and summary of significant accounting policies | 1. Nature of business and summary of significant accounting policies Description of business The Container Store, Inc. was founded in 1978 in Dallas, Texas, as a retailer with a mission to provide customers with storage and organization solutions to accomplish their projects through an assortment of innovative products and unparalleled customer service. In 2007, The Container Store, Inc. was sold to The Container Store Group, Inc. (the "Company"), a holding company, of which a majority stake was purchased by Leonard Green and Partners, L.P. ("LGP"), with the remainder held by certain employees of The Container Store, Inc. On November 6, 2013, the Company completed the initial public offering of its common stock (the "IPO"). As the majority shareholder, LGP retains controlling interest in the Company. The Container Store, Inc. consists of our retail stores, website and call center, as well as our installation and organizational services business. As of March 31, 2018, The Container Store, Inc. operated 90 stores with an average size of approximately 25,000 square feet (19,000 selling square feet) in 32 states and the District of Columbia. The Container Store, Inc. also offers all of its products directly to its customers, including business-to-business customers, through its website and call center. The Container Store, Inc.'s wholly owned Swedish subsidiary, Elfa International AB ("Elfa"), designs and manufactures component-based shelving and drawer systems and made-to-measure sliding doors that are customizable for any area of the home. elfa® branded products are sold exclusively in the United States in The Container Store® retail stores, website, and call center and Elfa sells to various retailers and distributors primarily in the Nordic region and throughout Europe on a wholesale basis. Basis of presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). Basis of consolidation The consolidated financial statements include our accounts and those of the Company's wholly owned subsidiaries. The Company eliminates all significant intercompany balances and transactions, including intercompany profits, in consolidation. Fiscal year The Company follows a 4-4-5 fiscal calendar, whereby each fiscal quarter consists of thirteen weeks grouped into two four-week "months" and one five-week "month", and its fiscal year ends on the Saturday closest to March 31 st . Elfa's fiscal year ends on the last day of the calendar month of March. Prior to fiscal year 2016, the Company's fiscal year ended on the Saturday closest to February 28 th . All references herein to "fiscal 2017" represent the results of the 52-week fiscal year ended March 31, 2018, and references to "fiscal 2016" represent the results of the 52-week fiscal year ended April 1, 2017. In addition, all references herein to "fiscal 2015" represent the results of the 52-week fiscal year ended February 27, 2016. Management estimates The preparation of the Company's consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Significant accounting judgments and estimates include fair value estimates for indefinite-lived intangible assets, inventory loss reserve, assessments of long-lived asset impairments, gift card breakage, and assessment of valuation allowances on deferred tax assets. Revenue recognition Revenue from sales related to retail operations is recognized when the merchandise is delivered to the customer at the point of sale. Revenue from sales that are shipped or delivered directly to customers is recognized upon estimated delivery to the customer and includes applicable shipping or delivery revenue. Revenue from sales that are installed is recognized upon completion of the installation service to the customer and includes applicable installation revenue. Revenue from sales of other services is recognized upon the completion of the service. Revenue from sales related to manufacturing operations is recorded upon shipment. Sales are recorded net of sales taxes collected from customers. A sales return allowance is recorded for estimated returns of merchandise subsequent to the balance sheet date that relate to sales prior to the balance sheet date. The returns allowance is based on historical return patterns and reduces sales and cost of sales, accordingly. Merchandise exchanges of similar product and price are not considered merchandise returns and, therefore, are excluded when calculating the sales returns allowance. Gift cards and merchandise credits Gift cards are sold to customers in retail stores, through the call center and website, and through certain third parties. We issue merchandise credits in our stores and through our call center. Revenue from sales of gift cards and issuances of merchandise credits is recognized when the gift card is redeemed by the customer, or the likelihood of the gift card being redeemed by the customer is remote (gift card breakage). The gift card breakage rate is determined based upon historical redemption patterns. An estimate of the rate of gift card breakage is applied over the period of estimated performance (48 months as of the end of fiscal 2017) and the breakage amounts are included in net sales in the consolidated statement of operations. The Company recorded $1,656, $1,072, $948, and $73 of gift card breakage in fiscal years 2017, 2016, 2015, and the five weeks ended April 2, 2016, respectively. Cost of sales Cost of sales related to retail operations includes the purchase cost of inventory sold (net of vendor rebates), in-bound freight, as well as inventory loss reserves. Costs incurred to ship or deliver merchandise to customers, as well as direct installation and organization services costs, are also included in cost of sales. Cost of sales from manufacturing operations includes costs associated with production, including materials, wages, other variable production costs, and other applicable manufacturing overhead. Leases Rent expense on operating leases, including rent holidays and scheduled rent increases, is recorded on a straight-line basis over the term of the lease, commencing on the date the Company takes possession of the leased property. Rent expense is recorded in selling, general, and administrative expenses. Pre-opening rent expense is recorded in pre-opening costs in the consolidated income statement. The net excess of rent expense over the actual cash paid has been recorded as deferred rent in the accompanying consolidated balance sheets. Tenant improvement allowances are also included in the accompanying consolidated balance sheets as deferred rent liabilities and are amortized as a reduction of rent expense over the term of the lease from the possession date. Contingent rental payments, typically based on a percentage of sales, are recognized in rent expense when payment of the contingent rent is probable. Advertising All advertising costs of the Company are expensed when incurred, or upon the release of the initial advertisement, except for production costs related to catalogs and direct mailings to customers, which are initially capitalized. Production costs related to catalogs and direct mailings consist primarily of printing and postage and are expensed when mailed to the customer, except for direct mailings related to promotional campaigns, which are expensed over the period during which the promotional sales are expected to occur. Advertising costs are recorded in selling, general, and administrative expenses. Pre-opening advertising costs are recorded in pre-opening costs. Catalog and direct mailings costs capitalized at March 31, 2018 and April 1, 2017, amounted to $375 and $605 respectively, and are recorded in prepaid expenses on the accompanying consolidated balance sheets. Total advertising expense incurred for fiscal years 2017, 2016, 2015, and the five-weeks ended April 2, 2016 was $32,860, $31,525, $32,343, and $2,164, respectively. Pre-opening costs Non-capital expenditures associated with opening new stores, including rent, marketing expenses, travel and relocation costs, and training costs, are expensed as incurred and are included in pre-opening costs in the consolidated statement of operations. Income taxes We account for income taxes utilizing Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 740, Income Taxes . ASC 740 requires an asset and liability approach, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. There were no uncertain tax positions requiring accrual as of March 31, 2018 and April 1, 2017. Valuation allowances are established against deferred tax assets when it is more-likely-than-not that the realization of those deferred tax assets will not occur. Valuation allowances are released as positive evidence of future taxable income sufficient to realize the underlying deferred tax assets becomes available. Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in the tax rate is recognized through continuing operations in the period that includes the enactment of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. We operate in certain jurisdictions outside the United States. ASC 740-30 provides that the undistributed earnings of a foreign subsidiary be accounted for as a temporary difference under the presumption that all undistributed earnings will be distributed to the parent company as a dividend. Sufficient evidence of the intent to permanently reinvest the earnings in the jurisdiction where earned precludes a company from recording the temporary difference. For purposes of ASC 740-30, we are partially reinvested in our Swedish subsidiary Elfa and thus do not record a temporary difference. We are partially reinvested since we have permanently reinvested our past earnings at Elfa; however, we do not assert that all future earnings will be reinvested into Elfa. Stock-based compensation The Company accounts for stock-based compensation in accordance ASC 718, Compensation-Stock Compensation , which requires the fair value of stock-based payments to be recognized in the consolidated financial statements as compensation expense over the requisite service period. For time-based awards, compensation expense is recognized on a straight line basis, net of forfeitures, over the requisite service period for awards that actually vest. For performance-based awards, compensation expense is estimated based on achievement of the performance condition and is recognized using the accelerated attribution method over the requisite service period for awards that actually vest. Stock-based compensation expense is recorded in the stock-based compensation line in the consolidated statements of operations. Stock Options The Board determines the exercise price of stock options based on the closing price of the Company's common stock as reported on The New York Stock Exchange on the grant date. The Company estimates the fair value of each stock option grant on the date of grant based upon the Black-Scholes option-pricing model. This model requires various significant judgmental assumptions in order to derive a final fair value determination for each type of award including: • Expected Term—The expected term of the options represents the period of time between the grant date of the options and the date the options are either exercised or canceled, including an estimate of options still outstanding. • Expected Volatility—The expected volatility incorporates historical and implied volatility of comparable public companies for a period approximating the expected term. • Expected Dividend Yield—The expected dividend yield is based on the Company's expectation of not paying dividends on its common stock for the foreseeable future. • Risk-Free Interest Rate—The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and with a maturity that approximates the expected term. Restricted Stock Awards The fair value of each restricted stock award is determined based on the closing price of the Company's common stock as reported on The New York Stock Exchange on the grant date. Accounts receivable Accounts receivable consist primarily of trade receivables, receivables from The Container Store, Inc.'s credit card processors for sales transactions, and tenant improvement allowances from The Container Store, Inc.'s landlords in connection with new leases. An allowance for doubtful accounts is established on trade receivables, if necessary, for estimated losses resulting from the inability of customers to make required payments. Factors such as payment terms, historical loss experience, and economic conditions are generally considered in determining the allowance for doubtful accounts. Accounts receivable are presented net of allowances for doubtful accounts of $170 and $305 at March 31, 2018 and April 1, 2017, respectively. Inventories Inventories at retail stores are comprised of finished goods and are valued at the lower of cost or estimated net realizable value, with cost determined on a weighted-average cost method including associated freight costs. Manufacturing inventories are comprised of raw materials, work in process, and finished goods and are valued on a first-in, first out basis using full absorption accounting which includes material, labor, other variable costs, and other applicable manufacturing overhead. To determine if the value of inventory is recoverable at cost, we consider current and anticipated demand, customer preference and the merchandise age. The significant estimates used in inventory valuation are obsolescence (including excess and slow-moving inventory) and estimates of inventory shrinkage. We adjust our inventory for obsolescence based on historical trends, aging reports, specific identification and our estimates of future retail sales prices. Reserves for shrinkage are estimated and recorded throughout the period as a percentage of cost of sales based on historical shrinkage results and current inventory levels. Actual shrinkage is recorded throughout the year based upon periodic cycle counts. Actual inventory shrinkage can vary from estimates due to factors including the mix of our inventory and execution against loss prevention initiatives in our stores and distribution center. Property and equipment Property and equipment are recorded at cost less accumulated depreciation. Significant additions and improvements are capitalized, and expenditures for maintenance and repairs are expensed. Gains and losses on the disposition of property and equipment are recognized in the period incurred. Depreciation, including amortization of assets recorded under capital lease obligations, is provided using the straight-line method over the estimated useful lives of depreciable assets as follows: Buildings 30 years Furniture, fixtures, and equipment 3 to 10 years Computer software 2 to 5 years Leasehold improvements Shorter of useful life or lease term Capital leases Shorter of useful life or lease term Costs of developing or obtaining software for internal use or developing the Company's website, such as external direct costs of materials or services and internal payroll costs directly related to the software development projects are capitalized. For the fiscal years ended March 31, 2018, April 1, 2017, and February 27, 2016, the Company capitalized $4,397, $4,392, and $3,272, respectively, and amortized $4,346, $3,498, and $3,258, respectively, of costs in connection with the development of internally used software. For the five-week period ended April 2, 2016, the Company capitalized $299 and amortized $296 of costs in connection with the development of internally used software. Long-lived assets Long-lived assets, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. If the sum of the estimated undiscounted future cash flows related to the asset is less than the carrying value, we recognize a loss equal to the difference between the carrying value and the fair value, usually determined by the estimated discounted cash flow analysis of the asset. For our TCS segment, we generally evaluate long-lived tangible assets at a store level, or at the lowest level at which independent cash flows can be identified. We evaluate corporate assets or other long-lived assets that are not store-specific at the consolidated level. For our Elfa segment, we evaluate long-lived tangible assets at the segment level. Since there is typically no active market for our long-lived tangible assets, we estimate fair values based on the expected future cash flows. We estimate future cash flows based on store-level historical results, current trends, and operating and cash flow projections. Our estimates are subject to uncertainty and may be affected by a number of factors outside our control, including general economic conditions and the competitive environment. While we believe our estimates and judgments about future cash flows are reasonable, future impairment charges may be required if the expected cash flow estimates, as projected, do not occur or if events change requiring us to revise our estimates. Foreign currency forward contracts We account for foreign currency forward contracts in accordance with ASC 815, Derivatives and Hedging . In the TCS segment, we may utilize foreign currency forward contracts in Swedish krona to stabilize our retail gross margins and to protect our domestic operations from downward currency exposure by hedging purchases of inventory from our wholly owned subsidiary, Elfa. In the Elfa segment, we may utilize foreign currency forward contracts to hedge purchases of raw materials that are transacted in currencies other than Swedish krona, which is the functional currency of Elfa. Generally, the Company's foreign currency forward contracts have terms from 1 to 12 months and require the Company to exchange currencies at agreed-upon rates at settlement. The Company does not hold or enter into financial instruments for trading or speculative purposes. The Company records all foreign currency forward contracts on its consolidated balance sheet at fair value. The Company records its foreign currency forward contracts on a gross basis. Forward contracts not designated as hedges are adjusted to fair value through income as selling, general and administrative expenses. The Company accounts for its foreign currency hedge instruments as cash flow hedges, as defined. Changes in the fair value of the foreign currency hedge instruments that are considered to be effective, as defined, are recorded in other comprehensive income (loss) until the hedged item (inventory) is sold to the customer, at which time the deferred gain or loss is recognized through cost of sales. Any portion of a change in the foreign currency hedge instrument's fair value that is considered to be ineffective, as defined, or that the Company has elected to exclude from its measurement of effectiveness, is immediately recorded in earnings as cost of sales. Self-insured liabilities We are primarily self-insured for workers' compensation, employee health benefits and general liability claims. We record self-insurance liabilities based on claims filed, including the development of those claims, and an estimate of claims incurred but not yet reported. Factors affecting these estimates include future inflation rates, changes in severity, benefit level changes, medical costs and claim settlement patterns. Should a different amount of claims occur compared to what was estimated, or costs of the claims increase or decrease beyond what was anticipated, reserves may need to be adjusted accordingly. We determine our workers' compensation liability and general liability claims reserves based on an analysis of historical claims data. Self-insurance reserves for employee health benefits, workers' compensation and general liability claims are recorded in the accrued liabilities line item of the consolidated balance sheet and were $2,810 and $3,016 as of March 31, 2018 and April 1, 2017, respectively. Goodwill We evaluate goodwill annually to determine whether it is impaired. Goodwill is also tested between annual impairment tests if an event occurs or circumstances change that would indicate that the fair value of a reporting unit is less than its carrying amount. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset. If an impairment indicator exists, we test goodwill for recoverability. We have identified two reporting units and we have selected the first day of the fourth fiscal quarter to perform our annual goodwill impairment testing. Prior to testing goodwill for impairment, we perform a qualitative assessment to determine whether it is more likely than not that goodwill is impaired for each reporting unit. If the results of the qualitative assessment indicate that the likelihood of impairment is greater than 50%, then we perform an impairment test on goodwill. To test for impairment, we compare the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired and we are not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then we would record an impairment loss equal to the difference. The fair value of each reporting unit is determined by using a discounted cash flow analysis using the income approach. We also use a market approach to compare the estimated fair value to comparable companies. The determination of fair value requires assumptions and estimates of many critical factors, including among others, our nature and our history, financial and economic conditions affecting us, our industry and the general economy, past results, our current operations and future prospects, sales of similar businesses or capital stock of publicly held similar businesses, as well as prices, terms and conditions affecting past sales of similar businesses. Forecasts of future operations are based, in part, on operating results and management's expectations as to future market conditions. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. If actual results are not consistent with our estimates and assumptions, we may be exposed to future impairment losses that could be material. Trade names We annually evaluate whether the trade names continue to have an indefinite life. Trade names are reviewed for impairment annually on the first day of the fourth fiscal quarter and may be reviewed more frequently if indicators of impairment are present. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. The impairment review is performed by comparing the carrying value to the estimated fair value, determined using a discounted cash flow methodology. If the recorded carrying value of the trade name exceeds its estimated fair value, an impairment charge is recorded to write the trade name down to its estimated fair value. Factors used in the valuation of intangible assets with indefinite lives include, but are not limited to, future revenue growth assumptions, estimated market royalty rates that could be derived from the licensing of our trade names to third parties, and a rate used to discount the estimated royalty cash flow projections. The valuation of trade names requires assumptions and estimates of many critical factors, which are consistent with the factors discussed under "Goodwill" above. Forecasts of future operations are based, in part, on operating results and management's expectations as to future market conditions. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. If actual results are not consistent with our estimates and assumptions, we may be exposed to future impairment losses that could be material. Foreign currency translation The Company operates foreign subsidiaries in the following countries: Sweden, Norway, Finland, Denmark, Germany, Poland, and France. The functional currency of the Company's foreign operations is the applicable country's currency. All assets and liabilities of foreign subsidiaries and affiliates are translated at year-end rates of exchange. Revenues and expenses of foreign subsidiaries and affiliates are translated at average rates of exchange for the year. Unrealized gains and losses on translation are reported as cumulative translation adjustments through other comprehensive income (loss). The functional currency for the Company's wholly owned subsidiary, Elfa, is the Swedish krona. During fiscal 2017, the rate of exchange from U.S. dollar to Swedish krona decreased from 8.9 to 8.4. The carrying amount of assets related to Elfa and subject to currency fluctuation was $119,995 and $108,707 as of March 31, 2018 and April 1, 2017, respectively. Foreign currency realized gains of $596, realized gains of $342, realized losses of $241, and realized gains of $60 are included in selling, general, and administrative expenses in the consolidated statements of operations in fiscal 2017, fiscal 2016, fiscal 2015, and the five-weeks ended April 2, 2016, respectively. Recent accounting pronouncements In February 2016, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) , to revise lease accounting guidance. The update requires most leases to be recorded on the balance sheet as a lease liability, with a corresponding right-of-use asset, whereas these leases currently have an off-balance sheet classification. ASU 2016-02 must be applied on a modified retrospective basis and is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The Company currently intends to adopt this standard in the first quarter of fiscal 2019. The Company is still evaluating the impact of implementation of this standard on its financial statements, but expects that adoption will have a material impact to the Company's total assets and liabilities given the Company has a significant number of operating leases not currently recognized on its balance sheet. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , an updated standard on revenue recognition (codified as Accounting Standards Codification ("ASC") Topic 606). ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the Company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. The Company has identified certain impacts to our accounting for gift cards given away for promotional or marketing purposes. Under current GAAP, the value of promotional gift cards are recorded as selling, general, and administrative expense. The new standard requires these types of gift cards to be accounted for as a reduction of revenue (i.e. a discount). Additionally, ASU 2014-09 will disallow the capitalization of direct-response advertising costs which will impact the timing of recognition of certain advertising production and distribution costs. This standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted for interim and annual periods beginning after December 15, 2016. The Company intends to adopt this standard in the first quarter of fiscal 2018 and the Company has elected to use the modified-retrospective approach for implementation of the standard. Overall, the Company does not expect the adoption of ASU 2014-09 to have a material impact on the financial statements. Upon transition on April 1, 2018, the Company expects to record a cumulative adjustment to increase retained earnings/(deficit) and decrease accrued liabilities by approximately $400 related to the change for gift cards given away for promotional or marketing purposes. The Company also expects to reclassify the asset balance for the estimate of future returned merchandise, which was approximately $900 as of March 31, 2018, from the "Inventory" line to the "Other current assets" line on the balance sheet. In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which outlined new provisions intended to simplify various aspects related to accounting for share-based payments, including income tax consequences, forfeitures, and classification in the statement of cash flows. Under the new guidance, an entity will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital ("APIC"). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement when the awards vest or are settled. This standard was effective for and adopted by the Company in the first quarter of fiscal 2017 and the Company now recognizes all income tax effects of share-based payments in the income statement on a prospective basis. The Company elected to continue to estimate forfeitures expected to occur to determine the amount of share-based compensation cost to recognize in each period, as permitted by ASU 2016-09. The adoption of ASU 2016-09 did not result in a material impact to the Company's financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which requires entities to recognize the income tax effects of intercompany sales and transfers of assets, other than inventory, in the period in which the transfer occurs. This is a change from current GAAP, which requires entities to defer the income tax effects of intercompany transfers of assets until the asset has been sold to an outside party or otherwise recognized (i.e. depreciated, amortized, impaired). The income tax effects of intercompany sales and transfers of inventory will continue to be deferred until the inventory is sold to an outside party. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. The Company currently intend |
Goodwill and trade names
Goodwill and trade names | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and trade names | |
Goodwill and trade names | 2. Goodwill and trade names The estimated goodwill and trade name fair values are computed using estimates as of the measurement date, which is defined as the first day of the fiscal fourth quarter. The Company makes estimates and assumptions about sales, gross margins, profit margins, and discount rates based on budgets and forecasts, business plans, economic projections, anticipated future cash flows, and marketplace data. Assumptions are also made for varying perpetual growth rates for periods beyond the long-term business plan period. There are inherent uncertainties related to these factors and management's judgment in applying these factors. Another estimate using different, but still reasonable, assumptions could produce different results. As there are numerous assumptions and estimations utilized to derive the estimated enterprise fair value of each reporting unit, it is possible that actual results may differ from estimated results requiring future impairment charges. The Company recorded no impairments during fiscal 2017, fiscal 2016, and fiscal 2015 as a result of the goodwill and trade names impairment tests performed. The changes in the carrying amount of goodwill and trade names were as follows in fiscal 2017, fiscal 2016, and the five weeks ended April 2, 2016: Goodwill Trade names Balance at February 27, 2016 Gross balance Accumulated impairment charges ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total, net $ $ Foreign currency translation adjustments — Balance at April 2, 2016 Gross balance Accumulated impairment charges ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total, net $ $ Foreign currency translation adjustments — ) Balance at April 1, 2017 Gross balance Accumulated impairment charges ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total, net $ $ Foreign currency translation adjustments — Balance at March 31, 2018 Gross balance Accumulated impairment charges ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Detail of certain balance sheet
Detail of certain balance sheet accounts | 12 Months Ended |
Mar. 31, 2018 | |
Detail of certain balance sheet accounts | |
Detail of certain balance sheet accounts | 3. Detail of certain balance sheet accounts March 31, April 1, Accounts receivable, net: Trade receivables, net $ $ Credit card receivables Tenant allowances Other receivables ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inventory: Finished goods $ $ Raw materials Work in progress ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property and equipment, net: Land and buildings $ $ Furniture and fixtures Machinery and equipment Computer software and equipment Leasehold improvements Construction in progress Leased vehicles and other ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation and amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrued Liabilities: Accrued payroll, benefits and bonuses $ $ Unearned revenue Accrued transaction and property tax Gift cards and store credits outstanding Accrued lease liabilities Accrued interest Other accrued liabilities ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Long-term debt and revolving li
Long-term debt and revolving lines of credit | 12 Months Ended |
Mar. 31, 2018 | |
Long-term debt and revolving lines of credit | |
Long-term debt and revolving lines of credit | 4. Long-term debt and revolving lines of credit Long-term debt and revolving lines of credit consist of the following: March 31, April 1, Senior secured term loan facility $ $ 2014 Elfa term loan facility — 2014 Elfa revolving credit facility — — Obligations under capital leases Other loans Revolving credit facility — — ​ ​ ​ ​ ​ ​ ​ ​ Total debt Less current portion ) ) Less deferred financing costs(1) ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total long-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents deferred financing costs related to our Senior Secured Term Loan Facility, which are presented net of long-term debt in the consolidated balance sheet. Scheduled total revolving lines of credit and debt maturities for the fiscal years subsequent to March 31, 2018, are as follows: Within 1 year $ 2 years 3 years 4 years 5 years — Thereafter — ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Senior Secured Term Loan Facility On April 6, 2012, The Container Store Group, Inc., The Container Store, Inc. and certain of its domestic subsidiaries entered into a credit agreement with JPMorgan Chase Bank, N.A., as Administrative Agent and Collateral Agent, and the lenders party thereto (as amended, the "Senior Secured Term Loan Facility"). On August 18, 2017, the Company entered into a fourth amendment (the "Term Loan Amendment") to the Senior Secured Term Loan Facility dated as of April 6, 2012. The fourth amendment amended the Senior Secured Term Loan Facility to, among other things, (i) extend the maturity date of the loans under the Senior Secured Term Loan Facility to August 18, 2021, (ii) add a maximum leverage covenant of 5.0:1.0 which steps down by 0.25x on June 30 of each year commencing on June 30, 2018, (iii) increase the applicable interest rate margin to 7.00% for LIBOR loans and 6.00% for base rate loans, (iv) reduce the aggregate principal amount of the Senior Secured Term Loan Facility to $300,000, (v) increase principal amortization to 2.5% per annum, (vi) require a 3.0% upfront fee on the aggregate principal amount of the Senior Secured Term Loan Facility, and (vii) impose a 1% premium if a voluntary prepayment is made from the proceeds of a repricing transaction within 12 months after August 18, 2017. Under the Senior Secured Term Loan Facility, we had $294,375 in outstanding borrowings as of March 31, 2018 and the interest rate on such borrowings is LIBOR + 7.00%, subject to a LIBOR floor of 1.00%. The Senior Secured Term Loan Facility provides that we are required to make quarterly principal repayments of $1,875 through June 30, 2021, with a balloon payment for the remaining balance due on August 18, 2021. The Senior Secured Term Loan Facility is secured by (a) a first priority security interest in substantially all of our assets (excluding stock in foreign subsidiaries in excess of 65%, assets of non-guarantors and subject to certain other exceptions) (other than the collateral that secures the Revolving Credit Facility described below on a first-priority basis) and (b) a second priority security interest in the assets securing the Revolving Credit Facility described below on a first-priority basis. Obligations under the Senior Secured Term Loan Facility are guaranteed by The Container Store Group, Inc. and each of The Container Store, Inc.'s U.S. subsidiaries. The Senior Secured Term Loan Facility includes restrictions on the ability of the Company's subsidiaries to incur additional liens and indebtedness, make investments and dispositions, pay dividends or make other distributions, make loans, prepay certain indebtedness and enter into sale and lease back transactions, among other restrictions. Under the Senior Secured Term Loan Facility, provided no event of default has occurred and is continuing, The Container Store, Inc. is permitted to pay dividends to The Container Store Group, Inc. in an amount not to exceed the sum of $10,000 plus if after giving effect to such dividend on a pro forma basis, the Consolidated Leverage Ratio (as defined in the Senior Secured Term Loan Facility) does not exceed 2.0 to 1.0, the Available Amount (as defined in the Senior Secured Term Loan Facility) during the term of the Senior Secured Term Loan Facility, and pursuant to certain other limited exceptions. The restricted net assets of the Company's consolidated subsidiaries was $236,207 as of March 31, 2018. As of March 31, 2018, we were in compliance with all Senior Secured Term Loan Facility covenants and no Event of Default (as such term is defined in the Senior Secured Term Loan Facility) had occurred. Related Party Debt On August 18, 2017, Green Credit Investors, L.P. funded $20,000 of the $300,000 Senior Secured Term Loan Facility based on the same terms, including interest rates, repayment terms, and collateral, as all other lenders. Green Credit Investors, L.P. is a related party due to its affiliation with LGP, the majority shareholder of the outstanding common stock of the Company. As of March 31, 2018, the principal amount due to Green Credit Investors, L.P. was zero, as it sold its interest in the loan syndicate. Revolving Credit Facility On April 6, 2012, The Container Store Group, Inc., The Container Store, Inc. and certain of its domestic subsidiaries entered into an asset-based revolving credit agreement with the lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Collateral Agent, and Wells Fargo Bank, National Association, as Syndication Agent (as amended, the "Revolving Credit Facility"). On August 18, 2017, the Company also entered into a fourth amendment (the "Revolving Amendment") to the Revolving Credit Facility dated as of April 6, 2012, which, among other things, extended the maturity date of the loans under the Revolving Credit Facility to the earlier of (i) August 18, 2022 and (ii) May 18, 2021 if any portion of the Senior Secured Term Loan Facility remains outstanding on such date and the maturity date of the Senior Secured Term Loan Facility is not extended. The aggregate principal amount of the facility is $100,000. Borrowings under the Revolving Credit Facility accrue interest at LIBOR+1.25%. In addition, the Revolving Credit Facility includes an uncommitted incremental revolving facility in the amount of $50,000, which is subject to receipt of lender commitments and satisfaction of specified conditions. In connection with the closing of the Term Loan Amendment and the Revolving Amendment, the Company borrowed a net amount of $20,000 on the Revolving Credit Facility. In addition, the Company recorded a loss on extinguishment of debt of $2,369 in the second quarter of fiscal 2017 associated with the Term Loan Amendment and the Revolving Amendment. The Revolving Credit Facility provides that proceeds are to be used for working capital and other general corporate purposes, and allows for swing line advances of up to $15,000 and the issuance of letters of credit of up to $40,000. The availability of credit at any given time under the Revolving Credit Facility is limited by reference to a borrowing base formula, which is the sum of (i) 90% of eligible credit card receivables and (ii) 90% of the appraised value of eligible inventory; minus (iii) certain availability reserves and (iv) outstanding credit extensions including letters of credit and existing revolving loans. The Revolving Credit Facility is secured by (a) a first-priority security interest in substantially all of our personal property, consisting of inventory, accounts receivable, cash, deposit accounts, and other general intangibles, and (b) a second-priority security interest in the collateral that secures the Senior Secured Term Loan Facility on a first-priority basis, as described above (excluding stock in foreign subsidiaries in excess of 65%, and assets of non-guarantor subsidiaries and subject to certain other exceptions). Obligations under the Revolving Credit Facility are guaranteed by The Container Store Group, Inc. and each of The Container Store, Inc.'s U.S. subsidiaries. The Revolving Credit Facility contains a number of covenants that, among other things, restrict our ability, subject to specified exceptions, to incur additional debt; incur additional liens and contingent liabilities; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve ourselves, engage in businesses that are not in a related line of business; make loans, advances or guarantees; engage in transactions with affiliates; and make investments. In addition, the financing agreements contain certain cross-default provisions. We are required to maintain a consolidated fixed-charge coverage ratio of 1.0 to 1.0 if excess availability is less than $10,000 at any time. As of March 31, 2018, we were in compliance with all Revolving Credit Facility covenants and no Event of Default (as such term is defined in the Revolving Credit Facility) had occurred. Under the Revolving Credit Facility, provided no event of default has occurred and is continuing, The Container Store, Inc. is permitted to pay dividends to The Container Store Group, Inc., in an amount not to exceed the sum of $10,000 plus if after giving effect to such dividend on a pro forma basis, the Consolidated Fixed Charge Coverage Ratio (as defined in the Revolving Credit Facility) is not less than 1.25 to 1.0, the Available Amount (as defined in the Revolving Credit Facility) during the term of the Revolving Credit Facility, and pursuant to certain other limited exceptions. There was $65,625 available under the Revolving Credit Facility as of March 31, 2018, based on the factors described above. Maximum borrowings, including letters of credit issued under the Revolving Credit Facility during the period ended March 31, 2018, were $38,490. 2014 Elfa Senior Secured Credit Facilities On April 1, 2014, Elfa entered into a master credit agreement with Nordea Bank AB ("Nordea"), which consists of a SEK 60.0 million (approximately $7,175 as of March 31, 2018) term loan facility (the "2014 Elfa Term Loan Facility") and a SEK 140.0 million (approximately $16,743 as of March 31, 2018) revolving credit facility (the "2014 Elfa Revolving Credit Facility," and together with the 2014 Elfa Term Loan Facility, the "2014 Elfa Senior Secured Credit Facilities"). The 2014 Elfa Senior Secured Credit Facilities term began on August 29, 2014 and matures on August 29, 2019. The remaining balance of the 2014 Elfa Term Loan Facility was paid on February 18, 2018, which was prior to the maturity date. Elfa was required to make quarterly principal payments under the 2014 Elfa Term Loan Facility in the amount of SEK 3.0 million (approximately $359 as of March 31, 2018). The 2014 Elfa Revolving Credit Facility bears interest at Nordea's base rate + 1.4%. In the fourth quarter of fiscal 2016, Elfa and Nordea agreed that the stated rates would apply through maturity. As of March 31, 2018, the Company had $16,743 of additional availability under the 2014 Elfa Revolving Credit Facility. Under the 2014 Elfa Senior Secured Credit Facilities, Elfa's ability to pay dividends to its parent entity, The Container Store, Inc., is based on its future net income and on historical intercompany practices as between Elfa and The Container Store, Inc. The 2014 Elfa Senior Secured Credit Facilities are secured by the majority of assets of Elfa. The 2014 Elfa Senior Secured Credit Facilities contains a number of covenants that, among other things, restrict Elfa's ability, subject to specified exceptions, to incur additional liens, sell or dispose of assets, merge with other companies, engage in businesses that are not in a related line of business and make guarantees. In addition, Elfa is required to maintain (i) a consolidated equity ratio (as defined in the 2014 Elfa Senior Secured Credit Facilities) of not less than 30% in year one and not less than 32.5% thereafter and (ii) a consolidated ratio of net debt to EBITDA (as defined in the 2014 Elfa Senior Secured Credit Facilities) of less than 3.2, the consolidated equity ratio tested at the end of each calendar quarter and the ratio of net debt to EBITDA tested as of the end of each fiscal quarter. As of March 31, 2018, Elfa was in compliance with all covenants and no Event of Default (as defined in the 2014 Elfa Senior Secured Credit Facilities) had occurred. Deferred financing costs The Company capitalizes certain costs associated with issuance of various debt instruments. These deferred financing costs are amortized to interest expense on a straight-line method, which is materially consistent with the effective interest method, over the terms of the related debt agreements. In fiscal 2017, the Company capitalized $9,640 of fees associated with the Term Loan Amendment that will be amortized through August 18, 2021 and $57 of fees associated with the Revolving Amendment that will be amortized through August 18, 2022. Amortization expense of deferred financing costs was $2,664, $1,921, $1,940, and $160 in fiscal 2017, fiscal 2016, fiscal 2015, and the five weeks ended April 2, 2016, respectively. The following is a schedule of amortization expense of deferred financing costs: Senior Secured Revolving Total Within 1 year $ $ $ 2 years 3 years 4 years 5 years — Thereafter — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Income taxes
Income taxes | 12 Months Ended |
Mar. 31, 2018 | |
Income taxes | |
Income taxes | 5. Income taxes Components of the (benefit) provision for income taxes are as follows: Fiscal Year Ended Five Weeks March 31, April 1, February 27, Income before income taxes: U.S. $ $ $ $ Foreign ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current Federal $ $ $ ) $ State Foreign ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current provision (benefit) ) Deferred Federal ) State ) Foreign ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred (benefit) provision ) ) Total (benefit) provision for income taxes $ ) $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Tax Cuts and Jobs Act (the "Tax Act") was enacted on December 22, 2017. The Tax Act made numerous changes to federal corporate tax law, including, but not limited to, the following: • reducing the U.S. federal corporate tax rate from 35% to 21%, • requiring companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, • imposing limitations on the deductibility of net interest expense and certain executive compensation arrangements under Section 162(m) of the Internal Revenue Code, • allowing for the immediate expensing of qualified property purchases, and • creation of a new tax on global intangible low-taxed income ("GILTI"). SEC Staff Accounting Bulletin ("SAB") 118 allows the Company to record provisional amounts for the impact of the Tax Act during a measurement period not to extend beyond one year from the enactment date to complete the accounting under ASC 740, Income Taxes . As of March 31, 2018, the Company had not completed the accounting for the tax effects of the enactment of the Tax Act, however, it was able to make reasonable estimates of the effects and, therefore, recorded provisional estimates for these items. The Company will continue to analyze the full effects of the Tax Act on the financial statements. As the Company prepares necessary data and continues to interpret the Tax Act and any additional guidance, the Company may make adjustments to the provisional amounts during the measurement period, as permitted by SAB 118. The impact of the Tax Act may differ from the current estimate, possibly materially, due to changes in interpretations and assumptions the Company has made and future guidance that may be issued. The Company anticipates completing the accounting for the tax effects of the Tax Act in a subsequent reporting period, prior to the end of the measurement period on December 22, 2018. The net provisional tax benefit recorded in fiscal 2017 related to the Tax Act was $15,689. Provisional amounts for the following income tax effects of the Tax Act have been recorded as of March 31, 2018 and are subject to change during fiscal 2018. Deferred tax effects Deferred tax balances were remeasured in fiscal 2017 based on the rates at which they are expected to reverse in the future, generally 21% pursuant to the Tax Act. The Company recorded a provisional benefit of $24,210 in fiscal 2017 related to the remeasurement of the Company's deferred tax balances, which is included as a component of (benefit) provision for income taxes on the consolidated statement of operations. The Company believes the remeasurement of its deferred tax balances is complete, except for changes in estimates that can result from finalizing the filing of its 2017 U.S. income tax return and changes that may be a direct impact of other provisional amounts due to the enactment of the Tax Act. In addition, the estimate may be impacted as the Company further analyzes state tax conformity to the federal tax changes and guidance issued by regulatory bodies that provide interpretive guidance of the Tax Act. Any adjustments to the provisional amounts will be recognized as a component of the provision for income taxes in the period in which such adjustments are determined within the annual period following the enactment of the Tax Act. The Company has not recorded any provisional amounts with respect to the GILTI provision of the Tax Act as the Company has not yet elected an accounting policy to determine whether it will recognize GILTI as a period cost when incurred or to recognize deferred taxes for basis differences expected to reverse. One-time transition tax on earnings of foreign subsidiaries The one-time transition tax is based on accumulated earnings and profits ("E&P") from our 1999 acquisition of Elfa for which U.S. income taxes were previously deferred. During fiscal 2017, a provisional expense of $8,521 was recorded related to the one-time transition tax on foreign earnings, which is net of foreign tax credit utilization of $4,178. Additionally, as a result of the Tax Act, future foreign tax credits of $5,184 were generated. We do not expect to utilize these credits to offset future taxable income, and have recorded a full valuation allowance related to these credits, the effect of which is included within the net transition tax liability. While we were able to make a reasonable estimate of the transition tax based on the guidance issued as of the date of these financial statements, the Company is continuing to gather additional information to be able to more precisely compute the final amount. Effective income tax rate reconciliation Since the Company has a fiscal year that does not follow the calendar year, it is subject to a blended U.S. corporate income tax rate of 31.5% for fiscal year 2017. The differences between the actual provision for income taxes and the amounts computed by applying the statutory federal tax rate to income before taxes are as follows: Fiscal Year Ended Five Weeks March 31, April 1, February 27, Provision computed at federal statutory rate $ $ $ $ Permanent differences One-time transition tax, net — — — Change in valuation allowance State income taxes, net of federal benefit Effect of foreign income taxes ) ) ) Remeasurement of deferred tax balances ) — — — Economic zone credits — — ) — Other, net ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Components of deferred tax assets and liabilities as of March 31, 2018 and April 1, 2017, are as follows: March 31, April 1, Deferred tax assets: Inventory $ $ Loss and credit carryforwards Stock compensation Accrued liabilities Capital assets ​ ​ ​ ​ ​ ​ ​ ​ Valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets Deferred tax liabilities: Intangibles ) ) Capital assets ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ) ) Net deferred tax liabilities $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company has recorded deferred tax assets and liabilities based upon estimates of their realizable value with such estimates based upon likely future tax consequences. In assessing the need for a valuation allowance, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more-likely-than-not that a deferred tax asset will not be realized, the Company records a valuation allowance. Foreign and domestic tax credits, net of valuation allowances, totaled approximately $1,545 at March 31, 2018 and approximately $1,490 at April 1, 2017. The various credits available at March 31, 2018 expire in the 2026 tax year. The Company had deferred tax assets for foreign and state net operating loss carryovers of $2,434 at March 31, 2018, and approximately $1,955 at April 1, 2017. Valuation allowances of $2,201 and $1,753 were recorded against the net operating loss deferred tax assets at March 31, 2018 and April 1, 2017, respectively. The Company files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. The Company is currently subject to U.S. federal income tax examinations for the year ended February 28, 2015 and forward. With respect to state and local jurisdictions and countries outside of the United States, the Company and subsidiaries are typically subject to examination for three to six years after the income tax returns have been filed. The Company accounts for the repatriation of foreign earnings in accordance with ASC 740-30. As such, the Company's earnings are partially reinvested based on the guidance provided in ASC 740-30. The Company has historically asserted that all undistributed earnings were indefinitely reinvested. Therefore, no provision has been made for deferred taxes related to any outside basis differences associated with Elfa, the Company's foreign subsidiary. The Company continues to assess the impact of the Tax Act, which could impact its assertion regarding indefinite reinvestment and potential future repatriation. As discussed above, once the accounting for the one-time transition tax on foreign earnings is complete, the Company will provide updated disclosures related to any potential changes to its assertions as appropriate. The Company does not have any uncertain tax positions, according to ASC 740-10, as of March 31, 2018 and April 1, 2017. |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Mar. 31, 2018 | |
Employee benefit plans | |
Employee benefit plans | 6. Employee benefit plans 401(k) Plan All domestic employees of the Company who complete 11 months of service are eligible to participate in the Company's 401(k) Plan. Participants may contribute up to 80% of annual compensation, limited to eighteen thousand annually (twenty-four thousand for participants aged 50 years and over) as of January 1, 2017. During fiscal 2015, the Company matched 100% of employee contributions up to 4% of compensation. Effective April 15, 2016, the Company temporarily ceased 401(k) matching contributions. The amount charged to expense for the Company's matching contribution was $0, $58, $3,165, and $309, for fiscal 2017, fiscal 2016, fiscal 2015, and the five weeks ended April 2, 2016, respectively. Nonqualified retirement plan The Company has a nonqualified retirement plan whereby certain employees can elect to defer a portion of their compensation into retirement savings accounts. Under the plan, there is no requirement that the Company match contributions, although the Company may contribute matching payments at its sole discretion. No matching contributions were made to the plan during any of the periods presented. The total fair value of the plan asset recorded in other current assets was $5,848 and $5,092 as of March 31, 2018 and April 1, 2017, respectively. The total carrying value of the plan liability recorded in accrued liabilities was $5,854 and $5,086 as of March 31, 2018 and April 1, 2017, respectively. Pension plan The Company provides pension benefits to the employees of Elfa under collectively bargained pension plans in Sweden, which are recorded in other long-term liabilities. The defined benefit plan provides benefits for participating employees based on years of service and final salary levels at retirement. Certain employees also participate in defined contribution plans for which Company contributions are determined as a percentage of participant compensation. The defined benefit plans are unfunded and approximately 3% of Elfa employees are participants in the defined benefit pension plan. The following is a reconciliation of the changes in the defined benefit obligations, a statement of funded status, and the related weighted-average assumptions: March 31, April 1, Change in benefit obligation: Projected benefit obligation, beginning of year $ $ Service cost Interest cost Benefits paid ) ) Actuarial loss Exchange rate loss (gain) ) ​ ​ ​ ​ ​ ​ ​ ​ Projected benefit obligation, end of year Fair value of plan assets, end of year — — ​ ​ ​ ​ ​ ​ ​ ​ Underfunded status, end of year $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Discount rate % % Rate of pay increases % % The following table provides the components of net periodic benefit cost for fiscal years 2017, 2016, 2015, and the five weeks ended April 2, 2016: Fiscal Year Ended Five Weeks March 31, April 1, February 27, Components of net periodic benefit cost: Defined benefit plans: Service cost $ $ $ $ Interest cost Amortization of unrecognized net loss — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic benefit cost for defined benefit plan Defined contribution plans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total net periodic benefit cost $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Mar. 31, 2018 | |
Stock-based compensation | |
Stock-based compensation | 7. Stock-based compensation On October 16, 2013, the Board approved the 2013 Incentive Award Plan ("2013 Equity Plan"). The 2013 Equity Plan provides for grants of nonqualified stock options, incentive stock options, restricted stock, restricted stock units, deferred stock awards, deferred stock units, stock appreciation rights, dividends equivalents, performance awards, and stock payments. On September 12, 2017, the Company's shareholders approved The Container Store Group Inc. Amended and Restated 2013 Incentive Award Plan (the "Amended and Restated Plan"). The Amended and Restated Plan (i) increased the number of shares of common stock available for issuance under such plan from 3,616,570 shares to 11,116,570 shares; (ii) was intended to allow awards under the Amended and Restated Plan to continue to qualify as tax-deductible performance-based compensation under Section 162(m) of the Internal Revenue Code of 1986, as amended, subject to anticipated changes resulting from the Tax Act as described below; and (iii) made certain minor technical changes to the terms of the Amended and Restated Plan. Pursuant to the Tax Act, the exception for performance-based compensation has been repealed, effective for tax years beginning after December 31, 2017, and, therefore, compensation previously intended to be performance-based may not be deductible unless it qualifies for limited transition relief applicable to certain amounts payable pursuant to a written binding contract that was in effect on November 2, 2017. As of March 31, 2018, there are 11,116,570 shares authorized and 7,884,679 shares available for grant under the Amended and Restated Plan. Awards that are surrendered or terminated without issuance of shares are available for future grants. Stock Options The Company grants nonqualified stock options under the Amended and Restated Plan annually to non-employee directors of the Company. The stock options granted vest in equal annual installments over 3 years. The stock options granted were approved by the Board and consisted of nonqualified stock options as defined by the IRS for corporate and individual tax reporting purposes. The following table summarizes the Company's annual stock option grants during fiscal 2017, 2016, and 2015: Grant Date Number of Stock August 3, 2015 August 1, 2016 September 12, 2017 In connection with our stock-based compensation plans, the Board considers the estimated fair value of the Company's stock when setting the stock option exercise price as of the date of each grant. The Board determines the exercise price of stock options based on the closing price of the Company's common stock as reported on The New York Stock Exchange on the grant date. Stock-based compensation cost is measured at the grant date fair value and is recognized as an expense in the consolidated statements of operations, on a straight-line basis, over the employee's requisite service period (generally the vesting period of the equity grant). The Company estimates forfeitures for option grants that are not expected to vest. The Company issues new shares of common stock upon stock option exercise. Stock-based compensation cost related to stock options was $1,520, $1,526, $1,556, and $147 during fiscal year 2017, 2016, 2015, and the five weeks ended April 2, 2016, respectively. As of March 31, 2018, there was a remaining unrecognized compensation cost of $2,956 (net of estimated forfeitures) that the Company expects to be recognized on a straight-line basis over a weighted-average remaining service period of approximately 1.3 years. The intrinsic value of shares exercised was $0, $0, and $2 during fiscal 2017, 2016, and 2015, respectively. The fair value of shares vested was $1,613, $1,464, and $1,367 during fiscal 2017, 2016, and 2015, respectively. The following table summarizes the Company's stock option activity during fiscal 2017, 2016, and 2015: Fiscal Year 2017 2016(1) 2015 Shares Weighted- Weighted- Aggregate Shares Weighted- Weighted- Aggregate Shares Weighted- Weighted- Aggregate Beginning balance $ $ $ Granted $ $ $ Exercised — $ — — $ — ) $ Forfeited ) $ ) $ ) $ Expired ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending balance $ $ $ $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested and exercisable at end of year $ $ $ $ — $ $ — (1) Fiscal 2016 includes 6,690 options forfeited and 576 options expired during the five-weeks ended April 2, 2016. There were no options granted or exercised during the five-weeks ended April 2, 2016. The fair value of stock options is estimated on the date of the grant using the Black-Scholes option pricing model with the following weighted-average assumptions: • Expected Term—The expected term of the options represents the period of time between the grant date of the options and the date the options are either exercised or canceled, including an estimate of options still outstanding. The Company utilized the simplified method for calculating the expected term for stock options as we do not have sufficient historical data to calculate based on actual exercise and forfeiture activity. • Expected Volatility—The expected volatility incorporates historical and implied volatility of comparable public companies for a period approximating the expected term. • Expected Dividend Yield—The expected dividend yield is based on the Company's expectation of not paying dividends on its common stock for the foreseeable future. • Risk-Free Interest Rate—The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and with a maturity that approximates the expected term. Stock options granted during fiscal year 2017, 2016, and 2015 were granted at a weighted-average grant date fair value of $2.33, $3.26, and $8.46, respectively. Such amounts were estimated using the Black Scholes option pricing model with the following weighted-average assumptions: Fiscal Year 2017 2016 2015 Expected term 6.0 years 6.0 years 6.0 years Expected volatility 60.6% 67.9% 50.3% Risk-free interest rate 1.9% 1.2% 1.7% Dividend yield 0% 0% 0% Restricted Stock Awards The Company periodically grants time-based and performance-based restricted stock awards under the Company's Amended and Restated Plan to key executives and officers of the Company. The following table summarizes the Company's restricted stock award grants during fiscal 2017 and 2016: Grant Date Total Grant Date Number of Time-Based Number of Performance- Number of July 1, 2016 $ 2.75 years (1) 3.75 years August 2, 2016 $ 2.67 years (1) 3.67 years December 12, 2017 $ 3 years (2) 3 years (1) These performance-based restricted stock awards vest based on achievement of fiscal 2016 performance targets and are also subject to time-based vesting requirements. (2) These performance-based restricted stock awards vest based on achievement of fiscal 2017 performance targets and are also subject to time-based vesting requirements. Stock-based compensation cost related to restricted stock awards was $506 and $463 for fiscal year 2017 and 2016, respectively. Unrecognized compensation expense related to outstanding restricted stock awards to employees as of March 31, 2018 is expected to be $490 (net of estimated forfeitures) to be recognized on a straight-line basis over a weighted average period of 1.3 years. The following table summarizes the Company's restricted stock awards activity during fiscal 2016 and fiscal 2017: Restricted Weighted Nonvested at April 2, 2016 — $ — Granted Vested ) Forfeited ) Withheld related to net settlement ) ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at April 1, 2017 $ Granted Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at March 31, 2018 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Mar. 31, 2018 | |
Shareholders' equity | |
Shareholders' equity | 8. Shareholders' equity Common stock During fiscal 2017 and fiscal 2016, the Company issued 27,073 and 26,923 shares of common stock in exchange for consultation services received from a third-party at a weighted-average price of $4.99 and $5.01 per share, respectively. As of March 31, 2018, the Company had 250,000,000 shares of common stock authorized, with a par value of $0.01, of which 48,072,187 were issued. The holders of common stock are entitled to one vote per common share. The holders have no preemptive or other subscription rights and there are no redemptions or sinking fund provisions with respect to such shares. Common stock is subordinate to any preferred stock outstanding with respect to rights upon liquidation and dissolution of the Company. Preferred stock As of March 31, 2018, the Company had 5,000,000 shares of preferred stock authorized, with a par value of $0.01, of which no shares were issued or outstanding. |
Accumulated other comprehensive
Accumulated other comprehensive income | 12 Months Ended |
Mar. 31, 2018 | |
Accumulated other comprehensive income | |
Accumulated other comprehensive income | 9. Accumulated other comprehensive income Accumulated other comprehensive income ("AOCI") consists of changes in our foreign currency hedge contracts, pension liability adjustment, and foreign currency translation. The components of AOCI, net of tax, were as follows: Foreign Pension Foreign Total Balance at February 27, 2016 $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive (loss) income before reclassifications, net of tax — ) Amounts reclassified to earnings, net of tax — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net current period other comprehensive income (loss) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at April 2, 2016 $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive loss before reclassifications, net of tax ) ) ) ) Amounts reclassified to earnings, net of tax — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net current period other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at April 1, 2017 $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive loss before reclassifications, net of tax ) Amounts reclassified to earnings, net of tax ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net current period other comprehensive loss ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at March 31, 2018 $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The unrecognized net actuarial loss included in accumulated other comprehensive income as of March 31, 2018 and April 1, 2017 was $1,793 and $1,444, respectively. Amounts reclassified from AOCI to earnings for the pension liability adjustment category are generally included in cost of sales and selling, general and administrative expenses in the Company's consolidated statements of operations. For a description of the Company's employee benefit plans, refer to Note 6. Amounts reclassified from AOCI to earnings for the foreign currency hedge instruments category are generally included in cost of sales in the Company's consolidated statements of operations. For a description of the Company's use of foreign currency forward contracts, refer to Note 10. |
Foreign currency forward contra
Foreign currency forward contracts | 12 Months Ended |
Mar. 31, 2018 | |
Foreign currency forward contracts | |
Foreign currency forward contracts | 10. Foreign currency forward contracts The Company's international operations and purchases of its significant product lines from foreign suppliers are subject to certain opportunities and risks, including foreign currency fluctuations. In the TCS segment, we utilize foreign currency forward contracts in Swedish krona to stabilize our retail gross margins and to protect our domestic operations from downward currency exposure by hedging purchases of inventory from our wholly owned subsidiary, Elfa. Forward contracts in the TCS segment are designated as cash flow hedges, as defined by ASC 815. In the Elfa segment, we utilize foreign currency forward contracts to hedge purchases, primarily of raw materials, that are transacted in currencies other than Swedish krona, which is the functional currency of Elfa. Forward contracts in the Elfa segment are economic hedges, and are not designated as cash flow hedges as defined by ASC 815. In fiscal 2017, fiscal 2016, and fiscal 2015, the TCS segment used forward contracts for 80%, 78%, and 54% of inventory purchases in Swedish krona each year, respectively. In fiscal 2017, fiscal 2016, and fiscal 2015, the Elfa segment used forward contracts to purchase U.S. dollars in the amount of $1,648, $3,905, and $5,495, which represented 21%, 56%, and 67% of the Elfa segment's U.S. dollar purchases each year, respectively. In the five-weeks ended April 2, 2016, the TCS segment used forward contracts for 0% of inventory purchases in Swedish krona and the Elfa segment used forward contracts to purchase U.S. dollars in the amount of $155, which represented 23% of the Elfa segment's U.S. dollar purchases. Generally, the Company's foreign currency forward contracts have terms from 1 to 12 months and require the Company to exchange currencies at agreed-upon rates at settlement. The counterparties to the contracts consist of a limited number of major domestic and international financial institutions. The Company does not hold or enter into financial instruments for trading or speculative purposes. The Company records its foreign currency forward contracts on a gross basis and generally does not require collateral from these counterparties because it does not expect any losses from credit exposure. The Company records all foreign currency forward contracts on its consolidated balance sheet at fair value. The Company accounts for its foreign currency hedge instruments in the TCS segment as cash flow hedges, as defined. Changes in the fair value of the foreign currency hedge instruments that are considered to be effective, as defined, are recorded in other comprehensive income (loss) until the hedged item (inventory) is sold to the customer, at which time the deferred gain or loss is recognized through cost of sales. Any portion of a change in the foreign currency hedge instrument's fair value that is considered to be ineffective, as defined, or that the Company has elected to exclude from its measurement of effectiveness, is immediately recorded in earnings as cost of sales. The Company assessed the effectiveness of the foreign currency hedge instruments and determined the foreign currency hedge instruments were highly effective during the fiscal years ended March 31, 2018, April 1, 2017, and February 27, 2016. Forward contracts not designated as hedges in the Elfa segment are adjusted to fair value as selling, general, and administrative expenses on the consolidated statements of operations. During fiscal 2017, the Company recognized a net unrealized loss of $184 associated with the change in fair value of forward contracts not designated as hedge instruments. The Company had $102 in accumulated other comprehensive loss related to foreign currency hedge instruments at March 31, 2018. Settled foreign currency hedge instruments related to inventory on hand as of March 31, 2018 represents $372 of accumulated unrealized gain. The Company expects the unrealized gain of $372, net of taxes, to be reclassified into earnings over the next 12 months as the underlying inventory is sold to the end customer. The change in fair value of the Company's foreign currency hedge instruments that qualify as cash flow hedges and are included in accumulated other comprehensive income (loss), net of taxes, are presented in Note 9 of these financial statements. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2018 | |
Leases | |
Leases | 11. Leases The Company conducts all of its U.S. operations from leased facilities that include a corporate headquarters/warehouse facility and 90 store locations. The corporate headquarters/warehouse and stores are under operating leases that will expire over the next 1 to 20 years. The Company also leases computer hardware under operating leases that expire over the next few years. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. Most of the operating leases for the stores contain a renewal option at predetermined rental payments for periods of 5 to 20 years. This option enables the Company to retain use of facilities in desirable operating areas. The rental payments under certain store leases are based on a minimum rental plus a percentage of the sales in excess of a stipulated amount. These payments are accounted for as contingent rent and expensed when incurred. The following is a schedule of future minimum lease payments due under noncancelable operating and capital leases: Operating Capital Within 1 year $ $ 2 years 3 years 4 years — 5 years — Thereafter — ​ ​ ​ ​ ​ ​ ​ ​ Total minimum lease payments $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less amount representing interest ) ​ ​ ​ ​ ​ ​ ​ ​ Present value of minimum lease payments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Rent expense for fiscal years 2017, 2016, 2015, and the five weeks ended April 2, 2016 was $86,070, $80,647, $75,834, and $6,495, respectively. Included in rent expense is percentage-of-sales rent expense of $354, $416, $450, and $32 for fiscal years 2017, 2016, 2015, and the five weeks ended April 2, 2016, respectively. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Mar. 31, 2018 | |
Commitments and contingencies | |
Commitments and contingencies | 12. Commitments and contingencies In connection with insurance policies and other contracts, the Company has outstanding standby letters of credit totaling $3,901 as of March 31, 2018. The Company is subject to ordinary litigation and routine reviews by regulatory bodies that are incidental to its business, none of which is expected to have a material adverse effect on the Company's consolidated financial statements on an individual basis or in the aggregate. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Mar. 31, 2018 | |
Fair value measurements | |
Fair value measurements | 13. Fair value measurements Under generally accepted accounting principles, the Company is required to a) measure certain assets and liabilities at fair value or b) disclose the fair values of certain assets and liabilities recorded at cost. Accounting standards define fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. Fair value is calculated assuming the transaction occurs in the principal or most advantageous market for the asset or liability and includes consideration of non-performance risk and credit risk of both parties. Accounting standards pertaining to fair value establish a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value. These tiers include: • Level 1—Valuation inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. • Level 2—Valuation inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Valuation inputs are unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are determined using model-based techniques that include option pricing models, discounted cash flow models and similar techniques. As of March 31, 2018 and April 1, 2017, the Company held certain items that are required to be measured at fair value on a recurring basis. These included the nonqualified retirement plan and foreign currency forward contracts. The nonqualified retirement plan consists of investments purchased by employee contributions to retirement savings accounts. The Company's international operations and purchases of its significant product lines from foreign suppliers are subject to certain opportunities and risks, including foreign currency fluctuations. The Company utilizes foreign currency forward exchange contracts to stabilize its retail gross margins and to protect its operations from downward currency exposure. Foreign currency hedge instruments are related to the Company's attempts to hedge foreign currency fluctuation on purchases of inventory in Swedish krona. The Company's foreign currency hedge instruments consist of over-the-counter (OTC) contracts, which are not traded on a public exchange. See Note 10 for further information on the Company's hedging activities. The fair value of the foreign currency forward contracts is determined based on the market approach which utilizes inputs that are readily available in public markets or can be derived from information available in publicly quoted markets for comparable assets. Therefore, the Company has categorized this item as Level 2. The Company also considers counterparty credit risk and its own credit risk in its determination of all estimated fair values. The Company has consistently applied these valuation techniques in all periods presented and believes it has obtained the most accurate information available for the types of contracts it holds. The following items are measured at fair value on a recurring basis, subject to the disclosure requirements of ASC 820, Fair Value Measurements, at March 31, 2018 and April 1, 2017: Description Balance Sheet Location March 31, April 1, Assets Nonqualified retirement plan(1) N/A Other current assets $ $ Foreign currency forward contracts Level 2 Other current assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) The fair value amount of the nonqualified retirement plan is measured at fair value using the net asset value per share practical expedient, and therefore, is not classified in the fair value hierarchy. The fair value of long-term debt was estimated using quoted prices as well as recent transactions for similar types of borrowing arrangements (level 2 valuations). As of March 31, 2018 and April 1, 2017, the estimated fair value of the Company's long-term debt, including current maturities, was $295,605 and $295,005, respectively. |
Segment reporting
Segment reporting | 12 Months Ended |
Mar. 31, 2018 | |
Segment reporting | |
Segment reporting | 14. Segment reporting The Company's reportable segments were determined on the same basis as how management evaluates performance internally by the Chief Operating Decision Maker ("CODM"). The Company has determined that the Chief Executive Officer is the CODM and the Company's two reportable segments consist of TCS and Elfa. The TCS segment includes the Company's retail stores, website and call center, as well as the installation and organization services business. The Elfa segment includes the manufacturing business that produces the elfa® brand products that are sold domestically exclusively through the TCS segment, as well as on a wholesale basis in approximately 30 countries around the world with a concentration in the Nordic region of Europe. The intersegment sales in the Elfa column represent elfa® product sales to the TCS segment. These sales and the related gross margin on merchandise recorded in TCS inventory balances at the end of the period are eliminated for consolidation purposes in the Eliminations column. The net sales to third parties in the Elfa column represent sales to customers outside of the United States. The Company has determined that adjusted earnings before interest, tax, depreciation, and amortization ("Adjusted EBITDA") is the profit or loss measure that the CODM uses to make resource allocation decisions and evaluate segment performance. Adjusted EBITDA assists management in comparing our performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect our core operations and, therefore, are not included in measuring segment performance. Adjusted EBITDA is calculated in accordance with the Senior Secured Term Loan Facility and the Revolving Credit Facility and we define Adjusted EBITDA as net income before interest, taxes, depreciation and amortization, certain non-cash items, and other adjustments that we do not consider in our evaluation of ongoing operating performance from period to period. Fiscal year ended March 31, 2018 TCS Elfa Eliminations Total Net sales to third parties $ $ $ — $ Intersegment sales — ) — Adjusted EBITDA ) Depreciation and amortization — Interest expense, net — Capital expenditures(1) — Goodwill — — Trade names(1) — Assets(1) ) Fiscal year ended April 1, 2017 TCS Elfa Eliminations Total Net sales to third parties $ $ $ — $ Intersegment sales — ) — Adjusted EBITDA(2) Depreciation and amortization — Interest expense, net — Capital expenditures(1) — Goodwill — — Trade names(1) — Assets(1) ) Fiscal year ended February 27, 2016 TCS Elfa Eliminations Total Net sales to third parties $ $ $ — $ Intersegment sales — ) — Adjusted EBITDA Depreciation and amortization — Interest expense, net — Capital expenditures(1) — Goodwill — — Trade names(1) — Assets(1) ) Five weeks ended April 2, 2016 TCS Elfa Eliminations Total Net sales to third parties $ $ $ — $ Intersegment sales — ) — Adjusted EBITDA ) Depreciation and amortization — Interest expense, net — Capital expenditures(1) — (1) Tangible assets and trade names in the Elfa column are located outside of the United States. (2) The TCS segment includes a net benefit of $3.9 million related to amended and restated employment agreements entered into with key executives during the first quarter, leading to a reversal of accrued deferred compensation associated with the original employment agreements. A reconciliation of Adjusted EBITDA by segment to income before taxes is set forth below: Fiscal Year Ended Five Weeks March 31, April 1, February 27, Income before taxes $ $ $ $ Add: Depreciation and amortization Interest expense, net Pre-opening costs(a) Non-cash rent(b) ) ) ) ) Stock-based compensation(c) Loss on extinguishment of debt(d) — — — Foreign exchange (gains) losses(e) ) ) Optimization Plan implementation charges(f) — — — Elfa manufacturing facility closure(g) — — — Other adjustments(h) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Adjusted EBITDA ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Non-capital expenditures associated with opening new stores and relocating stores, including rent, marketing expenses, travel and relocation costs, and training costs. We adjust for these costs to facilitate comparisons of our performance from period to period. (b) Reflects the extent to which our annual GAAP rent expense has been above or below our cash rent payment due to lease accounting adjustments. The adjustment varies depending on the average age of our lease portfolio (weighted for size), as our GAAP rent expense on younger leases typically exceeds our cash cost, while our GAAP rent expense on older leases is typically less than our cash cost. (c) Non-cash charges related to stock-based compensation programs, which vary from period to period depending on volume and vesting timing of awards. We adjust for these charges to facilitate comparisons from period to period. (d) Loss recorded as a result of the amendments made to the Senior Secured Term Loan Facility and the Revolving Credit Facility in August 2017, which we do not consider in our evaluation of our ongoing operations. (e) Realized foreign exchange transactional gains/losses our management does not consider in our evaluation of our ongoing operations. (f) Charges incurred to implement our Optimization Plan, which include certain consulting costs recorded in selling, general and administrative expenses, cash severance payments associated with the elimination of certain full-time positions at the TCS segment recorded in other expenses, and cash severance payments associated with organizational realignment at the Elfa segment recorded in other expenses, which we do not consider in our evaluation of ongoing performance. (g) Charges related to the closure of an Elfa manufacturing facility in Lahti, Finland in December 2017, recorded in other expenses, which we do not consider in our evaluation of our ongoing performance. (h) Other adjustments include amounts our management does not consider in our evaluation of our ongoing operations, including certain severance and other charges. The following table shows sales by merchandise category as a percentage of total net sales for fiscal years 2017, 2016, and 2015: Fiscal year ended March 31, April 1, February 27, Custom Closets(1) % % % Storage, Long-Term Storage, Shelving % % % Kitchen and Trash % % % Office, Collections, Hooks % % % Bath, Travel, Laundry % % % Gift Packaging, Seasonal, Impulse % % % Other % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes elfa® and TCS Closets® products and installation services as well as closet completion products sold by the TCS segment and Elfa segment sales to third parties. |
Net income per common share
Net income per common share | 12 Months Ended |
Mar. 31, 2018 | |
Net income per common share | |
Net income per common share | 15. Net income per common share Basic net income per common share is computed as net income divided by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed as net income divided by the weighted-average number of common shares outstanding for the period plus common stock equivalents consisting of shares subject to stock-based awards with exercise prices less than or equal to the average market price of the Company's common stock for the period, to the extent their inclusion would be dilutive. Potential dilutive securities are excluded from the computation of diluted net income per share if their effect is anti-dilutive. The following is a reconciliation of net income and the number of shares used in the basic and diluted net income per share calculations: Fiscal Year Ended Five Weeks March 31, April 1, February 27, Numerator: Net income $ $ $ $ Denominator: Weighted-average common shares—basic Options and other dilutive securities — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares—diluted Net income per common share—basic and diluted $ $ $ $ Antidilutive securities not included: Stock options outstanding Nonvested restricted stock awards — — |
Quarterly results of operations
Quarterly results of operations (unaudited) | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly results of operations (unaudited) | |
Quarterly results of operations (unaudited) | 16. Quarterly results of operations (unaudited) Due to the seasonal nature of our business, fourth quarter operating results historically represent a larger share of annual net sales and operating income primarily due to Our Annual elfa® Sale. We follow the same accounting policies for preparing quarterly and annual financial data. The table below summarizes quarterly results for fiscal 2017 and 2016: Fiscal Year Ended March 31, 2018 Fourth Quarter Third Quarter Second Quarter First Quarter Net sales $ $ $ $ Gross profit Income (loss) from operations ) Net (loss) income ) ) ) Weighted-average shares used in computing basic net (loss) income per share Weighted-average shares used in computing diluted net (loss) income per share Basic and diluted net (loss) income per common share $ ) $ $ ) $ ) Fiscal Year Ended April 1, 2017 Fourth Quarter Third Quarter Second Quarter First Quarter Net sales $ $ $ $ Gross profit Income (loss) from operations Net income (loss) ) Weighted-average shares used in computing basic net income (loss) per share Weighted-average shares used in computing diluted net income (loss) per share Basic and diluted net income (loss) per common share $ $ $ $ ) |
Transition Period Financial Inf
Transition Period Financial Information | 12 Months Ended |
Mar. 31, 2018 | |
Transition Period Financial Information | |
Transition Period Financial Information | 17. Transition Period Financial Information On March 30, 2016, the Board of Directors approved a change in the Company's fiscal year end from the Saturday closest to February 28 to the Saturday closest to March 31 of each year. Accordingly, the Company is presenting audited financial statements for the five-week transition period from February 28, 2016 to April 2, 2016. The following table provides certain unaudited comparative financial information of the same period of the prior year. The periods below both represent 35 day periods. Five Weeks Ended (In thousands, except share and per share amounts) April 2, April 4, (unaudited) Consolidated statement of operations data: Net sales $ $ Gross profit Selling, general, and administrative expenses Income from operations Income before taxes Provision for income taxes Net income Net income per common share: Basic and diluted $ $ Weighted-average common shares—basic and diluted |
Optimization Plan
Optimization Plan | 12 Months Ended |
Mar. 31, 2018 | |
Optimization Plan | |
Optimization Plan | 18. Optimization Plan On May 23, 2017, the Company announced a four-part plan designed to optimize its consolidated business and drive improved sales and profitability (the "Optimization Plan"), which included sales initiatives, certain full-time position eliminations at TCS, organizational realignment at Elfa and ongoing savings and efficiency efforts. In fiscal 2017, the Company incurred the following charges related to the implementation of the Optimization Plan: Income Statement Location Fifty-Two Consulting fees and other costs Selling, general & administrative $ Severance—full-time position eliminations at TCS Other expenses Severance—organizational realignment at Elfa Other expenses ​ ​ ​ ​ ​ ​ ​ Total Optimization Plan charges $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Certain aspects of the Optimization Plan meet the definition of exit or disposal costs as defined in the Accounting Standards Codification ("ASC") Topic 420, Exit or Disposal Cost Obligations . The following table summarizes the exit or disposal activities during fiscal 2017: TCS Severance Liability Balance as of April 1, 2017 $ — Costs Incurred Payments ) ​ ​ ​ ​ ​ Liability Balance as of March 31, 2018 $ As of Total costs incurred to date $ Total costs expected to be incurred $ The balance of $48 as of March 31, 2018 is recorded in the Accrued liabilities line item in the Consolidated Balance Sheets. The Company does not expect future severance costs to be incurred related to full-time position eliminations at TCS as the actions were completed during the first quarter of fiscal 2017. |
Schedule I-Condensed Financial
Schedule I-Condensed Financial Information of registrant | 12 Months Ended |
Mar. 31, 2018 | |
Schedule I-Condensed Financial Information of registrant | |
Schedule I-Condensed Financial Information of registrant | Schedule I—Condensed Financial Information of registrant— The Container Store Group, Inc. (parent company only) Condensed balance sheets (in thousands) March 31, April 1, Assets Current assets: Accounts receivable from subsidiaries $ $ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets Noncurrent assets: Investment in subsidiaries ​ ​ ​ ​ ​ ​ ​ ​ Total noncurrent assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ Liabilities and shareholders' equity Current liabilities: Accounts payable to subsidiaries $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities — — Noncurrent liabilities — — ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities — — Shareholders' equity: Common stock Additional paid-in capital Retained deficit ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total shareholders' equity ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and shareholders' equity $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Schedule I—The Container Store Group, Inc. (parent company only) Condensed statements of operations Fiscal Year Ended (in thousands) March 31, April 1, February 27, Five Weeks Net sales — — — — Cost of sales (excluding depreciation and amortization) — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit — — — — Selling, general, and administrative expenses (excluding depreciation and amortization) — — — — Stock-based compensation — — — — Pre-opening costs — — — — Depreciation and amortization — — — — Restructuring charges — — — — Other expenses — — — — Loss (gain) on disposal of assets — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from operations — — — — Interest expense — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before taxes and equity in net income of subsidiaries — — — — Provision for income taxes — — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before equity in net income of subsidiaries — — — — Net income of subsidiaries ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Schedule I—The Container Store Group, Inc. (parent company only) Condensed statements of comprehensive income Fiscal year ended Five Weeks (In thousands) March 31, April 1, February 27, Net income $ $ $ $ Unrealized gain (loss) on financial instruments, net of tax provision (benefit) of $30, $(85), $606, and $7 ) Pension liability adjustment, net of tax provision of $98, $142, $39, and $0 ) ) ) Foreign currency translation adjustment ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comprehensive income $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Schedule I—The Container Store Group, Inc. (parent company only) Notes to Condensed Financial Statements (In thousands, except share amounts and unless otherwise stated) March 31, 2018 Note 1: Basis of presentation In the parent-company-only financial statements, The Container Store Group, Inc.'s investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. The parent-company-only financial statements should be read in conjunction with the Company's consolidated financial statements. A condensed statement of cash flows was not presented because The Container Store Group, Inc. had no cash flow activities during fiscal 2017, fiscal 2016, fiscal 2015, or the five-weeks ended April 2, 2016. Note 2: Guarantees and restrictions The Container Store, Inc., a subsidiary of the Company, has $294,375 of long-term debt outstanding under the Senior Secured Term Loan Facility, as of March 31, 2018. Under the terms of the Senior Secured Term Loan Facility, The Container Store Group, Inc. and the domestic subsidiaries of The Container Store, Inc. have guaranteed the payment of all principal and interest. In the event of a default under the Senior Secured Term Loan Facility, The Container Store Group, Inc. and the domestic subsidiaries of The Container Store, Inc. will be directly liable to the debt holders. On August 18, 2017, The Container Store, Inc. entered into a fourth amendment (the "Term Loan Amendment") to the Senior Secured Term Loan Facility dated as of April 6, 2012. The fourth amendment amended the Senior Secured Term Loan Facility to, among other things, (i) extend the maturity date of the loans under the Senior Secured Term Loan Facility to August 18, 2021, (ii) add a maximum leverage covenant of 5.0:1.0 which steps down by 0.25x on June 30 of each year commencing on June 30, 2018, (iii) increase the applicable interest rate margin to 7.00% for LIBOR loans and 6.00% for base rate loans, (iv) reduce the aggregate principal amount of the Senior Secured Term Loan Facility to $300,000, (v) increase principal amortization to 2.5% per annum, (vi) require a 3.0% upfront fee on the aggregate principal amount of the Senior Secured Term Loan Facility, and (vii) impose a 1% premium if a voluntary prepayment is made from the proceeds of a repricing transaction within 12 months after August 18, 2017. The Senior Secured Term Loan Facility also includes restrictions on the ability of The Container Store Group, Inc. and its subsidiaries to incur additional liens and indebtedness, make investments and dispositions, pay dividends or make other distributions, make loans, prepay certain indebtedness and enter into sale and lease back transactions, among other restrictions. Under the Senior Secured Term Loan Facility, provided no event of default has occurred and is continuing, The Container Store, Inc. is permitted to pay dividends to The Container Store Group, Inc. in an amount not to exceed the sum of $10,000 plus if after giving effect to such dividend on a pro forma basis, the Consolidated Leverage Ratio (as defined in the Senior Secured Term Loan Facility) does not exceed 2.0 to 1.0, the Available Amount (as defined in the Senior Secured Term Loan Facility) during the term of the Senior Secured Term Loan Facility, and pursuant to certain other limited exceptions. The restricted net assets of the Company's consolidated subsidiaries was $236,207 as of March 31, 2018. As of March 31, 2018, The Container Store, Inc. also has $65,625 of available credit on the Revolving Credit Facility that provides commitments of up to $100,000 for revolving loans and letters of credit. The Container Store Group, Inc. and the domestic subsidiaries of The Container Store, Inc. have guaranteed all obligations under the Revolving Credit Facility. In the event of default under the Revolving Credit Facility, The Container Store Group, Inc. and the domestic subsidiaries of The Container Store, Inc. will be directly liable to the debt holders. The Revolving Credit Facility includes restrictions on the ability of The Container Store Group, Inc. and its subsidiaries to incur additional liens and indebtedness, make investments and dispositions, pay dividends or make other transactions, among other restrictions. On October 8, 2015, The Container Store, Inc. executed an amendment to the Revolving Credit Facility ("Amendment No. 2"). Under the terms of Amendment No. 2, among other items, the maturity date of the loan was extended from April 6, 2017 to the earlier of (x) October 8, 2020 and (y) January 6, 2019, if any of The Container Store, Inc.'s obligations under its term loan credit facility remain outstanding on such date and have not been refinanced with debt that has a final maturity date that is no earlier than April 6, 2019 or subordinated debt. Under the Revolving Credit Facility, provided no event of default has occurred and is continuing, The Container Store, Inc. is permitted to pay dividends to The Container Store Group, Inc., in an amount not to exceed the sum of $10,000 plus if after giving effect to such dividend on a pro forma basis, the Consolidated Fixed Charge Coverage Ratio (as defined in the Revolving Credit Facility) is not less than 1.25 to 1.0, the Available Amount (as defined in the Revolving Credit Facility) during the term of the Revolving Credit Facility, and pursuant to certain other limited exceptions. On August 18, 2017, The Container Store, Inc. also entered into a fourth amendment (the "Revolving Amendment") to the Revolving Credit Facility dated as of April 6, 2012, which, among other things, extended the maturity date of the loans under the Revolving Credit Facility to the earlier of (i) August 18, 2022 and (ii) May 18, 2021 if any portion of the Senior Secured Term Loan Facility remains outstanding on such date and the maturity date of the Senior Secured Term Loan Facility is not extended. |
Nature of business and summar29
Nature of business and summary of significant accounting policies (Policies) | 12 Months Ended |
Mar. 31, 2018 | |
Nature of business and summary of significant accounting policies | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). |
Basis of consolidation | Basis of consolidation The consolidated financial statements include our accounts and those of the Company's wholly owned subsidiaries. The Company eliminates all significant intercompany balances and transactions, including intercompany profits, in consolidation. |
Fiscal year | Fiscal year The Company follows a 4-4-5 fiscal calendar, whereby each fiscal quarter consists of thirteen weeks grouped into two four-week "months" and one five-week "month", and its fiscal year ends on the Saturday closest to March 31 st . Elfa's fiscal year ends on the last day of the calendar month of March. Prior to fiscal year 2016, the Company's fiscal year ended on the Saturday closest to February 28 th . All references herein to "fiscal 2017" represent the results of the 52-week fiscal year ended March 31, 2018, and references to "fiscal 2016" represent the results of the 52-week fiscal year ended April 1, 2017. In addition, all references herein to "fiscal 2015" represent the results of the 52-week fiscal year ended February 27, 2016. |
Management estimates | Management estimates The preparation of the Company's consolidated financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Significant accounting judgments and estimates include fair value estimates for indefinite-lived intangible assets, inventory loss reserve, assessments of long-lived asset impairments, gift card breakage, and assessment of valuation allowances on deferred tax assets. |
Revenue recognition | Revenue recognition Revenue from sales related to retail operations is recognized when the merchandise is delivered to the customer at the point of sale. Revenue from sales that are shipped or delivered directly to customers is recognized upon estimated delivery to the customer and includes applicable shipping or delivery revenue. Revenue from sales that are installed is recognized upon completion of the installation service to the customer and includes applicable installation revenue. Revenue from sales of other services is recognized upon the completion of the service. Revenue from sales related to manufacturing operations is recorded upon shipment. Sales are recorded net of sales taxes collected from customers. A sales return allowance is recorded for estimated returns of merchandise subsequent to the balance sheet date that relate to sales prior to the balance sheet date. The returns allowance is based on historical return patterns and reduces sales and cost of sales, accordingly. Merchandise exchanges of similar product and price are not considered merchandise returns and, therefore, are excluded when calculating the sales returns allowance. |
Gift cards and merchandise credits | Gift cards and merchandise credits Gift cards are sold to customers in retail stores, through the call center and website, and through certain third parties. We issue merchandise credits in our stores and through our call center. Revenue from sales of gift cards and issuances of merchandise credits is recognized when the gift card is redeemed by the customer, or the likelihood of the gift card being redeemed by the customer is remote (gift card breakage). The gift card breakage rate is determined based upon historical redemption patterns. An estimate of the rate of gift card breakage is applied over the period of estimated performance (48 months as of the end of fiscal 2017) and the breakage amounts are included in net sales in the consolidated statement of operations. The Company recorded $1,656, $1,072, $948, and $73 of gift card breakage in fiscal years 2017, 2016, 2015, and the five weeks ended April 2, 2016, respectively. |
Cost of sales | Cost of sales Cost of sales related to retail operations includes the purchase cost of inventory sold (net of vendor rebates), in-bound freight, as well as inventory loss reserves. Costs incurred to ship or deliver merchandise to customers, as well as direct installation and organization services costs, are also included in cost of sales. Cost of sales from manufacturing operations includes costs associated with production, including materials, wages, other variable production costs, and other applicable manufacturing overhead. |
Leases | Leases Rent expense on operating leases, including rent holidays and scheduled rent increases, is recorded on a straight-line basis over the term of the lease, commencing on the date the Company takes possession of the leased property. Rent expense is recorded in selling, general, and administrative expenses. Pre-opening rent expense is recorded in pre-opening costs in the consolidated income statement. The net excess of rent expense over the actual cash paid has been recorded as deferred rent in the accompanying consolidated balance sheets. Tenant improvement allowances are also included in the accompanying consolidated balance sheets as deferred rent liabilities and are amortized as a reduction of rent expense over the term of the lease from the possession date. Contingent rental payments, typically based on a percentage of sales, are recognized in rent expense when payment of the contingent rent is probable. |
Advertising | Advertising All advertising costs of the Company are expensed when incurred, or upon the release of the initial advertisement, except for production costs related to catalogs and direct mailings to customers, which are initially capitalized. Production costs related to catalogs and direct mailings consist primarily of printing and postage and are expensed when mailed to the customer, except for direct mailings related to promotional campaigns, which are expensed over the period during which the promotional sales are expected to occur. Advertising costs are recorded in selling, general, and administrative expenses. Pre-opening advertising costs are recorded in pre-opening costs. Catalog and direct mailings costs capitalized at March 31, 2018 and April 1, 2017, amounted to $375 and $605 respectively, and are recorded in prepaid expenses on the accompanying consolidated balance sheets. Total advertising expense incurred for fiscal years 2017, 2016, 2015, and the five-weeks ended April 2, 2016 was $32,860, $31,525, $32,343, and $2,164, respectively. |
Pre-opening costs | Pre-opening costs Non-capital expenditures associated with opening new stores, including rent, marketing expenses, travel and relocation costs, and training costs, are expensed as incurred and are included in pre-opening costs in the consolidated statement of operations. |
Income taxes | Income taxes We account for income taxes utilizing Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 740, Income Taxes . ASC 740 requires an asset and liability approach, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. There were no uncertain tax positions requiring accrual as of March 31, 2018 and April 1, 2017. Valuation allowances are established against deferred tax assets when it is more-likely-than-not that the realization of those deferred tax assets will not occur. Valuation allowances are released as positive evidence of future taxable income sufficient to realize the underlying deferred tax assets becomes available. Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in the tax rate is recognized through continuing operations in the period that includes the enactment of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. We operate in certain jurisdictions outside the United States. ASC 740-30 provides that the undistributed earnings of a foreign subsidiary be accounted for as a temporary difference under the presumption that all undistributed earnings will be distributed to the parent company as a dividend. Sufficient evidence of the intent to permanently reinvest the earnings in the jurisdiction where earned precludes a company from recording the temporary difference. For purposes of ASC 740-30, we are partially reinvested in our Swedish subsidiary Elfa and thus do not record a temporary difference. We are partially reinvested since we have permanently reinvested our past earnings at Elfa; however, we do not assert that all future earnings will be reinvested into Elfa. |
Stock-based compensation | Stock-based compensation The Company accounts for stock-based compensation in accordance ASC 718, Compensation-Stock Compensation , which requires the fair value of stock-based payments to be recognized in the consolidated financial statements as compensation expense over the requisite service period. For time-based awards, compensation expense is recognized on a straight line basis, net of forfeitures, over the requisite service period for awards that actually vest. For performance-based awards, compensation expense is estimated based on achievement of the performance condition and is recognized using the accelerated attribution method over the requisite service period for awards that actually vest. Stock-based compensation expense is recorded in the stock-based compensation line in the consolidated statements of operations. Stock Options The Board determines the exercise price of stock options based on the closing price of the Company's common stock as reported on The New York Stock Exchange on the grant date. The Company estimates the fair value of each stock option grant on the date of grant based upon the Black-Scholes option-pricing model. This model requires various significant judgmental assumptions in order to derive a final fair value determination for each type of award including: • Expected Term—The expected term of the options represents the period of time between the grant date of the options and the date the options are either exercised or canceled, including an estimate of options still outstanding. • Expected Volatility—The expected volatility incorporates historical and implied volatility of comparable public companies for a period approximating the expected term. • Expected Dividend Yield—The expected dividend yield is based on the Company's expectation of not paying dividends on its common stock for the foreseeable future. • Risk-Free Interest Rate—The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and with a maturity that approximates the expected term. Restricted Stock Awards The fair value of each restricted stock award is determined based on the closing price of the Company's common stock as reported on The New York Stock Exchange on the grant date. |
Accounts receivable | Accounts receivable Accounts receivable consist primarily of trade receivables, receivables from The Container Store, Inc.'s credit card processors for sales transactions, and tenant improvement allowances from The Container Store, Inc.'s landlords in connection with new leases. An allowance for doubtful accounts is established on trade receivables, if necessary, for estimated losses resulting from the inability of customers to make required payments. Factors such as payment terms, historical loss experience, and economic conditions are generally considered in determining the allowance for doubtful accounts. Accounts receivable are presented net of allowances for doubtful accounts of $170 and $305 at March 31, 2018 and April 1, 2017, respectively. |
Inventories | Inventories Inventories at retail stores are comprised of finished goods and are valued at the lower of cost or estimated net realizable value, with cost determined on a weighted-average cost method including associated freight costs. Manufacturing inventories are comprised of raw materials, work in process, and finished goods and are valued on a first-in, first out basis using full absorption accounting which includes material, labor, other variable costs, and other applicable manufacturing overhead. To determine if the value of inventory is recoverable at cost, we consider current and anticipated demand, customer preference and the merchandise age. The significant estimates used in inventory valuation are obsolescence (including excess and slow-moving inventory) and estimates of inventory shrinkage. We adjust our inventory for obsolescence based on historical trends, aging reports, specific identification and our estimates of future retail sales prices. Reserves for shrinkage are estimated and recorded throughout the period as a percentage of cost of sales based on historical shrinkage results and current inventory levels. Actual shrinkage is recorded throughout the year based upon periodic cycle counts. Actual inventory shrinkage can vary from estimates due to factors including the mix of our inventory and execution against loss prevention initiatives in our stores and distribution center. |
Property and equipment | Property and equipment Property and equipment are recorded at cost less accumulated depreciation. Significant additions and improvements are capitalized, and expenditures for maintenance and repairs are expensed. Gains and losses on the disposition of property and equipment are recognized in the period incurred. Depreciation, including amortization of assets recorded under capital lease obligations, is provided using the straight-line method over the estimated useful lives of depreciable assets as follows: Buildings 30 years Furniture, fixtures, and equipment 3 to 10 years Computer software 2 to 5 years Leasehold improvements Shorter of useful life or lease term Capital leases Shorter of useful life or lease term Costs of developing or obtaining software for internal use or developing the Company's website, such as external direct costs of materials or services and internal payroll costs directly related to the software development projects are capitalized. For the fiscal years ended March 31, 2018, April 1, 2017, and February 27, 2016, the Company capitalized $4,397, $4,392, and $3,272, respectively, and amortized $4,346, $3,498, and $3,258, respectively, of costs in connection with the development of internally used software. For the five-week period ended April 2, 2016, the Company capitalized $299 and amortized $296 of costs in connection with the development of internally used software. |
Long-lived assets | Long-lived assets Long-lived assets, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. If the sum of the estimated undiscounted future cash flows related to the asset is less than the carrying value, we recognize a loss equal to the difference between the carrying value and the fair value, usually determined by the estimated discounted cash flow analysis of the asset. For our TCS segment, we generally evaluate long-lived tangible assets at a store level, or at the lowest level at which independent cash flows can be identified. We evaluate corporate assets or other long-lived assets that are not store-specific at the consolidated level. For our Elfa segment, we evaluate long-lived tangible assets at the segment level. Since there is typically no active market for our long-lived tangible assets, we estimate fair values based on the expected future cash flows. We estimate future cash flows based on store-level historical results, current trends, and operating and cash flow projections. Our estimates are subject to uncertainty and may be affected by a number of factors outside our control, including general economic conditions and the competitive environment. While we believe our estimates and judgments about future cash flows are reasonable, future impairment charges may be required if the expected cash flow estimates, as projected, do not occur or if events change requiring us to revise our estimates. |
Foreign currency forward contracts | Foreign currency forward contracts We account for foreign currency forward contracts in accordance with ASC 815, Derivatives and Hedging . In the TCS segment, we may utilize foreign currency forward contracts in Swedish krona to stabilize our retail gross margins and to protect our domestic operations from downward currency exposure by hedging purchases of inventory from our wholly owned subsidiary, Elfa. In the Elfa segment, we may utilize foreign currency forward contracts to hedge purchases of raw materials that are transacted in currencies other than Swedish krona, which is the functional currency of Elfa. Generally, the Company's foreign currency forward contracts have terms from 1 to 12 months and require the Company to exchange currencies at agreed-upon rates at settlement. The Company does not hold or enter into financial instruments for trading or speculative purposes. The Company records all foreign currency forward contracts on its consolidated balance sheet at fair value. The Company records its foreign currency forward contracts on a gross basis. Forward contracts not designated as hedges are adjusted to fair value through income as selling, general and administrative expenses. The Company accounts for its foreign currency hedge instruments as cash flow hedges, as defined. Changes in the fair value of the foreign currency hedge instruments that are considered to be effective, as defined, are recorded in other comprehensive income (loss) until the hedged item (inventory) is sold to the customer, at which time the deferred gain or loss is recognized through cost of sales. Any portion of a change in the foreign currency hedge instrument's fair value that is considered to be ineffective, as defined, or that the Company has elected to exclude from its measurement of effectiveness, is immediately recorded in earnings as cost of sales. |
Self-insured liabilities | Self-insured liabilities We are primarily self-insured for workers' compensation, employee health benefits and general liability claims. We record self-insurance liabilities based on claims filed, including the development of those claims, and an estimate of claims incurred but not yet reported. Factors affecting these estimates include future inflation rates, changes in severity, benefit level changes, medical costs and claim settlement patterns. Should a different amount of claims occur compared to what was estimated, or costs of the claims increase or decrease beyond what was anticipated, reserves may need to be adjusted accordingly. We determine our workers' compensation liability and general liability claims reserves based on an analysis of historical claims data. Self-insurance reserves for employee health benefits, workers' compensation and general liability claims are recorded in the accrued liabilities line item of the consolidated balance sheet and were $2,810 and $3,016 as of March 31, 2018 and April 1, 2017, respectively. |
Goodwill | Goodwill We evaluate goodwill annually to determine whether it is impaired. Goodwill is also tested between annual impairment tests if an event occurs or circumstances change that would indicate that the fair value of a reporting unit is less than its carrying amount. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset. If an impairment indicator exists, we test goodwill for recoverability. We have identified two reporting units and we have selected the first day of the fourth fiscal quarter to perform our annual goodwill impairment testing. Prior to testing goodwill for impairment, we perform a qualitative assessment to determine whether it is more likely than not that goodwill is impaired for each reporting unit. If the results of the qualitative assessment indicate that the likelihood of impairment is greater than 50%, then we perform an impairment test on goodwill. To test for impairment, we compare the fair value of the reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired and we are not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then we would record an impairment loss equal to the difference. The fair value of each reporting unit is determined by using a discounted cash flow analysis using the income approach. We also use a market approach to compare the estimated fair value to comparable companies. The determination of fair value requires assumptions and estimates of many critical factors, including among others, our nature and our history, financial and economic conditions affecting us, our industry and the general economy, past results, our current operations and future prospects, sales of similar businesses or capital stock of publicly held similar businesses, as well as prices, terms and conditions affecting past sales of similar businesses. Forecasts of future operations are based, in part, on operating results and management's expectations as to future market conditions. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. If actual results are not consistent with our estimates and assumptions, we may be exposed to future impairment losses that could be material. |
Trade names | Trade names We annually evaluate whether the trade names continue to have an indefinite life. Trade names are reviewed for impairment annually on the first day of the fourth fiscal quarter and may be reviewed more frequently if indicators of impairment are present. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. The impairment review is performed by comparing the carrying value to the estimated fair value, determined using a discounted cash flow methodology. If the recorded carrying value of the trade name exceeds its estimated fair value, an impairment charge is recorded to write the trade name down to its estimated fair value. Factors used in the valuation of intangible assets with indefinite lives include, but are not limited to, future revenue growth assumptions, estimated market royalty rates that could be derived from the licensing of our trade names to third parties, and a rate used to discount the estimated royalty cash flow projections. The valuation of trade names requires assumptions and estimates of many critical factors, which are consistent with the factors discussed under "Goodwill" above. Forecasts of future operations are based, in part, on operating results and management's expectations as to future market conditions. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. If actual results are not consistent with our estimates and assumptions, we may be exposed to future impairment losses that could be material. |
Foreign currency translation | Foreign currency translation The Company operates foreign subsidiaries in the following countries: Sweden, Norway, Finland, Denmark, Germany, Poland, and France. The functional currency of the Company's foreign operations is the applicable country's currency. All assets and liabilities of foreign subsidiaries and affiliates are translated at year-end rates of exchange. Revenues and expenses of foreign subsidiaries and affiliates are translated at average rates of exchange for the year. Unrealized gains and losses on translation are reported as cumulative translation adjustments through other comprehensive income (loss). The functional currency for the Company's wholly owned subsidiary, Elfa, is the Swedish krona. During fiscal 2017, the rate of exchange from U.S. dollar to Swedish krona decreased from 8.9 to 8.4. The carrying amount of assets related to Elfa and subject to currency fluctuation was $119,995 and $108,707 as of March 31, 2018 and April 1, 2017, respectively. Foreign currency realized gains of $596, realized gains of $342, realized losses of $241, and realized gains of $60 are included in selling, general, and administrative expenses in the consolidated statements of operations in fiscal 2017, fiscal 2016, fiscal 2015, and the five-weeks ended April 2, 2016, respectively. |
Recent accounting pronouncements | Recent accounting pronouncements In February 2016, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) , to revise lease accounting guidance. The update requires most leases to be recorded on the balance sheet as a lease liability, with a corresponding right-of-use asset, whereas these leases currently have an off-balance sheet classification. ASU 2016-02 must be applied on a modified retrospective basis and is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The Company currently intends to adopt this standard in the first quarter of fiscal 2019. The Company is still evaluating the impact of implementation of this standard on its financial statements, but expects that adoption will have a material impact to the Company's total assets and liabilities given the Company has a significant number of operating leases not currently recognized on its balance sheet. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , an updated standard on revenue recognition (codified as Accounting Standards Codification ("ASC") Topic 606). ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the Company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. The Company has identified certain impacts to our accounting for gift cards given away for promotional or marketing purposes. Under current GAAP, the value of promotional gift cards are recorded as selling, general, and administrative expense. The new standard requires these types of gift cards to be accounted for as a reduction of revenue (i.e. a discount). Additionally, ASU 2014-09 will disallow the capitalization of direct-response advertising costs which will impact the timing of recognition of certain advertising production and distribution costs. This standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted for interim and annual periods beginning after December 15, 2016. The Company intends to adopt this standard in the first quarter of fiscal 2018 and the Company has elected to use the modified-retrospective approach for implementation of the standard. Overall, the Company does not expect the adoption of ASU 2014-09 to have a material impact on the financial statements. Upon transition on April 1, 2018, the Company expects to record a cumulative adjustment to increase retained earnings/(deficit) and decrease accrued liabilities by approximately $400 related to the change for gift cards given away for promotional or marketing purposes. The Company also expects to reclassify the asset balance for the estimate of future returned merchandise, which was approximately $900 as of March 31, 2018, from the "Inventory" line to the "Other current assets" line on the balance sheet. In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which outlined new provisions intended to simplify various aspects related to accounting for share-based payments, including income tax consequences, forfeitures, and classification in the statement of cash flows. Under the new guidance, an entity will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital ("APIC"). Instead, they will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement when the awards vest or are settled. This standard was effective for and adopted by the Company in the first quarter of fiscal 2017 and the Company now recognizes all income tax effects of share-based payments in the income statement on a prospective basis. The Company elected to continue to estimate forfeitures expected to occur to determine the amount of share-based compensation cost to recognize in each period, as permitted by ASU 2016-09. The adoption of ASU 2016-09 did not result in a material impact to the Company's financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which requires entities to recognize the income tax effects of intercompany sales and transfers of assets, other than inventory, in the period in which the transfer occurs. This is a change from current GAAP, which requires entities to defer the income tax effects of intercompany transfers of assets until the asset has been sold to an outside party or otherwise recognized (i.e. depreciated, amortized, impaired). The income tax effects of intercompany sales and transfers of inventory will continue to be deferred until the inventory is sold to an outside party. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. The Company currently intends to adopt this standard in the first quarter of fiscal 2018, and the Company does not expect this standard to have a material impact on its financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which provides guidance to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test under ASC Topic 350. Under the new guidance, an entity should perform goodwill impairment testing by comparing the fair value of a reporting unit with its carrying amount. If the reporting unit's carrying amount exceeds its fair value, an entity should recognize an impairment charge based on that difference, limited to the total amount of goodwill allocated to that reporting unit. The Company elected to early adopt this standard in the third quarter of fiscal 2017 on a prospective basis. The adoption of ASU 2017-04 did not result in a material impact to the Company's financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which provides guidance that requires an employer to present the service cost component separate from the other components of net periodic benefit cost. The update requires that employers present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered by participating employees during the period. The other components of the net periodic benefit cost are required to be presented separately from the line item that includes service cost and outside of the subtotal of income from operations. If a separate line item is not used, the line item used in the income statement must be disclosed. In addition, only the service cost component is eligible for capitalization in assets. This ASU will be applied retrospectively and is effective for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. The Company does not expect this standard to have a material impact on its financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting , which clarifies when modification accounting should be applied for changes to terms or conditions of a share-based payment award. This ASU will be applied prospectively and is effective for fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. The Company currently intends to adopt this standard in the first quarter of fiscal 2018, and the Company does not expect this standard to have a material impact on its financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which is intended to improve and simplify hedge accounting and improve the disclosures of hedging arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adopting the new standard on its financial statements. |
Nature of business and summar30
Nature of business and summary of significant accounting policies (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Nature of business and summary of significant accounting policies | |
Schedule of estimated useful lives of depreciable assets | Buildings 30 years Furniture, fixtures, and equipment 3 to 10 years Computer software 2 to 5 years Leasehold improvements Shorter of useful life or lease term Capital leases Shorter of useful life or lease term |
Goodwill and trade names (Table
Goodwill and trade names (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Goodwill and trade names | |
Schedule of changes in the carrying amount of goodwill and trade names | Goodwill Trade names Balance at February 27, 2016 Gross balance Accumulated impairment charges ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total, net $ $ Foreign currency translation adjustments — Balance at April 2, 2016 Gross balance Accumulated impairment charges ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total, net $ $ Foreign currency translation adjustments — ) Balance at April 1, 2017 Gross balance Accumulated impairment charges ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total, net $ $ Foreign currency translation adjustments — Balance at March 31, 2018 Gross balance Accumulated impairment charges ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Detail of certain balance she32
Detail of certain balance sheet accounts (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Detail of certain balance sheet accounts | |
Schedule of detail of certain balance sheet accounts | March 31, April 1, Accounts receivable, net: Trade receivables, net $ $ Credit card receivables Tenant allowances Other receivables ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inventory: Finished goods $ $ Raw materials Work in progress ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property and equipment, net: Land and buildings $ $ Furniture and fixtures Machinery and equipment Computer software and equipment Leasehold improvements Construction in progress Leased vehicles and other ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation and amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrued Liabilities: Accrued payroll, benefits and bonuses $ $ Unearned revenue Accrued transaction and property tax Gift cards and store credits outstanding Accrued lease liabilities Accrued interest Other accrued liabilities ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Long-term debt and revolving 33
Long-term debt and revolving lines of credit (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Long-term debt and revolving lines of credit | |
Schedule of long-term debt and revolving lines of credit | March 31, April 1, Senior secured term loan facility $ $ 2014 Elfa term loan facility — 2014 Elfa revolving credit facility — — Obligations under capital leases Other loans Revolving credit facility — — ​ ​ ​ ​ ​ ​ ​ ​ Total debt Less current portion ) ) Less deferred financing costs(1) ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total long-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Represents deferred financing costs related to our Senior Secured Term Loan Facility, which are presented net of long-term debt in the consolidated balance sheet. |
Schedule of total revolving lines of credit and debt maturities | Scheduled total revolving lines of credit and debt maturities for the fiscal years subsequent to March 31, 2018, are as follows: Within 1 year $ 2 years 3 years 4 years 5 years — Thereafter — ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of amortization expense of deferred financing costs | Senior Secured Revolving Total Within 1 year $ $ $ 2 years 3 years 4 years 5 years — Thereafter — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Income taxes | |
Schedule of components of the (benefit) provision for income taxes (Pre-tax income) | Fiscal Year Ended Five Weeks March 31, April 1, February 27, Income before income taxes: U.S. $ $ $ $ Foreign ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current Federal $ $ $ ) $ State Foreign ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current provision (benefit) ) Deferred Federal ) State ) Foreign ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred (benefit) provision ) ) Total (benefit) provision for income taxes $ ) $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of components of the (benefit) provision for income taxes (Provision for income taxes) | Fiscal Year Ended Five Weeks March 31, April 1, February 27, Income before income taxes: U.S. $ $ $ $ Foreign ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current Federal $ $ $ ) $ State Foreign ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current provision (benefit) ) Deferred Federal ) State ) Foreign ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred (benefit) provision ) ) Total (benefit) provision for income taxes $ ) $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of differences between the actual provision for income taxes and the amounts computed by applying the statutory federal tax rate to income before taxes | Fiscal Year Ended Five Weeks March 31, April 1, February 27, Provision computed at federal statutory rate $ $ $ $ Permanent differences One-time transition tax, net — — — Change in valuation allowance State income taxes, net of federal benefit Effect of foreign income taxes ) ) ) Remeasurement of deferred tax balances ) — — — Economic zone credits — — ) — Other, net ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of components of deferred tax assets and liabilities | March 31, April 1, Deferred tax assets: Inventory $ $ Loss and credit carryforwards Stock compensation Accrued liabilities Capital assets ​ ​ ​ ​ ​ ​ ​ ​ Valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets Deferred tax liabilities: Intangibles ) ) Capital assets ) ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ) ) Net deferred tax liabilities $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Employee benefit plans | |
Schedule of reconciliation of the changes in the defined benefit obligations, a statement of funded status, and the related weighted-average assumptions | March 31, April 1, Change in benefit obligation: Projected benefit obligation, beginning of year $ $ Service cost Interest cost Benefits paid ) ) Actuarial loss Exchange rate loss (gain) ) ​ ​ ​ ​ ​ ​ ​ ​ Projected benefit obligation, end of year Fair value of plan assets, end of year — — ​ ​ ​ ​ ​ ​ ​ ​ Underfunded status, end of year $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Discount rate % % Rate of pay increases % % |
Schedule of components of net periodic benefit cost | Fiscal Year Ended Five Weeks March 31, April 1, February 27, Components of net periodic benefit cost: Defined benefit plans: Service cost $ $ $ $ Interest cost Amortization of unrecognized net loss — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net periodic benefit cost for defined benefit plan Defined contribution plans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total net periodic benefit cost $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Stock-based compensation | |
Summary of the Company's annual stock option grants | Grant Date Number of Stock August 3, 2015 August 1, 2016 September 12, 2017 |
Summary of the Company's stock option activity | Fiscal Year 2017 2016(1) 2015 Shares Weighted- Weighted- Aggregate Shares Weighted- Weighted- Aggregate Shares Weighted- Weighted- Aggregate Beginning balance $ $ $ Granted $ $ $ Exercised — $ — — $ — ) $ Forfeited ) $ ) $ ) $ Expired ) $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ending balance $ $ $ $ — $ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Vested and exercisable at end of year $ $ $ $ — $ $ — (1) Fiscal 2016 includes 6,690 options forfeited and 576 options expired during the five-weeks ended April 2, 2016. There were no options granted or exercised during the five-weeks ended April 2, 2016. |
Summary of the weighted-average assumptions used with the Black Scholes pricing model to estimate the weighted-average grant date fair value of stock options granted | Fiscal Year 2017 2016 2015 Expected term 6.0 years 6.0 years 6.0 years Expected volatility 60.6% 67.9% 50.3% Risk-free interest rate 1.9% 1.2% 1.7% Dividend yield 0% 0% 0% |
Summary of Company's restricted stock award grants | Grant Date Total Grant Date Number of Time-Based Number of Performance- Number of July 1, 2016 $ 2.75 years (1) 3.75 years August 2, 2016 $ 2.67 years (1) 3.67 years December 12, 2017 $ 3 years (2) 3 years (1) These performance-based restricted stock awards vest based on achievement of fiscal 2016 performance targets and are also subject to time-based vesting requirements. (2) These performance-based restricted stock awards vest based on achievement of fiscal 2017 performance targets and are also subject to time-based vesting requirements. |
Summary of Company's restricted stock awards activity | Restricted Weighted Nonvested at April 2, 2016 — $ — Granted Vested ) Forfeited ) Withheld related to net settlement ) ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at April 1, 2017 $ Granted Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Nonvested at March 31, 2018 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Accumulated other comprehensi37
Accumulated other comprehensive income (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Accumulated other comprehensive income | |
Schedule of components of AOCI, net of tax | Foreign Pension Foreign Total Balance at February 27, 2016 $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive (loss) income before reclassifications, net of tax — ) Amounts reclassified to earnings, net of tax — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net current period other comprehensive income (loss) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at April 2, 2016 $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive loss before reclassifications, net of tax ) ) ) ) Amounts reclassified to earnings, net of tax — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net current period other comprehensive loss ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at April 1, 2017 $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other comprehensive loss before reclassifications, net of tax ) Amounts reclassified to earnings, net of tax ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net current period other comprehensive loss ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at March 31, 2018 $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Leases | |
Schedule of future minimum lease payments for noncancelable operating and capital leases | Operating Capital Within 1 year $ $ 2 years 3 years 4 years — 5 years — Thereafter — ​ ​ ​ ​ ​ ​ ​ ​ Total minimum lease payments $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Less amount representing interest ) ​ ​ ​ ​ ​ ​ ​ ​ Present value of minimum lease payments $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Fair value measurements | |
Schedule of items measured at fair value on a recurring basis, subject to the disclosure requirements of ASC 820 | Description Balance Sheet Location March 31, April 1, Assets Nonqualified retirement plan(1) N/A Other current assets $ $ Foreign currency forward contracts Level 2 Other current assets — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) The fair value amount of the nonqualified retirement plan is measured at fair value using the net asset value per share practical expedient, and therefore, is not classified in the fair value hierarchy. |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Segment reporting | |
Schedule of segment reporting | Fiscal year ended March 31, 2018 TCS Elfa Eliminations Total Net sales to third parties $ $ $ — $ Intersegment sales — ) — Adjusted EBITDA ) Depreciation and amortization — Interest expense, net — Capital expenditures(1) — Goodwill — — Trade names(1) — Assets(1) ) Fiscal year ended April 1, 2017 TCS Elfa Eliminations Total Net sales to third parties $ $ $ — $ Intersegment sales — ) — Adjusted EBITDA(2) Depreciation and amortization — Interest expense, net — Capital expenditures(1) — Goodwill — — Trade names(1) — Assets(1) ) Fiscal year ended February 27, 2016 TCS Elfa Eliminations Total Net sales to third parties $ $ $ — $ Intersegment sales — ) — Adjusted EBITDA Depreciation and amortization — Interest expense, net — Capital expenditures(1) — Goodwill — — Trade names(1) — Assets(1) ) Five weeks ended April 2, 2016 TCS Elfa Eliminations Total Net sales to third parties $ $ $ — $ Intersegment sales — ) — Adjusted EBITDA ) Depreciation and amortization — Interest expense, net — Capital expenditures(1) — (1) Tangible assets and trade names in the Elfa column are located outside of the United States. (2) The TCS segment includes a net benefit of $3.9 million related to amended and restated employment agreements entered into with key executives during the first quarter, leading to a reversal of accrued deferred compensation associated with the original employment agreements. |
Summary of reconciliation of Adjusted EBITDA by segment to income before taxes | Fiscal Year Ended Five Weeks March 31, April 1, February 27, Income before taxes $ $ $ $ Add: Depreciation and amortization Interest expense, net Pre-opening costs(a) Non-cash rent(b) ) ) ) ) Stock-based compensation(c) Loss on extinguishment of debt(d) — — — Foreign exchange (gains) losses(e) ) ) Optimization Plan implementation charges(f) — — — Elfa manufacturing facility closure(g) — — — Other adjustments(h) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Adjusted EBITDA ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (a) Non-capital expenditures associated with opening new stores and relocating stores, including rent, marketing expenses, travel and relocation costs, and training costs. We adjust for these costs to facilitate comparisons of our performance from period to period. (b) Reflects the extent to which our annual GAAP rent expense has been above or below our cash rent payment due to lease accounting adjustments. The adjustment varies depending on the average age of our lease portfolio (weighted for size), as our GAAP rent expense on younger leases typically exceeds our cash cost, while our GAAP rent expense on older leases is typically less than our cash cost. (c) Non-cash charges related to stock-based compensation programs, which vary from period to period depending on volume and vesting timing of awards. We adjust for these charges to facilitate comparisons from period to period. (d) Loss recorded as a result of the amendments made to the Senior Secured Term Loan Facility and the Revolving Credit Facility in August 2017, which we do not consider in our evaluation of our ongoing operations. (e) Realized foreign exchange transactional gains/losses our management does not consider in our evaluation of our ongoing operations. (f) Charges incurred to implement our Optimization Plan, which include certain consulting costs recorded in selling, general and administrative expenses, cash severance payments associated with the elimination of certain full-time positions at the TCS segment recorded in other expenses, and cash severance payments associated with organizational realignment at the Elfa segment recorded in other expenses, which we do not consider in our evaluation of ongoing performance. (g) Charges related to the closure of an Elfa manufacturing facility in Lahti, Finland in December 2017, recorded in other expenses, which we do not consider in our evaluation of our ongoing performance. (h) Other adjustments include amounts our management does not consider in our evaluation of our ongoing operations, including certain severance and other charges. |
Schedule of sales by merchandise category as a percentage of total net sales | Fiscal year ended March 31, April 1, February 27, Custom Closets(1) % % % Storage, Long-Term Storage, Shelving % % % Kitchen and Trash % % % Office, Collections, Hooks % % % Bath, Travel, Laundry % % % Gift Packaging, Seasonal, Impulse % % % Other % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Includes elfa® and TCS Closets® products and installation services as well as closet completion products sold by the TCS segment and Elfa segment sales to third parties. |
Net income per common share (Ta
Net income per common share (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Net income per common share | |
Schedule of reconciliation of net income and the number of shares used in the basic and diluted net income per share calculations | Fiscal Year Ended Five Weeks March 31, April 1, February 27, Numerator: Net income $ $ $ $ Denominator: Weighted-average common shares—basic Options and other dilutive securities — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average common shares—diluted Net income per common share—basic and diluted $ $ $ $ Antidilutive securities not included: Stock options outstanding Nonvested restricted stock awards — — |
Quarterly results of operatio42
Quarterly results of operations (unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Quarterly results of operations (unaudited) | |
Schedule of quarterly results of operations | Fiscal Year Ended March 31, 2018 Fourth Quarter Third Quarter Second Quarter First Quarter Net sales $ $ $ $ Gross profit Income (loss) from operations ) Net (loss) income ) ) ) Weighted-average shares used in computing basic net (loss) income per share Weighted-average shares used in computing diluted net (loss) income per share Basic and diluted net (loss) income per common share $ ) $ $ ) $ ) Fiscal Year Ended April 1, 2017 Fourth Quarter Third Quarter Second Quarter First Quarter Net sales $ $ $ $ Gross profit Income (loss) from operations Net income (loss) ) Weighted-average shares used in computing basic net income (loss) per share Weighted-average shares used in computing diluted net income (loss) per share Basic and diluted net income (loss) per common share $ $ $ $ ) |
Transition Period Financial I43
Transition Period Financial Information (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Transition Period Financial Information | |
Summary of unaudited comparative financial information | Five Weeks Ended (In thousands, except share and per share amounts) April 2, April 4, (unaudited) Consolidated statement of operations data: Net sales $ $ Gross profit Selling, general, and administrative expenses Income from operations Income before taxes Provision for income taxes Net income Net income per common share: Basic and diluted $ $ Weighted-average common shares—basic and diluted |
Optimization Plan (Tables)
Optimization Plan (Tables) | 12 Months Ended |
Mar. 31, 2018 | |
Optimization Plan | |
Schedule of charges related to the implementation of the Optimization Plan | Income Statement Location Fifty-Two Consulting fees and other costs Selling, general & administrative $ Severance—full-time position eliminations at TCS Other expenses Severance—organizational realignment at Elfa Other expenses ​ ​ ​ ​ ​ ​ ​ Total Optimization Plan charges $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of exit or disposal activities | TCS Severance Liability Balance as of April 1, 2017 $ — Costs Incurred Payments ) ​ ​ ​ ​ ​ Liability Balance as of March 31, 2018 $ As of Total costs incurred to date $ Total costs expected to be incurred $ |
Nature of business and summar45
Nature of business and summary of significant accounting policies (Details) | Mar. 31, 2018ft²storestate |
Nature of business and summary of significant accounting policies | |
Number of stores | store | 90 |
Average size of stores (in square feet) | 25,000 |
Average selling square feet in stores (in square feet) | 19,000 |
Number of states | state | 32 |
Nature of business and summar46
Nature of business and summary of significant accounting policies - Fiscal year (Details) - item | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Fiscal year | |||
Length of fiscal quarter | 91 days | ||
Number of four week months | 2 | ||
Number of five week months | 1 | ||
Length of fiscal year | 364 days | 364 days | 364 days |
Nature of business and summar47
Nature of business and summary of significant accounting policies - Gift cards and merchandise credits (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Gift cards and merchandise credits | ||||
Period of estimated performance | 48 months | |||
Gift card breakage recorded | $ 73 | $ 1,656 | $ 1,072 | $ 948 |
Advertising | ||||
Catalog and direct mailings costs capitalized | 375 | 605 | ||
Advertising expense incurred | $ 2,164 | 32,860 | 31,525 | $ 32,343 |
Income taxes | ||||
Uncertain tax positions requiring accrual | 0 | 0 | ||
Accounts receivable | ||||
Allowances for doubtful accounts | $ 170 | $ 305 |
Nature of business and summar48
Nature of business and summary of significant accounting policies - Property, plant, and equipment (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Property and equipment ,net: | ||||
Cost capitalized in connection with the development of internally used software | $ 299 | $ 4,397 | $ 4,392 | $ 3,272 |
Cost amortized in connection with the development of internally used software | $ 296 | $ 4,346 | $ 3,498 | $ 3,258 |
Buildings | ||||
Property and equipment ,net: | ||||
Estimated useful lives | 30 years | |||
Furniture, fixtures, and equipment | Minimum | ||||
Property and equipment ,net: | ||||
Estimated useful lives | 3 years | |||
Furniture, fixtures, and equipment | Maximum | ||||
Property and equipment ,net: | ||||
Estimated useful lives | 10 years | |||
Computer software | Minimum | ||||
Property and equipment ,net: | ||||
Estimated useful lives | 2 years | |||
Computer software | Maximum | ||||
Property and equipment ,net: | ||||
Estimated useful lives | 5 years |
Nature of business and summar49
Nature of business and summary of significant accounting policies - Foreign currency forward contracts (Details) $ in Thousands | 12 Months Ended | |
Mar. 31, 2018USD ($)item | Apr. 01, 2017USD ($) | |
Foreign currency forward contracts | ||
Minimum term period of currency-related hedge instruments | 1 month | 1 month |
Maximum term period of currency-related hedge instruments | 12 months | 12 months |
Self-insured liabilities | ||
Self-insurance reserves recorded in accrued liabilities | $ | $ 2,810 | $ 3,016 |
Goodwill | ||
Number of reporting units | item | 2 |
Nature of business and summar50
Nature of business and summary of significant accounting policies - Foreign currency translation and Recent accounting pronouncements (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 02, 2016USD ($) | Mar. 31, 2018USD ($) | Apr. 01, 2017USD ($) | Feb. 27, 2016USD ($) | Apr. 01, 2018USD ($) | |
Recent accounting pronouncements | |||||
Retained earnings/(deficit) | $ (595,721) | $ (615,149) | |||
Accrued liabilities | 70,494 | 60,107 | |||
Inventory | 97,362 | 103,120 | |||
Other current assets | 11,609 | 10,787 | |||
ASU 2014-09 | |||||
Recent accounting pronouncements | |||||
Inventory | $ (900) | ||||
ASU 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | |||||
Recent accounting pronouncements | |||||
Retained earnings/(deficit) | 400 | ||||
Accrued liabilities | (400) | ||||
Other current assets | $ 900 | ||||
Selling, general & administrative | |||||
Foreign currency translation | |||||
Realized gains/losses | $ 60 | $ 596 | $ 342 | $ (241) | |
Elfa | |||||
Foreign currency translation | |||||
Exchange rate from Swedish Krona to U.S. Dollar | 8.4 | 8.9 | |||
Carrying amounts of net assets | $ 119,995 | $ 108,707 |
Goodwill and trade names (Detai
Goodwill and trade names (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Apr. 02, 2016 | Feb. 27, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 |
Goodwill and trade names | ||||||
Impairment charges for goodwill | $ 0 | $ 0 | $ 0 | |||
Changes in the carrying amount of goodwill | ||||||
Total, net balance at the beginning of the period | 202,815 | |||||
Total, net balance at the end of the period | $ 202,815 | $ 202,815 | 202,815 | 202,815 | 202,815 | |
Changes in the carrying amount of trade names | ||||||
Gross balance at the beginning of the period | 410,467 | 410,467 | ||||
Accumulated impairment charges at the beginning of the period | (207,652) | (207,652) | ||||
Total, net balance at the beginning of the period | 202,815 | 202,815 | ||||
Gross balance at the end of the period | 410,467 | $ 410,467 | 410,467 | 410,467 | 410,467 | 410,467 |
Accumulated impairment charges at the end of the period | (207,652) | (207,652) | (207,652) | (207,652) | (207,652) | (207,652) |
Total, net balance at the end of the period | 202,815 | 202,815 | 202,815 | 202,815 | 202,815 | 202,815 |
Trade names | ||||||
Goodwill and trade names | ||||||
Impairment charge | 0 | 0 | 0 | |||
Changes in the carrying amount of trade names | ||||||
Gross balance at the beginning of the period | 258,219 | 262,325 | ||||
Accumulated impairment charges at the beginning of the period | (31,534) | (31,534) | ||||
Total, net balance at the beginning of the period | 226,685 | 230,791 | ||||
Foreign currency translation adjustments | 2,716 | (4,106) | 2,423 | |||
Gross balance at the end of the period | 258,219 | 262,325 | 259,902 | 260,935 | 258,219 | 259,902 |
Accumulated impairment charges at the end of the period | (31,534) | (31,534) | (31,534) | (31,534) | (31,534) | (31,534) |
Total, net balance at the end of the period | $ 226,685 | $ 230,791 | $ 228,368 | $ 229,401 | $ 226,685 | $ 228,368 |
Detail of certain balance she52
Detail of certain balance sheet accounts (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Accounts receivable, net: | ||
Trade receivables, net | $ 15,968 | $ 15,873 |
Credit card receivables | 6,939 | 6,531 |
Tenant allowances | 998 | 2,353 |
Other receivables | 1,623 | 2,719 |
Accounts receivable, net | 25,528 | 27,476 |
Inventory: | ||
Finished goods | 91,970 | 98,438 |
Raw materials | 4,840 | 4,183 |
Work in progress | 552 | 499 |
Inventory | 97,362 | 103,120 |
Property and equipment, net: | ||
Property and equipment, gross | 441,005 | 421,233 |
Less accumulated depreciation and amortization | (282,616) | (255,735) |
Property and equipment, net | 158,389 | 165,498 |
Accrued Liabilities: | ||
Accrued payroll, benefits and bonuses | 24,940 | 20,897 |
Unearned revenue | 11,080 | 7,708 |
Accrued transaction and property tax | 12,846 | 11,086 |
Gift cards and store credits outstanding | 8,891 | 9,229 |
Accrued lease liabilities | 5,105 | 4,767 |
Accrued interest | 292 | 143 |
Other accrued liabilities | 7,340 | 6,277 |
Accrued liabilities | 70,494 | 60,107 |
Land and buildings | ||
Property and equipment, net: | ||
Property and equipment, gross | 22,981 | 20,758 |
Furniture and fixtures | ||
Property and equipment, net: | ||
Property and equipment, gross | 69,777 | 68,837 |
Machinery and equipment | ||
Property and equipment, net: | ||
Property and equipment, gross | 87,105 | 83,523 |
Computer software and equipment | ||
Property and equipment, net: | ||
Property and equipment, gross | 90,512 | 81,380 |
Leasehold improvements | ||
Property and equipment, net: | ||
Property and equipment, gross | 157,858 | 152,630 |
Construction in progress | ||
Property and equipment, net: | ||
Property and equipment, gross | 12,114 | 13,188 |
Leased vehicles and other | ||
Property and equipment, net: | ||
Property and equipment, gross | $ 658 | $ 917 |
Long-term debt and revolving 53
Long-term debt and revolving lines of credit - Schedule of long-term debt and revolving lines of credit (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Long-term debt and revolving lines of credit | ||
Total debt | $ 295,053 | $ 321,138 |
Less current portion | (7,771) | (5,445) |
Total long-term debt | 277,394 | 312,026 |
Senior secured term loan facility | ||
Long-term debt and revolving lines of credit | ||
Total debt | 294,375 | 316,760 |
Less deferred financing costs | (9,888) | (3,667) |
Obligations under capital leases | ||
Long-term debt and revolving lines of credit | ||
Total debt | 662 | 901 |
Other loans | ||
Long-term debt and revolving lines of credit | ||
Total debt | $ 16 | 119 |
2014 Elfa term loan facility | ||
Long-term debt and revolving lines of credit | ||
Total debt | $ 3,358 |
Long-term debt and revolving 54
Long-term debt and revolving lines of credit - Scheduled total revolving lines of credit and debt maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Scheduled total revolving lines of credit and debt maturities | ||
Within 1 year | $ 7,771 | |
2 years | 7,761 | |
3 years | 7,646 | |
4 years | 271,875 | |
Total debt | $ 295,053 | $ 321,138 |
Long-term debt and revolving 55
Long-term debt and revolving lines of credit - Term Loan Amendment and Revolving Amendment (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Aug. 18, 2017 | Apr. 06, 2012 | Mar. 31, 2018 |
Revolving credit facility | LIBOR | ||||
Long-term debt and revolving lines of credit | ||||
Interest rate margin (as a percent) | 1.25% | 1.25% | ||
Senior secured term loan facility | ||||
Long-term debt and revolving lines of credit | ||||
Debt instrument annual step down Leverage Ratio | 0.25 | |||
Aggregate principle amount | $ 300,000 | |||
Debt instrument annual principal amortization percentage | 2.50% | |||
Debt instrument percentage of upfront fee on aggregate principal value | 3.00% | |||
Fee premium imposed on voluntary prepayments (as a percent) | 1.00% | |||
Period in which a premium is imposed on voluntary prepayments, in months | 12 months | |||
Senior secured term loan facility | Maximum | ||||
Long-term debt and revolving lines of credit | ||||
Debt Instrument leverage ratio covenant | 5 | |||
Senior secured term loan facility | LIBOR | ||||
Long-term debt and revolving lines of credit | ||||
Interest rate margin (as a percent) | 7.00% | 7.00% | ||
Senior secured term loan facility | Base rate | ||||
Long-term debt and revolving lines of credit | ||||
Interest rate margin (as a percent) | 6.00% |
Long-term debt and revolving 56
Long-term debt and revolving lines of credit - Senior secured term loan facility (Details) $ in Thousands | Mar. 31, 2018USD ($) | Aug. 18, 2017 | Mar. 31, 2018USD ($) |
Long-term debt and revolving lines of credit | |||
Restricted net assets of consolidated subsidiaries | $ 236,207 | $ 236,207 | |
Senior secured term loan facility | |||
Long-term debt and revolving lines of credit | |||
Outstanding borrowings | 294,375 | $ 294,375 | |
Required periodic principal repayments | 1,875 | ||
Senior secured term loan facility | Maximum | |||
Long-term debt and revolving lines of credit | |||
First priority security interest in stock in foreign subsidiaries (as a percent) | 65.00% | ||
Amount of dividend payable during term of debt | $ 10,000 | $ 10,000 | |
Threshold consolidated net leverage ratio for payment of dividend | 2 | ||
Senior secured term loan facility | LIBOR | |||
Long-term debt and revolving lines of credit | |||
Interest rate margin (as a percent) | 7.00% | 7.00% | |
Floor interest rate for reference rate (as a percent) | 1.00% |
Long-term debt and revolving 57
Long-term debt and revolving lines of credit - Related Party Debt (Details) - Senior secured term loan facility - USD ($) $ in Thousands | Mar. 31, 2018 | Aug. 18, 2017 |
Long-term debt and revolving lines of credit | ||
Aggregate principle amount | $ 300,000 | |
Green Credit Investors, L.P | ||
Long-term debt and revolving lines of credit | ||
Debt instrument amount funded by majority share holder | $ 20,000 | |
Total principal amount due | $ 0 |
Long-term debt and revolving 58
Long-term debt and revolving lines of credit - Revolving Credit Facility (Details) $ in Thousands | Aug. 18, 2017USD ($) | Apr. 06, 2012USD ($) | Apr. 02, 2016USD ($) | Sep. 30, 2017USD ($) | Mar. 31, 2018USD ($) | Apr. 01, 2017USD ($) | Feb. 27, 2016USD ($) |
Long-term debt and revolving lines of credit | |||||||
Net amount of borrowings on revolving credit facility | $ 5,000 | $ 335,000 | $ 30,000 | $ 33,000 | |||
Loss on extinguishment of debt | $ 2,369 | $ (2,369) | |||||
Revolving credit facility | |||||||
Long-term debt and revolving lines of credit | |||||||
Maximum borrowing capacity | $ 100,000 | ||||||
Amount of increase in commitments upon such request from the Company | 50,000 | ||||||
Net amount of borrowings on revolving credit facility | $ 20,000 | ||||||
Swing line advances limit | 15,000 | ||||||
Letter of credit facility sub-limit | $ 40,000 | ||||||
Percentage of eligible credit card receivables used for determining total amount of availability | 90.00% | ||||||
Percentage of appraised value of eligible inventory used for determining total amount of availability | 90.00% | ||||||
Consolidated fixed-charge coverage ratio to be maintained if excess availability is less than $10,000 at any time | 1 | ||||||
Amount of availability under facility | $ 65,625 | ||||||
Maximum borrowings, including letters of credit issued | $ 38,490 | ||||||
Revolving credit facility | LIBOR | |||||||
Long-term debt and revolving lines of credit | |||||||
Interest rate margin (as a percent) | 1.25% | 1.25% | |||||
Revolving credit facility | Minimum | |||||||
Long-term debt and revolving lines of credit | |||||||
Threshold fixed charge coverage ratio for payment of dividend | 1.25 | ||||||
Revolving credit facility | Maximum | |||||||
Long-term debt and revolving lines of credit | |||||||
First priority security interest in stock in foreign subsidiaries (as a percent) | 65.00% | ||||||
Threshold amount of excess availability for which consolidated fixed-charge coverage ratio of 1.0 to 1.0 is to be maintained | $ 10,000 | ||||||
Amount of dividend payable during term of debt | $ 10,000 |
Long-term debt and revolving 59
Long-term debt and revolving lines of credit - 2014 Elfa Senior Secured Credit Facilities (Details) $ in Thousands, kr in Millions | Apr. 01, 2014SEK (kr) | Mar. 31, 2018SEK (kr) | Mar. 31, 2018USD ($) |
2014 Elfa term loan facility | |||
Long-term debt and revolving lines of credit | |||
Face amount | kr 60 | $ 7,175 | |
Quarterly principal payments | kr 3 | 359 | |
2014 Elfa revolving credit facility | |||
Long-term debt and revolving lines of credit | |||
Maximum borrowing capacity | kr 140 | 16,743 | |
Amount of availability under facility | $ 16,743 | ||
2014 Elfa revolving credit facility | Base rate | |||
Long-term debt and revolving lines of credit | |||
Interest rate margin (as a percent) | 1.40% | ||
Minimum | Elfa senior secured credit facilities | |||
Long-term debt and revolving lines of credit | |||
Consolidated equity ratio in year one | 30.00% | ||
Consolidated equity ratio after year one | 32.50% | ||
Maximum | Elfa senior secured credit facilities | |||
Long-term debt and revolving lines of credit | |||
Consolidated ratio of net debt to EBITDA at end of each calendar quarter | 3.2 | 3.2 |
Long-term debt and revolving 60
Long-term debt and revolving lines of credit - Deferred financing costs (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 02, 2016 | Apr. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Long-term debt and revolving lines of credit | |||||
Amortization expense of deferred financing costs | $ 160 | $ 160 | $ 2,664 | $ 1,921 | $ 1,940 |
Amortization expense of deferred financing costs: | |||||
Within 1 year | 3,037 | ||||
2 years | 3,037 | ||||
3 years | 3,037 | ||||
4 years | 1,061 | ||||
5 years | 28 | ||||
Total | 10,200 | ||||
Senior secured term loan facility | |||||
Long-term debt and revolving lines of credit | |||||
Deferred financing costs | 9,640 | ||||
Amortization expense of deferred financing costs: | |||||
Within 1 year | 2,966 | ||||
2 years | 2,966 | ||||
3 years | 2,966 | ||||
4 years | 990 | ||||
Total | 9,888 | ||||
Revolving credit facility | |||||
Long-term debt and revolving lines of credit | |||||
Deferred financing costs | 57 | ||||
Amortization expense of deferred financing costs: | |||||
Within 1 year | 71 | ||||
2 years | 71 | ||||
3 years | 71 | ||||
4 years | 71 | ||||
5 years | 28 | ||||
Total | $ 312 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Apr. 02, 2016 | Apr. 02, 2016 | Apr. 04, 2015 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Income before income taxes: | ||||||
U.S. | $ 1,059 | $ 3,001 | $ 19,307 | $ 4,830 | ||
Foreign | (367) | 3,704 | 5,048 | 3,221 | ||
Income before taxes | 692 | $ 978 | 6,705 | 24,355 | 8,051 | |
Current | ||||||
Federal | 235 | 10,685 | 6,039 | (385) | ||
State | 63 | 792 | 1,374 | 585 | ||
Foreign | (778) | 1,345 | 2,085 | 1,850 | ||
Total current provision (benefit) | (480) | 12,822 | 9,498 | 2,050 | ||
Deferred | ||||||
Federal | 122 | (25,418) | 553 | 1,881 | ||
State | (46) | 158 | 22 | 57 | ||
Foreign | 742 | (285) | (671) | (1,079) | ||
Total deferred (benefit) provision | $ 818 | 818 | (25,545) | (96) | 859 | |
Total (benefit) provision for income taxes | $ 338 | $ 340 | $ (12,723) | $ 9,402 | $ 2,909 |
Income taxes - Tax Cuts and Job
Income taxes - Tax Cuts and Jobs Act (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 30, 2017 | Mar. 31, 2018 | |
Income taxes | |||
U.S. federal corporate tax rate | 21.00% | 35.00% | 21.00% |
Net provisional tax benefit | $ 15,689 | ||
Provisional benefit related to the remeasurement of deferred tax balances | 24,210 | ||
Provisional expense related to the one-time transition tax on foreign earnings | 8,521 | ||
Provisional expense related to the one-time transition tax on foreign earnings, net of foreign tax credit | 4,178 | ||
Future foreign tax credits, result of Tax Act | $ 5,184 | ||
U.S. blended statutory income tax rate (as a percent) | 31.50% |
Income taxes - Differences betw
Income taxes - Differences between the actual provision for income taxes and the amounts computed by applying the statutory federal tax rate to income before taxes (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 02, 2016 | Apr. 04, 2015 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Differences between the actual (benefit) provision for income taxes and the amounts computed by applying the statutory federal tax rate to income before taxes | |||||
Provision computed at federal statutory rate | $ 242 | $ 2,114 | $ 8,525 | $ 2,818 | |
Permanent differences | 10 | 566 | 536 | 192 | |
One-time transition tax, net | 8,521 | ||||
Change in valuation allowance | 37 | 211 | 178 | 248 | |
State income taxes, net of federal benefit | 11 | 455 | 855 | 402 | |
Effect of foreign income taxes | 53 | (351) | (619) | (384) | |
Remeasurement of deferred tax balances | (24,210) | ||||
Economic zone credits | (292) | ||||
Other, net | (15) | (29) | (73) | (75) | |
Total (benefit) provision for income taxes | $ 338 | $ 340 | $ (12,723) | $ 9,402 | $ 2,909 |
Income taxes - Components of de
Income taxes - Components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Deferred tax assets: | ||
Inventory | $ 1,004 | $ 1,763 |
Loss and credit carryforwards | 9,163 | 3,445 |
Stock compensation | 4,995 | 7,220 |
Accrued liabilities | 3,728 | 4,439 |
Capital assets | 454 | 352 |
Deferred tax assets before valuation allowance | 19,344 | 17,219 |
Valuation allowance | (7,724) | (2,015) |
Total deferred tax assets | 11,620 | 15,204 |
Deferred tax liabilities: | ||
Intangibles | (58,568) | (82,775) |
Capital assets | (4,104) | (7,412) |
Other | (1,383) | (3,557) |
Total deferred tax liabilities | (64,055) | (93,744) |
Net deferred tax liabilities | $ (52,435) | $ (78,540) |
Income taxes - Operating loss c
Income taxes - Operating loss carryovers (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Foreign and Domestic | ||
Operating loss carryovers | ||
Tax credits | $ 1,545 | $ 1,490 |
Foreign and State | ||
Operating loss carryovers | ||
Deferred tax assets for net operating loss carryovers | 2,434 | 1,955 |
Valuation allowances | $ 2,201 | $ 1,753 |
Income taxes - ASC 740-30 (Deta
Income taxes - ASC 740-30 (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Income taxes | ||
Provision for taxes due upon remittance of foreign earnings | $ 0 | $ 0 |
Employee benefit plans 401(k) P
Employee benefit plans 401(k) Plan (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Apr. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 |
401(k) Plan | |||||
Number of months of service required to be completed by employees to be eligible to participate in plan | 11 months | ||||
Maximum contribution by participants (as a percent) | 80.00% | ||||
Maximum contribution by participants | $ 18 | ||||
Percentage of employee contributions matched by the company | 100.00% | ||||
Total net periodic benefit cost | $ 309 | $ 0 | $ 58 | $ 3,165 | |
Maximum | |||||
401(k) Plan | |||||
Matching contribution by the company as a percentage of compensation | 4.00% | ||||
Participants aged 50 years and over | |||||
401(k) Plan | |||||
Maximum contribution by participants | $ 24 |
Employee benefit plans - Nonqua
Employee benefit plans - Nonqualified retirement plan (Details) - Nonqualified retirement plan - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Pension plans | ||||
Matching contribution | $ 0 | $ 0 | $ 0 | $ 0 |
Other current assets | ||||
Pension plans | ||||
Fair value of the plan asset | 5,848 | 5,092 | ||
Accrued liabilities | ||||
Pension plans | ||||
Carrying value of the plan liability | $ 5,854 | $ 5,086 |
Employee benefit plans - Pensio
Employee benefit plans - Pension plan (Details) - Pension plan - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Change in benefit obligation: | ||||
Projected benefit obligation, beginning of year | $ 4,138 | $ 3,691 | ||
Service cost | $ 6 | 37 | 67 | $ 86 |
Interest cost | 10 | 143 | 117 | 103 |
Benefits paid | (83) | (77) | ||
Actuarial loss | 382 | 710 | ||
Exchange rate loss (gain) | 283 | (370) | ||
Projected benefit obligation, end of year | 3,691 | 4,900 | 4,138 | |
Underfunded status, end of year | $ (4,900) | $ (4,138) | ||
Discount rate (as a percent) | 3.10% | 3.30% | ||
Rate of pay increases (as a percent) | 3.00% | 3.00% | ||
Components of net periodic benefit cost: | ||||
Service cost | 6 | $ 37 | $ 67 | 86 |
Interest cost | 10 | 143 | 117 | 103 |
Amortization of unrecognized net loss | 63 | 37 | 45 | |
Net periodic benefit cost for defined benefit plan | 16 | 243 | 221 | 234 |
Defined contribution plans | 129 | 2,237 | 1,904 | 2,246 |
Total net periodic benefit cost | $ 145 | $ 2,480 | $ 2,125 | $ 2,480 |
Elfa | ||||
Pension plans | ||||
Percentage of employees who are plan participants | 3.00% |
Stock-based compensation (Detai
Stock-based compensation (Details) - USD ($) $ in Thousands | Sep. 12, 2017 | Aug. 01, 2016 | Aug. 03, 2015 | Apr. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | Sep. 11, 2017 |
Nonqualified stock options | ||||||||
Stock-based compensation | ||||||||
Stock-based compensation expense (in dollars) | $ 147 | $ 1,520 | $ 1,526 | $ 1,556 | ||||
Unrecognized compensation cost (in dollars) | $ 2,956 | |||||||
Average remaining service period for recognition of unrecognized compensation cost | 1 year 3 months 18 days | |||||||
Intrinsic value | $ 0 | 0 | 2 | |||||
Fair value of shares vested | $ 1,613 | $ 1,464 | $ 1,367 | |||||
2013 Equity Plan | ||||||||
Stock-based compensation | ||||||||
Number of shares reserved for issuance | 3,616,570 | |||||||
2013 Equity Plan | Nonqualified stock options | ||||||||
Stock-based compensation | ||||||||
Awards granted (in shares) | 276,075 | 94,568 | ||||||
Vesting period | 3 years | 3 years | ||||||
Amended and Restated Plan | ||||||||
Stock-based compensation | ||||||||
Number of shares reserved for issuance | 11,116,570 | 11,116,570 | ||||||
Number of shares available for grant | 7,884,679 | |||||||
Amended and Restated Plan | Nonqualified stock options | ||||||||
Stock-based compensation | ||||||||
Awards granted (in shares) | 343,352 | |||||||
Vesting period | 3 years |
Stock-based compensation - Stoc
Stock-based compensation - Stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | 13 Months Ended | |
Apr. 02, 2016 | Mar. 31, 2018 | Feb. 27, 2016 | Apr. 01, 2017 | |
Shares | ||||
Beginning balance (in shares) | 2,890,476 | 2,946,028 | 2,856,005 | 2,890,476 |
Granted (in shares) | 0 | 343,352 | 94,568 | 276,075 |
Exercised (in shares) | 0 | (3,315) | ||
Forfeited (in shares) | (6,690) | (90,881) | (41,791) | (98,815) |
Expired (in shares) | (576) | (158,293) | (14,991) | (121,708) |
Ending balance (in shares) | 3,040,206 | 2,890,476 | 2,946,028 | |
Vested and exercisable at end of year (in shares) | 2,241,283 | 2,110,661 | 2,156,537 | |
Weighted-average exercise price | ||||
Balance at the beginning of the period (in dollars per share) | $ 18.02 | $ 16.81 | $ 18.04 | $ 18.02 |
Granted (in dollars per share) | 4.10 | 17.28 | 5.35 | |
Exercised (in dollars per share) | 17.71 | |||
Forfeited (in dollars per share) | 15.13 | 18 | 18.63 | |
Expired (in dollars per share) | 17.31 | 17.80 | 17.95 | |
Balance at the end of the period (in dollars per share) | 15.40 | 18.02 | 16.81 | |
Exercisable at the end of the period (in dollars per share) | $ 17.53 | $ 17.95 | $ 17.98 | |
Weighted-average contractual term remaining | ||||
Balance at end of year | 6 years 2 months 23 days | 7 years 7 months 28 days | 6 years 9 months 29 days | |
Exercisable at the end of the period | 5 years 7 months 24 days | 7 years 6 months 18 days | 6 years 6 months 4 days | |
Aggregate intrinsic value | ||||
Balance at the end of the period | $ 482 | |||
Exercisable at the end of the period | $ 7 |
Stock-based compensation - Fair
Stock-based compensation - Fair value of stock options (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Stock-based compensation | |||
Weighted average grant date fair value (in dollars per share) | $ 2.33 | $ 3.26 | $ 8.46 |
Weighted-average assumptions used to measure the grant date fair value of the non-qualified stock options granted under the 2013 Equity Plan using the Black Scholes option pricing model | |||
Expected term | 6 years | 6 years | 6 years |
Expected volatility (as a percent) | 60.60% | 67.90% | 50.30% |
Risk-free interest rate (as a percent) | 1.90% | 1.20% | 1.70% |
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Stock-based compensation - Rest
Stock-based compensation - Restricted stock awards (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 12, 2017 | Aug. 02, 2016 | Jul. 01, 2016 | Mar. 31, 2018 | Apr. 01, 2017 |
Restricted shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of restricted shares granted (in shares) | 22,191 | 621,779 | |||
Grant-date fair value (in dollars per share) | $ 5.52 | $ 5.37 | |||
Stock-based compensation cost related to restricted stock awards | $ 506 | $ 463 | |||
Unrecognized compensation expense related to outstanding restricted stock awards | $ 490 | ||||
Average remaining service period for recognition of unrecognized compensation cost | 1 year 3 months 18 days | ||||
2013 Equity Plan | Restricted shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of restricted shares granted (in shares) | 248,937 | 372,842 | |||
Grant-date fair value (in dollars per share) | $ 5.29 | $ 5.42 | |||
2013 Equity Plan | Time-based restricted shares granted on July 1, 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of restricted shares granted (in shares) | 76,089 | ||||
Vesting period | 2 years 9 months | ||||
2013 Equity Plan | Time-based restricted shares granted on August 2, 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of restricted shares granted (in shares) | 50,802 | ||||
Vesting period | 2 years 8 months 1 day | ||||
2013 Equity Plan | Performance-based restricted shares granted on July 1, 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of restricted shares granted (in shares) | 296,753 | ||||
Vesting period | 3 years 9 months | ||||
Performance-based restricted shares that met performance condition | 104,320 | ||||
2013 Equity Plan | Performance-based restricted shares granted on August 2, 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of restricted shares granted (in shares) | 198,135 | ||||
Vesting period | 3 years 8 months 1 day | ||||
Performance-based restricted shares that met performance condition | 61,552 | ||||
Amended and Restated Plan | Restricted shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of restricted shares granted (in shares) | 22,191 | ||||
Grant-date fair value (in dollars per share) | $ 5.52 | ||||
Amended and Restated Plan | Time-based restricted shares granted on December 12, 2017 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of restricted shares granted (in shares) | 4,528 | ||||
Vesting period | 3 years | ||||
Amended and Restated Plan | Performance-based restricted shares granted on December 12, 2017 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of restricted shares granted (in shares) | 17,663 | ||||
Vesting period | 3 years | ||||
Performance-based restricted shares that met performance condition | 9,011 |
Stock-based compensation - Re74
Stock-based compensation - Restricted stock awards activity (Details) - Restricted shares - $ / shares | 12 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Restricted Stock Awards | ||
Nonvested, Beginning balance (in shares) | 246,534 | |
Granted (in shares) | 22,191 | 621,779 |
Vested (in shares) | (31,216) | |
Forfeited (in shares) | (25,490) | (334,923) |
Withheld related to net settlement (in shares) | (9,106) | |
Nonvested, Ending balance (in shares) | 243,235 | 246,534 |
Weighted Average Grant Date Fair Value | ||
Nonvested, Balance at the beginning of the period (in dollars per share) | $ 5.37 | |
Granted (in dollars per share) | 5.52 | $ 5.37 |
Vested (in dollars per share) | 5.37 | |
Forfeited (in dollars per share) | 5.38 | 5.36 |
Withheld related to net settlement (in dollars per share) | 5.37 | |
Nonvested, Balance at the end of the period (in dollars per share) | $ 5.39 | $ 5.37 |
Shareholders' equity - Common s
Shareholders' equity - Common stock (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2018USD ($)Vote$ / sharesshares | Apr. 01, 2017$ / sharesshares | Feb. 28, 2015$ / shares | |
Shareholders' equity | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 | |
Common stock, shares issued | 48,072,187 | 48,045,114 | |
Common stock | |||
Shareholders' equity | |||
Shares issued | 27,073 | 26,923 | |
Issue price (in dollars per share) | $ / shares | $ 4.99 | $ 5.01 | |
Number of votes per share entitled to holders | Vote | 1 | ||
Redemptions or sinking fund provisions | $ | $ 0 |
Shareholders' equity - Preferre
Shareholders' equity - Preferred stock (Details) | Mar. 31, 2018$ / sharesshares |
Shareholders' equity | |
Preferred stock, shares authorized | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 |
Preferred stock, shares issued | 0 |
Preferred stock, shares outstanding | 0 |
Accumulated other comprehensi77
Accumulated other comprehensive income (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Apr. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | |
Rollforward of the amounts included in AOCI, net of taxes | |||
Balance at the beginning of period | $ 207,068 | $ 221,790 | $ 211,568 |
Balance at the end of period | 211,568 | 248,707 | 221,790 |
Unrecognized net actuarial loss included in accumulated other comprehensive income | 1,793 | 1,444 | |
Pension liability adjustment | |||
Rollforward of the amounts included in AOCI, net of taxes | |||
Balance at the beginning of period | (992) | (1,444) | (1,058) |
Other comprehensive income (loss) before reclassifications, net of tax | (66) | (398) | (413) |
Amounts reclassified to earnings, net of tax | 49 | 27 | |
Net current period other comprehensive income (loss) | (66) | (349) | (386) |
Balance at the end of period | (1,058) | (1,793) | (1,444) |
Foreign currency translation | |||
Rollforward of the amounts included in AOCI, net of taxes | |||
Balance at the beginning of period | (18,814) | (21,044) | (14,761) |
Other comprehensive income (loss) before reclassifications, net of tax | 4,053 | 5,623 | (6,283) |
Net current period other comprehensive income (loss) | 4,053 | 5,623 | (6,283) |
Balance at the end of period | (14,761) | (15,421) | (21,044) |
Accumulated other comprehensive income (loss) | |||
Rollforward of the amounts included in AOCI, net of taxes | |||
Balance at the beginning of period | (19,835) | (22,643) | (15,836) |
Other comprehensive income (loss) before reclassifications, net of tax | 3,987 | 6,428 | (7,239) |
Amounts reclassified to earnings, net of tax | 12 | (1,101) | 432 |
Net current period other comprehensive income (loss) | 3,999 | 5,327 | (6,807) |
Balance at the end of period | (15,836) | (17,316) | (22,643) |
Foreign currency hedge instruments | |||
Rollforward of the amounts included in AOCI, net of taxes | |||
Balance at the beginning of period | (29) | (155) | (17) |
Other comprehensive income (loss) before reclassifications, net of tax | 1,203 | (543) | |
Amounts reclassified to earnings, net of tax | 12 | (1,150) | 405 |
Net current period other comprehensive income (loss) | 12 | 53 | (138) |
Balance at the end of period | $ (17) | $ (102) | $ (155) |
Foreign currency forward cont78
Foreign currency forward contracts (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Purchase of inventory from use of forward contracts in Swedish krona (as a percent) | 0.00% | 80.00% | 78.00% | 54.00% |
Purchase of U.S. dollars from use of forward contracts | $ 155 | $ 1,648 | $ 3,905 | $ 5,495 |
Purchase of U.S. dollars from use of forward contracts as a percent of Elfa's U.S. Dollar purchases | 23.00% | 21.00% | 56.00% | 67.00% |
Currency Related Hedge Instruments Term Minimum | 1 month | 1 month | ||
Currency Related Hedge Instruments Term Maximum | 12 months | 12 months | ||
Accumulated other comprehensive loss | $ 17,316 | $ 22,643 | ||
Foreign currency forward contracts | Not Designated as Hedging Instrument | ||||
Loss associated with forward contracts not designated as hedge instruments | 184 | |||
Foreign currency hedge instruments | ||||
Accumulated other comprehensive loss | 102 | |||
Foreign currency hedge instruments | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Unrealized gain for settled foreign currency hedge instruments | 372 | |||
Unrealized gain to be reclassified into earnings over the next 12 months | $ 372 |
Leases (Details)
Leases (Details) | 12 Months Ended |
Mar. 31, 2018store | |
Leases | |
Number of stores | 90 |
Minimum | |
Leases | |
Lease term | 1 year |
Renewal period for the stores | 5 years |
Maximum | |
Leases | |
Lease term | 20 years |
Renewal period for the stores | 20 years |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Future minimum lease payments due under noncancellable operating leases: | ||||
Within 1 year | $ 87,525 | |||
2 years | 83,717 | |||
3 years | 77,998 | |||
4 years | 63,208 | |||
5 years | 55,533 | |||
Thereafter | 184,523 | |||
Total minimum lease payments | 552,504 | |||
Future minimum lease payments due under noncancellable capital leases: | ||||
within 1 year | 254 | |||
2 years | 261 | |||
3 years | 165 | |||
Total minimum lease payments | 680 | |||
Less amount representing interest | (18) | |||
Present value of minimum lease payments | 662 | |||
Rent expense | $ 6,495 | 86,070 | $ 80,647 | $ 75,834 |
Percentage-of-sales rent expense included in rent expense | $ 32 | $ 354 | $ 416 | $ 450 |
Commitments and contingencies (
Commitments and contingencies (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Standby letters of credit | |
Commitments and contingencies | |
Amount outstanding | $ 3,901 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 |
Fair value | ||
Liabilities | ||
Estimated fair value of long-term debt, including current maturities | $ 295,605 | $ 295,005 |
Recurring | ||
Assets | ||
Total assets | 5,848 | 5,933 |
Recurring | Other current assets | ||
Assets | ||
Nonqualified retirement plan | $ 5,848 | 5,092 |
Not Designated as Hedging Instrument | Recurring | Foreign currency forward contracts | Level 2 | Other current assets | ||
Assets | ||
Foreign currency forward contracts | $ 841 |
Segment reporting (Details)
Segment reporting (Details) | 12 Months Ended |
Mar. 31, 2018segmentcountry | |
Segment reporting | |
Number of reportable segments | segment | 2 |
Elfa | |
Segment reporting | |
Number of countries in which products are sold on wholesale basis | country | 30 |
Segment reporting - Earnings or
Segment reporting - Earnings or loss before income taxes for operating segments (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Apr. 02, 2016 | Apr. 02, 2016 | Apr. 04, 2015 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Segment reporting | ||||||||||||||
Sales | $ 69,218 | $ 66,761 | $ 232,764 | $ 222,986 | $ 218,410 | $ 183,068 | $ 221,042 | $ 216,380 | $ 205,060 | $ 177,448 | $ 857,228 | $ 819,930 | $ 794,630 | |
Adjusted EBITDA | 5,439 | 89,603 | 86,559 | 68,159 | ||||||||||
Depreciation and amortization | $ 3,009 | 3,009 | 37,922 | 37,124 | 34,230 | |||||||||
Interest expense, net | 1,550 | 25,013 | 16,687 | 16,810 | ||||||||||
Capital expenditures | $ 2,435 | 2,435 | 27,646 | 28,515 | 46,431 | |||||||||
Goodwill | 202,815 | 202,815 | 202,815 | 202,815 | 202,815 | |||||||||
Trade names | 229,401 | 226,685 | 229,401 | 226,685 | 228,368 | |||||||||
Assets | 749,369 | 761,834 | 749,369 | 761,834 | 758,119 | |||||||||
TCS | ||||||||||||||
Segment reporting | ||||||||||||||
Net benefit on deferred compensation related to amendment and restatement of employment agreement | 3,900 | |||||||||||||
Operating segments | TCS | ||||||||||||||
Segment reporting | ||||||||||||||
Sales | 64,331 | 787,375 | 752,675 | 724,079 | ||||||||||
Adjusted EBITDA | 5,271 | 77,274 | 75,268 | 58,827 | ||||||||||
Depreciation and amortization | 2,543 | 32,504 | 31,572 | 28,767 | ||||||||||
Interest expense, net | 1,532 | 24,740 | 16,403 | 16,484 | ||||||||||
Capital expenditures | 1,640 | 25,678 | 25,901 | 42,412 | ||||||||||
Goodwill | 202,815 | 202,815 | 202,815 | 202,815 | 202,815 | |||||||||
Trade names | 187,048 | 187,048 | 187,048 | 187,048 | 187,048 | |||||||||
Assets | 635,529 | 656,884 | 635,529 | 656,884 | 654,611 | |||||||||
Operating segments | Elfa | ||||||||||||||
Segment reporting | ||||||||||||||
Sales | 4,887 | 69,853 | 67,255 | 70,551 | ||||||||||
Adjusted EBITDA | (471) | 13,233 | 11,186 | 9,157 | ||||||||||
Depreciation and amortization | 466 | 5,418 | 5,552 | 5,463 | ||||||||||
Interest expense, net | 18 | 273 | 284 | 326 | ||||||||||
Capital expenditures | 795 | 1,968 | 2,614 | 4,019 | ||||||||||
Trade names | 42,353 | 39,637 | 42,353 | 39,637 | 41,320 | |||||||||
Assets | 117,592 | 107,998 | 117,592 | 107,998 | 107,136 | |||||||||
lntersegment | ||||||||||||||
Segment reporting | ||||||||||||||
Sales | (1,990) | (54,939) | (47,898) | (47,010) | ||||||||||
lntersegment | Elfa | ||||||||||||||
Segment reporting | ||||||||||||||
Sales | 1,990 | 54,939 | 47,898 | 47,010 | ||||||||||
Corporate/other | ||||||||||||||
Segment reporting | ||||||||||||||
Adjusted EBITDA | $ 639 | (904) | 105 | 175 | ||||||||||
Assets | $ (3,752) | $ (3,048) | $ (3,752) | $ (3,048) | $ (3,628) |
Segment reporting - Reconciliat
Segment reporting - Reconciliation of Adjusted EBITDA by segment to income before taxes (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Apr. 02, 2016 | Apr. 02, 2016 | Apr. 04, 2015 | Sep. 30, 2017 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Segment reporting | |||||||
Income before taxes | $ 692 | $ 978 | $ 6,705 | $ 24,355 | $ 8,051 | ||
Depreciation and amortization | $ (3,009) | (3,009) | (37,922) | (37,124) | (34,230) | ||
Interest expense, net | (1,550) | (25,013) | (16,687) | (16,810) | |||
Pre-opening costs | (191) | (5,293) | (6,852) | (9,033) | |||
Stock-based compensation | $ (147) | (147) | (2,026) | (1,989) | (1,556) | ||
Loss on extinguishment of debt | $ 2,369 | (2,369) | |||||
Optimization Plan implementation charges | (11,479) | ||||||
Total Adjusted EBITDA | 5,439 | 89,603 | 86,559 | 68,159 | |||
Operating segments | |||||||
Segment reporting | |||||||
Income before taxes | 692 | 6,705 | 24,355 | 8,051 | |||
Depreciation and amortization | 3,009 | 37,922 | 37,124 | 34,230 | |||
Interest expense, net | 1,550 | 25,013 | 16,687 | 16,810 | |||
Pre-opening costs | 191 | 5,293 | 6,852 | 9,033 | |||
Non-cash rent | (200) | (1,915) | (1,365) | (1,844) | |||
Stock-based compensation | 147 | 2,026 | 1,989 | 1,556 | |||
Loss on extinguishment of debt | 2,369 | ||||||
Foreign exchange (gains) losses | 60 | (596) | (342) | 241 | |||
Optimization Plan implementation charges | 11,479 | ||||||
Elfa manufacturing facility closure | 803 | ||||||
Other adjustments | (10) | 504 | 1,259 | 82 | |||
Total Adjusted EBITDA | $ 5,439 | $ 89,603 | $ 86,559 | $ 68,159 |
Segment reporting - Sales by me
Segment reporting - Sales by merchandise category as a percentage of total net sales (Details) | 12 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 100.00% | 100.00% | 100.00% |
Net sales | Sales by merchandise category | Custom Closets | |||
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 48.00% | 48.00% | 46.00% |
Net sales | Sales by merchandise category | Storage, Long-Term Storage, Shelving | |||
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 14.00% | 14.00% | 14.00% |
Net sales | Sales by merchandise category | Kitchen and Trash | |||
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 13.00% | 13.00% | 13.00% |
Net sales | Sales by merchandise category | Office, Collections, Hooks | |||
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 8.00% | 8.00% | 9.00% |
Net sales | Sales by merchandise category | Bath, Travel, Laundry | |||
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 8.00% | 8.00% | 9.00% |
Net sales | Sales by merchandise category | Gift Packaging, Seasonal, Impulse | |||
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 7.00% | 8.00% | 8.00% |
Net sales | Sales by merchandise category | Other | |||
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 2.00% | 1.00% | 1.00% |
Net income per common share (De
Net income per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 02, 2016 | Apr. 04, 2015 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Numerator: | |||||||||||||
Net income | $ 354 | $ 638 | $ (399) | $ 28,379 | $ (875) | $ (7,677) | $ 8,377 | $ 5,092 | $ 3,541 | $ (2,057) | $ 19,428 | $ 14,953 | $ 5,142 |
Denominator: | |||||||||||||
Weighted-average common shares - basic (in shares) | 47,986,975 | 48,072,187 | 48,067,754 | 48,058,231 | 48,047,937 | 48,009,029 | 47,999,535 | 47,991,445 | 47,986,975 | 48,061,527 | 47,996,746 | 47,985,717 | |
Options and other dilutive securities | $ 86,198 | $ 19,264 | |||||||||||
Weighted-average common shares - diluted (in shares) | 47,986,975 | 48,072,187 | 48,167,882 | 48,058,231 | 48,047,937 | 48,073,420 | 48,022,499 | 48,001,112 | 47,986,975 | 48,147,725 | 48,016,010 | 47,985,717 | |
Net income per common share - basic and diluted | $ 0.01 | $ (0.01) | $ 0.59 | $ (0.02) | $ (0.16) | $ 0.17 | $ 0.11 | $ 0.07 | $ (0.04) | $ 0.40 | $ 0.31 | $ 0.11 | |
Stock options outstanding | |||||||||||||
Antidilutive securities not included: | |||||||||||||
Antidilutive securities | 2,886,138 | 3,006,604 | 2,954,114 | 2,875,900 | |||||||||
Nonvested restricted stock awards | |||||||||||||
Antidilutive securities not included: | |||||||||||||
Antidilutive securities | 41,907 | 131,957 |
Quarterly results of operatio88
Quarterly results of operations (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 02, 2016 | Apr. 04, 2015 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Quarterly results of operations | |||||||||||||
Net sales | $ 69,218 | $ 66,761 | $ 232,764 | $ 222,986 | $ 218,410 | $ 183,068 | $ 221,042 | $ 216,380 | $ 205,060 | $ 177,448 | $ 857,228 | $ 819,930 | $ 794,630 |
Gross profit | 40,195 | 39,254 | 136,516 | 130,561 | 126,374 | 103,610 | 127,318 | 125,702 | 118,355 | 104,695 | 497,061 | 476,070 | 463,551 |
Income (loss) from operations | 2,242 | 2,565 | 20,341 | 13,899 | 7,884 | (8,037) | 17,181 | 12,561 | 10,272 | 1,028 | 34,087 | 41,042 | 24,861 |
Net (loss) income | $ 354 | $ 638 | $ (399) | $ 28,379 | $ (875) | $ (7,677) | $ 8,377 | $ 5,092 | $ 3,541 | $ (2,057) | $ 19,428 | $ 14,953 | $ 5,142 |
Weighted-average shares used in computing basic net (loss) income per share (in shares) | 47,986,975 | 48,072,187 | 48,067,754 | 48,058,231 | 48,047,937 | 48,009,029 | 47,999,535 | 47,991,445 | 47,986,975 | 48,061,527 | 47,996,746 | 47,985,717 | |
Weighted-average shares used in computing diluted net (loss) income per share (in Shares) | 47,986,975 | 48,072,187 | 48,167,882 | 48,058,231 | 48,047,937 | 48,073,420 | 48,022,499 | 48,001,112 | 47,986,975 | 48,147,725 | 48,016,010 | 47,985,717 | |
Basic and diluted net (loss) income per common share (in dollars per share) | $ 0.01 | $ (0.01) | $ 0.59 | $ (0.02) | $ (0.16) | $ 0.17 | $ 0.11 | $ 0.07 | $ (0.04) | $ 0.40 | $ 0.31 | $ 0.11 |
Transition Period Financial I89
Transition Period Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 02, 2016 | Apr. 04, 2015 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Consolidated statement of operations data: | |||||||||||||
Net sales | $ 69,218 | $ 66,761 | $ 232,764 | $ 222,986 | $ 218,410 | $ 183,068 | $ 221,042 | $ 216,380 | $ 205,060 | $ 177,448 | $ 857,228 | $ 819,930 | $ 794,630 |
Gross profit | 40,195 | 39,254 | 136,516 | 130,561 | 126,374 | 103,610 | 127,318 | 125,702 | 118,355 | 104,695 | 497,061 | 476,070 | 463,551 |
Selling, general, and administrative expenses | 34,504 | 33,728 | 411,721 | 387,948 | 393,810 | ||||||||
Income from operations | 2,242 | 2,565 | 20,341 | 13,899 | 7,884 | (8,037) | 17,181 | 12,561 | 10,272 | 1,028 | 34,087 | 41,042 | 24,861 |
Income before taxes | 692 | 978 | 6,705 | 24,355 | 8,051 | ||||||||
Provision for income taxes | 338 | 340 | (12,723) | 9,402 | 2,909 | ||||||||
Net income | $ 354 | $ 638 | $ (399) | $ 28,379 | $ (875) | $ (7,677) | $ 8,377 | $ 5,092 | $ 3,541 | $ (2,057) | $ 19,428 | $ 14,953 | $ 5,142 |
Net income per common share: | |||||||||||||
Basic and diluted (in dollars per share) | $ 0.01 | $ 0.01 | |||||||||||
Weighted-average common shares - basic and diluted (in shares) | 47,986,975 | 47,983,681 |
Optimization Plan (Details)
Optimization Plan (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2018USD ($) | |
Optimization Plan charges | |
Total Optimization Plan charges | $ 11,479 |
Rollforward of exit or disposal activities | |
Costs Incurred | 11,479 |
Selling, general & administrative | |
Optimization Plan charges | |
Consulting fees and other costs | 6,916 |
TCS | Other expenses | |
Optimization Plan charges | |
Severance | 1,836 |
TCS | Severance | |
Optimization Plan charges | |
Total Optimization Plan charges | 1,836 |
Rollforward of exit or disposal activities | |
Costs Incurred | 1,836 |
Payments | (1,788) |
Reserve balance, end of period | 48 |
Total costs expected to be incurred | 1,836 |
TCS | Severance | Accrued liabilities | |
Rollforward of exit or disposal activities | |
Reserve balance, end of period | 48 |
Elfa | Other expenses | |
Optimization Plan charges | |
Severance | $ 2,727 |
Schedule I-Condensed Financia91
Schedule I-Condensed Financial Information of registrant - Condensed balance sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | Feb. 27, 2016 | Feb. 28, 2015 |
Current assets: | |||||
Accounts receivable from subsidiaries | $ 25,528 | $ 27,476 | |||
Total current assets | 154,194 | 162,685 | |||
Noncurrent assets: | |||||
Total noncurrent assets | 595,175 | 599,149 | |||
Total assets | 749,369 | 761,834 | $ 758,119 | ||
Current liabilities: | |||||
Accounts payable to subsidiaries | 43,692 | 44,762 | |||
Total current liabilities | 126,537 | 113,052 | |||
Noncurrent liabilities | 374,125 | 426,992 | |||
Total liabilities | 500,662 | 540,044 | |||
Shareholders' equity: | |||||
Common stock | 481 | 480 | |||
Additional paid-in capital | 861,263 | 859,102 | |||
Retained deficit | (595,721) | (615,149) | |||
Total shareholders' equity | 248,707 | 221,790 | $ 211,568 | $ 207,068 | $ 201,862 |
Total liabilities and shareholders' equity | 749,369 | 761,834 | |||
The Container Store Group, Inc. | |||||
Current assets: | |||||
Accounts receivable from subsidiaries | 1,120 | 985 | |||
Total current assets | 1,120 | 985 | |||
Noncurrent assets: | |||||
Investment in subsidiaries | 247,587 | 220,805 | |||
Total noncurrent assets | 247,587 | 220,805 | |||
Total assets | 248,707 | 221,790 | |||
Shareholders' equity: | |||||
Common stock | 481 | 480 | |||
Additional paid-in capital | 861,263 | 859,102 | |||
Retained deficit | (613,037) | (637,792) | |||
Total shareholders' equity | 248,707 | 221,790 | |||
Total liabilities and shareholders' equity | $ 248,707 | $ 221,790 |
Schedule I-Condensed Financia92
Schedule I-Condensed Financial Information of registrant - Condensed statements of operations (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Apr. 02, 2016 | Apr. 02, 2016 | Apr. 04, 2015 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Condensed statements of operations | ||||||||||||||
Net sales | $ 69,218 | $ 66,761 | $ 232,764 | $ 222,986 | $ 218,410 | $ 183,068 | $ 221,042 | $ 216,380 | $ 205,060 | $ 177,448 | $ 857,228 | $ 819,930 | $ 794,630 | |
Cost of sales (excluding depreciation and amortization) | 29,023 | 360,167 | 343,860 | 331,079 | ||||||||||
Gross profit | 40,195 | 39,254 | 136,516 | 130,561 | 126,374 | 103,610 | 127,318 | 125,702 | 118,355 | 104,695 | 497,061 | 476,070 | 463,551 | |
Selling, general, and administrative expenses (excluding depreciation and amortization) | 34,504 | 33,728 | 411,721 | 387,948 | 393,810 | |||||||||
Stock-based compensation | $ 147 | 147 | 2,026 | 1,989 | 1,556 | |||||||||
Pre-opening costs | 191 | 5,293 | 6,852 | 9,033 | ||||||||||
Depreciation and amortization | $ 3,009 | 3,009 | 37,922 | 37,124 | 34,230 | |||||||||
Other expenses | 102 | 5,734 | 1,058 | |||||||||||
Loss on disposal of assets | 278 | 57 | 61 | |||||||||||
Income from operations | 2,242 | 2,565 | 20,341 | 13,899 | 7,884 | (8,037) | 17,181 | 12,561 | 10,272 | 1,028 | 34,087 | 41,042 | 24,861 | |
Interest expense | 1,550 | 25,013 | 16,687 | 16,810 | ||||||||||
Income before taxes and equity in net income of subsidiaries | 692 | 978 | 6,705 | 24,355 | 8,051 | |||||||||
Provision for income taxes | 338 | 340 | (12,723) | 9,402 | 2,909 | |||||||||
Net income | 354 | $ 638 | $ (399) | $ 28,379 | $ (875) | $ (7,677) | $ 8,377 | $ 5,092 | $ 3,541 | $ (2,057) | 19,428 | 14,953 | 5,142 | |
The Container Store Group, Inc. | ||||||||||||||
Condensed statements of operations | ||||||||||||||
Net income of subsidiaries | 354 | 19,428 | 14,953 | 5,142 | ||||||||||
Net income | $ 354 | $ 19,428 | $ 14,953 | $ 5,142 |
Schedule I-Condensed Financia93
Schedule I-Condensed Financial Information of registrant - Condensed statements of comprehensive income (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 02, 2016 | Apr. 04, 2015 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Mar. 31, 2018 | Apr. 01, 2017 | Feb. 27, 2016 | |
Condensed statements of comprehensive income | |||||||||||||
Net income | $ 354 | $ 638 | $ (399) | $ 28,379 | $ (875) | $ (7,677) | $ 8,377 | $ 5,092 | $ 3,541 | $ (2,057) | $ 19,428 | $ 14,953 | $ 5,142 |
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) of $30, $(85), $606, and $7 | 12 | 53 | (138) | 853 | |||||||||
Unrealized gain (loss) on financial instruments, taxes | 7 | 30 | (85) | 606 | |||||||||
Pension liability adjustment, net of tax provision of $98, $142, $39, and $0 | (66) | (349) | (386) | 175 | |||||||||
Pension liability adjustment, taxes | 0 | (98) | (142) | (39) | |||||||||
Foreign currency translation adjustment | 4,053 | 5,623 | (6,283) | (2,521) | |||||||||
Comprehensive income | 4,353 | 24,755 | 8,146 | 3,649 | |||||||||
The Container Store Group, Inc. | |||||||||||||
Condensed statements of comprehensive income | |||||||||||||
Net income | 354 | 19,428 | 14,953 | 5,142 | |||||||||
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) of $30, $(85), $606, and $7 | 12 | 53 | (138) | 853 | |||||||||
Unrealized gain (loss) on financial instruments, taxes | 7 | 30 | (85) | 606 | |||||||||
Pension liability adjustment, net of tax provision of $98, $142, $39, and $0 | (66) | (349) | (386) | 175 | |||||||||
Pension liability adjustment, taxes | 0 | 98 | 142 | 39 | |||||||||
Foreign currency translation adjustment | 4,053 | 5,623 | (6,283) | (2,521) | |||||||||
Comprehensive income | $ 4,353 | $ 24,755 | $ 8,146 | $ 3,649 |
Schedule I-Condensed Financia94
Schedule I-Condensed Financial Information of registrant - Disclosure (Details) $ in Thousands | Mar. 31, 2018USD ($) | Aug. 18, 2017USD ($) | Apr. 06, 2012USD ($) | Mar. 31, 2018USD ($) | Apr. 01, 2017USD ($) |
Guarantees and restrictions | |||||
Long-term debt outstanding | $ 295,053 | $ 295,053 | $ 321,138 | ||
Restricted net assets of consolidated subsidiaries | 236,207 | 236,207 | |||
Revolving credit facility | |||||
Guarantees and restrictions | |||||
Available credit | 65,625 | $ 65,625 | |||
Borrowings through the Revolving Credit Facility | $ 100,000 | ||||
Revolving credit facility | LIBOR | |||||
Guarantees and restrictions | |||||
Interest rate margin (as a percent) | 1.25% | 1.25% | |||
Minimum | Revolving credit facility | |||||
Guarantees and restrictions | |||||
Threshold fixed charge coverage ratio for payment of dividend | 1.25 | ||||
Maximum | Revolving credit facility | |||||
Guarantees and restrictions | |||||
Amount of dividend payable during term of debt | 10,000 | $ 10,000 | |||
Senior secured term loan facility | |||||
Guarantees and restrictions | |||||
Long-term debt outstanding | $ 294,375 | 294,375 | $ 316,760 | ||
Debt instrument annual step down Leverage Ratio | 0.25 | ||||
Aggregate principle amount | $ 300,000 | ||||
Debt instrument annual principal amortization percentage | 2.50% | ||||
Debt instrument percentage of upfront fee on aggregate principal value | 3.00% | ||||
Fee premium imposed on voluntary prepayments (as a percent) | 1.00% | ||||
Period in which a premium is imposed on voluntary prepayments, in months | 12 months | ||||
Senior secured term loan facility | LIBOR | |||||
Guarantees and restrictions | |||||
Interest rate margin (as a percent) | 7.00% | 7.00% | |||
Senior secured term loan facility | Base rate | |||||
Guarantees and restrictions | |||||
Interest rate margin (as a percent) | 6.00% | ||||
Senior secured term loan facility | Maximum | |||||
Guarantees and restrictions | |||||
Debt Instrument leverage ratio covenant | 5 | ||||
Amount of dividend payable during term of debt | $ 10,000 | $ 10,000 | |||
Threshold consolidated net leverage ratio for payment of dividend | 2 | ||||
The Container Store Group, Inc. | |||||
Guarantees and restrictions | |||||
Restricted net assets of consolidated subsidiaries | 236,207 | $ 236,207 | |||
The Container Store Group, Inc. | Revolving credit facility | |||||
Guarantees and restrictions | |||||
Available credit | 65,625 | 65,625 | |||
Borrowings through the Revolving Credit Facility | 100,000 | 100,000 | |||
The Container Store Group, Inc. | Minimum | Revolving credit facility | |||||
Guarantees and restrictions | |||||
Threshold fixed charge coverage ratio for payment of dividend | 1.25 | ||||
The Container Store Group, Inc. | Maximum | Revolving credit facility | |||||
Guarantees and restrictions | |||||
Amount of dividend payable during term of debt | 10,000 | 10,000 | |||
The Container Store Group, Inc. | Senior secured term loan facility | |||||
Guarantees and restrictions | |||||
Long-term debt outstanding | $ 294,375 | $ 294,375 | |||
The Container Store Group, Inc. | Senior secured term loan facility | Maximum | |||||
Guarantees and restrictions | |||||
Threshold consolidated net leverage ratio for payment of dividend | 2 |