Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 30, 2019 | May 24, 2019 | Sep. 28, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | Container Store Group, Inc. | ||
Entity Central Index Key | 0001411688 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 30, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --03-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 192,079,384 | ||
Common Stock Outstanding | 48,891,270 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Mar. 30, 2019 | Mar. 31, 2018 |
Current assets: | ||
Cash | $ 7,364 | $ 8,399 |
Accounts receivable, net | 25,568 | 25,528 |
Inventory | 108,650 | 97,362 |
Prepaid expenses | 10,078 | 11,281 |
Income taxes receivable | 1,003 | 15 |
Other current assets | 11,705 | 11,609 |
Total current assets | 164,368 | 154,194 |
Noncurrent assets: | ||
Property and equipment, net | 152,588 | 158,389 |
Goodwill | 202,815 | 202,815 |
Trade names | 225,150 | 229,401 |
Deferred financing costs, net | 241 | 312 |
Noncurrent deferred tax assets, net | 1,912 | 2,404 |
Other assets | 1,670 | 1,854 |
Total noncurrent assets | 584,376 | 595,175 |
Total assets | 748,744 | 749,369 |
Current liabilities: | ||
Accounts payable | 58,734 | 43,692 |
Accrued liabilities | 67,163 | 70,494 |
Revolving lines of credit | 5,511 | |
Current portion of long-term debt | 7,016 | 7,771 |
Income taxes payable | 2,851 | 4,580 |
Total current liabilities | 141,275 | 126,537 |
Noncurrent liabilities: | ||
Long-term debt | 254,960 | 277,394 |
Noncurrent deferred tax liabilities, net | 51,702 | 54,839 |
Deferred rent and other long-term liabilities | 36,114 | 41,892 |
Total noncurrent liabilities | 342,776 | 374,125 |
Total liabilities | 484,051 | 500,662 |
Shareholders' equity: | ||
Common stock, $0.01 par value, 250,000,000 shares authorized; 48,142,319 shares issued at March 30, 2019 and 48,072,187 shares issued at March 31, 2018 | 481 | 481 |
Additional paid-in capital | 863,978 | 861,263 |
Accumulated other comprehensive loss | (26,132) | (17,316) |
Retained deficit | (573,634) | (595,721) |
Total shareholders' equity | 264,693 | 248,707 |
Total liabilities and shareholders' equity | $ 748,744 | $ 749,369 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Mar. 30, 2019 | Mar. 31, 2018 | Apr. 02, 2016 |
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 | 48,142,319 | 48,072,187 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Consolidated statements of operations | ||
Net sales | $ 895,093 | $ 857,228 |
Cost of sales (excluding depreciation and amortization) | 371,410 | 360,167 |
Gross profit | 523,683 | 497,061 |
Selling, general, and administrative expenses (excluding depreciation and amortization) | 430,997 | 411,721 |
Stock-based compensation | 2,846 | 2,026 |
Pre-opening costs | 2,103 | 5,293 |
Depreciation and amortization | 36,305 | 37,922 |
Other expenses | 177 | 5,734 |
(Gain) loss on disposal of assets | (63) | 278 |
Income from operations | 51,318 | 34,087 |
Interest expense, net | 27,275 | 25,013 |
Loss on extinguishment of debt | 2,082 | 2,369 |
Income before taxes | 21,961 | 6,705 |
Provision (benefit) for income taxes | 281 | (12,723) |
Net income | $ 21,680 | $ 19,428 |
Net income per common share—basic and diluted | $ 0.45 | $ 0.40 |
Weighted-average common shares - basic (in shares) | 48,139,929 | 48,061,527 |
Weighted-average common shares - diluted (in shares) | 48,400,407 | 48,147,725 |
Consolidated statements of comp
Consolidated statements of comprehensive income - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Consolidated statements of comprehensive income | |||
Net income | $ 21,680 | $ 19,428 | $ 14,953 |
Unrealized (loss) gain on financial instruments, net of tax (benefit) provision of $(304), $30, and ($85) | (865) | 53 | (138) |
Pension liability adjustment, net of tax provision | (40) | (349) | (386) |
Foreign currency translation adjustment | (7,911) | 5,623 | (6,283) |
Comprehensive income | $ 12,864 | $ 24,755 | $ 8,146 |
Consolidated statements of co_2
Consolidated statements of comprehensive income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Consolidated statements of comprehensive income | |||
Unrealized (loss) gain on financial instruments, net of tax (benefit) provision | $ (304) | $ 30 | $ (85) |
Pension liability adjustment, tax provision | $ 11 | $ 98 | $ 142 |
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 |
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Balance at the beginning 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 (in shares) | 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 on financial instruments, net of tax benefit | (138) | (138) | |||
Pension liability adjustment, net of tax provision | (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 on financial instruments, net of tax benefit | 53 | 53 | |||
Pension liability adjustment, net of tax provision | (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 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 21,680 | $ 21,680 | |||
Stock-based compensation | 2,846 | 2,846 | |||
Vesting of restricted stock awards | (1) | (1) | |||
Vesting of restricted stock awards (in shares) | 70,132 | ||||
Taxes related to net share settlement of restricted stock awards | (130) | (130) | |||
Foreign currency translation adjustment | (7,911) | (7,911) | |||
Unrealized loss on financial instruments, net of tax benefit | (865) | (865) | |||
Pension liability adjustment, net of tax provision | (40) | (40) | |||
Balance at the end of period at Mar. 30, 2019 | $ 481 | $ 863,978 | $ (26,132) | (573,634) | $ 264,693 |
Balance (in shares) at Mar. 30, 2019 | 48,142,319 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Cumulative adjustment for adoption of ASC 606 | ASU 2014-09 | $ 407 | $ 407 |
Consolidated statements of sh_2
Consolidated statements of shareholders' equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
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 | $ (304) | $ 30 | $ (85) | |
Pension liability adjustment, tax provision | $ 11 | $ 98 | $ 142 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Operating activities | |||
Net income | $ 21,680 | $ 19,428 | $ 14,953 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 36,305 | 37,922 | 37,124 |
Stock-based compensation | 2,846 | 2,026 | 1,989 |
(Gain) loss on disposal of assets | (63) | 278 | 57 |
Loss on extinguishment of debt | (2,082) | (2,369) | |
Deferred tax benefit | (1,563) | (25,545) | (96) |
Non-cash interest | 2,351 | 2,664 | 1,921 |
Other | (60) | 227 | (29) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,395) | 3,192 | (5,861) |
Inventory | (14,688) | 8,406 | (19,598) |
Prepaid expenses and other assets | 1,510 | (2,133) | 4,028 |
Accounts payable and accrued liabilities | 13,622 | 6,249 | 10,965 |
Income taxes | (2,428) | 625 | 3,527 |
Other noncurrent liabilities | (5,303) | 6,468 | (4,341) |
Net cash provided by operating activities | 54,896 | 62,176 | 44,639 |
Investing activities | |||
Additions to property and equipment | (33,670) | (27,646) | (28,515) |
Proceeds from sale of property and equipment | 899 | 96 | 7 |
Net cash used in investing activities | (32,771) | (27,550) | (28,508) |
Financing activities | |||
Borrowings on revolving lines of credit | 55,201 | 47,486 | 42,731 |
Payments on revolving lines of credit | (49,484) | (47,486) | (46,216) |
Borrowings on long-term debt | 331,500 | 335,000 | 30,000 |
Payments on long-term debt and capital leases | (356,712) | (361,403) | (40,496) |
Payment of debt issuance costs | (2,384) | (11,246) | |
Payment of taxes with shares withheld upon restricted stock vesting | (128) | (39) | |
Net cash used in financing activities | (22,007) | (37,688) | (13,981) |
Effect of exchange rate changes on cash | (1,153) | 725 | (223) |
Net (decrease) increase in cash | (1,035) | (2,337) | 1,927 |
Cash at beginning of fiscal period | 8,399 | 10,736 | 8,809 |
Cash at end of fiscal period | 7,364 | 8,399 | 10,736 |
Cash paid during the year for: | |||
Interest | 24,934 | 22,119 | 14,656 |
Taxes | 11,838 | 4,740 | 7,651 |
Supplemental information for non-cash investing and financing activities: | |||
Purchases of property and equipment (included in accounts payable) | 1,029 | 741 | 138 |
Capital lease obligation incurred | $ 284 | $ 215 | $ 691 |
Nature of business and summary
Nature of business and summary of significant accounting policies | 12 Months Ended |
Mar. 30, 2019 | |
Nature of business and summary of significant accounting policies | |
Nature of business and summary of significant accounting policies | The Container Store Group, Inc. Notes to consolidated financial statements (In thousands, except share amounts and unless March 30, 2019 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 (which includes business sales), as well as our installation and organizational services business. As of March 30, 2019, The Container Store, Inc. operated 92 stores with an average size of approximately 25,000 square feet (19,000 selling square feet) in 33 states and the District of Columbia. The Container Store, Inc. also offers all of its products directly to its 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 2016, the Company’s fiscal year ended on the Saturday closest to February 28 th . All references herein to “fiscal 2019” represent the results of the 52-week fiscal year ended March 28, 2020, "fiscal 2018" represent the results of the 52-week fiscal year ended March 30, 2019, references 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. Management estimates The preparation of the Company’s consolidated financial statements in accordance with U.S. GAAP 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, obsolescence and shrink 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. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014‑09, Revenue from Contracts with Customers , an updated standard on revenue recognition (codified as Accounting Standards Codification (“ASC”) Topic 606). The Company adopted this standard in the first quarter of fiscal 2018 and elected to use the modified-retrospective approach for implementation of the standard. 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 Company identified certain impacts to our accounting for gift cards given away for promotional or marketing purposes. Under previous GAAP, the value of promotional gift cards was recorded as selling, general, and administrative expense (“SG&A”). 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 disallows the capitalization of direct-response advertising costs which impacts the timing of recognition of certain advertising production and distribution costs. The Company adopted this standard in the first quarter of fiscal 2018 and the Company elected to use the modified‑retrospective approach for implementation of the standard. Upon transition on April 1, 2018, the Company recorded a cumulative adjustment to increase retained earnings/(deficit) and decrease accrued liabilities by approximately $400. The Company also reclassified 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. Overall, the adoption of ASU 2014-09 did not result in a material impact to the Company’s financial statements. Note 14 provides the related disaggregated revenue disclosures. Contract Balances Contract balances as a result of transactions with customers primarily consist of trade receivables included in Accounts receivable, net, unearned revenue included in Accrued liabilities, and gift cards and store credits outstanding included in Accrued liabilities in the Company's Consolidated Balance Sheets. Note 3 provides the Company's trade receivables, unearned revenue, and gift cards and store credits outstanding with customers as of March 30, 2019 and March 31, 2018. Below is a rollforward of contract liability balances from March 31, 2018 to March 30, 2019, which illustrates the amount of contract liability as of March 31, 2018 which was subsequently recognized into revenue in the fifty-two weeks ended March 30, 2019: Contract liability Revenue recognized Contract liabilities Contract liability balance at from beginning added during balance at March 31, 2018 (1) liability period (2) March 30, 2019 Unearned revenue $ 11,080 $ (10,880) $ 10,544 $ 10,744 Gift cards and store credits outstanding $ 8,470 $ (3,184) $ 3,491 $ 8,777 (1) Gift cards and store credits outstanding balance is net of revenue recognition transition adjustment (2) Net of estimated breakage 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 2018) and the breakage amounts are included in net sales in the consolidated statement of operations. The Company recorded $942, $1,656, and $1,072 of gift card breakage in fiscal years 2018, 2017, and 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 SG&A. 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 upon initial mailing to the customer. Advertising costs are recorded in SG&A. Pre‑opening advertising costs are recorded in pre‑opening costs. Catalog and direct mailings costs capitalized at March 30, 2019 and March 31, 2018, amounted to $669 and $375, respectively, and are recorded in prepaid expenses on the accompanying consolidated balance sheets. Total advertising expense incurred for fiscal years 2018, 2017, and 2016, was $34,791, $32,860, and $31,525, 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 FASB 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 30, 2019 and March 31, 2018. 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, the Company does not consider the earnings subject to the transition tax under the Tax Act permanently reinvested. All other earnings are considered permanently reinvested. 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. 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. 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. 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 $57 and $170 at March 30, 2019 and March 31, 2018, 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 in-bound 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 years Furniture, fixtures, and equipment to years Computer software to 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 30, 2019, March 31, 2018, and April 1, 2017, the Company capitalized $4,565, $4,397, and $4,392, respectively, and amortized $4,374, $4,346, and $3,498, respectively, 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 SG&A. 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. 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 $2,835 and $2,810 as of March 30, 2019 and March 31, 2018, 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 2018, the rate of exchange from U.S. dollar to Swedish krona increased from 8.4 to 9.3. The carrying amount of assets related to Elfa and subject to currency fluctuation was $108,674 and $119,995 as of March 30, 2019 and March 31, 2018, respectively. Foreign currency realized losses of $60, realized gains of $596, and realized gains of $342, are included in SG&A in the consolidated statements of operations in fiscal 2018, fiscal 2017, and fiscal 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 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. The Company intends to adopt this standard in the first quarter of fiscal 2019 and expects to elect certain practical expedients permitted under the transition guidance, including the package of practical expedients; however, the Company does not intend to elect the hindsight practical expedient. Additionally, the Company will elect the optional transition method that allows for a cumulative-effect adjustment in the period of adoption and will not restate prior periods. In fiscal 2018, the Company implemented a new lease system to assist with its compliance with ASU 2016-02 in fiscal 2019, and has a project team focused on identifying a complete population of leases, evaluating accounting policy elections, and establishing new processes and internal controls. We estimate that the adoption of ASU 2016-02 will result in an increase in total assets and total liabilities in the range of approximately $345,000 to $375,000. However, this standard is not expected to have a material impact on the consolidated statement of operations or the consolidated statement of cash flows. 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 adopted ASU 2016-16 in the first quarter of fiscal 2018. The adoption of this standard 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 |
Goodwill and trade names
Goodwill and trade names | 12 Months Ended |
Mar. 30, 2019 | |
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 2018, fiscal 2017, and fiscal 2016 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 2018 and fiscal 2017: Goodwill Trade names Balance at April 1, 2017 Gross balance 410,467 258,219 Accumulated impairment charges (207,652) (31,534) Total, net $ 202,815 $ 226,685 Foreign currency translation adjustments — 2,716 Balance at March 31, 2018 Gross balance 410,467 260,935 Accumulated impairment charges (207,652) (31,534) Total, net $ 202,815 $ 229,401 Foreign currency translation adjustments — (4,251) Balance at March 30, 2019 Gross balance 410,467 256,684 Accumulated impairment charges (207,652) (31,534) Total, net $ 202,815 $ 225,150 |
Detail of certain balance sheet
Detail of certain balance sheet accounts | 12 Months Ended |
Mar. 30, 2019 | |
Detail of certain balance sheet accounts | |
Detail of certain balance sheet accounts | 3. Detail of certain balance sheet accounts March 30, March 31, 2019 2018 Accounts receivable, net: Trade receivables, net $ 16,730 $ 15,968 Credit card receivables 7,244 6,939 Tenant allowances 110 998 Other receivables 1,484 1,623 $ 25,568 $ 25,528 Inventory: Finished goods $ 103,774 $ 91,970 Raw materials 4,282 4,840 Work in progress 594 552 $ 108,650 $ 97,362 Property and equipment, net: Land and buildings $ 17,451 $ 22,981 Furniture and fixtures 71,738 69,777 Machinery and equipment 84,043 87,105 Computer software and equipment 99,034 90,512 Leasehold improvements 159,658 157,858 Construction in progress 21,523 12,114 Leased vehicles and other 492 658 453,939 441,005 Less accumulated depreciation and amortization (301,351) (282,616) $ 152,588 $ 158,389 Accrued liabilities: Accrued payroll, benefits and bonuses $ 19,771 $ 23,833 Unearned revenue 10,744 11,080 Accrued transaction and property tax 12,249 12,846 Gift cards and store credits outstanding 8,777 8,891 Accrued lease liabilities 4,882 5,105 Accrued interest 209 292 Other accrued liabilities 10,531 8,447 $ 67,163 $ 70,494 |
Long-term debt and revolving li
Long-term debt and revolving lines of credit | 12 Months Ended |
Mar. 30, 2019 | |
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 30, March 31, 2019 2018 Senior secured term loan facility $ 257,391 $ 294,375 2014 Elfa term loan facility — — 2014 Elfa revolving credit facility 5,511 — Obligations under capital leases 494 662 Other loans — 16 Revolving credit facility 12,000 — Total debt 275,396 295,053 Less current portion (12,527) (7,771) Less deferred financing costs (1) (7,909) (9,888) Total long-term debt $ 254,960 $ 277,394 (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 30, 2019, are as follows: Within 1 year $ 12,527 2 years 6,935 3 years 6,906 4 years 6,826 5 years 242,202 Thereafter — $ 275,396 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 September 14, 2018, we entered into a fifth amendment (the “Fifth Amendment”) to the Senior Secured Term Loan Facility. The Fifth 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 September 14, 2023, (ii) decrease the applicable interest rate margin to 5.00% for LIBOR loans and 4.00% for base rate loans, and beginning from the date a compliance certificate is delivered to the administrative agent for the fiscal year ending March 30, 2019, allow the applicable interest rate margin to step down to 4.75% for LIBOR loans and 3.75% for base rate loans upon achievement of a consolidated leverage ratio equal to or less than 2.75:1.00, and (iii) impose a 1.00% premium if a voluntary prepayment is made from the proceeds of a repricing transaction within 12 months after September 14, 2018. In connection with the Fifth Amendment, The Container Store, Inc. repaid $20,000 of the outstanding loans under the Senior Secured Term Loan Facility, which reduced the aggregate principal amount of the Senior Secured Term Loan Facility as of such date to $272,500. The Company drew down a net amount of approximately $10,000 on its Revolving Credit Facility in connection with the closing of the Fifth Amendment. In addition, the Company recorded a loss on extinguishment of debt of $2,082 in the second quarter of fiscal 2018 associated with the Fifth Amendment. Under the Senior Secured Term Loan Facility, we had $257,391 in outstanding borrowings as of March 30, 2019 and the interest rate on such borrowings is LIBOR +5.00%, 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 $1,703 through June 30, 2023, with a balloon payment for the remaining balance due on September 14, 2023. 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 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 and also require certain mandatory prepayments of the Senior Secured Term Loan Facility, among these an Excess Cash Flow (as such term is defined in the Senior Secured Term Loan Facility) requirement. As of March 30, 2019, 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. 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”). The maturity date of the loans under the Revolving Credit Facility is August 18, 2022. 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 Fifth Amendment, the Company borrowed a net amount of $10,000 on the Revolving Credit Facility. 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 30, 2019, we were in compliance with all 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., if after giving effect to such payments, on a pro forma basis, (i) availability under the Revolving Credit Facility exceeds $15,000 or (ii) availability under the Revolving Credit Facility exceeds $12,500 and the Consolidated Fixed Charge Coverage Ratio (as defined in the Revolving Credit Facility) is not less than 1.10 to 1.0, and pursuant to certain other limited exceptions. There was $66,159 available under the Revolving Credit Facility as of March 30, 2019, based on the factors described above. Maximum borrowings, including letters of credit issued under the Revolving Credit Facility during the period ended March 30, 2019, were $62,948. Elfa Senior Secured Credit Facilities 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 an SEK 60.0 million (approximately $6,455 as of March 30, 2019) term loan facility (the “2014 Elfa Term Loan Facility”) and an SEK 140.0 million (approximately $15,062 as of March 30, 2019) 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 $323 as of March 30, 2019). 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 30, 2019, the Company had $9,551 of additional availability under the 2014 Elfa Revolving Credit Facility. The 2014 Elfa Senior Secured Credit Facilities contain 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 30, 2019, Elfa was in compliance with all covenants and no Event of Default (as defined in the 2014 Elfa Senior Secured Credit Facilities) had occurred. 2019 Elfa Senior Secured Credit Facilities On March 18, 2019 Elfa refinanced the 2014 Elfa Facilities and entered into a master credit agreement with Nordea Bank Abp, filial i Sverige (“Nordea Bank”), which consists of (i) an SEK 110.0 million (approximately $11,834 as of March 30, 2019) revolving credit facility (the “2019 Original Revolving Facility”), (ii) upon Elfa’s request, an additional SEK 115.0 million (approximately $12,372 as of March 30, 2019) revolving credit facility (the “2019 Additional Revolving Facility” and together with the 2019 Original Revolving Facility, the “2019 Elfa Revolving Facilities”), and (iii) an uncommitted term loan facility in the amount of SEK 25.0 million (approximately $2,690 as of March 30, 2019), which is subject to receipt of Nordea Bank’s commitment and satisfaction of specified conditions (the “Incremental Term Facility”, together with the 2019 Elfa Revolving Facilities, the “2019 Elfa Senior Secured Credit Facilities”). The term for the 2019 Elfa Senior Secured Credit Facilities began on April 1, 2019 and matures on April 1, 2024. Loans borrowed under the 2019 Elfa Revolving Facilities bear interest at Nordea Bank’s base rate +1.40%. Any loan borrowed under the Incremental Term Facility would bear interest at Stibor +1.70%. The 2019 Elfa Senior Secured Credit Facilities are secured by the majority of assets of Elfa. The 2019 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 Group Equity Ratio (as defined in the 2019 Elfa Senior Secured Credit Facilities) of not less than 32.5% and (ii) a consolidated ratio of net debt to EBITDA (as defined in the 2019 Elfa Senior Secured Credit Facilities) of less than 3.20. 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 2018, the Company capitalized $2,384 of fees associated with the Fifth Amendment that will be amortized through September 14, 2023. In fiscal 2017, the Company capitalized $9,640 of fees associated with the Term Loan Amendment and $57 of fees associated with the Revolving Amendment that will be amortized through August 18, 2022. Amortization expense of deferred financing costs was $2,351, $2,664, and $1,921, in fiscal 2018, fiscal 2017, and fiscal 2016, respectively. The following is a schedule of amortization expense of deferred financing costs: Senior Secured Term Loan Revolving Facility Credit Facility Total Within 1 year $ 1,791 $ 71 $ 1,862 2 years 1,791 71 1,862 3 years 1,791 71 1,862 4 years 1,791 28 1,819 5 years 745 — 745 Thereafter — — — $ 7,909 $ 241 $ 8,150 |
Income taxes
Income taxes | 12 Months Ended |
Mar. 30, 2019 | |
Income taxes | |
Income taxes | 5. Income taxes Components of the provision (benefit) for income taxes are as follows: Fiscal Year Ended March 30, March 31, April 1, 2019 2018 2017 Income before income taxes: U.S. $ 14,397 $ 3,001 $ 19,307 Foreign 7,564 3,704 5,048 $ 21,961 $ 6,705 $ 24,355 Current Federal $ (780) $ 10,685 $ 6,039 State 1,464 792 1,374 Foreign 1,160 1,345 2,085 Total current provision 1,844 12,822 9,498 Deferred Federal (1,350) (25,418) 553 State (68) 158 22 Foreign (145) (285) (671) Total deferred benefit (1,563) (25,545) (96) Total provision (benefit) for income taxes $ 281 $ (12,723) $ 9,402 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 reduction of the U.S. statutory tax rate, the imposition of limitations on the deductibility of net interest expense and certain executive compensation arrangements and the creation of a new tax on global intangible low-taxed income (“GILTI”). SEC Staff Accounting Bulletin (“SAB”) 118 allowed 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 . The Company completed the accounting for the tax effects of the Tax Act in the third quarter of fiscal 2018, prior to the end of the measurement period on December 22, 2018. Deferred tax effects As of December 30, 2017, the Company remeasured deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future, which was generally 21%, by recording a provisional benefit of $24,210. Upon further analysis of certain aspects of the Tax Act and refinement of its calculations, the Company adjusted its provisional amount by $303 of tax expense, which is included as a component of income tax provision (benefit) in the consolidated statement of operations. The final net impact related to the remeasurement of deferred tax assets and liabilities pursuant to the Tax Act is a benefit of $23,907. One‑time transition tax on earnings of foreign subsidiaries In the fourth quarter of fiscal 2017, the Company recorded a provisional expense of $8,521 related to the one-time transition tax on foreign earnings. Upon further analysis of certain aspects of the Tax Act and refinement of its calculations, the Company recorded a benefit of $5,903 in the third quarter of fiscal 2018, which is included as a component of income tax benefit in the consolidated statement of operations, related to the one-time transition tax on foreign earnings. The final calculated one-time transition tax on foreign earnings is $2,618 which is net of foreign tax credit utilization of $833. Additionally, the Company has $1,331 of foreign tax credits carryforwards which it does not expect to be able to utilize in future years. As such, the Company has recorded a full valuation allowance related to these credits, the effect of which is included within the net transition tax liability. As of March 30, 2019, the Company has a remaining transition tax liability of $1,620, which will be paid in installments over the next six years as elected. Global intangible low-taxed income (“GILTI”) The Tax Act creates a new requirement that certain global intangible low-taxed income (“GILTI”) earned by controlled foreign corporations (“CFC”) must be included currently in the taxable income of the CFC’s U.S. shareholder. The Company became subject to the GILTI provisions beginning in fiscal 2018. The Company has elected an accounting policy to recognize GILTI as a period cost when incurred. Effective income tax rate reconciliation 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 March 30, March 31, April 1, 2019 2018 2017 Provision computed at federal statutory rate $ 4,612 $ 2,114 $ 8,525 Permanent differences 1,230 566 536 One-time transition tax, net (5,903) 8,521 — Change in valuation allowance (116) 211 178 State income taxes, net of federal benefit 817 455 855 Effect of foreign income taxes (511) (351) (619) Remeasurement of deferred tax balances 303 (24,210) — Other, net (151) (29) (73) $ 281 $ (12,723) $ 9,402 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 30, 2019 and March 31, 2018, are as follows: March 30, March 31, 2019 2018 Deferred tax assets: Inventory $ 1,165 $ 1,004 Loss and credit carryforwards 4,839 9,163 Stock compensation 5,346 4,995 Accrued liabilities 5,061 3,728 Capital assets 99 454 16,510 19,344 Valuation allowance (3,534) (7,724) Total deferred tax assets 12,976 11,620 Deferred tax liabilities: Intangibles (57,153) (58,568) Capital assets (2,904) (4,104) Other (2,709) (1,383) Total deferred tax liabilities (62,766) (64,055) Net deferred tax liabilities $ (49,790) $ (52,435) 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 $1,190 at March 30, 2019 and approximately $1,545 at March 31, 2018. The various credits available at March 30, 2019 expire in the 2026 tax year. The Company had deferred tax assets for foreign and state net operating loss carryovers of $2,317 at March 30, 2019, and approximately $2,434 at March 31, 2018. Valuation allowances of $2,181 and $2,201 were recorded against the net operating loss deferred tax assets at March 30, 2019 and March 31, 2018, 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 March 31, 2018 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. 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, the Company does not consider the earnings subject to the transition tax under the Tax Act permanently reinvested. All other earnings are considered permanently reinvested. |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Mar. 30, 2019 | |
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 nineteen thousand annually (twenty-five thousand for participants aged 50 years and over) as of January 1, 2019. 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. Effective September 9, 2018, the Company matched 50% of employee contributions up to 3% of compensation. The amount charged to expense for the Company’s matching contribution was $618, $0 and $58, for fiscal 2018, fiscal 2017, and fiscal 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 $5,810 and $5,848 as of March 30, 2019 and March 31, 2018, respectively. The total carrying value of the plan liability recorded in accrued liabilities was $5,816 and $5,854 as of March 30, 2019 and March 31, 2018, 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 30, March 31, 2019 2018 Change in benefit obligation: Projected benefit obligation, beginning of year $ 4,900 $ 4,138 Service cost 51 37 Interest cost 141 143 Benefits paid (85) (83) Actuarial loss 364 382 Exchange rate (gain) loss (509) 283 Projected benefit obligation, end of year 4,862 4,900 Fair value of plan assets, end of year — — Underfunded status, end of year $ (4,862) $ (4,900) Discount rate 2.6 % 3.1 % Rate of pay increases 3.0 % 3.0 % The following table provides the components of net periodic benefit cost for fiscal years 2018, 2017, and 2016: Fiscal Year Ended March 30, March 31, April 1, 2019 2018 2017 Components of net periodic benefit cost: Defined benefit plans: Service cost $ 51 $ 37 $ 67 Interest cost 141 143 117 Amortization of unrecognized net loss 68 63 37 Net periodic benefit cost for defined benefit plan 260 243 221 Defined contribution plans 2,078 2,237 1,904 Total net periodic benefit cost $ 2,338 $ 2,480 $ 2,125 |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Mar. 30, 2019 | |
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 30, 2019, there are 11,116,570 shares authorized and 7,394,904 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. Restricted Stock Awards The Company periodically grants time-based and performance-based restricted stock awards under the Company’s Amended and Restated Plan to certain Directors and employees. The following table summarizes the Company's restricted stock award grants during fiscal 2018 and 2017: Number of Performance- Number of Based Total Number of Performance- Performance- Awards Number of Time-Based Time-Based Based Based that Met Awards Grant Date Awards Vesting Awards Vesting Performance Grant Date Granted Fair Value Granted Period Granted Period Condition December 12, 2017 22,191 $ 5.52 4,528 3 years 17,663 (1) 3 years 9,011 June 1, 2018 551,453 $ 7.68 112,553 3 years 438,900 (2) 3 years 205,616 September 12, 2018 73,264 $ 10.92 73,264 3 years — — — (1) These performance-based restricted stock awards vest based on achievement of fiscal 2017 performance targets and are also subject to time-based vesting requirements. (2) These performance-based restricted stock awards vest based on achievement of fiscal 2018 performance targets and are also subject to time-based vesting requirements. Stock-based compensation cost related to restricted stock awards was $1,527 and $506 for fiscal 2018 and fiscal 2017, respectively. Unrecognized compensation expense related to outstanding restricted stock awards to employees as of March 30, 2019 is expected to be $2,061 (net of estimated forfeitures) to be recognized on a straight-line basis over a weighted average period of 1.5 years. The following table summarizes the Company’s restricted stock awards activity during fiscal 2017 and fiscal 2018: Restricted Stock Weighted Average Awards Grant Date Fair Value Nonvested at April 1, 2017 246,534 $ 5.37 Granted 22,191 5.52 Forfeited (25,490) 5.38 Nonvested at March 31, 2018 243,235 $ 5.39 Granted 624,717 8.06 Vested (70,132) 5.38 Forfeited (4,372) 5.29 Withheld related to net settlement (23,590) 5.38 Nonvested at March 30, 2019 769,858 $ 7.56 Stock Options In fiscal 2017 and 2016, the Company granted 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. There were no stock option grants in fiscal 2018. The following table summarizes the Company's annual stock option grants during fiscal 2017 and 2016: Number of Stock Grant Date Options Granted August 1, 2016 276,075 September 12, 2017 343,352 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 $1,319, $1,520, and $1,526 during fiscal 2018, fiscal 2017, and fiscal 2016, respectively. As of March 30, 2019, there was a remaining unrecognized compensation cost of $1,501 (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 0.9 years. The intrinsic value of shares exercised was $0, during each of fiscal 2018, fiscal 2017, and fiscal 2016, respectively. The fair value of shares vested was $1,507, $1,613, and $1,464, during fiscal 2018, fiscal 2017, and fiscal 2016, respectively. The following table summarizes the Company’s stock option activity during fiscal 2018, fiscal 2017, and fiscal 2016: Fiscal Year 2018 2017 2016 (1) Weighted- Weighted- Weighted- Weighted- average Weighted- average Weighted- average average contractual Aggregate average contractual Aggregate average contractual Aggregate exercise term intrinsic exercise term intrinsic exercise term intrinsic price remaining value price remaining value price remaining value Shares (per share) (years) (thousands) Shares (per share) (years) (thousands) Shares (per share) (years) (thousands) Beginning balance 3,040,206 $ 15.40 2,946,028 $ 16.81 2,890,476 $ 18.02 Granted — $ — 343,352 $ 4.10 276,075 $ 5.35 Exercised — $ — — $ — — $ — Forfeited (27,793) $ 18.00 (90,881) $ 15.13 (98,815) $ 18.63 Expired (116,874) $ 17.89 (158,293) $ 17.31 (121,708) $ 17.95 Ending balance 2,895,539 $ 15.27 5.27 $ 2,460,384 3,040,206 $ 15.40 6.23 $ 482 2,946,028 $ 16.81 6.83 $ — Vested and exercisable at end of year 2,428,274 $ 16.49 4.95 $ 1,102,326 2,241,283 $ 17.53 5.65 $ 7 2,156,537 $ 17.98 6.51 $ — (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 2017 and 2016 were granted at a weighted-average grant date fair value of $2.33, and $3.26, respectively. Such amounts were estimated using the Black Scholes option pricing model with the following weighted-average assumptions: Fiscal 2017 Fiscal 2016 Expected term 6.0 years 6.0 years Expected volatility 60.6 % 67.9 % Risk-free interest rate 1.9 % 1.2 % Dividend yield % % |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Mar. 30, 2019 | |
Shareholders' equity | |
Shareholders' equity | 8. Shareholders’ equity Common stock During fiscal 2017, the Company issued 27,073 shares of common stock in exchange for consultation services received from a third-party at a weighted-average price of $4.99 per share, respectively. As of March 30, 2019, the Company had 250,000,000 shares of common stock authorized, with a par value of $0.01, of which 48,142,319 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 30, 2019, 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. 30, 2019 | |
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 currency Pension Foreign hedge liability currency instruments adjustment translation Total Balance at April 2, 2016 $ (17) $ (1,058) $ (14,761) $ (15,836) Other comprehensive loss before reclassifications, net of tax (543) (413) (6,283) (7,239) Amounts reclassified to earnings, net of tax 405 27 — 432 Net current period other comprehensive loss (138) (386) (6,283) (6,807) Balance at April 1, 2017 $ (155) $ (1,444) $ (21,044) $ (22,643) Other comprehensive income (loss) before reclassifications, net of tax 1,203 (398) 5,623 6,428 Amounts reclassified to earnings, net of tax (1,150) 49 — (1,101) Net current period other comprehensive income (loss) 53 (349) 5,623 5,327 Balance at March 31, 2018 $ (102) $ (1,793) $ (15,421) $ (17,316) Other comprehensive loss before reclassifications, net of tax (2,197) (92) (7,911) (10,200) Amounts reclassified to earnings, net of tax 1,332 52 — 1,384 Net current period other comprehensive loss (865) (40) (7,911) (8,816) Balance at March 30, 2019 $ (967) $ (1,833) $ (23,332) $ (26,132) The unrecognized net actuarial loss included in accumulated other comprehensive income as of March 30, 2019 and March 31, 2018 was $1,833 and $1,793, 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. 30, 2019 | |
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 2018, fiscal 2017, and fiscal 2016, the TCS segment used forward contracts for 80%, 80%, and 78% of inventory purchases in Swedish krona each year, respectively. In fiscal 2018, fiscal 2017, and fiscal 2016, the Elfa segment used forward contracts to purchase U.S. dollars in the amount of $0, $1,648, and $3,905, which represented 0%, 21%, and 56% of the Elfa segment’s U.S. dollar purchases each year, respectively. 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 30, 2019, March 31, 2018, and April 1, 2017. Forward contracts not designated as hedges in the Elfa segment are adjusted to fair value as SG&A expenses on the consolidated statements of operations. During fiscal 2018, the Company did not recognize any amounts associated with the change in fair value of forward contracts not designated as hedge instruments. The Company had $967 in accumulated other comprehensive loss related to foreign currency hedge instruments at March 30, 2019. Settled foreign currency hedge instruments related to inventory on hand as of March 30, 2019 represents $280 of accumulated unrealized loss. The Company expects the unrealized loss of $280, 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. 30, 2019 | |
Leases | |
Leases | 11. Leases The Company conducts all of its U.S. operations from leased facilities that include corporate headquarters, warehouse facilities, and 92 store locations. The corporate headquarters, warehouse facilities, 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 leases Capital leases Within 1 year $ 89,869 $ 203 2 years 86,930 122 3 years 71,295 94 4 years 63,705 13 5 years 55,711 110 Thereafter 167,537 — Total minimum lease payments $ 535,047 $ 542 Less amount representing interest (48) Present value of minimum lease payments $ 494 Rent expense for fiscal years 2018, 2017, 2016, was $91,302, $86,070, and $80,647, respectively. Included in rent expense is percentage-of-sales rent expense of $1,684, $354, and $416, for fiscal years 2018, 2017, and 2016, respectively. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Mar. 30, 2019 | |
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 $4,428 as of March 30, 2019. 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. 30, 2019 | |
Fair value measurements | |
Fair value measurements | 13. Fair value measurements Under U.S. GAAP, 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 30, 2019 and March 31, 2018, the Company held certain items that are required to be measured at fair value on a recurring basis. These included the nonqualified retirement plan, which consists of investments purchased by employee contributions to retirement savings accounts. The fair value amount of the nonqualified retirement plan is measured using the net asset value per share practical expedient, and therefore, is not classified in the fair value hierarchy. 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 30, 2019 and March 31, 2018: March 30, March 31, Description Balance Sheet Location 2019 2018 Assets Nonqualified retirement plan Other current assets $ 5,810 $ 5,848 Total assets $ 5,810 $ 5,848 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 30, 2019 and March 31, 2018, the estimated fair value of the Company’s long-term debt, including current maturities, was $274,753 and $295,605, respectively. |
Segment reporting
Segment reporting | 12 Months Ended |
Mar. 30, 2019 | |
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 30, 2019 TCS Elfa Eliminations Total Net sales to third parties $ 829,622 $ 65,471 $ — $ 895,093 Intersegment sales — 57,849 (57,849) — Adjusted EBITDA 84,041 12,563 (257) 96,347 Depreciation and amortization 31,924 4,381 — 36,305 Interest expense, net 27,016 259 — 27,275 Capital expenditures (1) 31,176 2,494 — 33,670 Goodwill 202,815 — — 202,815 Trade names (1) 187,048 38,102 — 225,150 Assets (1) 649,351 103,347 (3,954) 748,744 Fiscal Year Ended March 31, 2018 TCS Elfa Eliminations Total Net sales to third parties $ 787,375 $ 69,853 $ — $ 857,228 Intersegment sales — 54,939 (54,939) — Adjusted EBITDA 77,274 13,233 (904) 89,603 Depreciation and amortization 32,504 5,418 — 37,922 Interest expense, net 24,740 273 — 25,013 Capital expenditures (1) 25,678 1,968 — 27,646 Goodwill 202,815 — — 202,815 Trade names (1) 187,048 42,353 — 229,401 Assets (1) 635,529 117,592 (3,752) 749,369 Fiscal Year Ended April 1, 2017 TCS Elfa Eliminations Total Net sales to third parties $ 752,675 $ 67,255 $ — $ 819,930 Intersegment sales — 47,898 (47,898) — Adjusted EBITDA (2) 75,268 11,186 105 86,559 Depreciation and amortization 31,572 5,552 — 37,124 Interest expense, net 16,403 284 — 16,687 Capital expenditures (1) 25,901 2,614 — 28,515 Goodwill 202,815 — — 202,815 Trade names (1) 187,048 39,637 — 226,685 Assets (1) 656,884 107,998 (3,048) 761,834 (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 $3,900 related to amended and restated employment agreements entered into with key executives during the first quarter of fiscal 2016, 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 March 30, March 31, April 1, 2019 2018 2017 Income before taxes $ 21,961 $ 6,705 $ 24,355 Add: Depreciation and amortization 36,305 37,922 37,124 Interest expense, net 27,275 25,013 16,687 Pre-opening costs (a) 2,103 5,293 6,852 Non-cash rent (b) (1,327) (1,915) (1,365) Stock-based compensation (c) 2,846 2,026 1,989 Loss on extinguishment of debt (d) 2,082 2,369 — Foreign exchange losses (gains) (e) 60 (596) (342) Optimization Plan implementation charges (f) 4,864 11,479 — Elfa manufacturing facility closure (g) — 803 — Other adjustments (h) 178 504 1,259 Adjusted EBITDA 96,347 89,603 86,559 (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 in August 2017 and September 2018 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 2018, 2017, and 2016: Fiscal Year Ended March 30, March 31, April 1, 2019 2018 2017 Custom Closets (1) 49 % 48 % 48 % Storage, Long-Term Storage, Shelving 14 % 14 % 14 % Kitchen and Trash 14 % 13 % 13 % Office, Collections, Hooks 8 % 8 % 8 % Bath, Travel, Laundry 8 % 8 % 8 % Gift Packaging, Seasonal, Impulse 6 % 7 % 8 % Other 1 % 2 % 1 % Total 100 % 100 % 100 % (1) Includes elfa ® and Laren™ products and installation services, as well as closet lifestyle department 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. 30, 2019 | |
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 March 30, March 31, April 1, 2019 2018 2017 Numerator: Net income $ 21,680 $ 19,428 $ 14,953 Denominator: Weighted-average common shares — basic 48,139,929 48,061,527 47,996,746 Options and other dilutive securities 260,478 86,198 19,264 Weighted-average common shares — diluted 48,400,407 48,147,725 48,016,010 Net income per common share — basic and diluted $ 0.45 $ 0.40 $ 0.31 Antidilutive securities not included: Stock options outstanding 2,436,321 3,006,604 2,954,114 Nonvested restricted stock awards 102,725 41,907 131,957 |
Schedule I-Condensed Financial
Schedule I-Condensed Financial Information of registrant | 12 Months Ended |
Mar. 30, 2019 | |
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 March 30, March 31, (in thousands) 2019 2018 Assets Current assets: Accounts receivable from subsidiaries $ 1,120 $ 1,120 Total current assets 1,120 1,120 Noncurrent assets: Investment in subsidiaries 263,573 247,587 Total noncurrent assets 263,573 247,587 Total assets $ 264,693 $ 248,707 Liabilities and shareholders' equity Current liabilities: Accounts payable to subsidiaries $ — $ — Total current liabilities — — Noncurrent liabilities — — Total liabilities — — Shareholders' equity: Common stock 481 481 Additional paid-in capital 863,979 861,263 Retained deficit (599,767) (613,037) Total shareholders' equity 264,693 248,707 Total liabilities and shareholders' equity $ 264,693 $ 248,707 See accompanying notes. Schedule I—The Container Store Group, Inc. (parent company only) Condensed statements of operations Fiscal Year Ended March 30, March 31, April 1, (in thousands) 2019 2018 2017 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 21,680 19,428 14,953 Net income $ 21,680 $ 19,428 $ 14,953 See accompanying notes. Schedule I—The Container Store Group, Inc. (parent company only) Condensed statements of comprehensive income Fiscal Year Ended March 30, March 31, April 1, (In thousands) 2019 2018 2017 Net income $ 21,680 $ 19,428 $ 14,953 Unrealized gain (loss) on financial instruments, net of tax (benefit) provision of $(304), $30, and $(85) (865) 53 (138) Pension liability adjustment, net of tax provision of $11, $98, and $142 (40) (349) (386) Foreign currency translation adjustment (7,911) 5,623 (6,283) Comprehensive income $ 12,864 $ 24,755 $ 8,146 See accompanying notes. 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 30, 2019 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 2018, fiscal 2017, or fiscal 2016. Note 2: Guarantees and restrictions The Container Store, Inc., a subsidiary of the Company, has $257,391 of long‑term debt outstanding under the Senior Secured Term Loan Facility, as of March 30, 2019. 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 September 14, 2018, the Company entered into a fifth amendment (the “Fifth Amendment”) to the Senior Secured Term Loan Facility dated as of April 6, 2012. The Fifth 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 September 14, 2023, (ii) decrease the applicable interest rate margin to 5.00% for LIBOR loans and 4.00% for base rate loans, and beginning from the date that a compliance certificate is delivered to the administrative agent for the fiscal year ending March 30, 2019, allow the applicable interest rate margin to step down to 4.75% for LIBOR loans and 3.75% for base rate loans upon achievement of a consolidated leverage ratio equal to or less than 2.75:1.00, and (iii) impose a 1.00% premium if a voluntary prepayment is made from the proceeds of a repricing transaction within 12 months after September 14, 2018. 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 $252,193 as of March 30, 2019. As of March 30, 2019, The Container Store, Inc. also has $66,159 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 August 18, 2022. |
Nature of business and summar_2
Nature of business and summary of significant accounting policies (Policies) | 12 Months Ended |
Mar. 30, 2019 | |
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 2016, the Company’s fiscal year ended on the Saturday closest to February 28 th . All references herein to “fiscal 2019” represent the results of the 52-week fiscal year ended March 28, 2020, "fiscal 2018" represent the results of the 52-week fiscal year ended March 30, 2019, references 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. |
Management estimates | Management estimates The preparation of the Company’s consolidated financial statements in accordance with U.S. GAAP 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, obsolescence and shrink 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. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014‑09, Revenue from Contracts with Customers , an updated standard on revenue recognition (codified as Accounting Standards Codification (“ASC”) Topic 606). The Company adopted this standard in the first quarter of fiscal 2018 and elected to use the modified-retrospective approach for implementation of the standard. 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 Company identified certain impacts to our accounting for gift cards given away for promotional or marketing purposes. Under previous GAAP, the value of promotional gift cards was recorded as selling, general, and administrative expense (“SG&A”). 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 disallows the capitalization of direct-response advertising costs which impacts the timing of recognition of certain advertising production and distribution costs. The Company adopted this standard in the first quarter of fiscal 2018 and the Company elected to use the modified‑retrospective approach for implementation of the standard. Upon transition on April 1, 2018, the Company recorded a cumulative adjustment to increase retained earnings/(deficit) and decrease accrued liabilities by approximately $400. The Company also reclassified 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. Overall, the adoption of ASU 2014-09 did not result in a material impact to the Company’s financial statements. Note 14 provides the related disaggregated revenue disclosures. Contract Balances Contract balances as a result of transactions with customers primarily consist of trade receivables included in Accounts receivable, net, unearned revenue included in Accrued liabilities, and gift cards and store credits outstanding included in Accrued liabilities in the Company's Consolidated Balance Sheets. Note 3 provides the Company's trade receivables, unearned revenue, and gift cards and store credits outstanding with customers as of March 30, 2019 and March 31, 2018. Below is a rollforward of contract liability balances from March 31, 2018 to March 30, 2019, which illustrates the amount of contract liability as of March 31, 2018 which was subsequently recognized into revenue in the fifty-two weeks ended March 30, 2019: Contract liability Revenue recognized Contract liabilities Contract liability balance at from beginning added during balance at March 31, 2018 (1) liability period (2) March 30, 2019 Unearned revenue $ 11,080 $ (10,880) $ 10,544 $ 10,744 Gift cards and store credits outstanding $ 8,470 $ (3,184) $ 3,491 $ 8,777 (1) Gift cards and store credits outstanding balance is net of revenue recognition transition adjustment (2) Net of estimated breakage |
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 2018) and the breakage amounts are included in net sales in the consolidated statement of operations. The Company recorded $942, $1,656, and $1,072 of gift card breakage in fiscal years 2018, 2017, and 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 SG&A. 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 upon initial mailing to the customer. Advertising costs are recorded in SG&A. Pre‑opening advertising costs are recorded in pre‑opening costs. Catalog and direct mailings costs capitalized at March 30, 2019 and March 31, 2018, amounted to $669 and $375, respectively, and are recorded in prepaid expenses on the accompanying consolidated balance sheets. Total advertising expense incurred for fiscal years 2018, 2017, and 2016, was $34,791, $32,860, and $31,525, 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 FASB 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 30, 2019 and March 31, 2018. 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, the Company does not consider the earnings subject to the transition tax under the Tax Act permanently reinvested. All other earnings are considered permanently reinvested. |
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. 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. 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. |
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 $57 and $170 at March 30, 2019 and March 31, 2018, 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 in-bound 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 years Furniture, fixtures, and equipment to years Computer software to 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 30, 2019, March 31, 2018, and April 1, 2017, the Company capitalized $4,565, $4,397, and $4,392, respectively, and amortized $4,374, $4,346, and $3,498, respectively, 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 SG&A. 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. 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 $2,835 and $2,810 as of March 30, 2019 and March 31, 2018, 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 2018, the rate of exchange from U.S. dollar to Swedish krona increased from 8.4 to 9.3. The carrying amount of assets related to Elfa and subject to currency fluctuation was $108,674 and $119,995 as of March 30, 2019 and March 31, 2018, respectively. Foreign currency realized losses of $60, realized gains of $596, and realized gains of $342, are included in SG&A in the consolidated statements of operations in fiscal 2018, fiscal 2017, and fiscal 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 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. The Company intends to adopt this standard in the first quarter of fiscal 2019 and expects to elect certain practical expedients permitted under the transition guidance, including the package of practical expedients; however, the Company does not intend to elect the hindsight practical expedient. Additionally, the Company will elect the optional transition method that allows for a cumulative-effect adjustment in the period of adoption and will not restate prior periods. In fiscal 2018, the Company implemented a new lease system to assist with its compliance with ASU 2016-02 in fiscal 2019, and has a project team focused on identifying a complete population of leases, evaluating accounting policy elections, and establishing new processes and internal controls. We estimate that the adoption of ASU 2016-02 will result in an increase in total assets and total liabilities in the range of approximately $345,000 to $375,000. However, this standard is not expected to have a material impact on the consolidated statement of operations or the consolidated statement of cash flows. 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 adopted ASU 2016-16 in the first quarter of fiscal 2018. The adoption of this standard 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. The Company adopted ASU 2017-07 in the first quarter of fiscal 2018 on a retrospective basis. The adoption of this standard did not result in a material impact to the Company’s 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. The Company adopted ASU 2017-09 in the first quarter of fiscal 2018 on a prospective basis. The adoption of this standard did not result in a material impact to the Company’s 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 intends to adopt ASU 2017-12 in the first quarter of fiscal 2019. The adoption of this standard is not expected to result in a material impact to the Company’s financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under this ASU, the guidance on share-based payments to nonemployees would be aligned with the requirements for share-based payments granted to employees, with certain exceptions. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The adoption of this standard is not expected to result in a material impact to the financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets. A customer’s accounting for the costs of the hosting component of the arrangement are not affected by the new guidance. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The adoption of this standard is not expected to result in a material impact to the Company’s financial statements |
Nature of business and summar_3
Nature of business and summary of significant accounting policies (Tables) | 12 Months Ended |
Mar. 30, 2019 | |
Nature of business and summary of significant accounting policies | |
Rollforward of contract liabilities | Below is a rollforward of contract liability balances from March 31, 2018 to March 30, 2019, which illustrates the amount of contract liability as of March 31, 2018 which was subsequently recognized into revenue in the fifty-two weeks ended March 30, 2019: Contract liability Revenue recognized Contract liabilities Contract liability balance at from beginning added during balance at March 31, 2018 (1) liability period (2) March 30, 2019 Unearned revenue $ 11,080 $ (10,880) $ 10,544 $ 10,744 Gift cards and store credits outstanding $ 8,470 $ (3,184) $ 3,491 $ 8,777 (1) Gift cards and store credits outstanding balance is net of revenue recognition transition adjustment (2) Net of estimated breakage |
Schedule of estimated useful lives of depreciable assets | 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 years Furniture, fixtures, and equipment to years Computer software to 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. 30, 2019 | |
Goodwill and trade names | |
Schedule of changes in the carrying amount of goodwill and trade names | Goodwill Trade names Balance at April 1, 2017 Gross balance 410,467 258,219 Accumulated impairment charges (207,652) (31,534) Total, net $ 202,815 $ 226,685 Foreign currency translation adjustments — 2,716 Balance at March 31, 2018 Gross balance 410,467 260,935 Accumulated impairment charges (207,652) (31,534) Total, net $ 202,815 $ 229,401 Foreign currency translation adjustments — (4,251) Balance at March 30, 2019 Gross balance 410,467 256,684 Accumulated impairment charges (207,652) (31,534) Total, net $ 202,815 $ 225,150 |
Detail of certain balance she_2
Detail of certain balance sheet accounts (Tables) | 12 Months Ended |
Mar. 30, 2019 | |
Detail of certain balance sheet accounts | |
Schedule of detail of certain balance sheet accounts | March 30, March 31, 2019 2018 Accounts receivable, net: Trade receivables, net $ 16,730 $ 15,968 Credit card receivables 7,244 6,939 Tenant allowances 110 998 Other receivables 1,484 1,623 $ 25,568 $ 25,528 Inventory: Finished goods $ 103,774 $ 91,970 Raw materials 4,282 4,840 Work in progress 594 552 $ 108,650 $ 97,362 Property and equipment, net: Land and buildings $ 17,451 $ 22,981 Furniture and fixtures 71,738 69,777 Machinery and equipment 84,043 87,105 Computer software and equipment 99,034 90,512 Leasehold improvements 159,658 157,858 Construction in progress 21,523 12,114 Leased vehicles and other 492 658 453,939 441,005 Less accumulated depreciation and amortization (301,351) (282,616) $ 152,588 $ 158,389 Accrued liabilities: Accrued payroll, benefits and bonuses $ 19,771 $ 23,833 Unearned revenue 10,744 11,080 Accrued transaction and property tax 12,249 12,846 Gift cards and store credits outstanding 8,777 8,891 Accrued lease liabilities 4,882 5,105 Accrued interest 209 292 Other accrued liabilities 10,531 8,447 $ 67,163 $ 70,494 |
Long-term debt and revolving _2
Long-term debt and revolving lines of credit (Tables) | 12 Months Ended |
Mar. 30, 2019 | |
Long-term debt and revolving lines of credit | |
Schedule of long-term debt and revolving lines of credit | March 30, March 31, 2019 2018 Senior secured term loan facility $ 257,391 $ 294,375 2014 Elfa term loan facility — — 2014 Elfa revolving credit facility 5,511 — Obligations under capital leases 494 662 Other loans — 16 Revolving credit facility 12,000 — Total debt 275,396 295,053 Less current portion (12,527) (7,771) Less deferred financing costs (1) (7,909) (9,888) Total long-term debt $ 254,960 $ 277,394 (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 | Within 1 year $ 12,527 2 years 6,935 3 years 6,906 4 years 6,826 5 years 242,202 Thereafter — $ 275,396 |
Schedule of amortization expense of deferred financing costs | Senior Secured Term Loan Revolving Facility Credit Facility Total Within 1 year $ 1,791 $ 71 $ 1,862 2 years 1,791 71 1,862 3 years 1,791 71 1,862 4 years 1,791 28 1,819 5 years 745 — 745 Thereafter — — — $ 7,909 $ 241 $ 8,150 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Mar. 30, 2019 | |
Income taxes | |
Schedule of components of the provision (benefit) for income taxes | Fiscal Year Ended March 30, March 31, April 1, 2019 2018 2017 Income before income taxes: U.S. $ 14,397 $ 3,001 $ 19,307 Foreign 7,564 3,704 5,048 $ 21,961 $ 6,705 $ 24,355 Current Federal $ (780) $ 10,685 $ 6,039 State 1,464 792 1,374 Foreign 1,160 1,345 2,085 Total current provision 1,844 12,822 9,498 Deferred Federal (1,350) (25,418) 553 State (68) 158 22 Foreign (145) (285) (671) Total deferred benefit (1,563) (25,545) (96) Total provision (benefit) for income taxes $ 281 $ (12,723) $ 9,402 |
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 March 30, March 31, April 1, 2019 2018 2017 Provision computed at federal statutory rate $ 4,612 $ 2,114 $ 8,525 Permanent differences 1,230 566 536 One-time transition tax, net (5,903) 8,521 — Change in valuation allowance (116) 211 178 State income taxes, net of federal benefit 817 455 855 Effect of foreign income taxes (511) (351) (619) Remeasurement of deferred tax balances 303 (24,210) — Other, net (151) (29) (73) $ 281 $ (12,723) $ 9,402 |
Schedule of components of deferred tax assets and liabilities | March 30, March 31, 2019 2018 Deferred tax assets: Inventory $ 1,165 $ 1,004 Loss and credit carryforwards 4,839 9,163 Stock compensation 5,346 4,995 Accrued liabilities 5,061 3,728 Capital assets 99 454 16,510 19,344 Valuation allowance (3,534) (7,724) Total deferred tax assets 12,976 11,620 Deferred tax liabilities: Intangibles (57,153) (58,568) Capital assets (2,904) (4,104) Other (2,709) (1,383) Total deferred tax liabilities (62,766) (64,055) Net deferred tax liabilities $ (49,790) $ (52,435) |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 12 Months Ended |
Mar. 30, 2019 | |
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 30, March 31, 2019 2018 Change in benefit obligation: Projected benefit obligation, beginning of year $ 4,900 $ 4,138 Service cost 51 37 Interest cost 141 143 Benefits paid (85) (83) Actuarial loss 364 382 Exchange rate (gain) loss (509) 283 Projected benefit obligation, end of year 4,862 4,900 Fair value of plan assets, end of year — — Underfunded status, end of year $ (4,862) $ (4,900) Discount rate 2.6 % 3.1 % Rate of pay increases 3.0 % 3.0 % |
Schedule of components of net periodic benefit cost | Fiscal Year Ended March 30, March 31, April 1, 2019 2018 2017 Components of net periodic benefit cost: Defined benefit plans: Service cost $ 51 $ 37 $ 67 Interest cost 141 143 117 Amortization of unrecognized net loss 68 63 37 Net periodic benefit cost for defined benefit plan 260 243 221 Defined contribution plans 2,078 2,237 1,904 Total net periodic benefit cost $ 2,338 $ 2,480 $ 2,125 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Mar. 30, 2019 | |
Stock-based compensation | |
Summary of Company's restricted stock award grants | The following table summarizes the Company's restricted stock award grants during fiscal 2018 and 2017: Number of Performance- Number of Based Total Number of Performance- Performance- Awards Number of Time-Based Time-Based Based Based that Met Awards Grant Date Awards Vesting Awards Vesting Performance Grant Date Granted Fair Value Granted Period Granted Period Condition December 12, 2017 22,191 $ 5.52 4,528 3 years 17,663 (1) 3 years 9,011 June 1, 2018 551,453 $ 7.68 112,553 3 years 438,900 (2) 3 years 205,616 September 12, 2018 73,264 $ 10.92 73,264 3 years — — — (1) These performance-based restricted stock awards vest based on achievement of fiscal 2017 performance targets and are also subject to time-based vesting requirements. (2) These performance-based restricted stock awards vest based on achievement of fiscal 2018 performance targets and are also subject to time-based vesting requirements. |
Summary of Company’s restricted stock awards activity | Restricted Stock Weighted Average Awards Grant Date Fair Value Nonvested at April 1, 2017 246,534 $ 5.37 Granted 22,191 5.52 Forfeited (25,490) 5.38 Nonvested at March 31, 2018 243,235 $ 5.39 Granted 624,717 8.06 Vested (70,132) 5.38 Forfeited (4,372) 5.29 Withheld related to net settlement (23,590) 5.38 Nonvested at March 30, 2019 769,858 $ 7.56 |
Summary of the Company's annual stock option grants | The following table summarizes the Company's annual stock option grants during fiscal 2017 and 2016: Number of Stock Grant Date Options Granted August 1, 2016 276,075 September 12, 2017 343,352 |
Summary of the Company's stock option activity | Fiscal Year 2018 2017 2016 (1) Weighted- Weighted- Weighted- Weighted- average Weighted- average Weighted- average average contractual Aggregate average contractual Aggregate average contractual Aggregate exercise term intrinsic exercise term intrinsic exercise term intrinsic price remaining value price remaining value price remaining value Shares (per share) (years) (thousands) Shares (per share) (years) (thousands) Shares (per share) (years) (thousands) Beginning balance 3,040,206 $ 15.40 2,946,028 $ 16.81 2,890,476 $ 18.02 Granted — $ — 343,352 $ 4.10 276,075 $ 5.35 Exercised — $ — — $ — — $ — Forfeited (27,793) $ 18.00 (90,881) $ 15.13 (98,815) $ 18.63 Expired (116,874) $ 17.89 (158,293) $ 17.31 (121,708) $ 17.95 Ending balance 2,895,539 $ 15.27 5.27 $ 2,460,384 3,040,206 $ 15.40 6.23 $ 482 2,946,028 $ 16.81 6.83 $ — Vested and exercisable at end of year 2,428,274 $ 16.49 4.95 $ 1,102,326 2,241,283 $ 17.53 5.65 $ 7 2,156,537 $ 17.98 6.51 $ — (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 2017 Fiscal 2016 Expected term 6.0 years 6.0 years Expected volatility 60.6 % 67.9 % Risk-free interest rate 1.9 % 1.2 % Dividend yield % % |
Accumulated other comprehensi_2
Accumulated other comprehensive income (Tables) | 12 Months Ended |
Mar. 30, 2019 | |
Accumulated other comprehensive income | |
Schedule of components of AOCI, net of tax | Foreign currency Pension Foreign hedge liability currency instruments adjustment translation Total Balance at April 2, 2016 $ (17) $ (1,058) $ (14,761) $ (15,836) Other comprehensive loss before reclassifications, net of tax (543) (413) (6,283) (7,239) Amounts reclassified to earnings, net of tax 405 27 — 432 Net current period other comprehensive loss (138) (386) (6,283) (6,807) Balance at April 1, 2017 $ (155) $ (1,444) $ (21,044) $ (22,643) Other comprehensive income (loss) before reclassifications, net of tax 1,203 (398) 5,623 6,428 Amounts reclassified to earnings, net of tax (1,150) 49 — (1,101) Net current period other comprehensive income (loss) 53 (349) 5,623 5,327 Balance at March 31, 2018 $ (102) $ (1,793) $ (15,421) $ (17,316) Other comprehensive loss before reclassifications, net of tax (2,197) (92) (7,911) (10,200) Amounts reclassified to earnings, net of tax 1,332 52 — 1,384 Net current period other comprehensive loss (865) (40) (7,911) (8,816) Balance at March 30, 2019 $ (967) $ (1,833) $ (23,332) $ (26,132) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 30, 2019 | |
Leases | |
Schedule of future minimum lease payments for noncancelable operating and capital leases | Operating leases Capital leases Within 1 year $ 89,869 $ 203 2 years 86,930 122 3 years 71,295 94 4 years 63,705 13 5 years 55,711 110 Thereafter 167,537 — Total minimum lease payments $ 535,047 $ 542 Less amount representing interest (48) Present value of minimum lease payments $ 494 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Mar. 30, 2019 | |
Fair value measurements | |
Schedule of items measured at fair value on a recurring basis, subject to the disclosure requirements of ASC 820 | March 30, March 31, Description Balance Sheet Location 2019 2018 Assets Nonqualified retirement plan Other current assets $ 5,810 $ 5,848 Total assets $ 5,810 $ 5,848 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Mar. 30, 2019 | |
Segment reporting | |
Schedule of segment reporting | Fiscal Year Ended March 30, 2019 TCS Elfa Eliminations Total Net sales to third parties $ 829,622 $ 65,471 $ — $ 895,093 Intersegment sales — 57,849 (57,849) — Adjusted EBITDA 84,041 12,563 (257) 96,347 Depreciation and amortization 31,924 4,381 — 36,305 Interest expense, net 27,016 259 — 27,275 Capital expenditures (1) 31,176 2,494 — 33,670 Goodwill 202,815 — — 202,815 Trade names (1) 187,048 38,102 — 225,150 Assets (1) 649,351 103,347 (3,954) 748,744 Fiscal Year Ended March 31, 2018 TCS Elfa Eliminations Total Net sales to third parties $ 787,375 $ 69,853 $ — $ 857,228 Intersegment sales — 54,939 (54,939) — Adjusted EBITDA 77,274 13,233 (904) 89,603 Depreciation and amortization 32,504 5,418 — 37,922 Interest expense, net 24,740 273 — 25,013 Capital expenditures (1) 25,678 1,968 — 27,646 Goodwill 202,815 — — 202,815 Trade names (1) 187,048 42,353 — 229,401 Assets (1) 635,529 117,592 (3,752) 749,369 Fiscal Year Ended April 1, 2017 TCS Elfa Eliminations Total Net sales to third parties $ 752,675 $ 67,255 $ — $ 819,930 Intersegment sales — 47,898 (47,898) — Adjusted EBITDA (2) 75,268 11,186 105 86,559 Depreciation and amortization 31,572 5,552 — 37,124 Interest expense, net 16,403 284 — 16,687 Capital expenditures (1) 25,901 2,614 — 28,515 Goodwill 202,815 — — 202,815 Trade names (1) 187,048 39,637 — 226,685 Assets (1) 656,884 107,998 (3,048) 761,834 (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 $3,900 related to amended and restated employment agreements entered into with key executives during the first quarter of fiscal 2016, 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 | A reconciliation of Adjusted EBITDA by segment to income before taxes is set forth below: Fiscal Year Ended March 30, March 31, April 1, 2019 2018 2017 Income before taxes $ 21,961 $ 6,705 $ 24,355 Add: Depreciation and amortization 36,305 37,922 37,124 Interest expense, net 27,275 25,013 16,687 Pre-opening costs (a) 2,103 5,293 6,852 Non-cash rent (b) (1,327) (1,915) (1,365) Stock-based compensation (c) 2,846 2,026 1,989 Loss on extinguishment of debt (d) 2,082 2,369 — Foreign exchange losses (gains) (e) 60 (596) (342) Optimization Plan implementation charges (f) 4,864 11,479 — Elfa manufacturing facility closure (g) — 803 — Other adjustments (h) 178 504 1,259 Adjusted EBITDA 96,347 89,603 86,559 (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 in August 2017 and September 2018 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 | The following table shows sales by merchandise category as a percentage of total net sales for fiscal years 2018, 2017, and 2016: Fiscal Year Ended March 30, March 31, April 1, 2019 2018 2017 Custom Closets (1) 49 % 48 % 48 % Storage, Long-Term Storage, Shelving 14 % 14 % 14 % Kitchen and Trash 14 % 13 % 13 % Office, Collections, Hooks 8 % 8 % 8 % Bath, Travel, Laundry 8 % 8 % 8 % Gift Packaging, Seasonal, Impulse 6 % 7 % 8 % Other 1 % 2 % 1 % Total 100 % 100 % 100 % Includes elfa ® and Laren™ products and installation services, as well as closet lifestyle department 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. 30, 2019 | |
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 March 30, March 31, April 1, 2019 2018 2017 Numerator: Net income $ 21,680 $ 19,428 $ 14,953 Denominator: Weighted-average common shares — basic 48,139,929 48,061,527 47,996,746 Options and other dilutive securities 260,478 86,198 19,264 Weighted-average common shares — diluted 48,400,407 48,147,725 48,016,010 Net income per common share — basic and diluted $ 0.45 $ 0.40 $ 0.31 Antidilutive securities not included: Stock options outstanding 2,436,321 3,006,604 2,954,114 Nonvested restricted stock awards 102,725 41,907 131,957 |
Nature of business and summar_4
Nature of business and summary of significant accounting policies (Details) | Mar. 30, 2019ft²storestate |
Nature of business and summary of significant accounting policies | |
Number of stores | store | 92 |
Average size of stores (in square feet) | 25,000 |
Average selling square feet in stores (in square feet) | 19,000 |
Number of states | state | 33 |
Nature of business and summar_5
Nature of business and summary of significant accounting policies - Fiscal year (Details) - item | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
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 summar_6
Nature of business and summary of significant accounting policies - Revenue recognition (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Apr. 01, 2018 | Mar. 31, 2018 |
Recent accounting pronouncements | |||
Retained Earnings (Accumulated Deficit) | $ (573,634) | $ (595,721) | |
Accrued Liabilities, Current | 67,163 | 70,494 | |
Inventory, Net | 108,650 | 97,362 | |
Other Assets, Current | $ 11,705 | $ 11,609 | |
ASU 2014-09 | |||
Recent accounting pronouncements | |||
Retained Earnings (Accumulated Deficit) | $ 400 | ||
Accrued Liabilities, Current | (400) | ||
Inventory, Net | (900) | ||
Other Assets, Current | $ 900 |
Nature of business and summar_7
Nature of business and summary of significant accounting policies - Contract Balances (Details) $ in Thousands | 12 Months Ended |
Mar. 30, 2019USD ($) | |
Rollforward of contract liability balances | |
Contract liability beginning balance | $ 11,080 |
Contract liability balance ending balance | 10,744 |
Unearned revenue | |
Rollforward of contract liability balances | |
Contract liability beginning balance | 11,080 |
Revenue recognized from beginning liability | (10,880) |
Contract liabilities added during period | 10,544 |
Contract liability balance ending balance | 10,744 |
Gift card and store credits outstanding | |
Rollforward of contract liability balances | |
Contract liability beginning balance | 8,470 |
Revenue recognized from beginning liability | (3,184) |
Contract liabilities added during period | 3,491 |
Contract liability balance ending balance | $ 8,777 |
Nature of business and summar_8
Nature of business and summary of significant accounting policies - Gift cards and merchandise credits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Gift cards and merchandise credits | |||
Period of estimated performance | 48 months | ||
Gift card breakage recorded | $ 942 | $ 1,656 | $ 1,072 |
Advertising | |||
Catalog and direct mailings costs capitalized | 669 | 375 | |
Advertising expense incurred | 34,791 | 32,860 | $ 31,525 |
Income taxes | |||
Uncertain tax positions requiring accrual | 0 | 0 | |
Accounts receivable | |||
Allowances for doubtful accounts | $ 57 | $ 170 |
Nature of business and summar_9
Nature of business and summary of significant accounting policies - Property, plant, and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Property and equipment ,net: | |||
Cost capitalized in connection with the development of internally used software | $ 4,565 | $ 4,397 | $ 4,392 |
Cost amortized in connection with the development of internally used software | $ 4,374 | $ 4,346 | $ 3,498 |
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 summa_10
Nature of business and summary of significant accounting policies - Foreign currency forward contracts (Details) $ in Thousands | 12 Months Ended | |
Mar. 30, 2019USD ($)item | Mar. 31, 2018USD ($) | |
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 | $ | $ 2,835 | $ 2,810 |
Goodwill | ||
Number of reporting units | item | 2 |
Nature of business and summa_11
Nature of business and summary of significant accounting policies - Foreign currency translation and Recent accounting pronouncements (Details) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Apr. 01, 2017USD ($) | |
Recent accounting pronouncements | |||
Retained earnings/(deficit) | $ (573,634) | $ (595,721) | |
Accrued liabilities | 67,163 | 70,494 | |
Inventory | 108,650 | 97,362 | |
Other current assets | $ 11,705 | 11,609 | |
Practical expedients, package | true | ||
Hindsight practical expedient | false | ||
Selling, general & administrative | |||
Foreign currency translation | |||
Realized gains/losses | $ (60) | $ 596 | $ 342 |
Elfa | |||
Foreign currency translation | |||
Exchange rate from Swedish Krona to U.S. Dollar | 9.3 | 8.4 | |
Carrying amounts of net assets | $ 108,674 | $ 119,995 | |
Minimum | ASU 2016-02 | Forecast | |||
Recent accounting pronouncements | |||
Operating Lease, Liability | 345,000 | ||
Operating Lease, Right-of-Use Asset | 345,000 | ||
Maximum | ASU 2016-02 | Forecast | |||
Recent accounting pronouncements | |||
Operating Lease, Liability | 375,000 | ||
Operating Lease, Right-of-Use Asset | $ 375,000 |
Goodwill and trade names (Detai
Goodwill and trade names (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Goodwill and trade names | |||
Impairment charges for goodwill | $ 0 | $ 0 | $ 0 |
Changes in the carrying amount of goodwill | |||
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 |
Accumulated impairment charges at the end of the period | (207,652) | (207,652) | (207,652) |
Total, net balance at the end of the period | 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 | 260,935 | 258,219 | |
Accumulated impairment charges at the beginning of the period | (31,534) | (31,534) | |
Total, net balance at the beginning of the period | 229,401 | 226,685 | |
Foreign currency translation adjustments | (4,251) | 2,716 | |
Gross balance at the end of the period | 256,684 | 260,935 | 258,219 |
Accumulated impairment charges at the end of the period | (31,534) | (31,534) | (31,534) |
Total, net balance at the end of the period | $ 225,150 | $ 229,401 | $ 226,685 |
Detail of certain balance she_3
Detail of certain balance sheet accounts (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Mar. 31, 2018 |
Accounts receivable, net: | ||
Trade receivables, net | $ 16,730 | $ 15,968 |
Credit card receivables | 7,244 | 6,939 |
Tenant allowances | 110 | 998 |
Other receivables | 1,484 | 1,623 |
Accounts receivable, net | 25,568 | 25,528 |
Inventory: | ||
Finished goods | 103,774 | 91,970 |
Raw materials | 4,282 | 4,840 |
Work in progress | 594 | 552 |
Inventory | 108,650 | 97,362 |
Property and equipment, net: | ||
Property and equipment, gross | 453,939 | 441,005 |
Less accumulated depreciation and amortization | (301,351) | (282,616) |
Property, Plant and Equipment, Net | 152,588 | 158,389 |
Accrued Liabilities: | ||
Accrued payroll, benefits and bonuses | 19,771 | 23,833 |
Unearned revenue | 10,744 | 11,080 |
Accrued transaction and property tax | 12,249 | 12,846 |
Gift cards and store credits outstanding | 8,777 | 8,891 |
Accrued lease liabilities | 4,882 | 5,105 |
Accrued interest | 209 | 292 |
Other accrued liabilities | 10,531 | 8,447 |
Accrued liabilities | 67,163 | 70,494 |
Land and buildings | ||
Property and equipment, net: | ||
Property and equipment, gross | 17,451 | 22,981 |
Furniture and fixtures | ||
Property and equipment, net: | ||
Property and equipment, gross | 71,738 | 69,777 |
Machinery and equipment | ||
Property and equipment, net: | ||
Property and equipment, gross | 84,043 | 87,105 |
Computer software and equipment | ||
Property and equipment, net: | ||
Property and equipment, gross | 99,034 | 90,512 |
Leasehold improvements | ||
Property and equipment, net: | ||
Property and equipment, gross | 159,658 | 157,858 |
Construction in progress | ||
Property and equipment, net: | ||
Property and equipment, gross | 21,523 | 12,114 |
Leased vehicles and other | ||
Property and equipment, net: | ||
Property and equipment, gross | $ 492 | $ 658 |
Long-term debt and revolving _3
Long-term debt and revolving lines of credit - Schedule of long-term debt and revolving lines of credit (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Mar. 31, 2018 |
Long-term debt and revolving lines of credit | ||
Total debt | $ 275,396 | $ 295,053 |
Less current portion | (12,527) | (7,771) |
Less deferred financing costs | (7,909) | (9,888) |
Total long-term debt | 254,960 | 277,394 |
Senior secured term loan facility | ||
Long-term debt and revolving lines of credit | ||
Total debt | 257,391 | 294,375 |
Obligations under capital leases | ||
Long-term debt and revolving lines of credit | ||
Total debt | 494 | 662 |
Other loans | ||
Long-term debt and revolving lines of credit | ||
Total debt | $ 16 | |
2014 Elfa revolving credit facility | ||
Long-term debt and revolving lines of credit | ||
Total debt | 5,511 | |
Revolving credit facility | ||
Long-term debt and revolving lines of credit | ||
Total debt | $ 12,000 |
Long-term debt and revolving _4
Long-term debt and revolving lines of credit - Scheduled total revolving lines of credit and debt maturities (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Mar. 31, 2018 |
Scheduled total revolving lines of credit and debt maturities | ||
Within 1 year | $ 12,527 | |
2 years | 6,935 | |
3 years | 6,906 | |
4 years | 6,826 | |
5 years | 242,202 | |
Total debt | $ 275,396 | $ 295,053 |
Long-term debt and revolving _5
Long-term debt and revolving lines of credit - Term Loan Amendment and Revolving Amendment (Details) $ in Thousands | Sep. 14, 2018USD ($) | Apr. 06, 2012 | Mar. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Apr. 01, 2017USD ($) |
Long-term debt and revolving lines of credit | |||||
Debt Instrument leverage ratio covenant | 2.750 | ||||
Fee premium imposed on voluntary prepayments (as a percent) | 1.00% | ||||
Net amount of borrowings on revolving credit facility | $ 331,500 | $ 335,000 | $ 30,000 | ||
Loss on extinguishment of debt | (2,082) | (2,369) | |||
Revolving credit facility | |||||
Long-term debt and revolving lines of credit | |||||
Net amount of borrowings on revolving credit facility | $ 10,000 | $ 10,000 | |||
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 | |||||
Principal repayments | 20,000 | $ 1,703 | $ 1,703 | ||
Aggregate principle amount | 272,500 | ||||
Loss on extinguishment of debt | $ (2,082) | ||||
Senior secured term loan facility | LIBOR | |||||
Long-term debt and revolving lines of credit | |||||
Interest rate margin (as a percent) | 5.00% | 5.00% | 4.75% | ||
Senior secured term loan facility | Base rate | |||||
Long-term debt and revolving lines of credit | |||||
Interest rate margin (as a percent) | 4.00% | 3.75% |
Long-term debt and revolving _6
Long-term debt and revolving lines of credit - Senior secured term loan facility (Details) - Senior secured term loan facility - USD ($) $ in Thousands | Sep. 14, 2018 | Apr. 06, 2012 | Mar. 30, 2019 | Mar. 31, 2018 |
Long-term debt and revolving lines of credit | ||||
Outstanding borrowings | $ 257,391 | |||
Principal repayments | $ 20,000 | $ 1,703 | $ 1,703 | |
Maximum | ||||
Long-term debt and revolving lines of credit | ||||
First priority security interest in stock in foreign subsidiaries (as a percent) | 65.00% | |||
LIBOR | ||||
Long-term debt and revolving lines of credit | ||||
Interest rate margin (as a percent) | 5.00% | 5.00% | 4.75% | |
Floor interest rate for reference rate (as a percent) | 1.00% |
Long-term debt and revolving _7
Long-term debt and revolving lines of credit - Revolving Credit Facility (Details) $ in Thousands | Sep. 14, 2018USD ($) | Apr. 06, 2012USD ($) | Mar. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Apr. 01, 2017USD ($) |
Long-term debt and revolving lines of credit | |||||
Net amount of borrowings on revolving credit facility | $ 331,500 | $ 335,000 | $ 30,000 | ||
Loss on extinguishment of debt | (2,082) | $ (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 | $ 10,000 | $ 10,000 | |||
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 dividend payable during term of debt | $ 15,000 | ||||
Amount of availability under facility | 66,159 | ||||
Line of credit, draw down | $ 62,948 | ||||
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 | |||||
Amount of dividend payable during term of debt | $ 12,500 | ||||
Threshold fixed charge coverage ratio for payment of dividend | 1.10 | ||||
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 |
Long-term debt and revolving _8
Long-term debt and revolving lines of credit - Elfa Senior Secured Credit Facilities (Details) $ in Thousands, kr in Millions | Mar. 18, 2019SEK (kr) | Apr. 01, 2014SEK (kr) | Mar. 30, 2019SEK (kr) | Mar. 30, 2019USD ($) |
2014 Elfa term loan facility | ||||
Long-term debt and revolving lines of credit | ||||
Face amount | kr 60 | $ 6,455 | ||
Quarterly principal payments | kr 3 | 323 | ||
2014 Elfa revolving credit facility | ||||
Long-term debt and revolving lines of credit | ||||
Face amount | kr 140 | 15,062 | ||
Amount of availability under facility | 9,551 | |||
2014 Elfa revolving credit facility | Base rate | ||||
Long-term debt and revolving lines of credit | ||||
Interest rate margin (as a percent) | 1.40% | |||
Incremental Term Facility | ||||
Long-term debt and revolving lines of credit | ||||
Face amount | kr 25 | 2,690 | ||
Incremental Term Facility | STIBOR | ||||
Long-term debt and revolving lines of credit | ||||
Interest rate margin (as a percent) | 1.70% | |||
2019 Original Revolving Facility | ||||
Long-term debt and revolving lines of credit | ||||
Face amount | kr 110 | 11,834 | ||
2019 Original Revolving Facility | Base rate | ||||
Long-term debt and revolving lines of credit | ||||
Interest rate margin (as a percent) | 1.40% | |||
2019 Additional Revolving Facility | ||||
Long-term debt and revolving lines of credit | ||||
Face amount | kr 115 | $ 12,372 | ||
Minimum | 2014 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% | |||
Minimum | 2019 Elfa senior secured credit facilities | ||||
Long-term debt and revolving lines of credit | ||||
Consolidated equity ratio after year one | 32.50% | |||
Maximum | 2014 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 | ||
Maximum | 2019 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 _9
Long-term debt and revolving lines of credit - Deferred financing costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Long-term debt and revolving lines of credit | |||
Amortization expense of deferred financing costs | $ 2,351 | $ 2,664 | $ 1,921 |
Amortization expense of deferred financing costs: | |||
Within 1 year | 1,862 | ||
2 years | 1,862 | ||
3 years | 1,862 | ||
4 years | 1,819 | ||
5 years | 745 | ||
Total | 8,150 | ||
Senior secured term loan facility | |||
Long-term debt and revolving lines of credit | |||
Deferred financing costs | 2,384 | 9,640 | |
Amortization expense of deferred financing costs: | |||
Within 1 year | 1,791 | ||
2 years | 1,791 | ||
3 years | 1,791 | ||
4 years | 1,791 | ||
5 years | 745 | ||
Total | 7,909 | ||
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 | 28 | ||
Total | $ 241 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Income before income taxes: | |||
U.S. | $ 14,397 | $ 3,001 | $ 19,307 |
Foreign | 7,564 | 3,704 | 5,048 |
Income before taxes | 21,961 | 6,705 | 24,355 |
Current | |||
Federal | (780) | 10,685 | 6,039 |
State | 1,464 | 792 | 1,374 |
Foreign | 1,160 | 1,345 | 2,085 |
Total current provision | 1,844 | 12,822 | 9,498 |
Deferred | |||
Federal | (1,350) | (25,418) | 553 |
State | (68) | 158 | 22 |
Foreign | (145) | (285) | (671) |
Total deferred benefit | (1,563) | (25,545) | (96) |
Total provision (benefit) for income taxes | $ 281 | $ (12,723) | $ 9,402 |
Income taxes - Tax Cuts and Job
Income taxes - Tax Cuts and Jobs Act (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 29, 2018 | Mar. 31, 2018 | Mar. 30, 2019 |
Income taxes | ||||
U.S. federal corporate tax rate | 21.00% | |||
Provisional benefit related to the remeasurement of deferred tax balances | $ 24,210 | |||
Provisional tax expense | 303 | |||
Net provisional tax benefit | $ 23,907 | |||
Provisional expense related to the one-time transition tax on foreign earnings | $ 5,903 | $ 8,521 | ||
Provisional expense related to the one-time transition tax on foreign earnings, net of foreign tax credit | $ 2,618 | |||
Foreign tax credits utilized, result of Tax Act | 833 | |||
Foreign tax credits, result of Tax Act | 1,331 | |||
Remaining transition tax liability | $ 1,620 | |||
Number of installments | 6 years |
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 | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
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 | $ 4,612 | $ 2,114 | $ 8,525 |
Permanent differences | 1,230 | 566 | 536 |
One-time transition tax, net | (5,903) | 8,521 | |
Change in valuation allowance | (116) | 211 | 178 |
State income taxes, net of federal benefit | 817 | 455 | 855 |
Effect of foreign income taxes | (511) | (351) | (619) |
Remeasurement of deferred tax balances | 303 | (24,210) | |
Other, net | (151) | (29) | (73) |
Total provision (benefit) for income taxes | $ 281 | $ (12,723) | $ 9,402 |
Income taxes - Components of de
Income taxes - Components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Mar. 31, 2018 |
Deferred tax assets: | ||
Inventory | $ 1,165 | $ 1,004 |
Loss and credit carryforwards | 4,839 | 9,163 |
Stock compensation | 5,346 | 4,995 |
Accrued liabilities | 5,061 | 3,728 |
Capital assets | 99 | 454 |
Deferred tax assets before valuation allowance | 16,510 | 19,344 |
Valuation allowance | (3,534) | (7,724) |
Total deferred tax assets | 12,976 | 11,620 |
Deferred tax liabilities: | ||
Intangibles | (57,153) | (58,568) |
Capital assets | (2,904) | (4,104) |
Other | (2,709) | (1,383) |
Total deferred tax liabilities | (62,766) | (64,055) |
Net deferred tax liabilities | $ (49,790) | $ (52,435) |
Income taxes - Operating loss c
Income taxes - Operating loss carryovers (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Mar. 31, 2018 |
Operating loss carryovers | ||
Valuation allowances | $ 2,181 | $ 2,201 |
Foreign and Domestic | ||
Operating loss carryovers | ||
Tax credits | 1,190 | 1,545 |
Foreign and State | ||
Operating loss carryovers | ||
Deferred tax assets for net operating loss carryovers | $ 2,317 | $ 2,434 |
Employee benefit plans 401(k) P
Employee benefit plans 401(k) Plan (Details) - USD ($) | Jan. 01, 2019 | Sep. 09, 2018 | Mar. 30, 2019 | 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 | $ 19,000 | |||||
Percentage of employee contributions matched by the company | 50.00% | 100.00% | ||||
Matching contribution by the company as a percentage of compensation | 3.00% | |||||
Total net periodic benefit cost | $ 618,000 | $ 0 | $ 58,000 | |||
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 | $ 25,000 |
Employee benefit plans - Nonqua
Employee benefit plans - Nonqualified retirement plan (Details) - Nonqualified retirement plan - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Pension plans | |||
Matching contribution | $ 0 | $ 0 | $ 0 |
Other current assets | |||
Pension plans | |||
Fair value of the plan asset | 5,810 | 5,848 | |
Accrued liabilities | |||
Pension plans | |||
Carrying value of the plan liability | $ 5,816 | $ 5,854 |
Employee benefit plans - Pensio
Employee benefit plans - Pension plan (Details) - Pension plan - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Change in benefit obligation: | |||
Projected benefit obligation, beginning of year | $ 4,900 | $ 4,138 | |
Service cost | 51 | 37 | $ 67 |
Interest cost | 141 | 143 | 117 |
Benefits paid | (85) | (83) | |
Actuarial loss | 364 | 382 | |
Exchange rate (gain) loss | (509) | 283 | |
Projected benefit obligation, end of year | 4,862 | 4,900 | 4,138 |
Underfunded status, end of year | $ (4,862) | $ (4,900) | |
Discount rate (as a percent) | 2.60% | 3.10% | |
Rate of pay increases (as a percent) | 3.00% | 3.00% | |
Components of net periodic benefit cost: | |||
Service cost | $ 51 | $ 37 | 67 |
Interest cost | 141 | 143 | 117 |
Amortization of unrecognized net loss | 68 | 63 | 37 |
Net periodic benefit cost for defined benefit plan | 260 | 243 | 221 |
Defined contribution plans | 2,078 | 2,237 | 1,904 |
Total net periodic benefit cost | $ 2,338 | $ 2,480 | $ 2,125 |
Elfa | |||
Pension plans | |||
Percentage of employees who are plan participants | 3.00% |
Stock-based compensation (Detai
Stock-based compensation (Details) - shares | Mar. 30, 2019 | Sep. 12, 2017 |
2013 Equity Plan | ||
Stock-based compensation | ||
Number of shares reserved for issuance | 3,616,570 | |
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 | 7,394,904 |
Stock-based compensation - Rest
Stock-based compensation - Restricted stock awards (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 12, 2018 | Jun. 01, 2018 | Dec. 12, 2017 | Mar. 30, 2019 | Mar. 31, 2018 |
Restricted shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of restricted shares granted (in shares) | 624,717 | 22,191 | |||
Grant-date fair value (in dollars per share) | $ 8.06 | $ 5.52 | |||
Stock-based compensation cost related to restricted stock awards | $ 1,527 | $ 506 | |||
Unrecognized compensation expense related to outstanding restricted stock awards | $ 2,061 | ||||
Average remaining service period for recognition of unrecognized compensation cost | 1 year 6 months | ||||
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) | 73,264 | 551,453 | 22,191 | ||
Grant-date fair value (in dollars per share) | $ 10.92 | $ 7.68 | $ 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 | Time-based restricted shares granted on June 1, 2018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of restricted shares granted (in shares) | 112,553 | ||||
Vesting period | 3 years | ||||
Amended and Restated Plan | Time-based restricted shares granted on September 12, 2018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of restricted shares granted (in shares) | 73,264 | ||||
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 | ||||
Amended and Restated Plan | Performance-based restricted shares granted on June 1, 2018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of restricted shares granted (in shares) | 438,900 | ||||
Vesting period | 3 years | ||||
Performance-based restricted shares that met performance condition | 205,616 |
Stock-based compensation - Re_2
Stock-based compensation - Restricted stock awards activity (Details) - Restricted shares - $ / shares | 12 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Restricted Stock Awards | ||
Nonvested, Beginning balance (in shares) | 243,235 | 246,534 |
Granted (in shares) | 624,717 | 22,191 |
Vested (in shares) | (70,132) | |
Forfeited (in shares) | (4,372) | (25,490) |
Withheld related to net settlement (in shares) | (23,590) | |
Nonvested, Ending balance (in shares) | 769,858 | 243,235 |
Weighted Average Grant Date Fair Value | ||
Nonvested, Balance at the beginning of the period (in dollars per share) | $ 5.39 | $ 5.37 |
Granted (in dollars per share) | 8.06 | 5.52 |
Vested (in dollars per share) | 5.38 | |
Forfeited (in dollars per share) | 5.29 | 5.38 |
Withheld related to net settlement (in dollars per share) | 5.38 | |
Nonvested, Balance at the end of the period (in dollars per share) | $ 7.56 | $ 5.39 |
Stock-based compensation - Stoc
Stock-based compensation - Stock Options (Details) - Nonqualified stock options - USD ($) $ in Thousands | Sep. 12, 2017 | Aug. 01, 2016 | Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 |
Stock-based compensation | |||||
Stock-based compensation expense (in dollars) | $ 1,319 | $ 1,520 | $ 1,526 | ||
Unrecognized compensation cost (in dollars) | $ 1,501 | ||||
Average remaining service period for recognition of unrecognized compensation cost | 10 months 24 days | ||||
Intrinsic value | $ 0 | 0 | 0 | ||
Fair value of shares vested | $ 1,507 | $ 1,613 | $ 1,464 | ||
Amended and Restated Plan | |||||
Stock-based compensation | |||||
Vesting period | 3 years | 3 years | |||
Awards granted (in shares) | 343,352 | 276,075 | 0 |
Stock-based compensation - St_2
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. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Shares | ||||
Beginning balance (in shares) | 2,890,476 | 3,040,206 | 2,946,028 | 2,890,476 |
Granted (in shares) | 0 | 343,352 | 276,075 | |
Exercised (in shares) | 0 | |||
Forfeited (in shares) | (6,690) | (27,793) | (90,881) | (98,815) |
Expired (in shares) | (576) | (116,874) | (158,293) | (121,708) |
Ending balance (in shares) | 2,895,539 | 3,040,206 | 2,946,028 | |
Vested and exercisable at end of year (in shares) | 2,428,274 | 2,241,283 | 2,156,537 | |
Weighted-average exercise price | ||||
Balance at the beginning of the period (in dollars per share) | $ 18.02 | $ 15.40 | $ 16.81 | $ 18.02 |
Granted (in dollars per share) | 4.10 | 5.35 | ||
Forfeited (in dollars per share) | 18 | 15.13 | 18.63 | |
Expired (in dollars per share) | 17.89 | 17.31 | 17.95 | |
Balance at the end of the period (in dollars per share) | 15.27 | 15.40 | 16.81 | |
Exercisable at the end of the period (in dollars per share) | $ 16.49 | $ 17.53 | $ 17.98 | |
Weighted-average contractual term remaining | ||||
Balance at end of year | 5 years 3 months 7 days | 6 years 2 months 23 days | 6 years 9 months 29 days | |
Exercisable at the end of the period | 4 years 11 months 12 days | 5 years 7 months 24 days | 6 years 6 months 4 days | |
Aggregate intrinsic value | ||||
Balance at the end of the period | $ 2,460,384 | $ 482 | ||
Exercisable at the end of the period | $ 1,102,326 | $ 7 |
Stock-based compensation - Fair
Stock-based compensation - Fair value of stock options (Details) - $ / shares | 12 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Stock-based compensation | ||
Weighted average grant date fair value (in dollars per share) | $ 2.33 | $ 3.26 |
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 |
Expected volatility (as a percent) | 60.60% | 67.90% |
Risk-free interest rate (as a percent) | 1.90% | 1.20% |
Dividend yield (as a percent) | 0.00% | 0.00% |
Shareholders' equity - Common s
Shareholders' equity - Common stock (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2018$ / sharesshares | Apr. 01, 2017shares | Mar. 30, 2019USD ($)Vote$ / sharesshares | Apr. 02, 2016$ / 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 | 48,142,319 | ||
Common stock | ||||
Shareholders' equity | ||||
Shares issued | 27,073 | 26,923 | ||
Issue price (in dollars per share) | $ / shares | $ 4.99 | |||
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. 30, 2019$ / 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 comprehensi_3
Accumulated other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Rollforward of the amounts included in AOCI, net of taxes | |||
Balance beginning of period | $ (17,316) | ||
Balance end of period | (26,132) | $ (17,316) | |
Unrecognized net actuarial loss included in accumulated other comprehensive income | (1,833) | (1,793) | |
Pension liability adjustment | |||
Rollforward of the amounts included in AOCI, net of taxes | |||
Balance beginning of period | (1,793) | (1,444) | $ (1,058) |
Other comprehensive income (loss) before reclassifications, net of tax | (92) | (398) | (413) |
Amounts reclassified to earnings, net of tax | 52 | 49 | 27 |
Net current period other comprehensive (loss) income | (40) | (349) | (386) |
Balance end of period | (1,833) | (1,793) | (1,444) |
Foreign currency translation | |||
Rollforward of the amounts included in AOCI, net of taxes | |||
Balance beginning of period | (15,421) | (21,044) | (14,761) |
Other comprehensive income (loss) before reclassifications, net of tax | (7,911) | 5,623 | (6,283) |
Net current period other comprehensive (loss) income | (7,911) | 5,623 | (6,283) |
Balance end of period | (23,332) | (15,421) | (21,044) |
Accumulated other comprehensive income (loss) | |||
Rollforward of the amounts included in AOCI, net of taxes | |||
Balance beginning of period | (17,316) | (22,643) | (15,836) |
Other comprehensive income (loss) before reclassifications, net of tax | (10,200) | 6,428 | (7,239) |
Amounts reclassified to earnings, net of tax | 1,384 | (1,101) | 432 |
Net current period other comprehensive (loss) income | (8,816) | 5,327 | (6,807) |
Balance end of period | (17,316) | (22,643) | |
Foreign currency hedge instruments | |||
Rollforward of the amounts included in AOCI, net of taxes | |||
Balance beginning of period | (102) | (155) | (17) |
Other comprehensive income (loss) before reclassifications, net of tax | (2,197) | 1,203 | (543) |
Amounts reclassified to earnings, net of tax | 1,332 | (1,150) | 405 |
Net current period other comprehensive (loss) income | (865) | 53 | (138) |
Balance end of period | $ (967) | $ (102) | $ (155) |
Foreign currency forward cont_2
Foreign currency forward contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 | |
Purchase of inventory from use of forward contracts in Swedish krona (as a percent) | 80.00% | 80.00% | 78.00% | |
Purchase of U.S. dollars from use of forward contracts | $ 0 | $ 1,648 | $ 3,905 | |
Purchase of U.S. dollars from use of forward contracts as a percent of Elfa's U.S. Dollar purchases | 0.00% | 21.00% | 56.00% | |
Currency Related Hedge Instruments Term Minimum | 1 month | 1 month | ||
Currency Related Hedge Instruments Term Maximum | 12 months | 12 months | ||
Accumulated other comprehensive loss | $ 26,132 | $ 17,316 | ||
Foreign currency hedge instruments | ||||
Accumulated other comprehensive loss | 967 | $ 102 | $ 155 | $ 17 |
Foreign currency hedge instruments | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Unrealized loss for settled foreign currency hedge instruments | (280) | |||
Unrealized loss to be reclassified into earnings over the next 12 months | $ (280) |
Leases (Details)
Leases (Details) | Mar. 30, 2019store |
Leases | |
Number of stores | 92 |
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 | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Future minimum lease payments due under noncancellable operating leases: | |||
Within 1 year | $ 89,869 | ||
2 years | 86,930 | ||
3 years | 71,295 | ||
4 years | 63,705 | ||
5 years | 55,711 | ||
Thereafter | 167,537 | ||
Total minimum lease payments | 535,047 | ||
Future minimum lease payments due under noncancellable capital leases: | |||
within 1 year | 203 | ||
2 years | 122 | ||
3 years | 94 | ||
4 years | 13 | ||
5 years | 110 | ||
Total minimum lease payments | 542 | ||
Less amount representing interest | (48) | ||
Present value of minimum lease payments | 494 | ||
Rent expense | 91,302 | $ 86,070 | $ 80,647 |
Percentage-of-sales rent expense included in rent expense | $ 1,684 | $ 354 | $ 416 |
Commitments and contingencies (
Commitments and contingencies (Details) $ in Thousands | Mar. 30, 2019USD ($) |
Standby letters of credit | |
Commitments and contingencies | |
Amount outstanding | $ 4,428 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Mar. 31, 2018 |
Fair value | ||
Liabilities | ||
Estimated fair value of long-term debt, including current maturities | $ 274,753 | $ 295,605 |
Recurring | ||
Assets | ||
Total assets | 5,810 | 5,848 |
Recurring | Other current assets | ||
Assets | ||
Nonqualified retirement plan | $ 5,810 | $ 5,848 |
Segment reporting (Details)
Segment reporting (Details) | 12 Months Ended |
Mar. 30, 2019segmentcountry | |
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 ($) | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Segment reporting | |||
Sales | $ 895,093,000 | $ 857,228,000 | $ 819,930,000 |
Adjusted EBITDA | 96,347,000 | 89,603,000 | 86,559,000 |
Depreciation and amortization | 36,305,000 | 37,922,000 | 37,124,000 |
Interest expense, net | 27,275,000 | 25,013,000 | 16,687,000 |
Capital expenditures | 33,670,000 | 27,646,000 | 28,515,000 |
Goodwill | 202,815,000 | 202,815,000 | 202,815,000 |
Trade names | 225,150,000 | 229,401,000 | 226,685,000 |
Assets | 748,744,000 | 749,369,000 | 761,834,000 |
TCS | |||
Segment reporting | |||
Net benefit on deferred compensation related to amendment and restatement of employment agreement | 3,900 | ||
Operating segments | TCS | |||
Segment reporting | |||
Sales | 829,622,000 | 787,375,000 | 752,675,000 |
Adjusted EBITDA | 84,041,000 | 77,274,000 | 75,268,000 |
Depreciation and amortization | 31,924,000 | 32,504,000 | 31,572,000 |
Interest expense, net | 27,016,000 | 24,740,000 | 16,403,000 |
Capital expenditures | 31,176,000 | 25,678,000 | 25,901,000 |
Goodwill | 202,815,000 | 202,815,000 | 202,815,000 |
Trade names | 187,048,000 | 187,048,000 | 187,048,000 |
Assets | 649,351,000 | 635,529,000 | 656,884,000 |
Operating segments | Elfa | |||
Segment reporting | |||
Sales | 65,471,000 | 69,853,000 | 67,255,000 |
Adjusted EBITDA | 12,563,000 | 13,233,000 | 11,186,000 |
Depreciation and amortization | 4,381,000 | 5,418,000 | 5,552,000 |
Interest expense, net | 259,000 | 273,000 | 284,000 |
Capital expenditures | 2,494,000 | 1,968,000 | 2,614,000 |
Trade names | 38,102,000 | 42,353,000 | 39,637,000 |
Assets | 103,347,000 | 117,592,000 | 107,998,000 |
lntersegment | |||
Segment reporting | |||
Sales | (57,849,000) | (54,939,000) | (47,898,000) |
lntersegment | Elfa | |||
Segment reporting | |||
Sales | 57,849,000 | 54,939,000 | 47,898,000 |
Corporate/other | |||
Segment reporting | |||
Adjusted EBITDA | (257,000) | (904,000) | 105,000 |
Assets | $ (3,954,000) | $ (3,752,000) | $ (3,048,000) |
Segment reporting - Reconciliat
Segment reporting - Reconciliation of Adjusted EBITDA by segment to income before taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Segment reporting | |||
Income before taxes | $ 21,961 | $ 6,705 | $ 24,355 |
Depreciation and amortization | 36,305 | 37,922 | 37,124 |
Interest expense, net | 27,275 | 25,013 | 16,687 |
Pre-opening costs | 2,103 | 5,293 | 6,852 |
Non-cash rent | (1,327) | (1,915) | (1,365) |
Stock-based compensation | 2,846 | 2,026 | 1,989 |
Loss on extinguishment of debt | (2,082) | (2,369) | |
Foreign exchange losses (gains) | 60 | (596) | (342) |
Optimization Plan implementation charges | 4,864 | 11,479 | |
Elfa manufacturing facility closure | 803 | ||
Other adjustments | 178 | 504 | 1,259 |
Adjusted EBITDA | $ 96,347 | $ 89,603 | $ 86,559 |
Segment reporting - Sales by me
Segment reporting - Sales by merchandise category as a percentage of total net sales (Details) | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
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 | 49.00% | 48.00% | 48.00% |
Net sales | Sales by merchandise category | Storage, Box, 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 | 14.00% | 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% | 8.00% |
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% | 8.00% |
Net sales | Sales by merchandise category | Containers, Gift Packaging, Seasonal, Impulse | |||
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 6.00% | 7.00% | 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 | 1.00% | 2.00% | 1.00% |
Net income per common share (De
Net income per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Numerator: | |||
Net income | $ 21,680 | $ 19,428 | $ 14,953 |
Denominator: | |||
Weighted-average common shares - basic (in shares) | 48,139,929 | 48,061,527 | 47,996,746 |
Options and other dilutive securities | $ 260,478 | $ 86,198 | $ 19,264 |
Weighted-average common shares - diluted (in shares) | 48,400,407 | 48,147,725 | 48,016,010 |
Net income per common share—basic and diluted | $ 0.45 | $ 0.40 | $ 0.31 |
Stock options outstanding | |||
Antidilutive securities not included: | |||
Antidilutive securities | 2,436,321 | 3,006,604 | 2,954,114 |
Nonvested restricted stock awards | |||
Antidilutive securities not included: | |||
Antidilutive securities | 102,725 | 41,907 | 131,957 |
Schedule I-Condensed Financia_2
Schedule I-Condensed Financial Information of registrant - Condensed balance sheets (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | Apr. 02, 2016 |
Current assets: | ||||
Accounts receivable from subsidiaries | $ 25,568 | $ 25,528 | ||
Total current assets | 164,368 | 154,194 | ||
Noncurrent assets: | ||||
Total noncurrent assets | 584,376 | 595,175 | ||
Total assets | 748,744 | 749,369 | $ 761,834 | |
Current liabilities: | ||||
Accounts payable to subsidiaries | 58,734 | 43,692 | ||
Total current liabilities | 141,275 | 126,537 | ||
Noncurrent liabilities | 342,776 | 374,125 | ||
Total liabilities | 484,051 | 500,662 | ||
Shareholders' equity: | ||||
Common stock | 481 | 481 | ||
Additional paid-in capital | 863,978 | 861,263 | ||
Retained deficit | (573,634) | (595,721) | ||
Total shareholders' equity | 264,693 | 248,707 | $ 221,790 | $ 211,568 |
Total liabilities and shareholders' equity | 748,744 | 749,369 | ||
The Container Store Group, Inc. | ||||
Current assets: | ||||
Accounts receivable from subsidiaries | 1,120 | 1,120 | ||
Total current assets | 1,120 | 1,120 | ||
Noncurrent assets: | ||||
Investment in subsidiaries | 263,573 | 247,587 | ||
Total noncurrent assets | 263,573 | 247,587 | ||
Total assets | 264,693 | 248,707 | ||
Shareholders' equity: | ||||
Common stock | 481 | 481 | ||
Additional paid-in capital | 863,979 | 861,263 | ||
Retained deficit | (599,767) | (613,037) | ||
Total shareholders' equity | 264,693 | 248,707 | ||
Total liabilities and shareholders' equity | $ 264,693 | $ 248,707 |
Schedule I-Condensed Financia_3
Schedule I-Condensed Financial Information of registrant - Condensed statements of operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Condensed statements of operations | |||
Net sales | $ 895,093 | $ 857,228 | $ 819,930 |
Cost of sales (excluding depreciation and amortization) | 371,410 | 360,167 | 343,860 |
Gross profit | 523,683 | 497,061 | 476,070 |
Selling, general, and administrative expenses (excluding depreciation and amortization) | 430,997 | 411,721 | 387,948 |
Stock-based compensation | 2,846 | 2,026 | 1,989 |
Pre-opening costs | 2,103 | 5,293 | 6,852 |
Depreciation and amortization | 36,305 | 37,922 | 37,124 |
Other expenses | 177 | 5,734 | 1,058 |
(Gain) loss on disposal of assets | (63) | 278 | 57 |
Income from operations | 51,318 | 34,087 | 41,042 |
Interest expense, net | 27,275 | 25,013 | 16,687 |
Income before taxes | 21,961 | 6,705 | 24,355 |
Provision for income taxes | 281 | (12,723) | 9,402 |
Net income | 21,680 | 19,428 | 14,953 |
The Container Store Group, Inc. | |||
Condensed statements of operations | |||
Net income of subsidiaries | 21,680 | 19,428 | 14,953 |
Net income | $ 21,680 | $ 19,428 | $ 14,953 |
Schedule I-Condensed Financia_4
Schedule I-Condensed Financial Information of registrant - Condensed statements of comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Apr. 01, 2017 | |
Condensed statements of comprehensive income | |||
Net income | $ 21,680 | $ 19,428 | $ 14,953 |
Unrealized (loss) gain on financial instruments, net of tax (benefit) provision of $(304), $30, and ($85) | (865) | 53 | (138) |
Unrealized gain (loss) on financial instruments, taxes | (304) | 30 | (85) |
Pension liability adjustment, net of tax provision | (40) | (349) | (386) |
Pension liability adjustment, taxes | (11) | (98) | (142) |
Foreign currency translation adjustment | (7,911) | 5,623 | (6,283) |
Comprehensive income | 12,864 | 24,755 | 8,146 |
The Container Store Group, Inc. | |||
Condensed statements of comprehensive income | |||
Net income | 21,680 | 19,428 | 14,953 |
Unrealized (loss) gain on financial instruments, net of tax (benefit) provision of $(304), $30, and ($85) | (865) | 53 | (138) |
Unrealized gain (loss) on financial instruments, taxes | (304) | 30 | (85) |
Pension liability adjustment, net of tax provision | (40) | (349) | (386) |
Pension liability adjustment, taxes | 11 | 98 | 142 |
Foreign currency translation adjustment | (7,911) | 5,623 | (6,283) |
Comprehensive income | $ 12,864 | $ 24,755 | $ 8,146 |
Schedule I-Condensed Financia_5
Schedule I-Condensed Financial Information of registrant - Disclosure (Details) $ in Thousands | Sep. 14, 2018USD ($) | Apr. 06, 2012USD ($) | Mar. 30, 2019USD ($) | Mar. 31, 2018USD ($) |
Guarantees and restrictions | ||||
Long-term debt outstanding | $ 275,396 | $ 295,053 | ||
Debt Instrument leverage ratio covenant | 2.750 | |||
Fee premium imposed on voluntary prepayments (as a percent) | 1.00% | |||
Revolving credit facility | ||||
Guarantees and restrictions | ||||
Long-term debt outstanding | 12,000 | |||
Amount of dividend payable during term of debt | 15,000 | |||
Available credit | $ 66,159 | |||
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 | ||||
Amount of dividend payable during term of debt | $ 12,500 | |||
Threshold fixed charge coverage ratio for payment of dividend | 1.10 | |||
Senior secured term loan facility | ||||
Guarantees and restrictions | ||||
Long-term debt outstanding | $ 257,391 | $ 294,375 | ||
Aggregate principle amount | $ 272,500 | |||
Senior secured term loan facility | LIBOR | ||||
Guarantees and restrictions | ||||
Interest rate margin (as a percent) | 5.00% | 5.00% | 4.75% | |
Senior secured term loan facility | Base rate | ||||
Guarantees and restrictions | ||||
Interest rate margin (as a percent) | 4.00% | 3.75% | ||
The Container Store Group, Inc. | ||||
Guarantees and restrictions | ||||
Restricted net assets of consolidated subsidiaries | $ 252,193 | |||
The Container Store Group, Inc. | Revolving credit facility | ||||
Guarantees and restrictions | ||||
Available credit | 66,159 | |||
Borrowings through the Revolving Credit Facility | $ 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 | 1.25 | ||
The Container Store Group, Inc. | Maximum | Revolving credit facility | ||||
Guarantees and restrictions | ||||
Amount of dividend payable during term of debt | $ 10,000 | |||
The Container Store Group, Inc. | Senior secured term loan facility | ||||
Guarantees and restrictions | ||||
Long-term debt outstanding | $ 257,391 | |||
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 | |||
The Container Store Group, Inc. | Senior secured term loan facility | LIBOR | ||||
Guarantees and restrictions | ||||
Debt instrument annual step down leverage ratio | 4.75 | |||
Interest rate margin (as a percent) | 5.00% | |||
The Container Store Group, Inc. | Senior secured term loan facility | Base rate | ||||
Guarantees and restrictions | ||||
Debt instrument annual step down leverage ratio | 3.75 | |||
Interest rate margin (as a percent) | 4.00% | |||
The Container Store Group, Inc. | Senior secured term loan facility | Maximum | ||||
Guarantees and restrictions | ||||
Debt Instrument leverage ratio covenant | 2.75 | |||
Threshold consolidated net leverage ratio for payment of dividend | 2 |