Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Nov. 30, 2013 | Dec. 31, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Container Store Group, Inc. | ' |
Entity Central Index Key | '0001411688 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Nov-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--03-01 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 47,922,842 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_balance_sheets
Consolidated balance sheets (USD $) | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 24, 2012 |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash | $10,822 | $25,351 | $19,875 |
Accounts receivable, net | 28,088 | 25,536 | 24,380 |
Inventory | 105,124 | 82,443 | 96,106 |
Prepaid expenses and other current assets | 24,297 | 21,284 | 20,359 |
Forward contracts | 0 | 1,103 | 615 |
Deferred tax assets, net | 1,505 | 1,505 | 1,203 |
Total current assets | 169,836 | 157,222 | 162,538 |
Noncurrent assets: | ' | ' | ' |
Property and equipment, net | 150,142 | 141,177 | 136,901 |
Goodwill | 202,815 | 202,815 | 202,815 |
Trade names | 241,138 | 241,940 | 255,100 |
Deferred financing costs, net | 10,188 | 8,745 | 9,114 |
Other assets | 841 | 921 | 834 |
Total noncurrent assets | 605,124 | 595,598 | 604,764 |
Total assets | 774,960 | 752,820 | 767,302 |
Current liabilities: | ' | ' | ' |
Accounts payable | 57,365 | 54,334 | 52,867 |
Accrued liabilities | 57,211 | 52,330 | 53,429 |
Income taxes payable | 496 | 2,650 | 1,398 |
Secured revolving credit, Sweden | 16,679 | 13,482 | 17,027 |
Current portion of long-term debt | 8,975 | 9,023 | 8,878 |
Total current liabilities | 140,726 | 131,819 | 133,599 |
Noncurrent liabilities: | ' | ' | ' |
Long-term debt | 342,863 | 276,348 | 293,711 |
Deferred tax liabilities, net | 89,837 | 87,770 | 88,366 |
Deferred rent and other long-term liabilities | 24,252 | 23,508 | 22,227 |
Total noncurrent liabilities | 456,952 | 387,626 | 404,304 |
Total liabilities | 597,678 | 519,445 | 537,903 |
Shareholders' equity: | ' | ' | ' |
Common stock, $0.01 par value, 250,000,000 shares authorized, 47,922,842 shares issued and outstanding at November 30, 2013; 3,528,280 shares authorized, 2,942,326 shares issued and 2,929,466 shares outstanding at March 2, 2013; 3,528,280 shares authorized, 2,942,326 shares issued and 2,928,490 shares outstanding at November 24, 2012 | 479 | 29 | 29 |
Preferred stock, $0.01 par value: | ' | ' | ' |
Additional paid-in capital | 852,698 | 455,246 | 455,121 |
Accumulated other comprehensive income | 716 | 2,713 | 965 |
Retained deficit | -676,611 | -223,830 | -225,924 |
Treasury stock, no shares, 13,426, and 14,394 shares as of November 30, 2013, March 2, 2013, and November 24, 2012, respectively | ' | -787 | -796 |
Total shareholders' equity | 177,282 | 233,375 | 229,399 |
Total liabilities and shareholders' equity | 774,960 | 752,820 | 767,302 |
Senior cumulative preferred stock | ' | ' | ' |
Preferred stock, $0.01 par value: | ' | ' | ' |
Preferred stock | ' | 2 | 2 |
Total shareholders' equity | ' | 2 | ' |
Junior cumulative preferred stock | ' | ' | ' |
Preferred stock, $0.01 par value: | ' | ' | ' |
Preferred stock | ' | 2 | 2 |
Total shareholders' equity | ' | $2 | ' |
Consolidated_balance_sheets_Pa
Consolidated balance sheets (Parenthetical) (USD $) | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 24, 2012 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 |
Common stock, shares authorized | 250,000,000 | 3,528,280 | 3,528,280 |
Common stock, shares issued | 47,922,842 | 2,942,326 | 2,942,326 |
Common stock, shares outstanding | 47,922,842 | 2,929,466 | 2,928,490 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 |
Treasury stock, shares | 0 | 13,426 | 14,394 |
Senior cumulative preferred stock | ' | ' | ' |
Preferred stock, shares authorized | 0 | 250,000 | 250,000 |
Preferred stock, shares issued | 0 | 202,480 | 202,480 |
Preferred stock, shares outstanding | 0 | 202,196 | 202,200 |
Junior cumulative preferred stock | ' | ' | ' |
Preferred stock, shares authorized | 0 | 250,000 | 250,000 |
Preferred stock, shares issued | 0 | 202,480 | 202,480 |
Preferred stock, shares outstanding | 0 | 202,196 | 202,200 |
Consolidated_statements_of_ope
Consolidated statements of operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 24, 2012 | Nov. 30, 2013 | Nov. 24, 2012 |
Consolidated statements of operations | ' | ' | ' | ' |
Net sales | $188,298 | $175,416 | $531,716 | $489,732 |
Cost of sales (excluding depreciation and amortization) | 75,359 | 71,302 | 218,176 | 202,463 |
Gross profit | 112,939 | 104,114 | 313,540 | 287,269 |
Selling, general, and administrative expenses (excluding depreciation and amortization) | 88,797 | 81,715 | 257,870 | 237,022 |
Stock-based compensation | 14,641 | 157 | 14,854 | 157 |
Pre-opening costs | 1,827 | 2,137 | 5,761 | 6,573 |
Depreciation and amortization | 7,569 | 7,336 | 22,620 | 21,825 |
Restructuring charges | 111 | 2,056 | 472 | 4,365 |
Other expenses | 869 | 335 | 1,495 | 817 |
(Gain) loss on disposal of assets | -4 | 92 | 70 | 87 |
(Loss) income from operations | -871 | 10,286 | 10,398 | 16,423 |
Interest expense, net | 5,782 | 5,131 | 16,856 | 16,021 |
Loss on extinguishment of debt | 128 | 4 | 1,229 | 7,333 |
(Loss) income before taxes | -6,781 | 5,151 | -7,687 | -6,931 |
Provision (benefit) for income taxes | 2,705 | -1,711 | 2,487 | -4,708 |
Net (loss) income | -9,486 | 6,862 | -10,174 | -2,223 |
Less: Distributions accumulated to preferred shareholders | -15,597 | -22,456 | -59,747 | -65,410 |
Net loss available to common shareholders | ($25,083) | ($15,594) | ($69,921) | ($67,633) |
Basic and diluted net loss per common share (in dollars per share) | ($1.39) | ($5.32) | ($8.78) | ($23.08) |
Weighted-average common shares outstanding - basic and diluted (in shares) | 18,036,633 | 2,928,964 | 7,965,089 | 2,929,928 |
Consolidated_statements_of_com
Consolidated statements of comprehensive income (loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 24, 2012 | Nov. 30, 2013 | Nov. 24, 2012 |
Consolidated statements of comprehensive income (loss) | ' | ' | ' | ' |
Net (loss) income | ($9,486) | $6,862 | ($10,174) | ($2,223) |
Unrealized gain (loss) on financial instruments, net of taxes of $(171), $(420), $(0), and $(427) | 17 | -511 | -1,104 | -116 |
Pension liability adjustment | -16 | 5 | 18 | 9 |
Foreign currency translation adjustment | 1,283 | -43 | -911 | -1,227 |
Comprehensive (loss) income | ($8,202) | $6,313 | ($12,171) | ($3,557) |
Consolidated_statements_of_com1
Consolidated statements of comprehensive income (loss) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 24, 2012 | Nov. 30, 2013 | Nov. 24, 2012 |
Consolidated statements of comprehensive income (loss) | ' | ' | ' | ' |
Unrealized gain (loss) on financial instruments, taxes | ($171) | ($420) | $0 | ($427) |
Consolidated_statements_of_sha
Consolidated statements of shareholders' equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Treasury Stock | Senior Preferred | Junior Preferred |
In Thousands, except Share data, unless otherwise specified | ||||||||
Balance at Mar. 02, 2013 | $233,375 | $29 | $455,246 | $2,713 | ($223,830) | ($787) | $2 | $2 |
Balance (in shares) at Mar. 02, 2013 | ' | 2,942,326 | ' | ' | ' | -13,426 | 202,480 | 202,480 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | -10,174 | ' | ' | ' | -10,174 | ' | ' | ' |
Payment of distributions to preferred shareholders | -295,813 | ' | ' | ' | -295,813 | ' | ' | ' |
Exchange preferred shares for common shares | ' | 306 | 146,479 | ' | -146,781 | ' | -2 | -2 |
Exchange preferred shares for common shares (in shares) | ' | 30,619,083 | ' | ' | ' | ' | -202,182 | -202,182 |
Issuance of stock in initial public offering, net of costs | 237,021 | 144 | 236,877 | ' | ' | ' | ' | ' |
Issuance of stock in initial public offering, net of costs (in shares) | ' | 14,375,000 | ' | ' | ' | ' | ' | ' |
Tax effect of initial public offering costs | 70 | ' | 70 | ' | ' | ' | ' | ' |
Additions of treasury stock | -53 | ' | ' | ' | ' | -53 | ' | ' |
Additions of treasury stock (in shares) | ' | ' | ' | ' | ' | -737 | ' | ' |
Retirement of treasury stock | ' | ' | -827 | ' | -13 | 840 | ' | ' |
Retirement of treasury stock (in shares) | ' | -13,567 | ' | ' | ' | 14,163 | -298 | -298 |
Fractional shares payout | -1 | ' | -1 | ' | ' | ' | ' | ' |
Stock-based compensation | 14,854 | ' | 14,854 | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | -911 | ' | ' | -911 | ' | ' | ' | ' |
Unrealized loss on financial instruments, net of taxes of $0 | -1,104 | ' | ' | -1,104 | ' | ' | ' | ' |
Pension liability adjustment, net of amortization | 18 | ' | ' | 18 | ' | ' | ' | ' |
Balance at Nov. 30, 2013 | $177,282 | $479 | $852,698 | $716 | ($676,611) | ' | ' | ' |
Balance (in shares) at Nov. 30, 2013 | ' | 47,922,842 | ' | ' | ' | ' | ' | ' |
Consolidated_statements_of_sha1
Consolidated statements of shareholders' equity (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 24, 2012 | Nov. 30, 2013 | Nov. 24, 2012 | Mar. 02, 2013 |
Consolidated statements of shareholders' equity | ' | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 |
Unrealized loss on financial instruments, taxes | ($171) | ($420) | $0 | ($427) | ' |
Consolidated_statements_of_cas
Consolidated statements of cash flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 24, 2012 |
Operating activities | ' | ' |
Net loss | ($10,174) | ($2,223) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 22,620 | 21,825 |
Stock-based compensation | 14,854 | 157 |
Loss on disposal of property and equipment | 70 | 87 |
Deferred tax expense (benefit) | 1,540 | -6,891 |
Noncash interest | 1,367 | 1,092 |
Noncash refinancing expense | 851 | 4,843 |
Other noncash items | 86 | ' |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -2,667 | -3,745 |
Inventory | -22,748 | -24,936 |
Prepaid expenses and other assets | -2,506 | -5,346 |
Accounts payable and accrued liabilities | 7,804 | 20,579 |
Income taxes payable | -1,531 | -70 |
Other noncurrent liabilities | 634 | 1,723 |
Net cash provided by operating activities | 10,200 | 7,095 |
Investing activities | ' | ' |
Additions to property and equipment | -32,117 | -37,078 |
Proceeds from sale of property and equipment | 408 | 297 |
Net cash used in investing activities | -31,709 | -36,781 |
Financing activities | ' | ' |
Borrowings on revolving lines of credit | 50,098 | 62,527 |
Payments on revolving lines of credit | -46,694 | -56,555 |
Borrowings on long-term debt | 120,000 | 290,000 |
Payments on long-term debt | -53,580 | -287,437 |
Payment of debt issuance costs | -3,662 | -9,842 |
Proceeds from issuance of common stock, net | 237,021 | ' |
Payment of distributions to preferred shareholders | -295,826 | ' |
Purchase of treasury shares | -53 | -189 |
Net cash provided by (used in) financing activities | 7,304 | -1,496 |
Effect of exchange rate changes on cash | -324 | -106 |
Net decrease in cash | -14,529 | -31,288 |
Cash at beginning of period | 25,351 | 51,163 |
Cash at end of period | 10,822 | 19,875 |
Supplemental disclosures of non-cash activities: | ' | ' |
Exchange of outstanding preferred shares for common shares | $551,145 | ' |
Nature_of_business_and_summary
Nature of business and summary of significant policies | 9 Months Ended |
Nov. 30, 2013 | |
Nature of business and summary of significant policies | ' |
Nature of business and summary of significant policies | ' |
1. Nature of business and summary of significant policies | |
Nature of business | |
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 through an assortment of innovative products and unparalleled customer service. As of November 30, 2013, The Container Store, Inc. operates 63 stores with an average size of approximately 19,000 selling square feet in 22 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 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. In 2007, The Container Store, Inc. was sold to The Container Store Group, Inc. (the “Company” and formerly known as TCS Holdings, Inc.), 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 October 31, 2013, the Company’s board of directors approved a 5.9-for-one stock split of its existing common shares. All share and per share information has been retroactively adjusted to reflect the stock split. | |
On November 6, 2013, the Company completed its initial public offering (“IPO”). In connection with its IPO, the Company issued and sold 14,375,000 shares of its common stock at a price of $18.00 per share. Upon completion of the IPO, the Company received net proceeds of $237,021, after deducting the underwriting discount of $17,466 and offering expenses of $4,263. On November 6, 2013, net proceeds of $205,813 from the IPO were applied as follows: (i) a distribution was made to all 140 holders of the Company’s 12% Senior Cumulative Preferred Stock (the “Senior Preferred Stock”) (including LGP and 130 of its current and former employees), which reduced the liquidation preference of such shares until such liquidation preference was reduced to $1,000.00 per share and (ii) a distribution was made to all 140 holders of the Company’s 12% Junior Cumulative Preferred Stock (the “Junior Preferred Stock”) (including LGP and 130 of its current and former employees), which reduced the liquidation preference of such shares. On November 8, 2013, net proceeds from the IPO of $31,000 were used to repay a portion of the outstanding borrowings under the Senior Secured Term Loan Facility (as defined below). The remaining $208 of net proceeds from the IPO was used for other operating activities. | |
On November 6, 2013, the Company exchanged each outstanding share of its Senior Preferred Stock and Junior Preferred Stock for 30,619,083 shares of its common stock (the “Exchange”). You may refer to Note 9 of these financial statements for further information regarding the Exchange and other shareholders’ equity transactions during the period. | |
Seasonality | |
The Company’s business is moderately seasonal in nature and, therefore, the results of operations for the thirty-nine weeks ended November 30, 2013 are not necessarily indicative of the operating results of the full year. Demand is generally the highest in the fourth fiscal quarter due to Our Annual elfa® Sale, and lowest in the first fiscal quarter. | |
Summary of significant policies | |
These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes as of and for the fiscal year ended March 2, 2013 included in the Company’s final prospectus, dated October 31, 2013 and filed with the Securities and Exchange Commission (“SEC”) on November 1, 2013 (the “October 31, 2013 Prospectus”), constituting part of the Company’s Registration Statement on Form S-1, as amended (Registration No. 333-191465), and filed with the SEC. | |
Basis of presentation | |
The accompanying unaudited condensed consolidated financial statements include The Container Store Group, Inc. and its wholly owned subsidiaries. All significant intercompany accounts, transactions, and balances have been eliminated in consolidation. The financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and applicable rules and regulations of the SEC regarding interim financial reporting. The consolidated balance sheets as of November 30, 2013 and November 24, 2012, the consolidated statements of operations and the consolidated statements of comprehensive income (loss) for the thirteen and thirty-nine weeks then ended, the consolidated statements of shareholders’ equity and the consolidated statements of cash flows for the thirty-nine weeks then ended have been prepared by the Company and are unaudited. In the opinion of management, the interim financial statements reflect all normal recurring adjustments necessary to present fairly the financial position at the balance sheet dates and the results of operations for the periods presented. The consolidated balance sheet as of March 2, 2013 has been derived from the audited consolidated balance sheet for the fiscal year then ended. | |
Fiscal Year | |
The Company follows a 5-4-4 fiscal calendar, whereby each fiscal quarter consists of thirteen weeks grouped into one five-week “month” and two four-week “months,” and its fiscal year ends on the Saturday closest to February 28th. | |
Stock-Based Compensation | |
The Company accounts for stock-based compensation in accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) No. 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. Compensation expense based upon the fair value of awards is recognized on a straight line basis, net of forfeitures, 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. | |
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. | |
Foreign Currency Translation | |
The functional currency of the Company’s foreign operations is the applicable country’s currency. The functional currency for the Company’s wholly owned subsidiary, Elfa, is the Swedish krona. All assets and liabilities of foreign subsidiaries and affiliates are translated at period-end rates of exchange. Revenues and expenses of foreign subsidiaries and affiliates are translated at weighted-average rates of exchange for the period. Realized gains and losses on purchases of inventory are included in cost of sales. All other realized gains and losses are included in selling, general, and administrative expenses in the consolidated statements of operations. Unrealized gains and losses are reported as cumulative translation adjustments through other comprehensive income (loss). The rates of exchange from Swedish krona to U.S. dollar were 6.5, 6.5, and 6.7 as of November 30, 2013, March 2, 2013, and November 24, 2012, respectively. The carrying amounts of net assets related to Elfa and subject to currency fluctuation were $151,950, $142,840, and $163,520 as of November 30, 2013, March 2, 2013, and November 24, 2012, respectively. | |
Management Estimates | |
The preparation of the Company’s consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. | |
Reclassifications | |
Certain prior period amounts have been reclassified in order to provide consistent comparative information. These reclassifications do not materially impact the unaudited consolidated financial statements for the prior periods presented. | |
Longterm_debt_and_revolving_li
Long-term debt and revolving lines of credit | 9 Months Ended | ||||||||||
Nov. 30, 2013 | |||||||||||
Long-term debt and revolving lines of credit | ' | ||||||||||
Long-term debt and revolving lines of credit | ' | ||||||||||
2. Long-term debt and revolving lines of credit | |||||||||||
On April 6, 2012, The Container Store, Inc.’s debt was refinanced. In connection with the refinancing, a new $275,000 Secured Term Loan Facility (the “Senior Secured Term Loan Facility”) was entered into. The Senior Secured Term Loan Facility replaced the previously existing $125,000 secured term loan and $150,000 of senior subordinated notes. In addition, a new $75,000 Revolving Credit Facility (the “Revolving Credit Facility”) was entered into replacing the previously existing $75,000 asset-based revolving credit facility (these transactions are referred to collectively as the “Refinancing Transaction”). The Company recorded expenses of $7,333 in fiscal 2012 associated with the Refinancing Transaction. This amount consisted of $1,655 related to an early extinguishment fee on the senior subordinated notes and $4,843 of deferred financing costs where accelerated amortization was required. The Company also recorded legal fees and other associated costs of $835. | |||||||||||
On April 8, 2013, The Container Store, Inc. executed an amendment to the Senior Secured Term Loan Facility (the “Increase and Repricing Transaction”). Under the amendment, borrowings under the Senior Secured Term Loan Facility were increased to $362,250. Borrowings under the amended Senior Secured Term Loan Facility accrued interest at a new lower rate of LIBOR + 4.25%, subject to a LIBOR floor of 1.25% and the maturity date remained as April 6, 2019. Additionally, the amendment eliminated the senior secured leverage ratio requirement. The amendment did not eliminate the restrictions on the ability of the Company’s subsidiaries to incur additional liens and indebtedness, make investments and dispositions, pay dividends or make other distributions, make loans, prepay certain indebtedness and enter into sale and lease back transactions. The Company recorded expenses of $1,101 during the thirty-nine weeks ended November 30, 2013 associated with the Increase and Repricing Transaction (all of which was incurred in the first quarter of 2013). The amount consisted of $723 of deferred financing costs where accelerated amortization was required. Legal fees and other associated costs of $378 were also recorded. You may refer to Note 9 in these interim financial statements for a discussion of the $90,000 distribution payment to senior preferred shareholders that was funded by the increased borrowings. | |||||||||||
On November 8, 2013, net proceeds of $31,000 from the IPO were used to repay a portion of the outstanding borrowings under the Senior Secured Term Loan Facility. | |||||||||||
On November 27, 2013, The Container Store, Inc. executed a second amendment to the Senior Secured Term Loan Facility (the “Repricing Transaction”). Under the amended Senior Secured Term Loan Facility, borrowings accrue interest at a new lower rate of LIBOR + 3.25%, subject to a LIBOR floor of 1.00% and the maturity date remained as April 6, 2019. The second amendment did not eliminate the restrictions on the ability of the Company’s subsidiaries to incur additional liens and indebtedness, make investments and dispositions, pay dividends or make other distributions, make loans, prepay certain indebtedness and enter into sale and lease back transactions. The Company recorded expenses of $128, where accelerated amortization was required, during the thirteen weeks ended November 30, 2013 associated with the Repricing Transaction. | |||||||||||
Long-term debt and revolving lines of credit consist of the following: | |||||||||||
November 30, | March 2, | November 24, | |||||||||
2013 | 2013 | 2012 | |||||||||
Secured term loan, U.S. | $ | 329,439 | $ | 272,938 | $ | 273,625 | |||||
Secured term loan, Sweden | 2,864 | 5,812 | 6,570 | ||||||||
Secured revolving credit, U.S. | 14,000 | — | 15,000 | ||||||||
Mortgage and other loans | 5,535 | 6,621 | 7,394 | ||||||||
351,838 | 285,371 | 302,589 | |||||||||
Less current portion | (8,975 | ) | (9,023 | ) | (8,878 | ) | |||||
$ | 342,863 | $ | 276,348 | $ | 293,711 | ||||||
Secured revolving credit, Sweden | $ | 16,679 | $ | 13,482 | $ | 17,027 | |||||
Inventory
Inventory | 9 Months Ended | ||||||||||
Nov. 30, 2013 | |||||||||||
Inventory | ' | ||||||||||
Inventory | ' | ||||||||||
3. Inventory | |||||||||||
The components of inventory are summarized below: | |||||||||||
November 30, | March 2, | November 24, | |||||||||
2013 | 2013 | 2012 | |||||||||
Raw materials | $ | 5,011 | $ | 5,657 | $ | 6,404 | |||||
Work-in-progress | 1,618 | 1,983 | 1,948 | ||||||||
Finished goods | 98,495 | 74,803 | 87,754 | ||||||||
$ | 105,124 | $ | 82,443 | $ | 96,106 |
Net_income_loss_per_share
Net income (loss) per share | 9 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Net income (loss) per share | ' | |||||||||||||
Net income (loss) per share | ' | |||||||||||||
4. Net income (loss) per share | ||||||||||||||
Basic net income (loss) per common share is computed as net income (loss) available to common shareholders divided by the weighted average number of common shares outstanding for the period. Net income (loss) available to common shareholders is computed as net income (loss) less accumulated distributions to preferred shareholders for the period. | ||||||||||||||
The following is a reconciliation of net income (loss) available to common shareholders and the number of shares used in the basic and diluted net loss per share calculations: | ||||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||
November 30, | November 24, | November 30, | November 24, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Numerator: | ||||||||||||||
Net (loss) income | $ | (9,486 | ) | $ | 6,862 | $ | (10,174 | ) | $ | (2,223 | ) | |||
Less: Distributions accumulated to preferred shareholders | (15,597 | ) | (22,456 | ) | (59,747 | ) | (65,410 | ) | ||||||
Net loss available to common shareholders | $ | (25,083 | ) | $ | (15,594 | ) | $ | (69,921 | ) | $ | (67,633 | ) | ||
Denominator: | ||||||||||||||
Weighted average common shares outstanding — basic and diluted | 18,036,633 | 2,928,964 | 7,965,089 | 2,929,928 | ||||||||||
Basic and diluted net loss per common share | $ | (1.39 | ) | $ | (5.32 | ) | $ | (8.78 | ) | $ | (23.08 | ) | ||
Antidilutive securities not included: | ||||||||||||||
Stock options outstanding | 319,190 | — | 140,527 | — | ||||||||||
Pension_plan
Pension plan | 9 Months Ended |
Nov. 30, 2013 | |
Pension plan | ' |
Pension plan | ' |
5. 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. The defined benefit plans are unfunded and approximately 2% of Elfa employees are participants in the defined benefit pension plan. Certain employees also participate in defined contribution plans for which Company contributions are determined as a percentage of participant compensation. The Company contributed $2,117 and $2,281 for defined contribution plans in the thirty-nine weeks ended November 30, 2013 and November 24, 2012, respectively. | |
Income_taxes
Income taxes | 9 Months Ended |
Nov. 30, 2013 | |
Income taxes | ' |
Income taxes | ' |
6. Income taxes | |
The Company’s effective income tax rate for the thirty-nine weeks ended November 30, 2013 was (32.4%) compared to 67.9% for the thirty-nine weeks ended November 24, 2012. The effective income tax rates fell below the federal statutory rate in 2013 primarily due to $5,707 of tax expense resulting from a valuation allowance recorded on the IPO-related stock-based compensation deferred tax asset recorded in the third quarter and $719 of tax expense resulting from a valuation allowance recorded on deferred tax assets of certain foreign subsidiaries of the Company. The effective income tax rates exceeded the federal statutory rate in 2012 primarily due to decreases in the valuation allowance on deferred tax assets and a $3,742 tax benefit recorded in 2012 related a reduction in statutory Swedish tax rates and special economic zone incentives in Poland. |
Commitments_and_contingencies
Commitments and contingencies | 9 Months Ended |
Nov. 30, 2013 | |
Commitments and contingencies | ' |
Commitments and contingencies | ' |
7. Commitments and contingencies | |
In connection with insurance policies, The Container Store, Inc. has outstanding standby letters of credit totaling $2,986 as of November 30, 2013. | |
The Company is subject to various legal proceedings and claims, including employment claims, wage and hour claims, intellectual property claims, contractual and commercial disputes and other matters that arise in the ordinary course of business. While the outcome of these and other claims cannot be predicted with certainty, management does not believe that the outcome of these matters will have a material adverse effect on the Company’s business, results of operations, or financial condition on an individual basis or in the aggregate. | |
Stockbased_compensation
Stock-based compensation | 9 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Stock-based compensation | ' | ||||||||
Stock-based compensation | ' | ||||||||
8. Stock-based compensation | |||||||||
In fiscal 2012, the Company implemented the 2012 Stock Option Plan of The Container Store Group, Inc. (“2012 Equity Plan”). The 2012 Equity Plan provides for grants of nonqualified stock options and incentive stock options. On October 31, 2013, the Company’s board of directors approved the modification of 240,435 outstanding stock options granted under the 2012 Equity Plan to provide for immediate vesting. The Company recognized approximately $1,594 of compensation expense in the thirteen weeks ended November 30, 2013 related to the modification of these stock options. | |||||||||
On October 16, 2013, the Company’s board of directors 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. There were 3,616,570 shares reserved for issuance under the 2013 Equity Plan. | |||||||||
On October 31, 2013, the Company granted 2,622,721 nonqualified stock options under the 2013 Equity Plan to its directors and certain of its employees. The stock options granted were approved by the Company’s board of directors and consisted of nonqualified stock options as defined by the IRS for corporate and individual tax reporting purposes. There were 1,666,066 options granted that immediately vested upon closing of the IPO on November 6, 2013. The remaining stock options granted will vest in equal annual installments over 7 years. The Company recognized $13,008 of compensation expense in the thirteen weeks ended November 30, 2013 related to the 2013 Equity Plan options granted. | |||||||||
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. Stock-based compensation cost recognized in the thirteen and thirty-nine weeks ended November 30, 2013 totaled $14,641 and $14,854, respectively. Stock-based compensation cost recognized in the thirteen and thirty-nine weeks ended November 24, 2012 totaled $157. As of November 30, 2013, there was a remaining unrecognized compensation cost of $7,916 (net of estimated forfeitures) that the Company expects to be recognized on a straight-line basis over an average remaining service period of approximately 6.9 years. | |||||||||
The following table summarizes the Company’s stock option activity during the thirty-nine weeks ended November 30, 2013: | |||||||||
Shares | Weighted- | Weighted-average | |||||||
average | contractual | ||||||||
exercise price | term | ||||||||
remaining | |||||||||
(Per share data) | (In Years) | ||||||||
Balance at March 2, 2013: | 244,064 | $ | 17.01 | — | |||||
Granted | 2,622,721 | $ | 18 | — | |||||
Exercised | — | — | — | ||||||
Canceled | (7,627 | ) | $ | 17.49 | — | ||||
Balance at November 30, 2013 | 2,859,158 | $ | 17.92 | 9.81 | |||||
The aggregate intrinsic value of the 2,859,158 stock options outstanding is $65,112. The Company has 1,906,017 exercisable stock options as of November 30, 2013 with a weighted average exercise price of $17.88 and an aggregate intrinsic value of $43,485. | |||||||||
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. | |||||||||
The following table summarizes the 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 for the thirty-nine weeks ended November 30, 2013: | |||||||||
Thirty-Nine Weeks Ended | |||||||||
November 30, 2013 | |||||||||
Expected term | 5.7 years | ||||||||
Expected volatility | 48.28 | % | |||||||
Risk-free interest rate | 1.49 | % | |||||||
Expected dividend yield | 0 | % | |||||||
Shareholders_equity
Shareholders' equity | 9 Months Ended |
Nov. 30, 2013 | |
Shareholders' equity | ' |
Shareholders' equity | ' |
9. Shareholders’ equity | |
Common stock | |
On August 16, 2007, the Company issued 2,942,326 shares of common stock (giving effect to the stock split discussed below) with a par value of $0.01 per share at a price of $17.01 per share. 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. | |
On October 31, 2013, the Company’s board of directors retired 13,567 shares of common stock (giving effect to the stock split discussed below) held in treasury. | |
On October 31, 2013, the Company’s board of directors approved a 5.9-for-one stock split of its existing common shares. All share and per share information has been retroactively adjusted to reflect the stock split. | |
On November 6, 2013, the Company completed its IPO. In connection with its IPO, the Company issued and sold 14,375,000 shares of its common stock at a price of $18.00 per share. Upon completion of the offering, the Company received net proceeds of approximately $237,021, after deducting the underwriting discount of $17,466 and offering expenses of $4,263. | |
Preferred Stock | |
On April 9, 2013, the Company paid a distribution to holders of its Senior Preferred Stock in the amount of $90,000. Refer to Note 2 for a discussion of the Increase and Repricing Transaction whereby $90,000 of additional secured term loans were executed to fund this distribution. There were zero, $382,847, and $357,908 cumulative preferred share distributions in arrears as of November 30, 2013, March 2, 2013 and November 24, 2012, respectively. These distributions in arrears were not declared by the board of directors and, therefore, have not been accrued on the accompanying consolidated balance sheets as of March 2, 2013 and November 24, 2012. The distributions in arrears were eliminated as of November 6, 2013 through the Distribution and the Exchange, discussed below. | |
On October 31, 2013, the Company’s board of directors retired 298 shares of Senior Preferred Stock and 298 shares of Junior Preferred Stock held in treasury. | |
On November 6, 2013, in connection with the completion of the Company’s IPO, a distribution in the aggregate amount of $205,813 (the “Distribution”), was paid from the net proceeds of the offering, (i) first, to all 140 holders of the Company’s Senior Preferred Stock (including LGP and 130 current and former employees of the Company), which reduced the liquidation preference of such shares until such liquidation preference was reduced to $1,000.00 per share and (ii) second, the remainder was distributed to all 140 holders of the Company’s Junior Preferred Stock (including LGP and 130 current and former employees of the Company), which reduced the liquidation preference of such shares. | |
On November 6, 2013, the Company consummated the Exchange, pursuant to which the Company exchanged the liquidation preference per outstanding share of its Senior Preferred Stock and Junior Preferred Stock, after giving effect to the payment of the Distribution, for 30,619,083 shares of its common stock. The amount of common stock issued in the Exchange was determined by dividing (a) the liquidation preference amount of such preferred stock by (b) the IPO price of $18.00 per share. On an as adjusted basis to give effect to the Distribution and prior to the Exchange, the liquidation preference per share of its outstanding Senior Preferred Stock was $1,000.00 and the liquidation preference per share of its outstanding Junior Preferred Stock was $1,725.98. | |
Following the Exchange, the Company has no outstanding preferred stock. | |
Accumulated_other_comprehensiv
Accumulated other comprehensive income (loss) (AOCI) | 9 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Accumulated other comprehensive income (loss) (AOCI) | ' | |||||||||||||
Accumulated other comprehensive income (loss) (AOCI) | ' | |||||||||||||
10. Accumulated other comprehensive income (loss) (AOCI) | ||||||||||||||
A rollforward of the amounts included in AOCI, net of taxes, is shown below for the thirty-nine weeks ended November 30, 2013: | ||||||||||||||
Foreign | Minimum | Foreign | Total | |||||||||||
currency | pension | currency | ||||||||||||
forward | liability | translation | ||||||||||||
contracts | ||||||||||||||
Balance at March 2, 2013 | $ | 1,545 | $ | (972 | ) | $ | 2,140 | $ | 2,713 | |||||
Other comprehensive income (loss) before reclassifications, net of tax | (560 | ) | 18 | (911 | ) | (1,453 | ) | |||||||
Amounts reclassified to earnings, net of tax | (544 | ) | — | — | (544 | ) | ||||||||
Balance at November 30, 2013 | $ | 441 | $ | (954 | ) | $ | 1,229 | $ | 716 | |||||
Amounts reclassified from accumulated other comprehensive income (loss) for the foreign currency forward contracts 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 11. | ||||||||||||||
Foreign_currency_forward_contr
Foreign currency forward contracts | 9 Months Ended |
Nov. 30, 2013 | |
Foreign currency forward contracts | ' |
Foreign currency forward contracts | ' |
11. 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. The Company utilizes foreign currency forward exchange contracts in Swedish krona to stabilize its retail gross margins and to protect its domestic operations from downward currency exposure by hedging purchases of inventory from its wholly owned subsidiary, Elfa. In the thirty-nine weeks ended November 30, 2013, the Company used forward contracts for 87% of inventory purchases in Swedish krona. All of the Company’s currency-related hedge instruments 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 financial hedge instruments 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 does not have any material financial hedge instruments that do not qualify for hedge accounting treatment as of November 30, 2013, March 2, 2013 and November 24, 2012. The Company records all foreign currency forward contracts on its consolidated balance sheets at fair value. Forward contracts not designated as hedges are adjusted to fair value through income. | |
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 accumulated 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 instruments’ 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 recorded the fair value of its unsettled foreign currency forward contracts as cash flow hedges, resulting in zero, $1,103, and $615 total current asset in the consolidated balance sheet as of November 30, 2013, March 2, 2013, and November 24, 2012, respectively. | |
The Company recorded $441 in accumulated other comprehensive gain at November 30, 2013, all of which represents unrealized gains that have been recorded for settled forward contracts related to inventory on hand as of November 30, 2013. The Company expects the unrealized gain of $441, net of taxes, to be reclassified into earnings over the next 12 months as the underlying inventory is sold to the end customer. | |
Fair_value_measurements
Fair value measurements | 9 Months Ended | ||||||||||||||
Nov. 30, 2013 | |||||||||||||||
Fair value measurements | ' | ||||||||||||||
Fair value measurements | ' | ||||||||||||||
12. Fair value measurements | |||||||||||||||
Under generally accepted accounting principles, the Company is required to a) measure certain assets and liabilities at fair value or b) disclose the fair values of certain assets and liabilities recorded at cost. Accounting standards define fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. Fair value is calculated assuming the transaction occurs in the principal or most advantageous market for the asset or liability and includes consideration of non-performance risk and credit risk of both parties. Accounting standards pertaining to fair value establish a three- tier fair value hierarchy that prioritizes the inputs used in measuring fair value. These tiers include: | |||||||||||||||
· Level 1—valuation inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. | |||||||||||||||
· Level 2—valuation inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||
· Level 3—valuation inputs are unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are determined using model-based techniques that include option pricing models, discounted cash flow models and similar techniques. | |||||||||||||||
As of November 30, 2013, March 2, 2013, and November 24, 2012, the Company held certain items that are required to be measured at fair value on a recurring basis. These included cash, the nonqualified retirement plan, and foreign currency forward contracts. Cash consists of cash on hand. The nonqualified retirement plan consists of investments purchased by employee contributions to retirement savings accounts. Foreign currency forward contracts are related to the Company’s efforts to manage foreign currency fluctuation on purchases of inventory in Swedish krona. The Company’s foreign currency hedge instruments consist of over-the-counter (OTC) contracts, which are not traded on a public exchange. See Note 11 for further information on the Company’s hedging activities. | |||||||||||||||
The fair values of the nonqualified retirement plan and foreign currency forward contracts are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Therefore, the Company has categorized these items as Level 2. 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 at November 30, 2013, March 2, 2013, and November 24, 2012: | |||||||||||||||
Description | Balance Sheet Location | November 30, | March 2, | November 24, | |||||||||||
2013 | 2013 | 2012 | |||||||||||||
Assets | |||||||||||||||
Cash | Level 1 | Cash | $ | 10,822 | $ | 25,351 | $ | 19,875 | |||||||
Nonqualified retirement plan | Level 2 | Prepaid expenses and other current assets | 3,200 | 2,569 | 2,326 | ||||||||||
Foreign currency hedge instruments | Level 2 | Forward contracts | — | 1,103 | 615 | ||||||||||
Total assets | $ | 14,022 | $ | 29,023 | $ | 22,816 | |||||||||
Liabilities | |||||||||||||||
Nonqualified retirement plan | Level 2 | Accrued liabilities | 3,207 | 2,582 | 2,338 | ||||||||||
Total liabilities | $ | 3,207 | $ | 2,582 | $ | 2,338 | |||||||||
The fair values of long-term debt were estimated using discounted cash flow analyses, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements (Level 3 valuations). As of November 30, 2013, March 2, 2013, and November 24, 2012, the carrying values and estimated fair values of the Company’s long-term debt, including current maturities, were: | |||||||||||||||
November 30, 2013 | |||||||||||||||
Carrying | Fair | ||||||||||||||
value | value | ||||||||||||||
Secured term loan, U.S. | $ | 329,439 | $ | 329,439 | |||||||||||
Secured term loan, Sweden | 2,864 | 2,959 | |||||||||||||
Secured revolving credit, U.S. | 14,000 | 14,000 | |||||||||||||
Other loans | 5,535 | 5,521 | |||||||||||||
Total | $ | 351,838 | $ | 351,919 | |||||||||||
March 2, 2013 | |||||||||||||||
Carrying | Fair | ||||||||||||||
value | value | ||||||||||||||
Secured term loan, U.S. | $ | 272,938 | $ | 261,718 | |||||||||||
Secured term loan, Sweden | 5,812 | 5,864 | |||||||||||||
Other loans | 6,621 | 6,675 | |||||||||||||
Total | $ | 285,371 | $ | 274,257 | |||||||||||
November 24, 2012 | |||||||||||||||
Carrying | Fair | ||||||||||||||
value | value | ||||||||||||||
Secured term loan, U.S. | $ | 273,625 | $ | 262,406 | |||||||||||
Secured term loan, Sweden | 6,570 | 6,628 | |||||||||||||
Secured revolving credit, U.S. | 15,000 | 15,000 | |||||||||||||
Other loans | 7,394 | 7,464 | |||||||||||||
Total | $ | 302,589 | $ | 291,498 | |||||||||||
Segment_reporting
Segment reporting | 9 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Segment reporting | ' | |||||||||||||
Segment reporting | ' | |||||||||||||
13. Segment reporting | ||||||||||||||
The Company’s reportable segments were determined on the same basis as how it evaluates the performance internally. 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 services business. These operating segments have been aggregated into a single reportable segment based on the similar customer base that they share, the fact that the merchandise offered is largely the same, and also because they are closely integrated logistically and operationally. | ||||||||||||||
The Elfa segment includes the manufacturing business which produces the elfa® brand products that are sold domestically exclusively through the TCS segment, as well as throughout Europe. The intersegment sales in the Elfa column represent elfa® product sales to the TCS segment. These sales and the related gross margin on product recorded in TCS inventory balances at the end of the period are eliminated for consolidation purposes in the Corporate/Other column. The net sales to external customers in the Elfa column represent sales to customers outside of the United States. | ||||||||||||||
Amounts in the Corporate/Other column include unallocated corporate expenses and assets, intersegment eliminations and other adjustments to segment results necessary for the presentation of consolidated financial results in accordance with generally accepted accounting principles. | ||||||||||||||
In general, the Company uses the same measurements to calculate earnings or loss before income taxes for reportable segments as it does for the consolidated company. However, interest expense and loss on extinguishment of debt related to the domestic secured term loan and revolver is recorded in the Corporate/Other column. | ||||||||||||||
Thirteen Weeks Ended November 30, 2013 | TCS | Elfa | Corporate/ | Total | ||||||||||
other | ||||||||||||||
Net sales to external customers | $ | 163,744 | $ | 24,554 | $ | — | $ | 188,298 | ||||||
Intersegment sales | — | 27,455 | (27,455 | ) | — | |||||||||
Interest expense, net | 13 | 288 | 5,481 | 5,782 | ||||||||||
Earnings (loss) before income taxes (including $14,641 stock-based compensation) (1) | (3,188 | ) | 8,855 | (12,448 | ) | (6,781 | ) | |||||||
Assets(2) | 612,351 | 141,074 | 21,535 | 774,960 | ||||||||||
Thirteen Weeks Ended November 24, 2012 | TCS | Elfa | Corporate/ | Total | ||||||||||
other | ||||||||||||||
Net sales to external customers | $ | 147,722 | $ | 27,694 | $ | — | $ | 175,416 | ||||||
Intersegment sales | — | 23,459 | (23,459 | ) | — | |||||||||
Interest expense, net | 28 | 282 | 4,821 | 5,131 | ||||||||||
Earnings (loss) before income taxes (including $157 stock-based compensation) (1) | 9,313 | 5,478 | (9,640 | ) | 5,151 | |||||||||
Assets(2) | 588,436 | 158,958 | 19,908 | 767,302 | ||||||||||
Thirty-Nine Weeks Ended November 30, 2013 | TCS | Elfa | Corporate/ | Total | ||||||||||
other | ||||||||||||||
Net sales to external customers | $ | 466,543 | $ | 65,173 | $ | — | $ | 531,716 | ||||||
Intersegment sales | — | 47,414 | (47,414 | ) | — | |||||||||
Interest expense, net | 45 | 723 | 16,088 | 16,856 | ||||||||||
Earnings (loss) before income taxes (including $14,854 stock-based compensation) (1) | 13,771 | 7,480 | (28,938 | ) | (7,687 | ) | ||||||||
Assets(2) | 612,351 | 141,074 | 21,535 | 774,960 | ||||||||||
Thirty-Nine Weeks Ended November 24, 2012 | TCS | Elfa | Corporate/ | Total | ||||||||||
other | ||||||||||||||
Net sales to external customers | $ | 418,071 | $ | 71,661 | $ | — | $ | 489,732 | ||||||
Intersegment sales | — | 39,826 | (39,826 | ) | — | |||||||||
Interest expense, net | 85 | 760 | 15,176 | 16,021 | ||||||||||
Earnings (loss) before income taxes (including $157 stock-based compensation) (1) | 22,752 | 1,360 | (31,043 | ) | (6,931 | ) | ||||||||
Assets(2) | 588,436 | 158,958 | 19,908 | 767,302 | ||||||||||
(1) The Corporate/Other column includes $128 and $4 loss on extinguishment of debt for the thirteen weeks ended November 30, 2013 and November 24, 2012, respectively. The Corporate/Other column includes $1,229 and $7,333 loss on extinguishment of debt for the thirty-nine weeks ended November 30, 2013 and November 24, 2012, respectively. | ||||||||||||||
(2) Tangible assets and trade names in the Elfa column are located outside of the United States. Assets in Corporate/Other include assets located in corporate headquarters and distribution center, and include deferred tax assets and fair value of forward contracts. | ||||||||||||||
Nature_of_business_and_summary1
Nature of business and summary of significant policies (Policies) | 9 Months Ended |
Nov. 30, 2013 | |
Nature of business and summary of significant policies | ' |
Seasonality | ' |
Seasonality | |
The Company’s business is moderately seasonal in nature and, therefore, the results of operations for the thirty-nine weeks ended November 30, 2013 are not necessarily indicative of the operating results of the full year. Demand is generally the highest in the fourth fiscal quarter due to Our Annual elfa® Sale, and lowest in the first fiscal quarter. | |
Basis of presentation | ' |
Basis of presentation | |
The accompanying unaudited condensed consolidated financial statements include The Container Store Group, Inc. and its wholly owned subsidiaries. All significant intercompany accounts, transactions, and balances have been eliminated in consolidation. The financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial information and applicable rules and regulations of the SEC regarding interim financial reporting. The consolidated balance sheets as of November 30, 2013 and November 24, 2012, the consolidated statements of operations and the consolidated statements of comprehensive income (loss) for the thirteen and thirty-nine weeks then ended, the consolidated statements of shareholders’ equity and the consolidated statements of cash flows for the thirty-nine weeks then ended have been prepared by the Company and are unaudited. In the opinion of management, the interim financial statements reflect all normal recurring adjustments necessary to present fairly the financial position at the balance sheet dates and the results of operations for the periods presented. The consolidated balance sheet as of March 2, 2013 has been derived from the audited consolidated balance sheet for the fiscal year then ended. | |
Fiscal Year | ' |
Fiscal Year | |
The Company follows a 5-4-4 fiscal calendar, whereby each fiscal quarter consists of thirteen weeks grouped into one five-week “month” and two four-week “months,” and its fiscal year ends on the Saturday closest to February 28th. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Company accounts for stock-based compensation in accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) No. 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. Compensation expense based upon the fair value of awards is recognized on a straight line basis, net of forfeitures, 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. | |
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. | |
Foreign Currency Translation | ' |
Foreign Currency Translation | |
The functional currency of the Company’s foreign operations is the applicable country’s currency. The functional currency for the Company’s wholly owned subsidiary, Elfa, is the Swedish krona. All assets and liabilities of foreign subsidiaries and affiliates are translated at period-end rates of exchange. Revenues and expenses of foreign subsidiaries and affiliates are translated at weighted-average rates of exchange for the period. Realized gains and losses on purchases of inventory are included in cost of sales. All other realized gains and losses are included in selling, general, and administrative expenses in the consolidated statements of operations. Unrealized gains and losses are reported as cumulative translation adjustments through other comprehensive income (loss). The rates of exchange from Swedish krona to U.S. dollar were 6.5, 6.5, and 6.7 as of November 30, 2013, March 2, 2013, and November 24, 2012, respectively. The carrying amounts of net assets related to Elfa and subject to currency fluctuation were $151,950, $142,840, and $163,520 as of November 30, 2013, March 2, 2013, and November 24, 2012, respectively. | |
Management Estimates | ' |
Management Estimates | |
The preparation of the Company’s consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. | |
Reclassifications | ' |
Reclassifications | |
Certain prior period amounts have been reclassified in order to provide consistent comparative information. These reclassifications do not materially impact the unaudited consolidated financial statements for the prior periods presented. | |
Longterm_debt_and_revolving_li1
Long-term debt and revolving lines of credit (Tables) | 9 Months Ended | ||||||||||
Nov. 30, 2013 | |||||||||||
Long-term debt and revolving lines of credit | ' | ||||||||||
Schedule of long-term debt and revolving lines of credit | ' | ||||||||||
November 30, | March 2, | November 24, | |||||||||
2013 | 2013 | 2012 | |||||||||
Secured term loan, U.S. | $ | 329,439 | $ | 272,938 | $ | 273,625 | |||||
Secured term loan, Sweden | 2,864 | 5,812 | 6,570 | ||||||||
Secured revolving credit, U.S. | 14,000 | — | 15,000 | ||||||||
Mortgage and other loans | 5,535 | 6,621 | 7,394 | ||||||||
351,838 | 285,371 | 302,589 | |||||||||
Less current portion | (8,975 | ) | (9,023 | ) | (8,878 | ) | |||||
$ | 342,863 | $ | 276,348 | $ | 293,711 | ||||||
Secured revolving credit, Sweden | $ | 16,679 | $ | 13,482 | $ | 17,027 |
Inventory_Tables
Inventory (Tables) | 9 Months Ended | ||||||||||
Nov. 30, 2013 | |||||||||||
Inventory | ' | ||||||||||
Summary of components of inventory | ' | ||||||||||
November 30, | March 2, | November 24, | |||||||||
2013 | 2013 | 2012 | |||||||||
Raw materials | $ | 5,011 | $ | 5,657 | $ | 6,404 | |||||
Work-in-progress | 1,618 | 1,983 | 1,948 | ||||||||
Finished goods | 98,495 | 74,803 | 87,754 | ||||||||
$ | 105,124 | $ | 82,443 | $ | 96,106 |
Net_income_loss_per_share_Tabl
Net income (loss) per share (Tables) | 9 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Net income (loss) per share | ' | |||||||||||||
Schedule of reconciliation of net income (loss) available to common shareholders and the number of shares used in the basic and diluted net loss per share calculations | ' | |||||||||||||
Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||||||||||||
November 30, | November 24, | November 30, | November 24, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Numerator: | ||||||||||||||
Net (loss) income | $ | (9,486 | ) | $ | 6,862 | $ | (10,174 | ) | $ | (2,223 | ) | |||
Less: Distributions accumulated to preferred shareholders | (15,597 | ) | (22,456 | ) | (59,747 | ) | (65,410 | ) | ||||||
Net loss available to common shareholders | $ | (25,083 | ) | $ | (15,594 | ) | $ | (69,921 | ) | $ | (67,633 | ) | ||
Denominator: | ||||||||||||||
Weighted average common shares outstanding — basic and diluted | 18,036,633 | 2,928,964 | 7,965,089 | 2,929,928 | ||||||||||
Basic and diluted net loss per common share | $ | (1.39 | ) | $ | (5.32 | ) | $ | (8.78 | ) | $ | (23.08 | ) | ||
Antidilutive securities not included: | ||||||||||||||
Stock options outstanding | 319,190 | — | 140,527 | — |
Stockbased_compensation_Tables
Stock-based compensation (Tables) | 9 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Stock-based compensation | ' | ||||||||
Summary of the Company's stock option activity | ' | ||||||||
Shares | Weighted- | Weighted-average | |||||||
average | contractual | ||||||||
exercise price | term | ||||||||
remaining | |||||||||
(Per share data) | (In Years) | ||||||||
Balance at March 2, 2013: | 244,064 | $ | 17.01 | — | |||||
Granted | 2,622,721 | $ | 18 | — | |||||
Exercised | — | — | — | ||||||
Canceled | (7,627 | ) | $ | 17.49 | — | ||||
Balance at November 30, 2013 | 2,859,158 | $ | 17.92 | 9.81 | |||||
Summary of the 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 | ' | ||||||||
Thirty-Nine Weeks Ended | |||||||||
November 30, 2013 | |||||||||
Expected term | 5.7 years | ||||||||
Expected volatility | 48.28 | % | |||||||
Risk-free interest rate | 1.49 | % | |||||||
Expected dividend yield | 0 | % |
Accumulated_other_comprehensiv1
Accumulated other comprehensive income (loss) (AOCI) (Tables) | 9 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Accumulated other comprehensive income (loss) (AOCI) | ' | |||||||||||||
Schedule of rollforward of the amounts included in AOCI, net of taxes | ' | |||||||||||||
Foreign | Minimum | Foreign | Total | |||||||||||
currency | pension | currency | ||||||||||||
forward | liability | translation | ||||||||||||
contracts | ||||||||||||||
Balance at March 2, 2013 | $ | 1,545 | $ | (972 | ) | $ | 2,140 | $ | 2,713 | |||||
Other comprehensive income (loss) before reclassifications, net of tax | (560 | ) | 18 | (911 | ) | (1,453 | ) | |||||||
Amounts reclassified to earnings, net of tax | (544 | ) | — | — | (544 | ) | ||||||||
Balance at November 30, 2013 | $ | 441 | $ | (954 | ) | $ | 1,229 | $ | 716 |
Fair_value_measurements_Tables
Fair value measurements (Tables) | 9 Months Ended | ||||||||||||||
Nov. 30, 2013 | |||||||||||||||
Fair value measurements | ' | ||||||||||||||
Schedule of items measured at fair value on a recurring basis, subject to the disclosure requirements of ASC 820 | ' | ||||||||||||||
Description | Balance Sheet Location | November 30, | March 2, | November 24, | |||||||||||
2013 | 2013 | 2012 | |||||||||||||
Assets | |||||||||||||||
Cash | Level 1 | Cash | $ | 10,822 | $ | 25,351 | $ | 19,875 | |||||||
Nonqualified retirement plan | Level 2 | Prepaid expenses and other current assets | 3,200 | 2,569 | 2,326 | ||||||||||
Foreign currency hedge instruments | Level 2 | Forward contracts | — | 1,103 | 615 | ||||||||||
Total assets | $ | 14,022 | $ | 29,023 | $ | 22,816 | |||||||||
Liabilities | |||||||||||||||
Nonqualified retirement plan | Level 2 | Accrued liabilities | 3,207 | 2,582 | 2,338 | ||||||||||
Total liabilities | $ | 3,207 | $ | 2,582 | $ | 2,338 | |||||||||
Schedule of carrying values and estimated fair values of the Company's long-term debt, including current maturities | ' | ||||||||||||||
November 30, 2013 | |||||||||||||||
Carrying | Fair | ||||||||||||||
value | value | ||||||||||||||
Secured term loan, U.S. | $ | 329,439 | $ | 329,439 | |||||||||||
Secured term loan, Sweden | 2,864 | 2,959 | |||||||||||||
Secured revolving credit, U.S. | 14,000 | 14,000 | |||||||||||||
Other loans | 5,535 | 5,521 | |||||||||||||
Total | $ | 351,838 | $ | 351,919 | |||||||||||
March 2, 2013 | |||||||||||||||
Carrying | Fair | ||||||||||||||
value | value | ||||||||||||||
Secured term loan, U.S. | $ | 272,938 | $ | 261,718 | |||||||||||
Secured term loan, Sweden | 5,812 | 5,864 | |||||||||||||
Other loans | 6,621 | 6,675 | |||||||||||||
Total | $ | 285,371 | $ | 274,257 | |||||||||||
November 24, 2012 | |||||||||||||||
Carrying | Fair | ||||||||||||||
value | value | ||||||||||||||
Secured term loan, U.S. | $ | 273,625 | $ | 262,406 | |||||||||||
Secured term loan, Sweden | 6,570 | 6,628 | |||||||||||||
Secured revolving credit, U.S. | 15,000 | 15,000 | |||||||||||||
Other loans | 7,394 | 7,464 | |||||||||||||
Total | $ | 302,589 | $ | 291,498 |
Segment_reporting_Tables
Segment reporting (Tables) | 9 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Segment reporting | ' | |||||||||||||
Schedule of segment reporting | ' | |||||||||||||
Thirteen Weeks Ended November 30, 2013 | TCS | Elfa | Corporate/ | Total | ||||||||||
other | ||||||||||||||
Net sales to external customers | $ | 163,744 | $ | 24,554 | $ | — | $ | 188,298 | ||||||
Intersegment sales | — | 27,455 | (27,455 | ) | — | |||||||||
Interest expense, net | 13 | 288 | 5,481 | 5,782 | ||||||||||
Earnings (loss) before income taxes (including $14,641 stock-based compensation) (1) | (3,188 | ) | 8,855 | (12,448 | ) | (6,781 | ) | |||||||
Assets(2) | 612,351 | 141,074 | 21,535 | 774,960 | ||||||||||
Thirteen Weeks Ended November 24, 2012 | TCS | Elfa | Corporate/ | Total | ||||||||||
other | ||||||||||||||
Net sales to external customers | $ | 147,722 | $ | 27,694 | $ | — | $ | 175,416 | ||||||
Intersegment sales | — | 23,459 | (23,459 | ) | — | |||||||||
Interest expense, net | 28 | 282 | 4,821 | 5,131 | ||||||||||
Earnings (loss) before income taxes (including $157 stock-based compensation) (1) | 9,313 | 5,478 | (9,640 | ) | 5,151 | |||||||||
Assets(2) | 588,436 | 158,958 | 19,908 | 767,302 | ||||||||||
Thirty-Nine Weeks Ended November 30, 2013 | TCS | Elfa | Corporate/ | Total | ||||||||||
other | ||||||||||||||
Net sales to external customers | $ | 466,543 | $ | 65,173 | $ | — | $ | 531,716 | ||||||
Intersegment sales | — | 47,414 | (47,414 | ) | — | |||||||||
Interest expense, net | 45 | 723 | 16,088 | 16,856 | ||||||||||
Earnings (loss) before income taxes (including $14,854 stock-based compensation) (1) | 13,771 | 7,480 | (28,938 | ) | (7,687 | ) | ||||||||
Assets(2) | 612,351 | 141,074 | 21,535 | 774,960 | ||||||||||
Thirty-Nine Weeks Ended November 24, 2012 | TCS | Elfa | Corporate/ | Total | ||||||||||
other | ||||||||||||||
Net sales to external customers | $ | 418,071 | $ | 71,661 | $ | — | $ | 489,732 | ||||||
Intersegment sales | — | 39,826 | (39,826 | ) | — | |||||||||
Interest expense, net | 85 | 760 | 15,176 | 16,021 | ||||||||||
Earnings (loss) before income taxes (including $157 stock-based compensation) (1) | 22,752 | 1,360 | (31,043 | ) | (6,931 | ) | ||||||||
Assets(2) | 588,436 | 158,958 | 19,908 | 767,302 | ||||||||||
(1) The Corporate/Other column includes $128 and $4 loss on extinguishment of debt for the thirteen weeks ended November 30, 2013 and November 24, 2012, respectively. The Corporate/Other column includes $1,229 and $7,333 loss on extinguishment of debt for the thirty-nine weeks ended November 30, 2013 and November 24, 2012, respectively. | ||||||||||||||
(2) Tangible assets and trade names in the Elfa column are located outside of the United States. Assets in Corporate/Other include assets located in corporate headquarters and distribution center, and include deferred tax assets and fair value of forward contracts. |
Nature_of_business_and_summary2
Nature of business and summary of significant policies (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 06, 2013 | Nov. 06, 2013 | Nov. 06, 2013 | Oct. 31, 2013 | Aug. 16, 2007 | Nov. 30, 2013 | Nov. 08, 2013 |
month | Senior Preferred Stock | Junior Preferred Stock | Common stock | Common stock | Common stock | Common stock | Common stock | |
store | Senior Secured Term Loan Facility | |||||||
sqft | ||||||||
state | ||||||||
Description of business | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stores | 63 | ' | ' | ' | ' | ' | ' | ' |
Average size of stores (in square feet) | 19,000 | ' | ' | ' | ' | ' | ' | ' |
Number of states | 22 | ' | ' | ' | ' | ' | ' | ' |
Stock split ratio | ' | ' | ' | ' | 5.9 | ' | ' | ' |
Stock issued (in shares) | ' | ' | ' | 14,375,000 | ' | 2,942,326 | 14,375,000 | ' |
Issue price (in dollars per share) | ' | ' | ' | $18 | ' | $17.01 | ' | ' |
Net proceeds from initial public offering | ' | ' | ' | $237,021 | ' | ' | ' | ' |
Underwriting discount | ' | ' | ' | 17,466 | ' | ' | ' | ' |
Offering expenses | ' | ' | ' | 4,263 | ' | ' | ' | ' |
Net proceeds from the initial public offering used to make distribution to preferred shareholders | ' | ' | ' | 205,813 | ' | ' | ' | ' |
Rate of distribution on preferred stock (as a percent) | ' | 12.00% | 12.00% | ' | ' | ' | ' | ' |
Liquidation preference amount up to which first distribution was to be made from proceeds of initial public offering | ' | $1,000 | ' | ' | ' | ' | ' | ' |
Net proceeds from IPO used to repay a portion of the outstanding borrowings | ' | ' | ' | ' | ' | ' | ' | 31,000 |
Net proceeds from initial public offering used for other operating activities | ' | ' | ' | $208 | ' | ' | ' | ' |
Stock issued on conversion of preferred stock | ' | ' | ' | 30,619,083 | ' | ' | ' | ' |
Length of fiscal quarter | '91 days | ' | ' | ' | ' | ' | ' | ' |
Number of five week months | 1 | ' | ' | ' | ' | ' | ' | ' |
Number of four week months | 2 | ' | ' | ' | ' | ' | ' | ' |
Nature_of_business_and_summary3
Nature of business and summary of significant policies (Details 2) (Elfa, USD $) | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 24, 2012 |
In Thousands, unless otherwise specified | |||
Elfa | ' | ' | ' |
Financial statements-basis of presentation | ' | ' | ' |
Exchange rate from Swedish Krona to U.S. Dollar | 6.5 | 6.5 | 6.7 |
Carrying amounts of net assets | $151,950 | $142,840 | $163,520 |
Longterm_debt_and_revolving_li2
Long-term debt and revolving lines of credit (Details) (USD $) | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 24, 2012 | Apr. 06, 2012 | Apr. 06, 2012 | Apr. 09, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 24, 2012 | Nov. 30, 2013 | Nov. 24, 2012 | Nov. 27, 2013 | Nov. 08, 2013 | Apr. 08, 2013 | Nov. 30, 2013 | Jun. 01, 2013 | Mar. 02, 2013 | Apr. 06, 2012 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 24, 2012 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 24, 2012 | Mar. 02, 2013 | Apr. 06, 2012 | Apr. 06, 2012 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 24, 2012 |
In Thousands, unless otherwise specified | Secured revolving credit | Previously existing asset-based revolving credit facility | Senior preferred shareholders | Sweden | Sweden | Sweden | U.S. | U.S. | Senior Secured Term Loan Facility | Senior Secured Term Loan Facility | Senior Secured Term Loan Facility | Senior Secured Term Loan Facility | Senior Secured Term Loan Facility | Senior Secured Term Loan Facility | Senior Secured Term Loan Facility | Senior Secured Term Loan Facility | Senior Secured Term Loan Facility | Senior Secured Term Loan Facility | Senior Secured Term Loan Facility | Senior Secured Term Loan Facility | Senior Secured Term Loan Facility | Senior subordinated notes | Senior subordinated notes | Previously existing secured term loan | Mortgage and other loans | Mortgage and other loans | Mortgage and other loans | |||
Secured revolving credit | Secured revolving credit | Secured revolving credit | Secured revolving credit | Secured revolving credit | Sweden | Sweden | Sweden | U.S. | U.S. | U.S. | ||||||||||||||||||||
Long-term debt and revolving lines of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $362,250 | ' | ' | ' | $275,000 | ' | ' | ' | ' | ' | ' | ' | $150,000 | $125,000 | ' | ' | ' |
Borrowings through the Revolving Credit Facility | ' | ' | ' | 75,000 | 75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses recorded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 128 | 1,101 | 7,333 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of an early extinguishment fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,655 | ' | ' | ' | ' | ' |
Deferred financing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 723 | ' | ' | ' | 4,843 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Legal fees and other associated costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 378 | ' | ' | ' | 835 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reference rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | ' | 4.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Floor interest rate for reference rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions paid | ' | ' | ' | ' | ' | 90,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | 351,838 | 285,371 | 302,589 | ' | ' | ' | ' | ' | ' | 14,000 | 15,000 | ' | ' | ' | ' | ' | ' | ' | 2,864 | 5,812 | 6,570 | 329,439 | 272,938 | 273,625 | ' | ' | ' | 5,535 | 6,621 | 7,394 |
Net proceeds from IPO used to repay outstanding borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less current portion | -8,975 | -9,023 | -8,878 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt excluding current portion | 342,863 | 276,348 | 293,711 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured revolving credit | $16,679 | $13,482 | $17,027 | ' | ' | ' | $16,679 | $13,482 | $17,027 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory_Details
Inventory (Details) (USD $) | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 24, 2012 |
In Thousands, unless otherwise specified | |||
Inventory | ' | ' | ' |
Raw materials | $5,011 | $5,657 | $6,404 |
Work-in-progress | 1,618 | 1,983 | 1,948 |
Finished goods | 98,495 | 74,803 | 87,754 |
Total inventory | $105,124 | $82,443 | $96,106 |
Net_income_loss_per_share_Deta
Net income (loss) per share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 24, 2012 | Nov. 30, 2013 | Nov. 24, 2012 |
Numerator: | ' | ' | ' | ' |
Net (loss) income | ($9,486) | $6,862 | ($10,174) | ($2,223) |
Less: Distributions accumulated to preferred shareholders | -15,597 | -22,456 | -59,747 | -65,410 |
Net loss available to common shareholders | ($25,083) | ($15,594) | ($69,921) | ($67,633) |
Denominator: | ' | ' | ' | ' |
Weighted average common shares outstanding - basic and diluted | 18,036,633 | 2,928,964 | 7,965,089 | 2,929,928 |
Basic and diluted net loss per common share (in dollars per share) | ($1.39) | ($5.32) | ($8.78) | ($23.08) |
Antidilutive securities not included: | ' | ' | ' | ' |
Stock options outstanding | 319,190 | ' | 140,527 | ' |
Pension_plan_Details
Pension plan (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 24, 2012 |
Pension plan | ' | ' |
Amount contributed by the Company for defined contribution plans | $2,117 | $2,281 |
Elfa | ' | ' |
Pension plan | ' | ' |
Percentage of employees who are plan participants | 2.00% | ' |
Income_taxes_Details
Income taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 24, 2012 | Mar. 02, 2013 |
Income taxes | ' | ' | ' | ' |
Effective income tax rate (as a percent) | ' | -32.40% | 67.90% | ' |
Tax expense resulting from valuation allowance on IPO-related stock-based compensation deferred tax asset | $5,707 | $5,707 | ' | ' |
Tax expense resulting from valuation allowance on deferred tax assets of certain foreign subsidiaries | 719 | 719 | ' | ' |
Tax benefit related to reduction in statutory Swedish tax rates and special economic zone incentives in Poland | ' | ' | ' | $3,742 |
Commitments_and_contingencies_
Commitments and contingencies (Details) (Standby letters of credit, USD $) | Nov. 30, 2013 |
In Thousands, unless otherwise specified | |
Standby letters of credit | ' |
Commitments and contingencies | ' |
Amount outstanding | $2,986 |
Stockbased_compensation_Detail
Stock-based compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 24, 2012 | Nov. 30, 2013 | Nov. 24, 2012 | Oct. 31, 2013 | Nov. 30, 2013 | Oct. 16, 2013 | Nov. 06, 2013 | Oct. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2013 |
2012 Equity Plan | 2012 Equity Plan | 2013 Equity Plan | 2013 Equity Plan | 2013 Equity Plan | 2013 Equity Plan | 2013 Equity Plan | |||||
Outstanding stock options | Outstanding stock options | Nonqualified stock options | Nonqualified stock options | Nonqualified stock options | Nonqualified stock options | ||||||
Stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards modified for immediate vesting (in shares) | ' | ' | ' | ' | 240,435 | ' | ' | ' | ' | ' | ' |
Compensation expense related to the modification of outstanding stock options | ' | ' | ' | ' | ' | $1,594 | ' | ' | ' | ' | ' |
Number of shares reserved for issuance | ' | ' | ' | ' | ' | ' | 3,616,570 | ' | ' | ' | ' |
Awards granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 2,622,721 | ' | ' |
Awards vested (in shares) | ' | ' | ' | ' | ' | ' | ' | 1,666,066 | ' | ' | ' |
Vesting period of awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years |
Stock-based compensation cost | 14,641 | 157 | 14,854 | 157 | ' | ' | ' | ' | ' | 13,008 | ' |
Unrecognized compensation cost (in dollars) | 7,916 | ' | 7,916 | ' | ' | ' | ' | ' | ' | ' | ' |
Average remaining service period for recognition of unrecognized compensation cost | ' | ' | '6 years 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in shares) | ' | ' | 244,064 | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 2,622,721 | ' | ' | ' | ' | ' | ' | ' | ' |
Canceled (in shares) | ' | ' | -7,627 | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period (in shares) | 2,859,158 | ' | 2,859,158 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | ' | ' | $17.01 | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | $18 | ' | ' | ' | ' | ' | ' | ' | ' |
Canceled (in dollars per share) | ' | ' | $17.49 | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period (in dollars per share) | $17.92 | ' | $17.92 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average contractual term remaining | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period | ' | ' | '9 years 9 months 22 days | ' | ' | ' | ' | ' | ' | ' | ' |
Additional disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value (in dollars) | 65,112 | ' | 65,112 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable options (in shares) | 1,906,017 | ' | 1,906,017 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price of options exercisable (in dollars per share) | $17.88 | ' | $17.88 | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options exercisable (in dollars) | $43,485 | ' | $43,485 | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | '5 years 8 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | 48.28% | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | ' | ' | 1.49% | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend yield (as a percent) | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholders_equity_Details
Shareholders' equity (Details) (USD $) | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 24, 2012 | Apr. 08, 2013 | Nov. 30, 2013 | Nov. 24, 2012 | Mar. 02, 2013 | Oct. 31, 2013 | Apr. 09, 2013 | Nov. 30, 2013 | Nov. 06, 2013 | Oct. 31, 2013 | Nov. 30, 2013 | Nov. 06, 2013 | Nov. 06, 2013 | Oct. 31, 2013 | Aug. 16, 2007 | Nov. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | Secured Term Loan Facility | Senior and Junior Preferred Stock | Senior and Junior Preferred Stock | Senior and Junior Preferred Stock | Senior Preferred Stock | Senior Preferred Stock | Senior Preferred Stock | Senior Preferred Stock | Junior Preferred Stock | Junior Preferred Stock | Junior Preferred Stock | Common stock | Common stock | Common stock | Common stock | |||
vote | ||||||||||||||||||
Shareholders' equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,375,000 | ' | 2,942,326 | 14,375,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' |
Issue price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18 | ' | $17.01 | ' |
Number of votes per share entitled to holders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Redemptions or sinking fund provisions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' |
Treasury shares retired | ' | ' | ' | ' | ' | ' | ' | 298 | ' | 298 | ' | 298 | 298 | ' | ' | 13,567 | ' | 13,567 |
Stock split ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.9 | ' | ' |
Net proceeds from initial public offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 237,021 | ' | ' | ' |
Underwriting discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,466 | ' | ' | ' |
Offering expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,263 | ' | ' | ' |
Amount paid as distribution to holders | ' | ' | ' | ' | ' | ' | ' | ' | 90,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional amount executed to fund distribution | ' | ' | ' | 90,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred share distributions in arrears | ' | ' | ' | ' | 0 | 357,908 | 382,847 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from the initial public offering used to make distribution to preferred shareholders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 205,813 | ' | ' | ' |
Liquidation preference amount up to which first distribution was to be made from proceeds of initial public offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' | ' | ' |
Stock issued on conversion of preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,619,083 | ' | ' | ' |
Liquidation preference (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | ' | ' | $1,725.98 | ' | ' | ' | ' |
Outstanding preferred stock, Value | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated_other_comprehensiv2
Accumulated other comprehensive income (loss) (AOCI) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 24, 2012 |
Rollforward of the amounts included in AOCI, net of taxes | ' | ' |
Balance at the beginning of the period | $2,713 | $965 |
Other comprehensive income (loss) before reclassifications, net of tax | -1,453 | ' |
Amounts reclassified to earnings, net of tax | -544 | ' |
Balance at the end of the period | 716 | 965 |
Minimum pension liability | ' | ' |
Rollforward of the amounts included in AOCI, net of taxes | ' | ' |
Balance at the beginning of the period | -972 | ' |
Other comprehensive income (loss) before reclassifications, net of tax | 18 | ' |
Balance at the end of the period | -954 | ' |
Foreign currency translation | ' | ' |
Rollforward of the amounts included in AOCI, net of taxes | ' | ' |
Balance at the beginning of the period | 2,140 | ' |
Other comprehensive income (loss) before reclassifications, net of tax | -911 | ' |
Balance at the end of the period | 1,229 | ' |
Foreign currency forward contracts | ' | ' |
Rollforward of the amounts included in AOCI, net of taxes | ' | ' |
Balance at the beginning of the period | 1,545 | ' |
Other comprehensive income (loss) before reclassifications, net of tax | -560 | ' |
Amounts reclassified to earnings, net of tax | -544 | ' |
Balance at the end of the period | $441 | ' |
Foreign_currency_forward_contr1
Foreign currency forward contracts (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 24, 2012 |
Foreign currency forward contracts | ' | ' | ' |
Purchase of inventory from use of forward contracts in Swedish krona (as a percent) | 0.87 | ' | ' |
Minimum term period of currency-related hedge instruments | '1 month | ' | ' |
Maximum term period of currency-related hedge instruments | '12 months | ' | ' |
Total current assets, as a result of recording fair value of unsettled foreign currency forward contracts as cash flow hedges | $0 | $1,103 | $615 |
Accumulated other comprehensive gain | 441 | ' | ' |
Unrealized gains to be reclassified into earnings over the next 12 months | $441 | ' | ' |
Fair_value_measurements_Detail
Fair value measurements (Details) (Recurring, USD $) | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 24, 2012 |
In Thousands, unless otherwise specified | |||
Assets | ' | ' | ' |
Total assets | $14,022 | $29,023 | $22,816 |
Liabilities | ' | ' | ' |
Total liabilities | 3,207 | 2,582 | 2,338 |
Level 1 | Cash | ' | ' | ' |
Assets | ' | ' | ' |
Cash | 10,822 | 25,351 | 19,875 |
Level 2 | Prepaid expenses and other current assets | ' | ' | ' |
Assets | ' | ' | ' |
Nonqualified retirement plan | 3,200 | 2,569 | 2,326 |
Level 2 | Forward contracts | ' | ' | ' |
Assets | ' | ' | ' |
Foreign currency hedge instruments | ' | 1,103 | 615 |
Level 2 | Accrued liabilities | ' | ' | ' |
Liabilities | ' | ' | ' |
Nonqualified retirement plan | $3,207 | $2,582 | $2,338 |
Fair_value_measurements_Detail1
Fair value measurements (Details 2) (Level 3, USD $) | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 24, 2012 |
In Thousands, unless otherwise specified | |||
Carrying value | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Fair value | $351,838 | $285,371 | $302,589 |
Carrying value | U.S. | Secured revolving credit | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Fair value | 14,000 | ' | 15,000 |
Carrying value | Secured term loan | U.S. | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Fair value | 329,439 | 272,938 | 273,625 |
Carrying value | Secured term loan | Sweden | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Fair value | 2,864 | 5,812 | 6,570 |
Carrying value | Other loans | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Fair value | 5,535 | 6,621 | 7,394 |
Fair value | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Fair value | 351,919 | 274,257 | 291,498 |
Fair value | U.S. | Secured revolving credit | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Fair value | 14,000 | ' | 15,000 |
Fair value | Secured term loan | U.S. | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Fair value | 329,439 | 261,718 | 262,406 |
Fair value | Secured term loan | Sweden | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Fair value | 2,959 | 5,864 | 6,628 |
Fair value | Other loans | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Fair value | $5,521 | $6,675 | $7,464 |
Segment_reporting_Details
Segment reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 24, 2012 | Nov. 30, 2013 | Nov. 24, 2012 | Mar. 02, 2013 |
segment | |||||
Segment reporting | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 2 | ' | ' |
Segment reporting | ' | ' | ' | ' | ' |
Sales | $188,298 | $175,416 | $531,716 | $489,732 | ' |
Interest expense, net | 5,782 | 5,131 | 16,856 | 16,021 | ' |
Earnings (loss) before income taxes (including stock-based compensation) | -6,781 | 5,151 | -7,687 | -6,931 | ' |
Stock-based compensation | 14,641 | 157 | 14,854 | 157 | ' |
Assets(2) | 774,960 | 767,302 | 774,960 | 767,302 | 752,820 |
Loss on extinguishment of debt | 128 | 4 | 1,229 | 7,333 | ' |
Operating segments | TCS | ' | ' | ' | ' | ' |
Segment reporting | ' | ' | ' | ' | ' |
Sales | 163,744 | 147,722 | 466,543 | 418,071 | ' |
Interest expense, net | 13 | 28 | 45 | 85 | ' |
Earnings (loss) before income taxes (including stock-based compensation) | -3,188 | 9,313 | 13,771 | 22,752 | ' |
Assets(2) | 612,351 | 588,436 | 612,351 | 588,436 | ' |
Operating segments | Elfa | ' | ' | ' | ' | ' |
Segment reporting | ' | ' | ' | ' | ' |
Sales | 24,554 | 27,694 | 65,173 | 71,661 | ' |
Interest expense, net | 288 | 282 | 723 | 760 | ' |
Earnings (loss) before income taxes (including stock-based compensation) | 8,855 | 5,478 | 7,480 | 1,360 | ' |
Assets(2) | 141,074 | 158,958 | 141,074 | 158,958 | ' |
Corporate/other | ' | ' | ' | ' | ' |
Segment reporting | ' | ' | ' | ' | ' |
Interest expense, net | 5,481 | 4,821 | 16,088 | 15,176 | ' |
Earnings (loss) before income taxes (including stock-based compensation) | -12,448 | -9,640 | -28,938 | -31,043 | ' |
Assets(2) | 21,535 | 19,908 | 21,535 | 19,908 | ' |
Loss on extinguishment of debt | 128 | 4 | 1,229 | 7,333 | ' |
lntersegment | ' | ' | ' | ' | ' |
Segment reporting | ' | ' | ' | ' | ' |
Sales | -27,455 | -23,459 | -47,414 | -39,826 | ' |
lntersegment | Elfa | ' | ' | ' | ' | ' |
Segment reporting | ' | ' | ' | ' | ' |
Sales | $27,455 | $23,459 | $47,414 | $39,826 | ' |