Container Store (TCSGQ) 10-Q 30 Oct 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Sep. 28, 2019	Oct. 25, 2019
Document and Entity Information
Entity Registrant Name	Container Store Group, Inc.
Entity Central Index Key	0001411688
Current Fiscal Year End Date	--03-28
Document Fiscal Year Focus	2019
Document Type	10-Q
Document Period End Date	Sep. 28, 2019
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Common Stock Outstanding		49,232,753
Document Fiscal Period Focus	Q2
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false

Consolidated balance sheets

Consolidated balance sheets - USD ($) $ in Thousands	Sep. 28, 2019	Mar. 30, 2019	Sep. 29, 2018
Current assets:
Cash	$ 9,029	$ 7,364	$ 7,212
Accounts receivable, net	26,030	25,568	25,400
Inventory	133,200	108,650	110,801
Prepaid expenses	11,736	10,078	11,021
Income taxes receivable	2,603	1,003	3,394
Other current assets	10,518	11,705	10,562
Total current assets	193,116	164,368	168,390
Noncurrent assets:
Property and equipment, net	155,107	152,588	149,259
Noncurrent operating lease assets	362,609
Goodwill	202,815	202,815	202,815
Trade names	223,184	225,150	226,939
Deferred financing costs, net	206	241	276
Noncurrent deferred tax assets, net	1,803	1,912	1,979
Other assets	1,732	1,670	1,796
Total noncurrent assets	947,456	584,376	583,064
Total assets	1,140,572	748,744	751,454
Current liabilities:
Accounts payable	74,376	58,734	62,313
Accrued liabilities	65,522	67,163	64,199
Revolving lines of credit	10,813	5,511	1,128
Current portion of long-term debt	6,936	7,016	7,052
Current operating lease liabilities	61,663
Income taxes payable	254	2,851	1,851
Total current liabilities	219,564	141,275	136,543
Noncurrent liabilities:
Long-term debt	268,007	254,960	282,289
Noncurrent operating lease liabilities	333,603
Noncurrent deferred tax liabilities, net	49,516	51,702	50,630
Other long-term liabilities	10,534	36,114	41,020
Total noncurrent liabilities	661,660	342,776	373,939
Total liabilities	881,224	484,051	510,482
Commitments and contingencies (Note 6)
Shareholders' equity:
Common stock, $0.01 par value, 250,000,000 shares authorized; 48,306,412 shares issued at September 28, 2019; 48,142,319 shares issued at March 30, 2019; 48,138,907 shares issued at September 29, 2018	483	481	481
Additional paid-in capital	865,347	863,978	862,495
Accumulated other comprehensive loss	(32,395)	(26,132)	(23,167)
Retained deficit	(574,087)	(573,634)	(598,837)
Total shareholders' equity	259,348	264,693	240,972
Total liabilities and shareholders' equity	$ 1,140,572	$ 748,744	$ 751,454

Consolidated balance sheets (Pa

Consolidated balance sheets (Parenthetical) - $ / shares	Sep. 28, 2019	Mar. 30, 2019	Sep. 29, 2018
Consolidated balance sheets
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	250,000,000	250,000,000	250,000,000
Common stock, shares issued	48,306,412	48,142,319	48,138,907

Consolidated statements of oper

Consolidated statements of operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Consolidated statements of operations
Net sales	$ 236,432	$ 224,453	$ 445,952	$ 420,276
Cost of sales (excluding depreciation and amortization)	99,628	93,878	189,341	174,930
Gross profit	136,804	130,575	256,611	245,346
Selling, general, and administrative expenses (excluding depreciation and amortization)	113,978	105,656	222,309	212,261
Stock-based compensation	965	769	1,776	1,355
Pre-opening costs	2,331	881	3,506	1,227
Depreciation and amortization	8,742	9,128	18,448	18,465
Other expenses	403	24	376	217
(Gain) loss on disposal of assets			(4)	40
Income from operations	10,385	14,117	10,200	11,781
Interest expense, net	5,402	7,377	11,111	15,285
Loss on extinguishment of debt		2,082		2,082
Income before taxes	4,983	4,658	(911)	(5,586)
Provision (benefit) for income taxes	1,337	1,417	(458)	(2,063)
Net income (loss)	$ 3,646	$ 3,241	$ (453)	$ (3,523)
Net income (loss) per common share—basic and diluted	$ 0.08	$ 0.07	$ (0.01)	$ (0.07)
Weighted-average common shares - basic (in shares)	48,291,643	48,138,907	48,261,395	48,138,907
Weighted-average common shares - diluted (in shares)	48,417,474	48,519,166	48,261,395	48,138,907

Consolidated statements of comp

Consolidated statements of comprehensive (loss) income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Consolidated statements of comprehensive (loss) income
Net income (loss)	$ 3,646	$ 3,241	$ (453)	$ (3,523)
Unrealized (loss) gain on financial instruments, net of tax (benefit) provision of $(981), $154, $(1,000) and $(412)	(2,801)	438	(2,929)	(1,347)
Pension liability adjustment	125	(18)	123	135
Foreign currency translation adjustment	(3,790)	652	(3,457)	(4,639)
Comprehensive (loss) income	$ (2,820)	$ 4,313	$ (6,716)	$ (9,374)

Consolidated statements of co_2

Consolidated statements of comprehensive (loss) income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Sep. 28, 2019	Jun. 29, 2019	Sep. 29, 2018	Jun. 30, 2018	Sep. 28, 2019	Sep. 29, 2018
Consolidated statements of comprehensive (loss) income
Unrealized (loss) gain on financial instruments, net of tax (benefit) provision	$ (981)	$ (18)	$ 154	$ (566)	$ (1,000)	$ (412)

Consolidated statements of cash

Consolidated statements of cash flows - USD ($) $ in Thousands	6 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Operating activities
Net loss	$ (453)	$ (3,523)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization	18,448	18,465
Stock-based compensation	1,776	1,355
(Gain) loss on disposal of assets	(4)	40
Loss on extinguishment of debt		2,082
Deferred tax benefit	(1,810)	(2,927)
Non-cash interest	931	1,418
Other	199
Changes in operating assets and liabilities:
Accounts receivable	(1,858)	(373)
Inventory	(25,988)	(17,066)
Prepaid expenses and other assets	310	1,875
Accounts payable and accrued liabilities	17,424	13,304
Net change in lease assets and liabilities	122
Income taxes	(4,254)	(6,083)
Other noncurrent liabilities	912	(431)
Net cash provided by operating activities	5,755	8,136
Investing activities
Additions to property and equipment	(21,534)	(10,669)
Proceeds from sale of property and equipment	4	7
Net cash used in investing activities	(21,530)	(10,662)
Financing activities
Borrowings on revolving lines of credit	35,428	45,404
Payments on revolving lines of credit	(29,676)	(19,267)
Borrowings on long-term debt	29,000	272,500
Payments on long-term debt	(16,775)	(294,497)
Payment of debt issuance costs		(2,244)
Payment of taxes with shares withheld upon restricted stock vesting	(356)	(122)
Net cash provided by financing activities	17,621	1,774
Effect of exchange rate changes on cash	(181)	(435)
Net increase (decrease) in cash	1,665	(1,187)
Cash at beginning of fiscal period	7,364	8,399
Cash at end of fiscal period	9,029	7,212
Supplemental information for non-cash investing and financing activities:
Purchases of property and equipment (included in accounts payable)	$ 1,177	$ 1,192

Consolidated statements of shar

Consolidated statements of shareholders' equity - USD ($) $ in Thousands	Common stock	Additional paid-in capital	Accumulated other comprehensive (loss) income	Retained deficit	Total
Common stock, par value (in dollars per share)					$ 0.01
Balance at the beginning of period at Mar. 31, 2018	$ 481	$ 861,263	$ (17,316)	$ (595,721)	$ 248,707
Balance (in shares) at Mar. 31, 2018	48,072,187
Increase (Decrease) in Stockholders' Equity
Net income (loss)				(6,764)	(6,764)
Stock-based compensation		586			586
Vesting of restricted stock awards		(1)			(1)
Vesting of restricted stock awards (in shares)	66,720
Taxes related to net share settlement of restricted stock awards		(122)			(122)
Foreign currency translation adjustment			(5,291)		(5,291)
Unrealized gain on financial instruments, net of tax benefit			(1,785)		(1,785)
Pension liability adjustment			153		153
Balance at the end of period at Jun. 30, 2018	$ 481	861,726	(24,239)	(602,078)	235,890
Balance (in shares) at Jun. 30, 2018	48,138,907
Balance at the beginning of period at Mar. 31, 2018	$ 481	861,263	(17,316)	(595,721)	248,707
Balance (in shares) at Mar. 31, 2018	48,072,187
Increase (Decrease) in Stockholders' Equity
Net income (loss)					(3,523)
Foreign currency translation adjustment					(4,639)
Unrealized gain on financial instruments, net of tax benefit					(1,347)
Pension liability adjustment					135
Balance at the end of period at Sep. 29, 2018	$ 481	862,495	(23,167)	(598,837)	$ 240,972
Balance (in shares) at Sep. 29, 2018	48,138,907
Common stock, par value (in dollars per share)					$ 0.01
Increase (Decrease) in Stockholders' Equity
Cumulative adjustment for adoption of ASC 606 | ASU 2014-09				407	$ 407
Balance at the beginning of period at Jun. 30, 2018	$ 481	861,726	(24,239)	(602,078)	235,890
Balance (in shares) at Jun. 30, 2018	48,138,907
Increase (Decrease) in Stockholders' Equity
Net income (loss)				3,241	3,241
Stock-based compensation		769			769
Foreign currency translation adjustment			652		652
Unrealized gain on financial instruments, net of tax benefit			438		438
Pension liability adjustment			(18)		(18)
Balance at the end of period at Sep. 29, 2018	$ 481	862,495	(23,167)	(598,837)	$ 240,972
Balance (in shares) at Sep. 29, 2018	48,138,907
Common stock, par value (in dollars per share)					$ 0.01
Common stock, par value (in dollars per share)					$ 0.01
Balance at the beginning of period at Mar. 30, 2019	$ 481	863,978	(26,132)	(573,634)	$ 264,693
Balance (in shares) at Mar. 30, 2019	48,142,319
Increase (Decrease) in Stockholders' Equity
Net income (loss)				(4,099)	(4,099)
Stock-based compensation		811			811
Vesting of restricted stock awards	$ 2	(56)			(54)
Vesting of restricted stock awards (in shares)	140,878
Taxes related to net share settlement of restricted stock awards		(347)			(347)
Foreign currency translation adjustment			333		333
Unrealized gain on financial instruments, net of tax benefit			(128)		(128)
Pension liability adjustment			(2)		(2)
Balance at the end of period at Jun. 29, 2019	$ 483	864,386	(25,929)	(577,733)	261,207
Balance (in shares) at Jun. 29, 2019	48,283,197
Balance at the beginning of period at Mar. 30, 2019	$ 481	863,978	(26,132)	(573,634)	264,693
Balance (in shares) at Mar. 30, 2019	48,142,319
Increase (Decrease) in Stockholders' Equity
Net income (loss)					(453)
Foreign currency translation adjustment					(3,457)
Unrealized gain on financial instruments, net of tax benefit					(2,929)
Pension liability adjustment					123
Balance at the end of period at Sep. 28, 2019	$ 483	865,347	(32,395)	(574,087)	$ 259,348
Balance (in shares) at Sep. 28, 2019	48,306,412
Common stock, par value (in dollars per share)					$ 0.01
Balance at the beginning of period at Jun. 29, 2019	$ 483	864,386	(25,929)	(577,733)	$ 261,207
Balance (in shares) at Jun. 29, 2019	48,283,197
Increase (Decrease) in Stockholders' Equity
Net income (loss)				3,646	3,646
Stock-based compensation		965			965
Vesting of restricted stock awards		4			4
Vesting of restricted stock awards (in shares)	23,215
Taxes related to net share settlement of restricted stock awards		(8)			(8)
Foreign currency translation adjustment			(3,790)		(3,790)
Unrealized gain on financial instruments, net of tax benefit			(2,801)		(2,801)
Pension liability adjustment			125		125
Balance at the end of period at Sep. 28, 2019	$ 483	$ 865,347	$ (32,395)	$ (574,087)	$ 259,348
Balance (in shares) at Sep. 28, 2019	48,306,412
Common stock, par value (in dollars per share)					$ 0.01

Consolidated statements of sh_2

Consolidated statements of shareholders' equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Sep. 28, 2019	Jun. 29, 2019	Sep. 29, 2018	Jun. 30, 2018
Consolidated statements of shareholders' equity
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Unrealized gain (loss) on financial instruments, taxes	$ (981)	$ (18)	$ 154	$ (566)
Pension liability adjustment, tax provision	$ 30	$ 0	$ 4	$ 39

Description of business and bas

Description of business and basis of presentation	6 Months Ended
	Sep. 28, 2019
Description of business and basis of presentation
Description of business and basis of presentation	1. Description of business and basis of presentation These financial statements should be read in conjunction with the financial statement disclosures in our Annual Report on Form 10-K for the fiscal year ended March 30, 2019, filed with the Securities and Exchange Commission on May 30, 2019 (the “2018 Annual Report on Form 10-K”). The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). We use the same accounting policies in preparing quarterly and annual financial statements, with the exception of lease accounting as discussed further below. All adjustments necessary for a fair presentation of quarterly operating results are reflected herein and are of a normal, recurring nature. Certain items in these consolidated financial statements have been reclassified to conform to the current period presentation. All references herein to “fiscal 2019” refer to the 52-week fiscal year ending March 28, 2020, “fiscal 2018” refer to the 52-week fiscal year ended March 30, 2019, and “fiscal 2017” refer to the 52-week fiscal year ended March 31, 2018. 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. In 2007, The Container Store, Inc. was sold to The Container Store Group, Inc. (the “Company”), a holding company, of which a majority stake was purchased by Leonard Green and Partners, L.P. (“LGP”). On November 6, 2013, the Company completed its initial public offering (the “IPO”). As the majority shareholder, LGP retains a controlling interest in the Company. As of September 28, 2019, The Container Store, Inc. (“TCS”) operates 93 stores with an average size of approximately 25,000 square feet (19,000 selling square feet) in 33 states and the District of Columbia. The Container Store, Inc. also offers all of its products directly to its customers (including business customers), through its website and call center. The Container Store, Inc.’s wholly-owned Swedish subsidiary, Elfa International AB (“Elfa”), designs and manufactures component-based shelving and drawer systems and made-to-measure sliding doors. 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 on a wholesale basis in approximately 30 countries around the world, with a concentration in the Nordic region of Europe. Seasonality The Company’s business is moderately seasonal in nature and, therefore, the results of operations for the twenty-six weeks ended September 28, 2019 are not necessarily indicative of the operating results for the full year. The Company has historically realized a higher portion of net sales, operating income, and cash flows from operations in the fourth fiscal quarter, attributable primarily to the timing and impact of Our Annual elfa ® Sale, which traditionally starts in late December and runs into February. Recent accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , to revise lease accounting guidance. The update requires most leases to be recorded on the balance sheet as a lease liability, with a corresponding right-of-use asset, whereas these leases previously had an off-balance sheet classification. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. The Company adopted this standard in the first quarter of fiscal 2019 and elected certain practical expedients permitted under the transition guidance, including the package of practical expedients; however, the Company did not elect the hindsight practical expedient. Additionally, the Company elected the optional transition method that allowed for a cumulative-effect adjustment in the period of adoption and did not restate prior periods. The adoption of ASU 2016-02 resulted in an increase in total assets and total liabilities of $352,059 at transition. However, the adoption of this standard did not have a material impact on the consolidated statement of operations or the consolidated statement of cash flows. See Note 3 for further discussion on leases. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which is intended to improve and simplify hedge accounting and improve the disclosures of hedging arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company adopted this standard in the first quarter of fiscal 2019. The adoption of this standard did not result in a material impact to the Company’s financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under this ASU, the guidance on share-based payments to nonemployees would be aligned with the requirements for share-based payments granted to employees, with certain exceptions. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. The Company adopted this standard in the first quarter of fiscal 2019. The adoption of this standard did not result in a material impact to the Company’s financial statements. In July 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 changes how to recognize expected credit losses on financial assets. The standard requires a more timely recognition of credit losses on loans and other financial assets and also provides additional transparency about credit risk. The current The adoption of this standard is not expected to result in a material impact to the Company’s financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification (“ASC”) 350-40 to determine which implementation costs to capitalize as assets. A customer’s accounting for the costs of the hosting component of the arrangement are not affected by the new guidance. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The adoption of this standard is not expected to result in a material impact to the Company’s financial statements.

Detail of certain balance sheet

Detail of certain balance sheet accounts	6 Months Ended
	Sep. 28, 2019
Detail of certain balance sheet accounts
Detail of certain balance sheet accounts	2. Detail of certain balance sheet accounts September 28, March 30, September 29, 2019 2019 2018 Accounts receivable, net: Trade receivables, net $ 16,203 $ 16,730 $ 15,789 Credit card receivables 7,930 7,244 7,472 Other receivables 1,897 1,594 2,139 $ 26,030 $ 25,568 $ 25,400 Inventory: Finished goods $ 128,095 $ 103,774 $ 105,355 Raw materials 4,532 4,282 4,904 Work in progress 573 594 542 $ 133,200 $ 108,650 $ 110,801 Accrued liabilities: Accrued payroll, benefits and bonuses $ 17,615 $ 19,771 $ 19,810 Unearned revenue 13,874 10,744 10,064 Accrued transaction and property tax 12,800 12,249 10,805 Gift cards and store credits outstanding 8,945 8,777 8,406 Accrued lease liabilities — 4,882 4,573 Accrued interest 1,602 209 966 Other accrued liabilities 10,686 10,531 9,575 $ 65,522 $ 67,163 $ 64,199 Contract balances as a result of transactions with customers primarily consist of trade receivables included in Accounts receivable, net, Unearned revenue included in Accrued liabilities, and Gift cards and store credits outstanding included in Accrued liabilities in the Company's Consolidated Balance Sheets provided above. Unearned revenue was $10,744 as of March 30, 2019, and $10,144 was subsequently recognized into revenue for the twenty-six weeks ended September 28, 2019. Gift cards and store credits outstanding was $8,777 as of March 30, 2019, and $1,924 was subsequently recognized into revenue for the twenty-six weeks ended September 28, 2019. See Note 10 for disaggregated revenue disclosures.

Leases

Leases	6 Months Ended
	Sep. 28, 2019
Leases
Leases	3. Leases We conduct all of our U.S. operations from leased facilities that include corporate headquarters, warehouse facilities, and 93 store locations. The corporate headquarters, warehouse facilities, and stores are under operating leases that will expire over the next 1 to 20 years. We also lease computer hardware under operating leases that expire over the next few years. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. The Company also has finance leases at our Elfa segment which are immaterial. Lease expense on operating leases is recorded on a straight‑line basis over the term of the lease, commencing on the date the Company takes possession of the leased property and is recorded in selling, general and administrative expenses (“SG&A”). We consider lease payments that cannot be predicted with reasonable certainty upon lease commencement to be variable lease payments, which are recorded as incurred each period and are excluded from our calculation of lease liabilities. Our variable lease payments include lease payments that are based on a percentage of sales. Upon lease commencement, we recognize the lease liability measured at the present value of the fixed future minimum lease payments. We have elected the practical expedient to not separate lease and non-lease components. Therefore, lease payments included in the measurement of the lease liability include all fixed payments in the lease arrangement. We record a right-of-use asset for an amount equal to the lease liability, increased for any prepaid lease costs and initial direct costs and reduced by any lease incentives. We remeasure the lease liability and right-of-use asset when a change to our future minimum lease payments occurs. Key assumptions and judgments included in the determination of the lease liability include the discount rate applied to present value the future lease payments and the exercise of renewal options. Many of our leases contain renewal options. The option periods are generally not included in the lease term used to measure our lease liabilities and right-of-use assets upon commencement as exercise of the options is not reasonably certain. We remeasure the lease liability and right-of-use asset when we are reasonably certain to exercise a renewal option. Discount Rate Our leases do not provide information about the rate implicit in the lease. Therefore, we utilize an incremental borrowing rate to calculate the present value of our future lease obligations. The incremental borrowing rate represents the rate of interest we would have to pay on a collateralized borrowing, for an amount equal to the lease payments, over a similar term and in a similar economic environment. The components of lease costs for the thirteen and twenty-six weeks ended September 28, 2019 were as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended Operating lease costs $ 22,639 $ 45,000 Variable lease costs 160 632 Total lease costs $ 22,799 $ 45,632 We do not have sublease income and do not recognize lease assets or liabilities for short-term leases, defined as operating leases with initial terms of less than 12 months. Our short-term lease costs were not material for the twenty-six weeks ended September 28, 2019. Supplemental cash flow information related to our leases for the thirteen and twenty-six weeks ended September 28, 2019 were as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 22,349 $ 44,493 Additions to right-of-use assets $ 23,569 $ 39,134 Weighted average remaining operating lease term and incremental borrowing rate as of September 28, 2019 were as follows: Weighted average remaining lease term (years) Weighted average incremental borrowing rate % As of September 28, 2019, future minimum lease payments under our operating lease liabilities were as follows: Operating leases Within 1 year (remaining) $ 46,133 2 years 92,484 3 years 78,689 4 years 68,494 5 years 60,567 Thereafter 198,216 Total lease payments $ 544,583 Less amount representing interest (149,317) Total lease liability $ 395,266 Less current lease liability (61,663) Total noncurrent lease liability $ 333,603

Net income (loss) per common sh

Net income (loss) per common share	6 Months Ended
	Sep. 28, 2019
Net loss per common share
Net loss per common share	4. Net income (loss) per common share Basic net income (loss) per common share is computed as net income (loss) divided by the weighted-average number of common shares for the period. Net income (loss) per common share – diluted is computed as net income (loss) divided by the weighted-average number of common shares for the period plus common stock equivalents consisting of shares subject to stock-based awards with exercise prices less than or equal to the average market price of the Company’s common stock for the period, to the extent their inclusion would be dilutive. Potentially dilutive securities are excluded from the computation of net income (loss) per common share – diluted if their effect is anti-dilutive. The following is a reconciliation of net income (loss) and the number of shares used in the basic and diluted net income (loss) per common share calculations: Thirteen Weeks Ended Twenty-Six Weeks Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Numerator: Net income (loss) $ 3,646 $ 3,241 $ (453) $ (3,523) Denominator: Weighted-average common shares — basic 48,291,643 48,138,907 48,261,395 48,138,907 Options and other dilutive securities 125,831 380,259 — — Weighted-average common shares — diluted 48,417,474 48,519,166 48,261,395 48,138,907 Net income (loss) per common share — basic and diluted $ 0.08 $ 0.07 $ (0.01) $ (0.07) Antidilutive securities not included: Stock options outstanding 2,388,222 2,350,339 2,420,176 2,637,068 Nonvested restricted stock awards 202,376 14,492 275,489 120,709

Income taxes

Income taxes	6 Months Ended
	Sep. 28, 2019
Income taxes
Income taxes	5. Income taxes The provision for income taxes in the thirteen weeks ended September 28, 2019 was $1,337 as compared to $1,417 in the thirteen weeks ended September 29, 2018. The effective tax rate for the thirteen weeks ended September 28, 2019 was 26.8%, as compared to 30.4% in the thirteen weeks ended September 29, 2018. During the thirteen weeks ended September 28, 2019, the effective tax rate rose above the U.S. statutory rate of 21% primarily due to U.S. state income taxes, as well as the impact of the global intangible low-taxed income (“GILTI”) provision from the Tax Cuts and Jobs Act (the “Tax Act”) enacted in fiscal 2017 and the officer compensation limitation provision from the Tax Act. During the thirteen weeks ended September 29, 2018, the effective tax rate rose above the U.S. statutory rate primarily due to the impact of the GILTI provision and the officer compensation limitation provision from the Tax Act, and U.S. state income taxes . The benefit for income taxes in the twenty-six weeks ended September 28, 2019 was $458 as compared to $2,063 in the twenty-six weeks ended September 29, 2018. The effective tax rate for the twenty-six weeks ended September 28, 2019 was 50.3%, as compared to 36.9% in the twenty-six weeks ended September 29, 2018. During the twenty-six weeks ended September 28, 2019, the effective tax rate rose above the U.S. statutory rate of 21% primarily due to the impact of U.S. state income taxes, as well as the GILTI provision from the Tax Act and the officer compensation limitation provision from the Tax Act enacted in fiscal 2017. During the twenty-six weeks ended September 29, 2018, the effective tax rate rose above the U.S. statutory rate due to the recognition of a $604 tax benefit for the remeasurement of deferred tax balances as a result of a change in the Swedish tax rate combined with a year-to-date pre-tax loss, as well as the impact of the GILTI provision and the officer compensation limitation provision from the Tax Act, and U.S. state income taxes .

Commitments and contingencies

Commitments and contingencies	6 Months Ended
	Sep. 28, 2019
Commitments and contingencies
Commitments and contingencies	6. Commitments and contingencies In connection with insurance policies and other contracts, the Company has outstanding standby letters of credit totaling $4,235 as of September 28, 2019. The Company is subject to ordinary litigation and routine reviews by regulatory bodies that are incidental to its business, none of which is expected to have a material adverse effect on the Company’s financial condition, results of operations, or cash flows on an individual basis or in the aggregate.

Accumulated other comprehensive

Accumulated other comprehensive loss	6 Months Ended
	Sep. 28, 2019
Accumulated other comprehensive loss
Accumulated other comprehensive loss	7. Accumulated other comprehensive loss Accumulated other comprehensive loss (“AOCL”) consists of changes in our foreign currency forward contracts, pension liability adjustment, and foreign currency translation. The components of AOCL, net of tax, are shown below for the twenty-six weeks ended September 28, 2019: Foreign currency Pension Foreign hedge liability currency instruments adjustment translation Total Balance at March 30, 2019 $ (967) $ (1,833) $ (23,332) $ (26,132) Other comprehensive (loss) income before reclassifications, net of tax (3,262) 123 (3,457) (6,596) Amounts reclassified to earnings, net of tax 333 — — 333 Net current period other comprehensive (loss) income (2,929) 123 (3,457) (6,263) Balance at September 28, 2019 $ (3,896) $ (1,710) $ (26,789) $ (32,395) Amounts reclassified from AOCL to earnings 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 8.

Foreign currency forward contra

Foreign currency forward contracts	6 Months Ended
	Sep. 28, 2019
Foreign currency forward contracts.
Foreign currency forward contracts	8. Foreign currency forward contracts The Company’s international operations and purchases of inventory products from foreign suppliers are subject to certain opportunities and risks, including foreign currency fluctuations. In the TCS segment, we utilize foreign currency forward contracts in Swedish krona to stabilize our retail gross margins and to protect our domestic operations from downward currency exposure by hedging purchases of inventory from our wholly-owned subsidiary, Elfa. Forward contracts in the TCS segment are designated as cash flow hedges, as defined by ASC 815. In the Elfa segment, we utilize foreign currency forward contracts to hedge purchases, primarily of raw materials, that are transacted in currencies other than Swedish krona, which is the functional currency of Elfa. Forward contracts in the Elfa segment are economic hedges and are not designated as cash flow hedges as defined by ASC 815. During the twenty-six weeks ended September 28, 2019 and September 29, 2018, the TCS segment used forward contracts for 100% of inventory purchases in Swedish krona. Generally, the Company’s foreign currency forward contracts have terms from 1 to 12 months and require the Company to exchange currencies at agreed-upon rates at settlement. The counterparties to the contracts consist of a limited number of major domestic and international financial institutions. The Company does not hold or enter into financial instruments for trading or speculative purposes. The Company records its foreign currency forward contracts on a gross basis and generally does not require collateral from these counterparties because it does not expect any losses from credit exposure. The Company records all foreign currency forward contracts on its consolidated balance sheet at fair value. The Company accounts for its foreign currency hedging instruments in the TCS segment as cash flow hedges, as defined. Changes in the fair value of the foreign currency hedging instruments that are considered to be effective, as defined, are recorded in other comprehensive (loss) income until the hedged item (inventory) is sold to the customer, at which time the deferred gain or loss is recognized through cost of sales. Any portion of a change in the foreign currency hedge instrument’s fair value that is considered to be ineffective, as defined, or that the Company has elected to exclude from its measurement of effectiveness, is immediately recorded in earnings as cost of sales. The Company assessed the effectiveness of the foreign currency hedge instruments and determined the foreign currency hedge instruments were highly effective during the twenty-six weeks ended September 28, 2019 and September 29, 2018. Forward contracts not designated as hedges in the Elfa segment are adjusted to fair value as SG&A on the consolidated statements of operations; however, during the twenty-six weeks ended September 28, 2019, the Company did not recognize any amount associated with the change in fair value of forward contracts not designated as hedging instruments, as the Company had none of these instruments outstanding. The Company had a $3,896 loss in accumulated other comprehensive loss related to foreign currency hedge instruments at September 28, 2019, of which $776 represents an unrealized loss for settled foreign currency hedge instruments related to inventory on hand as of September 28, 2019. The Company expects the unrealized loss of $776, net of taxes, to be reclassified into earnings over the next 12 months as the underlying inventory is sold to the end customer. The change in fair value of the Company’s foreign currency hedge instruments that qualify as cash flow hedges and are included in accumulated other comprehensive loss, net of taxes, are presented in Note 7 of these financial statements.

Fair value measurements

Fair value measurements	6 Months Ended
	Sep. 28, 2019
Fair value measurements
Fair value measurements	9. Fair value measurements Under GAAP, the Company is required to a) measure certain assets and liabilities at fair value or b) disclose the fair values of certain assets and liabilities recorded at cost. Accounting standards define fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. Fair value is calculated assuming the transaction occurs in the principal or most advantageous market for the asset or liability and includes consideration of non-performance risk and credit risk of both parties. Accounting standards pertaining to fair value establish a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value. These tiers include: · Level 1—Valuation inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. · Level 2—Valuation inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3—Valuation inputs are unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are determined using model-based techniques that include option pricing models, discounted cash flow models and similar techniques. As of September 28, 2019, March 30, 2019 and September 29, 2018, the Company held certain items that are required to be measured at fair value on a recurring basis. These included the nonqualified retirement plan, which consists of investments purchased by employee contributions to retirement savings accounts. The fair value amount of the nonqualified retirement plan is measured at fair value using the net asset value per share practical expedient, and therefore, is not classified in the fair value hierarchy. The Company also considers counterparty credit risk and its own credit risk in its determination of all estimated fair values. The Company has consistently applied these valuation techniques in all periods presented and believes it has obtained the most accurate information available for the types of contracts it holds. The following items are measured at fair value on a recurring basis, subject to the disclosure requirements of ASC 820, Fair Value Measurements : September 28, March 30, September 29, Description Balance Sheet Location 2019 2019 2018 Assets Nonqualified retirement plan N/A Other current assets $ 5,747 $ 5,810 $ 6,011 Total assets $ 5,747 $ 5,810 $ 6,011 The fair value of long-term debt was estimated using quoted prices as well as recent transactions for similar types of borrowing arrangements (Level 2 valuations). As of September 28, 2019, March 30, 2019 and September 29, 2018, the estimated fair value of the Company’s long-term debt, including current maturities, was $291,811, $274,753, and $299,137, respectively.

Description of business and b_2

Description of business and basis of presentation (Policies)	6 Months Ended
	Sep. 28, 2019
Description of business and basis of presentation
Recent accounting pronouncements	Recent accounting pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , to revise lease accounting guidance. The update requires most leases to be recorded on the balance sheet as a lease liability, with a corresponding right-of-use asset, whereas these leases previously had an off-balance sheet classification. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. The Company adopted this standard in the first quarter of fiscal 2019 and elected certain practical expedients permitted under the transition guidance, including the package of practical expedients; however, the Company did not elect the hindsight practical expedient. Additionally, the Company elected the optional transition method that allowed for a cumulative-effect adjustment in the period of adoption and did not restate prior periods. The adoption of ASU 2016-02 resulted in an increase in total assets and total liabilities of $352,059 at transition. However, the adoption of this standard did not have a material impact on the consolidated statement of operations or the consolidated statement of cash flows. See Note 3 for further discussion on leases. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which is intended to improve and simplify hedge accounting and improve the disclosures of hedging arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company adopted this standard in the first quarter of fiscal 2019. The adoption of this standard did not result in a material impact to the Company’s financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under this ASU, the guidance on share-based payments to nonemployees would be aligned with the requirements for share-based payments granted to employees, with certain exceptions. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those years. The Company adopted this standard in the first quarter of fiscal 2019. The adoption of this standard did not result in a material impact to the Company’s financial statements. In July 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 changes how to recognize expected credit losses on financial assets. The standard requires a more timely recognition of credit losses on loans and other financial assets and also provides additional transparency about credit risk. The current The adoption of this standard is not expected to result in a material impact to the Company’s financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract , which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification (“ASC”) 350-40 to determine which implementation costs to capitalize as assets. A customer’s accounting for the costs of the hosting component of the arrangement are not affected by the new guidance. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The adoption of this standard is not expected to result in a material impact to the Company’s financial statements.
Seasonality	Seasonality The Company’s business is moderately seasonal in nature and, therefore, the results of operations for the twenty-six weeks ended September 28, 2019 are not necessarily indicative of the operating results for the full year. The Company has historically realized a higher portion of net sales, operating income, and cash flows from operations in the fourth fiscal quarter, attributable primarily to the timing and impact of Our Annual elfa ® Sale, which traditionally starts in late December and runs into February.

Detail of certain balance she_2

Detail of certain balance sheet accounts (Tables)	6 Months Ended
	Sep. 28, 2019
Detail of certain balance sheet accounts
Schedule of detail of certain balance sheet accounts	September 28, March 30, September 29, 2019 2019 2018 Accounts receivable, net: Trade receivables, net $ 16,203 $ 16,730 $ 15,789 Credit card receivables 7,930 7,244 7,472 Other receivables 1,897 1,594 2,139 $ 26,030 $ 25,568 $ 25,400 Inventory: Finished goods $ 128,095 $ 103,774 $ 105,355 Raw materials 4,532 4,282 4,904 Work in progress 573 594 542 $ 133,200 $ 108,650 $ 110,801 Accrued liabilities: Accrued payroll, benefits and bonuses $ 17,615 $ 19,771 $ 19,810 Unearned revenue 13,874 10,744 10,064 Accrued transaction and property tax 12,800 12,249 10,805 Gift cards and store credits outstanding 8,945 8,777 8,406 Accrued lease liabilities — 4,882 4,573 Accrued interest 1,602 209 966 Other accrued liabilities 10,686 10,531 9,575 $ 65,522 $ 67,163 $ 64,199

Leases (Tables)

Leases (Tables)	6 Months Ended
	Sep. 28, 2019
Leases
Schedule of components of lease costs	The components of lease costs for the thirteen and twenty-six weeks ended September 28, 2019 were as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended Operating lease costs $ 22,639 $ 45,000 Variable lease costs 160 632 Total lease costs $ 22,799 $ 45,632
Schedule of supplemental cash flow information	Supplemental cash flow information related to our leases for the thirteen and twenty-six weeks ended September 28, 2019 were as follows: Thirteen Weeks Ended Twenty-Six Weeks Ended Cash paid for amounts included in the measurement of operating lease liabilities $ 22,349 $ 44,493 Additions to right-of-use assets $ 23,569 $ 39,134
Schedule of weighted average remaining operating lease term and incremental borrowing rate	Weighted average remaining operating lease term and incremental borrowing rate as of September 28, 2019 were as follows: Weighted average remaining lease term (years) Weighted average incremental borrowing rate %
Schedule of future minimum lease payments under our operating lease liabilities	As of September 28, 2019, future minimum lease payments under our operating lease liabilities were as follows: Operating leases Within 1 year (remaining) $ 46,133 2 years 92,484 3 years 78,689 4 years 68,494 5 years 60,567 Thereafter 198,216 Total lease payments $ 544,583 Less amount representing interest (149,317) Total lease liability $ 395,266 Less current lease liability (61,663) Total noncurrent lease liability $ 333,603

Net income (loss) per common _2

Net income (loss) per common share (Tables)	6 Months Ended
	Sep. 28, 2019
Net loss per common share
Schedule of reconciliation of net loss and the number of shares used in the basic and diluted net loss per common share calculations:	Thirteen Weeks Ended Twenty-Six Weeks Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Numerator: Net income (loss) $ 3,646 $ 3,241 $ (453) $ (3,523) Denominator: Weighted-average common shares — basic 48,291,643 48,138,907 48,261,395 48,138,907 Options and other dilutive securities 125,831 380,259 — — Weighted-average common shares — diluted 48,417,474 48,519,166 48,261,395 48,138,907 Net income (loss) per common share — basic and diluted $ 0.08 $ 0.07 $ (0.01) $ (0.07) Antidilutive securities not included: Stock options outstanding 2,388,222 2,350,339 2,420,176 2,637,068 Nonvested restricted stock awards 202,376 14,492 275,489 120,709

Accumulated other comprehensi_2

Accumulated other comprehensive loss (Tables)	6 Months Ended
	Sep. 28, 2019
Accumulated other comprehensive loss
Schedule of components of AOCL, net of tax	Foreign currency Pension Foreign hedge liability currency instruments adjustment translation Total Balance at March 30, 2019 $ (967) $ (1,833) $ (23,332) $ (26,132) Other comprehensive (loss) income before reclassifications, net of tax (3,262) 123 (3,457) (6,596) Amounts reclassified to earnings, net of tax 333 — — 333 Net current period other comprehensive (loss) income (2,929) 123 (3,457) (6,263) Balance at September 28, 2019 $ (3,896) $ (1,710) $ (26,789) $ (32,395)

Fair value measurements (Tables

Fair value measurements (Tables)	6 Months Ended
	Sep. 28, 2019
Fair value measurements
Schedule of items measured at fair value on a recurring basis, subject to the disclosure requirements of ASC 820	September 28, March 30, September 29, Description Balance Sheet Location 2019 2019 2018 Assets Nonqualified retirement plan N/A Other current assets $ 5,747 $ 5,810 $ 6,011 Total assets $ 5,747 $ 5,810 $ 6,011

Segment reporting (Tables)

Segment reporting (Tables)	6 Months Ended
	Sep. 28, 2019
Segment reporting
Schedule of segment reporting	Thirteen Weeks Ended September 28, 2019 TCS Elfa Eliminations Total Net sales to third parties $ 221,235 $ 15,197 $ — $ 236,432 Intersegment sales — 20,865 (20,865) — Adjusted EBITDA 18,661 5,950 (2,185) 22,426 Interest expense, net 5,289 113 — 5,402 Assets (1) 1,049,096 125,940 (34,464) 1,140,572 Thirteen Weeks Ended September 29, 2018 TCS Elfa Eliminations Total Net sales to third parties $ 208,915 $ 15,538 $ — $ 224,453 Intersegment sales — 14,650 (14,650) — Adjusted EBITDA 21,228 3,839 (720) 24,347 Interest expense, net 7,295 82 — 7,377 Assets (1) 650,644 104,585 (3,775) 751,454 Twenty-Six Weeks Ended September 28, 2019 TCS Elfa Eliminations Total Net sales to third parties $ 416,311 $ 29,641 $ — $ 445,952 Intersegment sales — 32,415 (32,415) — Adjusted EBITDA 28,896 8,037 (3,864) 33,069 Interest expense, net 10,904 207 — 11,111 Assets (1) 1,049,096 125,940 (34,464) 1,140,572 Twenty-Six Weeks Ended September 29, 2018 TCS Elfa Eliminations Total Net sales to third parties $ 388,997 $ 31,279 $ — $ 420,276 Intersegment sales — 25,045 (25,045) — Adjusted EBITDA 31,332 5,438 (32) 36,738 Interest expense, net 15,140 145 — 15,285 Assets (1) 650,644 104,585 (3,775) 751,454 (1) Tangible assets in the Elfa column are located outside of the United States.
Summary of reconciliation of Adjusted EBITDA by segment to income before taxes	Thirteen Weeks Ended Twenty-Six Weeks Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Income (loss) before taxes $ 4,983 $ 4,658 $ (911) $ (5,586) Add: Depreciation and amortization 8,742 9,128 18,448 18,465 Interest expense, net 5,402 7,377 11,111 15,285 Pre-opening costs (a) 2,331 881 3,506 1,227 Non-cash lease expense (b) (415) (581) (1,177) (1,218) Stock-based compensation (c) 965 769 1,776 1,355 Loss on extinguishment of debt (d) — 2,082 — 2,082 Foreign exchange losses (gains) (e) 14 9 (61) 47 Optimization Plan implementation charges (f) — — — 4,864 Elfa France closure (g) 403 — 403 — Other adjustments (h) 1 24 (26) 217 Adjusted EBITDA $ 22,426 $ 24,347 $ 33,069 $ 36,738 (a) Non-capital expenditures associated with opening new stores, relocating stores, and costs associated with opening the second distribution center, including marketing expenses, travel and relocation costs, and training costs. We adjust for these costs to facilitate comparisons of our performance from period to period. (b) Reflects the extent to which our annual GAAP operating lease expense has been above or below our cash operating lease payments. The amount varies depending on the average age of our lease portfolio (weighted for size), as our GAAP operating lease expense on younger leases typically exceeds our cash operating lease payments, while our GAAP operating lease expense on older leases is typically less than our cash operating lease payments. In the second quarter of fiscal 2019, lease expenses associated with the opening of the second distribution center were excluded from Non-cash lease expense and included in Pre-opening costs. (c) Non-cash charges related to stock-based compensation programs, which vary from period to period depending on volume and vesting timing of awards. We adjust for these charges to facilitate comparisons from period to period. (d) Loss recorded as a result of the amendments made to the Senior Secured Term Loan Facility in September 2018, which we do not consider in our evaluation of our ongoing operations. (e) Realized foreign exchange transactional gains/losses our management does not consider in our evaluation of our ongoing operations. (f) Charges incurred to implement our four-part optimization plan to drive improved sales and profitability, launched during fiscal 2017 (the “Optimization Plan”), which include certain consulting costs recorded in SG&A in the first quarter of fiscal 2018, which we do not consider in our evaluation of ongoing performance. (g) Charges related to the closure of Elfa France operations in the second quarter of fiscal 2019, which we do not consider in our evaluation of ongoing performance . (h) Other adjustments include amounts our management does not consider in our evaluation of our ongoing operations, including certain severance and other charges.

Description of business and b_3

Description of business and basis of presentation (Details)	Sep. 28, 2019ft²storestatecountry
Number of stores | store	93
Average size of stores (in square feet)	25,000
Average selling square feet in stores (in square feet)	19,000
Number of states | state	33
Elfa
Number of countries in which products are sold on wholesale basis | country	30

Description of business and b_4

Description of business and basis of presentation - Leases (Details) $ in Thousands	6 Months Ended
	Sep. 28, 2019USD ($)
Recent accounting pronouncements
Practical expedients, package	true
Hindsight practical expedient	false
Operating Lease, Liability	$ 395,266
Operating Lease, Right-of-Use Asset	362,609
ASU 2016-02 | Adjustment
Recent accounting pronouncements
Operating Lease, Liability	352,059
Operating Lease, Right-of-Use Asset	$ 352,059

Detail of certain balance she_3

Detail of certain balance sheet accounts (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 28, 2019	Mar. 30, 2019	Sep. 29, 2018
Accounts receivable, net:
Trade receivables, net	$ 16,203	$ 16,730	$ 15,789
Credit card receivables	7,930	7,244	7,472
Other receivables	1,897	1,594	2,139
Accounts receivable, net	26,030	25,568	25,400
Inventory:
Finished goods	128,095	103,774	105,355
Raw materials	4,532	4,282	4,904
Work in progress	573	594	542
Inventory	133,200	108,650	110,801
Accrued Liabilities:
Accrued payroll, benefits and bonuses	17,615	19,771	19,810
Unearned revenue	13,874	10,744	10,064
Accrued transaction and property tax	12,800	12,249	10,805
Gift cards and store credits outstanding	8,945	8,777	8,406
Accrued lease liabilities		4,882	4,573
Accrued interest	1,602	209	966
Other accrued liabilities	10,686	10,531	9,575
Accrued liabilities	65,522	$ 67,163	$ 64,199
Revenue recognized included in unearned income	10,144
Revenue recognized included in Gift Cards and Store Credits	$ 1,924

Leases (Details)

Leases (Details)	Sep. 28, 2019store
Leases
Number of store locations	93
Minimum
Leases
Expiration term	1 year
Maximum
Leases
Expiration term	20 years

Components of lease costs (Deta

Components of lease costs (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 28, 2019	Sep. 28, 2019
Lease costs
Operating lease costs	$ 22,639	$ 45,000
Variable lease costs	160	632
Total lease costs	$ 22,799	$ 45,632

Supplemental cash flow informat

Supplemental cash flow information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 28, 2019	Sep. 28, 2019
Leases
Cash paid for amounts included in the measurement of operating lease liabilities	$ 22,349	$ 44,493
Additions to right-of-use assets	$ 23,569	$ 39,134

Weighted average remaining oper

Weighted average remaining operating lease term and incremental borrowing rate (Details)	Sep. 28, 2019
Leases
Weighted average remaining lease term (years)	7 years 2 months 12 days
Weighted average incremental borrowing rate	8.70%

Leases - Future minimum lease p

Leases - Future minimum lease payments (Details) $ in Thousands	Sep. 28, 2019USD ($)
Operating leases
Within 1 year (remaining)	$ 46,133
2 years	92,484
3 years	78,689
4 years	68,494
5 years	60,567
Thereafter	198,216
Total lease payments	544,583
Less amount representing interest	(149,317)
Total lease liability	395,266
Less current lease liability	(61,663)
Total non-current lease liability	$ 333,603

Net income (loss) per common _3

Net income (loss) per common share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Sep. 28, 2019	Jun. 29, 2019	Sep. 29, 2018	Jun. 30, 2018	Sep. 28, 2019	Sep. 29, 2018
Numerator:
Net income (loss)	$ 3,646	$ (4,099)	$ 3,241	$ (6,764)	$ (453)	$ (3,523)
Denominator:
Weighted-average common shares - basic (in shares)	48,291,643		48,138,907		48,261,395	48,138,907
Options and other dilutive securities	125,831		380,259
Weighted Average Number of Shares Outstanding, Diluted, Total	48,417,474		48,519,166		48,261,395	48,138,907
Net income (loss) per common share—basic and diluted	$ 0.08		$ 0.07		$ (0.01)	$ (0.07)
Stock options outstanding
Antidilutive securities not included:
Antidilutive securities	2,388,222		2,350,339		2,420,176	2,637,068
Nonvested restricted stock awards
Antidilutive securities not included:
Antidilutive securities	202,376		14,492		275,489	120,709

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Income taxes
Provision (benefit) for income taxes	$ 1,337	$ 1,417	$ (458)	$ (2,063)
Remeasurement of deferred tax balances				$ 604
U.S. federal corporate tax rate	21.00%		21.00%
Effective income tax rate (as a percent)	26.80%	30.40%	50.30%	36.90%

Commitments and contingencies (

Commitments and contingencies (Details) $ in Thousands	Sep. 28, 2019USD ($)
Standby letters of credit
Commitments and contingencies
Amount outstanding	$ 4,235

Accumulated other comprehensi_3

Accumulated other comprehensive loss (Details) $ in Thousands	6 Months Ended
	Sep. 28, 2019USD ($)
Rollforward of the amounts included in AOCI, net of taxes
Balance beginning of period	$ (26,132)
Other comprehensive (loss) income before reclassifications, net of tax	(6,596)
Amounts reclassified to earnings, net of tax	333
Net current period other comprehensive (loss) income	(6,263)
Balance end of period	(32,395)
Pension liability adjustment
Rollforward of the amounts included in AOCI, net of taxes
Balance beginning of period	(1,833)
Other comprehensive (loss) income before reclassifications, net of tax	123
Net current period other comprehensive (loss) income	123
Balance end of period	(1,710)
Foreign currency translation
Rollforward of the amounts included in AOCI, net of taxes
Balance beginning of period	(23,332)
Other comprehensive (loss) income before reclassifications, net of tax	(3,457)
Net current period other comprehensive (loss) income	(3,457)
Balance end of period	(26,789)
Foreign currency hedge instruments
Rollforward of the amounts included in AOCI, net of taxes
Balance beginning of period	(967)
Other comprehensive (loss) income before reclassifications, net of tax	(3,262)
Amounts reclassified to earnings, net of tax	333
Net current period other comprehensive (loss) income	(2,929)
Balance end of period	$ (3,896)

Foreign currency forward cont_2

Foreign currency forward contracts (Details) - USD ($) $ in Thousands	6 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Purchase of inventory from use of forward contracts in Swedish krona (as a percent)	100.00%	100.00%
Foreign currency forward contracts | Not Designated as Hedging Instrument
Loss associated with forward contracts not designated as hedge instruments	$ 0
Foreign currency hedge instruments | Designated as Hedging Instrument | Cash Flow Hedging
Unrealized loss for settled foreign currency hedge instruments	(776)
Unrealized loss to be reclassified into earnings over the next 12 months	(776)
Loss in accumulated other comprehensive loss related to foreign currency hedge instruments	$ (3,896)
Minimum | Foreign currency forward contracts
Term of contract	1 month	1 month
Maximum | Foreign currency forward contracts
Term of contract	12 months	12 months

Fair value measurements (Detail

Fair value measurements (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Mar. 30, 2019	Sep. 29, 2018
Fair value
Liabilities
Estimated fair value of long-term debt, including current maturities	$ 291,811	$ 274,753	$ 299,137
Recurring
Assets
Total assets	5,747	5,810	6,011
Recurring | Other current assets
Assets
Nonqualified retirement plan	$ 5,747	$ 5,810	$ 6,011

Segment reporting - (Details)

Segment reporting - (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 28, 2019USD ($)country	Sep. 29, 2018USD ($)	Sep. 28, 2019USD ($)segmentcountry	Sep. 29, 2018USD ($)	Mar. 30, 2019USD ($)
Segment reporting
Number of reportable segments | segment			2
Segment reporting
Sales	$ 236,432	$ 224,453	$ 445,952	$ 420,276
Adjusted EBITDA	22,426	24,347	33,069	36,738
Interest expense, net	5,402	7,377	11,111	15,285
Assets	$ 1,140,572	751,454	$ 1,140,572	751,454	$ 748,744
Elfa
Segment reporting
Number of countries in which products are sold on wholesale basis | country	30		30
Operating segments | TCS
Segment reporting
Sales	$ 221,235	208,915	$ 416,311	388,997
Adjusted EBITDA	18,661	21,228	28,896	31,332
Interest expense, net	5,289	7,295	10,904	15,140
Assets	1,049,096	650,644	1,049,096	650,644
Operating segments | Elfa
Segment reporting
Sales	15,197	15,538	29,641	31,279
Adjusted EBITDA	5,950	3,839	8,037	5,438
Interest expense, net	113	82	207	145
Assets	125,940	104,585	125,940	104,585
lntersegment
Segment reporting
Sales	(20,865)	(14,650)	(32,415)	(25,045)
Adjusted EBITDA	(2,185)	(720)	(3,864)	(32)
Assets	(34,464)	(3,775)	(34,464)	(3,775)
lntersegment | Elfa
Segment reporting
Sales	$ 20,865	$ 14,650	$ 32,415	$ 25,045

Segment reporting - Reconciliat

Segment reporting - Reconciliation of EBITDA (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Segment reporting
Income before taxes	$ 4,983	$ 4,658	$ (911)	$ (5,586)
Depreciation and amortization	8,742	9,128	18,448	18,465
Interest expense, net	5,402	7,377	11,111	15,285
Pre-opening costs	2,331	881	3,506	1,227
Non-cash lease expense	(415)	(581)	(1,177)	(1,218)
Stock-based compensation	965	769	1,776	1,355
Loss on extinguishment of debt		2,082		2,082
Foreign exchange (gains) losses	14	9	(61)	47
Optimization Plan implementation charges				4,864
Elfa France closure	403		403
Other adjustments	1	24	(26)	217
Total Adjusted EBITDA	22,426	24,347	33,069	36,738
Operating segments | TCS
Segment reporting
Interest expense, net	5,289	7,295	10,904	15,140
Total Adjusted EBITDA	18,661	21,228	28,896	31,332
Operating segments | Elfa
Segment reporting
Interest expense, net	113	82	207	145
Total Adjusted EBITDA	5,950	3,839	8,037	5,438
lntersegment
Segment reporting
Total Adjusted EBITDA	$ (2,185)	$ (720)	$ (3,864)	$ (32)