Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 03, 2021 | May 28, 2021 | Sep. 25, 2020 | |
Document and Entity Information | |||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-36161 | ||
Entity Incorporation, State or Country Code | DE | ||
ICFR Auditor Attestation Flag | true | ||
Entity Tax Identification Number | 26-0565401 | ||
Entity Address, Address Line One | 500 Freeport Parkway | ||
Entity Address, City or Town | Coppell | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75019 | ||
City Area Code | 972 | ||
Local Phone Number | 538-6000 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | TCS | ||
Security Exchange Name | NYSE | ||
Entity Registrant Name | Container Store Group, Inc. | ||
Entity Central Index Key | 0001411688 | ||
Current Fiscal Year End Date | --04-03 | ||
Document Fiscal Year Focus | 2020 | ||
Document Type | 10-K | ||
Document Period End Date | Apr. 3, 2021 | ||
Entity Interactive Data Current | Yes | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 128,214,875 | ||
Common Stock Outstanding | 50,491,482 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Apr. 03, 2021 | Mar. 28, 2020 |
Current assets: | ||
Cash | $ 17,687 | $ 67,755 |
Accounts receivable, net | 28,949 | 24,721 |
Inventory | 130,619 | 124,207 |
Prepaid expenses | 11,429 | 8,852 |
Income taxes receivable | 93 | 4,724 |
Other current assets | 14,547 | 11,907 |
Total current assets | 203,324 | 242,166 |
Noncurrent assets: | ||
Property and equipment, net | 131,884 | 147,540 |
Noncurrent operating lease assets | 307,147 | 347,170 |
Goodwill | 202,815 | 202,815 |
Trade names | 227,669 | 222,769 |
Deferred financing costs, net | 255 | 170 |
Noncurrent deferred tax assets, net | 2,305 | 2,311 |
Other assets | 3,070 | 1,873 |
Total noncurrent assets | 875,145 | 924,648 |
Total assets | 1,078,469 | 1,166,814 |
Current liabilities: | ||
Accounts payable | 68,546 | 53,647 |
Accrued liabilities | 86,551 | 66,046 |
Revolving lines of credit | 9,050 | |
Current portion of long-term debt | 2,166 | 6,952 |
Current operating lease liabilities | 50,847 | 62,476 |
Income taxes payable | 6,803 | |
Total current liabilities | 214,913 | 198,171 |
Noncurrent liabilities: | ||
Long-term debt | 163,818 | 317,485 |
Noncurrent operating lease liabilities | 285,022 | 317,284 |
Noncurrent deferred tax liabilities, net | 48,923 | 50,178 |
Other long-term liabilities | 12,124 | 11,988 |
Total noncurrent liabilities | 509,887 | 696,935 |
Total liabilities | 724,800 | 895,106 |
Commitments and contingencies (Note 12) | ||
Shareholders' equity: | ||
Common stock, $0.01 par value, 250,000,000 shares authorized; 48,838,261 shares issued at April 3, 2021 and 48,316,559 shares issued at March 28, 2020 | 488 | 483 |
Additional paid-in capital | 873,048 | 866,667 |
Accumulated other comprehensive loss | (19,003) | (36,295) |
Retained deficit | (500,864) | (559,147) |
Total shareholders' equity | 353,669 | 271,708 |
Total liabilities and shareholders' equity | $ 1,078,469 | $ 1,166,814 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Apr. 03, 2021 | Mar. 28, 2020 | Mar. 31, 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 | |
Common stock, shares issued | 48,838,261 | 48,316,559 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Consolidated statements of operations | |||
Net sales | $ 990,088 | $ 915,953 | $ 895,093 |
Cost of sales (excluding depreciation and amortization) | 419,611 | 382,488 | 371,410 |
Gross profit | 570,477 | 533,465 | 523,683 |
Selling, general, and administrative expenses (excluding depreciation and amortization) | 426,765 | 440,362 | 430,997 |
Stock-based compensation | 7,823 | 3,110 | 2,846 |
Pre-opening costs | 1,026 | 8,237 | 2,103 |
Depreciation and amortization | 34,731 | 38,638 | 36,305 |
Other expenses | 1,112 | 377 | 177 |
Loss (gain) on disposal of assets | 16 | (2) | (63) |
Income from operations | 99,004 | 42,743 | 51,318 |
Interest expense, net | 17,268 | 21,541 | 27,275 |
Loss on extinguishment of debt | 893 | 2,082 | |
Income before taxes | 80,843 | 21,202 | 21,961 |
Provision for income taxes | 22,560 | 6,715 | 281 |
Net income | $ 58,283 | $ 14,487 | $ 21,680 |
Net income per common share - basic | $ 1.20 | $ 0.30 | $ 0.45 |
Net income per common share - diluted | $ 1.17 | $ 0.30 | $ 0.45 |
Weighted-average common shares - basic (in shares) | 48,537,883 | 48,819,783 | 48,139,929 |
Weighted-average common shares - diluted (in shares) | 49,712,637 | 48,964,564 | 48,400,407 |
Consolidated statements of comp
Consolidated statements of comprehensive income (loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Consolidated statements of comprehensive income (loss) | |||
Net income | $ 58,283 | $ 14,487 | $ 21,680 |
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) of $3,071, ($1,587), and ($304) | 8,737 | (4,596) | (865) |
Pension liability adjustment, net of tax provision (benefit) of $53, ($202), and ($11) | 196 | (778) | (40) |
Foreign currency translation adjustment | 8,359 | (4,789) | (7,911) |
Comprehensive income | $ 75,575 | $ 4,324 | $ 12,864 |
Consolidated statements of co_2
Consolidated statements of comprehensive income (loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Consolidated statements of comprehensive income (loss) | |||
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) of $3,071, ($1,587), and ($304) | $ 3,071 | $ (1,587) | $ (304) |
Pension liability adjustment, net of tax provision (benefit) of $53, ($202), and ($11) | $ 53 | $ (202) | $ (11) |
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 | 21,680 | 21,680 | |||
Stock-based compensation | 2,846 | 2,846 | |||
Vesting of restricted stock awards | (1) | (1) | |||
Vesting of restricted stock awards (in shares) | 70,132 | ||||
Taxes related to net share settlement of restricted stock awards | (130) | (130) | |||
Cummulative adjustment for adoption of ASC 606 | 407 | 407 | |||
Foreign currency translation adjustment | (7,911) | (7,911) | |||
Unrealized gain on financial instruments, net of tax provision | (865) | (865) | |||
Pension liability adjustment, net of tax provision | 40 | 40 | |||
Balance at the end of period at Mar. 30, 2019 | $ 481 | 863,978 | (26,132) | (573,634) | 264,693 |
Balance (in shares) at Mar. 30, 2019 | 48,142,319 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 14,487 | 14,487 | |||
Stock-based compensation | 3,110 | 3,110 | |||
Vesting of restricted stock awards | $ 2 | (2) | |||
Vesting of restricted stock awards (in shares) | 174,240 | ||||
Taxes related to net share settlement of restricted stock awards | (420) | (420) | |||
Foreign currency translation adjustment | (4,789) | (4,789) | |||
Unrealized gain on financial instruments, net of tax provision | (4,596) | (4,596) | |||
Pension liability adjustment, net of tax provision | 778 | 778 | |||
Balance at the end of period at Mar. 28, 2020 | $ 483 | 866,667 | (36,295) | (559,147) | $ 271,708 |
Balance (in shares) at Mar. 28, 2020 | 48,316,559 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 58,283 | $ 58,283 | |||
Stock-based compensation | 7,823 | 7,823 | |||
Vesting of restricted stock awards | $ 5 | (5) | 0 | ||
Vesting of restricted stock awards (in shares) | 478,795 | ||||
Taxes related to net share settlement of restricted stock awards | (1,933) | (1,933) | |||
Foreign currency translation adjustment | 8,359 | 8,359 | |||
Unrealized gain on financial instruments, net of tax provision | 8,737 | 8,737 | |||
Pension liability adjustment, net of tax provision | (196) | (196) | |||
Stock option exercises | $ 0 | 496 | $ 496 | ||
Stock option exercises (in shares) | 42,907 | 42,907 | |||
Balance at the end of period at Apr. 03, 2021 | $ 488 | $ 873,048 | $ (19,003) | $ (500,864) | $ 353,669 |
Balance (in shares) at Apr. 03, 2021 | 48,838,261 | ||||
Common stock, par value (in dollars per share) | $ 0.01 |
Consolidated statements of sh_2
Consolidated statements of shareholders' equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 | |
Consolidated statements of shareholders' equity | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Unrealized gain (loss) on financial instruments, net of tax provision | $ 3,071 | $ (1,587) | $ (304) | |
Pension liability adjustment, taxes | $ 53 | $ (202) | $ (11) |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Operating activities | |||
Net income | $ 58,283 | $ 14,487 | $ 21,680 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 34,731 | 38,638 | 36,305 |
Stock-based compensation | 7,823 | 3,110 | 2,846 |
Loss (gain) on disposal of assets | 16 | (2) | (63) |
Loss on extinguishment of debt | 893 | 2,082 | |
Deferred tax (benefit) expense | (4,740) | 148 | (1,563) |
Non-cash interest | 1,870 | 1,862 | 2,351 |
Other | 161 | 316 | (60) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,497) | (1,002) | (1,395) |
Inventory | (2,403) | (17,293) | (14,688) |
Prepaid expenses and other assets | (2,193) | 1,089 | 1,510 |
Accounts payable and accrued liabilities | 35,203 | (3,531) | 13,622 |
Net change in lease assets and liabilities | (4,118) | 49 | |
Income taxes | 11,346 | (6,876) | (2,428) |
Other noncurrent liabilities | 2,912 | (247) | (5,303) |
Net cash provided by operating activities | 138,287 | 30,748 | 54,896 |
Investing activities | |||
Additions to property and equipment | (17,176) | (33,619) | (33,670) |
Proceeds from sale of property and equipment | 65 | 17 | 899 |
Net cash used in investing activities | (17,111) | (33,602) | (32,771) |
Financing activities | |||
Borrowings on revolving lines of credit | 56,132 | 63,603 | 55,201 |
Payments on revolving lines of credit | (66,227) | (59,585) | (49,484) |
Borrowings on long-term debt | 200,000 | 115,000 | 331,500 |
Payments on long-term debt | (355,954) | (54,251) | (356,712) |
Payment of debt issuance costs | (5,579) | (2,384) | |
Payment of taxes with shares withheld upon restricted stock vesting | (931) | (373) | (128) |
Proceeds from the exercise of stock options | 496 | ||
Net cash (used in) provided by financing activities | (172,063) | 64,394 | (22,007) |
Effect of exchange rate changes on cash | 819 | (1,149) | (1,153) |
Net (decrease) increase in cash | (50,068) | 60,391 | (1,035) |
Cash at beginning of fiscal period | 67,755 | 7,364 | 8,399 |
Cash at end of fiscal period | 17,687 | 67,755 | 7,364 |
Cash paid during the year for: | |||
Interest | 16,661 | 18,316 | 24,934 |
Taxes | 16,939 | 13,944 | 11,838 |
Supplemental information for non-cash investing: | |||
Purchases of property and equipment (included in accounts payable) | $ 2,251 | $ 2,471 | $ 1,029 |
Nature of business and summary
Nature of business and summary of significant accounting policies | 12 Months Ended |
Apr. 03, 2021 | |
Nature of business and summary of significant accounting policies | |
Nature of business and summary of significant accounting policies | 1. Nature of business and summary of significant accounting policies Description of business The Container Store, Inc. was founded in 1978 in Dallas, Texas, as a retailer with a mission to provide customers with storage and organization solutions to accomplish their projects through an assortment of innovative products and unparalleled customer service. In 2007, The Container Store, Inc. was sold to The Container Store Group, Inc. (the “Company”), a holding company, of which a majority stake was purchased by Leonard Green and Partners, L.P. (“LGP”), with the remainder held by certain employees of The Container Store, Inc. On November 6, 2013, the Company completed the initial public offering of its common stock (the “IPO”) at which time LGP held a controlling interest in the Company as the majority shareholder. During the third quarter of fiscal 2020, LGP sold some of the common stock of the Company, reducing their ownership to less than 50% of the Company’s outstanding common stock. Although LGP is no longer the majority shareholder, LGP continues to have significant influence over the Company. The Container Store, Inc. consists of our retail stores, website and call center (which includes business sales), as well as our installation services business. As of April 3, 2021, The Container Store, Inc. operated 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 through its website and call center. The Container Store, Inc.’s wholly owned Swedish subsidiary, Elfa International AB (“Elfa”), designs and manufactures component-based shelving and drawer systems and made-to-measure sliding doors that are customizable for any area of the home. elfa® branded products are sold exclusively in the United States in The Container Store® retail stores, website, and call center and Elfa sells to various retailers and distributors primarily in the Nordic region and throughout Europe on a wholesale basis. Business Update Related to Coronavirus The novel coronavirus (“COVID-19”) pandemic had a negative impact on the Company’s first quarter of fiscal 2020 operations and financial results. We experienced significant disruptions in store operations, including the temporary closure of all stores to in-store customer traffic, which adversely affected our business, results of operations and financial condition. We also saw a significant increase in website-generated sales, including direct-to-customer shipping as well as our curbside pick-up. Since the second quarter of fiscal 2020, all 93 stores were open with strict health and safety protocols and adherence to local regulations. As a result, website-generated sales during the remaining quarters of fiscal 2020 moderated in comparison to the first quarter as customers began shifting back to purchasing in-store. We will continue to monitor local, state, and federal mandates related to COVID-19, which may require us to adjust our operations in response to governmental mandates. The Company has taken actions to tightly manage costs, working capital and capital expenditures to preserve the Company’s financial health during the pandemic. In the fourth quarter of fiscal 2019, the company drew down $50,000 under its Revolving Credit Facility (as defined in Note 4) as a proactive measure in light of the COVID-19 pandemic, resulting in an outstanding balance of $78,000, which the Company paid down in the first three quarters of fiscal 2020. In the first quarter of fiscal 2020, the Company furloughed approximately 2,800 employees, primarily in its stores, as well as a portion of corporate employees, and reduced the base salaries of its executive officers and certain employees, due to COVID-19. During fiscal 2020, the majority of our furloughed employees returned and as of April 3, 2021, we no longer have furloughed employees and have returned temporarily reduced base salaries to pre-COVID-19 levels. We continue to prioritize the health and safety of our customers and employees by implementing strict health and safety protocols in our stores, including intensive and frequent cleaning procedures. Furthermore, the CARES Act was signed into law on March 27, 2020 and the Company has implemented applicable benefits of the CARES Act. As such, we have deferred approximately $5,200 of employer payroll taxes as of April 3, 2021 and recorded an employee retention credit of approximately $1,000. Basis of presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). Certain items in these consolidated financial statements have been reclassified to conform to the current period presentation. Basis of consolidation The consolidated financial statements include our accounts and those of the Company’s wholly owned subsidiaries. The Company eliminates all significant intercompany balances and transactions, including intercompany profits, in consolidation. Fiscal year The Company follows a 4-4-5 fiscal calendar, whereby each fiscal quarter consists of thirteen st All references herein to “fiscal 2021” represent the results of the 52-week fiscal year ending April 2, 2022, references to “fiscal 2020” represent the results of the 53 52 52 Management estimates The preparation of the Company’s consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Significant accounting judgments and estimates include fair value estimates for operating lease assets and liabilities, indefinite-lived intangible assets, obsolescence and shrink reserve, assessments of long-lived asset impairments, gift card breakage, and assessment of valuation allowances on deferred tax assets. Revenue recognition Revenue from sales related to retail operations is recognized when the merchandise is delivered to the customer at the point of sale. Revenue from sales that are shipped or delivered directly to customers is recognized upon estimated delivery to the customer and includes applicable shipping or delivery revenue. Revenue from sales that are installed is recognized upon completion of the installation service to the customer and includes applicable installation revenue. Revenue from sales of other services is recognized upon the completion of the service. Revenue from sales related to manufacturing operations is recorded upon shipment. Sales are recorded net of sales taxes collected from customers. A sales return allowance is recorded for estimated returns of merchandise subsequent to the balance sheet date that relate to sales prior to the balance sheet date. The returns allowance is based on historical return patterns and reduces sales and cost of sales, accordingly. Merchandise exchanges of similar product and price are not considered merchandise returns and, therefore, are excluded when calculating the sales returns allowance. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers amounts that reflect the consideration (that is, payment) to which the Company expects to be entitled in exchange for those goods or services. The Company identified certain impacts to our accounting for gift cards given away for promotional or marketing purposes. Under previous GAAP, the value of promotional gift cards was recorded as selling, general, and administrative expense (“SG&A”). The new standard requires these types of gift cards to be accounted for as a reduction of revenue (i.e. a discount). Additionally, ASU 2014-09 disallows the capitalization of direct-response advertising costs which impacts the timing of recognition of certain advertising production and distribution costs. Upon transition on April 1, 2018, the Company recorded a cumulative adjustment to increase retained earnings/(deficit) and decrease accrued liabilities Other current assets Contract Balances Contract balances as a result of transactions with customers primarily consist of trade receivables included in Accounts receivable, net, unearned revenue included in Accrued liabilities, and gift cards and store credits outstanding included in Accrued liabilities in the Company's consolidated balance sheets. See Note 3 for disclosure on the Company's trade receivables, unearned revenue, and gift cards and store credits outstanding with customers as of April 3, 2021 and March 28, 2020. Gift cards and merchandise credits Gift cards are sold to customers in retail stores, through the call center and website, and through certain third parties. We issue merchandise credits in our stores and through our call center. Revenue from sales of gift cards and issuances of merchandise credits is recognized when the gift card is redeemed by the customer, or the likelihood of the gift card being redeemed by the customer is remote (gift card breakage). The gift card breakage rate is determined based upon historical redemption patterns. An estimate of the rate of gift card breakage is applied over the period of estimated performance (48 months as of the end of fiscal 2020, fiscal 2019, and fiscal 2018) and the breakage amounts are included in net sales in the consolidated statement of operations. The Company recorded $1,914, $955, and $942 of gift card breakage in fiscal years 2020, 2019, and 2018, respectively. Cost of sales Cost of sales related to retail operations includes the purchase cost of inventory sold (net of vendor rebates), in-bound freight, as well as inventory loss reserves. Costs incurred to ship or deliver merchandise to customers, as well as direct installation and organization services costs, are also included in cost of sales. Cost of sales from manufacturing operations includes costs associated with production, including materials, wages, other variable production costs, and other applicable manufacturing overhead. Leases Prior to fiscal 2019, rent expense on operating leases, including rent holidays and scheduled rent increases, was recorded on a straight-line basis over the term of the lease, commencing on the date the Company takes possession of the leased property. Rent expense was recorded in SG&A. Pre-opening rent expense was recorded in pre-opening costs in the consolidated statement of operations. The net excess of rent expense over the actual cash paid was recorded as deferred rent in the accompanying consolidated balance sheets. Tenant improvement allowances were also included in the accompanying consolidated balance sheets as deferred rent liabilities and were amortized as a reduction of rent expense over the term of the lease from the possession date. Contingent rental payments, typically based on a percentage of sales, were recognized in rent expense when payment of the contingent rent is probable. Starting in fiscal 2019, upon the adoption of ASU 2016-02, Leases (Topic 842), Advertising All advertising costs of the Company are expensed when incurred, or upon the release of the initial advertisement, except for production costs related to catalogs and direct mailings to customers, which are initially capitalized. Production costs related to catalogs and direct mailings consist primarily of printing and postage and are expensed upon initial mailing to the customer. Advertising costs are recorded in SG&A. Pre-opening advertising costs are recorded in pre-opening costs. Catalog and direct mailings costs capitalized at April 3, 2021 and March 28, 2020, amounted to $48 and $49, respectively, and are recorded in prepaid expenses on the accompanying consolidated balance sheets. Total advertising expense incurred for fiscal years 2020, 2019, and 2018, was $32,088, $39,583, and $34,791, respectively. Pre-opening costs Non-capital expenditures associated with opening new stores, relocating stores, and net costs associated with opening the second distribution center, including marketing expenses, travel and relocation costs are expensed as incurred and are included in pre-opening costs in the consolidated statement of operations. Income taxes We account for income taxes utilizing ASC 740, Income Taxes Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in the tax rate is recognized through continuing operations in the period that includes the enactment of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. We operate in certain jurisdictions outside the United States. ASC 740-30 provides that the undistributed earnings of a foreign subsidiary be accounted for as a temporary difference under the presumption that all undistributed earnings will be distributed to the parent company as a dividend. Sufficient evidence of the intent to permanently reinvest the earnings in the jurisdiction where earned precludes a company from recording the temporary difference. For purposes of ASC 740-30, the Company does not consider the earnings subject to the transition tax and global intangible low-taxed income (“GILTI”) under the Tax Cuts and Jobs Act (the “Tax Act”) permanently reinvested. All other earnings are considered permanently reinvested. Stock-based compensation The Company accounts for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation statements as compensation expense over the requisite service period. For time-based awards, compensation expense is recognized on a straight-line basis, net of forfeitures, over the requisite service period for awards that actually vest. For performance-based awards, compensation expense is estimated based on achievement of the performance condition and is recognized using the accelerated attribution method over the requisite service period for awards that actually vest. Stock-based compensation expense is recorded in the stock-based compensation line in the consolidated statements of operations. ASC 718 also provides guidance for determining whether certain financial instruments awarded in share-based payment transactions are liabilities. The guidance requires that instruments that include conditions other than service, performance or market conditions that affect their fair value, exercisability or vesting be classified as a liability and be remeasured at fair value at each fiscal period. Restricted Stock Awards The fair value of each restricted stock award is determined based on the closing price of the Company’s common stock as reported on The New York Stock Exchange on the grant date. Stock Options The Board determines the exercise price of stock options based on the closing price of the Company’s common stock as reported on The New York Stock Exchange on the grant date. The Company estimates the fair value of each stock option grant on the date of grant based upon the Black-Scholes option-pricing model. This model requires various significant judgmental assumptions in order to derive a final fair value determination for each type of award including: ● Expected Term—The expected term of the options represents the period of time between the grant date of the options and the date the options are either exercised or canceled, including an estimate of options still outstanding. For future grants, we would expect to utilize TCS historical data to calculate the expected term. ● Expected Volatility—The expected volatility incorporates historical and implied volatility of comparable public companies for a period approximating the expected term. For future grants, we would expect to utilize the TCS stock price volatility. ● Expected Dividend Yield—The expected dividend yield is based on the Company’s expectation of not paying dividends on its common stock for the foreseeable future. ● Risk-Free Interest Rate—The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and with a maturity that approximates the expected term. Accounts receivable Accounts receivable consist primarily of trade receivables, receivables from The Container Store, Inc.’s credit card processors for sales transactions, and tenant improvement allowances from The Container Store, Inc.’s landlords in connection with new leases. An allowance for doubtful accounts is established on trade receivables, if necessary, for estimated losses resulting from the inability of customers to make required payments. Factors such as payment terms, historical loss experience, and economic conditions are generally considered in determining the allowance for doubtful accounts. Accounts receivable are presented net of allowances for doubtful accounts of $118 and $326 at April 3, 2021 and March 28, 2020, respectively. Inventories Inventories at retail stores are comprised of finished goods and are valued at the lower of cost or estimated net realizable value, with cost determined on a weighted-average cost method including associated in-bound freight costs. Manufacturing inventories are comprised of raw materials, work in process, and finished goods and are valued on a first-in, first out basis using full absorption accounting which includes material, labor, other variable costs, and other applicable manufacturing overhead. To determine if the value of inventory is recoverable at cost, we consider current and anticipated demand, customer preference and the merchandise age. The significant estimates used in inventory valuation are obsolescence (including excess and slow-moving inventory) and estimates of inventory shrinkage. We adjust our inventory for obsolescence based on historical trends, aging reports, specific identification and our estimates of future retail sales prices. Reserves for shrinkage are estimated and recorded throughout the period as a percentage of cost of sales based on historical shrinkage results and current inventory levels. Actual shrinkage is recorded throughout the year based upon periodic cycle counts. Actual inventory shrinkage can vary from estimates due to factors including the mix of our inventory and execution against loss prevention initiatives in our stores and distribution center. Property and equipment Property and equipment are recorded at cost less accumulated depreciation. Significant additions and improvements are capitalized, and expenditures for maintenance and repairs are expensed. Gains and losses on the disposition of property and equipment are recognized in the period incurred. Depreciation, including amortization of assets recorded under finance lease obligations, is provided using the straight-line method over the estimated useful lives of depreciable assets as follows: Buildings 30 years Furniture, fixtures, and equipment 3 to 10 years Computer software 2 to 5 years Leasehold improvements Shorter of useful life or lease term Finance leases Shorter of useful life or lease term Costs of developing or obtaining software for internal use or developing the Company’s website, such as external direct costs of materials or services and internal payroll costs directly related to the software development projects, are capitalized. For the fiscal years ended April 3, 2021, March 28, 2020, and March 30, 2019, the Company capitalized $2,036, $5,890, and $4,565, respectively, and amortized $4,121, $4,977, and $4,374, respectively, of costs in connection with the development of internally used software. Long-lived assets Long-lived assets, such as property and equipment, lease right-of-use assets, and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. If the sum of the estimated undiscounted future cash flows related to the asset is less than the carrying amount, we recognize a loss equal to the difference between the carrying amount and the fair value, usually determined by the estimated discounted cash flow analysis of the asset. For our TCS segment (see Note 14), we generally evaluate long-lived tangible assets at a store level, or at the lowest level at which independent cash flows can be identified. We evaluate corporate assets or other long-lived assets that are not store-specific at the consolidated level. For our Elfa segment (see Note 14), we evaluate long-lived tangible assets at the segment level. Since there is typically no active market for our long-lived tangible assets, we estimate fair values based on the expected future cash flows. We estimate future cash flows based on store-level historical results, current trends, and operating and cash flow projections. Our estimates are subject to uncertainty and may be affected by a number of factors outside our control, including general economic conditions, such as the duration and severity of the economic downturn caused by the COVID-19 pandemic, and the competitive environment. While we believe our estimates and judgments about future cash flows are reasonable, future impairment charges may be required if the expected cash flow estimates, as projected, do not occur or if events change requiring us to revise our estimates. Foreign currency forward contracts We account for foreign currency forward contracts in accordance with ASC 815, Derivatives and Hedging Generally, the Company’s foreign currency forward contracts have terms from 1 to 12 months and require the Company to exchange currencies at agreed-upon rates at settlement. The Company does not hold or enter into financial instruments for trading or speculative purposes. The Company records all foreign currency forward contracts on its consolidated balance sheet at fair value. The Company records its foreign currency forward contracts on a gross basis. Forward contracts not designated as hedges are adjusted to fair value through income as SG&A. The Company accounts for its foreign currency hedge instruments as cash flow hedges, as defined. Changes in the fair value of the foreign currency hedge instruments that are considered to be effective, as defined, are recorded in other comprehensive income (loss) until the hedged item (inventory) is sold to the customer, at which time the deferred gain or loss is recognized through cost of sales. Any portion of a change in the foreign currency hedge instrument’s fair value that is considered to be ineffective, as defined, or that the Company has elected to exclude from its measurement of effectiveness, is immediately recorded in earnings as cost of sales. Self-insured liabilities We are primarily self-insured for workers’ compensation, employee health benefits and general liability claims. We record self-insurance liabilities based on claims filed, including the development of those claims, and an estimate of claims incurred but not yet reported. Factors affecting these estimates include future inflation rates, changes in severity, benefit level changes, medical costs and claim settlement patterns. Should a different amount of claims occur compared to what was estimated, or costs of the claims increase or decrease beyond what was anticipated, reserves may need to be adjusted accordingly. Self-insurance reserves for employee health benefits, workers’ compensation and general liability claims are recorded in the accrued liabilities line item of the consolidated balance sheet and were $2,341 and $2,532 as of April 3, 2021 and March 28, 2020, respectively. Goodwill We evaluate goodwill annually to determine whether it is impaired. Goodwill is also tested between annual impairment tests if an event occurs or circumstances change that would indicate that the fair value of a reporting unit is less than its carrying amount. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset. If an impairment indicator exists, we test goodwill for recoverability. We have identified two reporting units and we have selected the first day of the fourth fiscal quarter as the date we perform our annual goodwill impairment testing. To test for impairment, we compare the fair value of the reporting unit to its carrying amount. If the fair value of the reporting unit exceeds the carrying amount of the net assets assigned to that unit, goodwill is considered not impaired and we are not required to perform further testing. If the carrying amount of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then we would record an impairment loss equal to the difference. The fair value of each reporting unit is determined by using a discounted cash flow analysis using the income approach, a level 3 valuation (as defined in Note 13). We also use a market approach to compare the estimated fair value to comparable companies, a level 3 input. The determination of fair value requires assumptions and estimates of many critical factors, including among others, our nature and our history, financial and economic conditions affecting us, such as the economic downturn caused by the COVID-19 pandemic, our industry and the general economy, past results, our current operations and future prospects, sales of similar businesses or capital stock of publicly held similar businesses, as well as prices, terms and conditions affecting past sales of similar businesses. Forecasts of future operations are based, in part, on operating results and management’s expectations as to future market conditions. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. If actual results are not consistent with our estimates and assumptions, we may be exposed to future impairment losses that could be material. As of our annual testing date of December 27, 2020, we determined that there was no impairment of goodwill. Future impairment charges could be required if we do not achieve our current net sales and profitability projections or if our weighted average cost of capital increases. Moreover, changes in our market capitalization may impact certain assumptions used in our income approach calculations. Trade names We annually evaluate whether our trade names continue to have an indefinite life. Trade names are reviewed for impairment annually on the first day of the fourth fiscal quarter and may be reviewed more frequently if indicators of impairment are present. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. The impairment review is performed by comparing the carrying amount to the estimated fair value, determined using a discounted cash flow methodology. If the recorded carrying amount of the trade name exceeds its estimated fair value, an impairment charge is recorded to write the trade name down to its estimated fair value. Factors used in the valuation of intangible assets with indefinite lives include, but are not limited to, future revenue growth assumptions, estimated market royalty rates that could be derived from the licensing of our trade names to third parties, and a rate used to discount the estimated royalty cash flow projections. The valuation of trade names requires assumptions and estimates of many critical factors, which are consistent with the factors discussed under “Goodwill” above. Forecasts of future operations are based, in part, on operating results and management’s expectations as to future market conditions. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. If actual results are not consistent with our estimates and assumptions, we may be exposed to future impairment losses that could be material. As discussed above, as of our annual testing date of December 27, 2020, we determined that there was no impairment of trade names. Future impairment charges could be required if we do not achieve our current net sales and profitability projections. Foreign currency translation The Company operates foreign subsidiaries in the following countries: Sweden, Norway, Finland, Denmark, Germany and Poland. The Company’s operations in France were closed in fiscal 2019. The functional currency of the Company’s foreign operations is the applicable country’s currency. All assets and liabilities of foreign subsidiaries and affiliates are translated at year-end rates of exchange. Revenues and expenses of foreign subsidiaries and affiliates are translated at average rates of exchange for the year. Unrealized gains and losses on translation are reported as cumulative translation adjustments through other comprehensive income (loss). The functional currency for the Company’s wholly owned subsidiary, Elfa, is the Swedish krona. During fiscal 2020, the rate of exchange from U.S. dollar to Swedish krona decreased from 9.9 to 8.7. The carrying amounts of assets related to Elfa and subject to currency fluctuation were $116,626 and $105,396 as of April 3, 2021 and March 28, 2020, respectively. Foreign currency realized losses of $200, realized gains of $167, and realized losses of $60, are included in SG&A in the consolidated statements of operations in fiscal 2020, fiscal 2019, and fiscal 2018, respectively. Recent accounting pronouncements In July 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) Leases (Topic 842) 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 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, In March 2020, the FASB issued, ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Goodwill and trade names
Goodwill and trade names | 12 Months Ended |
Apr. 03, 2021 | |
Goodwill and trade names | |
Goodwill and trade names | 2. Goodwill and trade names The estimated goodwill and trade name fair values are computed using estimates as of the measurement date, which is defined as the first day of the fiscal fourth quarter or as of an interim impairment date. The Company makes estimates and assumptions about sales, gross margins, selling, general and administrative percentages and profit margins, based on budgets and forecasts, business plans, economic projections, anticipated future cash flows, and marketplace data. Assumptions are also made for varying perpetual growth rates for periods beyond the long-term business plan period and our estimated weighted average cost of capital. There are inherent uncertainties related to these factors and management’s judgment in applying these factors. Another estimate using different, but still reasonable, assumptions could produce different results. As there are numerous assumptions and estimations utilized to derive the estimated enterprise fair value of each reporting unit, it is possible that actual results may differ from estimated results requiring future impairment charges. As of our annual impairment testing date of December 27, 2020, we determined that there was no impairment of goodwill The Company recorded no impairments during fiscal 2020, fiscal 2019, and fiscal 2018 as a result of the goodwill and trade names impairment tests performed. The changes in the carrying amounts of goodwill and trade names were as follows in fiscal 2020 and fiscal 2019: Goodwill Trade names Balance at March 30, 2019 Gross balance 410,467 256,684 Accumulated impairment charges (207,652) (31,534) Total, net $ 202,815 $ 225,150 Foreign currency translation adjustments — (2,381) Balance at March 28, 2020 Gross balance 410,467 254,303 Accumulated impairment charges (207,652) (31,534) Total, net $ 202,815 $ 222,769 Foreign currency translation adjustments — 4,900 Balance at April 3, 2021 Gross balance 410,467 259,203 Accumulated impairment charges (207,652) (31,534) Total, net $ 202,815 $ 227,669 |
Detail of certain balance sheet
Detail of certain balance sheet accounts | 12 Months Ended |
Apr. 03, 2021 | |
Detail of certain balance sheet accounts | |
Detail of certain balance sheet accounts | 3. Detail of certain balance sheet accounts April 3, March 28, 2021 2020 Accounts receivable, net: Trade receivables, net $ 18,784 $ 20,217 Credit card receivables 8,445 3,326 Other receivables 1,720 1,178 $ 28,949 $ 24,721 Inventory: Finished goods $ 126,311 $ 118,981 Raw materials 3,614 4,523 Work in progress 694 703 $ 130,619 $ 124,207 Property and equipment, net: Land and buildings $ 18,037 $ 16,444 Furniture and fixtures 74,657 75,668 Machinery and equipment 106,819 102,057 Computer software and equipment 106,994 106,153 Leasehold improvements 154,480 163,560 Construction in progress 15,603 7,835 Leased vehicles and other 665 273 477,255 471,990 Less accumulated depreciation and amortization (345,371) (324,450) $ 131,884 $ 147,540 Accrued liabilities: Accrued payroll, benefits and bonuses $ 30,028 $ 19,112 Unearned revenue 19,503 12,976 Accrued transaction and property tax 15,660 12,509 Gift cards and store credits outstanding 9,862 9,208 Accrued interest 95 1,483 Accrued sales returns 3,381 1,650 Other accrued liabilities 8,022 9,108 $ 86,551 $ 66,046 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. Unearned revenue was $12,976 as of March 28, 2020, and $12,632 was subsequently recognized into revenue in fiscal 2020. Gift cards and store credits outstanding was $9,208 as of March 28, 2020, and $2,947 was subsequently recognized into revenue in fiscal 2020. See Note 14 for disaggregated revenue disclosures. |
Long-term debt and revolving li
Long-term debt and revolving lines of credit | 12 Months Ended |
Apr. 03, 2021 | |
Long-term debt and revolving lines of credit | |
Long-term debt and revolving lines of credit | 4. Long-term debt and revolving lines of credit Long-term debt and revolving lines of credit consist of the following: April 3, March 28, 2021 2020 Senior secured term loan facility $ 174,500 $ 252,282 2019 Elfa revolving facilities — 9,050 Obligations under finance leases 335 274 Revolving credit facility — 78,000 Total debt 174,835 339,606 Less current portion (2,166) (16,002) Less deferred financing costs (1) (8,851) (6,119) Total long-term debt $ 163,818 $ 317,485 (1) Represents deferred financing costs related to our Senior Secured Term Loan Facility, which are presented net of long-term debt in the consolidated balance sheet. Scheduled total revolving lines of credit and debt maturities for the fiscal years subsequent to April 3, 2021, are as follows: Within 1 year $ 2,166 2 years 2,097 3 years 2,039 4 years 2,016 5 years 166,517 Thereafter — $ 174,835 Senior Secured Term Loan Facility On April 6, 2012, The Container Store Group, Inc., The Container Store, Inc. and certain of our domestic subsidiaries entered into a credit agreement with JPMorgan Chase Bank, N.A., as Administrative Agent and Collateral Agent, and the lenders party thereto (the “Senior Secured Term Loan Facility”). On November 25, 2020, the Company entered into Amendment No. 7 (the “Seventh Amendment”) to the Senior Secured Term Loan Facility. In connection with the Seventh Amendment, the Company (a) paid down approximately $47,200 of the outstanding loans under the Senior Secured Term Loan Facility, which reduced the aggregate principal amount of the loans under the facility to $200,000 and (b) amended the Senior Secured Term Loan Facility to, among other things, extend the maturity date to January 31, 2026 and impose a 1.00% premium if a voluntary prepayment is made from the proceeds of a repricing transaction within the one year anniversary of the Seventh Amendment. Commencing on March 31, 2021, the Company is required to make quarterly amortization payments of $500 on the term loan facility, with the balloon payment for the remaining balance due on January 31, 2026. Beginning from the date that a compliance certificate is delivered to the administrative agent for the fiscal year ended April 3, 2021, the applicable interest rate margin for LIBOR loans is 4.75%, subject to a LIBOR floor of 1.00%, and 3.75% for base rate loans and, thereafter, may step up to 5.00% for LIBOR Loans and 4.00% for base rate loans unless the consolidated leverage ratio achieved is less than or equal to 2.75 to 1.00. The Company recorded a loss on extinguishment of debt of $893 in the third quarter of fiscal 2020 in conjunction with the Seventh Amendment. In the fourth quarter of fiscal 2020, the Company paid down an additional $25,500 of the outstanding loans under the Senior Secured Term Loan Facility. As of April 3, 2021, the aggregate principal amount in outstanding borrowings under the Senior Secured Term Loan Facility was $165,649, net of deferred financing costs. The Company capitalizes certain costs associated with issuance of various debt instruments. These deferred financing costs are amortized to interest expense on a straight-line method, which is materially consistent with the effective interest method, over the terms of the related debt agreements. In fiscal 2020, the Company capitalized $5,579 of fees associated with the Seventh Amendment, which will be amortized through January 31, 2026. The Senior Secured Term Loan Facility is secured by (a) a first priority security interest in substantially all of our assets (excluding stock in foreign subsidiaries in excess of 65%, assets of non-guarantors and subject to certain other exceptions) (other than the collateral that secures the Revolving Credit Facility described below on a first-priority basis) and (b) a second priority security interest in the assets securing the Revolving Credit Facility described below on a first-priority basis. Obligations under the Senior Secured Term Loan Facility are guaranteed by The Container Store Group, Inc. and each of The Container Store, Inc.’s U.S. subsidiaries. The Senior Secured Term Loan Facility contains a number of covenants that, among other things, restrict our ability, subject to specified exceptions, to incur additional debt; incur additional liens and contingent liabilities; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve ourselves, engage in businesses that are not in a related line of business; make loans, advances or guarantees; engage in transactions with affiliates; and make investments. In addition, the financing agreements contain certain cross-default provisions and also require certain mandatory prepayments of the Senior Secured Term Loan Facility, among these an Excess Cash Flow (as such term is defined in the Senior Secured Term Loan Facility) requirement. As of April 3, 2021, we were in compliance with all Senior Secured Term Loan Facility covenants and no Event of Default (as such term is defined in the Senior Secured Term Loan Facility) had occurred. Revolving Credit Facility On April 6, 2012, The Container Store Group, Inc., The Container Store, Inc. and certain of our domestic subsidiaries entered into an asset-based revolving credit agreement with the lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and Collateral Agent, and Wells Fargo Bank, National Association, as Syndication Agent (as amended, the “Revolving Credit Facility”). On November 25, 2020, the Company entered into Amendment No. 5 (the “Fifth Amendment”). The Fifth Amendment amends the Revolving Credit Facility to extend the maturity date to the earlier of (a) November 25, 2025 and (b) October 31, 2025 if any portion of the Senior Secured Term Loan Facility remains outstanding on such date and the maturity date of the Senior Secured Term Loan Facility is not extended. The aggregate principal amount of the facility is $100,000. Borrowings under the Revolving Credit Facility accrue interest at LIBOR +1.25%. In addition, the Revolving Credit Facility includes an uncommitted incremental revolving facility in the amount of $50,000, which is subject to receipt of lender commitments and satisfaction of specified conditions. The Revolving Credit Facility provides that proceeds are to be used for working capital and other general corporate purposes, and allows for swing line advances of up to $15,000 and the issuance of letters of credit of up to $40,000. The availability of credit at any given time under the Revolving Credit Facility is limited by reference to a borrowing base formula, which is the sum of (i) 90% of eligible credit card receivables and (ii) 90% of the appraised value of eligible inventory; minus (iii) certain availability reserves and (iv) outstanding credit extensions including letters of credit and existing revolving loans. The Revolving Credit Facility is secured by (a) a first-priority security interest in substantially all of our personal property, consisting of inventory, accounts receivable, cash, deposit accounts, and other general intangibles, and (b) a second-priority security interest in the collateral that secures the Senior Secured Term Loan Facility on a first-priority basis, as described above (excluding stock in foreign subsidiaries in excess of 65%, and assets of non-guarantor subsidiaries and subject to certain other exceptions). Obligations under the Revolving Credit Facility are guaranteed by The Container Store Group, Inc. and each of The Container Store, Inc.’s U.S. subsidiaries. The Revolving Credit Facility contains a number of covenants that, among other things, restrict our ability, subject to specified exceptions, to incur additional debt; incur additional liens and contingent liabilities; sell or dispose of assets; merge with or acquire other companies; liquidate or dissolve ourselves, engage in businesses that are not in a related line of business; make loans, advances or guarantees; engage in transactions with affiliates; and make investments. In addition, the financing agreements contain certain cross-default provisions. We are required to maintain a consolidated fixed-charge coverage ratio of 1.0 to 1.0 if excess availability is less than $10,000 at any time. As of April 3, 2021, we were in compliance with all covenants and no Event of Default (as such term is defined in the Revolving Credit Facility) had occurred. Under the Revolving Credit Facility, provided no event of default has occurred and is continuing, The Container Store, Inc. is permitted to pay dividends to The Container Store Group, Inc., if after giving effect to such payments, on a pro forma basis, (i) availability under the Revolving Credit Facility exceeds $15,000 or (ii) availability under the Revolving Credit Facility exceeds $12,500 and the Consolidated Fixed Charge Coverage Ratio (as defined in the Revolving Credit Facility) is not less than 1.10 to 1.0, and pursuant to certain other limited exceptions. There was $96,467 available under the Revolving Credit Facility as of April 3, 2021, based on the factors described above. Maximum borrowings, including letters of credit issued under the Revolving Credit Facility during the period ended April 3, 2021, were $3,170. 2019 Elfa Senior Secured Credit Facilities On March 18, 2019, Elfa refinanced its master credit agreement with Nordea Bank AB entered into on April 1, 2014 and the senior secured credit facilities thereunder, and entered into a new master credit agreement with Nordea Bank Abp, filial i Sverige (“Nordea Bank”), which consists of (i) an SEK 110.0 million (approximately $12,617 as of April 3, 2021) revolving credit facility (the “2019 Original Revolving Facility”), (ii) upon Elfa’s request, an additional SEK 115.0 million (approximately $13,190 as of April 3, 2021) revolving credit facility (the “2019 Additional Revolving Facility” and together with the 2019 Original Revolving Facility, the “2019 Elfa Revolving Facilities”), and (iii) an uncommitted term loan facility in the amount of SEK 25.0 million (approximately $2,867 as of April 3, 2021), which is subject to receipt of Nordea Bank’s commitment and satisfaction of specified conditions (the “Incremental Term Facility”, together with the 2019 Elfa Revolving Facilities, the “2019 Elfa Senior Secured Credit Facilities”). The term for the 2019 Elfa Senior Secured Credit Facilities began on April 1, 2019 and matures on April 1, 2024. Loans borrowed under the 2019 Elfa Revolving Facilities bear interest at Nordea Bank’s base rate +1.40% . Any loan borrowed under the Incremental Term Facility would bear interest at Stibor +1.70% . The 2019 Elfa Senior Secured Credit Facilities are secured by the majority of assets of Elfa. The 2019 Elfa Senior Secured Credit Facilities contains a number of covenants that, among other things, restrict Elfa’s ability, subject to specified exceptions, to incur additional liens, sell or dispose of assets, merge with other companies, engage in businesses that are not in a related line of business and make guarantees. In addition, Elfa is required to maintain (i) a Group Equity Ratio (as defined in the 2019 Elfa Senior Secured Credit Facilities) of not less than 32.5% and (ii) a consolidated ratio of net debt to EBITDA (as defined in the 2019 Elfa Senior Secured Credit Facilities) of less than 3.20. As of April 3, 2021, we were in compliance with all 2019 Elfa Senior Secured Credit Facilities covenants and no Event of Default (as such term is defined in the 2019 Elfa Senior Secured Credit Facilities) had occurred. Deferred financing costs The Company capitalizes certain costs associated with issuance of various debt instruments. These deferred financing costs are amortized to interest expense on a straight-line method, which is materially consistent with the effective interest method, over the terms of the related debt agreements. In fiscal 2020, the Company capitalized $5,579 of fees associated with the Seventh Amendment, which will be amortized through January 31, 2026. Amortization expense of deferred financing costs was $1,870, $1,862, and $2,351, in fiscal 2020, fiscal 2019, and fiscal 2018, respectively. The following is a schedule of amortization expense of deferred financing costs: Senior Secured Term Loan Revolving Facility Credit Facility Total Within 1 year $ 1,830 $ 53 $ 1,883 2 years 1,830 53 1,883 3 years 1,830 53 1,883 4 years 1,830 53 1,883 5 years 1,531 43 1,574 Thereafter — — — $ 8,851 $ 255 $ 9,106 |
Income taxes
Income taxes | 12 Months Ended |
Apr. 03, 2021 | |
Income taxes | |
Income taxes | 5. Income taxes Components of the provision for income taxes are as follows: Fiscal Year Ended April 3, March 28, March 30, 2021 2020 2019 Income before income taxes: U.S. $ 61,703 $ 12,168 $ 14,397 Foreign 19,140 9,034 7,564 $ 80,843 $ 21,202 $ 21,961 Current Federal $ 17,727 $ 2,953 $ (780) State 5,738 1,646 1,464 Foreign 3,835 1,968 1,160 Total current provision 27,300 6,567 1,844 Deferred Federal (3,733) 448 (1,350) State (1,029) (302) (68) Foreign 22 2 (145) Total deferred benefit (4,740) 148 (1,563) Total provision for income taxes $ 22,560 $ 6,715 $ 281 SEC Staff Accounting Bulletin (“SAB”) 118 allowed the Company to record provisional amounts for the impact of the Tax Act during a measurement period not to extend beyond one year from the enactment date to complete the accounting under ASC 740, Income Taxes Effective income tax rate reconciliation Differences between the actual provision for income taxes and the amounts computed by applying the statutory federal tax rate to income before taxes are as follows: Fiscal Year Ended April 3, March 28, March 30, 2021 2020 2019 Provision computed at federal statutory rate $ 16,977 $ 4,453 $ 4,612 Permanent differences 1,326 1,145 1,230 One-time transition tax, net — — (5,903) Change in valuation allowance (25) (46) (116) State income taxes, net of federal benefit 3,720 1,062 817 Effect of foreign income taxes 7 (8) (511) Remeasurement of deferred tax balances — — 303 Other, net 555 109 (151) $ 22,560 $ 6,715 $ 281 Deferred taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Components of deferred tax assets and liabilities as of April 3, 2021 and March 28, 2020, are as follows: April 3, March 28, 2021 2020 Deferred tax assets: Inventory $ 1,560 $ 1,549 Loss and credit carryforwards 4,519 4,542 Stock-based compensation 5,579 5,180 Accrued liabilities 5,786 6,232 Operating lease liabilities 86,635 98,302 Capital assets 106 70 Other — 171 104,185 116,046 Valuation allowance (3,565) (3,479) Total deferred tax assets 100,620 112,567 Deferred tax liabilities: Intangibles (57,789) (56,674) Operating lease assets (77,039) (89,795) Capital assets (10,375) (13,965) Other (2,035) — Total deferred tax liabilities (147,238) (160,434) Net deferred tax liabilities $ (46,618) $ (47,867) The Company has recorded deferred tax assets and liabilities based upon estimates of their realizable value with such estimates based upon likely future tax consequences. In assessing the need for a valuation allowance, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets. If, based on the weight of available evidence, it is more-likely-than-not that a deferred tax asset will not be realized, the Company records a valuation allowance. Foreign and domestic tax credits, net of valuation allowances, totaled approximately $779 at April 3, 2021 and approximately $931 at March 28, 2020. The various credits available at April 3, 2021 expire in the 2026 tax year. The Company had deferred tax assets for foreign and state net operating loss carryovers of $2,408 at April 3, 2021, and approximately $2,279 at March 28, 2020. Valuation allowances of $2,223 and $2,135 were recorded against the net operating loss deferred tax assets at April 3, 2021 and March 28, 2020, respectively. The Company files income tax returns in the U.S. federal jurisdiction, various states and foreign jurisdictions. The Company is currently subject to U.S. federal income tax examinations for the year ended March 30, 2019 and forward. With respect to state and local jurisdictions and countries outside of the United States, the Company and subsidiaries are typically subject to examination for three to six years after the income tax returns have been filed. We operate in certain jurisdictions outside the United States. ASC 740-30 provides that the undistributed earnings of a foreign subsidiary be accounted for as a temporary difference under the presumption that all undistributed earnings will be distributed to the parent company as a dividend. Sufficient evidence of the intent to permanently reinvest the earnings in the jurisdiction where earned precludes a company from recording the temporary difference. For purposes of ASC 740-30, the Company does not consider the earnings subject to the transition tax and GILTI under the Tax Act permanently reinvested. All other earnings are considered permanently reinvested. |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Apr. 03, 2021 | |
Employee benefit plans | |
Employee benefit plans | 6. Employee benefit plans 401(k) Plan Prior to January 1, 2020, employees of the Company had to complete 11 months of service to participate in the Company’s 401(k) Plan. Effective January 1, 2020, all domestic employees of the Company are eligible to participate in the Company’s 401(k) Plan immediately upon date of hire. Participants may contribute up to 80% of annual compensation, limited to nineteen thousand five hundred Nonqualified retirement plan The Company has a nonqualified retirement plan whereby certain employees can elect to defer a portion of their compensation into retirement savings accounts. Under the plan, there is no requirement that the Company match contributions, although the Company may contribute matching payments at its sole discretion. No matching contributions were made to the plan during any of the periods presented. The total fair value of the plan asset recorded in other current assets was $5,707 and $5,066 as of April 3, 2021 and March 28, 2020, respectively. The total carrying value of the plan liability recorded in accrued liabilities was $5,712 and $5,070 as of April 3, 2021 and March 28, 2020, respectively. Pension plan The Company provides pension benefits to the employees of Elfa under collectively bargained pension plans in Sweden, which are recorded in other long-term liabilities. The defined benefit plan provides benefits for participating employees based on years of service and final salary levels at retirement. Certain employees also participate in defined contribution plans for which Company contributions are determined as a percentage of participant compensation. The defined benefit plans are unfunded and approximately 3% of Elfa employees are participants in the defined benefit pension plan. The following is a reconciliation of the changes in the defined benefit obligations, a statement of funded status, and the related weighted-average assumptions: April 3, March 28, 2021 2020 Change in benefit obligation: Projected benefit obligation, beginning of year $ 5,777 $ 4,862 Service cost 85 46 Interest cost 83 119 Benefits paid (186) (145) Actuarial loss (555) 1,240 Exchange rate gain 781 (345) Projected benefit obligation, end of year 5,985 5,777 Fair value of plan assets, end of year — — Underfunded status, end of year $ (5,985) $ (5,777) Discount rate 1.3 % 1.3 % Rate of pay increases 3.0 % 3.0 % The following table provides the components of net periodic benefit cost for fiscal years 2020, 2019, and 2018: Fiscal Year Ended April 3, March 28, March 30, 2021 2020 2019 Components of net periodic benefit cost: Defined benefit plans: Service cost $ 85 $ 46 $ 51 Interest cost 83 119 141 Amortization of unrecognized net loss 141 73 68 Net periodic benefit cost for defined benefit plan 309 238 260 Defined contribution plans 1,686 1,661 2,078 Total net periodic benefit cost $ 1,995 $ 1,899 $ 2,338 |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Apr. 03, 2021 | |
Stock-based compensation | |
Stock-based compensation | 7. Stock-based compensation On October 16, 2013, the Board approved the 2013 Incentive Award Plan (“2013 Equity Plan”). The 2013 Equity Plan provides for grants of nonqualified stock options, incentive stock options, restricted stock, restricted stock units, deferred stock awards, deferred stock units, stock appreciation rights, dividends equivalents, performance awards, and stock payments. On September 12, 2017, the Company's shareholders approved The Container Store Group Inc. Amended and Restated 2013 Incentive Award Plan (the “Amended and Restated Plan”). The Amended and Restated Plan (i) increased the number of shares of common stock available for issuance under such plan from 3,616,570 shares to 11,116,570 shares; (ii) was intended to allow awards under the Amended and Restated Plan to continue to qualify as tax-deductible performance-based compensation under Section 162(m) of the Internal Revenue Code of 1986, as amended, subject to anticipated changes resulting from the Tax Act as described below; and (iii) made certain minor technical changes to the terms of the Amended and Restated Plan. As of April 3, 2021, there are 11,116,570 shares authorized and 6,257,145 shares available for grant under the Amended and Restated Plan. Awards that are surrendered or terminated without issuance of shares are available for future grants. Restricted Stock Awards The Company periodically grants time-based and performance-based restricted stock awards under the Company’s Amended and Restated Plan to certain Directors and employees. The following table summarizes the Company's restricted stock award grants during fiscal 2020, fiscal 2019, and fiscal 2018. Number of Performance- Number of Based Total Number of Performance- Performance- Awards Number of Time-Based Time-Based Based Based that Met Awards Grant Date Awards Vesting Awards Vesting Performance Grant Date Granted Fair Value Granted Period Granted Period Condition June 1, 2018 551,453 $ 7.68 112,553 3 years 438,900 (1) 3 years 205,616 September 12, 2018 73,264 $ 10.92 73,264 3 years — — years — June 1, 2019 605,927 $ 7.03 123,667 3 years 482,260 (2) 3 years 182,520 August 28, 2019 172,792 $ 4.63 172,792 3 years — — years — June 1, 2020 1,358,709 $ 3.03 336,876 3 years 1,021,833 (3) 3 years 981,306 August 26, 2020 203,048 $ 3.94 203,048 3 years — — years — February 1, 2021 50,100 $ 15.51 50,100 3 years — — years — (1) These performance-based restricted stock awards vest based on achievement of fiscal 2018 performance targets and are also subject to time-based vesting requirements. (2) These performance-based restricted stock awards vest based on achievement of fiscal 2019 performance targets and are also subject to time-based vesting requirements. (3) These performance-based restricted stock awards vest based on achievement of fiscal 2020 performance targets and are also subject to time-based vesting requirements. Stock-based compensation cost related to restricted stock awards was $7,470, $2,162 and $1,527 for fiscal 2020, fiscal 2019, and fiscal 2018, respectively. During fiscal 2020, the Company remeasured certain performance-based restricted stock awards at fair value subsequent to the grant date as a result of liability accounting under ASC 718. Unrecognized compensation expense related to outstanding restricted stock awards to employees as of April 3, 2021 is expected to be $3,471 (net of estimated forfeitures) to be recognized on a straight-line basis over a weighted average period of 1.5 The following table summarizes the Company’s restricted stock awards activity during fiscal 2019 and fiscal 2020: Restricted Stock Weighted Average Awards Grant Date Fair Value Nonvested at March 30, 2019 769,858 $ 7.56 Granted 778,719 6.50 Vested (174,239) 7.13 Forfeited (277,597) 7.75 Withheld related to net settlement (55,477) 6.73 Nonvested at March 28, 2020 1,041,264 $ 6.84 Granted 1,611,857 3.53 Vested (478,795) 6.00 Forfeited (404,347) 6.33 Withheld related to net settlement (168,942) 5.51 Nonvested at April 3, 2021 1,601,037 $ 4.03 Stock Options The Company periodically grants nonqualified stock options under the Amended and Restated Plan to non-employee directors of the Company. The stock option grants generally vest in equal annual installments over 3 years. The stock option grants are approved by the Board and consist of nonqualified stock options as defined by the IRS for corporate and individual tax reporting purposes. There were no stock option grants in fiscal 2020, fiscal 2019 or fiscal 2018. In connection with our stock-based compensation plans, the Board considers the estimated fair value of the Company’s stock when setting the stock option exercise price as of the date of each grant. The Board determines the exercise price of stock options based on the closing price of the Company’s common stock as reported on The New York Stock Exchange on the grant date. Stock-based compensation cost is measured at the grant date fair value and is recognized as an expense in the consolidated statements of operations, on a straight-line basis, over the employee’s requisite service period (generally the vesting period of the equity grant). The Company estimates forfeitures for option grants that are not expected to vest. The Company issues new shares of common stock upon stock option exercise. Stock-based compensation cost related to stock options was $354, $949, and $1,319 during fiscal 2020, 2019, and 2018, respectively. As of April 3, 2021, there was zero remaining unrecognized compensation cost (net of estimated forfeitures). The intrinsic value of shares exercised was $882, $0, and $0 during fiscal 2020, fiscal 2019, and fiscal 2018, respectively. The fair value of shares vested was $779, $1,167, and $1,507, during fiscal 2020, fiscal 2019, and fiscal 2018, respectively. The following table summarizes the Company’s stock option activity during fiscal 2020, fiscal 2019, and fiscal 2018: Fiscal Year 2020 2019 2018 Weighted- Weighted- Weighted- Weighted- average Weighted- average Weighted- average average contractual Aggregate average contractual Aggregate average contractual Aggregate exercise term intrinsic exercise term intrinsic exercise term intrinsic price remaining value price remaining value price remaining value Shares (per share) (years) (thousands) Shares (per share) (years) (thousands) Shares (per share) (years) (thousands) Beginning balance 2,559,232 $ 15.30 2,895,539 $ 15.27 3,040,206 $ 15.40 Granted — $ — — $ — — $ — Exercised (42,907) $ 11.57 — $ — — $ — Forfeited (9,130) $ 18.00 (42,864) $ 8.83 (27,793) $ 18.00 Expired (248,154) $ 18.00 (293,443) $ 15.98 (116,874) $ 17.89 Ending balance 2,259,041 $ 15.07 3.26 $ 5,210,006 2,559,232 $ 15.30 4.27 $ — 2,895,539 $ 15.27 5.27 $ 2,460,384 Vested and exercisable at end of year 2,258,933 $ 15.07 3.26 $ 5,210,006 2,389,873 $ 15.69 4.16 $ — 2,428,274 $ 16.49 4.95 $ 1,102,326 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. For future grants, we would expect to utilize TCS historical data to calculate the expected term. ● Expected Volatility — The expected volatility incorporates historical and implied volatility of comparable public companies for a period approximating the expected term. For future grants, we would expect to utilize the TCS stock price volatility. ● 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. |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Apr. 03, 2021 | |
Shareholders' equity | |
Shareholders' equity | 8. Shareholders’ equity Common stock As of April 3, 2021, the Company had 250,000,000 shares of common stock authorized, with a par value of $0.01, of which 48,838,261 were issued. The holders of common stock are entitled to one vote per common share. The holders have no preemptive or other subscription rights and there are no redemptions or sinking fund provisions with respect to such shares. Common stock is subordinate to any preferred stock outstanding with respect to rights upon liquidation and dissolution of the Company. Preferred stock As of April 3, 2021, the Company had 5,000,000 shares of preferred stock authorized, with a par value of $0.01, of which no shares were issued or outstanding . |
Accumulated other comprehensive
Accumulated other comprehensive income | 12 Months Ended |
Apr. 03, 2021 | |
Accumulated other comprehensive income | |
Accumulated other comprehensive income | 9. Accumulated other comprehensive income Accumulated other comprehensive income (“AOCI”) consists of changes in our foreign currency hedge contracts, pension liability adjustment, and foreign currency translation. The components of AOCI, net of tax, were as follows for fiscal 2018, 2019 and 2020: Foreign currency Pension Foreign hedge liability currency instruments adjustment translation Total Balance at March 31, 2018 $ (102) $ (1,793) $ (15,421) $ (17,316) Other comprehensive loss before reclassifications, net of tax (2,197) (92) (7,911) (10,200) Amounts reclassified to earnings, net of tax 1,332 52 — 1,384 Net current period other comprehensive loss (865) (40) (7,911) (8,816) Balance at March 30, 2019 $ (967) $ (1,833) $ (23,332) $ (26,132) Other comprehensive loss before reclassifications, net of tax (6,081) (835) (4,789) (11,705) Amounts reclassified to earnings, net of tax 1,485 57 — 1,542 Net current period other comprehensive loss (4,596) (778) (4,789) (10,163) Balance at March 28, 2020 $ (5,563) $ (2,611) $ (28,121) $ (36,295) Other comprehensive income before reclassifications, net of tax 8,458 86 8,359 16,903 Amounts reclassified to earnings, net of tax 279 110 — 389 Net current period other comprehensive income 8,737 196 8,359 17,292 Balance at April 3, 2021 $ 3,174 $ (2,415) $ (19,762) $ (19,003) The unrecognized net actuarial loss included in accumulated other comprehensive income as of April 3, 2021 and March 28, 2020 was $2,415 and $2,611, respectively. Amounts reclassified from AOCI to earnings for the pension liability adjustment category are generally included in cost of sales and selling, general and administrative expenses in the Company’s consolidated statements of operations. For a description of the Company’s employee benefit plans, refer to Note 6. Amounts reclassified from AOCI to earnings for the foreign currency hedge instruments category are generally included in cost of sales in the Company’s consolidated statements of operations. For a description of the Company’s use of foreign currency forward contracts, refer to Note 10. |
Foreign currency forward contra
Foreign currency forward contracts | 12 Months Ended |
Apr. 03, 2021 | |
Foreign currency forward contracts. | |
Foreign currency forward contracts | 10. Foreign currency forward contracts The Company’s international operations and purchases of its significant product lines from foreign suppliers are subject to certain opportunities and risks, including foreign currency fluctuations. In the TCS segment, we utilize foreign currency forward contracts in Swedish krona to stabilize our retail gross margins and to protect our domestic operations from downward currency exposure by hedging purchases of inventory from our wholly owned subsidiary, Elfa. Forward contracts in the TCS segment are designated as cash flow hedges, as defined by ASC 815. In the Elfa segment, we utilize foreign currency forward contracts to hedge purchases, primarily of raw materials, that are transacted in currencies other than Swedish krona, which is the functional currency of Elfa. Forward contracts in the Elfa segment are economic hedges, and are not designated as cash flow hedges as defined by ASC 815. In fiscal 2020, fiscal 2019, and fiscal 2018, the TCS segment used forward contracts for 93%, 78%, and 80% of inventory purchases in Swedish krona each year, respectively. Generally, the Company’s foreign currency forward contracts have terms from 1 to 12 months and require the Company to exchange currencies at agreed-upon rates at settlement. The counterparties to the contracts consist of a limited number of major domestic and international financial institutions. The Company does not hold or enter into financial instruments for trading or speculative purposes. The Company records its foreign currency forward contracts on a gross basis and generally does not require collateral from these counterparties because it does not expect any losses from credit exposure. The Company records all foreign currency forward contracts on its consolidated balance sheet at fair value. The Company accounts for its foreign currency hedge instruments in the TCS segment as cash flow hedges, as defined. Changes in the fair value of the foreign currency hedge instruments that are considered to be effective, as defined, are recorded in other comprehensive income (loss) until the hedged item (inventory) is sold to the customer, at which time the deferred gain or loss is recognized through cost of sales. Any portion of a change in the foreign currency hedge instrument’s fair value that is considered to be ineffective, as defined, or that the Company has elected to exclude from its measurement of effectiveness, is immediately recorded in earnings as cost of sales. The Company assessed the effectiveness of the foreign currency hedge instruments and determined the foreign currency hedge instruments were highly effective during the fiscal years ended April 3, 2021, March 28, 2020, and March 30, 2019. Forward contracts not designated as hedges in the Elfa segment are adjusted to fair value as SG&A expenses on the consolidated statements of operations. During fiscal 2020, the Company did not recognize any amounts associated with the change in fair value of forward contracts not designated as hedge instruments. The Company had $3,174 in accumulated other comprehensive gain related to foreign currency hedge instruments at April 3, 2021. Settled foreign currency hedge instruments related to inventory on hand as of April 3, 2021 represents $1,025 of accumulated unrealized gain. The Company expects the unrealized gain of $1,025, net of taxes, to be reclassified into earnings over the next 12 months as the underlying inventory is sold to the end customer. The changes in fair value of the Company’s foreign currency hedge instruments that qualify as cash flow hedges and are included in accumulated other comprehensive income (loss), net of taxes, are presented in Note 9 of these financial statements. |
Leases
Leases | 12 Months Ended |
Apr. 03, 2021 | |
Leases | |
Leases | 11. Leases We conduct all of our U.S. operations from leased facilities that include our corporate headquarters, warehouse facilities, and 93 store locations. The corporate headquarters, warehouse facilities, and stores are leased under operating leases that generally expire over the next 1 to 20 years. We also lease computer hardware under operating leases that generally 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 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 of 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. During fiscal 2020, the Company renegotiated terms with landlords as a result of the COVID-19 pandemic, which resulted in the deferral of approximately $11,900 of certain cash lease payments, of which approximately $4,700 remains deferred as of April 3, 2021, and the modification of certain lease terms for a substantial portion of our leased properties. Under ASC 842, changes to lease payments that are not stipulated in the original lease contract are generally accounted for as lease modifications. In April 2020, the FASB issued guidance related to the relief for lease concessions offered as a result of the effects of the COVID-19 pandemic and does not require these concessions to be accounted for in accordance with the lease modification guidance in ASC 842. Under existing lease guidance, the Company would determine, on a lease by lease basis, if a lease concession was the result of a new arrangement with the tenant or if it was under the enforceable rights and obligations within the lease agreement. Under the relief guidance, a company can account for the concessions (i) as if no changes to the existing lease contract were made or (ii) as a variable lease adjustment. The Company did not apply the , 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 fiscal year ended April 3, 2021 and March 28, 2020 were as follows: Fiscal Year Ended April 3, 2021 March 28, 2020 Operating lease costs $ 90,841 $ 90,367 Variable lease costs 1,056 1,243 Total lease costs $ 91,897 $ 91,610 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 fiscal 2020. Supplemental cash flow information related to our leases for the fiscal year ended April 3, 2021 and March 28, 2020 were as follows: Fiscal Year Ended April 3, 2021 March 28, 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 86,720 $ 90,386 Additions to right-of-use assets $ 57,708 $ 52,489 Weighted average remaining operating lease term and incremental borrowing rate as of April 3, 2021 and March 28, 2020 were as follows: Fiscal Year Ended April 3, 2021 March 28, 2020 Weighted average remaining lease term (years) 6.9 7.1 Weighted average incremental borrowing rate 13.5 % 8.8 % As of April 3, 2021, future minimum lease payments under our operating lease liabilities were as follows: Operating leases Within 1 year $ 93,032 2 years 82,545 3 years 75,294 4 years 67,992 5 years 57,906 Thereafter 151,503 Total lease payments $ 528,272 Less amount representing interest (192,403) Total lease liability $ 335,869 Less current lease liability (50,847) Total noncurrent lease liability $ 285,022 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Apr. 03, 2021 | |
Commitments and contingencies | |
Commitments and contingencies | 12. Commitments and contingencies In connection with insurance policies and other contracts, the Company has outstanding standby letters of credit totaling $4,048 as of April 3, 2021. The Company is subject to ordinary litigation and routine reviews by regulatory bodies that are incidental to its business, none of which is expected to have a material adverse effect on the Company’s consolidated financial statements on an individual basis or in the aggregate. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Apr. 03, 2021 | |
Fair value measurements | |
Fair value measurements | 13. Fair value measurements Under U.S. GAAP, the Company is required to a) measure certain assets and liabilities at fair value or b) disclose the fair values of certain assets and liabilities recorded at cost. Accounting standards define fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. Fair value is calculated assuming the transaction occurs in the principal or most advantageous market for the asset or liability and includes consideration of non-performance risk and credit risk of both parties. Accounting standards pertaining to fair value establish a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value. These tiers include: ● Level 1—Valuation inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. ● Level 2—Valuation inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3—Valuation inputs are unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are determined using model-based techniques that include option pricing models, discounted cash flow models and similar techniques. As of April 3, 2021 and March 28, 2020, the Company held certain items that are required to be measured at fair value on a recurring basis. These items included foreign currency forward contracts which the Company uses to stabilize its retail gross margins and to protect its operations from downward currency exposure. These items also included the nonqualified retirement plan, which consists of investments purchased by employee contributions to retirement savings accounts. The fair value amount of the nonqualified retirement plan is measured using the net asset value per share practical expedient, and therefore, is not classified in the fair value hierarchy. The Company also considers counterparty credit risk and its own credit risk in its determination of all estimated fair values. The Company has consistently applied these valuation techniques in all periods presented and believes it has obtained the most accurate information available for the types of contracts it holds. The following items are measured at fair value on a recurring basis, subject to the disclosure requirements of ASC 820, Fair Value Measurements, April 3, March 28, Description Balance Sheet Location 2021 2020 Assets Nonqualified retirement plan N/A Other current assets $ 5,707 $ 5,066 Foreign currency forward contracts Level 2 Other current assets 2,906 — Total assets $ 8,613 $ 5,066 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 April 3, 2021 and March 28, 2020, the estimated fair value of the Company’s long-term debt, including current maturities, was as follows: April 3, March 28, 2021 2020 Senior secured term loan facility $ 174,064 $ 198,041 2019 Elfa revolving facilities — 9,050 Obligations under finance leases 335 274 Revolving credit facility — 78,000 Total fair value of debt $ 174,399 $ 285,365 |
Segment reporting
Segment reporting | 12 Months Ended |
Apr. 03, 2021 | |
Segment reporting | |
Segment reporting | 14. Segment reporting The Company’s reportable segments were determined on the same basis as how management evaluates performance internally by the Chief Operating Decision Maker (“CODM”). The Company has determined that the Chief Executive Officer is the CODM and the Company’s two reportable segments consist of TCS and Elfa. The TCS segment includes the Company’s retail stores, website and call center, as well as the installation services business. The Elfa segment includes the manufacturing business that produces the elfa ® ® The Company has determined that adjusted earnings before interest, tax, depreciation, and amortization (“Adjusted EBITDA”) is the profit or loss measure that the CODM uses to make resource allocation decisions and evaluate segment performance. Adjusted EBITDA assists management in comparing our performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect our core operations and, therefore, are not included in measuring segment performance. Adjusted EBITDA is calculated in accordance with the Senior Secured Term Loan Facility and the Revolving Credit Facility and we define Adjusted EBITDA as net income before interest, taxes, depreciation and amortization, certain non-cash items, and other adjustments that we do not consider in our evaluation of ongoing operating performance from period to period. Fiscal Year Ended April 3, 2021 TCS Elfa Eliminations Total Net sales to third parties $ 923,083 $ 67,005 $ — $ 990,088 Intersegment sales — 62,918 (62,918) — Adjusted EBITDA 126,543 24,865 (885) 150,523 Depreciation and amortization 31,043 3,688 — 34,731 Interest expense, net 16,947 321 — 17,268 Capital expenditures (1) 15,073 2,103 — 17,176 Goodwill 202,815 — — 202,815 Trade names (1) 187,048 40,621 — 227,669 Assets (1) 979,411 106,408 (7,350) 1,078,469 Fiscal Year Ended March 28, 2020 TCS Elfa Eliminations Total Net sales to third parties $ 852,349 $ 63,604 $ — $ 915,953 Intersegment sales — 61,955 (61,955) — Adjusted EBITDA 77,156 16,988 (3,373) 90,771 Depreciation and amortization 34,608 4,030 — 38,638 Interest expense, net 21,200 341 — 21,541 Capital expenditures (1) 30,500 3,119 — 33,619 Goodwill 202,815 — — 202,815 Trade names (1) 187,048 35,721 — 222,769 Assets (1) 1,073,888 99,587 (6,661) 1,166,814 Fiscal Year Ended March 30, 2019 TCS Elfa Eliminations Total Net sales to third parties $ 829,622 $ 65,471 $ — $ 895,093 Intersegment sales — 57,849 (57,849) — Adjusted EBITDA 84,041 12,563 (257) 96,347 Depreciation and amortization 31,924 4,381 — 36,305 Interest expense, net 27,016 259 — 27,275 Capital expenditures (1) 31,176 2,494 — 33,670 Goodwill 202,815 — — 202,815 Trade names (1) 187,048 38,102 — 225,150 Assets (1) 649,351 103,347 (3,954) 748,744 (1) Tangible assets and trade names in the Elfa column are located outside of the United States. A reconciliation of Adjusted EBITDA to income before taxes is set forth below: Fiscal Year Ended April 3, March 28, March 30, 2021 2020 2019 Income before taxes $ 80,843 $ 21,202 $ 21,961 Add: Depreciation and amortization 34,731 38,638 36,305 Interest expense, net 17,268 21,541 27,275 Pre-opening costs (a) 1,026 8,237 2,103 Non-cash lease expense (b) 4,147 (2,169) (1,327) Stock-based compensation (c) 7,823 3,110 2,846 Management transition costs (d) 1,200 — — Loss on extinguishment of debt (e) 893 — 2,082 Foreign exchange losses (gains) (f) 200 (167) 60 Optimization Plan implementation charges (g) — — 4,864 Elfa France closure (h) — 402 — Employee retention credit (i) (1,028) — — COVID-19 costs (j) 2,266 — — Severance and other costs (credits) (k) 1,154 (23) 178 Adjusted EBITDA 150,523 90,771 96,347 (a) Non-capital expenditures associated with opening new stores, relocating stores, and net costs associated with opening the second distribution center, including marketing expenses, travel and relocation 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. Non-cash lease expense increased in fiscal 2020 due to renegotiated terms with landlords due to COVID-19 that resulted in deferral of $11,900 of certain cash lease payments, of which approximately $4,700 remains deferred as of April 3, 2021, and the modification of certain lease terms for a substantial portion of our leased properties. In 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) Costs related to the transition of key executives including signing bonus and relocation expenses recorded as selling, general and administrative expenses, which we do not consider in our evaluation of ongoing performance. (e) Loss recorded as a result of the amendments made to the Senior Secured Term Loan Facility in December 2020 and September 2018, which we do not consider in our evaluation of our ongoing operations . (f) Realized foreign exchange transactional gains/losses our management does not consider in our evaluation of our ongoing operations. (g) Charges incurred to implement our Optimization Plan, which include certain consulting costs recorded in selling, general and administrative expenses, cash severance payments associated with the elimination of certain full-time positions at the TCS segment recorded in other expenses, and cash severance payments associated with organizational realignment at the Elfa segment recorded in other expenses, which we do not consider in our evaluation of ongoing performance. (h) 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. (i) Employee retention credit related to the CARES Act recorded in the third quarter of fiscal 2020 as selling, general and administrative expense which we do not consider in our evaluation of ongoing performance. (j) Includes incremental costs attributable to the COVID-19 pandemic, which consist of hazard pay for distribution center employees in the first quarter of fiscal 2020 and sanitization costs in fiscal 2020, all of which are recorded as selling, general and administrative expenses which we do not consider in our evaluation of ongoing performance. (k) Severance and other credits/costs include amounts our management does not consider in our evaluation of our ongoing operations. The fiscal 2020 amounts include costs primarily incurred in the first and second quarters of fiscal 2020 associated with the reduction in workforce as a result of the COVID-19 pandemic and the related temporary store closures in fiscal 2020. The following table shows sales by merchandise category as a percentage of total net sales for fiscal 2020, fiscal 2019, and fiscal 2018: Fiscal Year Ended April 3, March 28, March 30, 2021 2020 2019 Custom Closets (1) 50 % 51 % 49 % Kitchen and Trash 18 % 14 % 14 % Storage, Long-Term Storage, Shelving 14 % 13 % 14 % Office, Collections, Hooks 8 % 8 % 8 % Bath, Travel, Laundry 5 % 7 % 8 % Gift Packaging, Seasonal, Impulse 4 % 5 % 6 % Other 1 % 2 % 1 % Total 100 % 100 % 100 % (1) Includes elfa ®, Avera® and Laren ® products and installation services, as well as closet lifestyle department products sold by the TCS segment and Elfa segment sales to third parties. |
Net income per common share
Net income per common share | 12 Months Ended |
Apr. 03, 2021 | |
Net income per common share | |
Net income per common share | 15. Net income per common share Basic net income per common share is computed as net income divided by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed as net income divided by the weighted-average number of common shares outstanding for the period plus common stock equivalents consisting of shares subject to stock-based awards with exercise prices less than or equal to the average market price of the Company’s common stock for the period, to the extent their inclusion would be dilutive. Potential dilutive securities are excluded from the computation of diluted net income per share if their effect is anti-dilutive. The following is a reconciliation of net income and the number of shares used in the basic and diluted net income per common share calculations: Fiscal Year Ended April 3, March 28, March 30, 2021 2020 2019 Numerator: Net income $ 58,283 $ 14,487 $ 21,680 Denominator: Weighted-average common shares — basic 48,537,883 48,819,783 48,139,929 Options and other dilutive securities 1,174,754 144,781 260,478 Weighted-average common shares — diluted 49,712,637 48,964,564 48,400,407 Net income per common share — basic $ 1.20 $ 0.30 $ 0.45 Net income per common share — diluted 1.17 0.30 0.45 Antidilutive securities not included: Stock options outstanding 1,941,192 2,389,820 2,436,321 Nonvested restricted stock awards 28,969 148,066 102,725 |
Schedule I-Condensed Financial
Schedule I-Condensed Financial Information of registrant | 12 Months Ended |
Apr. 03, 2021 | |
Schedule I-Condensed Financial Information of registrant | |
Schedule I-Condensed Financial Information of registrant | Schedule I—Condensed Financial Information of registrant The Container Store Group, Inc. (parent company only) Condensed balance sheets April 3, March 28, (in thousands) 2021 2020 Assets Current assets: Accounts receivable from subsidiaries $ 621 $ 1,128 Total current assets 621 1,128 Noncurrent assets: Investment in subsidiaries 353,103 270,635 Total noncurrent assets 353,103 270,635 Total assets $ 353,724 $ 271,763 Liabilities and shareholders' equity Current liabilities: Accounts payable to subsidiaries $ 55 $ 55 Total liabilities 55 55 Shareholders' equity: Common stock 488 483 Additional paid-in capital 873,048 866,667 Retained deficit (519,867) (595,442) Total shareholders' equity 353,669 271,708 Total liabilities and shareholders' equity $ 353,724 $ 271,763 See accompanying notes. Schedule I—The Container Store Group, Inc. (parent company only) Condensed statements of operations Fiscal Year Ended April 3, March 28, March 30, (in thousands) 2021 2020 2019 Net sales — — — Cost of sales (excluding depreciation and amortization) — — — Gross profit — — — Selling, general, and administrative expenses (excluding depreciation and amortization) — — — Stock-based compensation — — — Pre-opening costs — — — Depreciation and amortization — — — Restructuring charges — — — Other expenses — — — (Gain) loss on disposal of assets — — — Income from operations — — — Interest expense — — — Income before taxes and equity in net income of subsidiaries — — — Provision for income taxes — — — Income before equity in net income of subsidiaries — — — Net income of subsidiaries 58,283 14,487 21,680 Net income $ 58,283 $ 14,487 $ 21,680 See accompanying notes. Schedule I—The Container Store Group, Inc. (parent company only) Condensed statements of comprehensive income Fiscal Year Ended April 3, March 28, March 30, (In thousands) 2021 2020 2019 Net income $ 58,283 $ 14,487 $ 21,680 Unrealized gain (loss) on financial instruments, net of tax provision (benefit) of $3,071, ($1,587), and ($304) 8,737 (4,596) (865) Pension liability adjustment, net of tax provision (benefit) of $53, ($202), and ($11) 196 (778) (40) Foreign currency translation adjustment 8,359 (4,789) (7,911) Comprehensive income $ 75,575 $ 4,324 $ 12,864 See accompanying notes. Schedule I—The Container Store Group, Inc. (parent company only) Notes to Condensed Financial Statements (In thousands, except share amounts and unless otherwise stated) April 3, 2021 Note 1: Basis of presentation In the parent-company-only financial statements, The Container Store Group, Inc.’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. The financial statements of the parent company should be read in conjunction with the Company’s consolidated financial statements. A condensed statement of cash flows was not presented because The Container Store Group, Inc. had no cash flow activities during fiscal 2020, fiscal 2019, or fiscal 2018. Note 2: Guarantees and restrictions The Container Store, Inc., a subsidiary of the Company, has $174,500 of long-term debt outstanding under the Senior Secured Term Loan Facility, as of April 3, 2021. Under the terms of the Senior Secured Term Loan Facility, The Container Store Group, Inc. and the domestic subsidiaries of The Container Store, Inc. have guaranteed the payment of all principal and interest. In the event of a default under the Senior Secured Term Loan Facility, The Container Store Group, Inc. and the domestic subsidiaries of The Container Store, Inc. will be directly liable to the debt holders. On November 25, 2020, the Company entered into Amendment No. 7 (the “Seventh Amendment”) to the Senior Secured Term Loan Facility dated as of April 6, 2012. In connection with the Seventh Amendment, The Container Store, Inc. (a) paid down approximately $47,200 of the outstanding loans under the Senior Secured Term Loan Facility, which reduced the aggregate principal amount of the loans under the facility to $200,000 and (b) amended the Senior Secured Term Loan Facility to, among other things, extend the maturity date to January 31, 2026 and impose a 1.00% premium if a voluntary prepayment is made from the proceeds of a repricing transaction within the one year anniversary of the Seventh Amendment. Commencing on March 31, 2021, The Container Store, Inc. is required to make quarterly amortization payments of $500 on the term loan facility, with the balloon payment for the remaining balance due on January 31, 2026. Beginning from the date that a compliance certificate is delivered to the administrative agent for the fiscal year ended April 3, 2021, the applicable interest rate margin for LIBOR loans is 4.75%, subject to a LIBOR floor of 1.00%, and 3.75% for base rate loans and, thereafter, may step up to 5.00% for LIBOR Loans and 4.00% for base rate loans unless the consolidated leverage ratio achieved is less than or equal to 2.75 to 1.00. In the fourth quarter of fiscal 2020, the Company paid down an additional $25,500 of the outstanding loans under the Senior Secured Term Loan Facility. As of April 3, 2021, the aggregate principal amount in outstanding borrowings under the Senior Secured Term Loan Facility was $165,649, net of deferred financing costs. The Container Store, Inc. recorded a loss on extinguishment of debt of $893 in fiscal 2020 in conjunction with the Seventh Amendment. The Senior Secured Term Loan Facility also includes restrictions on the ability of The Container Store Group, Inc. and its subsidiaries to incur additional liens and indebtedness, make investments and dispositions, pay dividends or make other distributions, make loans, prepay certain indebtedness and enter into sale and lease back transactions, among other restrictions. Under the Senior Secured Term Loan Facility, provided no event of default has occurred and is continuing, The Container Store, Inc. is permitted to pay dividends to The Container Store Group, Inc. in an amount not to exceed the sum of $10,000 plus if after giving effect to such dividend on a pro forma basis, the Consolidated Leverage Ratio (as defined in the Senior Secured Term Loan Facility) does not exceed 2.0 to 1.0, the Available Amount (as defined in the Senior Secured Term Loan Facility) during the term of the Senior Secured Term Loan Facility, and pursuant to certain other limited exceptions. The restricted net assets of the Company’s consolidated subsidiaries were $341,169 as of April 3, 2021. As of April 3, 2021, The Container Store, Inc. also has $96,467 of available credit on the Revolving Credit Facility that provides commitments of up to $100,000 for revolving loans and letters of credit. The Container Store Group, Inc. and the domestic subsidiaries of The Container Store, Inc. have guaranteed all obligations under the Revolving Credit Facility. In the event of default under the Revolving Credit Facility, The Container Store Group, Inc. and the domestic subsidiaries of The Container Store, Inc. will be directly liable to the debt holders. The Revolving Credit Facility includes restrictions on the ability of The Container Store Group, Inc. and its subsidiaries to incur additional liens and indebtedness, make investments and dispositions, pay dividends or make other transactions, among other restrictions. On October 8, 2015, The Container Store, Inc. executed an amendment to the Revolving Credit Facility (“Amendment No. 2”). Under the terms of Amendment No. 2, among other items, the maturity date of the loan was extended from April 6, 2017 to the earlier of (x) October 8, 2020 and (y) January 6, 2019, if any of The Container Store, Inc.’s obligations under its term loan credit facility remain outstanding on such date and have not been refinanced with debt that has a final maturity date that is no earlier than April 6, 2019 or subordinated debt. Under the Revolving Credit Facility, provided no event of default has occurred and is continuing, The Container Store, Inc. is permitted to pay dividends to The Container Store Group, Inc., in an amount not to exceed the sum of $10,000 plus if after giving effect to such dividend on a pro forma basis, the Consolidated Fixed Charge Coverage Ratio (as defined in the Revolving Credit Facility) is not less than 1.25 to 1.0, the Available Amount (as defined in the Revolving Credit Facility) during the term of the Revolving Credit Facility, and pursuant to certain other limited exceptions. On November 25, 2020, The Container Store, Inc. also entered into Amendment No. 5 (the “Fifth Amendment”). The Fifth Amendment amends the Revolving Credit Facility to extend the maturity date to the earlier of (a) November 25, 2025 and (b) October 31, 2025 if any portion of the Senior Secured Term Loan Facility remains outstanding on such date and the maturity date of the Senior Secured Term Loan Facility is not extended. |
Nature of business and summar_2
Nature of business and summary of significant accounting policies (Policies) | 12 Months Ended |
Apr. 03, 2021 | |
Nature of business and summary of significant accounting policies | |
Business Update Related to Coronavirus | Business Update Related to Coronavirus The novel coronavirus (“COVID-19”) pandemic had a negative impact on the Company’s first quarter of fiscal 2020 operations and financial results. We experienced significant disruptions in store operations, including the temporary closure of all stores to in-store customer traffic, which adversely affected our business, results of operations and financial condition. We also saw a significant increase in website-generated sales, including direct-to-customer shipping as well as our curbside pick-up. Since the second quarter of fiscal 2020, all 93 stores were open with strict health and safety protocols and adherence to local regulations. As a result, website-generated sales during the remaining quarters of fiscal 2020 moderated in comparison to the first quarter as customers began shifting back to purchasing in-store. We will continue to monitor local, state, and federal mandates related to COVID-19, which may require us to adjust our operations in response to governmental mandates. The Company has taken actions to tightly manage costs, working capital and capital expenditures to preserve the Company’s financial health during the pandemic. In the fourth quarter of fiscal 2019, the company drew down $50,000 under its Revolving Credit Facility (as defined in Note 4) as a proactive measure in light of the COVID-19 pandemic, resulting in an outstanding balance of $78,000, which the Company paid down in the first three quarters of fiscal 2020. In the first quarter of fiscal 2020, the Company furloughed approximately 2,800 employees, primarily in its stores, as well as a portion of corporate employees, and reduced the base salaries of its executive officers and certain employees, due to COVID-19. During fiscal 2020, the majority of our furloughed employees returned and as of April 3, 2021, we no longer have furloughed employees and have returned temporarily reduced base salaries to pre-COVID-19 levels. We continue to prioritize the health and safety of our customers and employees by implementing strict health and safety protocols in our stores, including intensive and frequent cleaning procedures. Furthermore, the CARES Act was signed into law on March 27, 2020 and the Company has implemented applicable benefits of the CARES Act. As such, we have deferred approximately $5,200 of employer payroll taxes as of April 3, 2021 and recorded an employee retention credit of approximately $1,000. |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). Certain items in these consolidated financial statements have been reclassified to conform to the current period presentation. |
Basis of consolidation | Basis of consolidation The consolidated financial statements include our accounts and those of the Company’s wholly owned subsidiaries. The Company eliminates all significant intercompany balances and transactions, including intercompany profits, in consolidation. |
Fiscal year | Fiscal year The Company follows a 4-4-5 fiscal calendar, whereby each fiscal quarter consists of thirteen st All references herein to “fiscal 2021” represent the results of the 52-week fiscal year ending April 2, 2022, references to “fiscal 2020” represent the results of the 53 52 52 |
Management estimates | Management estimates The preparation of the Company’s consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Significant accounting judgments and estimates include fair value estimates for operating lease assets and liabilities, indefinite-lived intangible assets, obsolescence and shrink reserve, assessments of long-lived asset impairments, gift card breakage, and assessment of valuation allowances on deferred tax assets. |
Revenue recognition | Revenue recognition Revenue from sales related to retail operations is recognized when the merchandise is delivered to the customer at the point of sale. Revenue from sales that are shipped or delivered directly to customers is recognized upon estimated delivery to the customer and includes applicable shipping or delivery revenue. Revenue from sales that are installed is recognized upon completion of the installation service to the customer and includes applicable installation revenue. Revenue from sales of other services is recognized upon the completion of the service. Revenue from sales related to manufacturing operations is recorded upon shipment. Sales are recorded net of sales taxes collected from customers. A sales return allowance is recorded for estimated returns of merchandise subsequent to the balance sheet date that relate to sales prior to the balance sheet date. The returns allowance is based on historical return patterns and reduces sales and cost of sales, accordingly. Merchandise exchanges of similar product and price are not considered merchandise returns and, therefore, are excluded when calculating the sales returns allowance. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers amounts that reflect the consideration (that is, payment) to which the Company expects to be entitled in exchange for those goods or services. The Company identified certain impacts to our accounting for gift cards given away for promotional or marketing purposes. Under previous GAAP, the value of promotional gift cards was recorded as selling, general, and administrative expense (“SG&A”). The new standard requires these types of gift cards to be accounted for as a reduction of revenue (i.e. a discount). Additionally, ASU 2014-09 disallows the capitalization of direct-response advertising costs which impacts the timing of recognition of certain advertising production and distribution costs. Upon transition on April 1, 2018, the Company recorded a cumulative adjustment to increase retained earnings/(deficit) and decrease accrued liabilities Other current assets Contract Balances Contract balances as a result of transactions with customers primarily consist of trade receivables included in Accounts receivable, net, unearned revenue included in Accrued liabilities, and gift cards and store credits outstanding included in Accrued liabilities in the Company's consolidated balance sheets. See Note 3 for disclosure on the Company's trade receivables, unearned revenue, and gift cards and store credits outstanding with customers as of April 3, 2021 and March 28, 2020. |
Gift cards and merchandise credits | Gift cards and merchandise credits Gift cards are sold to customers in retail stores, through the call center and website, and through certain third parties. We issue merchandise credits in our stores and through our call center. Revenue from sales of gift cards and issuances of merchandise credits is recognized when the gift card is redeemed by the customer, or the likelihood of the gift card being redeemed by the customer is remote (gift card breakage). The gift card breakage rate is determined based upon historical redemption patterns. An estimate of the rate of gift card breakage is applied over the period of estimated performance (48 months as of the end of fiscal 2020, fiscal 2019, and fiscal 2018) and the breakage amounts are included in net sales in the consolidated statement of operations. The Company recorded $1,914, $955, and $942 of gift card breakage in fiscal years 2020, 2019, and 2018, respectively. |
Cost of sales | Cost of sales Cost of sales related to retail operations includes the purchase cost of inventory sold (net of vendor rebates), in-bound freight, as well as inventory loss reserves. Costs incurred to ship or deliver merchandise to customers, as well as direct installation and organization services costs, are also included in cost of sales. Cost of sales from manufacturing operations includes costs associated with production, including materials, wages, other variable production costs, and other applicable manufacturing overhead. |
Leases | Leases Prior to fiscal 2019, rent expense on operating leases, including rent holidays and scheduled rent increases, was recorded on a straight-line basis over the term of the lease, commencing on the date the Company takes possession of the leased property. Rent expense was recorded in SG&A. Pre-opening rent expense was recorded in pre-opening costs in the consolidated statement of operations. The net excess of rent expense over the actual cash paid was recorded as deferred rent in the accompanying consolidated balance sheets. Tenant improvement allowances were also included in the accompanying consolidated balance sheets as deferred rent liabilities and were amortized as a reduction of rent expense over the term of the lease from the possession date. Contingent rental payments, typically based on a percentage of sales, were recognized in rent expense when payment of the contingent rent is probable. Starting in fiscal 2019, upon the adoption of ASU 2016-02, Leases (Topic 842), |
Advertising | Advertising All advertising costs of the Company are expensed when incurred, or upon the release of the initial advertisement, except for production costs related to catalogs and direct mailings to customers, which are initially capitalized. Production costs related to catalogs and direct mailings consist primarily of printing and postage and are expensed upon initial mailing to the customer. Advertising costs are recorded in SG&A. Pre-opening advertising costs are recorded in pre-opening costs. Catalog and direct mailings costs capitalized at April 3, 2021 and March 28, 2020, amounted to $48 and $49, respectively, and are recorded in prepaid expenses on the accompanying consolidated balance sheets. Total advertising expense incurred for fiscal years 2020, 2019, and 2018, was $32,088, $39,583, and $34,791, respectively. |
Pre-opening costs | Pre-opening costs Non-capital expenditures associated with opening new stores, relocating stores, and net costs associated with opening the second distribution center, including marketing expenses, travel and relocation costs are expensed as incurred and are included in pre-opening costs in the consolidated statement of operations. |
Income taxes | Income taxes We account for income taxes utilizing ASC 740, Income Taxes Deferred tax assets and liabilities are measured using the enacted tax rates in effect in the years when those temporary differences are expected to reverse. The effect on deferred taxes from a change in the tax rate is recognized through continuing operations in the period that includes the enactment of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. We operate in certain jurisdictions outside the United States. ASC 740-30 provides that the undistributed earnings of a foreign subsidiary be accounted for as a temporary difference under the presumption that all undistributed earnings will be distributed to the parent company as a dividend. Sufficient evidence of the intent to permanently reinvest the earnings in the jurisdiction where earned precludes a company from recording the temporary difference. For purposes of ASC 740-30, the Company does not consider the earnings subject to the transition tax and global intangible low-taxed income (“GILTI”) under the Tax Cuts and Jobs Act (the “Tax Act”) permanently reinvested. All other earnings are considered permanently reinvested. |
Stock-based compensation | Stock-based compensation The Company accounts for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation statements as compensation expense over the requisite service period. For time-based awards, compensation expense is recognized on a straight-line basis, net of forfeitures, over the requisite service period for awards that actually vest. For performance-based awards, compensation expense is estimated based on achievement of the performance condition and is recognized using the accelerated attribution method over the requisite service period for awards that actually vest. Stock-based compensation expense is recorded in the stock-based compensation line in the consolidated statements of operations. ASC 718 also provides guidance for determining whether certain financial instruments awarded in share-based payment transactions are liabilities. The guidance requires that instruments that include conditions other than service, performance or market conditions that affect their fair value, exercisability or vesting be classified as a liability and be remeasured at fair value at each fiscal period. Restricted Stock Awards The fair value of each restricted stock award is determined based on the closing price of the Company’s common stock as reported on The New York Stock Exchange on the grant date. Stock Options The Board determines the exercise price of stock options based on the closing price of the Company’s common stock as reported on The New York Stock Exchange on the grant date. The Company estimates the fair value of each stock option grant on the date of grant based upon the Black-Scholes option-pricing model. This model requires various significant judgmental assumptions in order to derive a final fair value determination for each type of award including: ● Expected Term—The expected term of the options represents the period of time between the grant date of the options and the date the options are either exercised or canceled, including an estimate of options still outstanding. For future grants, we would expect to utilize TCS historical data to calculate the expected term. ● Expected Volatility—The expected volatility incorporates historical and implied volatility of comparable public companies for a period approximating the expected term. For future grants, we would expect to utilize the TCS stock price volatility. ● Expected Dividend Yield—The expected dividend yield is based on the Company’s expectation of not paying dividends on its common stock for the foreseeable future. ● Risk-Free Interest Rate—The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant and with a maturity that approximates the expected term. |
Accounts receivable | Accounts receivable Accounts receivable consist primarily of trade receivables, receivables from The Container Store, Inc.’s credit card processors for sales transactions, and tenant improvement allowances from The Container Store, Inc.’s landlords in connection with new leases. An allowance for doubtful accounts is established on trade receivables, if necessary, for estimated losses resulting from the inability of customers to make required payments. Factors such as payment terms, historical loss experience, and economic conditions are generally considered in determining the allowance for doubtful accounts. Accounts receivable are presented net of allowances for doubtful accounts of $118 and $326 at April 3, 2021 and March 28, 2020, respectively. |
Inventories | Inventories Inventories at retail stores are comprised of finished goods and are valued at the lower of cost or estimated net realizable value, with cost determined on a weighted-average cost method including associated in-bound freight costs. Manufacturing inventories are comprised of raw materials, work in process, and finished goods and are valued on a first-in, first out basis using full absorption accounting which includes material, labor, other variable costs, and other applicable manufacturing overhead. To determine if the value of inventory is recoverable at cost, we consider current and anticipated demand, customer preference and the merchandise age. The significant estimates used in inventory valuation are obsolescence (including excess and slow-moving inventory) and estimates of inventory shrinkage. We adjust our inventory for obsolescence based on historical trends, aging reports, specific identification and our estimates of future retail sales prices. Reserves for shrinkage are estimated and recorded throughout the period as a percentage of cost of sales based on historical shrinkage results and current inventory levels. Actual shrinkage is recorded throughout the year based upon periodic cycle counts. Actual inventory shrinkage can vary from estimates due to factors including the mix of our inventory and execution against loss prevention initiatives in our stores and distribution center. |
Property and equipment | Property and equipment Property and equipment are recorded at cost less accumulated depreciation. Significant additions and improvements are capitalized, and expenditures for maintenance and repairs are expensed. Gains and losses on the disposition of property and equipment are recognized in the period incurred. Depreciation, including amortization of assets recorded under finance lease obligations, is provided using the straight-line method over the estimated useful lives of depreciable assets as follows: Buildings 30 years Furniture, fixtures, and equipment 3 to 10 years Computer software 2 to 5 years Leasehold improvements Shorter of useful life or lease term Finance leases Shorter of useful life or lease term Costs of developing or obtaining software for internal use or developing the Company’s website, such as external direct costs of materials or services and internal payroll costs directly related to the software development projects, are capitalized. For the fiscal years ended April 3, 2021, March 28, 2020, and March 30, 2019, the Company capitalized $2,036, $5,890, and $4,565, respectively, and amortized $4,121, $4,977, and $4,374, respectively, of costs in connection with the development of internally used software. |
Long-lived assets | Long-lived assets Long-lived assets, such as property and equipment, lease right-of-use assets, and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. If the sum of the estimated undiscounted future cash flows related to the asset is less than the carrying amount, we recognize a loss equal to the difference between the carrying amount and the fair value, usually determined by the estimated discounted cash flow analysis of the asset. For our TCS segment (see Note 14), we generally evaluate long-lived tangible assets at a store level, or at the lowest level at which independent cash flows can be identified. We evaluate corporate assets or other long-lived assets that are not store-specific at the consolidated level. For our Elfa segment (see Note 14), we evaluate long-lived tangible assets at the segment level. Since there is typically no active market for our long-lived tangible assets, we estimate fair values based on the expected future cash flows. We estimate future cash flows based on store-level historical results, current trends, and operating and cash flow projections. Our estimates are subject to uncertainty and may be affected by a number of factors outside our control, including general economic conditions, such as the duration and severity of the economic downturn caused by the COVID-19 pandemic, and the competitive environment. While we believe our estimates and judgments about future cash flows are reasonable, future impairment charges may be required if the expected cash flow estimates, as projected, do not occur or if events change requiring us to revise our estimates. |
Foreign currency forward contracts | Foreign currency forward contracts We account for foreign currency forward contracts in accordance with ASC 815, Derivatives and Hedging Generally, the Company’s foreign currency forward contracts have terms from 1 to 12 months and require the Company to exchange currencies at agreed-upon rates at settlement. The Company does not hold or enter into financial instruments for trading or speculative purposes. The Company records all foreign currency forward contracts on its consolidated balance sheet at fair value. The Company records its foreign currency forward contracts on a gross basis. Forward contracts not designated as hedges are adjusted to fair value through income as SG&A. The Company accounts for its foreign currency hedge instruments as cash flow hedges, as defined. Changes in the fair value of the foreign currency hedge instruments that are considered to be effective, as defined, are recorded in other comprehensive income (loss) until the hedged item (inventory) is sold to the customer, at which time the deferred gain or loss is recognized through cost of sales. Any portion of a change in the foreign currency hedge instrument’s fair value that is considered to be ineffective, as defined, or that the Company has elected to exclude from its measurement of effectiveness, is immediately recorded in earnings as cost of sales. |
Self-insured liabilities | Self-insured liabilities We are primarily self-insured for workers’ compensation, employee health benefits and general liability claims. We record self-insurance liabilities based on claims filed, including the development of those claims, and an estimate of claims incurred but not yet reported. Factors affecting these estimates include future inflation rates, changes in severity, benefit level changes, medical costs and claim settlement patterns. Should a different amount of claims occur compared to what was estimated, or costs of the claims increase or decrease beyond what was anticipated, reserves may need to be adjusted accordingly. Self-insurance reserves for employee health benefits, workers’ compensation and general liability claims are recorded in the accrued liabilities line item of the consolidated balance sheet and were $2,341 and $2,532 as of April 3, 2021 and March 28, 2020, respectively. |
Goodwill | Goodwill We evaluate goodwill annually to determine whether it is impaired. Goodwill is also tested between annual impairment tests if an event occurs or circumstances change that would indicate that the fair value of a reporting unit is less than its carrying amount. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset. If an impairment indicator exists, we test goodwill for recoverability. We have identified two reporting units and we have selected the first day of the fourth fiscal quarter as the date we perform our annual goodwill impairment testing. To test for impairment, we compare the fair value of the reporting unit to its carrying amount. If the fair value of the reporting unit exceeds the carrying amount of the net assets assigned to that unit, goodwill is considered not impaired and we are not required to perform further testing. If the carrying amount of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then we would record an impairment loss equal to the difference. The fair value of each reporting unit is determined by using a discounted cash flow analysis using the income approach, a level 3 valuation (as defined in Note 13). We also use a market approach to compare the estimated fair value to comparable companies, a level 3 input. The determination of fair value requires assumptions and estimates of many critical factors, including among others, our nature and our history, financial and economic conditions affecting us, such as the economic downturn caused by the COVID-19 pandemic, our industry and the general economy, past results, our current operations and future prospects, sales of similar businesses or capital stock of publicly held similar businesses, as well as prices, terms and conditions affecting past sales of similar businesses. Forecasts of future operations are based, in part, on operating results and management’s expectations as to future market conditions. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. If actual results are not consistent with our estimates and assumptions, we may be exposed to future impairment losses that could be material. As of our annual testing date of December 27, 2020, we determined that there was no impairment of goodwill. Future impairment charges could be required if we do not achieve our current net sales and profitability projections or if our weighted average cost of capital increases. Moreover, changes in our market capitalization may impact certain assumptions used in our income approach calculations. |
Trade names | Trade names We annually evaluate whether our trade names continue to have an indefinite life. Trade names are reviewed for impairment annually on the first day of the fourth fiscal quarter and may be reviewed more frequently if indicators of impairment are present. Conditions that may indicate impairment include, but are not limited to, a significant adverse change in customer demand or business climate that could affect the value of an asset, a product recall or an adverse action or assessment by a regulator. The impairment review is performed by comparing the carrying amount to the estimated fair value, determined using a discounted cash flow methodology. If the recorded carrying amount of the trade name exceeds its estimated fair value, an impairment charge is recorded to write the trade name down to its estimated fair value. Factors used in the valuation of intangible assets with indefinite lives include, but are not limited to, future revenue growth assumptions, estimated market royalty rates that could be derived from the licensing of our trade names to third parties, and a rate used to discount the estimated royalty cash flow projections. The valuation of trade names requires assumptions and estimates of many critical factors, which are consistent with the factors discussed under “Goodwill” above. Forecasts of future operations are based, in part, on operating results and management’s expectations as to future market conditions. These types of analyses contain uncertainties because they require management to make assumptions and to apply judgments to estimate industry economic factors and the profitability of future business strategies. If actual results are not consistent with our estimates and assumptions, we may be exposed to future impairment losses that could be material. As discussed above, as of our annual testing date of December 27, 2020, we determined that there was no impairment of trade names. Future impairment charges could be required if we do not achieve our current net sales and profitability projections. |
Foreign currency translation | Foreign currency translation The Company operates foreign subsidiaries in the following countries: Sweden, Norway, Finland, Denmark, Germany and Poland. The Company’s operations in France were closed in fiscal 2019. The functional currency of the Company’s foreign operations is the applicable country’s currency. All assets and liabilities of foreign subsidiaries and affiliates are translated at year-end rates of exchange. Revenues and expenses of foreign subsidiaries and affiliates are translated at average rates of exchange for the year. Unrealized gains and losses on translation are reported as cumulative translation adjustments through other comprehensive income (loss). The functional currency for the Company’s wholly owned subsidiary, Elfa, is the Swedish krona. During fiscal 2020, the rate of exchange from U.S. dollar to Swedish krona decreased from 9.9 to 8.7. The carrying amounts of assets related to Elfa and subject to currency fluctuation were $116,626 and $105,396 as of April 3, 2021 and March 28, 2020, respectively. Foreign currency realized losses of $200, realized gains of $167, and realized losses of $60, are included in SG&A in the consolidated statements of operations in fiscal 2020, fiscal 2019, and fiscal 2018, respectively. |
Recent accounting pronouncements | Recent accounting pronouncements In July 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) Leases (Topic 842) 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 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, In March 2020, the FASB issued, ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Nature of business and summar_3
Nature of business and summary of significant accounting policies (Tables) | 12 Months Ended |
Apr. 03, 2021 | |
Nature of business and summary of significant accounting policies | |
Schedule of estimated useful lives of depreciable assets | Depreciation, including amortization of assets recorded under finance lease obligations, is provided using the straight-line method over the estimated useful lives of depreciable assets as follows: Buildings 30 years Furniture, fixtures, and equipment 3 to 10 years Computer software 2 to 5 years Leasehold improvements Shorter of useful life or lease term Finance leases Shorter of useful life or lease term |
Goodwill and trade names (Table
Goodwill and trade names (Tables) | 12 Months Ended |
Apr. 03, 2021 | |
Goodwill and trade names | |
Schedule of changes in the carrying amount of goodwill and trade names | Goodwill Trade names Balance at March 30, 2019 Gross balance 410,467 256,684 Accumulated impairment charges (207,652) (31,534) Total, net $ 202,815 $ 225,150 Foreign currency translation adjustments — (2,381) Balance at March 28, 2020 Gross balance 410,467 254,303 Accumulated impairment charges (207,652) (31,534) Total, net $ 202,815 $ 222,769 Foreign currency translation adjustments — 4,900 Balance at April 3, 2021 Gross balance 410,467 259,203 Accumulated impairment charges (207,652) (31,534) Total, net $ 202,815 $ 227,669 |
Detail of certain balance she_2
Detail of certain balance sheet accounts (Tables) | 12 Months Ended |
Apr. 03, 2021 | |
Detail of certain balance sheet accounts | |
Schedule of detail of certain balance sheet accounts | April 3, March 28, 2021 2020 Accounts receivable, net: Trade receivables, net $ 18,784 $ 20,217 Credit card receivables 8,445 3,326 Other receivables 1,720 1,178 $ 28,949 $ 24,721 Inventory: Finished goods $ 126,311 $ 118,981 Raw materials 3,614 4,523 Work in progress 694 703 $ 130,619 $ 124,207 Property and equipment, net: Land and buildings $ 18,037 $ 16,444 Furniture and fixtures 74,657 75,668 Machinery and equipment 106,819 102,057 Computer software and equipment 106,994 106,153 Leasehold improvements 154,480 163,560 Construction in progress 15,603 7,835 Leased vehicles and other 665 273 477,255 471,990 Less accumulated depreciation and amortization (345,371) (324,450) $ 131,884 $ 147,540 Accrued liabilities: Accrued payroll, benefits and bonuses $ 30,028 $ 19,112 Unearned revenue 19,503 12,976 Accrued transaction and property tax 15,660 12,509 Gift cards and store credits outstanding 9,862 9,208 Accrued interest 95 1,483 Accrued sales returns 3,381 1,650 Other accrued liabilities 8,022 9,108 $ 86,551 $ 66,046 |
Long-term debt and revolving _2
Long-term debt and revolving lines of credit (Tables) | 12 Months Ended |
Apr. 03, 2021 | |
Long-term debt and revolving lines of credit | |
Schedule of long-term debt and revolving lines of credit | April 3, March 28, 2021 2020 Senior secured term loan facility $ 174,500 $ 252,282 2019 Elfa revolving facilities — 9,050 Obligations under finance leases 335 274 Revolving credit facility — 78,000 Total debt 174,835 339,606 Less current portion (2,166) (16,002) Less deferred financing costs (1) (8,851) (6,119) Total long-term debt $ 163,818 $ 317,485 (1) Represents deferred financing costs related to our Senior Secured Term Loan Facility, which are presented net of long-term debt in the consolidated balance sheet. |
Schedule of total revolving lines of credit and debt maturities | Within 1 year $ 2,166 2 years 2,097 3 years 2,039 4 years 2,016 5 years 166,517 Thereafter — $ 174,835 |
Schedule of amortization expense of deferred financing costs | Senior Secured Term Loan Revolving Facility Credit Facility Total Within 1 year $ 1,830 $ 53 $ 1,883 2 years 1,830 53 1,883 3 years 1,830 53 1,883 4 years 1,830 53 1,883 5 years 1,531 43 1,574 Thereafter — — — $ 8,851 $ 255 $ 9,106 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Apr. 03, 2021 | |
Income taxes | |
Schedule of components of the provision (benefit) for income taxes | Fiscal Year Ended April 3, March 28, March 30, 2021 2020 2019 Income before income taxes: U.S. $ 61,703 $ 12,168 $ 14,397 Foreign 19,140 9,034 7,564 $ 80,843 $ 21,202 $ 21,961 Current Federal $ 17,727 $ 2,953 $ (780) State 5,738 1,646 1,464 Foreign 3,835 1,968 1,160 Total current provision 27,300 6,567 1,844 Deferred Federal (3,733) 448 (1,350) State (1,029) (302) (68) Foreign 22 2 (145) Total deferred benefit (4,740) 148 (1,563) Total provision for income taxes $ 22,560 $ 6,715 $ 281 |
Schedule of differences between the actual provision for income taxes and the amounts computed by applying the statutory federal tax rate to income before taxes | Fiscal Year Ended April 3, March 28, March 30, 2021 2020 2019 Provision computed at federal statutory rate $ 16,977 $ 4,453 $ 4,612 Permanent differences 1,326 1,145 1,230 One-time transition tax, net — — (5,903) Change in valuation allowance (25) (46) (116) State income taxes, net of federal benefit 3,720 1,062 817 Effect of foreign income taxes 7 (8) (511) Remeasurement of deferred tax balances — — 303 Other, net 555 109 (151) $ 22,560 $ 6,715 $ 281 |
Schedule of components of deferred tax assets and liabilities | April 3, March 28, 2021 2020 Deferred tax assets: Inventory $ 1,560 $ 1,549 Loss and credit carryforwards 4,519 4,542 Stock-based compensation 5,579 5,180 Accrued liabilities 5,786 6,232 Operating lease liabilities 86,635 98,302 Capital assets 106 70 Other — 171 104,185 116,046 Valuation allowance (3,565) (3,479) Total deferred tax assets 100,620 112,567 Deferred tax liabilities: Intangibles (57,789) (56,674) Operating lease assets (77,039) (89,795) Capital assets (10,375) (13,965) Other (2,035) — Total deferred tax liabilities (147,238) (160,434) Net deferred tax liabilities $ (46,618) $ (47,867) |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 12 Months Ended |
Apr. 03, 2021 | |
Employee benefit plans | |
Schedule of reconciliation of the changes in the defined benefit obligations, a statement of funded status, and the related weighted-average assumptions | April 3, March 28, 2021 2020 Change in benefit obligation: Projected benefit obligation, beginning of year $ 5,777 $ 4,862 Service cost 85 46 Interest cost 83 119 Benefits paid (186) (145) Actuarial loss (555) 1,240 Exchange rate gain 781 (345) Projected benefit obligation, end of year 5,985 5,777 Fair value of plan assets, end of year — — Underfunded status, end of year $ (5,985) $ (5,777) Discount rate 1.3 % 1.3 % Rate of pay increases 3.0 % 3.0 % |
Schedule of components of net periodic benefit cost | Fiscal Year Ended April 3, March 28, March 30, 2021 2020 2019 Components of net periodic benefit cost: Defined benefit plans: Service cost $ 85 $ 46 $ 51 Interest cost 83 119 141 Amortization of unrecognized net loss 141 73 68 Net periodic benefit cost for defined benefit plan 309 238 260 Defined contribution plans 1,686 1,661 2,078 Total net periodic benefit cost $ 1,995 $ 1,899 $ 2,338 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Apr. 03, 2021 | |
Stock-based compensation | |
Summary of Company's restricted stock award grants | Number of Performance- Number of Based Total Number of Performance- Performance- Awards Number of Time-Based Time-Based Based Based that Met Awards Grant Date Awards Vesting Awards Vesting Performance Grant Date Granted Fair Value Granted Period Granted Period Condition June 1, 2018 551,453 $ 7.68 112,553 3 years 438,900 (1) 3 years 205,616 September 12, 2018 73,264 $ 10.92 73,264 3 years — — years — June 1, 2019 605,927 $ 7.03 123,667 3 years 482,260 (2) 3 years 182,520 August 28, 2019 172,792 $ 4.63 172,792 3 years — — years — June 1, 2020 1,358,709 $ 3.03 336,876 3 years 1,021,833 (3) 3 years 981,306 August 26, 2020 203,048 $ 3.94 203,048 3 years — — years — February 1, 2021 50,100 $ 15.51 50,100 3 years — — years — (1) These performance-based restricted stock awards vest based on achievement of fiscal 2018 performance targets and are also subject to time-based vesting requirements. (2) These performance-based restricted stock awards vest based on achievement of fiscal 2019 performance targets and are also subject to time-based vesting requirements. (3) These performance-based restricted stock awards vest based on achievement of fiscal 2020 performance targets and are also subject to time-based vesting requirements. |
Summary of Company's restricted stock awards activity | Restricted Stock Weighted Average Awards Grant Date Fair Value Nonvested at March 30, 2019 769,858 $ 7.56 Granted 778,719 6.50 Vested (174,239) 7.13 Forfeited (277,597) 7.75 Withheld related to net settlement (55,477) 6.73 Nonvested at March 28, 2020 1,041,264 $ 6.84 Granted 1,611,857 3.53 Vested (478,795) 6.00 Forfeited (404,347) 6.33 Withheld related to net settlement (168,942) 5.51 Nonvested at April 3, 2021 1,601,037 $ 4.03 |
Summary of the Company's stock option activity | Fiscal Year 2020 2019 2018 Weighted- Weighted- Weighted- Weighted- average Weighted- average Weighted- average average contractual Aggregate average contractual Aggregate average contractual Aggregate exercise term intrinsic exercise term intrinsic exercise term intrinsic price remaining value price remaining value price remaining value Shares (per share) (years) (thousands) Shares (per share) (years) (thousands) Shares (per share) (years) (thousands) Beginning balance 2,559,232 $ 15.30 2,895,539 $ 15.27 3,040,206 $ 15.40 Granted — $ — — $ — — $ — Exercised (42,907) $ 11.57 — $ — — $ — Forfeited (9,130) $ 18.00 (42,864) $ 8.83 (27,793) $ 18.00 Expired (248,154) $ 18.00 (293,443) $ 15.98 (116,874) $ 17.89 Ending balance 2,259,041 $ 15.07 3.26 $ 5,210,006 2,559,232 $ 15.30 4.27 $ — 2,895,539 $ 15.27 5.27 $ 2,460,384 Vested and exercisable at end of year 2,258,933 $ 15.07 3.26 $ 5,210,006 2,389,873 $ 15.69 4.16 $ — 2,428,274 $ 16.49 4.95 $ 1,102,326 |
Accumulated other comprehensi_2
Accumulated other comprehensive income (Tables) | 12 Months Ended |
Apr. 03, 2021 | |
Accumulated other comprehensive income | |
Schedule of components of AOCL, net of tax | Foreign currency Pension Foreign hedge liability currency instruments adjustment translation Total Balance at March 31, 2018 $ (102) $ (1,793) $ (15,421) $ (17,316) Other comprehensive loss before reclassifications, net of tax (2,197) (92) (7,911) (10,200) Amounts reclassified to earnings, net of tax 1,332 52 — 1,384 Net current period other comprehensive loss (865) (40) (7,911) (8,816) Balance at March 30, 2019 $ (967) $ (1,833) $ (23,332) $ (26,132) Other comprehensive loss before reclassifications, net of tax (6,081) (835) (4,789) (11,705) Amounts reclassified to earnings, net of tax 1,485 57 — 1,542 Net current period other comprehensive loss (4,596) (778) (4,789) (10,163) Balance at March 28, 2020 $ (5,563) $ (2,611) $ (28,121) $ (36,295) Other comprehensive income before reclassifications, net of tax 8,458 86 8,359 16,903 Amounts reclassified to earnings, net of tax 279 110 — 389 Net current period other comprehensive income 8,737 196 8,359 17,292 Balance at April 3, 2021 $ 3,174 $ (2,415) $ (19,762) $ (19,003) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 03, 2021 | |
Leases | |
Schedule of components of lease costs | The components of lease costs for the fiscal year ended April 3, 2021 and March 28, 2020 were as follows: Fiscal Year Ended April 3, 2021 March 28, 2020 Operating lease costs $ 90,841 $ 90,367 Variable lease costs 1,056 1,243 Total lease costs $ 91,897 $ 91,610 |
Schedule of supplemental cash flow information | Supplemental cash flow information related to our leases for the fiscal year ended April 3, 2021 and March 28, 2020 were as follows: Fiscal Year Ended April 3, 2021 March 28, 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 86,720 $ 90,386 Additions to right-of-use assets $ 57,708 $ 52,489 |
Schedule of weighted average remaining operating lease term and incremental borrowing rate | Weighted average remaining operating lease term and incremental borrowing rate as of April 3, 2021 and March 28, 2020 were as follows: Fiscal Year Ended April 3, 2021 March 28, 2020 Weighted average remaining lease term (years) 6.9 7.1 Weighted average incremental borrowing rate 13.5 % 8.8 % |
Schedule of future minimum lease payments under our operating lease liabilities | Operating leases Within 1 year $ 93,032 2 years 82,545 3 years 75,294 4 years 67,992 5 years 57,906 Thereafter 151,503 Total lease payments $ 528,272 Less amount representing interest (192,403) Total lease liability $ 335,869 Less current lease liability (50,847) Total noncurrent lease liability $ 285,022 |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Apr. 03, 2021 | |
Fair value measurements | |
Schedule of items measured at fair value on a recurring basis, subject to the disclosure requirements of ASC 820 | April 3, March 28, Description Balance Sheet Location 2021 2020 Assets Nonqualified retirement plan N/A Other current assets $ 5,707 $ 5,066 Foreign currency forward contracts Level 2 Other current assets 2,906 — Total assets $ 8,613 $ 5,066 |
Schedule of estimated fair values of the Company's long-term debt, including current maturities | April 3, March 28, 2021 2020 Senior secured term loan facility $ 174,064 $ 198,041 2019 Elfa revolving facilities — 9,050 Obligations under finance leases 335 274 Revolving credit facility — 78,000 Total fair value of debt $ 174,399 $ 285,365 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Apr. 03, 2021 | |
Segment reporting | |
Schedule of segment reporting | Fiscal Year Ended April 3, 2021 TCS Elfa Eliminations Total Net sales to third parties $ 923,083 $ 67,005 $ — $ 990,088 Intersegment sales — 62,918 (62,918) — Adjusted EBITDA 126,543 24,865 (885) 150,523 Depreciation and amortization 31,043 3,688 — 34,731 Interest expense, net 16,947 321 — 17,268 Capital expenditures (1) 15,073 2,103 — 17,176 Goodwill 202,815 — — 202,815 Trade names (1) 187,048 40,621 — 227,669 Assets (1) 979,411 106,408 (7,350) 1,078,469 Fiscal Year Ended March 28, 2020 TCS Elfa Eliminations Total Net sales to third parties $ 852,349 $ 63,604 $ — $ 915,953 Intersegment sales — 61,955 (61,955) — Adjusted EBITDA 77,156 16,988 (3,373) 90,771 Depreciation and amortization 34,608 4,030 — 38,638 Interest expense, net 21,200 341 — 21,541 Capital expenditures (1) 30,500 3,119 — 33,619 Goodwill 202,815 — — 202,815 Trade names (1) 187,048 35,721 — 222,769 Assets (1) 1,073,888 99,587 (6,661) 1,166,814 Fiscal Year Ended March 30, 2019 TCS Elfa Eliminations Total Net sales to third parties $ 829,622 $ 65,471 $ — $ 895,093 Intersegment sales — 57,849 (57,849) — Adjusted EBITDA 84,041 12,563 (257) 96,347 Depreciation and amortization 31,924 4,381 — 36,305 Interest expense, net 27,016 259 — 27,275 Capital expenditures (1) 31,176 2,494 — 33,670 Goodwill 202,815 — — 202,815 Trade names (1) 187,048 38,102 — 225,150 Assets (1) 649,351 103,347 (3,954) 748,744 (1) Tangible assets and trade names in the Elfa column are located outside of the United States. |
Summary of reconciliation of Adjusted EBITDA by segment to income before taxes | A reconciliation of Adjusted EBITDA to income before taxes is set forth below: Fiscal Year Ended April 3, March 28, March 30, 2021 2020 2019 Income before taxes $ 80,843 $ 21,202 $ 21,961 Add: Depreciation and amortization 34,731 38,638 36,305 Interest expense, net 17,268 21,541 27,275 Pre-opening costs (a) 1,026 8,237 2,103 Non-cash lease expense (b) 4,147 (2,169) (1,327) Stock-based compensation (c) 7,823 3,110 2,846 Management transition costs (d) 1,200 — — Loss on extinguishment of debt (e) 893 — 2,082 Foreign exchange losses (gains) (f) 200 (167) 60 Optimization Plan implementation charges (g) — — 4,864 Elfa France closure (h) — 402 — Employee retention credit (i) (1,028) — — COVID-19 costs (j) 2,266 — — Severance and other costs (credits) (k) 1,154 (23) 178 Adjusted EBITDA 150,523 90,771 96,347 (a) Non-capital expenditures associated with opening new stores, relocating stores, and net costs associated with opening the second distribution center, including marketing expenses, travel and relocation 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. Non-cash lease expense increased in fiscal 2020 due to renegotiated terms with landlords due to COVID-19 that resulted in deferral of $11,900 of certain cash lease payments, of which approximately $4,700 remains deferred as of April 3, 2021, and the modification of certain lease terms for a substantial portion of our leased properties. In 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) Costs related to the transition of key executives including signing bonus and relocation expenses recorded as selling, general and administrative expenses, which we do not consider in our evaluation of ongoing performance. (e) Loss recorded as a result of the amendments made to the Senior Secured Term Loan Facility in December 2020 and September 2018, which we do not consider in our evaluation of our ongoing operations . (f) Realized foreign exchange transactional gains/losses our management does not consider in our evaluation of our ongoing operations. (g) Charges incurred to implement our Optimization Plan, which include certain consulting costs recorded in selling, general and administrative expenses, cash severance payments associated with the elimination of certain full-time positions at the TCS segment recorded in other expenses, and cash severance payments associated with organizational realignment at the Elfa segment recorded in other expenses, which we do not consider in our evaluation of ongoing performance. (h) 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. (i) Employee retention credit related to the CARES Act recorded in the third quarter of fiscal 2020 as selling, general and administrative expense which we do not consider in our evaluation of ongoing performance. (j) Includes incremental costs attributable to the COVID-19 pandemic, which consist of hazard pay for distribution center employees in the first quarter of fiscal 2020 and sanitization costs in fiscal 2020, all of which are recorded as selling, general and administrative expenses which we do not consider in our evaluation of ongoing performance. (k) Severance and other credits/costs include amounts our management does not consider in our evaluation of our ongoing operations. The fiscal 2020 amounts include costs primarily incurred in the first and second quarters of fiscal 2020 associated with the reduction in workforce as a result of the COVID-19 pandemic and the related temporary store closures in fiscal 2020. |
Schedule of sales by merchandise category as a percentage of total net sales | Fiscal Year Ended April 3, March 28, March 30, 2021 2020 2019 Custom Closets (1) 50 % 51 % 49 % Kitchen and Trash 18 % 14 % 14 % Storage, Long-Term Storage, Shelving 14 % 13 % 14 % Office, Collections, Hooks 8 % 8 % 8 % Bath, Travel, Laundry 5 % 7 % 8 % Gift Packaging, Seasonal, Impulse 4 % 5 % 6 % Other 1 % 2 % 1 % Total 100 % 100 % 100 % (1) Includes elfa ®, Avera® and Laren ® products and installation services, as well as closet lifestyle department products sold by the TCS segment and Elfa segment sales to third parties. |
Net income per common share (Ta
Net income per common share (Tables) | 12 Months Ended |
Apr. 03, 2021 | |
Net income per common share | |
Schedule of reconciliation of net income and the number of shares used in the basic and diluted net income per common share calculations: | Fiscal Year Ended April 3, March 28, March 30, 2021 2020 2019 Numerator: Net income $ 58,283 $ 14,487 $ 21,680 Denominator: Weighted-average common shares — basic 48,537,883 48,819,783 48,139,929 Options and other dilutive securities 1,174,754 144,781 260,478 Weighted-average common shares — diluted 49,712,637 48,964,564 48,400,407 Net income per common share — basic $ 1.20 $ 0.30 $ 0.45 Net income per common share — diluted 1.17 0.30 0.45 Antidilutive securities not included: Stock options outstanding 1,941,192 2,389,820 2,436,321 Nonvested restricted stock awards 28,969 148,066 102,725 |
Nature of business and summar_4
Nature of business and summary of significant accounting policies (Details) | Apr. 03, 2021ft²storestate |
Nature of business and summary of significant accounting policies | |
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 |
Nature of business and summar_5
Nature of business and summary of significant accounting policies - Business Update Related to Coronavirus (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 28, 2020USD ($) | Apr. 03, 2021USD ($)employeestore | Jun. 27, 2020employee | |
Number of stores operating with health and safety protocols | store | 93 | ||
Long-term debt outstanding | $ 339,606 | $ 174,835 | |
Entity Number of Furloughed Employees | employee | 0 | 2,800 | |
Social Security Tax, Employer, Deferral CARES Act | $ 5,200 | ||
Employee Retention Credit, Deferral Cares Act | $ 1,000 | ||
LGP | Maximum | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 50.00% | ||
Revolving Credit Facility | |||
Drew down under credit facility | 50,000 | ||
Long-term debt outstanding | $ 78,000 |
Nature of business and summar_6
Nature of business and summary of significant accounting policies - Fiscal year (Details) - item | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Fiscal year | |||
Length of fiscal quarter | 98 days | ||
Number of four week months | 2 | ||
Number of five week months | 1 | ||
Length of fiscal year | 371 days | 364 days | 364 days |
Nature of business and summar_7
Nature of business and summary of significant accounting policies - Revenue recognition (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | Apr. 01, 2018 |
Recent accounting pronouncements | ||||
Retained Earnings (Accumulated Deficit) | $ (500,864) | $ (559,147) | ||
Accrued Liabilities, Current | 86,551 | 66,046 | ||
Inventory, Net | 130,619 | 124,207 | ||
Other Assets, Current | $ 14,547 | $ 11,907 | ||
ASU 2014-09 | ||||
Recent accounting pronouncements | ||||
Retained Earnings (Accumulated Deficit) | $ 400 | |||
Accrued Liabilities, Current | $ (400) | |||
Inventory, Net | $ (900) | |||
Other Assets, Current | $ 900 |
Nature of business and summar_8
Nature of business and summary of significant accounting policies - Gift cards and merchandise credits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Gift cards and merchandise credits | |||
Period of estimated performance | 48 months | 48 months | 48 months |
Gift card breakage recorded | $ 1,914 | $ 955 | $ 942 |
Advertising | |||
Catalog and direct mailings costs capitalized | 48 | 49 | |
Advertising expense incurred | 32,088 | 39,583 | $ 34,791 |
Income taxes | |||
Uncertain tax positions requiring accrual | 0 | 0 | |
Accounts receivable | |||
Allowances for doubtful accounts | $ 118 | $ 326 |
Nature of business and summar_9
Nature of business and summary of significant accounting policies - Property, plant, and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Property and equipment ,net: | |||
Cost capitalized in connection with the development of internally used software | $ 2,036 | $ 5,890 | $ 4,565 |
Cost amortized in connection with the development of internally used software | $ 4,121 | $ 4,977 | $ 4,374 |
Buildings | |||
Property and equipment ,net: | |||
Estimated useful lives | 30 years | ||
Furniture, fixtures, and equipment | Minimum | |||
Property and equipment ,net: | |||
Estimated useful lives | 3 years | ||
Furniture, fixtures, and equipment | Maximum | |||
Property and equipment ,net: | |||
Estimated useful lives | 10 years | ||
Computer software | Minimum | |||
Property and equipment ,net: | |||
Estimated useful lives | 2 years | ||
Computer software | Maximum | |||
Property and equipment ,net: | |||
Estimated useful lives | 5 years |
Nature of business and summa_10
Nature of business and summary of significant accounting policies - Foreign currency forward contracts (Details) $ in Thousands | Dec. 27, 2020USD ($) | Apr. 03, 2021USD ($)item | Mar. 28, 2020USD ($) | Mar. 30, 2019USD ($) |
Self-insured liabilities | ||||
Self-insurance reserves recorded in accrued liabilities | $ 2,341 | $ 2,532 | ||
Goodwill | ||||
Number of reporting units | item | 2 | |||
Impairment charges for goodwill | $ 0 | $ 0 | 0 | $ 0 |
Foreign currency forward contracts | ||||
Minimum term period of currency-related hedge instruments | 1 month | |||
Maximum term period of currency-related hedge instruments | 12 months | |||
Recent accounting pronouncements | ||||
Liabilities | $ 724,800 | 895,106 | ||
Assets | $ 1,078,469 | $ 1,166,814 | 748,744 | |
Elfa | ||||
Foreign currency translation | ||||
Exchange rate from Swedish Krona to U.S. Dollar | 8.7 | 9.9 | ||
Carrying amounts of net assets | $ 116,626 | $ 105,396 | ||
Selling, general & administrative | ||||
Foreign currency translation | ||||
Realized gains/losses | 200 | (167) | 60 | |
Trade names | ||||
Trade names | ||||
Impairment charge | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and trade names (Detai
Goodwill and trade names (Details) - USD ($) $ in Thousands | Dec. 27, 2020 | Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 |
Goodwill and trade names | ||||
Impairment charges for goodwill | $ 0 | $ 0 | $ 0 | $ 0 |
Changes in the carrying amount of goodwill | ||||
Gross balance at the beginning of the period | 410,467 | 410,467 | ||
Accumulated impairment charges at the beginning of the period | (207,652) | (207,652) | ||
Total, net balance at the beginning of the period | 202,815 | 202,815 | ||
Gross balance at the end of the period | 410,467 | 410,467 | 410,467 | |
Accumulated impairment charges at the end of the period | (207,652) | (207,652) | (207,652) | |
Total, net balance at the end of the period | 202,815 | 202,815 | 202,815 | |
Trade names | ||||
Goodwill and trade names | ||||
Impairment charge | $ 0 | 0 | 0 | 0 |
Changes in the carrying amount of trade names | ||||
Gross balance at the beginning of the period | 254,303 | 256,684 | ||
Accumulated impairment charges at the beginning of the period | (31,534) | (31,534) | ||
Total, net balance at the beginning of the period | 222,769 | 225,150 | ||
Foreign currency translation adjustments | 4,900 | (2,381) | ||
Gross balance at the end of the period | 259,203 | 254,303 | 256,684 | |
Accumulated impairment charges at the end of the period | (31,534) | (31,534) | (31,534) | |
Total, net balance at the end of the period | $ 227,669 | $ 222,769 | $ 225,150 |
Detail of certain balance she_3
Detail of certain balance sheet accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Detail of certain balance sheet accounts | ||
Revenue recognized included in unearned income | $ 12,632 | $ 12,976 |
Revenue recognized included in Gift Cards and Store Credits | 2,947 | 9,208 |
Accounts receivable, net: | ||
Trade receivables, net | 18,784 | 20,217 |
Credit card receivables | 8,445 | 3,326 |
Other receivables | 1,720 | 1,178 |
Accounts receivable, net | 28,949 | 24,721 |
Inventory: | ||
Finished goods | 126,311 | 118,981 |
Raw materials | 3,614 | 4,523 |
Work in progress | 694 | 703 |
Inventory | 130,619 | 124,207 |
Accrued Liabilities: | ||
Accrued payroll, benefits and bonuses | 30,028 | 19,112 |
Unearned revenue | 19,503 | 12,976 |
Accrued transaction and property tax | 15,660 | 12,509 |
Gift cards and store credits outstanding | 9,862 | 9,208 |
Accrued interest | 95 | 1,483 |
Accrued sales returns | 3,381 | 1,650 |
Other accrued liabilities | 8,022 | 9,108 |
Accrued liabilities | 86,551 | 66,046 |
Property and equpiment, net: | ||
Property, Plant and Equipment, Gross | 477,255 | 471,990 |
Less accumulated depreciation and amortization | (345,371) | (324,450) |
Property, Plant and Equipment, Net | 131,884 | 147,540 |
Land and buildings | ||
Property and equpiment, net: | ||
Property, Plant and Equipment, Gross | 18,037 | 16,444 |
Furniture and fixtures | ||
Property and equpiment, net: | ||
Property, Plant and Equipment, Gross | 74,657 | 75,668 |
Machinery and equipment | ||
Property and equpiment, net: | ||
Property, Plant and Equipment, Gross | 106,819 | 102,057 |
Computer software and equipment | ||
Property and equpiment, net: | ||
Property, Plant and Equipment, Gross | 106,994 | 106,153 |
Leasehold improvements | ||
Property and equpiment, net: | ||
Property, Plant and Equipment, Gross | 154,480 | 163,560 |
Construction in progress | ||
Property and equpiment, net: | ||
Property, Plant and Equipment, Gross | 15,603 | 7,835 |
Leased vehicles and other | ||
Property and equpiment, net: | ||
Property, Plant and Equipment, Gross | $ 665 | $ 273 |
Long-term debt and revolving _3
Long-term debt and revolving lines of credit - Schedule of long-term debt and revolving lines of credit (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Mar. 28, 2020 |
Long-term debt and revolving lines of credit | ||
Total debt | $ 174,835 | $ 339,606 |
Less current portion | (2,166) | (16,002) |
Less deferred financing costs | (8,851) | (6,119) |
Total long-term debt | 163,818 | 317,485 |
Senior Secured Term Loan Facility | ||
Long-term debt and revolving lines of credit | ||
Total debt | 174,500 | 252,282 |
Obligations under finance leases | ||
Long-term debt and revolving lines of credit | ||
Total debt | $ 335 | 274 |
The 2019 Elfa Revolving Credit Facility | ||
Long-term debt and revolving lines of credit | ||
Total debt | 9,050 | |
Revolving Credit Facility | ||
Long-term debt and revolving lines of credit | ||
Total debt | $ 78,000 |
Long-term debt and revolving _4
Long-term debt and revolving lines of credit - Scheduled total revolving lines of credit and debt maturities (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Mar. 28, 2020 |
Scheduled total revolving lines of credit and debt maturities | ||
Within 1 year | $ 2,166 | |
2 years | 2,097 | |
3 years | 2,039 | |
4 years | 2,016 | |
5 years | 166,517 | |
Total debt | $ 174,835 | $ 339,606 |
Long-term debt and revolving _5
Long-term debt and revolving lines of credit - Senior Secured Term Loan Facility (Details) - USD ($) $ in Thousands | Nov. 25, 2020 | Apr. 03, 2021 |
Base rate | ||
Long-term debt and revolving lines of credit | ||
Interest rate margin (as a percent) | 3.75% | |
Senior Secured Term Loan Facility | ||
Long-term debt and revolving lines of credit | ||
Principal repayments | $ 47,200 | |
Outstanding borrowings | $ 200,000 | $ 165,649 |
Fee premium imposed on voluntary prepayments (as a percent) | 1.00% | |
Amount of quarterly amortization payments | $ 500 | |
Debt Instrument leverage ratio covenant | 2.75 | |
Loss on extinguishment of debt | $ 893 | |
Repayments of Secured Debt | 25,500 | |
Deferred financing costs | $ 5,579 | |
Senior Secured Term Loan Facility | LIBOR | ||
Long-term debt and revolving lines of credit | ||
Interest rate margin (as a percent) | 4.75% | |
Floor interest rate for reference rate (as a percent) | 1.00% | |
Senior Secured Term Loan Facility | Maximum | ||
Long-term debt and revolving lines of credit | ||
Debt Instrument First Priority Security Interest in Stock in Foreign Subsidiaries Percent | 65.00% | |
Senior Secured Term Loan Facility | Maximum | LIBOR | ||
Long-term debt and revolving lines of credit | ||
Interest rate margin (as a percent) | 5.00% | |
Senior Secured Term Loan Facility | Maximum | Base rate | ||
Long-term debt and revolving lines of credit | ||
Interest rate margin (as a percent) | 4.00% |
Long-term debt and revolving _6
Long-term debt and revolving lines of credit - Revolving Credit Facility (Details) - USD ($) $ in Thousands | Nov. 25, 2020 | Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 |
Long-term debt and revolving lines of credit | ||||
Net amount of borrowings on long term debt | $ 200,000 | $ 115,000 | $ 331,500 | |
Revolving Credit Facility | ||||
Long-term debt and revolving lines of credit | ||||
Maximum borrowing capacity | $ 100,000 | |||
Amount of increase in commitments upon such request from the Company | 50,000 | |||
Swing line advances limit | 15,000 | |||
Letter of credit facility sub-limit | $ 40,000 | |||
Percentage of eligible credit card receivables used for determining total amount of availability | 90.00% | |||
Percentage of appraised value of eligible inventory used for determining total amount of availability | 90.00% | |||
Consolidated fixed-charge coverage ratio to be maintained if excess availability is less than $10,000 at any time | 1 | |||
Amount of dividend payable during term of debt | 15,000 | |||
Amount of availability under facility | 96,467 | |||
Line of credit, draw down | $ 3,170 | |||
Revolving Credit Facility | LIBOR | ||||
Long-term debt and revolving lines of credit | ||||
Interest rate margin (as a percent) | 1.25% | |||
Revolving Credit Facility | Minimum | ||||
Long-term debt and revolving lines of credit | ||||
Amount of dividend payable during term of debt | $ 12,500 | |||
Threshold fixed charge coverage ratio for payment of dividend | 1.10 | |||
Revolving Credit Facility | Maximum | ||||
Long-term debt and revolving lines of credit | ||||
First priority security interest in stock in foreign subsidiaries (as a percent) | 65.00% | |||
Threshold amount of excess availability for which consolidated fixed-charge coverage ratio of 1.0 to 1.0 is to be maintained | $ 10,000 |
Long-term debt and revolving _7
Long-term debt and revolving lines of credit - Elfa Senior Secured Credit Facilities (Details) $ in Thousands, kr in Millions | Nov. 25, 2020 | Mar. 18, 2019SEK (kr) | Apr. 03, 2021USD ($) |
Base rate | |||
Long-term debt and revolving lines of credit | |||
Interest rate margin (as a percent) | 3.75% | ||
2019 Original Revolving Facility | |||
Long-term debt and revolving lines of credit | |||
Line of Credit Facility, Maximum Borrowing Capacity | kr 110 | $ 12,617 | |
2019 Additional Revolving Facility | |||
Long-term debt and revolving lines of credit | |||
Line of Credit Facility, Maximum Borrowing Capacity | kr 115 | 13,190 | |
2019 Elfa Revolving Facilities | STIBOR | |||
Long-term debt and revolving lines of credit | |||
Interest rate margin (as a percent) | 1.70% | ||
2019 Elfa Revolving Facilities | Base rate | |||
Long-term debt and revolving lines of credit | |||
Interest rate margin (as a percent) | 1.40% | ||
Term Loan Facility [Member] | |||
Long-term debt and revolving lines of credit | |||
Line of Credit Facility, Maximum Borrowing Capacity | kr 25 | $ 2,867 | |
Minimum | 2019 Elfa senior secured credit facilities | |||
Long-term debt and revolving lines of credit | |||
Consolidated equity ratio after year one | 32.50% | ||
Maximum | 2019 Elfa senior secured credit facilities | |||
Long-term debt and revolving lines of credit | |||
Consolidated ratio of net debt to EBITDA at end of each calendar quarter | 3.20 |
Long-term debt and revolving _8
Long-term debt and revolving lines of credit - Deferred financing costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Long-term debt and revolving lines of credit | |||
Amortization expense of deferred financing costs | $ 1,870 | $ 1,862 | $ 2,351 |
Amortization expense of deferred financing costs: | |||
Within 1 year | 1,883 | ||
2 years | 1,883 | ||
3 years | 1,883 | ||
4 years | 1,883 | ||
5 years | 1,574 | ||
Total | 9,106 | ||
Senior Secured Term Loan Facility | |||
Long-term debt and revolving lines of credit | |||
Deferred financing costs | 5,579 | ||
Amortization expense of deferred financing costs: | |||
Within 1 year | 1,830 | ||
2 years | 1,830 | ||
3 years | 1,830 | ||
4 years | 1,830 | ||
5 years | 1,531 | ||
Total | 8,851 | ||
Revolving Credit Facility | |||
Amortization expense of deferred financing costs: | |||
Within 1 year | 53 | ||
2 years | 53 | ||
3 years | 53 | ||
4 years | 53 | ||
5 years | 43 | ||
Total | $ 255 |
Income taxes - Components of th
Income taxes - Components of the provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Income before income taxes: | |||
U.S. | $ 61,703 | $ 12,168 | $ 14,397 |
Foreign | 19,140 | 9,034 | 7,564 |
Income before taxes | 80,843 | 21,202 | 21,961 |
Current | |||
Federal | 17,727 | 2,953 | (780) |
State | 5,738 | 1,646 | 1,464 |
Foreign | 3,835 | 1,968 | 1,160 |
Total current provision | 27,300 | 6,567 | 1,844 |
Deferred | |||
Federal | (3,733) | 448 | (1,350) |
State | (1,029) | (302) | (68) |
Foreign | 22 | 2 | (145) |
Total deferred benefit | (4,740) | 148 | (1,563) |
Total provision for income taxes | $ 22,560 | $ 6,715 | $ 281 |
Income taxes - Differences betw
Income taxes - Differences between the actual provision for income taxes and the amounts computed by applying the statutory federal tax rate to income before taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Differences between the actual (benefit) provision for income taxes and the amounts computed by applying the statutory federal tax rate to income before taxes | |||
Provision computed at federal statutory rate | $ 16,977 | $ 4,453 | $ 4,612 |
Permanent differences | 1,326 | 1,145 | 1,230 |
One-time transition tax, net | (5,903) | ||
Change in valuation allowance | (25) | (46) | (116) |
State income taxes, net of federal benefit | 3,720 | 1,062 | 817 |
Effect of foreign income taxes | 7 | (8) | (511) |
Remeasurement of deferred tax balances | 303 | ||
Other, net | 555 | 109 | (151) |
Total provision for income taxes | $ 22,560 | $ 6,715 | $ 281 |
Income taxes - Components of de
Income taxes - Components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Mar. 28, 2020 |
Deferred tax assets: | ||
Inventory | $ 1,560 | $ 1,549 |
Loss and credit carryforwards | 4,519 | 4,542 |
Stock compensation | 5,579 | 5,180 |
Accrued liabilities | 5,786 | 6,232 |
Operating lease liabilities | 86,635 | 98,302 |
Capital assets | 106 | 70 |
Other | 171 | |
Deferred tax assets before valuation allowance | 104,185 | 116,046 |
Valuation allowance | (3,565) | (3,479) |
Total deferred tax assets | 100,620 | 112,567 |
Deferred tax liabilities: | ||
Intangibles | (57,789) | (56,674) |
Lease assets | (77,039) | (89,795) |
Capital assets | (10,375) | (13,965) |
Other | (2,035) | |
Total deferred tax liabilities | (147,238) | (160,434) |
Net deferred tax liabilities | $ (46,618) | $ (47,867) |
Income taxes - Operating loss c
Income taxes - Operating loss carryovers (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Mar. 28, 2020 |
Operating loss carryovers | ||
Valuation allowances | $ 2,223 | $ 2,135 |
Foreign and Domestic | ||
Operating loss carryovers | ||
Tax credits | 779 | 931 |
Foreign and State | ||
Operating loss carryovers | ||
Deferred tax assets for net operating loss carryovers | $ 2,408 | $ 2,279 |
Employee benefit plans 401(k) P
Employee benefit plans 401(k) Plan (Details) - USD ($) | Jan. 01, 2020 | Sep. 09, 2018 | Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 |
401(k) Plan | |||||
Number of months of service required to be completed by employees to be eligible to participate in plan | 11 months | ||||
Maximum contribution by participants (as a percent) | 80.00% | ||||
Maximum contribution by participants | $ 19,500 | ||||
Percentage of employee contributions matched by the company | 50.00% | ||||
Matching contribution by the company as a percentage of compensation | 3.00% | ||||
Total matching contributions | $ 0 | $ 1,120 | $ 618 | ||
Participants aged 50 years and over | |||||
401(k) Plan | |||||
Maximum contribution by participants | $ 26,000 |
Employee benefit plans - Nonqua
Employee benefit plans - Nonqualified retirement plan (Details) - Nonqualified retirement plan - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Pension plans | |||
Matching contribution | $ 0 | $ 0 | $ 0 |
Other current assets | |||
Pension plans | |||
Fair value of the plan asset | 5,707 | 5,066 | |
Accrued liabilities | |||
Pension plans | |||
Carrying value of the plan liability | $ 5,712 | $ 5,070 |
Employee benefit plans - Pensio
Employee benefit plans - Pension plan (Details) - Pension plan - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Change in benefit obligation: | |||
Projected benefit obligation, beginning of year | $ 5,777 | $ 4,862 | |
Service cost | 85 | 46 | $ 51 |
Interest cost | 83 | 119 | 141 |
Benefits paid | (186) | (145) | |
Actuarial loss | (555) | 1,240 | |
Exchange rate gain | 781 | (345) | |
Projected benefit obligation, end of year | 5,985 | 5,777 | 4,862 |
Underfunded status, end of year | $ (5,985) | $ (5,777) | |
Discount rate (as a percent) | 1.30% | 1.30% | |
Rate of pay increases (as a percent) | 3.00% | 3.00% | |
Components of net periodic benefit cost: | |||
Service cost | $ 85 | $ 46 | 51 |
Interest cost | 83 | 119 | 141 |
Amortization of unrecognized net loss | 141 | 73 | 68 |
Net periodic benefit cost for defined benefit plan | 309 | 238 | 260 |
Defined contribution plans | 1,686 | 1,661 | 2,078 |
Total net periodic benefit cost | $ 1,995 | $ 1,899 | $ 2,338 |
Elfa | |||
Pension plans | |||
Percentage of employees who are plan participants | 3.00% |
Stock-based compensation (Detai
Stock-based compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | Sep. 12, 2017 | |
Stock-based compensation | ||||
Nonvested restricted shares | 1,601,037 | 1,041,264 | 769,858 | |
Restricted Stock Awards | ||||
Stock-based compensation | ||||
Unrecognized compensation expense related to outstanding restricted stock awards | $ 3,471 | |||
Average remaining service period for recognition of unrecognized compensation cost | 1 year 3 months 18 days | |||
Stock-based compensation cost related to restricted stock awards | $ 7,470 | $ 2,162 | $ 1,527 | |
2013 Equity Plan | ||||
Stock-based compensation | ||||
Number of shares reserved for issuance | 3,616,570 | |||
Amended and Restated 2013 Incentive Award Plan | ||||
Stock-based compensation | ||||
Number of shares reserved for issuance | 11,116,570 | 11,116,570 | ||
Number of shares available for grant | 6,257,145 |
Stock-based compensation - Rest
Stock-based compensation - Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 01, 2021 | Aug. 26, 2020 | Jun. 01, 2020 | Aug. 28, 2019 | Jun. 01, 2019 | Sep. 12, 2018 | Jun. 01, 2018 | Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 |
Stock-based compensation | ||||||||||
Total number of restricted shares granted (in shares) | 1,611,857 | 778,719 | ||||||||
Grant-date fair value (in dollars per share) | $ 3.53 | $ 6.50 | ||||||||
Nonvested restricted shares | 1,601,037 | 1,041,264 | 769,858 | |||||||
Restricted Stock Awards | ||||||||||
Stock-based compensation | ||||||||||
Unrecognized compensation expense related to outstanding restricted stock awards | $ 3,471 | |||||||||
Average remaining service period for recognition of unrecognized compensation cost | 1 year 3 months 18 days | |||||||||
Amended and Restated 2013 Incentive Award Plan | Restricted Stock Awards | ||||||||||
Stock-based compensation | ||||||||||
Total number of restricted shares granted (in shares) | 50,100 | 203,048 | 1,358,709 | 172,792 | 605,927 | 73,264 | 551,453 | |||
Grant-date fair value (in dollars per share) | $ 15.51 | $ 3.94 | $ 3.03 | $ 4.63 | $ 7.03 | $ 10.92 | $ 7.68 | |||
Amended and Restated 2013 Incentive Award Plan | Time-based restricted shares granted on June 1, 2018 | ||||||||||
Stock-based compensation | ||||||||||
Total number of restricted shares granted (in shares) | 112,553 | |||||||||
Vesting period | 3 years | |||||||||
Amended and Restated 2013 Incentive Award Plan | Time-based restricted shares granted on September 12, 2018 | ||||||||||
Stock-based compensation | ||||||||||
Total number of restricted shares granted (in shares) | 73,264 | |||||||||
Vesting period | 3 years | |||||||||
Amended and Restated 2013 Incentive Award Plan | Time Based Restricted Shares Granted On June 1 2019 | ||||||||||
Stock-based compensation | ||||||||||
Total number of restricted shares granted (in shares) | 123,667 | |||||||||
Vesting period | 3 years | |||||||||
Amended and Restated 2013 Incentive Award Plan | Time Based Restricted Shares Granted On August 28 2019 | ||||||||||
Stock-based compensation | ||||||||||
Total number of restricted shares granted (in shares) | 172,792 | |||||||||
Vesting period | 3 years | |||||||||
Amended and Restated 2013 Incentive Award Plan | Time Based Restricted Shares Granted On June 1 2020 | ||||||||||
Stock-based compensation | ||||||||||
Total number of restricted shares granted (in shares) | 336,876 | |||||||||
Vesting period | 3 years | |||||||||
Amended and Restated 2013 Incentive Award Plan | Time Based Restricted Shares Granted On August 26 2020 | ||||||||||
Stock-based compensation | ||||||||||
Total number of restricted shares granted (in shares) | 203,048 | |||||||||
Vesting period | 3 years | |||||||||
Amended and Restated 2013 Incentive Award Plan | Time Based Restricted Shares Granted On February 1 2021 | ||||||||||
Stock-based compensation | ||||||||||
Total number of restricted shares granted (in shares) | 50,100 | |||||||||
Vesting period | 3 years | |||||||||
Amended and Restated 2013 Incentive Award Plan | Performance-based restricted shares granted on June 1, 2018 | ||||||||||
Stock-based compensation | ||||||||||
Total number of restricted shares granted (in shares) | 438,900 | |||||||||
Vesting period | 3 years | |||||||||
Performance-based restricted shares that met performance condition | 205,616 | |||||||||
Amended and Restated 2013 Incentive Award Plan | Performance-based restricted shares granted On June 1, 2019 | ||||||||||
Stock-based compensation | ||||||||||
Total number of restricted shares granted (in shares) | 482,260 | |||||||||
Vesting period | 3 years | |||||||||
Performance-based restricted shares that met performance condition | 182,520 | |||||||||
Amended and Restated 2013 Incentive Award Plan | Performance Based Restricted Shares Granted On June 1 2020 | ||||||||||
Stock-based compensation | ||||||||||
Total number of restricted shares granted (in shares) | 1,021,833 | |||||||||
Vesting period | 3 years | |||||||||
Performance-based restricted shares that met performance condition | 981,306 |
Stock-based compensation - Re_2
Stock-based compensation - Restricted stock Awards activity (Details) - $ / shares | 12 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Restricted Stock Awards | ||
Nonvested, Beginning balance (in shares) | 1,041,264 | 769,858 |
Granted (in shares) | 1,611,857 | 778,719 |
Vested (in shares) | (478,795) | (174,239) |
Forfeited (in shares) | (404,347) | (277,597) |
Withheld related to net settlement (in shares) | (168,942) | (55,477) |
Nonvested, Ending balance (in shares) | 1,601,037 | 1,041,264 |
Weighted Average Grant Date Fair Value | ||
Nonvested, Balance at the beginning of the period (in dollars per share) | $ 6.84 | $ 7.56 |
Granted (in dollars per share) | 3.53 | 6.50 |
Vested (in dollars per share) | 6 | 7.13 |
Forfeited (in dollars per share) | 6.33 | 7.75 |
Withheld related to net settlement (in dollars per share) | 5.51 | 6.73 |
Nonvested, Balance at the end of the period (in dollars per share) | $ 4.03 | $ 6.84 |
Stock-based compensation - Stoc
Stock-based compensation - Stock Options (Details) - Nonqualified stock options - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Stock-based compensation | |||
Stock-based compensation expense (in dollars) | $ 354 | $ 949 | $ 1,319 |
Unrecognized compensation cost (in dollars) | 0 | ||
Intrinsic value | 882 | 0 | 0 |
Fair value of shares vested | $ 779 | $ 1,167 | $ 1,507 |
Amended and Restated 2013 Incentive Award Plan | |||
Stock-based compensation | |||
Vesting period | 3 years | 3 years | 3 years |
Awards granted (in shares) | 0 | 0 | 0 |
Stock-based compensation - St_2
Stock-based compensation - Stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Shares | |||
Beginning balance (in shares) | 2,559,232 | 2,895,539 | 3,040,206 |
Exercised (in shares) | (42,907) | ||
Forfeited (in shares) | (9,130) | (42,864) | (27,793) |
Expired (in shares) | (248,154) | (293,443) | (116,874) |
Ending balance (in shares) | 2,259,041 | 2,559,232 | 2,895,539 |
Vested and exercisable at end of year (in shares) | 2,258,933 | 2,389,873 | 2,428,274 |
Weighted-average exercise price | |||
Balance at the beginning of the period (in dollars per share) | $ 15.30 | $ 15.27 | $ 15.40 |
Exercised (in dollars per share) | 11.57 | ||
Forfeited (in dollars per share) | 18 | 8.83 | 18 |
Expired (in dollars per share) | 18 | 15.98 | 17.89 |
Balance at the end of the period (in dollars per share) | 15.07 | 15.30 | 15.27 |
Exercisable at the end of the period (in dollars per share) | $ 15.07 | $ 15.69 | $ 16.49 |
Weighted-average contractual term remaining | |||
Balance at end of year | 3 years 3 months 3 days | 4 years 3 months 7 days | 5 years 3 months 7 days |
Exercisable at the end of the period | 3 years 3 months 3 days | 4 years 1 month 28 days | 4 years 11 months 12 days |
Aggregate intrinsic value | |||
Balance at the end of the period | $ 5,210,006 | $ 2,460,384 | |
Exercisable at the end of the period | $ 5,210,006 | $ 1,102,326 |
Shareholders' equity - Common s
Shareholders' equity - Common stock (Details) $ / shares in Units, $ in Thousands | Apr. 03, 2021USD ($)Vote$ / sharesshares | Mar. 28, 2020$ / sharesshares | Mar. 31, 2018$ / shares |
Shareholders' equity | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 | |
Common stock, shares issued | 48,838,261 | 48,316,559 | |
Common stock | |||
Shareholders' equity | |||
Number of votes per share entitled to holders | Vote | 1 | ||
Redemptions or sinking fund provisions | $ | $ 0 |
Shareholders' equity - Preferre
Shareholders' equity - Preferred stock (Details) | Apr. 03, 2021$ / sharesshares |
Shareholders' equity | |
Preferred stock, shares authorized | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 |
Preferred stock, shares issued | 0 |
Preferred stock, shares outstanding | 0 |
Accumulated other comprehensi_3
Accumulated other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Rollforward of the amounts included in AOCI, net of taxes | |||
Balance beginning of period | $ (36,295) | ||
Balance end of period | (19,003) | $ (36,295) | |
Unrecognized net actuarial loss included in accumulated other comprehensive income | (2,415) | (2,611) | |
Pension liability adjustment | |||
Rollforward of the amounts included in AOCI, net of taxes | |||
Balance beginning of period | (2,611) | (1,833) | $ (1,793) |
Other comprehensive income (loss) before reclassifications, net of tax | 86 | (835) | (92) |
Amounts reclassified to earnings, net of tax | 110 | 57 | 52 |
Net current period other comprehensive income (loss) | 196 | (778) | (40) |
Balance end of period | (2,415) | (2,611) | (1,833) |
Foreign currency translation | |||
Rollforward of the amounts included in AOCI, net of taxes | |||
Balance beginning of period | (28,121) | (23,332) | (15,421) |
Other comprehensive income (loss) before reclassifications, net of tax | 8,359 | (4,789) | (7,911) |
Net current period other comprehensive income (loss) | 8,359 | (4,789) | (7,911) |
Balance end of period | (19,762) | (28,121) | (23,332) |
Accumulated other comprehensive (loss) income | |||
Rollforward of the amounts included in AOCI, net of taxes | |||
Balance beginning of period | (36,295) | (26,132) | (17,316) |
Other comprehensive income (loss) before reclassifications, net of tax | 16,903 | (11,705) | (10,200) |
Amounts reclassified to earnings, net of tax | 389 | 1,542 | 1,384 |
Net current period other comprehensive income (loss) | 17,292 | (10,163) | (8,816) |
Balance end of period | (19,003) | (36,295) | (26,132) |
Foreign currency hedge instruments | |||
Rollforward of the amounts included in AOCI, net of taxes | |||
Balance beginning of period | (5,563) | (967) | (102) |
Other comprehensive income (loss) before reclassifications, net of tax | 8,458 | (6,081) | (2,197) |
Amounts reclassified to earnings, net of tax | 279 | 1,485 | 1,332 |
Net current period other comprehensive income (loss) | 8,737 | (4,596) | (865) |
Balance end of period | $ 3,174 | $ (5,563) | $ (967) |
Foreign currency forward cont_2
Foreign currency forward contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Purchase of inventory from use of forward contracts in Swedish krona (as a percent) | 93.00% | 78.00% | 80.00% |
Foreign currency hedge instruments | Designated as Hedging Instrument | Cash Flow Hedging | |||
Unrealized gain for settled foreign currency hedge instruments | $ 1,025 | ||
Unrealized gain to be reclassified into earnings over the next 12 months | 1,025 | ||
Gain in accumulated other comprehensive loss related to foreign currency hedge instruments | $ 3,174 | ||
Minimum | Foreign currency forward contracts | |||
Term of contract | 1 month | 1 month | 1 month |
Maximum | Foreign currency forward contracts | |||
Term of contract | 12 months | 12 months | 12 months |
Leases (Details)
Leases (Details) $ in Thousands | Apr. 03, 2021USD ($)store | Mar. 28, 2020USD ($) |
Leases | ||
Number of store locations | store | 93 | |
Deferred cash lease payments | $ | $ 4,700 | $ 11,900 |
Minimum | ||
Leases | ||
Expiration term | 1 year | |
Maximum | ||
Leases | ||
Expiration term | 20 years |
Leases - Components of lease co
Leases - Components of lease costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Lease costs | ||
Operating lease costs | $ 90,841 | $ 90,367 |
Variable lease costs | 1,056 | 1,243 |
Total lease costs | $ 91,897 | $ 91,610 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Leases | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 86,720 | $ 90,386 |
Additions to right-of-use assets | $ 57,708 | $ 52,489 |
Leases - Weighted average remai
Leases - Weighted average remaining operating lease term and incremental borrowing rate (Details) | Apr. 03, 2021 | Mar. 28, 2020 |
Leases | ||
Weighted average remaining lease term (years) | 6 years 10 months 24 days | 7 years 1 month 6 days |
Weighted average incremental borrowing rate | 13.50% | 8.80% |
Leases - Future minimum lease p
Leases - Future minimum lease payments (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Mar. 28, 2020 |
Operating leases | ||
Within 1 year | $ 93,032 | |
2 years | 82,545 | |
3 years | 75,294 | |
4 years | 67,992 | |
5 years | 57,906 | |
Thereafter | 151,503 | |
Total lease payments | 528,272 | |
Less amount representing interest | (192,403) | |
Total lease liability | 335,869 | |
Less current lease liability | (50,847) | $ (62,476) |
Total non-current lease liability | $ 285,022 | $ 317,284 |
Commitments and contingencies (
Commitments and contingencies (Details) $ in Thousands | Apr. 03, 2021USD ($) |
Standby letters of credit | |
Commitments and contingencies | |
Amount outstanding | $ 4,048 |
Fair value measurements (Detail
Fair value measurements (Details) - Recurring - USD ($) $ in Thousands | Apr. 03, 2021 | Mar. 28, 2020 |
Assets | ||
Total assets | $ 8,613 | $ 5,066 |
Other current assets | ||
Assets | ||
Nonqualified retirement plan | 5,707 | $ 5,066 |
Foreign currency forward contracts | Level 2 | Other current assets | ||
Assets | ||
Foreign currency forward contracts | $ 2,906 |
Fair value measurements - Estim
Fair value measurements - Estimated fair value of long-term debt, including current maturities (Details) - Level 2 - USD ($) $ in Thousands | Apr. 03, 2021 | Mar. 28, 2020 |
Fair value measurements | ||
Total fair value of debt | $ 174,399 | $ 285,365 |
The 2019 Elfa Revolving Credit Facility | ||
Fair value measurements | ||
Total fair value of debt | 9,050 | |
Revolving Credit Facility | ||
Fair value measurements | ||
Total fair value of debt | 78,000 | |
Senior Secured Term Loan Facility | ||
Fair value measurements | ||
Total fair value of debt | 174,064 | 198,041 |
Obligations under finance leases | ||
Fair value measurements | ||
Total fair value of debt | $ 335 | $ 274 |
Segment reporting - Earnings or
Segment reporting - Earnings or loss before income taxes for operating segments (Details) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021USD ($)countrysegment | Mar. 28, 2020USD ($) | Mar. 30, 2019USD ($) | |
Segment reporting | |||
Number of reportable segments | segment | 2 | ||
Net sales | $ 990,088 | $ 915,953 | $ 895,093 |
Adjusted EBITDA | 150,523 | 90,771 | 96,347 |
Depreciation and amortization | 34,731 | 38,638 | 36,305 |
Interest expense, net | 17,268 | 21,541 | 27,275 |
Capital expenditures | 17,176 | 33,619 | 33,670 |
Goodwill | 202,815 | 202,815 | 202,815 |
Trade names | 227,669 | 222,769 | 225,150 |
Assets | $ 1,078,469 | 1,166,814 | 748,744 |
Elfa | |||
Segment reporting | |||
Number of Countries in which Products Sold on Wholesale Basis | country | 30 | ||
Operating segments | TCS | |||
Segment reporting | |||
Net sales | $ 923,083 | 852,349 | 829,622 |
Adjusted EBITDA | 126,543 | 77,156 | 84,041 |
Depreciation and amortization | 31,043 | 34,608 | 31,924 |
Interest expense, net | 16,947 | 21,200 | 27,016 |
Capital expenditures | 15,073 | 30,500 | 31,176 |
Goodwill | 202,815 | 202,815 | 202,815 |
Trade names | 187,048 | 187,048 | 187,048 |
Assets | 979,411 | 1,073,888 | 649,351 |
Operating segments | Elfa | |||
Segment reporting | |||
Net sales | 67,005 | 63,604 | 65,471 |
Adjusted EBITDA | 24,865 | 16,988 | 12,563 |
Depreciation and amortization | 3,688 | 4,030 | 4,381 |
Interest expense, net | 321 | 341 | 259 |
Capital expenditures | 2,103 | 3,119 | 2,494 |
Trade names | 40,621 | 35,721 | 38,102 |
Assets | 106,408 | 99,587 | 103,347 |
lntersegment | |||
Segment reporting | |||
Net sales | (62,918) | (61,955) | (57,849) |
Adjusted EBITDA | (885) | (3,373) | (257) |
Assets | (7,350) | (6,661) | (3,954) |
lntersegment | Elfa | |||
Segment reporting | |||
Net sales | $ 62,918 | $ 61,955 | $ 57,849 |
Segment reporting - Reconciliat
Segment reporting - Reconciliation of Adjusted EBITDA by segment to income before taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Segment reporting | |||
Income before taxes | $ 80,843 | $ 21,202 | $ 21,961 |
Depreciation and amortization | 34,731 | 38,638 | 36,305 |
Interest expense, net | 17,268 | 21,541 | 27,275 |
Pre-opening costs | 1,026 | 8,237 | 2,103 |
Non-cash lease expense | 4,147 | (2,169) | (1,327) |
Stock-based compensation | 7,823 | 3,110 | 2,846 |
Management transition costs | 1,200 | ||
Loss on extinguishment of debt | 893 | 2,082 | |
Foreign exchange (gains) losses | 200 | (167) | 60 |
Optimization Plan implementation charges | 4,864 | ||
Elfa France closure | 402 | ||
Employee retention credit | (1,028) | ||
COVID-19 costs | 2,266 | ||
Severance and other (credit) costs | 1,154 | (23) | 178 |
Adjusted EBITDA | 150,523 | 90,771 | $ 96,347 |
Deferred cash lease payments | $ 4,700 | $ 11,900 |
Segment reporting - Sales by me
Segment reporting - Sales by merchandise category as a percentage of total net sales (Details) | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 100.00% | 100.00% | 100.00% |
Net sales | Sales by merchandise category | Custom Closets | |||
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 50.00% | 51.00% | 49.00% |
Net sales | Sales by merchandise category | Storage, Long-Term Storage, Shelving | |||
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 14.00% | 13.00% | 14.00% |
Net sales | Sales by merchandise category | Kitchen and Trash | |||
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 18.00% | 14.00% | 14.00% |
Net sales | Sales by merchandise category | Office, Collections, Hooks | |||
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 8.00% | 8.00% | 8.00% |
Net sales | Sales by merchandise category | Bath, Travel, Laundry | |||
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 5.00% | 7.00% | 8.00% |
Net sales | Sales by merchandise category | Containers, Gift Packaging, Seasonal, Impulse | |||
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 4.00% | 5.00% | 6.00% |
Net sales | Sales by merchandise category | Other | |||
Sales by merchandise category as a percentage of total net sales | |||
Merchandise category as a percentage of total net sales | 1.00% | 2.00% | 1.00% |
Net income per common share (De
Net income per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Numerator: | |||
Net income | $ 58,283 | $ 14,487 | $ 21,680 |
Denominator: | |||
Weighted-average common shares - basic (in shares) | 48,537,883 | 48,819,783 | 48,139,929 |
Options and other dilutive securities | 1,174,754 | 144,781 | 260,478 |
Weighted-average common shares - diluted (in shares) | 49,712,637 | 48,964,564 | 48,400,407 |
Net income per common share - basic | $ 1.20 | $ 0.30 | $ 0.45 |
Net income per common share - diluted | $ 1.17 | $ 0.30 | $ 0.45 |
Stock Options | |||
Antidilutive securities not included: | |||
Antidilutive securities | 1,941,192 | 2,389,820 | 2,436,321 |
Nonvested restricted stock awards | |||
Antidilutive securities not included: | |||
Antidilutive securities | 28,969 | 148,066 | 102,725 |
Subsequent Event (Details)
Subsequent Event (Details) - $ / shares | Jun. 01, 2021 | Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 |
Subsequent Event | ||||
Total number of restricted shares granted (in shares) | 1,611,857 | 778,719 | ||
Grant date fair value | $ 4.03 | $ 6.84 | $ 7.56 | |
Performance Based Restricted Stock Awards [Member] | Subsequent event | ||||
Subsequent Event | ||||
Total number of restricted shares granted (in shares) | 335,719 | |||
Grant date fair value | $ 13.22 | |||
Vesting period | 3 years |
Schedule I-Condensed Financia_2
Schedule I-Condensed Financial Information of registrant - Condensed balance sheets (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | Mar. 31, 2018 |
Current assets: | ||||
Accounts receivable from subsidiaries | $ 28,949 | $ 24,721 | ||
Total current assets | 203,324 | 242,166 | ||
Noncurrent assets: | ||||
Total noncurrent assets | 875,145 | 924,648 | ||
Total assets | 1,078,469 | 1,166,814 | $ 748,744 | |
Current liabilities: | ||||
Accounts payable to subsidiaries | 68,546 | 53,647 | ||
Total current liabilities | 214,913 | 198,171 | ||
Noncurrent liabilities | 509,887 | 696,935 | ||
Total liabilities | 724,800 | 895,106 | ||
Shareholders' equity: | ||||
Common stock | 488 | 483 | ||
Additional paid-in capital | 873,048 | 866,667 | ||
Retained deficit | (500,864) | (559,147) | ||
Total shareholders' equity | 353,669 | 271,708 | $ 264,693 | $ 248,707 |
Total liabilities and shareholders' equity | 1,078,469 | 1,166,814 | ||
The Container Store Group, Inc. | ||||
Current assets: | ||||
Accounts receivable from subsidiaries | 621 | 1,128 | ||
Total current assets | 621 | 1,128 | ||
Noncurrent assets: | ||||
Investment in subsidiaries | 353,103 | 270,635 | ||
Total noncurrent assets | 353,103 | 270,635 | ||
Total assets | 353,724 | 271,763 | ||
Current liabilities: | ||||
Accounts payable to subsidiaries | 55 | 55 | ||
Total liabilities | 55 | 55 | ||
Shareholders' equity: | ||||
Common stock | 488 | 483 | ||
Additional paid-in capital | 873,048 | 866,667 | ||
Retained deficit | (519,867) | (595,442) | ||
Total shareholders' equity | 353,669 | 271,708 | ||
Total liabilities and shareholders' equity | $ 353,724 | $ 271,763 |
Schedule I-Condensed Financia_3
Schedule I-Condensed Financial Information of registrant - Condensed statements of operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Condensed statements of operations | |||
Net sales | $ 990,088 | $ 915,953 | $ 895,093 |
Cost of sales (excluding depreciation and amortization) | 419,611 | 382,488 | 371,410 |
Gross profit | 570,477 | 533,465 | 523,683 |
Selling, general, and administrative expenses (excluding depreciation and amortization) | 426,765 | 440,362 | 430,997 |
Stock-based compensation | 7,823 | 3,110 | 2,846 |
Pre-opening costs | 1,026 | 8,237 | 2,103 |
Depreciation and amortization | 34,731 | 38,638 | 36,305 |
Other expenses | 1,112 | 377 | 177 |
Loss (gain) on disposal of assets | 16 | (2) | (63) |
Income from operations | 99,004 | 42,743 | 51,318 |
Interest expense, net | 17,268 | 21,541 | 27,275 |
Income before taxes | 80,843 | 21,202 | 21,961 |
Provision for income taxes | 22,560 | 6,715 | 281 |
Net income | 58,283 | 14,487 | 21,680 |
The Container Store Group, Inc. | |||
Condensed statements of operations | |||
Net income of subsidiaries | 58,283 | 14,487 | 21,680 |
Net income | $ 58,283 | $ 14,487 | $ 21,680 |
Schedule I-Condensed Financia_4
Schedule I-Condensed Financial Information of registrant - Condensed statements of comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Condensed statements of comprehensive income | |||
Net income | $ 58,283 | $ 14,487 | $ 21,680 |
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) of $3,071, ($1,587), and ($304) | 8,737 | (4,596) | (865) |
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) of $3,071, ($1,587), and ($304) | 3,071 | (1,587) | (304) |
Pension liability adjustment, net of tax provision (benefit) of $53, ($202), and ($11) | 196 | (778) | (40) |
Pension liability adjustment, taxes | (53) | 202 | 11 |
Foreign currency translation adjustment | 8,359 | (4,789) | (7,911) |
Comprehensive income | 75,575 | 4,324 | 12,864 |
The Container Store Group, Inc. | |||
Condensed statements of comprehensive income | |||
Net income | 58,283 | 14,487 | 21,680 |
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) of $3,071, ($1,587), and ($304) | 8,737 | (4,596) | (865) |
Unrealized gain (loss) on financial instruments, net of tax provision (benefit) of $3,071, ($1,587), and ($304) | 3,071 | (1,587) | (304) |
Pension liability adjustment, net of tax provision (benefit) of $53, ($202), and ($11) | 196 | (778) | (40) |
Pension liability adjustment, taxes | 53 | (202) | (11) |
Foreign currency translation adjustment | 8,359 | (4,789) | (7,911) |
Comprehensive income | $ 75,575 | $ 4,324 | $ 12,864 |
Schedule I-Condensed Financia_5
Schedule I-Condensed Financial Information of registrant - Condensed statements of comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Mar. 30, 2019 | |
Condensed Statements of Comprehensive Income (Loss) Captions [Line Items] | |||
Unrealized gain (loss) on financial instruments, net of tax provision | $ 3,071 | $ (1,587) | $ (304) |
Pension liability adjustment, net of tax provision (benefit) of $53, ($202), and ($11) | 53 | (202) | (11) |
The Container Store Group, Inc. | |||
Condensed Statements of Comprehensive Income (Loss) Captions [Line Items] | |||
Unrealized gain (loss) on financial instruments, net of tax provision | 3,071 | (1,587) | (304) |
Pension liability adjustment, net of tax provision (benefit) of $53, ($202), and ($11) | $ (53) | $ 202 | $ 11 |
Schedule I-Condensed Financia_6
Schedule I-Condensed Financial Information of registrant - Disclosure (Details) $ in Thousands | Nov. 25, 2020USD ($) | Apr. 03, 2021USD ($) | Apr. 03, 2021USD ($) | Mar. 28, 2020USD ($) |
Guarantees and restrictions | ||||
Long-term debt outstanding | $ 174,835 | $ 174,835 | $ 339,606 | |
Base rate | ||||
Guarantees and restrictions | ||||
Interest rate margin (as a percent) | 3.75% | |||
Revolving Credit Facility | ||||
Guarantees and restrictions | ||||
Long-term debt outstanding | 78,000 | |||
Amount of dividend payable during term of debt | 15,000 | 15,000 | ||
Available credit | 96,467 | 96,467 | ||
Borrowings under the Senior Secured Term Loan Facility, net of deferred financing costs | $ 100,000 | |||
Revolving Credit Facility | LIBOR | ||||
Guarantees and restrictions | ||||
Interest rate margin (as a percent) | 1.25% | |||
Minimum | Revolving Credit Facility | ||||
Guarantees and restrictions | ||||
Amount of dividend payable during term of debt | $ 12,500 | |||
Threshold fixed charge coverage ratio for payment of dividend | 1.10 | |||
Senior Secured Term Loan Facility | ||||
Guarantees and restrictions | ||||
Long-term debt outstanding | 174,500 | 174,500 | $ 252,282 | |
Debt Instrument leverage ratio covenant | 2.75 | |||
Fee premium imposed on voluntary prepayments (as a percent) | 1.00% | |||
Principal repayments | $ 47,200 | |||
Outstanding borrowings | 200,000 | 165,649 | 165,649 | |
Amount of quarterly amortization payments | 500 | |||
Loss on extinguishment of debt | $ 893 | |||
Repayments of Secured Debt | 25,500 | |||
Senior Secured Term Loan Facility | LIBOR | ||||
Guarantees and restrictions | ||||
Interest rate margin (as a percent) | 4.75% | |||
Floor interest rate for reference rate (as a percent) | 1.00% | |||
Senior Secured Term Loan Facility | Maximum | LIBOR | ||||
Guarantees and restrictions | ||||
Interest rate margin (as a percent) | 5.00% | |||
Senior Secured Term Loan Facility | Maximum | Base rate | ||||
Guarantees and restrictions | ||||
Interest rate margin (as a percent) | 4.00% | |||
The Container Store Group, Inc. | ||||
Guarantees and restrictions | ||||
Restricted net assets of consolidated subsidiaries | 341,169 | 341,169 | ||
Available credit | 96,467 | 96,467 | ||
The Container Store Group, Inc. | Base rate | ||||
Guarantees and restrictions | ||||
Interest rate margin (as a percent) | 3.75% | |||
The Container Store Group, Inc. | Revolving Credit Facility | ||||
Guarantees and restrictions | ||||
Borrowings under the Senior Secured Term Loan Facility, net of deferred financing costs | 100,000 | $ 100,000 | ||
The Container Store Group, Inc. | Minimum | Revolving Credit Facility | ||||
Guarantees and restrictions | ||||
Threshold fixed charge coverage ratio for payment of dividend | 1.25 | |||
The Container Store Group, Inc. | Maximum | LIBOR | ||||
Guarantees and restrictions | ||||
Interest rate margin (as a percent) | 5.00% | |||
The Container Store Group, Inc. | Maximum | Base rate | ||||
Guarantees and restrictions | ||||
Interest rate margin (as a percent) | 4.00% | |||
The Container Store Group, Inc. | Maximum | Revolving Credit Facility | ||||
Guarantees and restrictions | ||||
Amount of dividend payable during term of debt | $ 10,000 | 10,000 | $ 10,000 | |
The Container Store Group, Inc. | Senior Secured Term Loan Facility | ||||
Guarantees and restrictions | ||||
Long-term debt outstanding | $ 174,500 | |||
Debt Instrument leverage ratio covenant | 2.75 | |||
Fee premium imposed on voluntary prepayments (as a percent) | 1.00% | |||
Borrowings under the Senior Secured Term Loan Facility, net of deferred financing costs | 165,649 | $ 165,649 | ||
Principal repayments | $ 47,200 | |||
Outstanding borrowings | 200,000 | |||
Amount of quarterly amortization payments | 500 | |||
Loss on extinguishment of debt | $ 893 | |||
Repayments of Secured Debt | $ 25,500 | |||
The Container Store Group, Inc. | Senior Secured Term Loan Facility | LIBOR | ||||
Guarantees and restrictions | ||||
Interest rate margin (as a percent) | 4.75% | |||
Floor interest rate for reference rate (as a percent) | 1.00% | |||
The Container Store Group, Inc. | Senior Secured Term Loan Facility | Maximum | ||||
Guarantees and restrictions | ||||
Threshold consolidated net leverage ratio for payment of dividend | 2 |