v3.24.3
Leases
 6 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Leases Leases
The Company leases warehouses, distribution centers, office space and equipment. The majority of the Company's leases include one or more options to renew, with renewal terms that can extend the lease term for up to five years. The exercise of lease renewal options is at the Company's sole discretion and such renewal options are included in the lease term if they are reasonably certain to be exercised. Certain leases also include options to purchase the leased asset. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's equipment leases are finance leases of assets used to operate its distribution center in Ontario, California.
Supplemental balance sheet information related to leases as of September 30, 2024, March 31, 2024 and September 30, 2023 is as follows (in thousands):
 ClassificationSeptember 30, 2024March 31, 2024September 30, 2023
Assets
Operating lease assets Other assets$43,289 $27,415 $17,269 
Finance lease assets (a)
Other assets— — 35 
Total leased assets$43,289 $27,415 $17,304 
Liabilities
Current
Operating Accrued expenses and other current liabilities$8,192 $7,016 $4,172 
Finance
Current portion of long-term debt
— 57 228 
Noncurrent
Operating Long-term operating lease obligations36,176 21,459 14,559 
Total lease liabilities$44,368 $28,532 $18,959 
_____________________
(a) Finance leases are recorded net of accumulated amortization of $1.3 million, $1.5 million and $3.6 million as of September 30, 2024, March 31, 2024 and September 30, 2023, respectively.
For the three and six months ended September 30, 2024 and September 30, 2023, the components of operating and finance lease costs were as follows (in thousands):
Three months ended September 30,Six months ended September 30,
 Classification2024202320242023
Operating lease cost Selling, general and administrative (“SG&A”) expenses$3,046 $1,425 $5,563 $2,702 
Finance lease cost
Amortization of leased assetsSG&A expenses— 105 — 210 
Interest on lease liabilitiesInterest expense, net— 3 — 7 
Total lease cost $3,046 $1,533 $5,563 $2,919 
As of September 30, 2024, the aggregate future minimum lease payments under non-cancellable operating leases presented in accordance with ASC 842 are as follows (in thousands):
Remainder of fiscal 2025$4,609 
20266,114 
20278,484 
20285,705 
20296,011 
Thereafter28,797 
Total lease payments59,720 
Less: Interest15,352 
Present value of lease liabilities$44,368 
As of September 30, 2024 and September 30, 2023, the weighted-average remaining lease term (in years) and discount rate were as follows:
 September 30, 2024September 30, 2023
Weighted-average remaining lease term
Operating leases6.6 years5.9 years
Finance leases— 0.7 years
Weighted-average discount rate
Operating leases5.9 %3.7 %
Finance leases— %1.6 %
Operating cash outflows from operating leases for the six months ended September 30, 2024 and September 30, 2023 were $4.6 million and $2.5 million, respectively. Right-of-use assets obtained in exchange for lease obligations for the six months ended September 30, 2024 and September 30, 2023 were $19.6 million and $5.3 million, respectively.
Leases Leases
The Company leases warehouses, distribution centers, office space and equipment. The majority of the Company's leases include one or more options to renew, with renewal terms that can extend the lease term for up to five years. The exercise of lease renewal options is at the Company's sole discretion and such renewal options are included in the lease term if they are reasonably certain to be exercised. Certain leases also include options to purchase the leased asset. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the Company's equipment leases are finance leases of assets used to operate its distribution center in Ontario, California.
Supplemental balance sheet information related to leases as of September 30, 2024, March 31, 2024 and September 30, 2023 is as follows (in thousands):
 ClassificationSeptember 30, 2024March 31, 2024September 30, 2023
Assets
Operating lease assets Other assets$43,289 $27,415 $17,269 
Finance lease assets (a)
Other assets— — 35 
Total leased assets$43,289 $27,415 $17,304 
Liabilities
Current
Operating Accrued expenses and other current liabilities$8,192 $7,016 $4,172 
Finance
Current portion of long-term debt
— 57 228 
Noncurrent
Operating Long-term operating lease obligations36,176 21,459 14,559 
Total lease liabilities$44,368 $28,532 $18,959 
_____________________
(a) Finance leases are recorded net of accumulated amortization of $1.3 million, $1.5 million and $3.6 million as of September 30, 2024, March 31, 2024 and September 30, 2023, respectively.
For the three and six months ended September 30, 2024 and September 30, 2023, the components of operating and finance lease costs were as follows (in thousands):
Three months ended September 30,Six months ended September 30,
 Classification2024202320242023
Operating lease cost Selling, general and administrative (“SG&A”) expenses$3,046 $1,425 $5,563 $2,702 
Finance lease cost
Amortization of leased assetsSG&A expenses— 105 — 210 
Interest on lease liabilitiesInterest expense, net— 3 — 7 
Total lease cost $3,046 $1,533 $5,563 $2,919 
As of September 30, 2024, the aggregate future minimum lease payments under non-cancellable operating leases presented in accordance with ASC 842 are as follows (in thousands):
Remainder of fiscal 2025$4,609 
20266,114 
20278,484 
20285,705 
20296,011 
Thereafter28,797 
Total lease payments59,720 
Less: Interest15,352 
Present value of lease liabilities$44,368 
As of September 30, 2024 and September 30, 2023, the weighted-average remaining lease term (in years) and discount rate were as follows:
 September 30, 2024September 30, 2023
Weighted-average remaining lease term
Operating leases6.6 years5.9 years
Finance leases— 0.7 years
Weighted-average discount rate
Operating leases5.9 %3.7 %
Finance leases— %1.6 %
Operating cash outflows from operating leases for the six months ended September 30, 2024 and September 30, 2023 were $4.6 million and $2.5 million, respectively. Right-of-use assets obtained in exchange for lease obligations for the six months ended September 30, 2024 and September 30, 2023 were $19.6 million and $5.3 million, respectively.