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Property and Equipment
6 Months Ended
Sep. 30, 2016
Property, Plant and Equipment [Abstract]  
Property and Equipment

Note 4: Property and Equipment

 

Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets. The buildings located at 420 South Congress Avenue, Delray Beach, Florida, the Company’s new corporate headquarters and distribution facility (“the Property”) (described below) will be depreciated over a period of thirty years. The furniture, fixtures, equipment, and computer software are depreciated over periods ranging from three to seven years. Leasehold improvements and assets under capital lease agreements are amortized over the shorter of the underlying lease agreement or the useful life of the asset.

 

On December 22, 2015, the Company entered into an agreement for the purchase of the Property at a purchase price of $18.5 million, plus closing costs. The transaction closed on January 19, 2016. The Property consists of approximately 634,000 square feet of land or 14.6 acres with two building complexes totaling approximately 185,000 square feet, with additional land for future use. Once the Property is renovated to the Company’s specifications and ready for its operation, expected in the third quarter of fiscal 2017, the Company intends to occupy approximately 97,000 square feet for its corporate headquarters and distribution facility, and to continue to operate the remaining office and warehouse space pursuant to existing leases. At September 30, 2016, the Company paid approximately $5.8 million for building improvements and equipment related to the newly purchased Property, which was recorded as a prepaid current asset, since the Property will not be ready to be put into use until the quarter ending December 31, 2016.