Restructuring and other related costs

3 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

In February 2019, the Company closed all 22 e.l.f. retail stores and implemented a workforce reduction of employees that operated and managed the e.l.f. retail stores (the “Restructuring Plan”).

In connection with the Restructuring Plan, the following table presents the restructuring (income) expenses incurred for the three months ended June 30, 2020 and June 30, 2019, respectively (in thousands):



	Three months ended June 30, 2020		Three months ended June 30, 2019
Gain from extinguishment of lease liabilities	$	—	$	(2,637	)
Other costs, including other asset write-offs	—		845
Total	$	—	$	(1,792	)

The gain from extinguishment of lease liabilities represents the difference between the aggregate operating lease liability and the aggregate cash payment incurred to extinguish such liability. The majority of the other costs incurred during the three months ended June 30, 2019 are legal fees related to these extinguishments. As of March 31, 2020, the Company had settled all outstanding lease liabilities related to its e.l.f. retail store closures and does not expect to incur additional costs associated with the Restructuring Plan. Therefore, there were no restructuring expenses incurred during the three months ended June 30, 2020.

Liabilities related to the Restructuring Plan are reported within accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets. There were no costs incurred or cash disbursements made during the three months ended June 30, 2020. The following table presents a roll-forward of the Company's restructuring liability for the three months ended June 30, 2019 (in thousands):



	Employee severance and related expenses			Other costs			Total
March 31, 2019	$	96		$	675		$	771
Costs incurred	(22		)	867			845
Cash disbursements	(74		)	(1,093		)	(1,167		)
Other adjustments	—			(131		)	(131		)
June 30, 2019	$	—		$	318		$	318

Outstanding lease liabilities are not included in the table above, as those liabilities were established upon adoption of ASC 842, not in connection with the Restructuring Plan.