Restructuring and other related costs

6 Months Ended

Sep. 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”).

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


	Three months ended September 30,				Six months ended September 30,
	2020		2019		2020		2019


Gain from extinguishment of lease liabilities	$	—	$	(5,096)	$	—	$	(7,733)

Other costs, including other asset write-offs	—		898		—		1,743
Total	$	—	$	(4,198)	$	—	$	(5,990)

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 and six months ended September 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. Accordingly, there were no restructuring expenses incurred during the three and six months ended September 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 and six months ended September 30, 2020. The following table presents a roll-forward of the Company's restructuring liability for the three and six months ended September 30, 2019 (in thousands):


	Employee severance and related expenses		Other costs		Total
June 30, 2019	$	—	$	318	$	318
Costs incurred	—		898		898
Cash disbursements	—		(373)		(373)
Other adjustments	—		(6)		(6)
September 30, 2019	$	—	$	837	$	837


	Employee severance and related expenses		Other costs		Total
March 31, 2019	$	96	$	675	$	771
Costs incurred	(22)		1,765		1,743
Cash disbursements	(74)		(1,466)		(1,540)
Other adjustments	—		(137)		(137)
September 30, 2019	$	—	$	837	$	837

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.