|3 Months Ended|
Mar. 31, 2020
|Subsequent Events [Abstract]|
|Subsequent Events||SUBSEQUENT EVENTS
Redemption of Common Units of the Operating Company
On April 20, 2020, the Operating Company received a redemption notice for 1.3 million Common Units. Based upon this redemption notice, pursuant to the terms of the Operating Agreement, we issued shares of Class A common stock on April 30, 2020, to the redeeming member of the Operating Company on a one-to-one basis to the number of Common Units redeemed, and we also cancelled an equivalent number of shares of Class B common stock held by the redeeming member for no consideration. The shares of Class A common stock were issued in reliance upon an exemption from registration provided under Section 4(a)(2) of the Securities Act of 1933, as amended.
Distribution Center Consolidation
We are in process of executing our business transformation plan whereby we are transitioning to a streamlined distribution center network with fewer, centrally-located, highly automated facilities. As part of this plan, we closed our Schenectady, New York and Delta, Canada distribution centers on May 14, 2020 and May 15, 2020, respectively, and we plan to close our Jacksonville, Florida, Torrance, California and Visalia, California distribution centers in June 2020. The aggregate ROU asset and operating lease liability balances for these distribution centers were approximately $1.1 million and $1.2 million as of March 31, 2020, respectively. We anticipate impairing the ROU assets and derecognizing the corresponding operating lease liabilities during the second quarter of 2020. Additionally, we anticipate incurring a lease cancellation fee of approximately $0.3 million related to our Torrance, California distribution center, and we may incur additional fees during the course of our negotiations to amend or terminate our existing lease agreements.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef