Business Segments

6 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company’s reportable segments include the strategic business units for the worldwide wholesale operations of the UGG brand, Teva brand, Sanuk brand, and other brands, and its Direct-to-Consumer (DTC) business.  The Company’s other brands include Ahnu®, Hoka One One® (Hoka), Koolaburra®, MOZO®, and TSUBO®.  The income (loss) from operations for each of the segments includes only those costs that are specifically related to each segment, which consist primarily of cost of sales, costs for research and development, design, selling and marketing, depreciation, amortization, and the costs of employees and their respective expenses that are directly related to each segment.  The unallocated corporate overhead costs include: costs of the distribution centers, certain executive and stock compensation, accounting and finance, legal, information technology, human resources, and facilities costs, among others. Certain reclassifications were made for the three and six months ended September 30, 2014 to conform to the current period presentation. See Note 1 “General” and Item 2 of this Quarterly Report “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further disclosure and discussion of the change in segment reporting and the recent strategic initiatives related to the MOZO and TSUBO brands.

Business segment information is summarized as follows:

	Three Months Ended   September 30,						Six Months Ended   September 30,
	2015			2014			2015			2014
Net sales to external customers:
UGG wholesale	$	344,659		$	339,799		$	411,081		$	413,992
Teva wholesale	14,103			17,603			51,169			53,268
Sanuk wholesale	13,324			15,955			41,837			48,284
Other brands wholesale	28,153			22,117			49,538			33,942
Direct-to-Consumer	86,616			84,799			147,035			142,256
	$	486,855		$	480,273		$	700,660		$	691,742
Income (loss) from operations:
UGG wholesale	$	116,794		$	123,029		$	113,414		$	125,722
Teva wholesale	(442		)	(310		)	5,432			4,472
Sanuk wholesale	(23		)	2,684			5,325			9,589
Other brands wholesale	283			(571		)	(3,717		)	(4,582		)
Direct-to-Consumer	(9,607		)	968			(24,812		)	(14,074		)
Unallocated overhead costs	(55,792		)	(66,217		)	(108,137		)	(112,026		)
	$	51,213		$	59,583		$	(12,495	)	$	9,101

Inter-segment sales from the Company’s wholesale segments to the Company’s DTC segment are at the Company’s cost, and there is no inter-segment profit on these inter-segment sales.  Income (loss) from operations of the wholesale segments does not include any inter-segment gross profit from sales to the DTC segment. 

Business segment asset information is summarized as follows:

	September 30, 2015		March 31, 2015
Total assets for reportable segments:
UGG wholesale	$	728,931	$	194,720
Teva wholesale	46,483		77,423
Sanuk wholesale	194,238		224,974
Other brands wholesale	55,457		53,634
Direct-to-Consumer	175,098		147,423
	$	1,200,207	$	698,174

The assets allocable to each segment include accounts receivable, inventory, fixed assets, goodwill, other intangible assets, and certain other assets that are specifically identifiable with one of the Company’s segments.  Unallocated assets are the assets not specifically related to the segments and include cash and cash equivalents, deferred tax assets, and various other assets shared by the Company’s segments.  Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets are as follows:

	September 30, 2015		March 31, 2015
Total assets for reportable segments	$	1,200,207	$	698,174
Unallocated cash and cash equivalents	99,775		225,143
Unallocated deferred tax assets	29,199		29,083
Other unallocated corporate assets	243,485		217,533
Consolidated total assets	$	1,572,666	$	1,169,933