Business Segments

9 Months Ended

Dec. 31, 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 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 nine months ended December 31, 2014 to conform to the current period presentation. See Note 1 “General”, Note 13 "Subsequent Events" 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 Ahnu, MOZO and TSUBO brands.

Business segment information is summarized as follows:

	Three Months Ended   December 31,						Nine Months Ended   December 31,
	2015			2014			2015			2014
Net sales to external customers:
UGG wholesale	$	399,566		$	401,702		$	810,647		$	815,694
Teva wholesale	12,697			12,373			63,866			65,641
Sanuk wholesale	13,472			17,763			55,309			66,047
Other brands wholesale	18,841			13,211			68,379			47,153
Direct-to-Consumer	351,326			339,629			498,361			481,885
	$	795,902		$	784,678		$	1,496,562		$	1,476,420
Income (loss) from operations:
UGG wholesale	$	123,795		$	135,893		$	237,209		$	261,614
Teva wholesale	(214		)	(660		)	5,218			3,812
Sanuk wholesale	2,938			(282		)	8,263			9,307
Other brands wholesale	(963		)	(4,522		)	(4,680		)	(9,104		)
Direct-to-Consumer	120,659			141,308			95,847			127,235
Unallocated overhead costs	(43,715		)	(57,156		)	(151,852		)	(169,182		)
	$	202,500		$	214,581		$	190,005		$	223,682

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:

	December 31, 2015		March 31, 2015
Total assets for reportable segments:
UGG wholesale	$	395,924	$	194,720
Teva wholesale	54,257		77,423
Sanuk wholesale	194,985		224,974
Other brands wholesale	59,788		53,634
Direct-to-Consumer	191,299		147,423
	$	896,253	$	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:

	December 31, 2015		March 31, 2015
Total assets for reportable segments	$	896,253	$	698,174
Unallocated cash and cash equivalents	263,009		225,143
Unallocated deferred tax assets	23,661		29,083
Other unallocated corporate assets	225,228		217,533
Consolidated total assets	$	1,408,151	$	1,169,933