Business Segments

3 Months Ended

Jun. 30, 2016

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, other brands, and its DTC business. The Company’s other brands consist of Hoka, Ahnu and Koolaburra.

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 generally include costs associated with the distribution centers, executive compensation, accounting and finance, legal, information technology, human resources, and facilities, among others.

See Note 2 “Restructuring” and the section entitled Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report for further discussion of the change in segment results.

Business segment net sales and income (loss) information is summarized as follows:

	Three Months Ended   June 30,
	2016			2015
Net sales to external customers:
UGG wholesale	$	45,901		$	66,422
Teva wholesale	29,525			37,066
Sanuk wholesale	22,303			28,513
Other brands wholesale	18,411			21,385
Direct-to-Consumer	58,253			60,419
	$	174,393		$	213,805
Income (loss) from operations:
UGG wholesale	$	(10,212	)	$	(3,380	)
Teva wholesale	1,862			5,874
Sanuk wholesale	4,181			5,348
Other brands wholesale	(1,630		)	(4,000		)
Direct-to-Consumer	(19,419		)	(15,205		)
Unallocated overhead costs	(53,101		)	(52,345		)
	$	(78,319	)	$	(63,708	)

Inter-segment sales from the Company’s wholesale segments to the 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:

	June 30, 2016		March 31, 2016
Total assets for reportable segments:
UGG wholesale	$	402,515	$	248,937
Teva wholesale	65,070		87,225
Sanuk wholesale	205,089		212,816
Other brands wholesale	66,559		65,072
Direct-to-Consumer	122,934		148,733
	$	862,167	$	762,783

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 generally include cash and cash equivalents, deferred tax assets, and various other assets shared by the Company’s segments.

A reconciliation of total assets from the reportable segments to the condensed consolidated balance sheet is as follows:

	June 30, 2016		March 31, 2016
Total assets for reportable segments	$	862,167	$	762,783
Unallocated cash and cash equivalents	202,309		245,956
Unallocated deferred tax assets	21,038		20,636
Other unallocated corporate assets	272,231		248,693
Consolidated total assets	$	1,357,745	$	1,278,068