Business Segments

6 Months Ended

Sep. 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 the Hoka, Ahnu and Koolaburra brands.

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 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part I, Item 2 of this Quarterly Report for further discussion of the Company's segments.

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

	Three Months Ended   September 30,						Six Months Ended   September 30,
	2016			2015			2016			2015
Net sales to external customers:
UGG wholesale	$	337,852		$	344,659		$	383,753		$	411,081
Teva wholesale	12,246			14,103			41,771			51,169
Sanuk wholesale	15,030			13,324			37,333			41,837
Other brands wholesale	34,830			28,153			53,241			49,538
Direct-to-Consumer	85,986			86,616			144,239			147,035
	$	485,944		$	486,855		$	660,337		$	700,660
Income (loss) from operations:
UGG wholesale	$	112,510		$	116,794		$	102,298		$	113,414
Teva wholesale	(2,121		)	(442		)	(259		)	5,432
Sanuk wholesale	(211		)	(23		)	3,970			5,325
Other brands wholesale	2,362			283			732			(3,717		)
Direct-to-Consumer	(6,092		)	(9,607		)	(25,511		)	(24,812		)
Unallocated overhead costs	(52,425		)	(55,792		)	(105,526		)	(108,137		)
	$	54,023		$	51,213		$	(24,296	)	$	(12,495	)

Inter-segment sales from the Company’s wholesale segments to our 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 our DTC segment.

Business segment asset information is summarized as follows:

	September 30, 2016		March 31, 2016
Total assets for reportable segments:
UGG wholesale	$	731,318	$	248,937
Teva wholesale	45,186		87,225
Sanuk wholesale	188,538		212,816
Other brands wholesale	67,742		65,072
Direct-to-Consumer	139,353		148,733
	$	1,172,137	$	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:

	September 30, 2016		March 31, 2016
Total assets for reportable segments	$	1,172,137	$	762,783
Unallocated cash and cash equivalents	110,047		245,956
Unallocated deferred tax assets	21,574		20,636
Other unallocated corporate assets	268,843		248,693
Consolidated total assets	$	1,572,601	$	1,278,068