Business Segments

9 Months Ended

Dec. 31, 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 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 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   December 31,						Nine Months Ended   December 31,
	2016			2015			2016			2015
Net sales to external customers:
UGG brand wholesale	$	342,019		$	399,566		$	725,772		$	810,647
Teva brand wholesale	12,653			12,697			54,424			63,866
Sanuk brand wholesale	10,264			13,472			47,596			55,309
Other brands wholesale	23,658			18,841			76,899			68,379
Direct-to-Consumer	371,751			351,326			515,991			498,361
Total	$	760,345		$	795,902		$	1,420,682		$	1,496,562
Income (loss) from operations:
UGG brand wholesale	$	107,335		$	123,795		$	209,633		$	237,209
Teva brand wholesale	(560		)	(214		)	(819		)	5,218
Sanuk brand wholesale	(119,968		)	2,938			(115,998		)	8,263
Other brands wholesale	(958		)	(963		)	(226		)	(4,680		)
Direct-to-Consumer	122,158			120,659			96,647			95,847
Unallocated overhead costs	(54,757		)	(43,715		)	(160,283		)	(151,852		)
Total	$	53,250		$	202,500		$	28,954		$	190,005

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.

Business segment asset information is summarized as follows:

	December 31, 2016		March 31, 2016
Total assets for reportable segments:
UGG brand wholesale	$	419,280	$	248,937
Teva brand wholesale	58,835		87,225
Sanuk brand wholesale	70,811		212,816
Other brands wholesale	68,299		65,072
Direct-to-Consumer	154,052		148,733
Total	$	771,277	$	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:

	December 31, 2016		March 31, 2016
Total assets for reportable segments	$	771,277	$	762,783
Unallocated cash and cash equivalents	296,428		245,956
Unallocated deferred tax assets	57,136		20,636
Other unallocated corporate assets	244,464		248,693
Consolidated total assets	$	1,369,305	$	1,278,068