Reportable Operating Segments

12 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Reportable Operating Segments

Reportable Operating Segments

The Company has five reportable operating segments consisting of the strategic business units for the worldwide wholesale operations of the UGG brand, Teva brand, Sanuk brand, other brands, and DTC. The Company's other brands currently consist of the Hoka, Koolaburra and Ahnu brands, and included the TSUBO and MOZO brands for the years ended March 31, 2016 and 2015.

The Company's accounting policies for each reportable operating segment are the same as those described in Note 1, "The Company and Summary of Significant Accounting Policies", except that the Company does not allocate corporate overhead costs or non-operating income and expenses to reportable operating segments. The Company evaluates reportable operating segment performance primarily based on net sales and income (loss) from operations.

The wholesale operations of each brand are managed separately because each requires different marketing, research and development, design, sourcing, and sales strategies. The income (loss) from operations for each of the reportable operating segments includes only those costs which are specifically related to each reportable operating segment, which consist primarily of cost of sales, costs for research and development, design, sales and marketing, depreciation, amortization, and the costs of employees and their respective expenses that are directly related to each reportable operating segment. The unallocated corporate overhead costs include: costs of the distribution centers, certain executive and stock-based compensation, accounting and finance, legal, information technology, human resources, and facilities costs, among others.

During the first quarter of fiscal year 2016, the Company changed its reportable operating segments to combine the previously-separated E-Commerce and retail store operating components into one DTC reportable operating segment. For the year ended March 31, 2015, certain reclassifications were made to conform to the current period presentation. These changes in reportable operating segments only changed the presentation within the below table and did not impact the Company's consolidated financial statements for any period presented. The reportable operating segment information reported in prior periods has been adjusted retrospectively to conform to the current period presentation.

Reportable operating segment information for the statements of comprehensive income (loss) is summarized as follows:

	Years Ended March 31,
	2017			2016			2015
Net sales to external customers:
UGG brand wholesale	$	826,355		$	918,102		$	903,926
Teva brand wholesale	103,694			121,239			116,931
Sanuk brand wholesale	77,552			90,719			102,690
Other brands wholesale	116,206			100,820			76,152
Direct-to-Consumer	666,340			644,317			617,358
	$	1,790,147		$	1,875,197		$	1,817,057
(Loss) income from operations:
UGG brand wholesale	$	213,407		$	246,990		$	269,489
Teva brand wholesale	10,045			17,692			13,320
Sanuk brand wholesale	(110,582		)	15,565			21,914
Other brands wholesale	1,571			(4,384		)	(9,838		)
Direct-to-Consumer	109,802			101,756			150,320
Unallocated overhead costs	(226,162		)	(215,492		)	(220,786		)
	$	(1,919	)	$	162,127		$	224,419

Depreciation, amortization and accretion:
UGG brand wholesale	$	3,167	$	2,254	$	5,029
Teva brand wholesale	24		54		94
Sanuk brand wholesale	5,018		6,556		6,969
Other brands wholesale	971		1,101		931
Direct-to-Consumer	15,669		19,030		21,165
Unallocated overhead costs	27,779		21,029		15,105
	$	52,628	$	50,024	$	49,293
Capital expenditures:
UGG brand wholesale	$	3,444	$	1,458	$	246
Teva brand wholesale	—		—		51
Sanuk brand wholesale	—		881		487
Other brands wholesale	191		51		351
Direct-to-Consumer	15,277		18,445		19,128
Unallocated overhead costs	25,587		45,351		71,590
	$	44,499	$	66,186	$	91,853

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

Reportable operating segment information for the consolidated balance sheets is as follows:

	As of March 31,
	2017		2016
Total assets from reportable operating segments:
UGG brand wholesale	$	259,444	$	248,937
Teva brand wholesale	82,505		87,225
Sanuk brand wholesale	80,102		212,816
Other brands wholesale	70,607		65,072
Direct-to-Consumer	113,400		148,733
	$	606,058	$	762,783

The assets allocable to each reportable operating 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 reportable operating segments. Unallocated assets are the assets not specifically related to the reportable operating segments and generally include cash and cash equivalents, deferred tax assets, and various other corporate assets shared by the Company's reportable operating segments.

Reconciliations of total assets from reportable operating segments to the consolidated balance sheets are as follows:

	As of March 31,
	2017		2016
Total assets from reportable operating segments	$	606,058	$	762,783
Unallocated cash and cash equivalents	291,764		245,956
Unallocated deferred tax assets	44,708		20,636
Other unallocated corporate assets	249,250		248,693
Consolidated total assets	$	1,191,780	$	1,278,068