Reportable Operating Segments

3 Months Ended

Jun. 30, 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 and Koolaburra brands.

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 calendar year 2017, the Company began to leverage elements, including particular styles, of the Ahnu® (Ahnu) brand under the umbrella of the Teva brand. Effective April 1, 2017, operations for the Ahnu brand have been discontinued and all styles are sold under the Teva umbrella and are now reported in the Teva brand wholesale reportable operating segment instead of the other brands wholesale reportable operating segment as presented in the comparative prior period.

Reportable operating segment information with a reconciliation to the condensed consolidated statements of comprehensive loss is summarized as follows:

	Three Months Ended June 30,
	2017			2016
Net sales to external customers:
UGG brand wholesale	$	63,273		$	45,901
Teva brand wholesale	32,123			29,525
Sanuk brand wholesale	22,220			22,303
Other brands wholesale	26,965			18,411
Direct-to-Consumer	65,136			58,253
	$	209,717		$	174,393
Loss from operations:
UGG brand wholesale	$	(1,021	)	$	(10,212	)
Teva brand wholesale	4,943			1,862
Sanuk brand wholesale	4,417			4,181
Other brands wholesale	1,026			(1,630		)
Direct-to-Consumer	(12,102		)	(19,419		)
Unallocated overhead costs	(53,519		)	(53,101		)
	$	(56,256	)	$	(78,319	)

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, nor are they reflected in loss from operations of the wholesale reportable operating segments.

Assets allocable to each reportable operating segment with a reconciliation to the condensed consolidated balance sheets are as follows:

	June 30, 2017		March 31, 2017
Total assets from reportable operating segments:
UGG brand wholesale	$	386,400	$	259,444
Teva brand wholesale	65,732		82,505
Sanuk brand wholesale	73,351		80,102
Other brands wholesale	65,564		70,607
Direct-to-Consumer	103,987		113,400
	$	695,034	$	606,058

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 directly related to a specific reportable operating segment, 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 condensed consolidated balance sheets are as follows:

	June 30, 2017		March 31, 2017
Total assets from reportable operating segments	$	695,034	$	606,058
Unallocated cash and cash equivalents	279,940		291,764
Unallocated deferred tax assets	50,698		44,708
Other unallocated corporate assets	247,186		249,250
Consolidated total assets	$	1,272,858	$	1,191,780