Reportable Operating Segments

The Company has five reportable operating segments consisting of the strategic business units for the worldwide wholesale operations for each of the UGG brand, Teva brand, Sanuk brand and other brands, as well as DTC. The Company's other brands currently consist of the Hoka and Koolaburra brands, and included the Ahnu® (Ahnu) brand for the years ended March 31, 2017 and 2016, as well as the TSUBO and MOZO brands for the year ended March 31, 2016.

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, 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 Company does not allocate corporate overhead costs or non-operating income and expenses to reportable operating segments. The unallocated corporate overhead costs include unallocable costs associated with distribution centers, certain executive and stock compensation expenses, accounting, finance and legal costs, information technology costs, human resources costs, and facilities costs, among others.

During calendar year 2017, the Company began to leverage elements, including particular styles, of the Ahnu brand under the Teva brand. Effective April 1, 2017, operations for the Ahnu brand were discontinued and certain remaining styles are sold under the Teva brand. Results for the former Ahnu brand are now reported in the Teva brand wholesale reportable operating segment instead of the other brands wholesale reportable operating segment, as presented in the prior period. 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.

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



	Years Ended March 31,
	2018			2017			2016
Net sales to external customers:
UGG brand wholesale	$	841,893		$	826,355		$	918,102
Teva brand wholesale	117,478			103,694			121,239
Sanuk brand wholesale	78,283			77,552			90,719
Other brands wholesale	149,961			116,206			100,820
Direct-to-Consumer	715,724			666,340			644,317
	$	1,903,339		$	1,790,147		$	1,875,197
Income (loss) from operations:
UGG brand wholesale	$	247,826		$	213,407		$	246,990
Teva brand wholesale	20,400			10,045			17,692
Sanuk brand wholesale	14,474			(110,582		)	15,565
Other brands wholesale	22,258			1,571			(4,384		)
Direct-to-Consumer	156,896			109,802			101,756
Unallocated overhead costs	(239,270		)	(226,162		)	(215,492		)
	$	222,584		$	(1,919	)	$	162,127



	Years Ended March 31,
	2018		2017		2016
Depreciation, amortization and accretion:
UGG brand wholesale	$	3,193	$	3,167	$	2,254
Teva brand wholesale	12		24		54
Sanuk brand wholesale	4,174		5,018		6,556
Other brands wholesale	865		971		1,101
Direct-to-Consumer	13,396		15,669		19,030
Unallocated overhead costs	26,932		27,779		21,029
	$	48,572	$	52,628	$	50,024
Capital expenditures:
UGG brand wholesale	$	58	$	3,444	$	1,458
Teva brand wholesale	—		—		—
Sanuk brand wholesale	20		—		881
Other brands wholesale	—		191		51
Direct-to-Consumer	8,641		15,277		18,445
Unallocated overhead costs	26,094		25,587		45,351
	$	34,813	$	44,499	$	66,186

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 income (loss) from operations of the wholesale reportable operating segments.

Assets allocable to each reportable operating segment are as follows:



	As of March 31,
	2018		2017
Total assets from reportable operating segments:
UGG brand wholesale	$	229,894	$	259,444
Teva brand wholesale	85,980		82,505
Sanuk brand wholesale	79,322		80,102
Other brands wholesale	74,809		70,607
Direct-to-Consumer	112,355		113,400
	$	582,360	$	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.

Total assets allocable to each reportable operating segment reconciled to the consolidated balance sheets are as follows:



	As of March 31,
	2018		2017
Total assets from reportable operating segments	$	582,360	$	606,058
Unallocated cash and cash equivalents	429,970		291,764
Unallocated deferred tax assets	38,381		44,708
Unallocated other corporate assets	213,668		249,250
Total assets	$	1,264,379	$	1,191,780