Reportable Operating Segments

3 Months Ended

Jun. 30, 2019

The Company's six reportable operating segments include the worldwide wholesale operations for each of the UGG brand, HOKA brand, Teva brand, Sanuk brand, and Other brands, as well as DTC. The Other brands wholesale reportable operating segment consists of the Koolaburra brand and includes other discontinued brands during the prior period presented.

Information reported to the Chief Operating Decision Maker (CODM), who is the Company's Principal Executive Officer (PEO), is organized into these reportable operating segments and is consistent with how the CODM evaluates performance and allocates resources.

The Company does not consider international operations a separate reportable operating segment, and the CODM reviews such operations in the aggregate with the aforementioned reportable operating segments.

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.

The Company evaluates reportable operating segment performance, primarily based on net sales and income (loss) from operations. The wholesale operations of each brand are generally managed separately because each requires different marketing, research and development, design, sourcing, and sales strategies. The income (loss) from operations of each of the reportable operating segments include 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 direct costs of employees within those reportable operating segments. The Company does not allocate corporate overhead costs or non-operating income and expenses to reportable operating segments, which include unallocable overhead costs associated with distribution centers, certain

executive and stock compensation, accounting, finance, legal, information technology, human resources, and facilities, among others.

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



	Three Months Ended June 30,
	2019		2018
Net sales
UGG brand wholesale	$	85,400	$	81,353
HOKA brand wholesale	64,006		39,954
Teva brand wholesale	30,831		33,196
Sanuk brand wholesale	14,607		20,503
Other brands wholesale	1,727		2,637
Direct-to-Consumer	80,268		72,951
Total	$	276,839	$	250,594



	Three Months Ended June 30,
	2019			2018
Income (loss) from operations
UGG brand wholesale	$	9,441		$	5,869
HOKA brand wholesale	11,358			5,728
Teva brand wholesale	8,316			8,064
Sanuk brand wholesale	1,935			4,200
Other brands wholesale	132			350
Direct-to-Consumer	(4,572		)	(7,424		)
Unallocated overhead costs	(58,027		)	(56,201		)
Total	$	(31,417	)	$	(39,414	)

Assets allocated to each reportable operating segment include trade accounts receivable, net of allowances and inventories, net of reserves, property and equipment, net, goodwill, other intangible assets, and certain other assets that are specifically identifiable for one of the Company's reportable operating segments. Unallocated assets are those assets not directly related to a specific reportable operating segment and generally include cash and cash equivalents, deferred tax assets, net, and various other corporate assets shared by the Company's reportable operating segments.

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



	June 30, 2019		March 31, 2019
Assets
UGG brand wholesale	$	422,189	$	240,411
HOKA brand wholesale	106,810		94,157
Teva brand wholesale	56,601		76,370
Sanuk brand wholesale	54,414		71,285
Other brands wholesale	36,152		14,618
Direct-to-Consumer	228,048		95,501
Total assets from reportable operating segments	904,214		592,342



	June 30, 2019		March 31, 2019
Unallocated cash and cash equivalents	502,626		589,692
Unallocated deferred tax assets, net	32,964		30,870
Unallocated other corporate assets	311,252		214,302
Total	$	1,751,056	$	1,427,206