Revolving Credit Facilities and Mortgage Payable

6 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Revolving Credit Facilities and Mortgage Payable

Revolving Credit Facilities and Mortgage Payable

Primary Credit Facility

In September 2018, the Company entered into a credit agreement that provides for a five-year, $400,000 unsecured revolving credit facility (Primary Credit Facility), contains a $25,000 sublimit for the issuance of letters of credit, and matures on September 20, 2023.

At the Company's election, interest under the Primary Credit Facility is tied to the adjusted London Interbank Offered Rate (LIBOR) or the Alternate Base Rate (ABR). Interest for borrowings made in foreign currencies is based on currency-specific LIBOR or the Canadian deposit offered rate (CDOR) if made in Canadian dollars. As of September 30, 2019, the effective interest rates for US dollar LIBOR and ABR, with relevant spreads for borrowings made during the reporting period, were 3.14% and 5.13%, respectively.

During the six months ended September 30, 2019, the Company borrowed and repaid $16,000 under the Primary Credit Facility. As of September 30, 2019, the Company had no outstanding balance under the Primary Credit Facility and had outstanding letters of credit of $549. As of September 30, 2019, available borrowings under the Primary Credit Facility were $399,451. Subsequent to September 30, 2019 through October 31, 2019, the Company borrowed $34,000 and made $25,000 of repayments under the Primary Credit Facility. At October 31, 2019, the Company had an outstanding balance of $9,000, outstanding letters of credit of $549, and had available borrowings of $390,451 under the Primary Credit Facility.

China Credit Facility

In August 2013, Deckers (Beijing) Trading Co., LTD, a wholly-owned subsidiary of the Company, entered into a credit agreement in China (as amended, the China Credit Facility) that provides for an uncommitted revolving line of credit of up to CNY 300,000, or $42,012, with an overdraft facility sublimit of CNY 100,000, or $14,004.

The China Credit Facility is payable on demand and subject to annual review with a defined aggregate period of borrowing of up to 12 months. The obligations under the China Credit Facility are guaranteed by the Company for 108.5% of the facility amount in US dollars. Interest is based on the People’s Bank of China (PBOC) market rate multiplied by a variable liquidity factor. As of September 30, 2019, the effective interest rate was 4.20%.

During the six months ended September 30, 2019, the Company borrowed $12,981 and made no repayments under the China Credit Facility. As of September 30, 2019, the Company had an outstanding balance of $12,981, outstanding bank guarantees of $28, and available borrowings of $29,003 under the China Credit Facility. Subsequent

to September 30, 2019 through October 31, 2019, the Company borrowed $5,874, had an outstanding balance of $18,855, outstanding bank guarantees of $28, and had available borrowings of approximately $23,129 under the China Credit Facility.

Japan Credit Facility

In March 2016, Deckers Japan, G.K., a wholly-owned subsidiary of the Company, entered into a credit agreement in Japan (as amended, the Japan Credit Facility) that provides for an uncommitted revolving line of credit of up to JPY 5,500,000, or $50,928, for a maximum term of six months for each draw on the facility.

The Japan Credit Facility renews annually and is guaranteed by the Company. The Company has renewed the Japan Credit Facility through January 31, 2020. Interest is based on the Tokyo Interbank Offered Rate (TIBOR), plus 0.40%. As of September 30, 2019, the effective interest rate was 0.48%.

During the six months ended September 30, 2019, the Company made no borrowings or repayments under the Japan Credit Facility. As of September 30, 2019, the Company had no outstanding balance under the Japan Credit Facility and available borrowings of $50,928. Subsequent to September 30, 2019 through October 31, 2019, the Company made no additional borrowings, had no outstanding balance, and had available borrowings of approximately $50,928 under the Japan Credit Facility.

Mortgage

In July 2014, the Company obtained a mortgage secured by the property on which its corporate headquarters is located for $33,931. As of September 30, 2019, the outstanding principal balance under the mortgage was $31,210, which includes $618 in short-term borrowings and $30,592 in mortgage payable in the condensed consolidated balance sheets. The mortgage has a fixed interest rate of 4.928%. Payments include interest and principal in an amount that amortizes the principal balance over a 30-year period; however, the loan will mature and requires a balloon payment of $23,695, in addition to any then-outstanding balance, on July 1, 2029.

Debt Covenants

As of September 30, 2019, and through October 31, 2019, the Company was in compliance with all debt covenants under its revolving credit facilities and mortgage.

Foreign Currency Exchange Rates

The amounts disclosed above for the China Credit Facility and Japan Credit Facility were translated into US dollars using applicable foreign currency exchange spot rates in effect as of September 30, 2019. As a result, there are differences between the net borrowing and repayment amounts within this footnote disclosure and those same amounts recorded in the condensed consolidated statements of cash flows. Any amounts outstanding are recorded in short-term borrowings in the condensed consolidated balance sheets.