Reportable Operating Segments

6 Months Ended

Sep. 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.

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 the Company's performance and allocates resources. The Company does not consider international operations to be a separate reportable operating segment, and the CODM reviews such operations in the aggregate with the 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 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 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 income, is summarized as follows:



	Three Months Ended September 30,				Six Months Ended September 30,
	2019		2018		2019		2018
Net sales
UGG brand wholesale	$	332,020	$	319,589	$	417,420	$	400,942
HOKA brand wholesale	60,959		43,561		124,965		83,515
Teva brand wholesale	17,091		15,878		47,922		49,074
Sanuk brand wholesale	8,166		10,933		22,773		31,436
Other brands wholesale	25,282		18,064		27,009		20,701
Direct-to-Consumer	98,687		93,888		178,955		166,839
Total	$	542,205	$	501,913	$	819,044	$	752,507



	Three Months Ended September 30,						Six Months Ended September 30,
	2019			2018			2019			2018
Income (loss) from operations
UGG brand wholesale	$	135,663		$	134,029		$	145,104		$	139,898
HOKA brand wholesale	14,054			8,170			25,412			13,898
Teva brand wholesale	3,523			1,847			11,839			9,911
Sanuk brand wholesale	238			291			2,173			4,491
Other brands wholesale	6,958			5,287			7,090			5,637
Direct-to-Consumer	2,935			2,975			(1,637		)	(4,449		)
Unallocated overhead costs	(66,240		)	(62,187		)	(124,267		)	(118,388		)
Total	$	97,131		$	90,412		$	65,714		$	50,998

Assets allocated to each reportable operating segment include trade accounts receivable, net, inventories, net, property and equipment, net, operating lease assets, goodwill, other intangible assets, net, 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, were as follows:



	September 30, 2019		March 31, 2019
Assets
UGG brand wholesale	$	691,484	$	240,411
HOKA brand wholesale	84,589		94,157
Teva brand wholesale	39,521		76,370
Sanuk brand wholesale	44,534		71,285
Other brands wholesale	65,479		14,618
Direct-to-Consumer	240,048		95,501
Total assets from reportable operating segments	1,165,655		592,342
Unallocated cash and cash equivalents	177,673		589,692
Unallocated deferred tax assets, net	31,253		30,870
Unallocated other corporate assets	317,078		214,302
Total	$	1,691,659	$	1,427,206