Concentration of Business

6 Months Ended

Sep. 30, 2019

Regions and Customers

The Company sells its products to customers throughout the US and to foreign customers in various countries, with concentrations as follows:



	Three Months Ended September 30,						Six Months Ended September 30,
	2019			2018			2019			2018
International net sales	$	184,234		$	190,320		$	293,778		$	299,207
% of net sales	34.0		%	37.9		%	35.9		%	39.8		%
Net sales in foreign currencies	$	159,059		$	162,587		$	218,416		$	227,013
% of net sales	29.3		%	32.4		%	26.7		%	30.2		%
Ten largest customers as % of net sales	36.6		%	36.6		%	30.4		%	31.6		%

For the three and six months ended September 30, 2019 and 2018, no single foreign country comprised 10.0% or more of the Company's total net sales. No single customer accounted for 10.0% or more of the Company's total net sales during the three and six months ended September 30, 2019 and 2018.

The Company sells its products to customers for trade accounts receivable and, as of September 30, 2019, had one customer that represented 11.8% of trade accounts receivable, net, compared to no customers that exceeded 10.0% of trade accounts receivable, net as of March 31, 2019. Management performs regular evaluations concerning the ability of the Company’s customers to satisfy their obligations to the Company and recognizes an allowance for doubtful accounts based on these evaluations.

Suppliers

The Company's production is concentrated at a limited number of independent manufacturing factories, primarily in Asia. Sheepskin is the principal raw material for certain UGG brand products and most of the Company's sheepskin is purchased from two tanneries in China, which is sourced primarily from Australia and the United Kingdom. The supply of sheepskin can be adversely impacted by weather patterns, harvesting decisions, incidents of disease, and the price of other commodities, such as wool and leather. Furthermore, the price of sheepskin is impacted by numerous other factors, including demand for the Company's products, demand for sheepskin by competitors, changes in

consumer preferences, and changes in discretionary spending. In an effort to partially reduce its dependency on sheepskin, the Company began using a proprietary raw material, UGGpure, which is a re-purposed wool woven into a durable backing, in some of its UGG brand products. The Company currently purchases UGGpure from two suppliers. The other production materials used by the Company are sourced primarily from Asia. The Company's operations are subject to the customary risks of doing business abroad, including, but not limited to, foreign currency exchange rate fluctuations, customs duties and related fees, various import controls and other nontariff barriers, restrictions on the transfer of funds, labor unrest and strikes, and, in certain parts of the world, political instability.

Long-Lived Assets

Long-lived assets, which consist of property and equipment, net, recorded in the condensed consolidated balance sheets, were as follows:



	September 30, 2019		March 31, 2019
US	$	196,598	$	196,702
Foreign*	15,725		17,094
Total	$	212,323	$	213,796

*No single foreign country’s net property and equipment comprised 10.0% or more of the Company’s total property and equipment, net, as of September 30, 2019 and March 31, 2019.