Reportable Operating Segments

9 Months Ended

Dec. 31, 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-based 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 December 31,				Nine Months Ended December 31,
	2019		2018		2019		2018
Net sales
UGG brand wholesale	$	396,649	$	388,039	$	814,069	$	788,981
HOKA brand wholesale	71,927		46,243		196,892		129,758
Teva brand wholesale	14,406		20,087		62,328		69,161
Sanuk brand wholesale	5,286		9,172		28,059		40,608
Other brands wholesale	36,799		18,703		63,808		39,404
Direct-to-Consumer	413,668		391,556		592,623		558,395
Total	$	938,735	$	873,800	$	1,757,779	$	1,626,307



	Three Months Ended December 31,						Nine Months Ended December 31,
	2019			2018			2019			2018
Income (loss) from operations
UGG brand wholesale	$	147,189		$	141,080		$	292,293		$	280,978
HOKA brand wholesale	15,110			8,791			40,522			22,689
Teva brand wholesale	1,128			1,685			12,967			11,596
Sanuk brand wholesale	(745		)	(635		)	1,428			3,856
Other brands wholesale	8,192			4,513			15,282			10,150
Direct-to-Consumer	158,705			155,333			157,068			150,884
Unallocated overhead costs	(73,813		)	(66,049		)	(198,080		)	(184,437		)
Total	$	255,766		$	244,718		$	321,480		$	295,716

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:



	December 31, 2019		March 31, 2019
Assets
UGG brand wholesale	$	430,309	$	240,411
HOKA brand wholesale	116,096		94,157
Teva brand wholesale	54,052		76,370
Sanuk brand wholesale	46,864		71,285
Other brands wholesale	37,734		14,618
Direct-to-Consumer	238,674		95,501
Total assets from reportable operating segments	923,729		592,342
Unallocated cash and cash equivalents	616,864		589,692
Unallocated deferred tax assets, net	32,172		30,870
Unallocated other corporate assets	315,586		214,302
Total	$	1,888,351	$	1,427,206