Revolving Credit Facilities and Mortgage Payable

3 Months Ended

Jun. 30, 2020

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 June 30, 2020, the effective interest rates for US dollar LIBOR and ABR were 1.29% and 3.38%, respectively.

During the three months ended June 30, 2020, the Company made no borrowings or repayments under the Primary Credit Facility. As of June 30, 2020, the Company had no outstanding balance under the Primary Credit Facility and had outstanding letters of credit of $549. As of June 30, 2020, available borrowings under the Primary Credit Facility were $399,451.

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 $42,425, with an overdraft facility sublimit of CNY 100,000, or $14,142.

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 June 30, 2020, the effective interest rate was 4.24%.

During the three months ended June 30, 2020, the Company made no borrowings or repayments under the China Credit Facility. As of June 30, 2020, the Company had no outstanding balance, outstanding bank guarantees of $28, and available borrowings of $42,397 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 3,000,000, or $27,831, for a maximum term of six months for each draw on the facility. The Japan Credit Facility can be renewed annually and is guaranteed by the Company. Interest is based on the Tokyo Interbank Offered Rate (TIBOR) plus 0.40%. As of June 30, 2020, the effective interest rate was 0.44%.

During the three months ended June 30, 2020, the Company made no borrowings or repayments under the Japan Credit Facility. As of June 30, 2020, the Company had no outstanding balance under the Japan Credit Facility and available borrowings of $27,831.

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 June 30, 2020, the outstanding principal balance under the mortgage was $30,747, which includes $646 in short-term borrowings and $30,101 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 June 30, 2020, the Company was in compliance with all financial debt covenants under the revolving credit facilities and the mortgage.