Revolving Credit Facilities

3 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Revolving Credit Facilities

Revolving Credit Facilities

Primary Credit Facility. In September 2018, the Company entered into a credit agreement (Primary Credit Facility) that provides for a five-year, $400,000 unsecured revolving 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 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, 2021, the effective interest rates for US dollar LIBOR and ABR were 1.23% and 3.38%, respectively.

During the three months ended June 30, 2021, the Company made no borrowings or repayments under the Primary Credit Facility. As of June 30, 2021, the Company had no outstanding balance, outstanding letters of credit of $549, and available borrowings of $399,451 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 CNY300,000, or $46,434, with an overdraft facility sublimit of CNY100,000, or $15,478.

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, 2021, the effective interest rate was 4.15%.

During the three months ended June 30, 2021, the Company made no borrowings and repayments under the China Credit Facility. As of June 30, 2021, the Company had no outstanding balance, outstanding bank guarantees of $31, and available borrowings of $46,403 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 JPY3,000,000, or $27,088, 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, 2021, the effective interest rate was 0.49%.

During the three months ended June 30, 2021, the Company made no borrowings or repayments under the Japan Credit Facility. As of June 30, 2021, the Company had no outstanding balance and available borrowings of $27,088 under the Japan Credit Facility.

Debt Covenants. As of June 30, 2021, the Company was in compliance with all financial covenants under the credit facilities.