Reportable Operating Segments

6 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Reportable Operating Segments

Reportable Operating Segments

Information reported to the Chief Operating Decision Maker (CODM), who is the Company's Chief Executive Officer (CEO), President, and Principal Executive Officer (PEO), is organized into the Company's six reportable operating segments and is consistent with how the CODM evaluates 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.

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 the Company's warehouse and distribution centers (DC), certain executive and stock-based compensation, accounting,

finance, legal, information technology, human resources, and facilities, among others. Inter-segment sales between the Company’s wholesale and the DTC reportable operating segments are at the Company’s cost, and there is no inter-segment net sales nor income (loss) from operations within the respective reportable operating segments results as these transactions are eliminated in consolidation.

Reportable operating segment information, with a reconciliation to the condensed consolidated statements of comprehensive income, was as follows:

	Three Months Ended September 30,				Six Months Ended September 30,
	2021		2020		2021		2020
Net sales
UGG brand wholesale	$	348,776	$	291,994	$	483,832	$	335,422
HOKA brand wholesale	146,980		108,117		298,127		178,736
Teva brand wholesale	19,211		17,746		62,570		39,157
Sanuk brand wholesale	7,020		6,085		17,402		13,313
Other brands wholesale	23,253		27,672		27,559		28,307
Direct-to-Consumer	176,662		171,911		337,090		311,759
Total	$	721,902	$	623,525	$	1,226,580	$	906,694

	Three Months Ended September 30,				Six Months Ended September 30,
	2021		2020		2021		2020
Income (loss) from operations
UGG brand wholesale	$	121,701	$	106,726	$	157,539	$	102,991
HOKA brand wholesale	43,294		33,826		89,657		51,061
Teva brand wholesale	4,908		4,762		19,411		8,964
Sanuk brand wholesale	1,523		1,139		4,927		1,627
Other brands wholesale	8,158		9,869		10,865		8,599
Direct-to-Consumer	38,734		43,284		78,417		74,311
Unallocated overhead costs	(90,137)		(71,002)		(170,803)		(126,648)
Total	$	128,181	$	128,604	$	190,013	$	120,905

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, are as follows:

	September 30, 2021		March 31, 2021
Assets
UGG brand wholesale	$	736,080	$	212,277
HOKA brand wholesale	171,783		168,365
Teva brand wholesale	43,390		87,284
Sanuk brand wholesale	33,437		38,311

	September 30, 2021		March 31, 2021
Other brands wholesale	50,932		18,732
Direct-to-Consumer	197,227		196,091
Total assets from reportable operating segments	1,232,849		721,060
Unallocated cash and cash equivalents	746,211		1,089,361
Unallocated deferred tax assets, net	39,580		37,194
Unallocated other corporate assets	391,792		320,090
Total	$	2,410,432	$	2,167,705