Reportable Operating Segments

9 Months Ended

Dec. 31, 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 December 31,				Nine Months Ended December 31,
	2021		2020		2021		2020
Net sales
UGG brand wholesale	$	432,093	$	408,859	$	915,925	$	744,281
HOKA brand wholesale	122,636		100,893		420,763		279,629
Teva brand wholesale	16,287		12,107		78,857		51,264
Sanuk brand wholesale	3,138		3,829		20,540		17,142
Other brands wholesale	24,247		32,182		51,806		60,489
Direct-to-Consumer	589,351		519,889		926,441		831,648
Total	$	1,187,752	$	1,077,759	$	2,414,332	$	1,984,453

	Three Months Ended December 31,				Nine Months Ended December 31,
	2021		2020		2021		2020
Income (loss) from operations
UGG brand wholesale	$	126,085	$	158,358	$	283,624	$	261,349
HOKA brand wholesale	18,039		26,995		107,696		78,056
Teva brand wholesale	2,188		1,029		21,599		9,993
Sanuk brand wholesale	(31)		17		4,896		1,644
Other brands wholesale	1,139		9,256		12,004		17,855
Direct-to-Consumer	257,517		220,742		335,934		295,053
Unallocated overhead costs	(111,541)		(87,742)		(282,344)		(214,390)
Total	$	293,396	$	328,655	$	483,409	$	449,560

Assets allocated to each reportable operating segment include trade accounts receivable, net; inventories; 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:

	December 31, 2021		March 31, 2021
Assets
UGG brand wholesale	$	550,960	$	212,277
HOKA brand wholesale	216,652		168,365
Teva brand wholesale	53,634		87,284
Sanuk brand wholesale	35,132		38,311
Other brands wholesale	50,930		18,732
Direct-to-Consumer	209,542		196,091
Total assets from reportable operating segments	1,116,850		721,060

	December 31, 2021		March 31, 2021
Unallocated cash and cash equivalents	998,261		1,089,361
Unallocated deferred tax assets, net	40,881		37,194
Unallocated other corporate assets	391,576		320,090
Total	$	2,547,568	$	2,167,705