Reportable Operating Segments

3 Months Ended

Jun. 30, 2022

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.

Segment Net Sales and Income from Operations. 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 warehouses and DC's, certain executive and stock-based compensation, accounting, finance, legal, information technology (IT), human resources, and facilities, among others. 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 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 June 30,
	2022		2021
Net sales
UGG brand wholesale	$	137,862	$	135,056
HOKA brand wholesale	231,885		151,147
Teva brand wholesale	46,895		43,359
Sanuk brand wholesale	10,726		10,382
Other brands wholesale	1,993		4,306
Direct-to-Consumer	185,100		160,428
Total	$	614,461	$	504,678

Income (loss) from operations
UGG brand wholesale	$	30,665	$	35,838
HOKA brand wholesale	69,616		46,363
Teva brand wholesale	12,493		14,503
Sanuk brand wholesale	2,466		3,404
Other brands wholesale	(469)		2,707
Direct-to-Consumer	41,220		39,683
Unallocated overhead costs	(99,650)		(80,666)
Total	$	56,341	$	61,832

Segment Assets. 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:

	June 30, 2022		March 31, 2022
Assets
UGG brand wholesale	$	620,608	$	382,837
HOKA brand wholesale	394,862		293,025
Teva brand wholesale	87,074		91,140
Sanuk brand wholesale	42,393		40,766
Other brands wholesale	44,188		32,429
Direct-to-Consumer	188,600		191,193
Total assets from reportable operating segments	1,377,725		1,031,390

	June 30, 2022		March 31, 2022
Unallocated cash and cash equivalents	695,230		843,527
Unallocated deferred tax assets, net	63,215		64,217
Unallocated other corporate assets	377,082		393,116
Total	$	2,513,252	$	2,332,250