Reportable Operating Segments

6 Months Ended

Sep. 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 September 30,				Six Months Ended September 30,
	2022		2021		2022		2021
Net sales
UGG brand wholesale	$	361,305	$	348,776	$	499,167	$	483,832
HOKA brand wholesale	223,035		146,980		454,920		298,127
Teva brand wholesale	19,587		19,211		66,482		62,570
Sanuk brand wholesale	5,060		7,020		15,786		17,402
Other brands wholesale	27,559		23,253		29,552		27,559
Direct-to-Consumer	239,068		176,662		424,168		337,090
Total	$	875,614	$	721,902	$	1,490,075	$	1,226,580

Income (loss) from operations
UGG brand wholesale	$	112,083	$	121,701	$	142,748	$	157,539
HOKA brand wholesale	63,576		43,294		133,192		89,657
Teva brand wholesale	2,737		4,908		15,230		19,411
Sanuk brand wholesale	350		1,523		2,816		4,927
Other brands wholesale	5,837		8,158		5,368		10,865
Direct-to-Consumer	59,936		38,734		101,156		78,417
Unallocated overhead costs	(116,688)		(90,137)		(216,338)		(170,803)
Total	$	127,831	$	128,181	$	184,172	$	190,013

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:

	September 30, 2022		March 31, 2022
Assets
UGG brand wholesale	$	789,998	$	382,837
HOKA brand wholesale	410,616		293,025
Teva brand wholesale	65,338		91,140
Sanuk brand wholesale	40,917		40,766
Other brands wholesale	70,671		32,429
Direct-to-Consumer	201,538		191,193
Total assets from reportable operating segments	1,579,078		1,031,390
Unallocated cash and cash equivalents	419,259		843,527
Unallocated deferred tax assets, net	60,410		64,217
Unallocated other corporate assets	407,602		393,116
Total	$	2,466,349	$	2,332,250