Reportable Operating Segments

9 Months Ended

Dec. 31, 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 December 31,				Nine Months Ended December 31,
	2022		2021		2022		2021
Net sales
UGG brand wholesale	$	374,082	$	432,093	$	873,249	$	915,925
HOKA brand wholesale	223,872		122,636		678,792		420,763
Teva brand wholesale	25,180		16,287		91,662		78,857
Sanuk brand wholesale	3,040		3,138		18,826		20,540
Other brands wholesale	20,169		24,247		49,721		51,806
Direct-to-Consumer	699,297		589,351		1,123,465		926,441
Total	$	1,345,640	$	1,187,752	$	2,835,715	$	2,414,332

Income (loss) from operations
UGG brand wholesale	$	114,372	$	126,085	$	257,120	$	283,624
HOKA brand wholesale	68,658		18,039		201,850		107,696
Teva brand wholesale	3,976		2,188		19,206		21,599
Sanuk brand wholesale	(1,048)		(31)		1,768		4,896
Other brands wholesale	(1,851)		1,139		3,517		12,004
Direct-to-Consumer	292,693		257,517		393,849		335,934
Unallocated overhead costs	(114,140)		(111,541)		(330,478)		(282,344)
Total	$	362,660	$	293,396	$	546,832	$	483,409

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:

	December 31, 2022		March 31, 2022
Assets
UGG brand wholesale	$	435,559	$	382,837
HOKA brand wholesale	467,288		293,025
Teva brand wholesale	83,320		91,140
Sanuk brand wholesale	41,224		40,766
Other brands wholesale	45,076		32,429
Direct-to-Consumer	227,883		191,193
Total assets from reportable operating segments	1,300,350		1,031,390
Unallocated cash and cash equivalents	1,057,843		843,527
Unallocated deferred tax assets, net	63,318		64,217
Unallocated other corporate assets	387,778		393,116
Total	$	2,809,289	$	2,332,250