Goodwill and Other Intangible Assets

12 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

The Company’s goodwill and other intangible assets are recorded in the consolidated balance sheets as follows:


	As of March 31,
	2023		2022
Goodwill
UGG brand	$	6,101	$	6,101
HOKA brand	7,889		7,889
Total goodwill	13,990		13,990
Other intangible assets
Indefinite-lived intangible assets
Trademarks	15,454		15,454
Definite-lived intangible assets
Trademarks	51,723		51,723
Other	51,313		51,572
Total gross carrying amount	103,036		103,295
Accumulated amortization	(81,033)		(79,061)
Net definite-lived intangible assets	22,003		24,234
Total other intangible assets, net	37,457		39,688
Total	$	51,447	$	53,678

The weighted-average amortization period for definite-lived intangible assets was 15 years for the years ended March 31, 2023, and 2022. Intangible assets consist primarily of indefinite-lived and definite-lived trademarks, customer relationships, patents, lease rights, and non-compete agreements arising from the application of purchase accounting. Goodwill is allocated to the wholesale reportable operating segments of the brands described above.

Annual Impairment Assessment. During the years ended March 31, 2023, 2022, and 2021, the Company evaluated goodwill for impairment at the reporting unit level for the UGG and HOKA brands wholesale reportable operating segment as of December 31st and evaluated the Teva indefinite-lived trademarks as of October 31st. Based on the evaluation of qualitative and quantitative factors, including the asset carrying amounts recorded in the consolidated balance sheets against each of the brands’ actual results of operations and long-term forecasts of net sales and operating income, no impairment loss was recorded for goodwill and indefinite-lived intangible assets. As of March 31, 2023, and 2022, the gross carrying amount of goodwill is $143,765 and the accumulated impairment losses are $129,775.

The Company did not identify any definite-lived intangible asset triggering events during the years ended March 31, 2023, and 2022. During the year ended March 31, 2021, the Company recorded an impairment loss of $3,522 for the Sanuk brand definite-lived international trademark, driven by the strategic decision to focus primarily on future domestic growth, within the Company’s Sanuk brand wholesale reportable operating segment in SG&A expenses in the consolidated statements of comprehensive income.

Amortization Expense. A reconciliation of the changes in total other intangible assets, net, recorded in the consolidated balance sheets are as follows:


	Amounts
Balance, March 31, 2020	$	48,016
Impairment charges	(3,522)
Amortization expense	(2,565)


	Amounts
Foreign currency translation net gain	16
Balance, March 31, 2021	41,945

Amortization expense	(2,248)
Foreign currency translation net loss	(9)
Balance, March 31, 2022	39,688

Amortization expense	(2,228)
Foreign currency translation net loss	(3)
Balance, March 31, 2023	$	37,457

Expected amortization expense for amortizable intangible assets subsequent to March 31, 2023, is as follows:


Years Ending March 31,	Amounts
2024	$	2,198
2025	2,053
2026	1,551
2027	1,519
2028	1,519
Thereafter	13,163
Total	$	22,003