XML 26 R17.htm IDEA: XBRL DOCUMENT v3.23.3
Reportable Operating Segments
 6 Months Ended
Sep. 30, 2023
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 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 DCs, 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,
2023202220232022
Net sales
UGG brand wholesale$451,841 $361,305 $573,386 $499,167 
HOKA brand wholesale262,973 223,035 523,820 454,920 
Teva brand wholesale12,150 19,587 47,282 66,482 
Sanuk brand wholesale3,348 5,060 9,818 15,786 
Other brands wholesale29,862 27,559 31,289 29,552 
Direct-to-Consumer331,733 239,068 582,103 424,168 
Total$1,091,907 $875,614 $1,767,698 $1,490,075 
Income (loss) from operations
UGG brand wholesale$165,902 $112,083 $182,768 $142,748 
HOKA brand wholesale81,873 63,576 168,397 133,192 
Teva brand wholesale(647)2,737 8,590 15,230 
Sanuk brand wholesale(303)350 456 2,816 
Other brands wholesale6,459 5,837 4,418 5,368 
Direct-to-Consumer112,255 59,936 187,717 101,156 
Unallocated overhead costs(140,922)(116,688)(256,993)(216,338)
Total$224,617 $127,831 $295,353 $184,172 
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, 2023March 31, 2023
Assets
UGG brand wholesale$740,892 $261,683 
HOKA brand wholesale361,699 446,450 
Teva brand wholesale48,519 94,735 
Sanuk brand wholesale30,971 41,405 
Other brands wholesale51,734 24,448 
Direct-to-Consumer258,211 219,194 
Total assets from reportable operating segments
1,492,026 1,087,915 
Unallocated cash and cash equivalents823,051 981,795 
Unallocated deferred tax assets, net71,078 72,592 
Unallocated other corporate assets462,378 413,901 
Total$2,848,533 $2,556,203