Concentration of Business

9 Months Ended

Dec. 31, 2023

Regions and Customers. The Company sells its products globally to customers and consumers in various countries, with net sales concentrations as follows:


	Three Months Ended December 31,						Nine Months Ended December 31,
	2023			2022			2023			2022
International net sales	$	511,918		$	438,797		$	1,112,048		$	926,648
% of net sales	32.8		%	32.6		%	33.4		%	32.7		%
Net sales in foreign currencies	$	415,505		$	329,911		$	856,820		$	631,982
% of net sales	26.6		%	24.5		%	25.7		%	22.3		%
Ten largest global customers as % of net sales	22.5		%	24.6		%	25.2		%	27.4		%

For the three and nine months ended December 31, 2023, and 2022, no single foreign country comprised 10.0% or more of the Company’s total net sales. For the three and nine months ended December 31, 2023, and 2022, no single global customer accounted for 10.0% or more of the Company’s net sales.

As of December 31, 2023, the Company has two customers that represent 29.0% of trade accounts receivable, net, compared to no customers that represent 10.0% of trade accounts receivable, net, as of March 31, 2023. Management performs regular evaluations concerning the ability of the Company’s customers to satisfy their obligations to the Company and recognizes an allowance for doubtful accounts based on these evaluations.

Cash and Cash Equivalents. The Company maintains a portion of its cash in Federal Deposit Insurance Corporation (FDIC) insured bank deposit accounts which, at times, may exceed federally insured limits. To date, the Company has not experienced any losses in such accounts. The Company does not believe, based on the size and strength of the banking institutions used, it is exposed to any significant credit risks in cash.

Suppliers. The Company’s production is concentrated at a limited number of independent manufacturing factories, primarily in Asia. Sheepskin is the principal raw material for certain UGG brand products and most of the Company’s sheepskin is purchased from two tanneries in China, which is sourced primarily from Australia and the United Kingdom (UK).

Long-Lived Assets. Long-lived assets, which consist of property and equipment, net, recorded in the condensed consolidated balance sheets, are as follows:


	December 31, 2023		March 31, 2023
United States	$	272,195	$	244,529
Foreign*	28,620		22,150
Total	$	300,815	$	266,679

*No single foreign country’s property and equipment, net, represents 10.0% or more of the Company’s total property and equipment, net, as of December 31, 2023, and March 31, 2023.