GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

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

	As of March 31,
	2024		2023
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

	As of March 31,
	2024		2023
Definite-lived intangible assets
Trademarks	51,723		51,723
Other	51,220		51,313
Total gross carrying amount	102,943		103,036
Accumulated amortization and impairments	(91,314)		(81,033)
Net definite-lived intangible assets	11,629		22,003
Total other intangible assets, net	27,083		37,457
Total	$	41,073	$	51,447

The weighted-average amortization period for definite-lived intangible assets was 15 years for the years ended March 31, 2024, and 2023. 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, 2024, 2023, and 2022, the Company evaluated goodwill for impairment at the reporting unit level for the UGG and HOKA brands wholesale reportable operating segments 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, 2024, and 2023, the gross carrying amount of goodwill is $143,765 and the accumulated impairment losses are $129,775.

During the fourth fiscal quarter for the year ended March 31, 2024, the Company recorded an impairment loss of $8,164 in SG&A expenses in the consolidated statements of comprehensive income for the Sanuk brand definite-lived trademark, driven by lower-than-expected results of operations for the wholesale channel that resulted in the carrying value exceeding the estimated fair value, which was determined based on an estimate of the future discounted cash flows. The Company did not identify any definite-lived intangible asset triggering events during the years ended March 31, 2023, and 2022.

Other Intangible Assets, net. A reconciliation of the changes in total other intangible assets, net, recorded in the consolidated balance sheets is as follows:

	Years Ended March 31,
	2024		2023		2022
Beginning balance	$	37,457	$	39,688	$	41,945
Impairment charges	(8,164)		—		—
Amortization expense	(2,208)		(2,228)		(2,248)
Foreign currency translation net loss	(2)		(3)		(9)
Ending balance	$	27,083	$	37,457	$	39,688

Expected amortization expense for definite-lived intangible assets subsequent to March 31, 2024, is as follows:

Years Ending March 31,	Amounts
2025	$	1,402
2026	911
2027	879
2028	879
2029	879
Thereafter	6,679
Total	$	11,629