Reportable Operating Segments

12 Months Ended

Mar. 31, 2020

Information reported to the Chief Operating Decision Maker (CODM), who is the Company’s Principal Executive Officer, is organized into 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. 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.

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 distribution centers, certain executive and stock-based compensation, accounting, finance, legal, information technology, human resources, and facilities, among others. Reportable operating segment information, with a reconciliation to the consolidated statements of comprehensive income, were as follows:



	Years Ended March 31,
	2020			2019			2018
Net sales
UGG brand wholesale	$	892,990		$	888,347		$	841,893
HOKA brand wholesale	277,097			185,057			132,688
Teva brand wholesale	119,108			119,390			117,478
Sanuk brand wholesale	39,463			69,791			78,283
Other brands wholesale	67,175			42,818			17,273
Direct-to-Consumer	736,856			715,034			715,724
Total	$	2,132,689		$	2,020,437		$	1,903,339
Income (loss) from operations
UGG brand wholesale	$	303,908		$	300,761		$	247,826
HOKA brand wholesale	61,860			35,717			20,954
Teva brand wholesale	30,736			27,939			20,400
Sanuk brand wholesale	3,212			12,781			14,474
Other brands wholesale	16,087			10,411			1,304
Direct-to-Consumer	182,548			185,449			156,896
Unallocated overhead costs	(260,216		)	(245,738		)	(239,270		)
Total	$	338,135		$	327,320		$	222,584



	Years Ended March 31,
	2020		2019		2018
Depreciation, amortization, and accretion
UGG brand wholesale	$	611	$	1,254	$	3,193
HOKA brand wholesale	612		456		485
Teva brand wholesale	1		10		12
Sanuk brand wholesale	2,361		4,171		4,174
Other brands wholesale	382		382		380
Direct-to-Consumer	10,586		12,195		13,396
Unallocated overhead costs	24,359		26,473		26,932
Total	$	38,912	$	44,941	$	48,572

Capital expenditures
UGG brand wholesale	$	404	$	205	$	58
HOKA brand wholesale	434		285		—
Teva brand wholesale	—		—		—
Sanuk brand wholesale	—		—		20
Other brands wholesale	64		11		—
Direct-to-Consumer	7,753		5,739		8,641
Unallocated overhead costs	23,800		22,846		26,094
Total	$	32,455	$	29,086	$	34,813

Assets allocated to each reportable operating segment include trade accounts receivable, net, inventories, net, 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 consolidated balance sheets, are as follows:



	As of March 31,
	2020		2019
Assets
UGG brand wholesale	$	245,239	$	240,411
HOKA brand wholesale	124,958		94,157
Teva brand wholesale	90,305		76,370
Sanuk brand wholesale	50,314		71,285
Other brands wholesale	21,535		14,618
Direct-to-Consumer	243,489		95,501
Total assets from reportable operating segments	775,840		592,342
Unallocated cash and cash equivalents	649,436		589,692
Unallocated deferred tax assets, net	28,233		30,870
Unallocated other corporate assets	311,609		214,302
Total	$	1,765,118	$	1,427,206