Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jun. 30, 2014 | Jul. 25, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'DECKERS OUTDOOR CORP | ' |
Entity Central Index Key | '0000910521 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 34,628,650 |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $158,226 | $245,088 |
Trade accounts receivable, net of allowances of $12,520 and $15,569 as of June 30, 2014 and March 31, 2014, respectively | 130,691 | 106,199 |
Inventories | 355,979 | 211,519 |
Prepaid expenses | 13,319 | 12,067 |
Other current assets | 27,872 | 27,118 |
Income taxes receivable | 17,070 | 0 |
Deferred tax assets | 22,421 | 21,871 |
Total current assets | 725,578 | 623,862 |
Property and equipment, net of accumulated depreciation of $111,261 and $103,090 as of June 30, 2014 and March 31, 2014, respectively | 187,804 | 184,570 |
Goodwill | 127,934 | 127,934 |
Other intangible assets, net of accumulated amortization of $27,912 and $26,026 as of June 30, 2014 and March 31, 2014, respectively | 89,487 | 91,411 |
Deferred tax assets | 17,062 | 17,062 |
Other assets | 20,748 | 19,365 |
Total assets | 1,168,613 | 1,064,204 |
Current liabilities: | ' | ' |
Short-term borrowings | 3,248 | 6,702 |
Trade accounts payable | 217,257 | 76,139 |
Accrued payroll | 21,589 | 22,927 |
Other accrued expenses | 12,401 | 11,624 |
Income taxes payable | 3,928 | 2,908 |
Value added tax (VAT) payable | 1,169 | 1,915 |
Total current liabilities | 259,592 | 122,215 |
Long-term liabilities | 53,939 | 53,140 |
Commitments and contingencies (note 5) | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $0.01 par value; authorized 125,000 shares; issued and outstanding 34,629 and 34,624 shares as of June 30, 2014 and March 31, 2014, respectively | 346 | 346 |
Additional paid-in capital | 149,810 | 146,731 |
Retained earnings | 706,753 | 743,815 |
Accumulated other comprehensive loss | -1,827 | -2,043 |
Total stockholders' equity | 855,082 | 888,849 |
Total liabilities and equity | $1,168,613 | $1,064,204 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Trade accounts receivable, allowances (in dollars) | $12,520 | $15,569 |
Property and equipment, accumulated depreciation | 111,261 | 103,090 |
Other intangible assets, accumulated amortization | $27,912 | $26,026 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized shares | 125,000,000 | 125,000,000 |
Common stock, issued shares | 34,629,000 | 34,624,000 |
Common stock, outstanding shares | 34,629,000 | 34,624,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive (Loss) Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' |
Net sales | $211,469 | $170,085 |
Cost of sales | 124,697 | 100,253 |
Gross profit | 86,772 | 69,832 |
Selling, general and administrative expenses | 137,254 | 112,583 |
Loss from operations | -50,482 | -42,751 |
Other expense (income), net: | ' | ' |
Interest income | -54 | -9 |
Interest expense | 438 | 380 |
Other, net | -96 | -70 |
Total other expense (income), net | 288 | 301 |
Loss before income taxes | -50,770 | -43,052 |
Income tax expense | -13,708 | -13,777 |
Net loss | -37,062 | -29,275 |
Other comprehensive income (loss), net of tax: | ' | ' |
Unrealized loss on foreign currency hedging | -260 | -210 |
Foreign currency translation adjustment | 476 | -1,089 |
Total other comprehensive income (loss) | 216 | -1,299 |
Comprehensive loss | ($36,846) | ($30,574) |
Net loss per share: | ' | ' |
Basic (in dollars per share) | ($1.07) | ($0.85) |
Diluted (in dollars per share) | ($1.07) | ($0.85) |
Weighted-average common shares outstanding: | ' | ' |
Basic (in shares) | 34,626 | 34,452 |
Diluted (in shares) | 34,626 | 34,452 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($37,062) | ($29,275) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation, amortization and accretion | 11,131 | 8,879 |
Change in fair value of contingent consideration | 24 | 138 |
Provision for doubtful accounts, net | 512 | 13 |
Deferred tax provision | 0 | -210 |
Stock compensation | 2,991 | 4,002 |
Other | 2,508 | 67 |
Changes in operating assets and liabilities: | ' | ' |
Trade accounts receivable | -25,004 | 429 |
Inventories | -144,460 | -103,766 |
Prepaid expenses and other current assets | -1,993 | 11,849 |
Income tax receivable | -16,923 | -13,873 |
Other assets | -1,382 | -1,355 |
Trade accounts payable | 141,117 | 111,729 |
Contingent consideration | -161 | 0 |
Accrued expenses | 1,973 | -523 |
Income taxes payable | 1,019 | -1,649 |
Long-term liabilities | 751 | 356 |
Net cash used in operating activities | -64,959 | -13,189 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -18,734 | -16,714 |
Purchases of intangible assets | 0 | -847 |
Net cash used in investing activities | -18,734 | -17,561 |
Cash flows from financing activities: | ' | ' |
Cash paid for shares withheld for taxes | -73 | -1,591 |
Excess tax benefits from stock compensation | 14 | 222 |
Contingent consideration and deferred payments paid | -115 | 0 |
Proceeds from issuance of short-term borrowing | 0 | 26,000 |
Cash paid for repayment of short-term borrowings | -3,458 | -10,000 |
Net cash (used in) provided by financing activities | -3,632 | 14,631 |
Effect of exchange rates on cash | 463 | 654 |
Net change in cash and cash equivalents | -86,862 | -15,465 |
Cash and cash equivalents at beginning of period | 245,088 | 64,591 |
Cash and cash equivalents at end of period | 158,226 | 49,126 |
Cash paid during the period for: | ' | ' |
Income taxes | 2,267 | 1,569 |
Interest | 290 | 358 |
Non-cash investing activity: | ' | ' |
Accruals for purchases of property and equipment | 264 | 4,111 |
Accruals for asset retirement obligations | 146 | 23 |
Non-cash financing activity: | ' | ' |
Accruals for shares withheld for taxes | $0 | $1,391 |
General
General | 3 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
General | ' |
General | |
(a) Basis of Presentation | |
The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements and, in the opinion of management, reflect all adjustments necessary for a fair presentation for each of the periods presented. The results of operations for interim periods are not necessarily indicative of results to be achieved for full fiscal years or other interim periods. Deckers Outdoor Corporation (also referred to as Deckers or the Company) is a global leader in designing, marketing and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high performance activities. The Company’s business is seasonal, with the highest percentage of UGG® brand net sales occurring in the quarters ending September 30 and December 31 and the highest percentage of Teva® and Sanuk® brand net sales occurring in the quarters ending March 31 and June 30 of each year. The other brands do not have a significant seasonal impact on the Company. | |
In February 2014, our Board of Directors approved a change in the Company's fiscal year (FY) end from December 31 to March 31. The change is intended to better align our planning, financial and reporting functions with the seasonality of our business. | |
We sell our brands through our quality domestic retailers and international distributors and retailers, as well as directly to our end-user consumers through our E-Commerce business and our retail stores. Independent third parties manufacture all of our products. | |
As contemplated by the Securities and Exchange Commission (SEC) under Rule 10-01 of Regulation S-X, the accompanying condensed consolidated financial statements and related footnotes have been condensed and do not contain certain information that will be included in the Company’s annual consolidated financial statements and footnotes thereto. For further information, refer to the consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 3, 2014 (Annual Report). | |
(b) Use of Estimates | |
The preparation of the Company’s condensed consolidated financial statements in accordance with United States generally accepted accounting principles (US GAAP) requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to inventory write-downs, accounts receivable reserves, returns liabilities, stock compensation, performance based compensation, impairment assessments, depreciation and amortization, income tax liabilities and uncertain tax positions, fair value of financial instruments, and fair values of acquired intangibles, assets and liabilities, including estimated contingent consideration payments. Actual results could differ materially from these estimates. | |
(c) Recent Accounting Pronouncement | |
On May 28, 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in US GAAP when it becomes effective. The new standard is effective for the Company on April 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
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 summarized as follows: | ||||||||
Goodwill, Net | Other | |||||||
Intangible | ||||||||
Assets, Net | ||||||||
Balance at March 31, 2014 | $ | 127,934 | $ | 91,411 | ||||
Adjustment to prior acquisitions | — | 43 | ||||||
Amortization expense | — | (1,887 | ) | |||||
Changes in foreign currency exchange rates | — | (80 | ) | |||||
Balance at June 30, 2014 | $ | 127,934 | $ | 89,487 | ||||
The Company’s goodwill by segment is as follows: | ||||||||
June 30, | March 31, | |||||||
2014 | 2014 | |||||||
UGG brand | $ | 6,101 | $ | 6,101 | ||||
Sanuk brand | 113,944 | 113,944 | ||||||
Other brands | 7,889 | 7,889 | ||||||
Total | $ | 127,934 | $ | 127,934 | ||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The fair values of the Company’s cash and cash equivalents, trade accounts receivable, prepaid expenses, other current assets, short-term borrowings, trade accounts payable, accrued payroll, accrued expenses, income taxes payable and VAT payable approximate the carrying values due to the relatively short maturities of these instruments. The fair values of the Company’s long-term liabilities, other than contingent consideration, recalculated using current interest rates, would not significantly differ from the recorded amounts. The fair value of the contingent consideration related to acquisitions and of the Company's derivatives are measured and recorded at fair value on a recurring basis. Changes in fair value resulting from either accretion or changes in discount rates or in the expectations of achieving the performance targets are recorded in selling, general and administrative expenses (SG&A). The Company records the fair value of assets or liabilities associated with derivative instruments and hedging activities in other current assets or other accrued expenses, respectively, in the condensed consolidated balance sheets. | ||||||||||||||||
In 2010, the Company established a nonqualified deferred compensation program that permits a select group of management employees to defer earnings to a future date on a nonqualified basis. For each plan year, on behalf of the Company, the Company’s Board of Directors (the Board) may, but is not required to, contribute any amount it desires to any participant under this program. The Company’s contribution will be determined by the Board annually in the quarter ending December 31. The value of the deferred compensation is recognized based on the fair value of the participants’ accounts. The Company has established a rabbi trust as a reserve for the benefits payable under this program. The assets of the trust are reported in other assets on the Company’s condensed consolidated balance sheets. All amounts deferred are presented in long-term liabilities in the condensed consolidated balance sheets. | ||||||||||||||||
The inputs used in measuring fair value are prioritized into the following hierarchy: | ||||||||||||||||
• | Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. | |||||||||||||||
• | Level 2: Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable. | |||||||||||||||
• | Level 3: Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. | |||||||||||||||
The table below summarizes the Company’s financial assets and liabilities that are measured on a recurring basis at fair value: | ||||||||||||||||
Fair value at June 30, | Fair Value Measurement Using | |||||||||||||||
2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets (liabilities) at fair value | ||||||||||||||||
Nonqualified deferred compensation asset | $ | 5,058 | $ | 5,058 | $ | — | $ | — | ||||||||
Nonqualified deferred compensation liability | $ | (5,058 | ) | $ | (5,058 | ) | $ | — | $ | — | ||||||
Designated derivatives assets | $ | 13 | $ | — | $ | 13 | $ | — | ||||||||
Designated derivatives liability | $ | (1,703 | ) | $ | — | $ | (1,703 | ) | $ | — | ||||||
Non-designated derivatives liability | $ | (81 | ) | $ | — | $ | (81 | ) | $ | — | ||||||
Contingent consideration for acquisition of business | $ | (30,000 | ) | $ | — | $ | — | $ | (30,000 | ) | ||||||
Fair value at March 31 | Fair Value Measurement Using | |||||||||||||||
2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets (liabilities) at fair value | ||||||||||||||||
Nonqualified deferred compensation asset | $ | 4,534 | $ | 4,534 | $ | — | $ | — | ||||||||
Nonqualified deferred compensation liability | $ | (4,534 | ) | $ | (4,534 | ) | $ | — | $ | — | ||||||
Designated derivatives liability | $ | (832 | ) | $ | — | $ | (832 | ) | $ | — | ||||||
Contingent consideration for acquisition of business | $ | (30,000 | ) | $ | — | $ | — | $ | (30,000 | ) | ||||||
The Level 2 inputs consist of forward spot rates at the end of the reporting period (see note 7). | ||||||||||||||||
The fair value of the contingent consideration is based on subjective assumptions. It is reasonably possible the estimated fair value of the contingent consideration could change in the near-term and the effect of the change could be material. | ||||||||||||||||
Sanuk® | ||||||||||||||||
The estimated fair value of the contingent consideration attributable to our Sanuk® (Sanuk) brand acquisition is based on the Sanuk brand estimated future gross profit in calendar year 2015, using a probability weighted average sales forecast to determine a best estimate of gross profit. The estimated sales forecast includes a compound annual growth rate (CAGR) of 20.7% from calendar year 2013 through calendar year 2015. The gross profit forecast for calendar year 2015 is approximately $78,000, which is then used to apply the contingent consideration percentage in accordance with the applicable agreement. The total estimated contingent consideration is then discounted to the present value with a discount rate of 7.0%. The Company’s use of different estimates and assumptions could produce different estimates of the value of the contingent consideration. For example, a 5.0% change in the estimated CAGR would change the total liability balance at June 30, 2014 by approximately $2,000. | ||||||||||||||||
Hoka One One® | ||||||||||||||||
In connection with the Company’s acquisition of the Hoka One One® (Hoka) brand, the purchase price includes contingent consideration with maximum payments of $2,000, which is based on the Hoka brand’s net sales for calendar years 2013 through 2017. The Company estimates future net sales using a probability weighted average sales forecast to determine a best estimate. The Company’s use of different estimates and assumptions is not expected to have a material impact to the value of the contingent consideration. | ||||||||||||||||
Refer to note 5 for further information on the contingent consideration arrangements. | ||||||||||||||||
The following table presents a reconciliation of the Level 3 measurement: | ||||||||||||||||
Balance at March 31, 2014 | $ | 30,000 | ||||||||||||||
Payments | — | |||||||||||||||
Change in fair value | — | |||||||||||||||
Balance at June 30, 2014 | $ | 30,000 | ||||||||||||||
Notes_Payable_and_Long_Term_De
Notes Payable and Long Term Debt | 3 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
Notes Payable and Long Term Debt | ' |
At June 30, 2014, the Company had no outstanding borrowings under the Amended and Restated Credit Agreement and outstanding letters of credit of approximately $100. As a result, the unused balance under the Amended and Restated Credit Agreement was approximately $399,900 at June 30, 2014. After applying the asset coverage ratio and adjusted leverage ratio, the amount available to borrow at June 30, 2014 was approximately $256,300. | |
At June 30, 2014, the Company had approximately $3,200 of outstanding borrowings under the China Credit Facility. Interest is based on the People’s Bank of China rate, which was 6.0% at June 30, 2014. Subsequent to June 30, 2014, the Company borrowed approximately $4,900 resulting in a total outstanding balance of approximately $8,100 under the China Credit Agreement through August 11, 2014. | |
Subsequent to June 30, 2014, the Company obtained a mortgage on its corporate headquarters property for approximately $33,900. The mortgage has a fixed interest rate of 4.928%. The loan is amortized for a 30 year period. The loan will mature and have a balloon payment due in 15 years. The loan will be used for working capital and other general corporate purposes. The mortgage contains financial covenants which include: the asset coverage ratio must be greater than 1.10 to 1.00; the sum of the consolidated annual earnings before interest, taxes, depreciation, and amortization (EBITDA) and annual rental expense, divided by the sum of the annual interest expense and the annual rental expense must be greater than 2.25 to 1.00; and other customary limitations. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
The Company is currently involved in various legal claims arising in the ordinary course of business. Management does not believe that the disposition of these matters, whether individually or in the aggregate, will have a material effect on the Company’s financial position or results of operations. | |
Contingent Consideration. In July 2011, the Company acquired the Sanuk brand, and the total purchase price included contingent consideration payments. As of June 30, 2014, the remaining contingent consideration payment, which has no maximum, is 40.0% of the Sanuk brand gross profit in calendar year 2015. | |
As of June 30, 2014 and March 31, 2014, contingent consideration for the acquisition of the Sanuk brand of approximately $28,000 is included within long-term liabilities in the condensed consolidated balance sheets. Refer to note 3 for further information on the contingent consideration amounts. | |
In September 2012, the Company acquired Hoka, and the total purchase price included contingent consideration payments with a maximum of $2,000. As of June 30, 2014 and March 31, 2014, contingent consideration for the acquisition of the Hoka brand of approximately $1,600 and $1,800, respectively, is included within other accrued expenses and long-term liabilities in the condensed consolidated balance sheets. Refer to note 3 for further information on the contingent consideration amounts. | |
Future Capital Commitments. As of June 30, 2014, the Company had approximately $21,000 of material commitments for future capital expenditures primarily related to equipment costs of its new distribution center. | |
Income Taxes. The Company files income tax returns in the US federal jurisdiction and various state, local, and foreign jurisdictions. When tax returns are filed, some positions taken are subject to uncertainty about the merits of the position taken or the amount that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which the Company believes it is more likely than not that the position will be sustained upon examination. Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement. The portion of the benefits that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying condensed consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. With few exceptions, the Company is no longer subject to US federal, state, local, or non-US income tax examinations by tax authorities for years before 2008. | |
Although the Company believes its tax estimates are reasonable and prepares its tax filings in accordance with all applicable tax laws, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company’s estimates or from its historical income tax provisions and accruals. The results of an audit or litigation could have a material effect on operating results or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, or interest assessments. | |
The Company has ongoing income tax examinations under various state tax jurisdictions. It is the opinion of management that these audits and inquiries will not have a material impact on the Company’s condensed consolidated financial statements. | |
Indemnification. The Company has agreed to indemnify certain of its licensees, distributors, and promotional partners in connection with claims related to the use of the Company’s intellectual property. The terms of such agreements range up to five years initially and generally do not provide for a limitation on the maximum potential future payments. From time to time, the Company also agrees to indemnify its licensees, distributors and promotional partners in connection with claims that the Company’s products infringe the intellectual property rights of third parties. These agreements may or may not be made pursuant to a written contract. | |
Management believes the likelihood of any payments under any of these arrangements is remote and would be immaterial. This determination was made based on a prior history of insignificant claims and related payments. There are no currently pending claims relating to indemnification matters involving the Company’s intellectual property. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Jun. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity | ' |
Stockholders’ Equity | |
In May 2006, the Company adopted the 2006 Equity Incentive Plan (2006 Plan), which was amended by Amendment No. 1 dated May 9, 2007. The primary purpose of the 2006 Plan is to encourage ownership in the Company by key personnel, whose long-term service is considered essential to the Company’s continued success. The 2006 Plan reserves 6,000,000 shares of the Company’s common stock for issuance to employees, directors, or consultants. The maximum aggregate number of shares that may be issued under the 2006 Plan through the exercise of incentive stock options (Options) is 4,500,000. Pursuant to the Deferred Stock Unit Compensation Plan, a sub plan under the 2006 Plan, a participant may elect to defer settlement of their outstanding unvested awards until such time as elected by the participant. | |
The Company has elected to grant nonvested stock units (NSUs) annually to key personnel. The NSUs granted entitle the employee recipients to receive shares of common stock in the Company upon vesting of the NSUs. The vesting of most NSUs is subject to achievement of certain performance targets. During the three months ended June 30, 2014, the Company granted approximately 35,000 NSUs at a weighted-average grant date fair value of $86.03 per share, as well as approximately 19,000 time-based equity awards at a weighted-average grant date fair value of $78.78 per share under the 2006 Plan. The NSUs will vest in equal one-third installments at the end of each of the three years after the performance goal has been achieved, and the time-based equity awards have no Company performance targets and will vest in equal annual installments over a three year period. The vesting schedule for these awards was established to encourage officers and key employees to remain with our Company for the long-term. As of June 30, 2014, future unrecognized compensation cost for these NSU and time-based equity awards, excluding estimated forfeitures, is approximately $4,300. As of June 30, 2014, the Company believed that the achievement of at least the threshold performance objective of the NSU awards was probable, and therefore recognized compensation expense accordingly for these awards. | |
On a quarterly basis, the Company grants fully-vested shares of its common stock to each of its outside directors. The fair value of such shares is expensed on the date of issuance. | |
In June 2012, the Company approved a stock repurchase program to repurchase up to $200,000 of the Company’s common stock in the open market or in privately negotiated transactions, subject to market conditions, applicable legal requirements, and other factors. The program does not obligate the Company to acquire any particular amount of common stock and the program may be suspended at any time at the Company’s discretion. There was no stock repurchased during the three months ended June 30, 2014. As of June 30, 2014, the Company had repurchased approximately 2,765,000 shares under this program, for approximately $120,700, or an average price of $43.66 per share, leaving the remaining approved amount at approximately $79,300. | |
Subsequent to June 30, 2014, the Company granted approximately 105,000 NSUs at a weighted-average grant date fair value of $82.85 per share, as well as approximately 4,000 time-based equity awards at a weighted-average grant date fair value of $82.85 per share under the 2006 Plan. Future unrecognized compensation cost for these awards, excluding estimated forfeitures, is approximately $9,000. |
Foreign_Currency_Exchange_Cont
Foreign Currency Exchange Contracts and Hedging | 3 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Foreign Currency Exchange Contracts and Hedging | ' | ||||||||||||||||
Foreign Currency Exchange Contracts and Hedging | |||||||||||||||||
As of June 30, 2014, the Company had foreign currency forward contracts designated as cash-flow hedges with notional amounts totaling approximately $64,000, held by four counterparties and had non-designated derivative contracts with notional amounts totaling approximately $34,000, held by one counterparty. At March 31, 2014, the Company had foreign currency forward contracts designated as cash-flow hedges with notional amounts totaling approximately $64,000, held by four counterparties. At June 30, 2014, the outstanding contracts were expected to mature over the next 6 months. | |||||||||||||||||
The nonperformance risk of the Company and the counterparties did not have a material impact on the fair value of the derivatives. During the three months ended June 30, 2014, the ineffective portion relating to these hedges was immaterial and the hedges remained effective as of June 30, 2014. The effective portion of the gain or loss on the derivative is reported in other comprehensive income (loss) (OCI/L) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. As of June 30, 2014, the total amount in accumulated other comprehensive income (loss) (AOCI/L) (see note 8) was expected to be reclassified into income within the next 9 months. | |||||||||||||||||
The following table summarizes the effect of foreign exchange contracts designated as cash flow hedging relationships on the condensed consolidated financial statements: | |||||||||||||||||
For the Three Months Ended | Amount of Gain (Loss) Recognized in OCI/L on Derivative (Effective Portion) | Location of Gain (Loss) Reclassified from AOCI/L into Income (Effective Portion) | Reclassified from AOCI/L into Income (Effective Portion) | Location of Amount Excluded from Effectiveness Testing | Gain (Loss) from Amount Excluded from Effectiveness Testing | ||||||||||||
June 30, | |||||||||||||||||
2014 | $ | (823 | ) | Net sales | $ | (13 | ) | SG&A | $ | (35 | ) | ||||||
2013 | $ | 2,154 | Net sales | $ | — | SG&A | $ | (5 | ) | ||||||||
The following table summarizes the effect of foreign exchange contracts not designated as hedging instruments on the condensed consolidated financial statements: | |||||||||||||||||
For the Three Months Ended | Location of Gain (Loss) Recognized in Income (Loss) on Derivatives | Amount of Gain (Loss) Recognized in Income (Loss) on Derivatives | |||||||||||||||
June 30, | |||||||||||||||||
2014 | SG&A | $ | (81 | ) | |||||||||||||
2013 | SG&A | $ | — | ||||||||||||||
Subsequent to June 30, 2014, the Company entered into a non-designated derivative contract, held by a counterparty to one of its designated hedging instruments, with a notional amount totaling approximately $10,000. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Equity [Abstract] | ' | |||||||
Accumulated Other Comprehensive Loss | ' | |||||||
Accumulated Other Comprehensive Loss | ||||||||
Accumulated balances of the components within accumulated other comprehensive loss were as follows: | ||||||||
June 30, | March 31, | |||||||
2014 | 2014 | |||||||
Unrealized loss on foreign currency hedging, net of tax | $ | (1,019 | ) | $ | (759 | ) | ||
Cumulative foreign currency translation adjustment, net of tax | (808 | ) | (1,284 | ) | ||||
Accumulated other comprehensive loss | $ | (1,827 | ) | $ | (2,043 | ) |
Net_Loss_per_Share
Net Loss per Share | 3 Months Ended | |||||
Jun. 30, 2014 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Net Loss per Share | ' | |||||
Net Loss per Share | ||||||
Basic net loss per share represents net loss divided by the weighted-average number of common shares outstanding for the period. Diluted net loss per share represents net loss divided by the weighted-average number of common shares outstanding, including the dilutive impact of potential issuances of common stock. The reconciliations of basic to diluted weighted-average common shares outstanding were as follows: | ||||||
Three Months Ended | ||||||
June 30, | ||||||
2014 | 2013 | |||||
Weighted-average shares used in basic computation | 34,626,000 | 34,452,000 | ||||
Dilutive effect of stock-based awards* | — | — | ||||
Weighted-average shares used for diluted computation | 34,626,000 | 34,452,000 | ||||
*Excluded NSUs | 377,000 | 523,000 | ||||
*Excluded restricted stock units (RSUs) | 729,000 | 671,000 | ||||
*Excluded outside director restricted stock awards (RSAs) | 7,000 | — | ||||
*Excluded stock appreciation rights (SARs) | 730,000 | 730,000 | ||||
*Excluded options | — | 8,000 | ||||
* For the three months ended June 30, 2014 and 2013, the Company excluded all NSUs, RSUs, RSAs and SARs from the diluted net loss per share computation because they were antidilutive due to the net loss during the period. |
Business_Segments_Concentratio
Business Segments, Concentration of Business, and Credit Risk and Significant Customers | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Business Segments, Concentration of Business, and Credit Risk and Significant Customers | ' | |||||||
Business Segments, Concentration of Business, and Credit Risk and Significant Customers | ||||||||
The Company’s accounting policies of the segments below are the same as those described in the summary of significant accounting policies in the Annual Report, except that the Company does not allocate corporate overhead costs or non-operating income and expenses to segments. The Company evaluates segment performance primarily based on net sales and income or loss from operations. The Company’s reportable segments include the strategic business units for the worldwide wholesale operations of the UGG brand, Teva brand, Sanuk brand, and other brands, its E-Commerce business and its retail store business. The wholesale operations of each brand are managed separately because each requires different marketing, research and development, design, sourcing, and sales strategies. The E-Commerce and retail store segments are managed separately because they are Direct-to-Consumer sales, while the brand segments are wholesale sales. The income or loss from operations for each of the segments includes only those costs that are specifically related to each segment, which consist primarily of cost of sales, costs for research and development, design, selling and marketing, depreciation, amortization, and the costs of employees and their respective expenses that are directly related to each segment. The unallocated corporate overhead costs include: costs of the distribution centers, certain executive and stock compensation, accounting and finance, legal, information technology, human resources, and facilities costs, among others. | ||||||||
The Company’s other brands include TSUBO®, Ahnu®, MOZO®, and Hoka One One® (Hoka). The wholesale operations of the Company’s other brands are included as one reportable segment, other wholesale, presented in the figures below. Business segment information is summarized as follows: | ||||||||
Three Months Ended | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Net sales to external customers: | ||||||||
UGG wholesale | $ | 74,193 | $ | 62,366 | ||||
Teva wholesale | 35,665 | 28,748 | ||||||
Sanuk wholesale | 32,329 | 27,786 | ||||||
Other wholesale | 11,825 | 7,978 | ||||||
E-Commerce | 15,427 | 10,736 | ||||||
Retail stores | 42,030 | 32,471 | ||||||
$ | 211,469 | $ | 170,085 | |||||
Income (loss) from operations: | ||||||||
UGG wholesale | $ | 2,693 | $ | (510 | ) | |||
Teva wholesale | 4,782 | 2,149 | ||||||
Sanuk wholesale | 6,905 | 6,489 | ||||||
Other wholesale | (4,011 | ) | (2,489 | ) | ||||
E-Commerce | 809 | 1,669 | ||||||
Retail stores | (15,851 | ) | (9,818 | ) | ||||
Unallocated overhead costs | (45,809 | ) | (40,241 | ) | ||||
$ | (50,482 | ) | $ | (42,751 | ) | |||
Inter-segment sales from the Company’s wholesale segments to the Company’s E-Commerce and retail stores segments are at the Company’s cost, and there is no inter-segment profit on these inter-segment sales. Income (loss) from operations of the wholesale segments does not include any inter-segment gross profit from sales to the E-Commerce and retail stores segments. | ||||||||
Business segment asset information is summarized as follows: | ||||||||
June 30, | March 31, | |||||||
2014 | 2014 | |||||||
Total assets for reportable segments: | ||||||||
UGG wholesale | $ | 333,116 | $ | 153,341 | ||||
Teva wholesale | 61,489 | 81,766 | ||||||
Sanuk wholesale | 219,127 | 214,627 | ||||||
Other wholesale | 40,344 | 41,281 | ||||||
E-Commerce | 4,569 | 3,129 | ||||||
Retail stores | 144,474 | 160,535 | ||||||
$ | 803,119 | $ | 654,679 | |||||
The assets allocable to each segment include accounts receivable, inventory, fixed assets, intangible assets, and certain other assets that are specifically identifiable with one of the Company’s segments. Unallocated assets are the assets not specifically related to the segments and include cash and cash equivalents, deferred tax assets, and various other assets shared by the Company’s segments. Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets are as follows: | ||||||||
June 30, | March 31, | |||||||
2014 | 2014 | |||||||
Total assets for reportable segments | $ | 803,119 | $ | 654,679 | ||||
Unallocated cash and cash equivalents | 158,226 | 245,088 | ||||||
Unallocated deferred tax assets | 39,483 | 38,933 | ||||||
Other unallocated corporate assets | 167,785 | 125,504 | ||||||
Consolidated total assets | $ | 1,168,613 | $ | 1,064,204 | ||||
The Company does not consider international operations a separate segment, as management reviews such operations in the aggregate with the aforementioned segments. Long-lived assets, which consist of property and equipment, in the US and all other countries combined were as follows: | ||||||||
June 30, | March 31, | |||||||
2014 | 2014 | |||||||
US | $ | 150,337 | $ | 148,178 | ||||
All other countries* | 37,467 | 36,392 | ||||||
Total | $ | 187,804 | $ | 184,570 | ||||
* No other country’s long-lived assets comprised more than 10% of total long-lived assets as of June 30, 2014 and March 31, 2014. | ||||||||
The Company sells its products to customers throughout the US and to foreign customers located in Europe, Canada, Australia, Asia, and Latin America, among other regions. International sales were 37.5% and 35.3% of the Company’s total net sales for the three months ended June 30, 2014 and 2013, respectively. For the three months ended June 30, 2014 and 2013, no single foreign country comprised more than 10% of total net sales. | ||||||||
Management performs regular evaluations concerning the ability of its customers to satisfy their obligations and records a provision for doubtful accounts based upon these evaluations. No single customer accounted for more than 10% of net sales for either the three months ended June 30, 2014 or 2013. As of June 30, 2014 and March 31, 2014, the Company had one customer representing 11.1% and 11.8% of net trade accounts receivable, and a second customer representing 10.4% and 11.4% of net trade accounts receivable, respectively. | ||||||||
The Company’s production is concentrated at a limited number of independent contractor factories. Sheepskin is the principal raw material for certain UGG products and the majority of sheepskin is purchased from two tanneries in China, which is sourced primarily from Australia, Europe and the US. The source for other materials used by the Company is concentrated in China and Vietnam. The Company’s operations are subject to the customary risks of doing business abroad, including, but not limited to, currency fluctuations, customs duties and related fees, various import controls and other nontariff barriers, restrictions on the transfer of funds, labor unrest and strikes and, in certain parts of the world, political instability. The supply of sheepskin can be adversely impacted by weather conditions, disease, and harvesting decisions that are completely outside the Company’s control. Further, the price of sheepskin is impacted by demand, industry, and competitors. | ||||||||
A portion of the Company’s cash and cash equivalents are held as cash in operating accounts that are with third party financial institutions. These balances, at times, exceed the Federal Deposit Insurance Corporation insurance limits. While the Company regularly monitors the cash balances in its operating accounts and adjusts the balances as appropriate, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. As of June 30, 2014, the Company had experienced no loss or lack of access to cash in its operating accounts. | ||||||||
The remainder of the Company’s cash equivalents is invested in interest bearing funds managed by third party investment management institutions. These investments can include US treasury bonds and securities, money market funds, and municipal bonds, among other investments. Certain of these investments are subject to general credit, liquidity, market, and interest rate risks. Investment risk has been and may further be exacerbated by US mortgage defaults, credit and liquidity issues, and sovereign debt concerns in Europe, which have affected various sectors of the financial markets. As of June 30, 2014, the Company had experienced no loss or lack of access to its invested cash and cash equivalents. The Company’s cash and cash equivalents are as follows: | ||||||||
June 30, | March 31, | |||||||
2014 | 2014 | |||||||
Money market fund accounts | $ | 63,221 | $ | 143,816 | ||||
Cash | 95,005 | 101,272 | ||||||
Total Cash and Cash Equivalents | $ | 158,226 | $ | 245,088 | ||||
General_Policies
General (Policies) | 3 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
(a) Basis of Presentation | |
The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements and, in the opinion of management, reflect all adjustments necessary for a fair presentation for each of the periods presented. The results of operations for interim periods are not necessarily indicative of results to be achieved for full fiscal years or other interim periods. Deckers Outdoor Corporation (also referred to as Deckers or the Company) is a global leader in designing, marketing and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high performance activities. The Company’s business is seasonal, with the highest percentage of UGG® brand net sales occurring in the quarters ending September 30 and December 31 and the highest percentage of Teva® and Sanuk® brand net sales occurring in the quarters ending March 31 and June 30 of each year. The other brands do not have a significant seasonal impact on the Company. | |
In February 2014, our Board of Directors approved a change in the Company's fiscal year (FY) end from December 31 to March 31. The change is intended to better align our planning, financial and reporting functions with the seasonality of our business. | |
We sell our brands through our quality domestic retailers and international distributors and retailers, as well as directly to our end-user consumers through our E-Commerce business and our retail stores. Independent third parties manufacture all of our products. | |
As contemplated by the Securities and Exchange Commission (SEC) under Rule 10-01 of Regulation S-X, the accompanying condensed consolidated financial statements and related footnotes have been condensed and do not contain certain information that will be included in the Company’s annual consolidated financial statements and footnotes thereto. For further information, refer to the consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 3, 2014 (Annual Report). | |
Use of Estimates | ' |
(b) Use of Estimates | |
The preparation of the Company’s condensed consolidated financial statements in accordance with United States generally accepted accounting principles (US GAAP) requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to inventory write-downs, accounts receivable reserves, returns liabilities, stock compensation, performance based compensation, impairment assessments, depreciation and amortization, income tax liabilities and uncertain tax positions, fair value of financial instruments, and fair values of acquired intangibles, assets and liabilities, including estimated contingent consideration payments. Actual results could differ materially from these estimates. | |
Recent Accounting Pronouncement | ' |
Recent Accounting Pronouncement | |
On May 28, 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in US GAAP when it becomes effective. The new standard is effective for the Company on April 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule of goodwill and other intangible assets | ' | |||||||
The Company’s goodwill and other intangible assets are summarized as follows: | ||||||||
Goodwill, Net | Other | |||||||
Intangible | ||||||||
Assets, Net | ||||||||
Balance at March 31, 2014 | $ | 127,934 | $ | 91,411 | ||||
Adjustment to prior acquisitions | — | 43 | ||||||
Amortization expense | — | (1,887 | ) | |||||
Changes in foreign currency exchange rates | — | (80 | ) | |||||
Balance at June 30, 2014 | $ | 127,934 | $ | 89,487 | ||||
Schedule of total goodwill by segment | ' | |||||||
The Company’s goodwill by segment is as follows: | ||||||||
June 30, | March 31, | |||||||
2014 | 2014 | |||||||
UGG brand | $ | 6,101 | $ | 6,101 | ||||
Sanuk brand | 113,944 | 113,944 | ||||||
Other brands | 7,889 | 7,889 | ||||||
Total | $ | 127,934 | $ | 127,934 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of Company's financial assets and liabilities measured on a recurring basis at fair value | ' | |||||||||||||||
The table below summarizes the Company’s financial assets and liabilities that are measured on a recurring basis at fair value: | ||||||||||||||||
Fair value at June 30, | Fair Value Measurement Using | |||||||||||||||
2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets (liabilities) at fair value | ||||||||||||||||
Nonqualified deferred compensation asset | $ | 5,058 | $ | 5,058 | $ | — | $ | — | ||||||||
Nonqualified deferred compensation liability | $ | (5,058 | ) | $ | (5,058 | ) | $ | — | $ | — | ||||||
Designated derivatives assets | $ | 13 | $ | — | $ | 13 | $ | — | ||||||||
Designated derivatives liability | $ | (1,703 | ) | $ | — | $ | (1,703 | ) | $ | — | ||||||
Non-designated derivatives liability | $ | (81 | ) | $ | — | $ | (81 | ) | $ | — | ||||||
Contingent consideration for acquisition of business | $ | (30,000 | ) | $ | — | $ | — | $ | (30,000 | ) | ||||||
Fair value at March 31 | Fair Value Measurement Using | |||||||||||||||
2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets (liabilities) at fair value | ||||||||||||||||
Nonqualified deferred compensation asset | $ | 4,534 | $ | 4,534 | $ | — | $ | — | ||||||||
Nonqualified deferred compensation liability | $ | (4,534 | ) | $ | (4,534 | ) | $ | — | $ | — | ||||||
Designated derivatives liability | $ | (832 | ) | $ | — | $ | (832 | ) | $ | — | ||||||
Contingent consideration for acquisition of business | $ | (30,000 | ) | $ | — | $ | — | $ | (30,000 | ) | ||||||
Schedule of reconciliation of beginning and ending amounts related to the fair value for contingent consideration for acquisition of business, categorized as Level 3 | ' | |||||||||||||||
The following table presents a reconciliation of the Level 3 measurement: | ||||||||||||||||
Balance at March 31, 2014 | $ | 30,000 | ||||||||||||||
Payments | — | |||||||||||||||
Change in fair value | — | |||||||||||||||
Balance at June 30, 2014 | $ | 30,000 | ||||||||||||||
Foreign_Currency_Exchange_Cont1
Foreign Currency Exchange Contracts and Hedging (Tables) | 3 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of location and amount of gains and losses related to derivatives designated as hedging instruments reported in consolidated financial statements | ' | ||||||||||||||||
The following table summarizes the effect of foreign exchange contracts designated as cash flow hedging relationships on the condensed consolidated financial statements: | |||||||||||||||||
For the Three Months Ended | Amount of Gain (Loss) Recognized in OCI/L on Derivative (Effective Portion) | Location of Gain (Loss) Reclassified from AOCI/L into Income (Effective Portion) | Reclassified from AOCI/L into Income (Effective Portion) | Location of Amount Excluded from Effectiveness Testing | Gain (Loss) from Amount Excluded from Effectiveness Testing | ||||||||||||
June 30, | |||||||||||||||||
2014 | $ | (823 | ) | Net sales | $ | (13 | ) | SG&A | $ | (35 | ) | ||||||
2013 | $ | 2,154 | Net sales | $ | — | SG&A | $ | (5 | ) | ||||||||
The following table summarizes the effect of foreign exchange contracts not designated as hedging instruments on the condensed consolidated financial statements: | |||||||||||||||||
For the Three Months Ended | Location of Gain (Loss) Recognized in Income (Loss) on Derivatives | Amount of Gain (Loss) Recognized in Income (Loss) on Derivatives | |||||||||||||||
June 30, | |||||||||||||||||
2014 | SG&A | $ | (81 | ) | |||||||||||||
2013 | SG&A | $ | — | ||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (AOCL) (Tables) | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Equity [Abstract] | ' | |||||||
Components of accumulated other comprehensive loss | ' | |||||||
Accumulated balances of the components within accumulated other comprehensive loss were as follows: | ||||||||
June 30, | March 31, | |||||||
2014 | 2014 | |||||||
Unrealized loss on foreign currency hedging, net of tax | $ | (1,019 | ) | $ | (759 | ) | ||
Cumulative foreign currency translation adjustment, net of tax | (808 | ) | (1,284 | ) | ||||
Accumulated other comprehensive loss | $ | (1,827 | ) | $ | (2,043 | ) |
Net_Loss_per_Share_Tables
Net Loss per Share (Tables) | 3 Months Ended | |||||
Jun. 30, 2014 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Schedule of reconciliations of basic to diluted weighted-average common shares outstanding | ' | |||||
The reconciliations of basic to diluted weighted-average common shares outstanding were as follows: | ||||||
Three Months Ended | ||||||
June 30, | ||||||
2014 | 2013 | |||||
Weighted-average shares used in basic computation | 34,626,000 | 34,452,000 | ||||
Dilutive effect of stock-based awards* | — | — | ||||
Weighted-average shares used for diluted computation | 34,626,000 | 34,452,000 | ||||
*Excluded NSUs | 377,000 | 523,000 | ||||
*Excluded restricted stock units (RSUs) | 729,000 | 671,000 | ||||
*Excluded outside director restricted stock awards (RSAs) | 7,000 | — | ||||
*Excluded stock appreciation rights (SARs) | 730,000 | 730,000 | ||||
*Excluded options | — | 8,000 | ||||
Business_Segments_Concentratio1
Business Segments, Concentration of Business, and Credit Risk and Significant Customers (Tables) | 3 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
Schedule of business segments information | ' | |||||||
The wholesale operations of the Company’s other brands are included as one reportable segment, other wholesale, presented in the figures below. Business segment information is summarized as follows: | ||||||||
Three Months Ended | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Net sales to external customers: | ||||||||
UGG wholesale | $ | 74,193 | $ | 62,366 | ||||
Teva wholesale | 35,665 | 28,748 | ||||||
Sanuk wholesale | 32,329 | 27,786 | ||||||
Other wholesale | 11,825 | 7,978 | ||||||
E-Commerce | 15,427 | 10,736 | ||||||
Retail stores | 42,030 | 32,471 | ||||||
$ | 211,469 | $ | 170,085 | |||||
Income (loss) from operations: | ||||||||
UGG wholesale | $ | 2,693 | $ | (510 | ) | |||
Teva wholesale | 4,782 | 2,149 | ||||||
Sanuk wholesale | 6,905 | 6,489 | ||||||
Other wholesale | (4,011 | ) | (2,489 | ) | ||||
E-Commerce | 809 | 1,669 | ||||||
Retail stores | (15,851 | ) | (9,818 | ) | ||||
Unallocated overhead costs | (45,809 | ) | (40,241 | ) | ||||
$ | (50,482 | ) | $ | (42,751 | ) | |||
Business segment asset information is summarized as follows: | ||||||||
June 30, | March 31, | |||||||
2014 | 2014 | |||||||
Total assets for reportable segments: | ||||||||
UGG wholesale | $ | 333,116 | $ | 153,341 | ||||
Teva wholesale | 61,489 | 81,766 | ||||||
Sanuk wholesale | 219,127 | 214,627 | ||||||
Other wholesale | 40,344 | 41,281 | ||||||
E-Commerce | 4,569 | 3,129 | ||||||
Retail stores | 144,474 | 160,535 | ||||||
$ | 803,119 | $ | 654,679 | |||||
Schedule of reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ' | |||||||
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets are as follows: | ||||||||
June 30, | March 31, | |||||||
2014 | 2014 | |||||||
Total assets for reportable segments | $ | 803,119 | $ | 654,679 | ||||
Unallocated cash and cash equivalents | 158,226 | 245,088 | ||||||
Unallocated deferred tax assets | 39,483 | 38,933 | ||||||
Other unallocated corporate assets | 167,785 | 125,504 | ||||||
Consolidated total assets | $ | 1,168,613 | $ | 1,064,204 | ||||
Schedule of long-lived assets, which consist of property and equipment, by major country | ' | |||||||
Long-lived assets, which consist of property and equipment, in the US and all other countries combined were as follows: | ||||||||
June 30, | March 31, | |||||||
2014 | 2014 | |||||||
US | $ | 150,337 | $ | 148,178 | ||||
All other countries* | 37,467 | 36,392 | ||||||
Total | $ | 187,804 | $ | 184,570 | ||||
* No other country’s long-lived assets comprised more than 10% of total long-lived assets as of June 30, 2014 and March 31, 2014. | ||||||||
Schedule of the Company's cash and cash equivalents | ' | |||||||
The Company’s cash and cash equivalents are as follows: | ||||||||
June 30, | March 31, | |||||||
2014 | 2014 | |||||||
Money market fund accounts | $ | 63,221 | $ | 143,816 | ||||
Cash | 95,005 | 101,272 | ||||||
Total Cash and Cash Equivalents | $ | 158,226 | $ | 245,088 | ||||
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Changes in goodwill | ' |
Goodwill, net, balance at the beginning of the period | $127,934 |
Goodwill, net, balance at the end of the period | 127,934 |
Other intangible assets, net: | ' |
Other intangible assets, net, balance at beginning of the period | 91,411 |
Adjustment to prior acquisitions | 43 |
Amortization expense | -1,887 |
Changes in foreign currency exchange rates | -80 |
Other intangible assets, net, balance at end of the period | $89,487 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill | ' | ' |
Goodwill | $127,934 | $127,934 |
UGG brand | ' | ' |
Goodwill | ' | ' |
Goodwill | 6,101 | 6,101 |
Sanuk brand | ' | ' |
Goodwill | ' | ' |
Goodwill | 113,944 | 113,944 |
Other brands | ' | ' |
Goodwill | ' | ' |
Goodwill | $7,889 | $7,889 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Recurring basis, USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value | ' | ' |
Assets (Liabilities) at fair value | ' | ' |
Nonqualified deferred compensation assets | $5,058 | $4,534 |
Nonqualified deferred compensation liability | -5,058 | -4,534 |
Designated derivatives assets | 13 | ' |
Designated derivatives liability | -1,703 | -832 |
Non-designated derivatives liability | -81 | ' |
Contingent consideration for acquisition of business | -30,000 | -30,000 |
Level 1 | ' | ' |
Assets (Liabilities) at fair value | ' | ' |
Nonqualified deferred compensation assets | 5,058 | 4,534 |
Nonqualified deferred compensation liability | -5,058 | -4,534 |
Designated derivatives assets | 0 | ' |
Designated derivatives liability | 0 | ' |
Non-designated derivatives liability | 0 | ' |
Contingent consideration for acquisition of business | 0 | ' |
Level 2 | ' | ' |
Assets (Liabilities) at fair value | ' | ' |
Nonqualified deferred compensation assets | 0 | ' |
Nonqualified deferred compensation liability | 0 | ' |
Designated derivatives assets | 13 | ' |
Designated derivatives liability | -1,703 | -832 |
Non-designated derivatives liability | -81 | ' |
Contingent consideration for acquisition of business | 0 | ' |
Level 3 | ' | ' |
Assets (Liabilities) at fair value | ' | ' |
Nonqualified deferred compensation assets | 0 | ' |
Nonqualified deferred compensation liability | 0 | ' |
Designated derivatives assets | 0 | ' |
Designated derivatives liability | 0 | ' |
Non-designated derivatives liability | 0 | ' |
Contingent consideration for acquisition of business | ($30,000) | ($30,000) |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 |
Contingent Consideration Arrangement | ' | ' |
Reconciliation of beginning and ending amounts related to the fair value for contingent consideration for acquisition of business, categorized as Level 3 | ' | ' |
Balance at the beginning of the period | $30,000 | ' |
Payments | 0 | ' |
Change in fair value | 0 | ' |
Balance at the end of the period | 30,000 | ' |
Sanuk | ' | ' |
Contingent consideration | ' | ' |
Contingent consideration arrangement for acquisition of businesses | 28,000 | 28,000 |
Sanuk | Contingent Consideration Arrangement | ' | ' |
Contingent consideration | ' | ' |
Compound annual growth rate (CAGR) (as a percent) | 20.70% | ' |
Gross profit range | 78,000 | ' |
Discount rate (as percent) | 7.00% | ' |
Percentage point change to compound annual growth rate | 5.00% | ' |
Effect of a five-percentage-point change to total liability | 2,000 | ' |
Hoka | ' | ' |
Contingent consideration | ' | ' |
Contingent consideration arrangement for acquisition of businesses | 1,600 | 1,800 |
Hoka | Contingent Consideration Arrangement | ' | ' |
Contingent consideration | ' | ' |
Contingent consideration arrangement for acquisition of businesses | $2,000 | ' |
Credit_Agreement_Details
Credit Agreement (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2014 | Aug. 11, 2014 | Aug. 11, 2014 |
Credit Agreement | China Credit Agreement | China Credit Agreement | Mortgage | |
Subsequent Event | Subsequent Event | |||
Notes Payable and Long-Term Debt | ' | ' | ' | ' |
Outstanding borrowings | $0 | $3,200,000 | $8,100,000 | ' |
Outstanding letters of credit | 100,000 | ' | ' | ' |
Amount unused balance under the Credit Agreement | 399,900,000 | ' | ' | ' |
Current borrowing capacity | 256,300,000 | ' | ' | ' |
Effective interest rate on debt | ' | 6.00% | ' | 4.93% |
Increase in borrowings | ' | ' | 4,900,000 | ' |
Loan amortization period | ' | ' | ' | '30 years |
Gross amount of mortgage | ' | ' | ' | $33,900,000 |
Term of mortgage loan | ' | ' | ' | '15 years |
Asset coverage ratio per debt covenant | ' | ' | ' | 1.1 |
Debt covenant ratio for earnings, EBITDA, and annual rental expense | ' | ' | ' | 2.25 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | ||
Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2012 | |
Commitments and Contingencies | ' | ' | ' |
Maximum indemnity period of claims for intellectual property | '5 years | ' | ' |
Indemnification | ' | ' | ' |
Commitments and Contingencies | ' | ' | ' |
Number of pending claims | 0 | ' | ' |
Sanuk | ' | ' | ' |
Commitments and Contingencies | ' | ' | ' |
Contingent consideration | $28,000,000 | $28,000,000 | ' |
Sanuk | Gross profit performance criteria | ' | ' | ' |
Commitments and Contingencies | ' | ' | ' |
Contingent consideration performance percentage applied to gross profit in 2015 | 40.00% | ' | ' |
Hoka | ' | ' | ' |
Commitments and Contingencies | ' | ' | ' |
Contingent consideration | 1,600,000 | 1,800,000 | ' |
Maximum contingent consideration payments | ' | ' | 2,000,000 |
Future capital expenditures | ' | ' | ' |
Commitments and Contingencies | ' | ' | ' |
Material commitments | $21,000,000 | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 1 Months Ended | 3 Months Ended | 25 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||
Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Aug. 11, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Aug. 11, 2014 | Jun. 30, 2014 | Aug. 11, 2014 | |
Subsequent Event | 2006 Equity Incentive Plan (2006 Plan) | Nonvested stock units issued (NSUs) | Nonvested stock units issued (NSUs) | Time-based equity award | Time-based equity award | ||||
2006 Equity Incentive Plan (2006 Plan) | 2006 Equity Incentive Plan (2006 Plan) | 2006 Equity Incentive Plan (2006 Plan) | 2006 Equity Incentive Plan (2006 Plan) | ||||||
Subsequent Event | Subsequent Event | ||||||||
Stockholders' equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock reserved for issuance (in shares) | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' |
Maximum number of shares that may be issued through the exercise of incentive stock options | ' | ' | ' | ' | 4,500,000 | ' | ' | ' | ' |
Number of shares granted | ' | ' | ' | ' | ' | 35,000 | 105,000 | 19,000 | 4,000 |
Weighted average grant date fair value | ' | ' | ' | ' | ' | $86.03 | $82.85 | $78.78 | $82.85 |
NSUs granted that will vest at the end of each of the three years after the performance goals are achieved (as a percent) | ' | ' | ' | ' | ' | 33.30% | ' | ' | ' |
Award vesting period of the grants | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Compensation cost not yet recognized | ' | $4,300,000 | $4,300,000 | $9,000,000 | ' | ' | ' | ' | ' |
Maximum stock repurchase amount approved by Board of Directors | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares repurchased | ' | 0 | 2,765,000 | ' | ' | ' | ' | ' | ' |
Repurchase of common stock, payments | ' | ' | 120,700,000 | ' | ' | ' | ' | ' | ' |
Average stock price of shares repurchased (in dollars per share) | ' | ' | $43.66 | ' | ' | ' | ' | ' | ' |
Remaining stock repurchase amount approved by Board of Directors | ' | ' | $79,300,000 | ' | ' | ' | ' | ' | ' |
Foreign_Currency_Exchange_Cont2
Foreign Currency Exchange Contracts and Hedging (Details) (USD $) | 3 Months Ended | ||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 11, 2014 | Mar. 31, 2014 | Jun. 30, 2014 |
Foreign currency exchange contracts | Derivatives designated as cash flow hedges | Derivatives designated as cash flow hedges | Non-designated derivatives | Non-designated derivatives | Non-designated derivatives | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | ||
Foreign currency exchange contracts | Foreign currency exchange contracts | Foreign currency exchange contracts | Foreign currency exchange contracts | Foreign currency exchange contracts | Foreign currency exchange contracts | Derivatives designated as cash flow hedges | |||
counterparty | Subsequent Event | Foreign currency exchange contracts | |||||||
counterparty | |||||||||
Foreign currency exchange contracts and hedging | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative notional amount | ' | ' | ' | ' | $34,000 | ' | $10,000 | $64,000 | $64,000 |
Number of counterparties in derivative contracts | ' | ' | ' | ' | 1 | ' | ' | ' | 4 |
Remaining maturity of outstanding foreign currency forward contracts, maximum | ' | '6 months | ' | ' | ' | ' | ' | ' | ' |
Estimate of time to transfer | '9 months | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of the effect of derivative instruments on the consolidated statements of income | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | ' | ' | -823 | 2,154 | -81 | 0 | ' | ' | ' |
Reclassified from AOCI into Income (Effective Portion) | ' | ' | -13 | 0 | ' | ' | ' | ' | ' |
Gain (Loss) from Amount Excluded from Effectiveness Testing | ' | ' | ($35) | ($5) | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (AOCL) (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accumulated other comprehensive loss | ' | ' |
Unrealized loss on foreign currency hedging, net of tax | ($1,019) | ($759) |
Cumulative foreign currency translation adjustment, net of tax | -808 | -1,284 |
Accumulated other comprehensive loss | ($1,827) | ($2,043) |
Net_Loss_per_Share_Details
Net Loss per Share (Details) | 3 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | |||
Reconciliations of basic to diluted weighted-average common shares outstanding | ' | ' | ||
Weighted-average shares used in basic computation (in shares) | 34,626,000 | 34,452,000 | ||
Dilutive effect of stock-based awards | 0 | [1] | 0 | [1] |
Weighted-average shares used in diluted computation (in shares) | 34,626,000 | 34,452,000 | ||
Excluded NSUs | ' | ' | ||
Options excluded in the computation of diluted income per share | ' | ' | ||
Options excluded in the computation of diluted income per share (in shares) | 377,000 | [1] | 523,000 | [1] |
Excluded restricted stock units (RSUs) | ' | ' | ||
Options excluded in the computation of diluted income per share | ' | ' | ||
Options excluded in the computation of diluted income per share (in shares) | 729,000 | [1] | 671,000 | [1] |
Excluded outside director restricted stock awards (RSAs) | ' | ' | ||
Options excluded in the computation of diluted income per share | ' | ' | ||
Options excluded in the computation of diluted income per share (in shares) | 7,000 | [1] | 0 | [1] |
Excluded stock appreciation rights (SARs) | ' | ' | ||
Options excluded in the computation of diluted income per share | ' | ' | ||
Options excluded in the computation of diluted income per share (in shares) | 730,000 | [1] | 730,000 | [1] |
Excluded options | ' | ' | ||
Options excluded in the computation of diluted income per share | ' | ' | ||
Options excluded in the computation of diluted income per share (in shares) | 0 | [1] | 8,000 | [1] |
[1] | For the three months ended June 30, 2014 and 2013, the Company excluded all NSUs, RSUs, RSAs and SARs from the diluted net loss per share computation because they were antidilutive due to the net loss during the period. |
Business_Segments_Concentratio2
Business Segments, Concentration of Business, and Credit Risk and Significant Customers (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 |
Business segment information | ' | ' | ' |
Net sales to external customers | $211,469 | $170,085 | ' |
Income (loss) from operations: | -50,482 | -42,751 | ' |
Total assets for reportable segments | 1,168,613 | ' | 1,064,204 |
Reportable segments | ' | ' | ' |
Business segment information | ' | ' | ' |
Total assets for reportable segments | 803,119 | ' | 654,679 |
UGG wholesale | ' | ' | ' |
Business segment information | ' | ' | ' |
Net sales to external customers | 74,193 | 62,366 | ' |
Income (loss) from operations: | 2,693 | -510 | ' |
Total assets for reportable segments | 333,116 | ' | 153,341 |
Teva wholesale | ' | ' | ' |
Business segment information | ' | ' | ' |
Net sales to external customers | 35,665 | 28,748 | ' |
Income (loss) from operations: | 4,782 | 2,149 | ' |
Total assets for reportable segments | 61,489 | ' | 81,766 |
Sanuk wholesale | ' | ' | ' |
Business segment information | ' | ' | ' |
Net sales to external customers | 32,329 | 27,786 | ' |
Income (loss) from operations: | 6,905 | 6,489 | ' |
Total assets for reportable segments | 219,127 | ' | 214,627 |
Other wholesale | ' | ' | ' |
Business segment information | ' | ' | ' |
Net sales to external customers | 11,825 | 7,978 | ' |
Income (loss) from operations: | -4,011 | -2,489 | ' |
Total assets for reportable segments | 40,344 | ' | 41,281 |
eCommerce | ' | ' | ' |
Business segment information | ' | ' | ' |
Net sales to external customers | 15,427 | 10,736 | ' |
Income (loss) from operations: | 809 | 1,669 | ' |
Total assets for reportable segments | 4,569 | ' | 3,129 |
Retail stores | ' | ' | ' |
Business segment information | ' | ' | ' |
Net sales to external customers | 42,030 | 32,471 | ' |
Income (loss) from operations: | -15,851 | -9,818 | ' |
Total assets for reportable segments | 144,474 | ' | 160,535 |
Unallocated to Segments | ' | ' | ' |
Business segment information | ' | ' | ' |
Income (loss) from operations: | ($45,809) | ($40,241) | ' |
Business_Segments_Concentratio3
Business Segments, Concentration of Business, and Credit Risk and Significant Customers (Details 2) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ' | ' | ' | ' |
Total assets for reportable segments | $1,168,613 | $1,064,204 | ' | ' |
Unallocated cash and cash equivalents | 158,226 | 245,088 | 49,126 | 64,591 |
Consolidated total assets | 1,168,613 | 1,064,204 | ' | ' |
Reportable segments | ' | ' | ' | ' |
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ' | ' | ' | ' |
Total assets for reportable segments | 803,119 | 654,679 | ' | ' |
Consolidated total assets | 803,119 | 654,679 | ' | ' |
Unallocated to Segments | ' | ' | ' | ' |
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ' | ' | ' | ' |
Unallocated cash and cash equivalents | ' | 245,088 | ' | ' |
Unallocated deferred tax assets | 39,483 | 38,933 | ' | ' |
Other unallocated corporate assets | $167,785 | $125,504 | ' | ' |
Business_Segments_Concentratio4
Business Segments, Concentration of Business, and Credit Risk and Significant Customers (Details 3) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | |
In Thousands, unless otherwise specified | tannery | International Net Sales | International Net Sales | Net Trade Accounts Receivable | Net Trade Accounts Receivable | Net Trade Accounts Receivable | Net Trade Accounts Receivable | Net Trade Accounts Receivable | US | US | All other countries | All other countries | |||||
Customer One | Customer One | Customer Two | Customer Two | ||||||||||||||
Business segment information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Property and equipment, by major country | $187,804 | $184,570 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $150,337 | $148,178 | $37,467 | $36,392 | [1] |
Concentration risk benchmark (as a percent) | ' | ' | ' | ' | ' | 10.00% | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | |
Concentration risk (as a percent) | ' | ' | ' | ' | ' | 37.50% | 35.30% | ' | 11.10% | 11.80% | 10.40% | 11.40% | ' | ' | ' | ' | |
Number of Tanneries | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Money market fund accounts | 63,221 | 143,816 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Cash | 95,005 | 101,272 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Total cash and cash equivalents | $158,226 | $245,088 | ' | $49,126 | $64,591 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | No other countrybs long-lived assets comprised more than 10% of total long-lived assets as of JuneB 30, 2014 and MarchB 31, 2014. |