Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Mar. 31, 2015 | 15-May-15 | Sep. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | DECKERS OUTDOOR CORP | ||
Entity Central Index Key | 910521 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Mar-15 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -28 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $3,280,043,169 | ||
Entity Common Stock, Shares Outstanding | 33,296,968 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Current assets: | |||
Cash and cash equivalents | $225,143 | $245,088 | $237,125 |
Trade accounts receivable, net of allowances ($18,218 at March 31, 2015, $15,569 at March 31, 2014 and $25,068 at December 31, 2013) | 143,105 | 106,199 | 184,013 |
Inventories | 238,911 | 211,519 | 260,791 |
Prepaid expenses | 15,141 | 12,067 | 14,980 |
Other current assets | 35,057 | 27,118 | 112,514 |
Deferred tax assets | 14,066 | 21,871 | 19,881 |
Income tax receivable | 15,170 | 0 | 0 |
Total current assets | 686,593 | 623,862 | 829,304 |
Property and equipment, net of accumulated depreciation ($129,002 at March 31, 2015, $103,090 at March 31, 2014 and $99,473 at December 31, 2013) | 232,317 | 184,570 | 174,066 |
Goodwill | 127,934 | 127,934 | 128,725 |
Other intangible assets, net of accumulated amortization ($37,316 at March 31, 2015, $26,026 at March 31, 2014 and $24,140 at December 31, 2013) | 87,743 | 91,411 | 93,278 |
Deferred tax assets | 15,017 | 17,062 | 15,751 |
Other assets | 20,329 | 19,365 | 18,605 |
Total assets | 1,169,933 | 1,064,204 | 1,259,729 |
Current liabilities: | |||
Short-term borrowings | 5,383 | 6,702 | 9,728 |
Trade accounts payable | 85,714 | 76,139 | 151,037 |
Accrued payroll | 27,300 | 22,927 | 35,725 |
Other accrued expenses | 41,066 | 11,624 | 45,301 |
Income taxes payable | 6,858 | 2,908 | 49,453 |
Value added tax (VAT) payable | 1,221 | 1,915 | 29,274 |
Total current liabilities | 167,542 | 122,215 | 320,518 |
Long-term liabilities: | |||
Mortgage payable | 33,154 | 0 | 0 |
Income tax liability | 5,087 | 0 | 0 |
Deferred rent obligations | 15,663 | 14,319 | 12,206 |
Other long-term liabilities | 11,475 | 38,821 | 38,886 |
Total long-term liabilities | 65,379 | 53,140 | 51,092 |
Commitments and contingencies (Note 6) | |||
Stockholders' equity: | |||
Common stock ($0.01 par value; 125,000 shares authorized; shares issued and outstanding of 33,292 at March 31, 2015, 34,624 at March 31, 2014 and 34,618 shares at December 31, 2013) | 333 | 346 | 346 |
Additional paid-in capital | 158,777 | 146,731 | 143,916 |
Retained earnings | 798,370 | 743,815 | 746,500 |
Accumulated other comprehensive loss | -20,468 | -2,043 | -2,643 |
Total stockholders' equity | 937,012 | 888,849 | 888,119 |
Total liabilities and stockholders' equity | $1,169,933 | $1,064,204 | $1,259,729 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | |||
Statement of Financial Position [Abstract] | |||
Trade accounts receivable, allowances (in dollars) | $18,218 | $15,569 | $25,068 |
Accumulated depreciation | 129,002 | 103,090 | 99,473 |
Accumulated amortization | $37,316 | $26,026 | $24,140 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | $0.01 |
Common stock, authorized shares | 125,000,000 | 125,000,000 | 125,000,000 |
Common stock, issued shares | 33,292,000 | 34,624,000 | 34,618,000 |
Common stock, outstanding shares | 33,292,000 | 34,624,000 | 34,618,000 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | ||||
Net sales | $294,716 | $1,817,057 | $1,556,618 | $1,414,398 |
Cost of sales | 150,456 | 938,949 | 820,135 | 782,244 |
Gross profit | 144,260 | 878,108 | 736,483 | 632,154 |
Selling, general and administrative (SG&A) expenses | 144,668 | 653,689 | 528,586 | 445,206 |
Income (loss) from operations | -408 | 224,419 | 207,897 | 186,948 |
Other expense (income), net: | ||||
Interest income | -65 | -207 | -60 | -217 |
Interest expense | 516 | 4,220 | 3,079 | 3,840 |
Other, net | -117 | -733 | -679 | -793 |
Total other expense, net | 334 | 3,280 | 2,340 | 2,830 |
Income (loss) before income taxes | -742 | 221,139 | 205,557 | 184,118 |
Income taxes | 1,943 | 59,359 | 59,868 | 55,104 |
Net income (loss) | -2,685 | 161,780 | 145,689 | 129,014 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on foreign currency hedging | -273 | 450 | -486 | -633 |
Foreign currency translation adjustment | 873 | -18,875 | -757 | 963 |
Total other comprehensive (loss) income | 600 | -18,425 | -1,243 | 330 |
Comprehensive income (loss) | -2,085 | 143,355 | 144,446 | 129,344 |
Net income (loss) attributable to: | ||||
Deckers Outdoor Corporation | -2,685 | 161,780 | 145,689 | 128,866 |
Noncontrolling interest | 0 | 0 | 0 | 148 |
Net income (loss) | -2,685 | 161,780 | 145,689 | 129,014 |
Comprehensive income (loss) attributable to: | ||||
Deckers Outdoor Corporation | -2,085 | 143,355 | 144,446 | 129,196 |
Noncontrolling interest | 0 | 0 | 0 | 148 |
Comprehensive income (loss) | ($2,085) | $143,355 | $144,446 | $129,344 |
Net income (loss) per share attributable to Deckers Outdoor Corporation common stockholders: | ||||
Basic (in dollars per share) | ($0.08) | $4.70 | $4.23 | $3.49 |
Diluted (in dollars per share) | ($0.08) | $4.66 | $4.18 | $3.45 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 34,621 | 34,433 | 34,473 | 36,879 |
Diluted (in shares) | 34,621 | 34,733 | 34,829 | 37,334 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Total Deckers Outdoor Corp. Stockholders' Equity | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest |
In Thousands, unless otherwise specified | |||||||
Balance at Dec. 31, 2011 | $841,430 | $835,936 | $387 | $144,684 | $692,595 | ($1,730) | $5,494 |
Balance (in shares) at Dec. 31, 2011 | 38,692 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Stock compensation expense | 14,661 | 14,661 | |||||
Compensation expenses recorded | 14,661 | ||||||
Stock compensation expense (in shares) | 19 | ||||||
Exercise of stock options | 9 | 9 | 9 | ||||
Exercise of stock options (in shares) | 4 | ||||||
Shares issued upon vesting | 2 | -2 | |||||
Shares issued upon vesting (in shares) | 199 | ||||||
Excess tax benefit from stock compensation | -381 | -381 | -381 | ||||
Shares withheld for taxes | -5,888 | -5,888 | -5,888 | ||||
Stock repurchase | -220,695 | -220,695 | -45 | -220,650 | |||
Stock repurchase (in shares) | -4,514 | ||||||
Net income (loss) | 129,014 | 128,866 | 128,866 | 148 | |||
Acquisition of noncontrolling interest | -19,679 | -14,037 | -14,037 | -5,642 | |||
Total other comprehensive income (loss) | 330 | 330 | |||||
Balance at Dec. 31, 2012 | 738,801 | 738,801 | 344 | 139,046 | 600,811 | -1,400 | 0 |
Balance (in shares) at Dec. 31, 2012 | 34,400 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Stock compensation expense | 13,136 | 13,136 | |||||
Compensation expenses recorded | 13,136 | ||||||
Stock compensation expense (in shares) | 15 | ||||||
Exercise of stock options | 52 | 52 | 52 | ||||
Exercise of stock options (in shares) | 8 | ||||||
Shares issued upon vesting | 2 | -2 | |||||
Shares issued upon vesting (in shares) | 195 | ||||||
Excess tax benefit from stock compensation | 319 | 319 | 319 | ||||
Shares withheld for taxes | -8,635 | -8,635 | -8,635 | ||||
Net income (loss) | 145,689 | 145,689 | 145,689 | 0 | |||
Total other comprehensive income (loss) | -1,243 | -1,243 | |||||
Balance at Dec. 31, 2013 | 888,119 | 888,119 | 346 | 143,916 | 746,500 | -2,643 | 0 |
Balance (in shares) at Dec. 31, 2013 | 34,618 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Stock compensation expense | 2,865 | 2,865 | |||||
Compensation expenses recorded | 2,865 | ||||||
Stock compensation expense (in shares) | 5 | ||||||
Shares issued upon vesting | 0 | 0 | |||||
Shares issued upon vesting (in shares) | 1 | ||||||
Shares withheld for taxes | -50 | -50 | -50 | ||||
Net income (loss) | -2,685 | -2,685 | -2,685 | 0 | |||
Total other comprehensive income (loss) | 600 | 600 | |||||
Balance at Mar. 31, 2014 | 888,849 | 888,849 | 346 | 146,731 | 743,815 | -2,043 | 0 |
Balance (in shares) at Mar. 31, 2014 | 34,624 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Stock compensation expense | 13,524 | 13,524 | 0 | 0 | 0 | ||
Compensation expenses recorded | 13,524 | ||||||
Stock compensation expense (in shares) | 11 | ||||||
Shares issued upon vesting | 1 | -1 | |||||
Shares issued upon vesting (in shares) | 93 | ||||||
Excess tax benefit from stock compensation | 4,197 | 4,197 | 4,197 | ||||
Shares withheld for taxes | -5,674 | -5,674 | -5,674 | ||||
Stock repurchase | -107,239 | -107,239 | -14 | -107,225 | |||
Stock repurchase (in shares) | -1,436 | ||||||
Net income (loss) | 161,780 | 161,780 | 161,780 | 0 | |||
Total other comprehensive income (loss) | -18,425 | -18,425 | |||||
Balance at Mar. 31, 2015 | $937,012 | $937,012 | $333 | $158,777 | $798,370 | ($20,468) | $0 |
Balance (in shares) at Mar. 31, 2015 | 33,292 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | ||||
Net income (loss) | ($2,685) | $161,780 | $145,689 | $129,014 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation, amortization and accretion | 10,569 | 49,293 | 41,439 | 33,367 |
Change in fair value of contingent consideration | 705 | -3,574 | 1,815 | 8,659 |
Provision for (recovery of) doubtful accounts, net | 169 | -1,107 | -125 | -2,128 |
Deferred tax provision | -2,736 | 9,970 | -4,092 | -5,657 |
Stock compensation | 2,865 | 13,524 | 13,136 | 14,661 |
Other | 111 | 2,969 | 1,306 | 1,229 |
Changes in operating assets and liabilities, net of assets and liabilities acquired in the acquisition of businesses: | ||||
Trade accounts receivable | 77,983 | -36,885 | 6,618 | 491 |
Inventories | 49,272 | -26,748 | 40,580 | -46,903 |
Prepaid expenses and other current assets | 68,837 | -10,376 | -58,554 | 23,511 |
Income tax receivable | 0 | -15,170 | 0 | 0 |
Other assets | -758 | -144 | -4,290 | -3,028 |
Trade accounts payable | -74,898 | 8,912 | 21,251 | 18,932 |
Contingent consideration | -2,974 | -364 | -6,458 | -959 |
Accrued expenses | -33,666 | 3,761 | 33,556 | -9,983 |
Income taxes payable | -46,545 | 4,883 | 24,386 | -5,820 |
Long-term liabilities | 1,998 | 6,716 | 5,618 | 4,264 |
Net cash provided by operating activities | 47,909 | 169,654 | 262,125 | 163,906 |
Cash flows from investing activities: | ||||
Purchases of property and equipment | -17,603 | -91,147 | -79,829 | -61,575 |
Acquisitions of businesses and equity method investment | 0 | 0 | 0 | -8,829 |
Purchases of intangibles and other assets, net | -30 | -9,489 | -5,368 | -4,958 |
Net cash used in investing activities | -17,633 | -100,636 | -85,197 | -75,362 |
Cash flows from financing activities: | ||||
Proceeds from issuance of short-term borrowings | 0 | 199,784 | 320,728 | 307,000 |
Repayments of short-term borrowings | -3,000 | -201,705 | -344,000 | -274,000 |
Cash paid for shares withheld for taxes | -3,752 | -5,674 | -6,736 | -6,535 |
Excess tax benefit from stock compensation | 0 | 4,197 | 2,071 | 2,457 |
Cash received from issuances of common stock | 0 | 52 | 0 | |
Loan origination costs on short-term borrowings | 0 | -818 | 0 | -1,807 |
Contingent consideration paid | -15,852 | -115 | -22,628 | -29,041 |
Cash paid for noncontrolling interest | 0 | -20,000 | ||
Cash paid for repurchases of common stock | 0 | -107,239 | 0 | -220,695 |
Proceeds from mortgage loan | 0 | 33,931 | 0 | 0 |
Mortgage loan origination costs | -338 | |||
Repayment of mortgage principal | 0 | -283 | 0 | 0 |
Net cash used in financing activities | -22,604 | -78,260 | -50,513 | -242,621 |
Effect of exchange rates on cash | 291 | -10,703 | 463 | 718 |
Net change in cash and cash equivalents | 7,963 | -19,945 | 126,878 | -153,359 |
Cash and cash equivalents at beginning of period | 237,125 | 245,088 | 110,247 | 263,606 |
Cash and cash equivalents at end of period | 245,088 | 225,143 | 237,125 | 110,247 |
Cash paid during the period for: | ||||
Income taxes | 48,040 | 53,504 | 39,122 | 66,899 |
Interest | 187 | 2,674 | 2,586 | 3,338 |
Non-cash investing and financing activity: | ||||
Deferred purchase payments for acquisition of business | 0 | 0 | 0 | 3,671 |
Accruals for purchases of property and equipment | 4,265 | 3,419 | 2,283 | 489 |
Contingent consideration arrangement for acquisition of business | 0 | 0 | 0 | 1,128 |
Accruals for asset retirement obligations | 19 | 786 | 1,936 | 526 |
Accruals for shares withheld for taxes | 0 | 0 | 3,702 | 1,804 |
Write-off for shares exercised with a tax deficit | $0 | $0 | $1,752 | $2,838 |
The_Company_and_Summary_of_Sig
The Company and Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||
The Company and Summary of Significant Accounting Policies | The Company and Summary of Significant Accounting Policies | |||||||||||||||
The Company and Basis of Presentation | ||||||||||||||||
The consolidated financial statements include the accounts of Deckers Outdoor Corporation and its wholly-owned subsidiaries (collectively referred to as the "Company"). Accordingly, all references herein to Deckers Outdoor Corporation or "Deckers" include the consolidated results of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | ||||||||||||||||
Deckers Outdoor Corporation 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. | ||||||||||||||||
Prior to April 2, 2012, the Company owned 51% of a joint venture with an affiliate of Stella International Holdings Limited (Stella International) for the primary purpose of opening and operating retail stores for the UGG brand in China. Stella International is also one of the Company's major manufacturers in China. On April 2, 2012, the Company purchased the 49% noncontrolling interest owned by Stella International for a total purchase price of approximately $20,000. The Company accounted for this transaction as an acquisition of the remaining interest of an entity that had already been majority-owned by the Company. The purchase resulted in a reduction to additional paid in capital of $14,037 representing excess purchase price over the carrying amount of the noncontrolling interest. Prior to this purchase, the Company already had a controlling interest in this entity, and therefore, the subsidiary had been and continues to be consolidated with the Company's operations. | ||||||||||||||||
In May 2012, the Company purchased a noncontrolling interest in the Hoka One One® (Hoka) brand, a privately held footwear company, which was accounted for as an equity method investment. In September 2012, the Company acquired the remaining ownership interest in Hoka. The acquisition of Hoka was not material to the Company’s consolidated financial statements and does 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 end from December 31 to March 31. The change was intended to better align the Company's planning, financial and reporting functions with the seasonality of the business. The 2015, 2013 and 2012 fiscal years ended on March 31, 2015, December 31, 2013 and December 31, 2012, respectively. The transition period was the quarter ended March 31, 2014 to coincide with the change in our fiscal year end. | ||||||||||||||||
In July 2014, the Company acquired its UGG brand distributor that sold to retailers in Germany and now operates a wholesale business in Germany through the newly acquired subsidiary. The acquisition included certain intangible and tangible assets and the assumption of liabilities. The purchase price of the acquisition was not material to the Company’s consolidated financial statements. | ||||||||||||||||
In April 2015, the Company acquired inventory and certain intangible assets, including the trade name related to the Koolaburra® brand, a sheepskin and wool based footwear brand. The purchase price of the acquisition was not material to the Company’s consolidated financial statements. | ||||||||||||||||
We sell our brands through quality domestic retailers and international distributors and retailers, as well as directly to our end-user consumers through our E-Commerce business and retail stores. Independent third parties manufacture all of our products. | ||||||||||||||||
Inventories | ||||||||||||||||
Inventories, principally finished goods, are stated at the lower of cost (first-in, first-out) or market (net realizable value). Cost includes initial molds and tooling that are amortized over the life of the mold in cost of sales. Cost also includes shipping and handling fees and costs, which are subsequently expensed to cost of sales. Market values are determined by historical experience with discounted sales, industry trends, and the retail environment. | ||||||||||||||||
Revenue Recognition | ||||||||||||||||
The Company recognizes wholesale, E-Commerce, and international distributor revenue when products are shipped and retail revenue at the point of sale. All sales are recognized when the customer takes title and assumes risk of loss, collection of the related receivable is reasonably assured, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable. For wholesale and international distributor sales, allowances for estimated returns, discounts, chargebacks, and bad debts are provided for when related revenue is recorded. For E-Commerce sales, allowances for estimated returns and bad debts are provided for when related revenue is recorded. For retail sales, allowances for estimated returns are provided for when related revenue is recorded. Amounts billed for shipping and handling costs are recorded as a component of net sales, while the related costs paid to third-party shipping companies are recorded as a cost of sales. The Company presents revenue net of taxes collected from customers and remitted to governmental authorities. | ||||||||||||||||
Accounting for Long-Lived Assets | ||||||||||||||||
Other long-lived assets, such as machinery and equipment, leasehold improvements, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount exceeds the estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount exceeds the fair value of the asset. Intangible assets subject to amortization are amortized over their respective estimated useful lives to their estimated residual values. The Company uses the straight-line method for depreciation and amortization of long-lived assets, except for certain intangible assets where the Company can reliably determine the pattern in which the economic benefits of the assets will be consumed. | ||||||||||||||||
At least quarterly, the Company evaluates whether any impairment triggering events, including the following, have occurred which would require such asset groups to be tested for impairment: | ||||||||||||||||
• | A significant decrease in the market price of a long-lived asset group; | |||||||||||||||
• | a significant adverse change in the extent or manner in which a long-lived asset group is being used or in its physical condition; | |||||||||||||||
• | a significant adverse change in legal factors or in business climate that could affect the value of a long-lived asset group, including an adverse action or assessment by a regulator; | |||||||||||||||
• | an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset group; | |||||||||||||||
• | a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset group; or | |||||||||||||||
• | a current expectation that, more likely than not, a long-lived asset group will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. | |||||||||||||||
When an impairment triggering event has occurred, the Company tests for recoverability of the asset group's carrying value using estimates of undiscounted future cash flows based on the existing service potential of the applicable asset group. In determining the service potential of a long-lived asset group, the Company considers its remaining useful life, cash-flow generating capacity, and physical output capacity. These estimates include the undiscounted cash flows associated with future expenditures necessary to maintain the existing service potential. Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The Company assesses potential impairment of its retail group long-lived assets by comparing trailing twelve month (TTM) store cash flows to the current carrying value of the store's long-lived assets. Stores that have been opened for more than one year, or have otherwise been identified by management as having one or more indicators of impairment, with TTM cash flows less than the current carrying amount of the store's long-lived assets are then reviewed to determine if an impairment exists. An impairment loss, if any, would only reduce the carrying amount of long-lived assets in the group based on the fair value of the group assets. | ||||||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||||
Intangible assets consist primarily of goodwill, trademarks, customer and distributor relationships, patents, lease rights, and non-compete agreements arising from the application of purchase accounting. Intangible assets with estimable useful lives are amortized and reviewed for impairment. Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually, as of December 31, except for the Teva trademarks and Sanuk goodwill, which are tested as of October 31. | ||||||||||||||||
The assessment of goodwill impairment involves valuing the Company's reporting units that carry goodwill. Currently, the Company's reporting units are the same as the Company's operating segments. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. The Company does not calculate the fair value of the reporting unit unless the Company determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. If the Company determines this, then the first quantitative step is a comparison of the fair value of the reporting unit with its carrying amount. If the fair value exceeds the carrying amount, goodwill is not impaired. If the fair value of the reporting unit is below the carrying amount, then a second step is performed to measure the amount of the impairment, if any. The test for impairment involves the use of estimates related to the fair values of the business operations with which goodwill is associated and the fair values of the intangible assets with indefinite lives. | ||||||||||||||||
The Company also evaluates the fair values of other intangible assets with indefinite useful lives in relation to their carrying values. The Company first assesses qualitative factors to determine whether it is necessary to perform a quantitative assessment of the indefinite life intangible asset. The Company does not calculate the fair value of the indefinite life intangible unless the Company determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. If the Company concludes that it is more likely than not that its fair value is less than its carrying amount, then the Company compares the fair value of the indefinite life intangible to its carrying amount, and if the fair value of the indefinite life intangible exceeds its carrying amount, no impairment charge will be recognized. If the fair value of the indefinite life intangible is less than the carrying amount, the Company will record an impairment charge to write-down the intangible asset to its fair value. | ||||||||||||||||
Determining fair value of goodwill and other intangible assets is highly subjective and requires the use of estimates and assumptions. The Company uses estimates including future revenues, royalty rates, discount rates, attrition rates, and market multiples, among others. The Company also considers the following factors: | ||||||||||||||||
• | the assets' ability to continue to generate income from operations and positive cash flow in future periods; | |||||||||||||||
• | changes in consumer demand or acceptance of the related brand names, products, or features associated with the assets; and | |||||||||||||||
• | other considerations that could affect fair value or otherwise indicate potential impairment. | |||||||||||||||
In addition, facts and circumstances could change, including further deterioration of general economic conditions or the retail environment, customers reducing orders in response to such conditions, and increased competition. These or other factors could result in changes to the calculation of fair value which could result in impairment of the Company's remaining goodwill and other intangible assets. Changes in any one or more of these estimates and assumptions could produce different financial results. | ||||||||||||||||
Property and Equipment, Depreciation and Amortization | ||||||||||||||||
Property and equipment has a useful life expectancy of at least one year. Property and equipment includes tangible, non-consumable items owned by the Company valued at or above $3, certain computer software costs and internal or external computer system consulting work valued at or above $3 as defined below, and portable electronic devices valued at or above $1.5. Tangible, non-consumable items below these amounts are expensed. The value includes the purchase price, as well as costs to acquire (shipping and handling), sales tax, install (excluding site preparation costs), secure, and prepare the item for its intended use. | ||||||||||||||||
Depreciation of property and equipment is calculated using the straight-line method based on estimated useful lives. Machinery and equipment has estimated useful lives ranging from two to ten years, and furniture and fixtures has estimated useful lives ranging from three to seven years. Capitalized website costs, which are included in the machinery & equipment category, are immaterial to the Company's consolidated financial statements. Leasehold improvements are amortized to their residual value on the straight-line basis over their estimated economic useful lives or the lease term, whichever is shorter. Leasehold improvement lives range from one to fifteen years. Buildings are depreciated over 39 years. The Company allocates depreciation and amortization of property, plant, and equipment to cost of sales and selling, general and administrative (SG&A) expenses. The majority of the Company's depreciation and amortization is included in SG&A expenses due to the nature of its operations. Most of the Company's depreciation and amortization is from its warehouses, its corporate headquarters and its retail stores. The Company outsources all manufacturing; therefore, the amount allocated to cost of sales is not material. | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
The fair values of the Company's cash and cash equivalents, trade accounts receivable, prepaid expenses, income tax receivable and other current assets, short-term borrowings, trade accounts payable, accrued payroll, other accrued expenses, income taxes payable and the value added tax 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 carrying values. 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 SG&A expenses. 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 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 an asset or liability. | |||||||||||||||
The tables below summarize the Company's financial liabilities and assets that are measured on a recurring basis at fair value: | ||||||||||||||||
Fair Value at March 31, 2015 | Fair Value Measurement Using | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets (Liabilities) at fair value | ||||||||||||||||
Nonqualified deferred compensation asset | $ | 5,581 | $ | 5,581 | $ | — | $ | — | ||||||||
Nonqualified deferred compensation liability | $ | (5,581 | ) | $ | (5,581 | ) | $ | — | $ | — | ||||||
Designated derivatives liability | $ | (487 | ) | $ | — | $ | (487 | ) | $ | — | ||||||
Contingent consideration for acquisition of business | $ | (26,000 | ) | $ | — | $ | — | $ | (26,000 | ) | ||||||
Fair Value at March 31, 2014 | Fair Value Measurement Using | |||||||||||||||
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 | ) | ||||||
Fair Value at December 31, 2013 | Fair Value Measurement Using | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets (Liabilities) at fair value | ||||||||||||||||
Nonqualified deferred compensation asset | $ | 4,410 | $ | 4,410 | $ | — | $ | — | ||||||||
Nonqualified deferred compensation liability | $ | (4,410 | ) | $ | (4,410 | ) | $ | — | $ | — | ||||||
Designated derivatives liability | $ | (550 | ) | $ | — | $ | (550 | ) | $ | — | ||||||
Contingent consideration for acquisition of business | $ | (48,000 | ) | $ | — | $ | — | $ | (48,000 | ) | ||||||
The Level 2 inputs consist of forward spot rates at the end of the reporting period (see Note 8). | ||||||||||||||||
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. The estimated fair value of the contingent consideration attributable to our Sanuk® (Sanuk) brand acquisition is based on the Sanuk brand's estimated future gross profits, using a probability weighted average sales forecast to determine a best estimate of gross profits. Estimated contingent consideration payments of approximately $24,200 are included within other accrued expenses in the consolidated balance sheet as of March 31, 2015. The estimated sales forecasts include a compound annual growth rate (CAGR) of 14.6% from calendar year 2014 through calendar year 2015, the final year of the contingent consideration arrangement. The gross profit forecast for calendar year 2015 is approximately $64,000, which is then used to apply the contingent consideration percentages in accordance with the applicable agreement (see Note 6). 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 March 31, 2015 by approximately $2,000. | ||||||||||||||||
In connection with the Company's acquisition of the 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. As of March 31, 2015, approximately $500 has been paid. The Company estimates future net sales using a probability weighted average sales forecast to determine a best estimate. Estimated future contingent consideration payments of approximately $1,500 are included within other accrued expenses and other long-term liabilities in the consolidated balance sheet as of March 31, 2015. 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 6 for further information on the contingent consideration arrangements. | ||||||||||||||||
The following table presents a reconciliation of the Level 3 measurement (rounded): | ||||||||||||||||
Beginning balance, January 1, 2013 | $ | 71,500 | ||||||||||||||
Payments | (25,400 | ) | ||||||||||||||
Change in fair value | 1,900 | |||||||||||||||
Balance, December 31, 2013 | $ | 48,000 | ||||||||||||||
Payments | (19,000 | ) | ||||||||||||||
Change in fair value | 1,000 | |||||||||||||||
Balance, March 31, 2014 | $ | 30,000 | ||||||||||||||
Payments | (500 | ) | ||||||||||||||
Change in fair value | (3,500 | ) | ||||||||||||||
Balance, March 31, 2015 | $ | 26,000 | ||||||||||||||
Stock Compensation | ||||||||||||||||
All of the Company's stock compensation issuances are classified within stockholders' equity. Stock compensation cost is measured at the grant date based on the value of the award and is expensed ratably over the vesting period. The Company recognizes expense only for those awards that management deems probable of achieving the performance and service objectives. Determining the expense of share-based awards requires judgment, including estimating the percentage of awards that will be forfeited and probabilities of meeting the awards' performance criteria. If actual forfeitures differ significantly from the estimates or if probabilities change during a period, stock compensation expense and the Company's results of operations could be materially impacted. | ||||||||||||||||
Nonqualified Deferred Compensation | ||||||||||||||||
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. As of March 31, 2015, no such contribution has been approved by the Board . The value of the deferred compensation is recognized based on the fair value of the participants' accounts. The Company has established a rabbi trust for the purpose of supporting the benefits payable under this program. Deferred compensation of $540 is included in other accrued expenses and $5,041 is included in other long-term liabilities in the consolidated balance sheets at March 31, 2015. Deferred compensation of $4,534 and $4,410 are included in other long-term liabilities in the consolidated balance sheets as of March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||
Use of Estimates | ||||||||||||||||
The preparation of the Company's 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 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 allowances, 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. | ||||||||||||||||
Research and Development Costs | ||||||||||||||||
All research and development costs are expensed as incurred. Such costs amounted to $20,872, $4,486, $19,257 and $15,617 for the year ended March 31, 2015, quarter ended March 31, 2014 and the years ended December 31, 2013 and 2012, respectively, and are included in SG&A expenses in the consolidated statements of comprehensive income (loss). | ||||||||||||||||
Advertising, Marketing, and Promotion Costs | ||||||||||||||||
Advertising production costs are expensed the first time the advertisement is run. All other costs of advertising, marketing, and promotion are expensed as incurred. These expenses charged to operations for the year ended March 31, 2015, quarter ended March 31, 2014 and the years ended December 31, 2013 and 2012 were $111,162, $21,158, $86,510 and $78,528, respectively. Included in prepaid and other current assets at March 31, 2015, March 31, 2014, and December 31, 2013 were $1,899, $209 and $212, respectively, related to prepaid advertising, marketing, and promotion expenses for programs to take place after such dates. | ||||||||||||||||
Rent Expense | ||||||||||||||||
Rent expense is recorded using the straight-line method to account for scheduled rental increases or rent holidays. Lease incentives for tenant improvement allowances are recorded as reductions of rent expense over the lease term. The rental payments under some of our retail store leases are based on a minimum rental plus a percentage of the store's sales in excess of stipulated amounts. Rent expenses are included SG&A expenses in the consolidated statements of comprehensive income (loss). | ||||||||||||||||
Income Taxes | ||||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||||||||||
The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company accounts for interest and penalties generated by income tax contingencies as interest expense and SG&A expenses, respectively in the consolidated statements of comprehensive income (loss). | ||||||||||||||||
Net Income (Loss) per Share Attributable to Deckers Outdoor Corporation Common Stockholders | ||||||||||||||||
Basic net income (loss) per share represents net income (loss) attributable to Deckers Outdoor Corporation divided by the weighted-average number of common shares outstanding for the period. Diluted net income (loss) per share represents net income (loss) attributable to Deckers Outdoor Corporation divided by the weighted-average number of shares outstanding, including the dilutive impact of potential issuances of common stock. For the years ended March 31, 2015, December 31, 2013 and December 31, 2012 and quarter ended March 31, 2014, the difference between the weighted-average number of basic and diluted common shares resulted from the dilutive impact of nonvested stock units (NSUs), restricted stock units (RSUs), restricted stock awards (RSAs), stock appreciation rights (SARs), and options to purchase common stock. The reconciliations of basic to diluted weighted-average common shares outstanding were as follows: | ||||||||||||||||
Year ended | Quarter ended (transition period) | Years ended | ||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | 12/31/12 | |||||||||||||
Weighted-average shares used in basic computation | 34,433,000 | 34,621,000 | 34,473,000 | 36,879,000 | ||||||||||||
Dilutive effect of stock-based awards* | 300,000 | — | 356,000 | 455,000 | ||||||||||||
Weighted-average shares used for diluted computation | 34,733,000 | 34,621,000 | 34,829,000 | 37,334,000 | ||||||||||||
*Excluded NSUs | — | 331,000 | — | 200,000 | ||||||||||||
*Excluded RSUs | 624,000 | 729,000 | 795,000 | 671,000 | ||||||||||||
*Excluded outside director RSAs | — | 6,000 | — | — | ||||||||||||
*Excluded SARs | 525,000 | 730,000 | 525,000 | 525,000 | ||||||||||||
For the years ended March 31, 2015 and December 31, 2013 and 2012, the share-based awards that were excluded from the dilutive effect were excluded because the necessary conditions had not been satisfied for the shares to be issuable based on the Company's performance. For the quarter ended March 31, 2014, 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. As of March 31, 2015, the excluded RSUs include the maximum amount of the 2012, 2013 and 2015 Long-Term Incentive Plan (LTIP) Awards. As of March 31, 2014 and December 31, 2013 the excluded RSUs included the maximum amount of the Level III, 2012 and 2013 LTIP Awards. As of December 31, 2012, the excluded RSUs included the maximum amount of the Level III and 2012 LTIP Awards (see Note 7). | ||||||||||||||||
Foreign Currency Translation | ||||||||||||||||
The Company considers the US dollar as its functional currency. The Company has certain wholly-owned foreign subsidiaries with functional currencies other than the US dollar. In most cases, the Company's foreign subsidiaries' local currency is the same as the designated functional currency. The Company holds a portion of its cash and other monetary assets and liabilities in currencies other than its subsidiary's functional currency, and is exposed to financial statement transaction gains and losses as a result of remeasuring the operating results and financial positions into their functional currency. The Company remeasures these monetary assets and liabilities using the exchange rate as of the end of the reporting period, which results in gains and losses that are included in SG&A expenses in the results of operations as incurred, except for gains and losses arising on intercompany foreign currency transactions that are of a long-term investment nature. In addition, the Company translates assets and liabilities of subsidiaries with reporting currencies other than US dollars into US dollars using the exchange rates at of the end of the reporting period, which results in financial statement translation gains and losses in other comprehensive income (loss)(OCI). | ||||||||||||||||
Derivative Instruments and Hedging Activities | ||||||||||||||||
The Company transacts business in various foreign currencies and has international sales and expenses denominated in foreign currencies, subjecting the Company to foreign currency risk. The Company may enter into foreign currency forward or option contracts, generally with maturities of 15 months or less, to reduce the volatility of cash flows primarily related to forecasted revenue denominated in certain foreign currencies. In addition, the Company utilizes foreign exchange forward and option contracts to mitigate foreign currency exchange rate risk associated with foreign currency-denominated assets and liabilities, primarily intercompany balances. The Company does not use foreign currency contracts for trading purposes. | ||||||||||||||||
Certain of the Company's foreign currency forward contracts are designated cash flow hedges of forecasted intercompany sales and are subject to foreign currency exposures. These contracts allow the Company to sell Euros, British Pounds and Yen in exchange for US dollars at specified contract rates. Forward contracts are used to hedge forecasted intercompany sales over specific quarters. Changes in the fair value of these forward contracts designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) within stockholders' equity, and are recognized in the consolidated statements of comprehensive income (loss) during the period which approximates the time the corresponding third-party sales occur. The Company may also enter into foreign exchange contracts that are not designated as hedging instruments for financial accounting purposes. These contracts are generally entered into to offset the gains and losses on certain intercompany balances until the expected time of repayment. Accordingly, any gains or losses resulting from changes in the fair value of the non-designated contracts are reported in SG&A expenses in the consolidated statements of comprehensive income (loss). The gains and losses on these contracts generally offset the gains and losses associated with the underlying foreign currency-denominated balances, which are also reported in SG&A expenses. See Note 8 for the impact of derivative instruments and hedging activities on the Company's consolidated financial statements. | ||||||||||||||||
The Company records the assets or liabilities associated with derivative instruments and hedging activities at fair value based on Level 2 inputs in other current assets or other current liabilities, respectively, in the consolidated balance sheets. The Level 2 inputs consist of forward spot rates at the end of the reporting period. The accounting for gains and losses resulting from changes in fair value depends on the use of the derivative and whether it is designated and qualifies for hedge accounting. | ||||||||||||||||
For all hedging relationships, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged transaction, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method used to measure ineffectiveness. The Company factors the nonperformance risk of the Company and the counterparty into the fair value measurements of its derivatives. The Company also formally assesses, both at the inception of the hedging relationship and on an ongoing basis, whether the derivatives that are used in hedging relationships are highly effective in offsetting changes in cash flows of hedged transactions. The Company assesses hedge effectiveness and measures hedge ineffectiveness at least quarterly. For derivative instruments that are designated and qualify as part of a cash flow hedging relationship, the effective portion of the gain or loss on the derivative is reported in OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | ||||||||||||||||
The Company discontinues hedge accounting prospectively when it determines that the derivative is no longer effective in offsetting cash flows attributable to the hedged risk, the derivative expires or is sold, terminated, or exercised, the cash flow hedge is designated because a forecasted transaction is not probable of occurring, or management determines to remove the designation of the cash flow hedge. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent changes in its fair value in earnings. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately in earnings gains and losses that were accumulated in OCI related to the hedging relationship. | ||||||||||||||||
Comprehensive Income (Loss) | ||||||||||||||||
Comprehensive income (loss) is the total of net earnings and all other non-owner changes in equity. Except for net income (loss), foreign currency translation adjustments, and unrealized gains and losses on cash flow hedges, the Company does not have any transactions and other economic events that qualify as comprehensive income (loss). | ||||||||||||||||
Business Segment Reporting | ||||||||||||||||
Management of the Company has determined its reportable segments are its strategic business units and it is by these segments that information is reported to the Chief Operating Decision Maker (CODM). The six reportable segments are the UGG, Teva, Sanuk and other brands wholesale divisions, the E-Commerce business, and the retail store business. The CODM is the Principal Executive Officer. The Company performs an annual analysis of the appropriateness of its reportable segments. Information related to the Company's business segments is summarized in Note 11. | ||||||||||||||||
Cash Equivalents | ||||||||||||||||
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents include $127,900, $143,816 and $154,105 of money market funds at March 31, 2015, March 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||
Retirement Plan | ||||||||||||||||
The Company provides a 401(k) defined contribution plan that eligible US employees may elect to participate in through tax-deferred contributions. The Company matches 50% of each eligible participant's tax-deferred contributions on up to 6% of eligible compensation on a per payroll period basis, with a true-up contribution if such eligible participant is employed by the Company on the last day of the calendar year. Internationally, the Company has various defined contribution plans. Certain international locations require mandatory contributions under social programs, and the Company contributes at least the statutory minimums. US 401(k) matching contributions totaled $1,726, $601, $1,386 and $1,066 during the year ended March 31, 2015, quarter ended March 31, 2014, and the years ended December 31, 2013 and 2012, respectively. In addition, the Company may also make discretionary profit sharing contributions to the plan. However, the Company did not make any profit sharing contributions for the year ended March 31, 2015, quarter ended March 31, 2014, and the years ended December 31, 2013 and 2012. | ||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||
On May 28, 2014, FASB 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. Subsequent to March 31, 2015, the FASB proposed a one year deferral of the effective date of ASU No. 2014-09. | ||||||||||||||||
Subsequent to March 31, 2015, FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires an entity to present debt issuance costs on the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. Prior to the issuance of the standard, debt issuance costs were required to be presented in the balance sheet as a deferred charge (i.e., an asset). This ASU is effective for the Company on April 1, 2016, with early adoption permitted. The adoption of this ASU will only change the presentation of prepaid expenses, other assets and short-term borrowings in the Company’s consolidated balance sheet. The Company is considering early adoption of this update during its fiscal year 2016. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Property and Equipment | Property and Equipment | |||||||||||
Property and equipment is summarized as follows: | ||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||
Land | $ | 25,543 | $ | 25,531 | $ | 19,954 | ||||||
Buildings | 38,841 | 36,387 | — | |||||||||
Machinery and equipment | 158,136 | 98,035 | 84,941 | |||||||||
Furniture and fixtures | 36,751 | 31,085 | 25,961 | |||||||||
Leasehold improvements | 102,048 | 96,622 | 142,683 | |||||||||
361,319 | 287,660 | 273,539 | ||||||||||
Less accumulated depreciation and amortization | 129,002 | 103,090 | 99,473 | |||||||||
Net property and equipment | $ | 232,317 | $ | 184,570 | $ | 174,066 | ||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |||||||||||
Most of the Company's goodwill is related to the Sanuk reportable segment, with the remaining related to the UGG and other brands reportable segments. The Company's goodwill and other intangible assets are summarized as follows: | ||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||
Intangibles subject to amortization | ||||||||||||
Weighted-Average Amortization Period | 13 years | 14 years | 14 years | |||||||||
Gross Carrying Amount | $ | 109,604 | $ | 101,982 | $ | 101,963 | ||||||
Accumulated Amortization | 37,316 | 26,026 | 24,140 | |||||||||
Net Carrying Amount | 72,288 | 75,956 | 77,823 | |||||||||
Intangibles not subject to amortization | ||||||||||||
Goodwill | 127,934 | 127,934 | 128,725 | |||||||||
Trademarks | 15,455 | 15,455 | 15,455 | |||||||||
Total goodwill and other intangible assets | $ | 215,677 | $ | 219,345 | $ | 222,003 | ||||||
Changes in the Company's goodwill are summarized as follows: | ||||||||||||
Goodwill, | Accumulated | Goodwill, Net | ||||||||||
Gross | Impairment | |||||||||||
Balance at January 1, 2013 | $ | 144,556 | $ | (15,831 | ) | $ | 128,725 | |||||
Changes related to additions, impairments and other adjustments | — | — | — | |||||||||
Balance at December 31, 2013 | 144,556 | (15,831 | ) | 128,725 | ||||||||
Adjustments related to prior acquisitions | (791 | ) | — | (791 | ) | |||||||
Balance at March 31, 2014 | 143,765 | (15,831 | ) | 127,934 | ||||||||
Changes related to additions, impairments and other adjustments | — | — | — | |||||||||
Balance at March 31, 2015 | $ | 143,765 | $ | (15,831 | ) | $ | 127,934 | |||||
As of December 31, 2014 and 2013, the Company performed its annual impairment tests and evaluated its UGG and other brands' goodwill. As of October 31, 2014 and 2013, the Company performed its annual impairment tests and evaluated its Teva trademarks and Sanuk goodwill. Based on the carrying amounts of the UGG, Teva, Sanuk, and other brands' goodwill, trademarks, and net assets, the brands' fiscal year 2015, quarter ended March 31, 2014 and fiscal year 2013 sales and operating results, and the brands' long-term forecasts of sales and operating results as of their evaluation dates, the Company concluded that the carrying amounts of the UGG, Sanuk and other brands' goodwill, as well as the Teva trademarks, were not impaired. The Sanuk brand goodwill was evaluated based on Level 3 inputs as of October 31, 2013 and based on qualitative analyses as of October 31, 2014. As of December 31, 2014 and 2013, and as of October 31, 2014 and 2013, all goodwill other than the Sanuk brand goodwill and all other nonamortizable intangibles were evaluated based on qualitative analyses. | ||||||||||||
The Company's goodwill by segment is as follows: | ||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||
UGG brand | $ | 6,101 | $ | 6,101 | $ | 6,101 | ||||||
Sanuk brand | 113,944 | 113,944 | 113,944 | |||||||||
Other brands | 7,889 | 7,889 | 8,680 | |||||||||
Total | $ | 127,934 | $ | 127,934 | $ | 128,725 | ||||||
Aggregate amortization expense for amortizable intangible assets for the year ended March 31, 2015, quarter ended March 31, 2014 and years ended December 31, 2013 and 2012, was $11,291, $1,886, $7,975 and $9,312, respectively. The following table summarizes the expected amortization expense on existing intangible assets, excluding indefinite-lived intangible assets of $8,044 and trademarks of $15,455, for the next five years: | ||||||||||||
Year ending March 31, | ||||||||||||
2016 | $ | 9,358 | ||||||||||
2017 | 8,361 | |||||||||||
2018 | 6,278 | |||||||||||
2019 | 5,621 | |||||||||||
2020 | 3,813 | |||||||||||
Thereafter | 30,813 | |||||||||||
$ | 64,244 | |||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||
Income Taxes | Income Taxes | |||||||||||||||
Components of income tax expense (benefit) are as follows: | ||||||||||||||||
Year ended | Quarter ended (transition period) | Years ended | ||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | 12/31/12 | |||||||||||||
Current: | ||||||||||||||||
Federal | $ | 35,459 | $ | (572 | ) | $ | 51,058 | $ | 50,911 | |||||||
State | 6,861 | (4 | ) | 6,252 | 6,482 | |||||||||||
Foreign | 7,069 | 5,255 | 6,650 | 3,368 | ||||||||||||
Total | 49,389 | 4,679 | 63,960 | 60,761 | ||||||||||||
Deferred: | ||||||||||||||||
Federal | 8,234 | 1,669 | (2,580 | ) | (6,083 | ) | ||||||||||
State | 624 | (1 | ) | (209 | ) | 414 | ||||||||||
Foreign | 1,112 | (4,404 | ) | (1,303 | ) | 12 | ||||||||||
Total | 9,970 | (2,736 | ) | (4,092 | ) | (5,657 | ) | |||||||||
Income tax expense | $ | 59,359 | $ | 1,943 | $ | 59,868 | $ | 55,104 | ||||||||
Foreign income before income taxes was $95,850 during the year ended March 31, 2015. Foreign loss before income taxes was $3,631 during the quarter ended March 31, 2014. Foreign income before income taxes was $60,851 and $51,409 during the years ended December 31, 2013 and 2012, respectively. | ||||||||||||||||
Actual income taxes differed from that obtained by applying the statutory federal income tax rate to income before income taxes as follows: | ||||||||||||||||
Year ended | Quarter ended (transition period) | Years ended | ||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | 12/31/12 | |||||||||||||
Computed expected income taxes | $ | 77,399 | $ | (260 | ) | $ | 71,945 | $ | 64,282 | |||||||
State income taxes, net of federal income tax benefit | 3,564 | 90 | 4,435 | 3,562 | ||||||||||||
Foreign rate differential | (25,535 | ) | 1,904 | (16,399 | ) | (12,908 | ) | |||||||||
Unrecognized tax benefits | 3,566 | — | — | — | ||||||||||||
Other | 365 | 209 | (113 | ) | 168 | |||||||||||
$ | 59,359 | $ | 1,943 | $ | 59,868 | $ | 55,104 | |||||||||
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are presented below: | ||||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||||||
Deferred tax assets (liabilities), current: | ||||||||||||||||
Uniform capitalization adjustment to inventory | $ | 4,040 | $ | 4,114 | $ | 5,492 | ||||||||||
Bad debt and other reserves | 8,984 | 9,901 | 10,655 | |||||||||||||
State taxes | 482 | (1,739 | ) | 508 | ||||||||||||
Prepaid expenses | (3,546 | ) | (2,217 | ) | (2,193 | ) | ||||||||||
Accrued bonus | 4,120 | 2,093 | 5,071 | |||||||||||||
Foreign currency hedge | 434 | 305 | 348 | |||||||||||||
Net operating loss carry forwards | — | 9,414 | — | |||||||||||||
Other | (448 | ) | — | — | ||||||||||||
Total deferred tax assets, current | 14,066 | 21,871 | 19,881 | |||||||||||||
Deferred tax assets (liabilities), noncurrent: | ||||||||||||||||
Amortization and impairment of intangible assets | 1,004 | 5,267 | 4,603 | |||||||||||||
Depreciation of property and equipment | (6,148 | ) | (4,833 | ) | (6,034 | ) | ||||||||||
Share-based compensation | 12,044 | 10,638 | 11,226 | |||||||||||||
Foreign currency translation | 720 | 382 | 667 | |||||||||||||
Deferred rent | 4,885 | 4,290 | 4,028 | |||||||||||||
Acquisition costs | 764 | 756 | 755 | |||||||||||||
Other | 1,327 | 128 | — | |||||||||||||
Net operating loss carry forwards | 421 | 434 | 506 | |||||||||||||
Total deferred tax assets, noncurrent | 15,017 | 17,062 | 15,751 | |||||||||||||
Net deferred tax assets | $ | 29,083 | $ | 38,933 | $ | 35,632 | ||||||||||
In order to fully realize the deferred tax assets, the Company will need to generate future taxable income of approximately $76,000. The deferred tax assets are primarily related to the Company's domestic operations. The change in net deferred tax assets between March 31, 2015 and March 31, 2014 includes approximately $100 attributable to OCI. The change in net deferred tax assets between March 31, 2014 and December 31, 2013 includes approximately $800 attributable to goodwill, partially offset by approximately $200 attributable to OCI. Domestic taxable income for the year ended March 31, 2015, the quarter ended March 31, 2014 and the years ended December 31, 2013 and 2012 was $91,017, $0, $151,204 and $141,660, respectively. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets and, accordingly, no valuation allowance was recorded in fiscal years 2015, 2013 and 2012. | ||||||||||||||||
As of March 31, 2015, withholding and US taxes have not been provided on approximately $362,000 of unremitted earnings of non-US subsidiaries because the earnings are expected to be reinvested outside of the US indefinitely. Repatriation of all foreign earnings would result in approximately $118,000 of US income tax. Such earnings would become taxable upon the sale or liquidation of these subsidiaries or upon the remittance of dividends. As of March 31, 2015, the Company had approximately $132,000 of cash and cash equivalents outside the US that would be subject to additional income taxes if they were to be repatriated. If the Company were to repatriate foreign cash, the Company would record the US tax liability net of any foreign income taxes previously paid on this cash. The Company has no plans to repatriate any of its foreign cash. For fiscal year 2015, the Company generated approximately 25.0% of its pre-tax earnings from a country which does not impose a corporate income tax. | ||||||||||||||||
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 consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. | ||||||||||||||||
A reconciliation of the beginning and ending amounts of total unrecognized tax benefits is as follows: | ||||||||||||||||
Balance at January 1, 2013 | $ | — | ||||||||||||||
Gross change related to current and prior years' tax positions | — | |||||||||||||||
Balance, December 31, 2013 | $ | — | ||||||||||||||
Gross change related to current and prior years' tax positions | — | |||||||||||||||
Balance, March 31, 2014 | $ | — | ||||||||||||||
Gross increase related to current year tax positions | 1,293 | |||||||||||||||
Gross increase related to prior year tax positions | 3,374 | |||||||||||||||
Balance, March 31, 2015 | $ | 4,667 | ||||||||||||||
The amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of March 31, 2015 was $3,566. It is reasonably possible that approximately $300 of unrecognized tax benefits will be settled within the next 12 months. As of March 31, 2015, interest and potential penalties of $1,246 were accrued in the consolidated balance sheets resulting from tax positions that are subject to examination. As of March 31, 2014 and December 31, 2013, interest and potential penalties of $349 and $360, respectively, were accrued in the consolidated balance sheets resulting from outstanding state liabilities as a result of resolved Federal examinations. | ||||||||||||||||
The Company files income tax returns in the US federal jurisdiction and various state, local, and foreign jurisdictions. 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 2009. | ||||||||||||||||
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 on-going income tax examinations under various state and foreign tax jurisdictions. It is the opinion of management that these audits and inquiries will not have a material impact on the Company's consolidated financial statements. |
Notes_Payable_and_LongTerm_Deb
Notes Payable and Long-Term Debt | 12 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long-Term Debt | Notes Payable and Long-Term Debt |
In August 2011, the Company entered into a Credit Agreement (Credit Agreement) with JPMorgan Chase Bank, National Association (JPMorgan) as the administrative agent, Comerica Bank and HSBC Bank USA, National Association as syndication agents, and the lenders party thereto. In August 2012 and again in November 2014, the Company amended and restated in its entirety the Credit Agreement. The Second Amended and Restated Credit Agreement is a five-year, $400,000 secured revolving credit facility that contains a $75,000 sublimit for the issuance of letters of credit and a $5,000 sublimit for swingline loans and matures on November 13, 2019. Subject to customary conditions and the approval of any lender whose commitment would be increased, the Company has the option to increase the maximum principal amount available under the Second Amended and Restated Credit Agreement by up to an additional $200,000, resulting in maximum available principal amount of $600,000. None of the lenders under the Second Amended and Restated Credit Agreement has committed at this time or is obligated to provide any such increase in the commitments. In addition to allowing borrowings in US dollars, the Second Amended and Restated Credit Agreement provides a $150,000 sublimit for borrowings in Euros, British pounds and any other currency that is subsequently approved by JPMorgan, each lender and the issuing bank. At the Company's option, revolving loans issued under the Second Amended and Restated Credit Agreement will initially bear interest at either the adjusted London Interbank Offered Rate (LIBOR) for 30 days (0.18% at March 31, 2015) plus 1.25% per annum, in the case of LIBOR borrowings, or at the alternate base rate plus 0.25% per annum, and thereafter the interest rate will fluctuate between adjusted LIBOR plus 1.25% per annum and adjusted LIBOR plus 2.00% per annum (or between the alternate base rate plus 0.25% per annum and the alternate base rate plus 1.00% per annum), based upon the Company's total adjusted leverage ratio at such time. In addition, the Company will initially be required to pay fees of 0.175% per annum on the daily amount of the revolving credit facility, and thereafter the fee rate will fluctuate between 0.175% and 0.30% per annum, based upon the Company's total adjusted leverage ratio. | |
The Company's obligations under the Second Amended and Restated Credit Agreement are guaranteed by the Company's existing and future wholly-owned domestic subsidiaries (other than certain immaterial subsidiaries, foreign subsidiaries, foreign subsidiary holding companies and specified excluded subsidiaries) (the Guarantors), and is secured by a first-priority security interest in substantially all of the assets of the Company and the Guarantors, including all or a portion of the equity interests of certain of the Company's domestic and first-tier foreign subsidiaries. | |
The Second Amended and Restated Credit Agreement contains financial covenants which include: the total adjusted leverage ratio must not be greater than 3.25 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. The Second Amended and Restated Credit Agreement contains certain other covenants which include: the maximum amount paid for capital expenditures may not exceed $110,000 per year if the total adjusted leverage ratio is equal to or exceeds 2.75 to 1.00; the maximum additional unsecured debt may not exceed $200,000; the Company may not have aggregate ERISA events that are considered materially adverse; the Company may not have a change of control (as defined in the Second Amended and Restated Credit Agreement); and no restrictions on dividends, share repurchases or acquisitions if the total adjusted leverage ratio does not exceed 2.75 to 1.00. | |
At March 31, 2015, the Company had no outstanding borrowings under the Second Amended and Restated Credit Agreement and had outstanding letters of credit of approximately $100. As a result, the unused balance under the Second Amended and Restated Credit Agreement was approximately $399,900 at March 31, 2015. In August 2012 the Company incurred approximately $1,800 of deferred financing costs which are included in prepaid expenses and amortized over the term of the Amended and Restated Credit Agreement using the straight-line method. In November 2014, the Company incurred approximately $800 of additional deferred financing costs which were combined with the remaining unamortized balance from the Amended and Restated Credit Agreement included in prepaid expenses. The combined amount is being amortized over the term of the Second Amended and Restated Credit Agreement using the straight-line method. | |
In August 2013, Deckers (Beijing) Trading Co., LTD, a fully owned subsidiary, entered into a credit facility in China (China Credit Facility) that provides for an uncommitted revolving line of credit of up to CNY 60,000, or approximately $10,000, in the quarters ending September 30 and December 31 and CNY 20,000, or approximately $3,300, in the quarters ending March 31 and June 30. The China Credit Facility is payable on demand and subject to annual review and renewal. The obligations under the China Credit Agreement are guaranteed by the Company for 110% of the facility amount in USD. In December 2013, the China Credit Facility was revised to provide for the uncommitted revolving line of credit of up to CNY 60,000 to be extended to the entire year. In October 2014, the China Credit Facility was amended (Amended China Credit Facility) to include, among other things, an extension of the aggregate period of borrowing from 12 months to 18 months. At March 31, 2015, the Company had approximately $4,900 of outstanding borrowings under the Amended China Credit Facility. Interest is based on the People’s Bank of China rate, which was 5.35% at March 31, 2015. | |
In July 2014, the Company obtained a mortgage secured by its corporate headquarters property for approximately $33,900. At March 31, 2015 the outstanding balance under the mortgage was approximately $33,600, which includes approximately $500 in short-term borrowings and approximately $33,100 in mortgage payable in the consolidated balance sheet. The mortgage has a fixed interest rate of 4.928%. Payments include interest and principal in an amount that amortizes the principal balance over a 30-year period, however the loan will mature and have a balloon payment due in 15 years of approximately $23,400. Minimum principal payments over the next 5 years are approximately $2,700. In December 2014, the mortgage financial covenants were amended to be consistent with the financial covenants of the Second Amended and Restated Credit Agreement as discussed above. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||||||||||
The Company leases office, distribution, retail facilities, and automobiles, under operating lease agreements, which expire through 2028. Some of the leases contain renewal options for approximately one to fifteen years. Future minimum commitments under the lease agreements are as follows: | ||||||||||||||||
Year ending March 31, | ||||||||||||||||
2016 | $ | 53,664 | ||||||||||||||
2017 | 55,325 | |||||||||||||||
2018 | 49,357 | |||||||||||||||
2019 | 39,293 | |||||||||||||||
2020 | 32,809 | |||||||||||||||
Thereafter | 118,451 | |||||||||||||||
$ | 348,899 | |||||||||||||||
The following schedule shows the composition of total rental expense. | ||||||||||||||||
Year ended | Quarter ended (transition period) | Years ended | ||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | 12/31/12 | |||||||||||||
Minimum rentals | $ | 61,363 | $ | 14,260 | $ | 47,871 | $ | 37,270 | ||||||||
Contingent rentals | 14,707 | 3,099 | 12,318 | 9,366 | ||||||||||||
$ | 76,070 | $ | 17,359 | $ | 60,189 | $ | 46,636 | |||||||||
Purchase Obligations. The Company had $664,659 of outstanding purchase orders with its manufacturers as of March 31, 2015. In addition, the Company entered into agreements for the build out of new retail stores, promotional activities and other services. Future commitments under these purchase orders and other agreements for the year ending March 31, 2016 total $664,429. Included in the fiscal year 2016 amount are remaining commitments, net of deposits, that are also unconditional purchase obligations relating to sheepskin contracts. The Company enters into contracts requiring minimum purchase commitments of sheepskin that Deckers' affiliates, manufacturers, factories, and other agents (each or collectively, a Buyer) must make on or before a specified target date. Under certain contracts, the Company may pay an advance deposit that shall be repaid to the Company as Buyers purchase goods under the terms of these agreements. Included in other current assets on the consolidated balance sheets are approximately $14,000, $11,000 and $67,000 of advance deposits as of March 31, 2015, March 31, 2014 and December 31, 2013, respectively. In the event that a Buyer does not purchase certain minimum commitments on or before certain target dates, the supplier may retain a portion of the advance deposit until the amounts of the commitments are fulfilled. These agreements may result in unconditional purchase obligations if a Buyer does not meet the minimum purchase requirements. In the event that a Buyer does not purchase such minimum commitments by the target dates, the Company shall be responsible for compliance with any and all minimum purchase commitments under these contracts, and the Company would make additional deposit payments towards the purchase of the remaining minimum commitments and such additional deposits would be returned as the Buyers purchase the remaining minimum commitments. The contracts do not permit net settlement. Minimum commitments for these contracts as of March 31, 2015 were as follows: | ||||||||||||||||
Contract | Final | Advance | Total | Remaining | Remaining | |||||||||||
Effective Date | Target Date | Deposit | Minimum | Deposit | Commitment, | |||||||||||
Commitment | Net of Deposit | |||||||||||||||
October 2011 | September 2015 | $50,000 | $286,000 | $13,783 | — | |||||||||||
October 2014 | September 2015 | — | $51,240 | — | $32,487 | |||||||||||
Sep-14 | Sep-15 | — | $47,960 | — | $15,434 | |||||||||||
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 5 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. In addition, from time to time, the Company also agrees to standard indemnification provisions in commercial agreements in the ordinary course of business. | ||||||||||||||||
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. | ||||||||||||||||
Contingent Consideration. In July 2011, the Company acquired the Sanuk brand, and the total purchase price included contingent consideration payments. As of March 31, 2015, the remaining contingent consideration payment, which has no maximum, is 40.0% of the Sanuk brand gross profit in calendar year 2015 and is to be paid within 60 days following the end of the performance period. | ||||||||||||||||
As of March 31, 2015, March 31, 2014 and December 31, 2013, the Company had total contingent consideration for the acquisition of the Sanuk brand of approximately $24,200, $28,000 and $46,200, respectively, of which approximately $24,200, $0 and $18,600 is included within other accrued expenses and approximately $0, $28,000 and $27,600 is included within other long-term liabilities at March 31, 2015, March 31, 2014 and December 31, 2013, respectively, in the consolidated balance sheets. | ||||||||||||||||
In September 2012, the Company acquired Hoka, and the total purchase price included contingent consideration payments with a maximum of $2,000 which is based on the Hoka brand's net sales for calendar years 2013 through 2017, of which approximately $500 has been paid. As of March 31, 2015, March 31, 2014 and December 31, 2013 contingent consideration for the acquisition of the Hoka brand of approximately $1,500, $1,800 and $1,800, respectively are included within other accrued expenses and other long-term liabilities in the consolidated balance sheets. Refer to Note 1 for further information on the contingent consideration amounts. | ||||||||||||||||
Future Capital Commitments. As of March 31, 2015, the Company had approximately $8,000 of material commitments for future capital expenditures primarily related to equipment costs of its new distribution center. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||
Stockholders' Equity | Stockholders' Equity | |||||||||||||||
In May 2006, the Company adopted the 2006 Equity Incentive Plan (the 2006 Plan), which was amended 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 provides for 6,000,000 shares of the Company's common stock that are reserved 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 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 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, with the remaining NSUs subject only to time restrictions. For the majority of NSUs granted in 2013 and after, if the performance goals are achieved, these awards vest in equal one-third installments at the end of each of the three years after the performance goals are achieved. For NSUs granted in 2012, the performance target was not met and, therefore, the awards did not vest. | ||||||||||||||||
The Company also has long-term incentive award agreements under the 2006 Plan for issuance of SARs and RSUs, which were awarded to certain executive officers of the Company. These awards vest subject to certain long-term performance objectives and certain long-term service conditions. One-half of the SAR and RSU awards vested 80% on December 31, 2010 and 20% on December 31, 2011, and, provided that the conditions are met, one-half of the SAR and RSU awards vest 80% on December 31, 2015 and 20% on December 31, 2016. The Company considers achievement of the remaining performance conditions as probable and is recognizing such compensation cost over the service period. | ||||||||||||||||
In June 2011, the Board of Directors of the Company adopted a long-term incentive award under its 2006 Equity Incentive Plan (Level III Awards). The shares under these awards were available for issuance to current and future members of the Company's management team, including the Company's named executive officers. These awards were to vest on December 31, 2014 subject to certain long-term performance objectives and certain long-term service conditions. Under this program, the Company granted a maximum amount of 275,000 RSUs during the year ended December 31, 2011. For all Level III Awards granted, the performance objectives were not met and, therefore, the awards did not vest. | ||||||||||||||||
In May 2012, the Board of Directors of the Company adopted a long-term incentive award under its 2006 Equity Incentive Plan (2012 LTIP Awards). The shares under these awards were available for issuance to current and future members of the Company's management team, including the Company's named executive officers. Each recipient received a specified maximum number of RSUs, each of which represents the right to receive one share of the Company's common stock. These awards vest subject to certain long-term performance objectives and certain long-term service conditions. The awards will vest on December 31, 2015 only if the Company meets certain revenue targets ranging between $2,200,000 and $2,900,000 and certain diluted earnings per share targets ranging between $7.00 and $10.50 for the year ended December 31, 2015. No vesting of any 2012 LTIP Awards will occur if either of the threshold performance criteria is not met for the year ending December 31, 2015. To the extent financial performance is achieved above the threshold levels, the number of RSUs that will vest will increase up to the maximum number of units granted under the award. Under this program, the Company granted awards that contain a maximum amount of 352,000 RSUs during the year ended December 31, 2012. The grant date fair value of these RSUs was $56.12 per share. As of March 31, 2015 and 2014 and December 31, 2013, the Company did not believe that the achievement of the performance objectives of these awards was probable, and therefore the Company did not recognize compensation expense for these awards. If the performance objectives become probable, the Company will then begin recording an expense for the 2012 LTIP Awards and would recognize a cumulative catch-up adjustment in the period they become probable. As of March 31, 2015, the cumulative amount would be approximately $12,000 based on the maximum number of units if the performance objectives were probable. | ||||||||||||||||
In December 2013, the Board of Directors of the Company adopted a long-term incentive award under its 2006 Equity Incentive Plan (2013 LTIP Awards). The shares under these awards were available for issuance to current and future members of the Company's management team, including the Company's named executive officers. Each recipient received a specified maximum number of RSUs, each of which represents the right to receive one share of the Company's common stock. These awards vest subject to certain long-term performance objectives and certain long-term service conditions. The recipients of these awards are divided into two participant groups, revenue generating and non-revenue generating. The awards for the non-revenue generating participants will vest on March 31, 2016 only if the Company meets certain revenue targets ranging between $2,290,000 and $2,558,000 and certain EBITDA targets ranging between $372,000 and $415,000 for the fiscal year ending March 31, 2016. The awards for the revenue generating participants will vest on March 31, 2016 only if the Company achieves EBITDA of $350,000 and the respective revenue by brand and channel managed by each participant meets certain revenue targets that are tailored to each brand and channel for the fiscal year ending March 31, 2016. No vesting of any 2013 LTIP Awards will occur if either of the threshold performance criteria is not met for the year ending March 31, 2016. To the extent financial performance is achieved above the threshold levels, the number of RSUs that will vest will increase up to the maximum number of units granted under the award. Under this program, the Company granted awards that contain a maximum amount of 156,000 RSUs during the year ended December 31, 2013. The grant date fair value of these RSUs was $84.52 per share. As of March 31, 2015, the Company did not believe that the achievement of the performance objectives of these awards was probable, and therefore the Company reversed compensation expense accrued in prior periods. The amount reversed was immaterial to the Company's consolidated financial statements. If the performance objectives become probable, the Company will then begin recording an expense for the 2013 LTIP Awards and would recognize a cumulative catch-up adjustment in the period they become probable. As of March 31, 2015, the cumulative amount would be approximately $2,000 based on the maximum number of units if the performance objectives were probable. | ||||||||||||||||
In September 2014, the Board of Directors of the Company approved a long-term incentive award (2015 LTIP Awards) under its 2006 Equity Incentive Plan. The shares under these awards were available for issuance to current and future members of the Company's leadership team, including the Company's named executive officers. Each recipient received a specified maximum number of RSUs, each of which represents the right to receive one share of the Company's common stock. These awards vest subject to certain long-term performance objectives and certain long-term service conditions. The awards will vest on March 31, 2017 only if the Company meets certain revenue targets ranging between approximately $2,155,000 and approximately $2,447,000 and certain EBITDA targets ranging between approximately $336,000 and approximately $394,000 for the fiscal year ending March 31, 2017. No vesting of any 2015 LTIP Awards will occur if either of the threshold performance criteria is not met for the year ending March 31, 2017. To the extent financial performance is achieved above the threshold levels, the number of RSUs that will vest will increase up to the maximum number of units granted under the award. Under this new program, the Company granted awards that contain a maximum amount of approximately 160,000 RSUs during the year ended March 31, 2015. The average grant date fair value of these RSUs was $98.29 per share. As of March 31, 2015, future unrecognized compensation cost for the 2015 LTIP Awards, excluding estimated forfeitures, was approximately $6,100. As of March 31, 2015, based on the Company's long-range forecast, the Company believed that the achievement of at least the threshold performance objectives of these awards was probable, and therefore the Company recognized compensation expense accordingly. | ||||||||||||||||
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 did 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. As of February 28, 2015, the Company had repurchased approximately 3,823,000 shares under this program, for approximately $200,000, or an average price of $52.31. As of February 28, 2015, the Company had repurchased the full amount authorized under this program. | ||||||||||||||||
In January 2015, the Company approved a new 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. As of March 31, 2015, the Company had repurchased approximately 377,000 shares under this program, for approximately $27,900, or an average price of $74.09 leaving the remaining approved amount at $172,100. | ||||||||||||||||
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. | ||||||||||||||||
The table below summarizes stock compensation amounts recognized in the consolidated statements of comprehensive income (loss): | ||||||||||||||||
Year ended | Quarter ended (transition period) | Years ended | ||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | 12/31/12 | |||||||||||||
Compensation expense recorded for: | ||||||||||||||||
NSUs | $ | 9,295 | $ | 1,863 | $ | 10,545 | $ | 11,849 | ||||||||
SARs | 1,846 | 381 | 1,302 | 1,501 | ||||||||||||
RSUs | 1,323 | 354 | 287 | 231 | ||||||||||||
Directors' shares | 1,060 | 267 | 1,002 | 1,080 | ||||||||||||
Total compensation expense | 13,524 | 2,865 | 13,136 | 14,661 | ||||||||||||
Income tax benefit recognized | (5,143 | ) | (1,082 | ) | (4,950 | ) | (5,573 | ) | ||||||||
Net compensation expense | $ | 8,381 | $ | 1,783 | $ | 8,186 | $ | 9,088 | ||||||||
The table below summarizes the total remaining unrecognized compensation cost related to nonvested awards that are considered probable of vesting as of March 31, 2015, and the weighted-average period over which the cost is expected to be recognized as of March 31, 2015: | ||||||||||||||||
Unrecognized | Weighted-Average | |||||||||||||||
Compensation | Remaining | |||||||||||||||
Cost | Vesting Period (Years) | |||||||||||||||
NSUs | $ | 13,917 | 1.5 | |||||||||||||
SARs | 1,355 | 0.9 | ||||||||||||||
RSUs | 6,317 | 1.5 | ||||||||||||||
Total | $ | 21,589 | ||||||||||||||
The unrecognized compensation cost excludes a maximum of $15,637 and $10,396 of compensation cost on the 2012 LTIP Awards and 2013 LTIP Awards, respectively, as achievement of the performance conditions are not considered probable. | ||||||||||||||||
Nonvested Stock Units Issued Under the 2006 Plan | ||||||||||||||||
Number of | Weighted- | |||||||||||||||
Shares | Average | |||||||||||||||
Grant-Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Nonvested at January 1, 2012 | 677,000 | $ | 48.14 | |||||||||||||
Granted | 209,000 | 63.18 | ||||||||||||||
Vested | (297,000 | ) | 35.9 | |||||||||||||
Forfeited | (18,000 | ) | 63.68 | |||||||||||||
Cancelled* | (200,000 | ) | 62.17 | |||||||||||||
Nonvested at December 31, 2012 | 371,000 | $ | 58.51 | |||||||||||||
Granted | 304,000 | 57.3 | ||||||||||||||
Vested | (315,000 | ) | 53.19 | |||||||||||||
Forfeited | (20,000 | ) | 61.08 | |||||||||||||
Nonvested at December 31, 2013 | 340,000 | $ | 62.23 | |||||||||||||
Granted | — | — | ||||||||||||||
Vested | (2,000 | ) | 58.11 | |||||||||||||
Forfeited | (7,000 | ) | 64.15 | |||||||||||||
Nonvested at March 31, 2014 | 331,000 | $ | 62.21 | |||||||||||||
Granted | 196,000 | 82.34 | ||||||||||||||
Vested | (142,000 | ) | 68.39 | |||||||||||||
Forfeited | (30,000 | ) | 64.18 | |||||||||||||
Cancelled* | (15,000 | ) | 84.04 | |||||||||||||
Nonvested at March 31, 2015 | 340,000 | $ | 70.11 | |||||||||||||
* Nonvested Stock Units cancelled during the period represent awards granted whose performance criteria were not met. | ||||||||||||||||
Stock Appreciation Rights Issued Under the 2006 Plan | ||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | |||||||||||||
SARs | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | |||||||||||||||
Term | ||||||||||||||||
(Years) | ||||||||||||||||
Outstanding at January 1, 2012 | 760,000 | $ | 26.73 | 8.8 | $ | 37,118 | ||||||||||
Granted | — | — | ||||||||||||||
Exercised | (15,000 | ) | 26.73 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Outstanding at December 31, 2012 | 745,000 | $ | 26.73 | 7.9 | $ | 10,087 | ||||||||||
Granted | — | — | ||||||||||||||
Exercised | (15,000 | ) | 26.73 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Outstanding at December 31, 2013 | 730,000 | $ | 26.73 | 6.9 | $ | 42,143 | ||||||||||
Granted | — | — | ||||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited | — | — | ||||||||||||||
Outstanding at March 31, 2014 | 730,000 | $ | 26.73 | 6.7 | $ | 38,690 | ||||||||||
Granted | — | — | ||||||||||||||
Exercised | (15,000 | ) | 26.73 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Outstanding at March 31, 2015 | 715,000 | $ | 26.73 | 5.8 | $ | 32,990 | ||||||||||
Exercisable at March 31, 2015 | 190,000 | $ | 26.73 | 2.1 | $ | 8,767 | ||||||||||
Expected to vest and exercisable at March 31, 2015 | 702,000 | $ | 26.73 | 5.8 | $ | 32,396 | ||||||||||
The maximum contractual term is 10 and 15 years from the date of grant for those SARs with final vesting dates of December 31, 2011 and December 31, 2016, respectively. The number of SARs expected to vest is based on the probability of achieving certain performance conditions and is also reduced by estimated forfeitures. The difference between the amount outstanding and the amount expected to vest and exercisable at March 31, 2015 was estimated forfeitures for estimated failure to meet the long-term service conditions. | ||||||||||||||||
Restricted Stock Units Issued Under the 2006 Plan | ||||||||||||||||
Number of | Weighted- | |||||||||||||||
Shares | Average | |||||||||||||||
Grant-Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Nonvested at January 1, 2012 | 319,000 | $ | 70.15 | |||||||||||||
Granted | 352,000 | 56.12 | ||||||||||||||
Vested | — | — | ||||||||||||||
Forfeited | — | — | ||||||||||||||
Nonvested at December 31, 2012 | 671,000 | $ | 62.8 | |||||||||||||
Granted | 156,000 | 84.52 | ||||||||||||||
Vested | — | — | ||||||||||||||
Forfeited | (32,000 | ) | 63.69 | |||||||||||||
Nonvested at December 31, 2013 | 795,000 | $ | 67.03 | |||||||||||||
Granted | — | — | ||||||||||||||
Vested | — | — | ||||||||||||||
Forfeited | (66,000 | ) | 67.23 | |||||||||||||
Nonvested at March 31, 2014 | 729,000 | $ | 67.01 | |||||||||||||
Granted | 160,000 | 98.29 | ||||||||||||||
Vested | — | — | ||||||||||||||
Forfeited | (35,000 | ) | 78.39 | |||||||||||||
Cancelled | (230,000 | ) | 82.09 | |||||||||||||
Nonvested at March 31, 2015 | 624,000 | $ | 68.82 | |||||||||||||
The amounts granted are the maximum amount under the respective awards. |
Foreign_Currency_Exchange_Cont
Foreign Currency Exchange Contracts and Hedging | 12 Months Ended | |||||
Mar. 31, 2015 | ||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||
Foreign Currency Exchange Contracts and Hedging | Foreign Currency Exchange Contracts and Hedging | |||||
The Company had foreign currency forward contracts designated as cash-flow hedges with notional amounts totaling approximately $46,000, $64,000 and $77,000 as of March 31, 2015 and 2014, and December 31, 2013, respectively. These contracts were held by four counterparties and, as of March 31, 2015, were expected to mature over the next 12 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 year ended March 31, 2015, the ineffective portion relating to these hedges was immaterial and the hedges remained effective as of March 31, 2015. The effective portion of the gain or loss on the derivative is reported in other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. As of March 31, 2015, the total amount in accumulated other comprehensive income (loss) (see Note 10) was expected to be reclassified into income within the next 15 months. | ||||||
Subsequent to March 31, 2015, the Company entered into non-designated derivative contracts with notional amounts totaling approximately $42,000 and designated derivative contracts with notional amounts totaling approximately $31,000. All derivative contracts were held by six counterparties. | ||||||
The following tables summarize the effect of derivative instruments on the consolidated financial statements: | ||||||
Year ended | Quarter ended (transition period) | Year ended | ||||
3/31/15 | 3/31/14 | 12/31/13 | ||||
Derivatives in Designated Cash Flow Hedging Relationships | Foreign Exchange Contracts | Foreign Exchange Contracts | Foreign Exchange Contracts | |||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $1,556 | ($47) | ($779) | |||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | Net Sales | Net Sales | Net Sales | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $1,226 | ($283) | $17 | |||
Location of Amount Excluded from Effectiveness Testing | SG&A expenses | SG&A expenses | SG&A expenses | |||
Gain (Loss) from Amount Excluded from Effectiveness Testing | ($69) | ($31) | ($11) | |||
Year ended | Quarter ended (transition period) | Year ended | ||||
3/31/15 | 3/31/14 | 12/31/13 | ||||
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contracts | Foreign Exchange Contracts | Foreign Exchange Contracts | |||
Location of Gain (Loss) Recognized in Income on Derivatives | SG&A expenses | SG&A expenses | SG&A expenses | |||
Amount of Gain Recognized in Income on Derivatives | $6,383 | $— | $728 |
Transition_Period
Transition Period | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Transition Period [Abstract] | ||||||||
Transition Period | Transition Period | |||||||
In February 2014, our Board of Directors approved a change in the Company's fiscal year (FY) end from December 31 to March 31. Accordingly, the Company is presenting audited financial statements for the quarter transition period ended March 31, 2014. The following table provides certain unaudited comparative financial information for the same period of the prior year. | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 (unaudited) | |||||||
Net sales | $ | 294,716 | $ | 263,760 | ||||
Cost of sales | 150,456 | 140,201 | ||||||
Gross profit | 144,260 | 123,559 | ||||||
Selling, general and administrative expenses | 144,668 | 120,907 | ||||||
(Loss) income from operations | (408 | ) | 2,652 | |||||
Other expense (income), net: | ||||||||
Interest income | (65 | ) | (26 | ) | ||||
Interest expense | 516 | 339 | ||||||
Other, net | (117 | ) | (171 | ) | ||||
Total other expense | 334 | 142 | ||||||
(Loss) income before income taxes | (742 | ) | 2,510 | |||||
Income tax expense | 1,943 | 1,503 | ||||||
Net (loss) income | (2,685 | ) | 1,007 | |||||
Other comprehensive income (loss), net of tax: | ||||||||
Unrealized (loss) income on foreign currency hedging | (273 | ) | 1,530 | |||||
Foreign currency translation adjustment | 873 | (674 | ) | |||||
Total other comprehensive income | 600 | 856 | ||||||
Comprehensive (loss) income | $ | (2,085 | ) | $ | 1,863 | |||
Net (loss) income per share: | ||||||||
Basic | $ | (0.08 | ) | $ | 0.03 | |||
Diluted | $ | (0.08 | ) | $ | 0.03 | |||
Weighted-average common shares outstanding: | ||||||||
Basic | 34,621,000 | 34,404,000 | ||||||
Diluted | 34,621,000 | 34,788,000 | ||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | |||||||||||
Accumulated balances of the components within accumulated other comprehensive loss are as follows: | ||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||
Cumulative foreign currency translation adjustment | $ | (20,159 | ) | $ | (1,284 | ) | $ | (2,157 | ) | |||
Unrealized loss on foreign currency hedging, net of tax | (309 | ) | (759 | ) | (486 | ) | ||||||
Accumulated other comprehensive loss | $ | (20,468 | ) | $ | (2,043 | ) | $ | (2,643 | ) |
Business_Segments_Concentratio
Business Segments, Concentration of Business, and Credit Risk and Significant Customers | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 (see Note 1), 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 (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 its 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 (loss) from operations for each of the segments includes only those costs which 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 business 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. During the quarter ended (transition period) March 31, 2014, certain operating expenses were reclassified between segments. This change in segment reporting only changed the presentation within the below table and did not impact the Company's consolidated financial statements for any period. The segment information for prior periods have been adjusted retrospectively to conform to the current period presentation. | ||||||||||||||||
Beginning January 1, 2013, all gross profit derived from the sales to third parties of the E-Commerce and retail stores segments is reported in income from operations of the E-Commerce and retail stores segments, respectively. | ||||||||||||||||
During the year ended March 31, 2015, the Company converted seven of its retail stores in China to partner retail stores, whereby, upon conversion, the stores became wholly-owned and operated by local, third-party companies within China. These conversions included the assignment of the lease and the sale of both the Company's on-hand inventory and store leasehold improvements to the operator. As of the date of conversion, partner retail stores sales are included in the UGG brand wholesale segment and not included in the retail stores segment. | ||||||||||||||||
The Company's other brands include Ahnu®, Hoka, MOZO® and TSUBO®. The results of operations for Hoka are included in the other brands segments beginning from the acquisition date of September 27, 2012. The wholesale operations of the Company's other brands are included as one reportable segment, "other brands wholesale", presented in the figures below. Business segment information is summarized as follows: | ||||||||||||||||
Year ended | Quarter ended (transition period) | Years ended | ||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | 12/31/12 | |||||||||||||
Net sales to external customers: | ||||||||||||||||
UGG wholesale | $ | 903,926 | $ | 83,271 | $ | 818,377 | $ | 819,256 | ||||||||
Teva wholesale | 116,931 | 45,283 | 109,334 | 108,591 | ||||||||||||
Sanuk wholesale | 102,690 | 28,793 | 94,420 | 89,804 | ||||||||||||
Other brands wholesale | 76,152 | 18,662 | 38,276 | 20,194 | ||||||||||||
E-Commerce | 233,070 | 38,584 | 169,534 | 130,592 | ||||||||||||
Retail stores | 384,288 | 80,123 | 326,677 | 245,961 | ||||||||||||
$ | 1,817,057 | $ | 294,716 | $ | 1,556,618 | $ | 1,414,398 | |||||||||
Income (loss) from operations: | ||||||||||||||||
UGG wholesale | $ | 269,489 | $ | 13,595 | $ | 224,738 | $ | 206,039 | ||||||||
Teva wholesale | 13,320 | 6,425 | 9,166 | 9,228 | ||||||||||||
Sanuk wholesale | 21,914 | 7,530 | 20,591 | 14,398 | ||||||||||||
Other brands wholesale | (9,838 | ) | (758 | ) | (9,807 | ) | (4,523 | ) | ||||||||
E-Commerce | 92,392 | 13,272 | 66,849 | 56,190 | ||||||||||||
Retail stores | 57,928 | 7,646 | 65,683 | 63,306 | ||||||||||||
Unallocated overhead | (220,786 | ) | (48,118 | ) | (169,323 | ) | (157,690 | ) | ||||||||
$ | 224,419 | $ | (408 | ) | $ | 207,897 | $ | 186,948 | ||||||||
Depreciation and amortization: | ||||||||||||||||
UGG wholesale | $ | 5,029 | $ | 137 | $ | 641 | $ | 622 | ||||||||
Teva wholesale | 94 | 33 | 641 | 515 | ||||||||||||
Sanuk wholesale | 6,969 | 1,769 | 7,761 | 8,838 | ||||||||||||
Other brands wholesale | 940 | 250 | 507 | 1,622 | ||||||||||||
E-Commerce | 949 | 242 | 744 | 839 | ||||||||||||
Retail stores | 20,139 | 4,967 | 21,117 | 12,073 | ||||||||||||
Unallocated overhead | 15,030 | 3,140 | 9,959 | 8,911 | ||||||||||||
$ | 49,150 | $ | 10,538 | $ | 41,370 | $ | 33,420 | |||||||||
Capital expenditures: | ||||||||||||||||
UGG wholesale | $ | 246 | $ | 119 | $ | 313 | $ | 314 | ||||||||
Teva wholesale | 51 | — | 63 | 326 | ||||||||||||
Sanuk wholesale | 487 | 2 | 91 | 448 | ||||||||||||
Other brands wholesale | 351 | 26 | 477 | 197 | ||||||||||||
E-Commerce | 644 | 8 | 676 | 347 | ||||||||||||
Retail stores | 18,484 | 3,549 | 34,993 | 34,004 | ||||||||||||
Unallocated overhead | 71,590 | 13,916 | 43,217 | 25,966 | ||||||||||||
$ | 91,853 | $ | 17,620 | $ | 79,830 | $ | 61,602 | |||||||||
Total assets from reportable segments: | ||||||||||||||||
UGG wholesale | $ | 194,720 | $ | 153,341 | $ | 314,122 | $ | 377,997 | ||||||||
Teva wholesale | 77,423 | 81,766 | 54,868 | 59,641 | ||||||||||||
Sanuk wholesale | 224,974 | 214,627 | 208,669 | 209,861 | ||||||||||||
Other brands wholesale | 53,634 | 41,281 | 34,315 | 29,446 | ||||||||||||
E-Commerce | 4,485 | 3,129 | 7,331 | 5,058 | ||||||||||||
Retail stores | 142,938 | 160,535 | 182,491 | 134,804 | ||||||||||||
$ | 698,174 | $ | 654,679 | $ | 801,796 | $ | 816,807 | |||||||||
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. | ||||||||||||||||
The assets allocable to each segment include accounts receivable, inventory, fixed assets, goodwill, other 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 consolidated balance sheets are as follows: | ||||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||||||
Total assets from reportable segments | $ | 698,174 | $ | 654,679 | $ | 801,796 | ||||||||||
Unallocated cash and cash equivalents | 225,143 | 245,088 | 237,125 | |||||||||||||
Unallocated deferred tax assets | 29,083 | 38,933 | 35,632 | |||||||||||||
Other unallocated corporate assets | 217,533 | 125,504 | 185,176 | |||||||||||||
Consolidated total assets | $ | 1,169,933 | $ | 1,064,204 | $ | 1,259,729 | ||||||||||
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: | ||||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||||||
US | $ | 196,513 | $ | 148,178 | $ | 136,726 | ||||||||||
All other countries* | 35,804 | 36,392 | 37,340 | |||||||||||||
Total | $ | 232,317 | $ | 184,570 | $ | 174,066 | ||||||||||
* No other country's long-lived assets comprised more than 10% of total long-lived assets as of March 31, 2015, March 31, 2014 and December 31, 2013. | ||||||||||||||||
The Company sells its products to customers throughout the US and to foreign customers located in Europe, Asia, Canada, Australia, and Latin America, among other regions. International sales were 35.9%, 32.7%, 33.0% and 31.2%, of the Company's total net sales for the year ended March 31, 2015, quarter ended March 31, 2014, and the years ended December 31, 2013 and 2012, respectively. For the year ended March 31, 2015, quarter ended March 31, 2014, and the years ended December 31, 2013 and 2012, no single foreign country comprised more than 10% of total 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 in the year ended March 31, 2015, quarter ended March 31, 2014, and the years ended December 31, 2013 and 2012. As of March 31, 2015, March 31, 2014 and December 31, 2013 the Company had one customer representing 11.8%, 11.8% and 11.4% of net trade accounts receivable, respectively. At March 31, 2015, March 31, 2014 and December 31, 2013 the Company had a second customer representing 11.0%, 11.4% and 19.7% of net trade accounts receivable, respectively. | ||||||||||||||||
The Company's production is concentrated at a limited number of independent contractor factories in Asia. 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 and the United Kingdom. We began using a new raw material, UGGpure, a wool woven into a durable backing, in some of our UGG products in 2013 and which we currently purchase from one supplier. The other materials used by the Company in production are sourced primarily in Asia. 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 (FDIC) 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. | ||||||||||||||||
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 March 31, 2015, the Company had experienced no loss or lack of access to cash in its operating accounts, invested cash and cash equivalents. The Company's cash and cash equivalents are as follows: | ||||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||||||
Money market fund accounts | $ | 127,900 | $ | 143,816 | $ | 154,105 | ||||||||||
Cash | 97,243 | 101,272 | 83,020 | |||||||||||||
Total cash and cash equivalents | $ | 225,143 | $ | 245,088 | $ | 237,125 | ||||||||||
Quarterly_Summary_of_Informati
Quarterly Summary of Information | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Summary of Information | Quarterly Summary of Information (Unaudited) | |||||||||||||||
Summarized unaudited quarterly financial data are as follows: | ||||||||||||||||
Fiscal year 2015 | ||||||||||||||||
6/30/14 | 9/30/14 | 12/31/14 | 3/31/15 | |||||||||||||
Net sales | $ | 211,469 | $ | 480,273 | $ | 784,678 | $ | 340,637 | ||||||||
Gross profit | 86,772 | 223,873 | 415,139 | 152,324 | ||||||||||||
Net (loss) income | (37,062 | ) | 40,730 | 156,706 | 1,406 | |||||||||||
Net (loss) income per share: | ||||||||||||||||
Basic | $ | (1.07 | ) | $ | 1.18 | $ | 4.54 | $ | 0.04 | |||||||
Diluted | $ | (1.07 | ) | $ | 1.17 | $ | 4.5 | $ | 0.04 | |||||||
Fiscal year 2013 | ||||||||||||||||
3/31/13 | 6/30/13 | 9/30/13 | 12/31/13 | |||||||||||||
Net sales | $ | 263,760 | $ | 170,085 | $ | 386,725 | $ | 736,048 | ||||||||
Gross profit | 123,559 | 69,832 | 166,892 | 376,200 | ||||||||||||
Net income (loss) | 1,007 | (29,275 | ) | 33,060 | 140,897 | |||||||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.03 | $ | (0.85 | ) | $ | 0.96 | $ | 4.08 | |||||||
Diluted | $ | 0.03 | $ | (0.85 | ) | $ | 0.95 | $ | 4.04 | |||||||
Schedule_II_VALUATION_AND_QUAL
Schedule II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
Schedule II VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
Year ended | Quarter ended (transition period) | Years ended | ||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | 12/31/12 | |||||||||||||
Allowance for doubtful accounts (1) | ||||||||||||||||
Balance at Beginning of Period | $ | 1,798 | $ | 2,039 | $ | 2,782 | $ | 1,719 | ||||||||
Additions | 1,107 | 594 | 125 | 2,128 | ||||||||||||
Deductions | 608 | 835 | 868 | 1,065 | ||||||||||||
Balance at End of Period | $ | 2,297 | $ | 1,798 | $ | 2,039 | $ | 2,782 | ||||||||
Allowance for sales discounts (2) | ||||||||||||||||
Balance at Beginning of Period | $ | 2,121 | $ | 3,540 | $ | 3,836 | $ | 4,629 | ||||||||
Additions | 68,620 | 978 | 46,989 | 35,759 | ||||||||||||
Deductions | 68,393 | 2,397 | 47,285 | 36,552 | ||||||||||||
Balance at End of Period | $ | 2,348 | $ | 2,121 | $ | 3,540 | $ | 3,836 | ||||||||
Allowance for sales returns (3) | ||||||||||||||||
Balance at Beginning of Period | $ | 8,586 | $ | 14,554 | $ | 12,905 | $ | 11,313 | ||||||||
Additions | 94,138 | 674 | 67,800 | 53,165 | ||||||||||||
Deductions | 93,192 | 6,642 | 66,151 | 51,573 | ||||||||||||
Balance at End of Period | $ | 9,532 | $ | 8,586 | $ | 14,554 | $ | 12,905 | ||||||||
Chargeback allowance (4) | ||||||||||||||||
Balance at Beginning of Period | $ | 3,064 | $ | 4,935 | $ | 5,563 | $ | 4,031 | ||||||||
Additions | 2,610 | 213 | 187 | 5,879 | ||||||||||||
Deductions | 1,633 | 2,084 | 815 | 4,347 | ||||||||||||
Balance at End of Period | $ | 4,041 | $ | 3,064 | $ | 4,935 | $ | 5,563 | ||||||||
-1 | The additions to the allowance for doubtful accounts represent the estimates of our bad debt expense based upon the factors for which we evaluate the collectability of our accounts receivable, with actual recoveries netted into additions. Deductions are the actual write offs of the receivables. | |||||||||||||||
-2 | The additions to the allowance for sales discounts represent estimates of discounts to be taken by our customers based upon the amount of available outstanding terms discounts in the year-end aging. Deductions are the actual discounts taken by our customers. | |||||||||||||||
-3 | The additions to the allowance for returns represent estimates of returns based upon our historical returns experience. Deductions are the actual returns of products. | |||||||||||||||
-4 | The additions to the chargeback allowance represent chargebacks taken in the respective year as well as an estimate of chargebacks related to sales in the respective reporting period that will be taken subsequent to the respective reporting period. Deductions are the actual chargebacks written off against outstanding accounts receivable. For the fiscal years 2015, 2013 and 2012 and the transition period quarter ended March 31, 2014, the Company has estimated the additions and deductions by netting each quarter's change and summing the four quarters for the respective year. | |||||||||||||||
See accompanying report of independent registered public accounting firm. |
The_Company_and_Summary_of_Sig1
The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Mar. 31, 2015 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Company and Basis of Presentation | The Company and Basis of Presentation | |
The consolidated financial statements include the accounts of Deckers Outdoor Corporation and its wholly-owned subsidiaries (collectively referred to as the "Company"). Accordingly, all references herein to Deckers Outdoor Corporation or "Deckers" include the consolidated results of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | ||
Deckers Outdoor Corporation 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. | ||
Prior to April 2, 2012, the Company owned 51% of a joint venture with an affiliate of Stella International Holdings Limited (Stella International) for the primary purpose of opening and operating retail stores for the UGG brand in China. Stella International is also one of the Company's major manufacturers in China. On April 2, 2012, the Company purchased the 49% noncontrolling interest owned by Stella International for a total purchase price of approximately $20,000. The Company accounted for this transaction as an acquisition of the remaining interest of an entity that had already been majority-owned by the Company. The purchase resulted in a reduction to additional paid in capital of $14,037 representing excess purchase price over the carrying amount of the noncontrolling interest. Prior to this purchase, the Company already had a controlling interest in this entity, and therefore, the subsidiary had been and continues to be consolidated with the Company's operations. | ||
In May 2012, the Company purchased a noncontrolling interest in the Hoka One One® (Hoka) brand, a privately held footwear company, which was accounted for as an equity method investment. In September 2012, the Company acquired the remaining ownership interest in Hoka. The acquisition of Hoka was not material to the Company’s consolidated financial statements and does 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 end from December 31 to March 31. The change was intended to better align the Company's planning, financial and reporting functions with the seasonality of the business. The 2015, 2013 and 2012 fiscal years ended on March 31, 2015, December 31, 2013 and December 31, 2012, respectively. The transition period was the quarter ended March 31, 2014 to coincide with the change in our fiscal year end. | ||
In July 2014, the Company acquired its UGG brand distributor that sold to retailers in Germany and now operates a wholesale business in Germany through the newly acquired subsidiary. The acquisition included certain intangible and tangible assets and the assumption of liabilities. The purchase price of the acquisition was not material to the Company’s consolidated financial statements. | ||
In April 2015, the Company acquired inventory and certain intangible assets, including the trade name related to the Koolaburra® brand, a sheepskin and wool based footwear brand. The purchase price of the acquisition was not material to the Company’s consolidated financial statements. | ||
We sell our brands through quality domestic retailers and international distributors and retailers, as well as directly to our end-user consumers through our E-Commerce business and retail stores. Independent third parties manufacture all of our products. | ||
Inventories | Inventories | |
Inventories, principally finished goods, are stated at the lower of cost (first-in, first-out) or market (net realizable value). Cost includes initial molds and tooling that are amortized over the life of the mold in cost of sales. Cost also includes shipping and handling fees and costs, which are subsequently expensed to cost of sales. Market values are determined by historical experience with discounted sales, industry trends, and the retail environment. | ||
Revenue Recognition | Revenue Recognition | |
The Company recognizes wholesale, E-Commerce, and international distributor revenue when products are shipped and retail revenue at the point of sale. All sales are recognized when the customer takes title and assumes risk of loss, collection of the related receivable is reasonably assured, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable. For wholesale and international distributor sales, allowances for estimated returns, discounts, chargebacks, and bad debts are provided for when related revenue is recorded. For E-Commerce sales, allowances for estimated returns and bad debts are provided for when related revenue is recorded. For retail sales, allowances for estimated returns are provided for when related revenue is recorded. Amounts billed for shipping and handling costs are recorded as a component of net sales, while the related costs paid to third-party shipping companies are recorded as a cost of sales. The Company presents revenue net of taxes collected from customers and remitted to governmental authorities. | ||
Accounting for Long-Lived Assets | Accounting for Long-Lived Assets | |
Other long-lived assets, such as machinery and equipment, leasehold improvements, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount exceeds the estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount exceeds the fair value of the asset. Intangible assets subject to amortization are amortized over their respective estimated useful lives to their estimated residual values. The Company uses the straight-line method for depreciation and amortization of long-lived assets, except for certain intangible assets where the Company can reliably determine the pattern in which the economic benefits of the assets will be consumed. | ||
At least quarterly, the Company evaluates whether any impairment triggering events, including the following, have occurred which would require such asset groups to be tested for impairment: | ||
• | A significant decrease in the market price of a long-lived asset group; | |
• | a significant adverse change in the extent or manner in which a long-lived asset group is being used or in its physical condition; | |
• | a significant adverse change in legal factors or in business climate that could affect the value of a long-lived asset group, including an adverse action or assessment by a regulator; | |
• | an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset group; | |
• | a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset group; or | |
• | a current expectation that, more likely than not, a long-lived asset group will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. | |
When an impairment triggering event has occurred, the Company tests for recoverability of the asset group's carrying value using estimates of undiscounted future cash flows based on the existing service potential of the applicable asset group. In determining the service potential of a long-lived asset group, the Company considers its remaining useful life, cash-flow generating capacity, and physical output capacity. These estimates include the undiscounted cash flows associated with future expenditures necessary to maintain the existing service potential. Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The Company assesses potential impairment of its retail group long-lived assets by comparing trailing twelve month (TTM) store cash flows to the current carrying value of the store's long-lived assets. Stores that have been opened for more than one year, or have otherwise been identified by management as having one or more indicators of impairment, with TTM cash flows less than the current carrying amount of the store's long-lived assets are then reviewed to determine if an impairment exists. An impairment loss, if any, would only reduce the carrying amount of long-lived assets in the group based on the fair value of the group assets. | ||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |
Intangible assets consist primarily of goodwill, trademarks, customer and distributor relationships, patents, lease rights, and non-compete agreements arising from the application of purchase accounting. Intangible assets with estimable useful lives are amortized and reviewed for impairment. Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually, as of December 31, except for the Teva trademarks and Sanuk goodwill, which are tested as of October 31. | ||
The assessment of goodwill impairment involves valuing the Company's reporting units that carry goodwill. Currently, the Company's reporting units are the same as the Company's operating segments. The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. The Company does not calculate the fair value of the reporting unit unless the Company determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. If the Company determines this, then the first quantitative step is a comparison of the fair value of the reporting unit with its carrying amount. If the fair value exceeds the carrying amount, goodwill is not impaired. If the fair value of the reporting unit is below the carrying amount, then a second step is performed to measure the amount of the impairment, if any. The test for impairment involves the use of estimates related to the fair values of the business operations with which goodwill is associated and the fair values of the intangible assets with indefinite lives. | ||
The Company also evaluates the fair values of other intangible assets with indefinite useful lives in relation to their carrying values. The Company first assesses qualitative factors to determine whether it is necessary to perform a quantitative assessment of the indefinite life intangible asset. The Company does not calculate the fair value of the indefinite life intangible unless the Company determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. If the Company concludes that it is more likely than not that its fair value is less than its carrying amount, then the Company compares the fair value of the indefinite life intangible to its carrying amount, and if the fair value of the indefinite life intangible exceeds its carrying amount, no impairment charge will be recognized. If the fair value of the indefinite life intangible is less than the carrying amount, the Company will record an impairment charge to write-down the intangible asset to its fair value. | ||
Determining fair value of goodwill and other intangible assets is highly subjective and requires the use of estimates and assumptions. The Company uses estimates including future revenues, royalty rates, discount rates, attrition rates, and market multiples, among others. The Company also considers the following factors: | ||
• | the assets' ability to continue to generate income from operations and positive cash flow in future periods; | |
• | changes in consumer demand or acceptance of the related brand names, products, or features associated with the assets; and | |
• | other considerations that could affect fair value or otherwise indicate potential impairment. | |
In addition, facts and circumstances could change, including further deterioration of general economic conditions or the retail environment, customers reducing orders in response to such conditions, and increased competition. These or other factors could result in changes to the calculation of fair value which could result in impairment of the Company's remaining goodwill and other intangible assets. Changes in any one or more of these estimates and assumptions could produce different financial results. | ||
Property and Equipment, Depreciation and Amortization | Property and Equipment, Depreciation and Amortization | |
Property and equipment has a useful life expectancy of at least one year. Property and equipment includes tangible, non-consumable items owned by the Company valued at or above $3, certain computer software costs and internal or external computer system consulting work valued at or above $3 as defined below, and portable electronic devices valued at or above $1.5. Tangible, non-consumable items below these amounts are expensed. The value includes the purchase price, as well as costs to acquire (shipping and handling), sales tax, install (excluding site preparation costs), secure, and prepare the item for its intended use. | ||
Depreciation of property and equipment is calculated using the straight-line method based on estimated useful lives. Machinery and equipment has estimated useful lives ranging from two to ten years, and furniture and fixtures has estimated useful lives ranging from three to seven years. Capitalized website costs, which are included in the machinery & equipment category, are immaterial to the Company's consolidated financial statements. Leasehold improvements are amortized to their residual value on the straight-line basis over their estimated economic useful lives or the lease term, whichever is shorter. Leasehold improvement lives range from one to fifteen years. Buildings are depreciated over 39 years. The Company allocates depreciation and amortization of property, plant, and equipment to cost of sales and selling, general and administrative (SG&A) expenses. The majority of the Company's depreciation and amortization is included in SG&A expenses due to the nature of its operations. Most of the Company's depreciation and amortization is from its warehouses, its corporate headquarters and its retail stores. The Company outsources all manufacturing; therefore, the amount allocated to cost of sales is not material. | ||
Fair Value Measurements | Fair Value Measurements | |
The fair values of the Company's cash and cash equivalents, trade accounts receivable, prepaid expenses, income tax receivable and other current assets, short-term borrowings, trade accounts payable, accrued payroll, other accrued expenses, income taxes payable and the value added tax 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 carrying values. 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 SG&A expenses. 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 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 an asset or liability. | |
Stock Compensation | Stock Compensation | |
All of the Company's stock compensation issuances are classified within stockholders' equity. Stock compensation cost is measured at the grant date based on the value of the award and is expensed ratably over the vesting period. The Company recognizes expense only for those awards that management deems probable of achieving the performance and service objectives. Determining the expense of share-based awards requires judgment, including estimating the percentage of awards that will be forfeited and probabilities of meeting the awards' performance criteria. If actual forfeitures differ significantly from the estimates or if probabilities change during a period, stock compensation expense and the Company's results of operations could be materially impacted. | ||
Nonqualified Deferred Compensation | Nonqualified Deferred Compensation | |
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. As of March 31, 2015, no such contribution has been approved by the Board . The value of the deferred compensation is recognized based on the fair value of the participants' accounts. The Company has established a rabbi trust for the purpose of supporting the benefits payable under this program. | ||
Use of Estimates | Use of Estimates | |
The preparation of the Company's 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 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 allowances, 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. | ||
Research and Development Costs | Research and Development Costs | |
All research and development costs are expensed as incurred. Such costs amounted to $20,872, $4,486, $19,257 and $15,617 for the year ended March 31, 2015, quarter ended March 31, 2014 and the years ended December 31, 2013 and 2012, respectively, and are included in SG&A expenses in the consolidated statements of comprehensive income (loss). | ||
Advertising, Marketing, and Promotion Costs | Advertising, Marketing, and Promotion Costs | |
Advertising production costs are expensed the first time the advertisement is run. All other costs of advertising, marketing, and promotion are expensed as incurred. | ||
Rent Expense | Rent Expense | |
Rent expense is recorded using the straight-line method to account for scheduled rental increases or rent holidays. Lease incentives for tenant improvement allowances are recorded as reductions of rent expense over the lease term. The rental payments under some of our retail store leases are based on a minimum rental plus a percentage of the store's sales in excess of stipulated amounts. Rent expenses are included SG&A expenses in the consolidated statements of comprehensive income (loss) | ||
Income Taxes | Income Taxes | |
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. | ||
The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company accounts for interest and penalties generated by income tax contingencies as interest expense and SG&A expenses, respectively in the consolidated statements of comprehensive income (loss). | ||
Net Income (Loss) per Share Attributable to Deckers Outdoor Corporation Common Stockholders | Net Income (Loss) per Share Attributable to Deckers Outdoor Corporation Common Stockholders | |
Basic net income (loss) per share represents net income (loss) attributable to Deckers Outdoor Corporation divided by the weighted-average number of common shares outstanding for the period. Diluted net income (loss) per share represents net income (loss) attributable to Deckers Outdoor Corporation divided by the weighted-average number of shares outstanding, including the dilutive impact of potential issuances of common stock. | ||
Foreign Currency Translation | Foreign Currency Translation | |
The Company considers the US dollar as its functional currency. The Company has certain wholly-owned foreign subsidiaries with functional currencies other than the US dollar. In most cases, the Company's foreign subsidiaries' local currency is the same as the designated functional currency. The Company holds a portion of its cash and other monetary assets and liabilities in currencies other than its subsidiary's functional currency, and is exposed to financial statement transaction gains and losses as a result of remeasuring the operating results and financial positions into their functional currency. The Company remeasures these monetary assets and liabilities using the exchange rate as of the end of the reporting period, which results in gains and losses that are included in SG&A expenses in the results of operations as incurred, except for gains and losses arising on intercompany foreign currency transactions that are of a long-term investment nature. In addition, the Company translates assets and liabilities of subsidiaries with reporting currencies other than US dollars into US dollars using the exchange rates at of the end of the reporting period, which results in financial statement translation gains and losses in other comprehensive income (loss)(OCI). | ||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities | |
The Company transacts business in various foreign currencies and has international sales and expenses denominated in foreign currencies, subjecting the Company to foreign currency risk. The Company may enter into foreign currency forward or option contracts, generally with maturities of 15 months or less, to reduce the volatility of cash flows primarily related to forecasted revenue denominated in certain foreign currencies. In addition, the Company utilizes foreign exchange forward and option contracts to mitigate foreign currency exchange rate risk associated with foreign currency-denominated assets and liabilities, primarily intercompany balances. The Company does not use foreign currency contracts for trading purposes. | ||
Certain of the Company's foreign currency forward contracts are designated cash flow hedges of forecasted intercompany sales and are subject to foreign currency exposures. These contracts allow the Company to sell Euros, British Pounds and Yen in exchange for US dollars at specified contract rates. Forward contracts are used to hedge forecasted intercompany sales over specific quarters. Changes in the fair value of these forward contracts designated as cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) within stockholders' equity, and are recognized in the consolidated statements of comprehensive income (loss) during the period which approximates the time the corresponding third-party sales occur. The Company may also enter into foreign exchange contracts that are not designated as hedging instruments for financial accounting purposes. These contracts are generally entered into to offset the gains and losses on certain intercompany balances until the expected time of repayment. Accordingly, any gains or losses resulting from changes in the fair value of the non-designated contracts are reported in SG&A expenses in the consolidated statements of comprehensive income (loss). The gains and losses on these contracts generally offset the gains and losses associated with the underlying foreign currency-denominated balances, which are also reported in SG&A expenses. See Note 8 for the impact of derivative instruments and hedging activities on the Company's consolidated financial statements. | ||
The Company records the assets or liabilities associated with derivative instruments and hedging activities at fair value based on Level 2 inputs in other current assets or other current liabilities, respectively, in the consolidated balance sheets. The Level 2 inputs consist of forward spot rates at the end of the reporting period. The accounting for gains and losses resulting from changes in fair value depends on the use of the derivative and whether it is designated and qualifies for hedge accounting. | ||
For all hedging relationships, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged transaction, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method used to measure ineffectiveness. The Company factors the nonperformance risk of the Company and the counterparty into the fair value measurements of its derivatives. The Company also formally assesses, both at the inception of the hedging relationship and on an ongoing basis, whether the derivatives that are used in hedging relationships are highly effective in offsetting changes in cash flows of hedged transactions. The Company assesses hedge effectiveness and measures hedge ineffectiveness at least quarterly. For derivative instruments that are designated and qualify as part of a cash flow hedging relationship, the effective portion of the gain or loss on the derivative is reported in OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. | ||
The Company discontinues hedge accounting prospectively when it determines that the derivative is no longer effective in offsetting cash flows attributable to the hedged risk, the derivative expires or is sold, terminated, or exercised, the cash flow hedge is designated because a forecasted transaction is not probable of occurring, or management determines to remove the designation of the cash flow hedge. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent changes in its fair value in earnings. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately in earnings gains and losses that were accumulated in OCI related to the hedging relationship. | ||
Comprehensive Income (Loss) | Comprehensive Income (Loss) | |
Comprehensive income (loss) is the total of net earnings and all other non-owner changes in equity. Except for net income (loss), foreign currency translation adjustments, and unrealized gains and losses on cash flow hedges, the Company does not have any transactions and other economic events that qualify as comprehensive income (loss). | ||
Business Segment Reporting | Business Segment Reporting | |
Management of the Company has determined its reportable segments are its strategic business units and it is by these segments that information is reported to the Chief Operating Decision Maker (CODM). The six reportable segments are the UGG, Teva, Sanuk and other brands wholesale divisions, the E-Commerce business, and the retail store business. The CODM is the Principal Executive Officer. The Company performs an annual analysis of the appropriateness of its reportable segments. Information related to the Company's business segments is summarized in Note 11. | ||
Cash Equivalents | Cash Equivalents | |
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. | ||
New Accounting Pronouncements | Recent Accounting Pronouncements | |
On May 28, 2014, FASB 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. Subsequent to March 31, 2015, the FASB proposed a one year deferral of the effective date of ASU No. 2014-09. | ||
Subsequent to March 31, 2015, FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires an entity to present debt issuance costs on the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. Prior to the issuance of the standard, debt issuance costs were required to be presented in the balance sheet as a deferred charge (i.e., an asset). This ASU is effective for the Company on April 1, 2016, with early adoption permitted. The adoption of this ASU will only change the presentation of prepaid expenses, other assets and short-term borrowings in the Company’s consolidated balance sheet. The Company is considering early adoption of this update during its fiscal year 2016. |
The_Company_and_Summary_of_Sig2
The Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||
Schedule of Company's financial assets and liabilities measured on a recurring basis at fair value | The tables below summarize the Company's financial liabilities and assets that are measured on a recurring basis at fair value: | |||||||||||||||
Fair Value at March 31, 2015 | Fair Value Measurement Using | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets (Liabilities) at fair value | ||||||||||||||||
Nonqualified deferred compensation asset | $ | 5,581 | $ | 5,581 | $ | — | $ | — | ||||||||
Nonqualified deferred compensation liability | $ | (5,581 | ) | $ | (5,581 | ) | $ | — | $ | — | ||||||
Designated derivatives liability | $ | (487 | ) | $ | — | $ | (487 | ) | $ | — | ||||||
Contingent consideration for acquisition of business | $ | (26,000 | ) | $ | — | $ | — | $ | (26,000 | ) | ||||||
Fair Value at March 31, 2014 | Fair Value Measurement Using | |||||||||||||||
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 | ) | ||||||
Fair Value at December 31, 2013 | Fair Value Measurement Using | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets (Liabilities) at fair value | ||||||||||||||||
Nonqualified deferred compensation asset | $ | 4,410 | $ | 4,410 | $ | — | $ | — | ||||||||
Nonqualified deferred compensation liability | $ | (4,410 | ) | $ | (4,410 | ) | $ | — | $ | — | ||||||
Designated derivatives liability | $ | (550 | ) | $ | — | $ | (550 | ) | $ | — | ||||||
Contingent consideration for acquisition of business | $ | (48,000 | ) | $ | — | $ | — | $ | (48,000 | ) | ||||||
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 (rounded): | |||||||||||||||
Beginning balance, January 1, 2013 | $ | 71,500 | ||||||||||||||
Payments | (25,400 | ) | ||||||||||||||
Change in fair value | 1,900 | |||||||||||||||
Balance, December 31, 2013 | $ | 48,000 | ||||||||||||||
Payments | (19,000 | ) | ||||||||||||||
Change in fair value | 1,000 | |||||||||||||||
Balance, March 31, 2014 | $ | 30,000 | ||||||||||||||
Payments | (500 | ) | ||||||||||||||
Change in fair value | (3,500 | ) | ||||||||||||||
Balance, March 31, 2015 | $ | 26,000 | ||||||||||||||
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: | |||||||||||||||
Year ended | Quarter ended (transition period) | Years ended | ||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | 12/31/12 | |||||||||||||
Weighted-average shares used in basic computation | 34,433,000 | 34,621,000 | 34,473,000 | 36,879,000 | ||||||||||||
Dilutive effect of stock-based awards* | 300,000 | — | 356,000 | 455,000 | ||||||||||||
Weighted-average shares used for diluted computation | 34,733,000 | 34,621,000 | 34,829,000 | 37,334,000 | ||||||||||||
*Excluded NSUs | — | 331,000 | — | 200,000 | ||||||||||||
*Excluded RSUs | 624,000 | 729,000 | 795,000 | 671,000 | ||||||||||||
*Excluded outside director RSAs | — | 6,000 | — | — | ||||||||||||
*Excluded SARs | 525,000 | 730,000 | 525,000 | 525,000 | ||||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Schedule of property and equipment | Property and equipment is summarized as follows: | |||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||
Land | $ | 25,543 | $ | 25,531 | $ | 19,954 | ||||||
Buildings | 38,841 | 36,387 | — | |||||||||
Machinery and equipment | 158,136 | 98,035 | 84,941 | |||||||||
Furniture and fixtures | 36,751 | 31,085 | 25,961 | |||||||||
Leasehold improvements | 102,048 | 96,622 | 142,683 | |||||||||
361,319 | 287,660 | 273,539 | ||||||||||
Less accumulated depreciation and amortization | 129,002 | 103,090 | 99,473 | |||||||||
Net property and equipment | $ | 232,317 | $ | 184,570 | $ | 174,066 | ||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
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: | |||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||
Intangibles subject to amortization | ||||||||||||
Weighted-Average Amortization Period | 13 years | 14 years | 14 years | |||||||||
Gross Carrying Amount | $ | 109,604 | $ | 101,982 | $ | 101,963 | ||||||
Accumulated Amortization | 37,316 | 26,026 | 24,140 | |||||||||
Net Carrying Amount | 72,288 | 75,956 | 77,823 | |||||||||
Intangibles not subject to amortization | ||||||||||||
Goodwill | 127,934 | 127,934 | 128,725 | |||||||||
Trademarks | 15,455 | 15,455 | 15,455 | |||||||||
Total goodwill and other intangible assets | $ | 215,677 | $ | 219,345 | $ | 222,003 | ||||||
Schedule of changes in goodwill | Changes in the Company's goodwill are summarized as follows: | |||||||||||
Goodwill, | Accumulated | Goodwill, Net | ||||||||||
Gross | Impairment | |||||||||||
Balance at January 1, 2013 | $ | 144,556 | $ | (15,831 | ) | $ | 128,725 | |||||
Changes related to additions, impairments and other adjustments | — | — | — | |||||||||
Balance at December 31, 2013 | 144,556 | (15,831 | ) | 128,725 | ||||||||
Adjustments related to prior acquisitions | (791 | ) | — | (791 | ) | |||||||
Balance at March 31, 2014 | 143,765 | (15,831 | ) | 127,934 | ||||||||
Changes related to additions, impairments and other adjustments | — | — | — | |||||||||
Balance at March 31, 2015 | $ | 143,765 | $ | (15,831 | ) | $ | 127,934 | |||||
Schedule of total goodwill by segment | The Company's goodwill by segment is as follows: | |||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||
UGG brand | $ | 6,101 | $ | 6,101 | $ | 6,101 | ||||||
Sanuk brand | 113,944 | 113,944 | 113,944 | |||||||||
Other brands | 7,889 | 7,889 | 8,680 | |||||||||
Total | $ | 127,934 | $ | 127,934 | $ | 128,725 | ||||||
Schedule of expected amortization expense on existing intangible assets | The following table summarizes the expected amortization expense on existing intangible assets, excluding indefinite-lived intangible assets of $8,044 and trademarks of $15,455, for the next five years: | |||||||||||
Year ending March 31, | ||||||||||||
2016 | $ | 9,358 | ||||||||||
2017 | 8,361 | |||||||||||
2018 | 6,278 | |||||||||||
2019 | 5,621 | |||||||||||
2020 | 3,813 | |||||||||||
Thereafter | 30,813 | |||||||||||
$ | 64,244 | |||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||
Components of income taxes | Components of income tax expense (benefit) are as follows: | |||||||||||||||
Year ended | Quarter ended (transition period) | Years ended | ||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | 12/31/12 | |||||||||||||
Current: | ||||||||||||||||
Federal | $ | 35,459 | $ | (572 | ) | $ | 51,058 | $ | 50,911 | |||||||
State | 6,861 | (4 | ) | 6,252 | 6,482 | |||||||||||
Foreign | 7,069 | 5,255 | 6,650 | 3,368 | ||||||||||||
Total | 49,389 | 4,679 | 63,960 | 60,761 | ||||||||||||
Deferred: | ||||||||||||||||
Federal | 8,234 | 1,669 | (2,580 | ) | (6,083 | ) | ||||||||||
State | 624 | (1 | ) | (209 | ) | 414 | ||||||||||
Foreign | 1,112 | (4,404 | ) | (1,303 | ) | 12 | ||||||||||
Total | 9,970 | (2,736 | ) | (4,092 | ) | (5,657 | ) | |||||||||
Income tax expense | $ | 59,359 | $ | 1,943 | $ | 59,868 | $ | 55,104 | ||||||||
Actual income taxes differed from that obtained by applying the statutory federal income tax rate to income before income taxes | Actual income taxes differed from that obtained by applying the statutory federal income tax rate to income before income taxes as follows: | |||||||||||||||
Year ended | Quarter ended (transition period) | Years ended | ||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | 12/31/12 | |||||||||||||
Computed expected income taxes | $ | 77,399 | $ | (260 | ) | $ | 71,945 | $ | 64,282 | |||||||
State income taxes, net of federal income tax benefit | 3,564 | 90 | 4,435 | 3,562 | ||||||||||||
Foreign rate differential | (25,535 | ) | 1,904 | (16,399 | ) | (12,908 | ) | |||||||||
Unrecognized tax benefits | 3,566 | — | — | — | ||||||||||||
Other | 365 | 209 | (113 | ) | 168 | |||||||||||
$ | 59,359 | $ | 1,943 | $ | 59,868 | $ | 55,104 | |||||||||
Tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are presented below: | |||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||||||
Deferred tax assets (liabilities), current: | ||||||||||||||||
Uniform capitalization adjustment to inventory | $ | 4,040 | $ | 4,114 | $ | 5,492 | ||||||||||
Bad debt and other reserves | 8,984 | 9,901 | 10,655 | |||||||||||||
State taxes | 482 | (1,739 | ) | 508 | ||||||||||||
Prepaid expenses | (3,546 | ) | (2,217 | ) | (2,193 | ) | ||||||||||
Accrued bonus | 4,120 | 2,093 | 5,071 | |||||||||||||
Foreign currency hedge | 434 | 305 | 348 | |||||||||||||
Net operating loss carry forwards | — | 9,414 | — | |||||||||||||
Other | (448 | ) | — | — | ||||||||||||
Total deferred tax assets, current | 14,066 | 21,871 | 19,881 | |||||||||||||
Deferred tax assets (liabilities), noncurrent: | ||||||||||||||||
Amortization and impairment of intangible assets | 1,004 | 5,267 | 4,603 | |||||||||||||
Depreciation of property and equipment | (6,148 | ) | (4,833 | ) | (6,034 | ) | ||||||||||
Share-based compensation | 12,044 | 10,638 | 11,226 | |||||||||||||
Foreign currency translation | 720 | 382 | 667 | |||||||||||||
Deferred rent | 4,885 | 4,290 | 4,028 | |||||||||||||
Acquisition costs | 764 | 756 | 755 | |||||||||||||
Other | 1,327 | 128 | — | |||||||||||||
Net operating loss carry forwards | 421 | 434 | 506 | |||||||||||||
Total deferred tax assets, noncurrent | 15,017 | 17,062 | 15,751 | |||||||||||||
Net deferred tax assets | $ | 29,083 | $ | 38,933 | $ | 35,632 | ||||||||||
Reconciliation of the beginning and ending amounts of total unrecognized tax benefits | A reconciliation of the beginning and ending amounts of total unrecognized tax benefits is as follows: | |||||||||||||||
Balance at January 1, 2013 | $ | — | ||||||||||||||
Gross change related to current and prior years' tax positions | — | |||||||||||||||
Balance, December 31, 2013 | $ | — | ||||||||||||||
Gross change related to current and prior years' tax positions | — | |||||||||||||||
Balance, March 31, 2014 | $ | — | ||||||||||||||
Gross increase related to current year tax positions | 1,293 | |||||||||||||||
Gross increase related to prior year tax positions | 3,374 | |||||||||||||||
Balance, March 31, 2015 | $ | 4,667 | ||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||
Schedule of future minimum commitments under the operating lease agreements | Future minimum commitments under the lease agreements are as follows: | |||||||||||||||
Year ending March 31, | ||||||||||||||||
2016 | $ | 53,664 | ||||||||||||||
2017 | 55,325 | |||||||||||||||
2018 | 49,357 | |||||||||||||||
2019 | 39,293 | |||||||||||||||
2020 | 32,809 | |||||||||||||||
Thereafter | 118,451 | |||||||||||||||
$ | 348,899 | |||||||||||||||
Component of total rental expense | The following schedule shows the composition of total rental expense. | |||||||||||||||
Year ended | Quarter ended (transition period) | Years ended | ||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | 12/31/12 | |||||||||||||
Minimum rentals | $ | 61,363 | $ | 14,260 | $ | 47,871 | $ | 37,270 | ||||||||
Contingent rentals | 14,707 | 3,099 | 12,318 | 9,366 | ||||||||||||
$ | 76,070 | $ | 17,359 | $ | 60,189 | $ | 46,636 | |||||||||
Schedule of future commitments under purchase orders and other agreements | The contracts do not permit net settlement. Minimum commitments for these contracts as of March 31, 2015 were as follows: | |||||||||||||||
Contract | Final | Advance | Total | Remaining | Remaining | |||||||||||
Effective Date | Target Date | Deposit | Minimum | Deposit | Commitment, | |||||||||||
Commitment | Net of Deposit | |||||||||||||||
October 2011 | September 2015 | $50,000 | $286,000 | $13,783 | — | |||||||||||
October 2014 | September 2015 | — | $51,240 | — | $32,487 | |||||||||||
Sep-14 | Sep-15 | — | $47,960 | — | $15,434 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||
Summary of stock compensation amounts recognized in the consolidated statements of comprehensive income | The table below summarizes stock compensation amounts recognized in the consolidated statements of comprehensive income (loss): | |||||||||||||||
Year ended | Quarter ended (transition period) | Years ended | ||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | 12/31/12 | |||||||||||||
Compensation expense recorded for: | ||||||||||||||||
NSUs | $ | 9,295 | $ | 1,863 | $ | 10,545 | $ | 11,849 | ||||||||
SARs | 1,846 | 381 | 1,302 | 1,501 | ||||||||||||
RSUs | 1,323 | 354 | 287 | 231 | ||||||||||||
Directors' shares | 1,060 | 267 | 1,002 | 1,080 | ||||||||||||
Total compensation expense | 13,524 | 2,865 | 13,136 | 14,661 | ||||||||||||
Income tax benefit recognized | (5,143 | ) | (1,082 | ) | (4,950 | ) | (5,573 | ) | ||||||||
Net compensation expense | $ | 8,381 | $ | 1,783 | $ | 8,186 | $ | 9,088 | ||||||||
Summary of the total remaining unrecognized compensation cost related to nonvested awards, that are considered probable of vesting and the weighted-average period over which the cost is expected to be recognized | The table below summarizes the total remaining unrecognized compensation cost related to nonvested awards that are considered probable of vesting as of March 31, 2015, and the weighted-average period over which the cost is expected to be recognized as of March 31, 2015: | |||||||||||||||
Unrecognized | Weighted-Average | |||||||||||||||
Compensation | Remaining | |||||||||||||||
Cost | Vesting Period (Years) | |||||||||||||||
NSUs | $ | 13,917 | 1.5 | |||||||||||||
SARs | 1,355 | 0.9 | ||||||||||||||
RSUs | 6,317 | 1.5 | ||||||||||||||
Total | $ | 21,589 | ||||||||||||||
Summary of Nonvested Stock Units Issued Under the 2006 Plan | ||||||||||||||||
Number of | Weighted- | |||||||||||||||
Shares | Average | |||||||||||||||
Grant-Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Nonvested at January 1, 2012 | 677,000 | $ | 48.14 | |||||||||||||
Granted | 209,000 | 63.18 | ||||||||||||||
Vested | (297,000 | ) | 35.9 | |||||||||||||
Forfeited | (18,000 | ) | 63.68 | |||||||||||||
Cancelled* | (200,000 | ) | 62.17 | |||||||||||||
Nonvested at December 31, 2012 | 371,000 | $ | 58.51 | |||||||||||||
Granted | 304,000 | 57.3 | ||||||||||||||
Vested | (315,000 | ) | 53.19 | |||||||||||||
Forfeited | (20,000 | ) | 61.08 | |||||||||||||
Nonvested at December 31, 2013 | 340,000 | $ | 62.23 | |||||||||||||
Granted | — | — | ||||||||||||||
Vested | (2,000 | ) | 58.11 | |||||||||||||
Forfeited | (7,000 | ) | 64.15 | |||||||||||||
Nonvested at March 31, 2014 | 331,000 | $ | 62.21 | |||||||||||||
Granted | 196,000 | 82.34 | ||||||||||||||
Vested | (142,000 | ) | 68.39 | |||||||||||||
Forfeited | (30,000 | ) | 64.18 | |||||||||||||
Cancelled* | (15,000 | ) | 84.04 | |||||||||||||
Nonvested at March 31, 2015 | 340,000 | $ | 70.11 | |||||||||||||
* Nonvested Stock Units cancelled during the period represent awards granted whose performance criteria were not met. | ||||||||||||||||
Summary of Stock Appreciation Rights Issued Under the 2006 Plan | ||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | |||||||||||||
SARs | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | |||||||||||||||
Term | ||||||||||||||||
(Years) | ||||||||||||||||
Outstanding at January 1, 2012 | 760,000 | $ | 26.73 | 8.8 | $ | 37,118 | ||||||||||
Granted | — | — | ||||||||||||||
Exercised | (15,000 | ) | 26.73 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Outstanding at December 31, 2012 | 745,000 | $ | 26.73 | 7.9 | $ | 10,087 | ||||||||||
Granted | — | — | ||||||||||||||
Exercised | (15,000 | ) | 26.73 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Outstanding at December 31, 2013 | 730,000 | $ | 26.73 | 6.9 | $ | 42,143 | ||||||||||
Granted | — | — | ||||||||||||||
Exercised | — | — | ||||||||||||||
Forfeited | — | — | ||||||||||||||
Outstanding at March 31, 2014 | 730,000 | $ | 26.73 | 6.7 | $ | 38,690 | ||||||||||
Granted | — | — | ||||||||||||||
Exercised | (15,000 | ) | 26.73 | |||||||||||||
Forfeited | — | — | ||||||||||||||
Outstanding at March 31, 2015 | 715,000 | $ | 26.73 | 5.8 | $ | 32,990 | ||||||||||
Exercisable at March 31, 2015 | 190,000 | $ | 26.73 | 2.1 | $ | 8,767 | ||||||||||
Expected to vest and exercisable at March 31, 2015 | 702,000 | $ | 26.73 | 5.8 | $ | 32,396 | ||||||||||
Summary of Restricted Stock Units Issued Under the 2006 Plan | ||||||||||||||||
Number of | Weighted- | |||||||||||||||
Shares | Average | |||||||||||||||
Grant-Date | ||||||||||||||||
Fair Value | ||||||||||||||||
Nonvested at January 1, 2012 | 319,000 | $ | 70.15 | |||||||||||||
Granted | 352,000 | 56.12 | ||||||||||||||
Vested | — | — | ||||||||||||||
Forfeited | — | — | ||||||||||||||
Nonvested at December 31, 2012 | 671,000 | $ | 62.8 | |||||||||||||
Granted | 156,000 | 84.52 | ||||||||||||||
Vested | — | — | ||||||||||||||
Forfeited | (32,000 | ) | 63.69 | |||||||||||||
Nonvested at December 31, 2013 | 795,000 | $ | 67.03 | |||||||||||||
Granted | — | — | ||||||||||||||
Vested | — | — | ||||||||||||||
Forfeited | (66,000 | ) | 67.23 | |||||||||||||
Nonvested at March 31, 2014 | 729,000 | $ | 67.01 | |||||||||||||
Granted | 160,000 | 98.29 | ||||||||||||||
Vested | — | — | ||||||||||||||
Forfeited | (35,000 | ) | 78.39 | |||||||||||||
Cancelled | (230,000 | ) | 82.09 | |||||||||||||
Nonvested at March 31, 2015 | 624,000 | $ | 68.82 | |||||||||||||
Foreign_Currency_Exchange_Cont1
Foreign Currency Exchange Contracts and Hedging (Tables) | 12 Months Ended | |||||
Mar. 31, 2015 | ||||||
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 tables summarize the effect of derivative instruments on the consolidated financial statements: | |||||
Year ended | Quarter ended (transition period) | Year ended | ||||
3/31/15 | 3/31/14 | 12/31/13 | ||||
Derivatives in Designated Cash Flow Hedging Relationships | Foreign Exchange Contracts | Foreign Exchange Contracts | Foreign Exchange Contracts | |||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $1,556 | ($47) | ($779) | |||
Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | Net Sales | Net Sales | Net Sales | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $1,226 | ($283) | $17 | |||
Location of Amount Excluded from Effectiveness Testing | SG&A expenses | SG&A expenses | SG&A expenses | |||
Gain (Loss) from Amount Excluded from Effectiveness Testing | ($69) | ($31) | ($11) | |||
Schedule of location and amount of gains and losses related to derivatives not designated as hedging instruments reported in consolidated financial statements | ||||||
Year ended | Quarter ended (transition period) | Year ended | ||||
3/31/15 | 3/31/14 | 12/31/13 | ||||
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contracts | Foreign Exchange Contracts | Foreign Exchange Contracts | |||
Location of Gain (Loss) Recognized in Income on Derivatives | SG&A expenses | SG&A expenses | SG&A expenses | |||
Amount of Gain Recognized in Income on Derivatives | $6,383 | $— | $728 |
Transition_Period_Tables
Transition Period (Tables) | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Transition Period [Abstract] | ||||||||
Transition Period Statement of Income | The following table provides certain unaudited comparative financial information for the same period of the prior year. | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 (unaudited) | |||||||
Net sales | $ | 294,716 | $ | 263,760 | ||||
Cost of sales | 150,456 | 140,201 | ||||||
Gross profit | 144,260 | 123,559 | ||||||
Selling, general and administrative expenses | 144,668 | 120,907 | ||||||
(Loss) income from operations | (408 | ) | 2,652 | |||||
Other expense (income), net: | ||||||||
Interest income | (65 | ) | (26 | ) | ||||
Interest expense | 516 | 339 | ||||||
Other, net | (117 | ) | (171 | ) | ||||
Total other expense | 334 | 142 | ||||||
(Loss) income before income taxes | (742 | ) | 2,510 | |||||
Income tax expense | 1,943 | 1,503 | ||||||
Net (loss) income | (2,685 | ) | 1,007 | |||||
Other comprehensive income (loss), net of tax: | ||||||||
Unrealized (loss) income on foreign currency hedging | (273 | ) | 1,530 | |||||
Foreign currency translation adjustment | 873 | (674 | ) | |||||
Total other comprehensive income | 600 | 856 | ||||||
Comprehensive (loss) income | $ | (2,085 | ) | $ | 1,863 | |||
Net (loss) income per share: | ||||||||
Basic | $ | (0.08 | ) | $ | 0.03 | |||
Diluted | $ | (0.08 | ) | $ | 0.03 | |||
Weighted-average common shares outstanding: | ||||||||
Basic | 34,621,000 | 34,404,000 | ||||||
Diluted | 34,621,000 | 34,788,000 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||||||||||
Components of accumulated other comprehensive income | Accumulated balances of the components within accumulated other comprehensive loss are as follows: | |||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||
Cumulative foreign currency translation adjustment | $ | (20,159 | ) | $ | (1,284 | ) | $ | (2,157 | ) | |||
Unrealized loss on foreign currency hedging, net of tax | (309 | ) | (759 | ) | (486 | ) | ||||||
Accumulated other comprehensive loss | $ | (20,468 | ) | $ | (2,043 | ) | $ | (2,643 | ) |
Business_Segments_Concentratio1
Business Segments, Concentration of Business, and Credit Risk and Significant Customers (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of business segments information | Business segment information is summarized as follows: | |||||||||||||||
Year ended | Quarter ended (transition period) | Years ended | ||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | 12/31/12 | |||||||||||||
Net sales to external customers: | ||||||||||||||||
UGG wholesale | $ | 903,926 | $ | 83,271 | $ | 818,377 | $ | 819,256 | ||||||||
Teva wholesale | 116,931 | 45,283 | 109,334 | 108,591 | ||||||||||||
Sanuk wholesale | 102,690 | 28,793 | 94,420 | 89,804 | ||||||||||||
Other brands wholesale | 76,152 | 18,662 | 38,276 | 20,194 | ||||||||||||
E-Commerce | 233,070 | 38,584 | 169,534 | 130,592 | ||||||||||||
Retail stores | 384,288 | 80,123 | 326,677 | 245,961 | ||||||||||||
$ | 1,817,057 | $ | 294,716 | $ | 1,556,618 | $ | 1,414,398 | |||||||||
Income (loss) from operations: | ||||||||||||||||
UGG wholesale | $ | 269,489 | $ | 13,595 | $ | 224,738 | $ | 206,039 | ||||||||
Teva wholesale | 13,320 | 6,425 | 9,166 | 9,228 | ||||||||||||
Sanuk wholesale | 21,914 | 7,530 | 20,591 | 14,398 | ||||||||||||
Other brands wholesale | (9,838 | ) | (758 | ) | (9,807 | ) | (4,523 | ) | ||||||||
E-Commerce | 92,392 | 13,272 | 66,849 | 56,190 | ||||||||||||
Retail stores | 57,928 | 7,646 | 65,683 | 63,306 | ||||||||||||
Unallocated overhead | (220,786 | ) | (48,118 | ) | (169,323 | ) | (157,690 | ) | ||||||||
$ | 224,419 | $ | (408 | ) | $ | 207,897 | $ | 186,948 | ||||||||
Depreciation and amortization: | ||||||||||||||||
UGG wholesale | $ | 5,029 | $ | 137 | $ | 641 | $ | 622 | ||||||||
Teva wholesale | 94 | 33 | 641 | 515 | ||||||||||||
Sanuk wholesale | 6,969 | 1,769 | 7,761 | 8,838 | ||||||||||||
Other brands wholesale | 940 | 250 | 507 | 1,622 | ||||||||||||
E-Commerce | 949 | 242 | 744 | 839 | ||||||||||||
Retail stores | 20,139 | 4,967 | 21,117 | 12,073 | ||||||||||||
Unallocated overhead | 15,030 | 3,140 | 9,959 | 8,911 | ||||||||||||
$ | 49,150 | $ | 10,538 | $ | 41,370 | $ | 33,420 | |||||||||
Capital expenditures: | ||||||||||||||||
UGG wholesale | $ | 246 | $ | 119 | $ | 313 | $ | 314 | ||||||||
Teva wholesale | 51 | — | 63 | 326 | ||||||||||||
Sanuk wholesale | 487 | 2 | 91 | 448 | ||||||||||||
Other brands wholesale | 351 | 26 | 477 | 197 | ||||||||||||
E-Commerce | 644 | 8 | 676 | 347 | ||||||||||||
Retail stores | 18,484 | 3,549 | 34,993 | 34,004 | ||||||||||||
Unallocated overhead | 71,590 | 13,916 | 43,217 | 25,966 | ||||||||||||
$ | 91,853 | $ | 17,620 | $ | 79,830 | $ | 61,602 | |||||||||
Total assets from reportable segments: | ||||||||||||||||
UGG wholesale | $ | 194,720 | $ | 153,341 | $ | 314,122 | $ | 377,997 | ||||||||
Teva wholesale | 77,423 | 81,766 | 54,868 | 59,641 | ||||||||||||
Sanuk wholesale | 224,974 | 214,627 | 208,669 | 209,861 | ||||||||||||
Other brands wholesale | 53,634 | 41,281 | 34,315 | 29,446 | ||||||||||||
E-Commerce | 4,485 | 3,129 | 7,331 | 5,058 | ||||||||||||
Retail stores | 142,938 | 160,535 | 182,491 | 134,804 | ||||||||||||
$ | 698,174 | $ | 654,679 | $ | 801,796 | $ | 816,807 | |||||||||
Schedule of reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | Reconciliations of total assets from reportable segments to the consolidated balance sheets are as follows: | |||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||||||
Total assets from reportable segments | $ | 698,174 | $ | 654,679 | $ | 801,796 | ||||||||||
Unallocated cash and cash equivalents | 225,143 | 245,088 | 237,125 | |||||||||||||
Unallocated deferred tax assets | 29,083 | 38,933 | 35,632 | |||||||||||||
Other unallocated corporate assets | 217,533 | 125,504 | 185,176 | |||||||||||||
Consolidated total assets | $ | 1,169,933 | $ | 1,064,204 | $ | 1,259,729 | ||||||||||
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: | |||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||||||
US | $ | 196,513 | $ | 148,178 | $ | 136,726 | ||||||||||
All other countries* | 35,804 | 36,392 | 37,340 | |||||||||||||
Total | $ | 232,317 | $ | 184,570 | $ | 174,066 | ||||||||||
* No other country's long-lived assets comprised more than 10% of total long-lived assets as of March 31, 2015, March 31, 2014 and December 31, 2013. | ||||||||||||||||
Schedule of the Company's cash and cash equivalents | The Company's cash and cash equivalents are as follows: | |||||||||||||||
3/31/15 | 3/31/14 | 12/31/13 | ||||||||||||||
Money market fund accounts | $ | 127,900 | $ | 143,816 | $ | 154,105 | ||||||||||
Cash | 97,243 | 101,272 | 83,020 | |||||||||||||
Total cash and cash equivalents | $ | 225,143 | $ | 245,088 | $ | 237,125 | ||||||||||
Quarterly_Summary_of_Informati1
Quarterly Summary of Information (Tables) | 12 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Summary of unaudited quarterly financial data | Summarized unaudited quarterly financial data are as follows: | |||||||||||||||
Fiscal year 2015 | ||||||||||||||||
6/30/14 | 9/30/14 | 12/31/14 | 3/31/15 | |||||||||||||
Net sales | $ | 211,469 | $ | 480,273 | $ | 784,678 | $ | 340,637 | ||||||||
Gross profit | 86,772 | 223,873 | 415,139 | 152,324 | ||||||||||||
Net (loss) income | (37,062 | ) | 40,730 | 156,706 | 1,406 | |||||||||||
Net (loss) income per share: | ||||||||||||||||
Basic | $ | (1.07 | ) | $ | 1.18 | $ | 4.54 | $ | 0.04 | |||||||
Diluted | $ | (1.07 | ) | $ | 1.17 | $ | 4.5 | $ | 0.04 | |||||||
Fiscal year 2013 | ||||||||||||||||
3/31/13 | 6/30/13 | 9/30/13 | 12/31/13 | |||||||||||||
Net sales | $ | 263,760 | $ | 170,085 | $ | 386,725 | $ | 736,048 | ||||||||
Gross profit | 123,559 | 69,832 | 166,892 | 376,200 | ||||||||||||
Net income (loss) | 1,007 | (29,275 | ) | 33,060 | 140,897 | |||||||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.03 | $ | (0.85 | ) | $ | 0.96 | $ | 4.08 | |||||||
Diluted | $ | 0.03 | $ | (0.85 | ) | $ | 0.95 | $ | 4.04 | |||||||
The_Company_and_Summary_of_Sig3
The Company and Summary of Significant Accounting Policies - Joint Venture (Details) (USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Apr. 02, 2012 |
Ownership interest acquired | |
Ownership interest acquired in joint venture (as a percent) | 49.00% |
Stella International Holdings Limited | |
Ownership interest acquired | |
Ownership interest in joint venture held by company (as a percent) | 51.00% |
Purchase price of ownership interest acquired | $20,000 |
Reduction in additional paid in capital | $14,037 |
The_Company_and_Summary_of_Sig4
The Company and Summary of Significant Accounting Policies - Long-Lived Assets (Details) (USD $) | 12 Months Ended |
Mar. 31, 2015 | |
Depreciation and amortization | |
Long-lived assets valuation, period of cash flows used in numerator | 12 months |
Tangibles, Non-consumable Equipment | |
Depreciation and amortization | |
Property and equipment, minimum value capitalized | 3,000 |
Computer Software and Computer Related Consulting Costs | |
Depreciation and amortization | |
Property and equipment, minimum value capitalized | 3,000 |
Portable Electronic Devices | |
Depreciation and amortization | |
Property and equipment, minimum value capitalized | 1,500 |
Building | |
Depreciation and amortization | |
Estimated useful lives, low end of the range (in years) | 39 years |
Minimum | |
Depreciation and amortization | |
Estimated useful lives, low end of the range (in years) | 1 year |
Minimum | Machinery and equipment | |
Depreciation and amortization | |
Estimated useful lives, low end of the range (in years) | 2 years |
Minimum | Furniture and fixtures | |
Depreciation and amortization | |
Estimated useful lives, low end of the range (in years) | 3 years |
Minimum | Leasehold improvements | |
Depreciation and amortization | |
Estimated useful lives, low end of the range (in years) | 1 year |
Maximum | Machinery and equipment | |
Depreciation and amortization | |
Estimated useful lives, low end of the range (in years) | 10 years |
Maximum | Furniture and fixtures | |
Depreciation and amortization | |
Estimated useful lives, low end of the range (in years) | 7 years |
Maximum | Leasehold improvements | |
Depreciation and amortization | |
Estimated useful lives, low end of the range (in years) | 15 years |
The_Company_and_Summary_of_Sig5
The Company and Summary of Significant Accounting Policies - Fair Value of Financial Liabilities and Assets Measured on a Recurring Basis (Details) (Recurring basis, USD $) | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Assets (Liabilities) at fair value | |||
Nonqualified deferred compensation asset | $5,581 | $4,534 | $4,410 |
Nonqualified deferred compensation liability | -5,581 | -4,534 | -4,410 |
Designated derivatives liability | -487 | -832 | -550 |
Contingent consideration for acquisition of business | -26,000 | -30,000 | -48,000 |
Level 1 | |||
Assets (Liabilities) at fair value | |||
Nonqualified deferred compensation asset | 5,581 | 4,534 | 4,410 |
Nonqualified deferred compensation liability | -5,581 | -4,534 | -4,410 |
Level 2 | |||
Assets (Liabilities) at fair value | |||
Designated derivatives liability | -487 | -832 | -550 |
Level 3 | |||
Assets (Liabilities) at fair value | |||
Contingent consideration for acquisition of business | ($26,000) | ($30,000) | ($48,000) |
The_Company_and_Summary_of_Sig6
The Company and Summary of Significant Accounting Policies - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2014 |
Contingent consideration | |||||||
Total maximum payout | $2,000 | ||||||
Approximate amount paid | 500 | 500 | |||||
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 | -500 | ||||||
Change in fair value | -3,500 | ||||||
Balance at the end of the period | 30,000 | ||||||
Research and Development Costs | |||||||
Research and development costs incurred | 4,486 | 20,872 | 19,257 | 15,617 | |||
Advertising, Marketing, and Promotion Costs | |||||||
Advertising, marketing, and promotion expenses | 21,158 | 111,162 | 86,510 | 78,528 | |||
Prepaid advertising, marketing, and promotion expenses | 209 | 1,899 | 212 | ||||
Income Taxes | |||||||
Minimum percentage used for determination of recognition of effect of income tax position if position more likely than not of being sustained | 50.00% | ||||||
Weighted-average common shares outstanding: | |||||||
Basic (in shares) | 34,621 | 34,404 | 34,433 | 34,473 | 36,879 | ||
Dilutive effect of stock based award (in shares) | 0 | 300 | 356 | 455 | |||
Diluted (in shares) | 34,621 | 34,788 | 34,733 | 34,829 | 37,334 | ||
Sanuk | |||||||
Contingent consideration | |||||||
Compound annual growth rate (CAGR) (as a percent) | 14.60% | ||||||
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 | ||||||
Sanuk | Maximum | |||||||
Contingent consideration | |||||||
Gross profit | 64,000 | ||||||
Hoka | |||||||
Contingent consideration | |||||||
Total maximum payout | 2,000 | ||||||
Contingent consideration for acquisition of business | 1,500 | ||||||
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 | 48,000 | 71,500 | 71,500 | ||||
Payments | -19,000 | -25,400 | |||||
Change in fair value | 1,000 | 1,900 | |||||
Balance at the end of the period | 26,000 | 48,000 | |||||
Contingent Consideration Arrangement | Sanuk | |||||||
Contingent consideration | |||||||
Contingent consideration for acquisition of business | 24,200 | ||||||
Other Current Liabilities | |||||||
Nonqualified Deferred Compensation | |||||||
Nonqualified deferred compensation liability | 540 | ||||||
Other Noncurrent Liabilities | |||||||
Nonqualified Deferred Compensation | |||||||
Nonqualified deferred compensation liability | $4,534 | $5,041 | $4,410 |
The_Company_and_Summary_of_Sig7
The Company and Summary of Significant Accounting Policies - Options Excluded from Computation of Earnings Per Share (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
segment | |||||
Derivative Instruments and Hedging Activities | |||||
Maximum maturity period of foreign currency forward or option contracts (in months) | 15 months | ||||
Business Segment Reporting | |||||
Number of reportable business segments | 6 | ||||
Cash Equivalents | |||||
Money market funds | $127,900 | 143,816 | $154,105 | ||
Nonvested stock units issued (NSUs) | |||||
Options excluded in the computation of diluted income per share | |||||
Options excluded in the computation of diluted income per share (in shares) | 0 | 331 | 0 | 200 | |
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) | 624 | 729 | 795 | 671 | |
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) | 0 | 6 | 0 | 0 | |
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) | 525 | 730 | 525 | 525 |
The_Company_and_Summary_of_Sig8
The Company and Summary of Significant Accounting Policies - Retirement Plans (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Percentage match of employee contribution | 50.00% | |||
Maximum percentage match of employee contribution as a percentage of eligible compensation | 6.00% | |||
Matching contributions by employer | $601 | $1,726 | $1,386 | $1,066 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Property and equipment | |||
Gross property and equipment | $361,319 | $287,660 | $273,539 |
Less accumulated depreciation and amortization | 129,002 | 103,090 | 99,473 |
Net property and equipment | 232,317 | 184,570 | 174,066 |
Land | |||
Property and equipment | |||
Gross property and equipment | 25,543 | 25,531 | 19,954 |
Building | |||
Property and equipment | |||
Gross property and equipment | 38,841 | 36,387 | 0 |
Machinery and equipment | |||
Property and equipment | |||
Gross property and equipment | 158,136 | 98,035 | 84,941 |
Furniture and fixtures | |||
Property and equipment | |||
Gross property and equipment | 36,751 | 31,085 | 25,961 |
Leasehold improvements | |||
Property and equipment | |||
Gross property and equipment | $102,048 | $96,622 | $142,683 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Weighted-Average Amortization Period (in years) | 14 years | 13 years | 14 years |
Gross Carrying Amount | $101,982 | $109,604 | $101,963 |
Accumulated Amortization | 26,026 | 37,316 | 24,140 |
Net Carrying Amount | 75,956 | 72,288 | 77,823 |
Intangibles not subject to amortization | |||
Goodwill | 127,934 | 127,934 | 128,725 |
Trademarks | 15,455 | 15,455 | 15,455 |
Total goodwill and other intangible assets | 219,345 | 215,677 | 222,003 |
Changes in goodwill | |||
Goodwill, gross, balance at the beginning of the period | 144,556 | 143,765 | 144,556 |
Additions to prior acquisitions, gross | -791 | 0 | 0 |
Goodwill, gross, balance at the end of the period | 143,765 | 143,765 | 144,556 |
Accumulated impairment, balance at the beginning of the period | -15,831 | -15,831 | -15,831 |
Accumulated impairment, balance at the end of the period | -15,831 | -15,831 | -15,831 |
Goodwill, net, balance at the beginning of the period | 128,725 | 127,934 | 128,725 |
Additions to prior acquisitions, net | -791 | ||
Goodwill, net, balance at the end of the period | $127,934 | $127,934 | $128,725 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2015 |
Goodwill | |||||
Total goodwill | $127,934 | $128,725 | $128,725 | $127,934 | |
Amortization of Intangible Assets | 11,291 | 1,886 | 7,975 | 9,312 | |
Indefinite-lived intangible assets | 8,044 | ||||
Trademarks | 15,455 | 15,455 | 15,455 | ||
Expected amortization expense on existing intangible assets | |||||
2016 | 9,358 | ||||
2017 | 8,361 | ||||
2018 | 6,278 | ||||
2019 | 5,621 | ||||
2020 | 3,813 | ||||
Thereafter | 30,813 | ||||
Total | 64,244 | ||||
UGG brand | |||||
Goodwill | |||||
Total goodwill | 6,101 | 6,101 | 6,101 | ||
Sanuk brand | |||||
Goodwill | |||||
Total goodwill | 113,944 | 113,944 | 113,944 | ||
Other brands | |||||
Goodwill | |||||
Total goodwill | $7,889 | $8,680 | $7,889 |
Income_Taxes_Income_Tax_Expens
Income Taxes - Income Tax Expense (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Current income taxes | |||||
Federal | ($572) | $35,459 | $51,058 | $50,911 | |
State | -4 | 6,861 | 6,252 | 6,482 | |
Foreign | 5,255 | 7,069 | 6,650 | 3,368 | |
Total | 4,679 | 49,389 | 63,960 | 60,761 | |
Deferred income taxes | |||||
Federal | 1,669 | 8,234 | -2,580 | -6,083 | |
State | -1 | 624 | -209 | 414 | |
Foreign | -4,404 | 1,112 | -1,303 | 12 | |
Total | -2,736 | 9,970 | -4,092 | -5,657 | |
Income taxes | |||||
Income tax expense | 1,943 | 1,503 | 59,359 | 59,868 | 55,104 |
Foreign income before taxes | -3,631 | 95,850 | 60,851 | 51,409 | |
Actual income taxes differed from that obtained by applying the statutory federal income tax rate to income before income taxes | |||||
Computed expected income taxes | -260 | 77,399 | 71,945 | 64,282 | |
State income taxes, net of federal income tax benefit | 90 | 3,564 | 4,435 | 3,562 | |
Foreign rate differential | 1,904 | -25,535 | -16,399 | -12,908 | |
Unrecognized tax benefits | 0 | 3,566 | 0 | 0 | |
Other | 209 | 365 | -113 | 168 | |
Income tax expense | 1,943 | 1,503 | 59,359 | 59,868 | 55,104 |
Deferred tax assets (liabilities), current: | |||||
Uniform capitalization adjustment to inventory | 4,114 | 4,040 | 5,492 | ||
Bad debt and other reserves | 9,901 | 8,984 | 10,655 | ||
State taxes | -1,739 | 482 | 508 | ||
Prepaid expenses | -2,217 | -3,546 | -2,193 | ||
Accrued bonus | 2,093 | 4,120 | 5,071 | ||
Foreign currency hedge | 305 | 434 | 348 | ||
Net operating loss carry forwards | 9,414 | 0 | 0 | ||
Other | 0 | -448 | 0 | ||
Total deferred tax assets, current | 21,871 | 14,066 | 19,881 | ||
Deferred tax assets (liabilities), noncurrent: | |||||
Amortization and impairment of intangible assets | 5,267 | 1,004 | 4,603 | ||
Depreciation of property and equipment | -4,833 | -6,148 | -6,034 | ||
Share-based compensation | 10,638 | 12,044 | 11,226 | ||
Foreign currency translation | 382 | 720 | 667 | ||
Deferred rent | 4,290 | 4,885 | 4,028 | ||
Acquisition costs | 756 | 764 | 755 | ||
Other | 128 | 1,327 | 0 | ||
Net operating loss carry forwards | 434 | 421 | 506 | ||
Total deferred tax assets, noncurrent | 17,062 | 15,017 | 15,751 | ||
Unallocated deferred tax assets | $38,933 | $29,083 | $35,632 |
Income_Taxes_Unrecognized_Tax_
Income Taxes - Unrecognized Tax Benefit (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Expected future taxable income to fully realize the deferred tax assets | $76,000,000 | |||
Goodwill | 800,000 | |||
Change in net deferred tax assets attributable to other comprehensive income | 200,000 | 100,000 | ||
Domestic taxable income | 0 | 91,017,000 | 151,204,000 | 141,660,000 |
Unremitted earnings of non-US subsidiaries | 362,000,000 | |||
Income tax on the repatriation of all foreign earnings | 118,000,000 | |||
Non-US Subsidiary Cash and Cash Equivalents | 132,000,000 | |||
Percentage of pre-tax earnings from a country which does not impose a corporate income tax | 25.00% | |||
Minimum percentage used to measure tax benefit of uncertain tax position | 50.00% | |||
Unrecognized tax benefits that would impact effective tax rate | 3,566,000 | |||
Reconciliation of the beginning and ending amounts of total unrecognized tax benefits | ||||
Balance at the beginning of the period | 0 | 0 | 0 | |
Gross change related to current and prior years' tax positions | 0 | 0 | ||
Gross increase related to current year tax positions | 1,293,000 | |||
Gross increase related to prior year tax positions | 3,374,000 | |||
Balance at the end of the period | 0 | 4,667,000 | 0 | 0 |
Tax benefits, to be settled within 12 months | 300,000 | |||
Accrued interest on income tax contingencies | $349,000 | $1,246,000 | $360,000 |
Notes_Payable_and_LongTerm_Deb1
Notes Payable and Long-Term Debt (Details) | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2012 | Aug. 31, 2012 | Mar. 31, 2015 | Nov. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Aug. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2015 | Oct. 30, 2014 | Oct. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Jul. 31, 2014 | Mar. 31, 2015 |
USD ($) | USD ($) | USD ($) | USD ($) | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | China Credit Agreement | China Credit Agreement | China Credit Agreement | China Credit Agreement | China Credit Agreement | China Credit Agreement | China Credit Agreement | China Credit Agreement | China Credit Agreement | Amended China Credit Agreement | Amended China Credit Agreement | Amended China Credit Agreement | Line of Credit | Line of Credit | Mortgages | Mortgages | |
USD ($) | USD ($) | Minimum | Maximum | LIBOR based interest rates | LIBOR based interest rates | LIBOR based interest rates | LIBOR based interest rates | LIBOR based interest rates | Alternate Base Rate based interest rates | Alternate Base Rate based interest rates | Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | USD ($) | Minimum | Maximum | Revolving Credit Facility | Revolving Credit Facility | USD ($) | USD ($) | |||||||
USD ($) | First 30 days | Thereafter | Thereafter | Thereafter | First 30 days | Thereafter | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Credit Agreement | Amended China Credit Agreement | ||||||||||||||||
Minimum | Maximum | USD ($) | ||||||||||||||||||||||||||||||
Notes Payable and Long-Term Debt | ||||||||||||||||||||||||||||||||
Term of agreement (in years) | 5 years | |||||||||||||||||||||||||||||||
Current borrowing capacity | $400,000,000 | 60,000,000 | ||||||||||||||||||||||||||||||
Debt Instrument, Term | 12 months | 18 months | 15 years | |||||||||||||||||||||||||||||
Maximum available for the issuance of letters of credit | 75,000,000 | |||||||||||||||||||||||||||||||
Maximum available for swing loans | 5,000,000 | |||||||||||||||||||||||||||||||
Additional available credit | 200,000,000 | |||||||||||||||||||||||||||||||
Maximum borrowing capacity with contingent increase | 600,000,000 | |||||||||||||||||||||||||||||||
Capacity available for currency borrowings | 150,000,000 | |||||||||||||||||||||||||||||||
Period of variable interest rate basis (in days) | 30 days | |||||||||||||||||||||||||||||||
Adjusted LIBOR rate at period end (as a percent) | 0.18% | |||||||||||||||||||||||||||||||
Spread on variable interest rate (as a percent) | 1.00% | 1.25% | 1.25% | 2.00% | 0.25% | 0.25% | ||||||||||||||||||||||||||
Variable interest rate basis | LIBOR | |||||||||||||||||||||||||||||||
Fees on the daily unused amount (as a percent) | 0.18% | 0.18% | 0.30% | |||||||||||||||||||||||||||||
Additional Financial Covenants Required | ||||||||||||||||||||||||||||||||
Asset coverage ratio, numerator, to be maintained under Credit Agreement covenants | 3.25 | |||||||||||||||||||||||||||||||
Ratio of consolidated EBITDA plus annual rental expense to annual interest expense plus annual rental expense, numerator, to be maintained under Credit Agreement covenants | 2.25 | |||||||||||||||||||||||||||||||
Debt Instrument, Covenant Capital Expenditures Allowed | 110,000,000 | |||||||||||||||||||||||||||||||
Total adjusted leverage ratio, numerator, to allow for maximum limit on acquisitions under terms of the Credit Agreement covenants | 2.75 | 2.75 | ||||||||||||||||||||||||||||||
Additional unsecured debt allowed under Credit Agreement covenants | 200,000,000 | |||||||||||||||||||||||||||||||
Outstanding letters of credit | 100,000 | |||||||||||||||||||||||||||||||
Amount available under the Credit Agreement | 399,900,000 | |||||||||||||||||||||||||||||||
Deferred financing costs | 1,800,000 | 800,000 | ||||||||||||||||||||||||||||||
Debt Instrument Covenant Borrowings Allowed in Third and Fourth Quarters of Fiscal Year | 10,000,000 | 60,000,000 | 10,000,000 | 60,000,000 | ||||||||||||||||||||||||||||
Debt Instrument Covenant Borrowings Allowed in First and Second Quarters of Fiscal Year | 3,300,000 | 20,000,000 | 3,300,000 | 20,000,000 | ||||||||||||||||||||||||||||
Debt Instrument Covenant Percentage of Facility Amount in United States Dollars Guaranteed | 110.00% | |||||||||||||||||||||||||||||||
Outstanding borrowings | 4,900,000 | |||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.35% | 4.93% | ||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 33,900,000 | |||||||||||||||||||||||||||||||
Long-term Debt, Gross | 33,600,000 | |||||||||||||||||||||||||||||||
Short-term borrowings | 5,383,000 | 6,702,000 | 9,728,000 | 500,000 | ||||||||||||||||||||||||||||
Mortgage payable | 33,154,000 | 0 | 0 | 33,100,000 | ||||||||||||||||||||||||||||
Debt Instrument, Amortization Period | 30 years | |||||||||||||||||||||||||||||||
Debt Instrument, Term for Minimum Payments | 5 years | |||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 23,400,000 | |||||||||||||||||||||||||||||||
Debt Instrument, Annual Principal Payment | $2,700,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Lease Commitments (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Future minimum commitments under the lease agreements | ||||
2016 | $53,664 | |||
2017 | 55,325 | |||
2018 | 49,357 | |||
2019 | 39,293 | |||
2020 | 32,809 | |||
Thereafter | 118,451 | |||
Total | 348,899 | |||
Composition of total rental expense | ||||
Minimum rentals | 14,260 | 61,363 | 47,871 | 37,270 |
Contingent rentals | 3,099 | 14,707 | 12,318 | 9,366 |
Total | $17,359 | $76,070 | $60,189 | $46,636 |
Minimum | ||||
Commitments and Contingencies | ||||
Term of renewal options range (in years) | 1 year | |||
Maximum | ||||
Commitments and Contingencies | ||||
Term of renewal options range (in years) | 15 years |
Commitments_and_Contingencies_2
Commitments and Contingencies - Purchase Commitments (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Purchase commitments entered in October 2011 | |
Future commitments | |
Advance Deposits | $50,000 |
Total Minimum Commitment | 286,000 |
Remaining Deposit | 13,783 |
Remaining Commitments, Net of Deposit | 0 |
Purchase commitments entered in October 2012 | |
Future commitments | |
Advance Deposits | 0 |
Total Minimum Commitment | 51,240 |
Remaining Deposit | 0 |
Remaining Commitments, Net of Deposit | 32,487 |
Purchase commitments entered in September 2013 | |
Future commitments | |
Advance Deposits | 0 |
Total Minimum Commitment | 47,960 |
Remaining Deposit | 0 |
Remaining Commitments, Net of Deposit | $15,434 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Commitments and Contingencies | |||||
Future commitments under purchase orders and other agreements in next year | $664,429 | ||||
Maximum indemnity period of claims for intellectual property (in years) | 5 years | ||||
Business Acquisition Purchase Price, Additional Participation Payment Year Three, Terms | 60 days | ||||
Contingent consideration | 0 | 0 | 0 | 1,128 | |
Maximum contingent consideration payments | 2,000 | ||||
Approximate amount paid | 500 | 500 | |||
Long-term Purchase Commitment, Amount | 8,000 | ||||
Sanuk | |||||
Commitments and Contingencies | |||||
Contingent consideration | 28,000 | 24,200 | 46,200 | ||
Contingent consideration included within other accrued expenses | 0 | 24,200 | 18,600 | ||
Contingent consideration included within long-term liabilities | 28,000 | 0 | 27,600 | ||
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 | 1,800 | 1,500 | 1,800 | ||
Maximum contingent consideration payments | 2,000 | ||||
Purchase commitment | |||||
Commitments and Contingencies | |||||
Advance deposits | 11,000 | 14,000 | 67,000 | ||
Outstanding purchase orders with manufacturers | |||||
Commitments and Contingencies | |||||
Outstanding purchase orders with manufacturers | $664,659 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||
Feb. 28, 2015 | Jan. 31, 2015 | Jun. 30, 2012 | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2011 | Dec. 31, 2013 | 31-May-12 | 31-May-06 | |
group | ||||||||||||
Stockholders' equity | ||||||||||||
Grant date fair value of RSUs | $98.29 | |||||||||||
Compensation expense cumulative amount based on maximum number of units subject to performance objectives probable | $2,000,000 | |||||||||||
Unrecognized compensation cost | 6,100,000 | |||||||||||
Maximum stock repurchase amount approved by Board of Directors | 200,000,000 | |||||||||||
Number of shares repurchased | 3,823,000 | 377,000 | ||||||||||
Repurchase of common stock, payments | 200,000,000 | 27,900,000 | ||||||||||
Average stock price of shares repurchased (in dollars per share) | $52.31 | $74.09 | ||||||||||
Remaining stock repurchase amount approved by Board of Directors | 200,000,000 | 172,100,000 | ||||||||||
Stock compensation expenses | ||||||||||||
Compensation expenses recorded | 2,865,000 | 13,524,000 | 13,136,000 | 14,661,000 | ||||||||
Income tax benefit recognized | -1,082,000 | -5,143,000 | -4,950,000 | -5,573,000 | ||||||||
Net compensation expenses | 1,783,000 | 8,381,000 | 8,186,000 | 9,088,000 | ||||||||
Unrecognized Compensation Cost | 21,589,000 | |||||||||||
Nonvested Stock Units and Restricted Stock Units Issued Under the 2006 Plan | ||||||||||||
Cancelled (in shares) | -200,000 | |||||||||||
Weighted-Average Grant-Date Fair Value | ||||||||||||
Granted (in dollars per share) | $98.29 | |||||||||||
Stock Appreciation Rights Issued Under the 2006 Plan | ||||||||||||
Granted (in shares) | 0 | 0 | 0 | |||||||||
Forfeited (in shares) | 0 | 0 | 0 | |||||||||
Weighted-Average Exercise Price | ||||||||||||
Granted (in dollars per share) | $0 | $0 | $0 | $0 | ||||||||
Maximum | ||||||||||||
Stockholders' equity | ||||||||||||
Number of shares granted | 160,000 | |||||||||||
Revenue targets to be met for awards to be vested | 2,447,000,000 | |||||||||||
EBITDA targets to be met for awards to be vested | 394,000,000 | |||||||||||
Nonvested Stock Units and Restricted Stock Units Issued Under the 2006 Plan | ||||||||||||
Granted (in shares) | 160,000 | |||||||||||
Minimum | ||||||||||||
Stockholders' equity | ||||||||||||
Revenue targets to be met for awards to be vested | 2,155,000,000 | |||||||||||
EBITDA targets to be met for awards to be vested | 336,000,000 | |||||||||||
Nonvested stock units issued (NSUs) | ||||||||||||
Stock compensation expenses | ||||||||||||
Compensation expenses recorded | 1,863,000 | 9,295,000 | 10,545,000 | 11,849,000 | ||||||||
Unrecognized Compensation Cost | 13,917,000 | |||||||||||
Weighted-Average Remaining Vesting Period (in years) | 1 year 6 months | |||||||||||
Restricted Stock Units (RSUs) | ||||||||||||
Stock compensation expenses | ||||||||||||
Compensation expenses recorded | 354,000 | 1,323,000 | 287,000 | 231,000 | ||||||||
Unrecognized Compensation Cost | 6,317,000 | |||||||||||
Weighted-Average Remaining Vesting Period (in years) | 1 year 6 months | |||||||||||
Directors' shares | ||||||||||||
Stock compensation expenses | ||||||||||||
Compensation expenses recorded | 267,000 | 1,060,000 | 1,002,000 | 1,080,000 | ||||||||
Stock Appreciation Rights (SARs) | ||||||||||||
Stockholders' equity | ||||||||||||
Maximum contractual term of SARs with final vesting date of December 31, 2011 (in years) | 10 years | |||||||||||
Maximum contractual term of SARs with final vesting date of December 31, 2016 (in years) | 15 years | |||||||||||
Stock compensation expenses | ||||||||||||
Compensation expenses recorded | 381,000 | 1,846,000 | 1,302,000 | 1,501,000 | ||||||||
Unrecognized Compensation Cost | 1,355,000 | |||||||||||
Weighted-Average Remaining Vesting Period (in years) | 10 months 24 days | |||||||||||
2006 Equity Incentive Plan (2006 Plan) | ||||||||||||
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 | |||||||||||
Stock Appreciation Rights Issued Under the 2006 Plan | ||||||||||||
Forfeited (in shares) | 0 | |||||||||||
Weighted-Average Exercise Price | ||||||||||||
Forfeited (in dollars per share) | $0 | $0 | $0 | $0 | ||||||||
2006 Equity Incentive Plan (2006 Plan) | Nonvested stock units issued (NSUs) | ||||||||||||
Stockholders' equity | ||||||||||||
Number of shares granted | 0 | 196,000 | 304,000 | 209,000 | ||||||||
Grant date fair value of RSUs | $0 | $82.34 | $57.30 | $63.18 | ||||||||
Nonvested Stock Units and Restricted Stock Units Issued Under the 2006 Plan | ||||||||||||
Nonvested at the beginning of the period (in shares) | 340,000 | 331,000 | 371,000 | 677,000 | ||||||||
Granted (in shares) | 0 | 196,000 | 304,000 | 209,000 | ||||||||
Vested (in shares) | -2,000 | -142,000 | -315,000 | -297,000 | ||||||||
Forfeited (in shares) | -7,000 | -30,000 | -20,000 | -18,000 | ||||||||
Cancelled (in shares) | -15,000 | |||||||||||
Nonvested at the end of the period (in shares) | 331,000 | 340,000 | 340,000 | 371,000 | 340,000 | |||||||
Weighted-Average Grant-Date Fair Value | ||||||||||||
Nonvested at the beginning of the period (in dollars per share) | $62.23 | $62.21 | $58.51 | $48.14 | ||||||||
Granted (in dollars per share) | $0 | $82.34 | $57.30 | $63.18 | ||||||||
Vested (in dollars per share) | $58.11 | $68.39 | $53.19 | $35.90 | ||||||||
Forfeited (in dollars per share) | $64.15 | $64.18 | $61.08 | $63.68 | ||||||||
Cancelled (in dollars per share) | $84.04 | $62.17 | ||||||||||
Nonvested at the end of the period (in dollars per share) | $62.21 | $70.11 | $62.23 | $58.51 | 62.23 | |||||||
Stock Appreciation Rights Issued Under the 2006 Plan | ||||||||||||
Nonvested at the beginning of the period (in shares) | 340,000 | 331,000 | 371,000 | 677,000 | ||||||||
Nonvested at the end of the period (in shares) | 331,000 | 340,000 | 340,000 | 371,000 | 340,000 | |||||||
2006 Equity Incentive Plan (2006 Plan) | Nonvested stock units issued (NSUs) | Award granted in 2011 | ||||||||||||
Stockholders' equity | ||||||||||||
Awards granted that will vest after the performance goals are achieved (as a percent) | 33.33% | |||||||||||
Award vesting period | 3 years | |||||||||||
2006 Equity Incentive Plan (2006 Plan) | Restricted Stock Units (RSUs) | ||||||||||||
Stockholders' equity | ||||||||||||
Number of shares granted | 0 | 160,000 | 156,000 | 352,000 | ||||||||
Grant date fair value of RSUs | $0 | $98.29 | $84.52 | $56.12 | ||||||||
Nonvested Stock Units and Restricted Stock Units Issued Under the 2006 Plan | ||||||||||||
Nonvested at the beginning of the period (in shares) | 795,000 | 729,000 | 671,000 | 319,000 | ||||||||
Granted (in shares) | 0 | 160,000 | 156,000 | 352,000 | ||||||||
Vested (in shares) | 0 | 0 | 0 | 0 | ||||||||
Forfeited (in shares) | -66,000 | -35,000 | -32,000 | 0 | ||||||||
Cancelled (in shares) | -230,000 | |||||||||||
Nonvested at the end of the period (in shares) | 729,000 | 624,000 | 795,000 | 671,000 | 795,000 | |||||||
Weighted-Average Grant-Date Fair Value | ||||||||||||
Nonvested at the beginning of the period (in dollars per share) | $67.03 | $67.01 | $62.80 | $70.15 | ||||||||
Granted (in dollars per share) | $0 | $98.29 | $84.52 | $56.12 | ||||||||
Vested (in dollars per share) | $0 | $0 | $0 | $0 | ||||||||
Forfeited (in dollars per share) | $67.23 | $78.39 | $63.69 | $0 | ||||||||
Cancelled (in dollars per share) | $82.09 | |||||||||||
Nonvested at the end of the period (in dollars per share) | $67.01 | $68.82 | $67.03 | $62.80 | 67.03 | |||||||
Stock Appreciation Rights Issued Under the 2006 Plan | ||||||||||||
Nonvested at the beginning of the period (in shares) | 795,000 | 729,000 | 671,000 | 319,000 | ||||||||
Nonvested at the end of the period (in shares) | 729,000 | 624,000 | 795,000 | 671,000 | 795,000 | |||||||
2006 Equity Incentive Plan (2006 Plan) | Stock Appreciation Rights (SARs) | ||||||||||||
Nonvested Stock Units and Restricted Stock Units Issued Under the 2006 Plan | ||||||||||||
Nonvested at the beginning of the period (in shares) | 730,000 | 730,000 | 745,000 | 760,000 | ||||||||
Nonvested at the end of the period (in shares) | 730,000 | 715,000 | 730,000 | 745,000 | 760,000 | 730,000 | ||||||
Stock Appreciation Rights Issued Under the 2006 Plan | ||||||||||||
Nonvested at the beginning of the period (in shares) | 730,000 | 730,000 | 745,000 | 760,000 | ||||||||
Granted (in shares) | 0 | |||||||||||
Exercised (in shares) | 0 | -15,000 | -15,000 | -15,000 | ||||||||
Nonvested at the end of the period (in shares) | 730,000 | 715,000 | 730,000 | 745,000 | 760,000 | 730,000 | ||||||
Exercisable at the end of the period (in shares) | 190,000 | |||||||||||
Expected to vest and exercisable (in shares) | 702,000 | |||||||||||
Weighted-Average Exercise Price | ||||||||||||
Outstanding at the beginning of the period (in dollars per share) | $26.73 | $26.73 | $26.73 | $26.73 | ||||||||
Exercised (in dollars per share) | $0 | $26.73 | $26.73 | $26.73 | ||||||||
Outstanding at the end of the period (in dollars per share) | $26.73 | $26.73 | $26.73 | $26.73 | $26.73 | 26.73 | ||||||
Exercisable at the end of the period (in dollars per share) | $26.73 | |||||||||||
Expected to vest and exercisable (in dollars per share) | $26.73 | |||||||||||
Weighted-Average Remaining Contractual Term (in years) | ||||||||||||
Outstanding at the end of the period (in years) | 6 years 8 months 12 days | 5 years 9 months 18 days | 6 years 11 months 12 days | 7 years 10 months 17 days | 8 years 9 months 18 days | |||||||
Exercisable at the end of the period (in years) | 2 years 1 month 6 days | |||||||||||
Expected to vest and exercisable (in years) | 5 years 9 months 18 days | |||||||||||
Aggregate Intrinsic Value | ||||||||||||
Outstanding at the end of the period (in dollars) | 38,690,000 | 32,990,000 | 42,143,000 | 10,087,000 | 37,118,000 | 42,143,000 | ||||||
Exercisable at the end of the period (in dollars) | 8,767,000 | |||||||||||
Expected to vest and exercisable (in dollars) | 32,396,000 | |||||||||||
Long-term incentive awards | ||||||||||||
Stockholders' equity | ||||||||||||
Compensation expense cumulative amount based on maximum number of units subject to performance objectives probable | 12,000,000 | |||||||||||
Number of participant groups | 2 | |||||||||||
Long-term incentive awards | Award granted in 2012 | ||||||||||||
Stock compensation expenses | ||||||||||||
Maximum compensation cost excluded from unrecognized compensation cost subject to performance condition not considered probable | 15,637,000 | |||||||||||
Long-term incentive awards | Award Granted in 2013 | ||||||||||||
Stock compensation expenses | ||||||||||||
Maximum compensation cost excluded from unrecognized compensation cost subject to performance condition not considered probable | 10,396,000 | |||||||||||
Long-term incentive awards | Maximum | ||||||||||||
Stockholders' equity | ||||||||||||
Revenue targets to be met for awards to be vested | 2,900,000,000 | |||||||||||
Diluted earnings per share targets to be met for awards to be vested (in dollars per share) | $10.50 | |||||||||||
Long-term incentive awards | Minimum | ||||||||||||
Stockholders' equity | ||||||||||||
Revenue targets to be met for awards to be vested | 2,200,000,000 | |||||||||||
Diluted earnings per share targets to be met for awards to be vested (in dollars per share) | $7 | |||||||||||
Long-term incentive awards | Restricted Stock Units (RSUs) | ||||||||||||
Stockholders' equity | ||||||||||||
Number of shares receivable as right under stock-based awards | 1 | |||||||||||
Grant date fair value of RSUs | $84.52 | $56.12 | ||||||||||
Weighted-Average Grant-Date Fair Value | ||||||||||||
Granted (in dollars per share) | $84.52 | $56.12 | ||||||||||
Long-term incentive awards | Restricted Stock Units (RSUs) | Maximum | ||||||||||||
Stockholders' equity | ||||||||||||
Number of shares granted | 156,000 | 352,000 | ||||||||||
Nonvested Stock Units and Restricted Stock Units Issued Under the 2006 Plan | ||||||||||||
Granted (in shares) | 156,000 | 352,000 | ||||||||||
Long-term incentive awards | SAR awards and RSU awards | ||||||||||||
Stockholders' equity | ||||||||||||
Portion of SAR and RSU awards scheduled to vest on December 31, 2010 and December 31, 2011 | 50.00% | |||||||||||
Portion of SAR and RSU awards scheduled to vest on December 31, 2015 and December 31, 2016 | 50.00% | |||||||||||
Portion of SAR and RSU awards scheduled to vest on December 31, 2010 and December 31, 2011 | 50.00% | |||||||||||
Portion of SAR and RSU awards scheduled to vest on December 31, 2015 and December 31, 2016 | 50.00% | |||||||||||
Non-revenue Generating Group | Maximum | ||||||||||||
Stockholders' equity | ||||||||||||
Revenue targets to be met for awards to be vested | 2,558,000,000 | |||||||||||
EBITDA targets to be met for awards to be vested | 415,000,000 | |||||||||||
Non-revenue Generating Group | Minimum | ||||||||||||
Stockholders' equity | ||||||||||||
Revenue targets to be met for awards to be vested | 2,290,000,000 | |||||||||||
EBITDA targets to be met for awards to be vested | 372,000,000 | |||||||||||
Revenue Generating Group | Minimum | ||||||||||||
Stockholders' equity | ||||||||||||
EBITDA targets to be met for awards to be vested | 350,000,000 | |||||||||||
Long-term incentive award (Level III Awards) | Restricted Stock Units (RSUs) | Maximum | ||||||||||||
Stockholders' equity | ||||||||||||
Number of shares granted | 275,000 | |||||||||||
Nonvested Stock Units and Restricted Stock Units Issued Under the 2006 Plan | ||||||||||||
Granted (in shares) | 275,000 | |||||||||||
Portion Vesting On December 2010 | Long-term incentive awards | SAR awards and RSU awards | ||||||||||||
Aggregate Intrinsic Value | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 80.00% | |||||||||||
Portion Vesting On December 2011 | Long-term incentive awards | SAR awards and RSU awards | ||||||||||||
Aggregate Intrinsic Value | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |||||||||||
Portion Vesting On December 2015 | Long-term incentive awards | SAR awards and RSU awards | ||||||||||||
Aggregate Intrinsic Value | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 80.00% | |||||||||||
Portion Vesting On December 2016 | Long-term incentive awards | SAR awards and RSU awards | ||||||||||||
Aggregate Intrinsic Value | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% |
Foreign_Currency_Exchange_Cont2
Foreign Currency Exchange Contracts and Hedging (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2013 | Apr. 30, 2015 |
counterparty | counterparty | |||
Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Notional amounts of foreign currency hedging contracts | $64,000 | $46,000 | $77,000 | |
Number of Counterparties in Derivative Contracts | 4 | |||
Maximum Remaining Maturity of Foreign Currency Derivatives | 12 months | |||
Summary of the effect of derivative instruments on the consolidated statements of income | ||||
Amount of Gain Recognized in Income on Derivatives | 0 | 6,383 | 728 | |
Derivatives designated as cash flow hedges | ||||
Summary of the effect of derivative instruments on the consolidated statements of income | ||||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | -283 | 1,226 | 17 | |
Gain (Loss) from Amount Excluded from Effectiveness Testing | -31 | -69 | -11 | |
Derivatives designated as cash flow hedges | Foreign currency exchange contracts | ||||
Summary of the effect of derivative instruments on the consolidated statements of income | ||||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | -47 | 1,556 | -779 | |
Subsequent Event | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Number of Counterparties in Derivative Contracts | 6 | |||
Not Designated as Hedging Instrument | Subsequent Event | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Notional amounts of foreign currency hedging contracts | 42,000 | |||
Designated as Hedging Instrument | Subsequent Event | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Notional amounts of foreign currency hedging contracts | 31,000 |
Transition_Period_Details
Transition Period (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Transition Period [Abstract] | ||||||||||||
Net sales | $340,637 | $784,678 | $480,273 | $211,469 | $294,716 | $736,048 | $386,725 | $170,085 | $263,760 | $1,817,057 | $1,556,618 | $1,414,398 |
Cost of sales | 150,456 | 140,201 | 938,949 | 820,135 | 782,244 | |||||||
Gross profit | 152,324 | 415,139 | 223,873 | 86,772 | 144,260 | 376,200 | 166,892 | 69,832 | 123,559 | 878,108 | 736,483 | 632,154 |
Selling, general and administrative (SG&A) expenses | 144,668 | 120,907 | 653,689 | 528,586 | 445,206 | |||||||
Income (loss) from operations | -408 | 2,652 | 224,419 | 207,897 | 186,948 | |||||||
Other expense (income), net: | ||||||||||||
Interest income | -65 | -26 | -207 | -60 | -217 | |||||||
Interest expense | 516 | 339 | 4,220 | 3,079 | 3,840 | |||||||
Other, net | -117 | -171 | -733 | -679 | -793 | |||||||
Total other expense, net | 334 | 142 | 3,280 | 2,340 | 2,830 | |||||||
(Loss) income before income taxes | -742 | 2,510 | 221,139 | 205,557 | 184,118 | |||||||
Income tax expense | 1,943 | 1,503 | 59,359 | 59,868 | 55,104 | |||||||
Net income (loss) | -2,685 | 1,007 | 161,780 | 145,689 | 129,014 | |||||||
Other comprehensive income (loss), net of tax: | ||||||||||||
Unrealized (loss) income on foreign currency hedging | -273 | 1,530 | 450 | -486 | -633 | |||||||
Foreign currency translation adjustment | 873 | -674 | -18,875 | -757 | 963 | |||||||
Total other comprehensive (loss) income | 600 | 856 | -18,425 | -1,243 | 330 | |||||||
Comprehensive income (loss) | ($2,085) | $1,863 | $143,355 | $144,446 | $129,344 | |||||||
Net (loss) income per share: | ||||||||||||
Basic (in dollars per share) | $0.04 | $4.54 | $1.18 | ($1.07) | ($0.08) | $4.08 | $0.96 | ($0.85) | $0.03 | $4.70 | $4.23 | $3.49 |
Diluted (in dollars per share) | $0.04 | $4.50 | $1.17 | ($1.07) | ($0.08) | $4.04 | $0.95 | ($0.85) | $0.03 | $4.66 | $4.18 | $3.45 |
Weighted-average common shares outstanding: | ||||||||||||
Basic (in shares) | 34,621 | 34,404 | 34,433 | 34,473 | 36,879 | |||||||
Diluted (in shares) | 34,621 | 34,788 | 34,733 | 34,829 | 37,334 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Accumulated other comprehensive income | |||
Cumulative foreign currency translation adjustment | ($20,159) | ($1,284) | ($2,157) |
Unrealized loss on foreign currency hedging, net of tax | -309 | -759 | -486 |
Accumulated other comprehensive loss | ($20,468) | ($2,043) | ($2,643) |
Business_Segments_Concentratio2
Business Segments, Concentration of Business, and Credit Risk and Significant Customers - Summary of Business Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
segment | ||||||||||||
store | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Number of reportable segments in which other brands are included | 1 | |||||||||||
Number of stores converted to partner retail stores | 7 | |||||||||||
Business segment information | ||||||||||||
Net sales to external customers | $340,637 | $784,678 | $480,273 | $211,469 | $294,716 | $736,048 | $386,725 | $170,085 | $263,760 | $1,817,057 | $1,556,618 | $1,414,398 |
Income (loss) from operations | -408 | 2,652 | 224,419 | 207,897 | 186,948 | |||||||
Depreciation and amortization | 10,569 | 49,293 | 41,439 | 33,367 | ||||||||
Depreciation, Depletion and Amortization | 10,538 | 49,150 | 41,370 | 33,420 | ||||||||
Capital expenditures | 17,620 | 91,853 | 79,830 | 61,602 | ||||||||
Total assets | 1,169,933 | 1,064,204 | 1,259,729 | 1,169,933 | 1,259,729 | |||||||
Reportable segments | ||||||||||||
Business segment information | ||||||||||||
Total assets | 698,174 | 654,679 | 801,796 | 698,174 | 801,796 | 816,807 | ||||||
UGG wholesale | ||||||||||||
Business segment information | ||||||||||||
Net sales to external customers | 83,271 | 903,926 | 818,377 | 819,256 | ||||||||
Income (loss) from operations | 13,595 | 269,489 | 224,738 | 206,039 | ||||||||
Depreciation and amortization | 137 | 5,029 | 641 | 622 | ||||||||
Capital expenditures | 119 | 246 | 313 | 314 | ||||||||
Total assets | 194,720 | 153,341 | 314,122 | 194,720 | 314,122 | 377,997 | ||||||
Teva wholesale | ||||||||||||
Business segment information | ||||||||||||
Net sales to external customers | 45,283 | 116,931 | 109,334 | 108,591 | ||||||||
Income (loss) from operations | 6,425 | 13,320 | 9,166 | 9,228 | ||||||||
Depreciation and amortization | 33 | 94 | 641 | 515 | ||||||||
Capital expenditures | 0 | 51 | 63 | 326 | ||||||||
Total assets | 77,423 | 81,766 | 54,868 | 77,423 | 54,868 | 59,641 | ||||||
Sanuk wholesale | ||||||||||||
Business segment information | ||||||||||||
Net sales to external customers | 28,793 | 102,690 | 94,420 | 89,804 | ||||||||
Income (loss) from operations | 7,530 | 21,914 | 20,591 | 14,398 | ||||||||
Depreciation and amortization | 1,769 | 6,969 | 7,761 | 8,838 | ||||||||
Capital expenditures | 2 | 487 | 91 | 448 | ||||||||
Total assets | 224,974 | 214,627 | 208,669 | 224,974 | 208,669 | 209,861 | ||||||
Other brands wholesale | ||||||||||||
Business segment information | ||||||||||||
Net sales to external customers | 18,662 | 76,152 | 38,276 | 20,194 | ||||||||
Income (loss) from operations | -758 | -9,838 | -9,807 | -4,523 | ||||||||
Depreciation and amortization | 250 | 940 | 507 | 1,622 | ||||||||
Capital expenditures | 26 | 351 | 477 | 197 | ||||||||
Total assets | 53,634 | 41,281 | 34,315 | 53,634 | 34,315 | 29,446 | ||||||
eCommerce | ||||||||||||
Business segment information | ||||||||||||
Net sales to external customers | 38,584 | 233,070 | 169,534 | 130,592 | ||||||||
Income (loss) from operations | 13,272 | 92,392 | 66,849 | 56,190 | ||||||||
Depreciation and amortization | 242 | 949 | 744 | 839 | ||||||||
Capital expenditures | 8 | 644 | 676 | 347 | ||||||||
Total assets | 4,485 | 3,129 | 7,331 | 4,485 | 7,331 | 5,058 | ||||||
Retail stores | ||||||||||||
Business segment information | ||||||||||||
Net sales to external customers | 80,123 | 384,288 | 326,677 | 245,961 | ||||||||
Income (loss) from operations | 7,646 | 57,928 | 65,683 | 63,306 | ||||||||
Depreciation and amortization | 4,967 | 20,139 | 21,117 | 12,073 | ||||||||
Capital expenditures | 3,549 | 18,484 | 34,993 | 34,004 | ||||||||
Total assets | 142,938 | 160,535 | 182,491 | 142,938 | 182,491 | 134,804 | ||||||
Unallocated to Segments | ||||||||||||
Business segment information | ||||||||||||
Income (loss) from operations | -48,118 | -220,786 | -169,323 | -157,690 | ||||||||
Depreciation and amortization | 3,140 | 15,030 | 9,959 | 8,911 | ||||||||
Capital expenditures | $13,916 | $71,590 | $43,217 | $25,966 |
Business_Segments_Concentratio3
Business Segments, Concentration of Business, and Credit Risk and Significant Customers - Total Assets from Reportable Segments (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||||
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | |||||
Cash and cash equivalents | $225,143 | $245,088 | $237,125 | $110,247 | $263,606 |
Unallocated deferred tax assets | 29,083 | 38,933 | 35,632 | ||
Total assets | 1,169,933 | 1,064,204 | 1,259,729 | ||
Reportable segments | |||||
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | |||||
Total assets | 698,174 | 654,679 | 801,796 | 816,807 | |
Unallocated to Segments | |||||
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | |||||
Other unallocated corporate assets | $217,533 | $125,504 | $185,176 |
Business_Segments_Concentratio4
Business Segments, Concentration of Business, and Credit Risk and Significant Customers - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash and cash equivalents | |||||
Money market fund accounts | 143,816 | 127,900 | 154,105 | ||
Cash | 101,272 | 97,243 | 83,020 | ||
Total cash and cash equivalents | 245,088 | 225,143 | 237,125 | 110,247 | 263,606 |
Long-lived assets, which consist of property and equipment, by major country | |||||
Property and equipment, by major country | 184,570 | 232,317 | 174,066 | ||
Concentration risks | |||||
Number of tanneries used to source products | 2 | ||||
International Net Sales | |||||
Concentration risks | |||||
Concentration risk (as a percent) | 32.70% | 35.90% | 33.00% | 31.20% | |
Net Trade Accounts Receivable | Customer One | |||||
Concentration risks | |||||
Number of customers considered concentration risk | 1 | 1 | 1 | ||
Concentration risk (as a percent) | 11.80% | 11.80% | 11.40% | ||
Net Trade Accounts Receivable | Customer Two | |||||
Concentration risks | |||||
Concentration risk (as a percent) | 11.40% | 11.00% | 19.70% | ||
US | Long-lived assets | |||||
Long-lived assets, which consist of property and equipment, by major country | |||||
Property and equipment, by major country | 148,178 | 196,513 | 136,726 | ||
All other countries | Long-lived assets | |||||
Long-lived assets, which consist of property and equipment, by major country | |||||
Property and equipment, by major country | 36,392 | 35,804 | 37,340 |
Quarterly_Summary_of_Informati2
Quarterly Summary of Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 |
Summarized unaudited quarterly financial data | ||||||||||||
Net sales | $340,637 | $784,678 | $480,273 | $211,469 | $294,716 | $736,048 | $386,725 | $170,085 | $263,760 | $1,817,057 | $1,556,618 | $1,414,398 |
Gross profit | 152,324 | 415,139 | 223,873 | 86,772 | 144,260 | 376,200 | 166,892 | 69,832 | 123,559 | 878,108 | 736,483 | 632,154 |
Net (loss) income | $1,406 | $156,706 | $40,730 | ($37,062) | ($2,685) | $140,897 | $33,060 | ($29,275) | $1,007 | $161,780 | $145,689 | $128,866 |
Net income (loss) per share attributable to Deckers Outdoor Corporation common stockholders: | ||||||||||||
Basic (in dollars per share) | $0.04 | $4.54 | $1.18 | ($1.07) | ($0.08) | $4.08 | $0.96 | ($0.85) | $0.03 | $4.70 | $4.23 | $3.49 |
Diluted (in dollars per share) | $0.04 | $4.50 | $1.17 | ($1.07) | ($0.08) | $4.04 | $0.95 | ($0.85) | $0.03 | $4.66 | $4.18 | $3.45 |
Schedule_II_VALUATION_AND_QUAL1
Schedule II VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Allowance for doubtful accounts | |||||
Valuation and qualifying accounts | |||||
Balance at Beginning of Year | $2,039 | $1,798 | $2,782 | $1,719 | $1,798 |
Additions | 594 | 1,107 | 125 | 2,128 | |
Deductions | 835 | 608 | 868 | 1,065 | |
Balance at End of Year | 1,798 | 2,297 | 2,039 | 2,782 | 1,798 |
Allowance for sales discounts | |||||
Valuation and qualifying accounts | |||||
Balance at Beginning of Year | 3,540 | 2,121 | 3,836 | 4,629 | 2,121 |
Additions | 978 | 68,620 | 46,989 | 35,759 | |
Deductions | 2,397 | 68,393 | 47,285 | 36,552 | |
Balance at End of Year | 2,121 | 2,348 | 3,540 | 3,836 | 2,121 |
Allowance for sales returns | |||||
Valuation and qualifying accounts | |||||
Balance at Beginning of Year | 14,554 | 8,586 | 12,905 | 11,313 | 8,586 |
Additions | 674 | 94,138 | 67,800 | 53,165 | |
Deductions | 6,642 | 93,192 | 66,151 | 51,573 | |
Balance at End of Year | 8,586 | 9,532 | 14,554 | 12,905 | 8,586 |
Chargeback allowance | |||||
Valuation and qualifying accounts | |||||
Balance at Beginning of Year | 4,935 | 3,064 | 5,563 | 4,031 | 3,064 |
Additions | 213 | 2,610 | 187 | 5,879 | |
Deductions | 2,084 | 1,633 | 815 | 4,347 | |
Balance at End of Year | $3,064 | $4,041 | $4,935 | $5,563 | $3,064 |