Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2016 | Jul. 29, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | DECKERS OUTDOOR CORP | |
Entity Central Index Key | 910,521 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,040,112 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 202,309 | $ 245,956 |
Trade accounts receivable, net of allowances ($31,418 at June 30, 2016 and $30,195 at March 31, 2016) | 102,951 | 160,154 |
Inventories | 469,163 | 299,911 |
Prepaid expenses | 17,051 | 18,249 |
Other current assets | 37,987 | 38,039 |
Income taxes receivable | 29,502 | 23,456 |
Total current assets | 858,963 | 785,765 |
Property and equipment, net of accumulated depreciation ($169,010 at June 30, 2016 and $163,807 at March 31, 2016) | 245,111 | 237,246 |
Goodwill | 127,934 | 127,934 |
Other intangible assets, net of accumulated amortization ($47,241 at June 30, 2016 and $45,302 at March 31, 2016) | 80,684 | 83,026 |
Deferred tax assets | 21,038 | 20,636 |
Other assets | 24,015 | 23,461 |
Total assets | 1,357,745 | 1,278,068 |
Current liabilities: | ||
Short-term borrowings | 110,558 | 67,475 |
Trade accounts payable | 212,723 | 100,593 |
Accrued payroll | 21,425 | 20,625 |
Other accrued expenses | 21,072 | 39,449 |
Income taxes payable | 5,877 | 6,461 |
Value added tax payable | 376 | 3,895 |
Total current liabilities | 372,031 | 238,498 |
Long-term liabilities: | ||
Mortgage payable | 32,500 | 32,631 |
Income tax liability | 9,208 | 9,073 |
Deferred rent obligations | 15,234 | 16,139 |
Other long-term liabilities | 11,528 | 14,256 |
Total long-term liabilities | 68,470 | 72,099 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Common stock ($0.01 par value; 125,000 shares authorized; shares issued and outstanding of 32,035 at June 30, 2016 and 32,020 at March 31, 2016) | 320 | 320 |
Additional paid-in capital | 163,342 | 161,259 |
Retained earnings | 767,531 | 826,449 |
Accumulated other comprehensive loss | (13,949) | (20,557) |
Total stockholders’ equity | 917,244 | 967,471 |
Total liabilities and stockholders' equity | $ 1,357,745 | $ 1,278,068 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances (in dollars) | $ 31,418 | $ 30,195 |
Accumulated depreciation | 169,010 | 163,807 |
Accumulated amortization | $ 47,241 | $ 45,302 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 125,000,000 | 125,000,000 |
Common stock, issued shares | 32,035,000 | 32,020,000 |
Common stock, outstanding shares | 32,035,000 | 32,020,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||
Net sales | $ 174,393 | $ 213,805 |
Cost of sales | 98,141 | 127,209 |
Gross profit | 76,252 | 86,596 |
Selling, general and administrative expenses | 154,571 | 150,304 |
Loss from operations | (78,319) | (63,708) |
Other expense (income), net: | ||
Interest income | (204) | (116) |
Interest expense | 1,435 | 1,035 |
Other, net | (669) | 55 |
Total other expense, net | 562 | 974 |
Loss before income taxes | (78,881) | (64,682) |
Income tax benefit | (19,963) | (17,355) |
Net loss | (58,918) | (47,327) |
Other comprehensive income (loss), net of tax: | ||
Unrealized gain (loss) on foreign currency hedging | 2,909 | (1,463) |
Foreign currency translation adjustment | 3,699 | 2,766 |
Total other comprehensive income | 6,608 | 1,303 |
Comprehensive loss | $ (52,310) | $ (46,024) |
Net loss per share: | ||
Basic (in USD per share) | $ (1.84) | $ (1.43) |
Diluted (in USD per share) | $ (1.84) | $ (1.43) |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 32,024 | 33,117 |
Diluted (in shares) | 32,024 | 33,117 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (58,918) | $ (47,327) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation, amortization and accretion | 13,021 | 11,905 |
Change in fair value of contingent consideration | 0 | (1,152) |
Provision for doubtful accounts, net | 549 | 3,262 |
Deferred tax provision | (2,132) | 169 |
Stock compensation | 2,070 | 2,284 |
Restructuring costs | 1,732 | 0 |
Other | 244 | 122 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 56,655 | 22,443 |
Inventories | (169,253) | (133,811) |
Prepaid expenses and other current assets | 4,681 | (674) |
Income tax receivable | (5,584) | (20,458) |
Other assets | (556) | 592 |
Trade accounts payable | 112,130 | 142,136 |
Accrued expenses | 6,050 | (7,757) |
Income taxes payable | (584) | (1,890) |
Long-term liabilities | (3,498) | 3,136 |
Net cash used in operating activities | (43,393) | (27,020) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (20,114) | (18,755) |
Purchases of tangible, intangible, and other assets, net | 0 | (4,700) |
Net cash used in investing activities | (20,114) | (23,455) |
Cash flows from financing activities: | ||
Proceeds from issuance of short-term borrowings | 110,000 | 38,000 |
Repayments of short-term borrowings | (66,633) | 0 |
Cash paid for shares withheld for taxes | (1,106) | (198) |
Excess tax benefit from stock compensation | 59 | 9 |
Cash paid for repurchases of common stock | 0 | (45,407) |
Contingent consideration paid | (19,784) | 0 |
Repayment of mortgage principal | (125) | (119) |
Net cash provided by (used in) financing activities | 22,411 | (7,715) |
Effect of exchange rates on cash | (2,551) | 1,791 |
Net change in cash and cash equivalents | (43,647) | (56,399) |
Cash and cash equivalents at beginning of period | 245,956 | 225,143 |
Cash and cash equivalents at end of period | 202,309 | 168,744 |
Cash paid (refunded) during the period for: | ||
Income taxes, net of $3,720 payments in 2016 | (11,500) | 4,012 |
Income taxes paid | 3,720 | |
Interest | 913 | 782 |
Non-cash investing and financing activities: | ||
Accrued for purchases of property and equipment | 957 | 1,217 |
Accrued for asset retirement obligations | 345 | 154 |
Accrued for shares withheld for taxes | $ 321 | $ 57 |
General
General | 3 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Basis of Presentation The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements and, in the opinion of management, reflect all adjustments necessary for a fair presentation for each of the periods presented. The results of operations for interim periods are not necessarily indicative of results to be achieved for full fiscal years or other interim periods. Deckers Outdoor Corporation (the Company) is a global leader in designing, marketing and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high performance activities. The Company’s business is seasonal, with the highest percentage of UGG® (UGG) brand net sales occurring in the quarters ending September 30 and December 31 and the highest percentage of Teva® (Teva) and Sanuk® (Sanuk) brands net sales occurring in the quarters ending March 31 and June 30 of each year. Net sales of the other brands do not have a significant seasonal impact on the Company. The Company sells its products through domestic retailers and international distributors and retailers, as well as directly to end-user consumers through the Direct-to-Consumer (DTC) reporting segment. Independent third parties manufacture all of the Company's products. As contemplated by the SEC under Rule 10-01 of Regulation S-X, the accompanying unaudited condensed consolidated financial statements and accompanying notes have been condensed and do not contain certain information that will be included in the Company’s annual audited consolidated financial statements and accompanying notes thereto. See the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K, for the fiscal year ended March 31, 2016, filed with the SEC on May 31, 2016 (Annual Report on Form 10-K) for further information. Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in accordance with United States generally accepted accounting principles (US GAAP) requires management to make estimates and assumptions that affect the amounts reported in these unaudited condensed consolidated financial statements and accompanying notes. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management's estimates relate to inventory write-downs, accounts receivable allowances, returns liabilities, stock-based compensation, impairment assessments, depreciation and amortization, income tax liabilities, uncertain tax positions and income taxes receivable, the fair value of financial instruments, and the fair values of acquired intangibles, assets and liabilities. Actual results could differ materially from these estimates. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (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 standard permits the use of either the retrospective or cumulative effect transition method. On August 12, 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers, which provides for a one-year deferral of the effective date of ASU No. 2014-09, as well as early application, which will be effective for the Company on April 1, 2018. In March 2016, the FASB issued ASU No. 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies how to apply the implementation guidance related to principal versus agent considerations within ASU No. 2014-09. The Company is evaluating the effect that these ASUs will have on its condensed 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. However, the adoption of the new revenue standard is not expected to have a material impact on the Company's condensed consolidated financial statements. In April 2015, the 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). On August 18, 2015, the FASB issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which allows an entity to continue to present debt issuance costs related to line of credit arrangements as deferred charges. These ASUs were effective for the Company on April 1, 2016. The Company's adoption of ASU No. 2015-03 and ASU No. 2015-15 has not had and is not expected to have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which clarifies whether a cloud computing arrangement should be treated as a software license or a service contract. Customers that have a cloud computing arrangement that includes a software license are required to account for the software license element of the arrangement consistent with the acquisition of other software licenses. Customers that have a cloud computing arrangement that does not include a software license are required to account for the arrangement as a service contract. This ASU was effective for the Company on April 1, 2016. The Company's adoption of ASU No. 2015-05 has not had and is not expected to have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which changed the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. US GAAP currently requires that, at each financial statement date, entities measure inventory at the lower of cost or market, most commonly the current replacement cost. This ASU is effective for the Company on April 1, 2017, with early adoption permitted. The Company is evaluating the effect that ASU No. 2015-11 will have on its condensed consolidated financial statements and related disclosures, but it is not expected to have a material impact. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires an entity to classify deferred tax assets and liabilities as noncurrent on the balance sheet. Prior to the issuance of the standard, deferred tax assets and liabilities were required to be separated into current and noncurrent amounts on the basis of the classification of the related asset or liability. This ASU was effective for the Company on April 1, 2017, with early adoption permitted. The Company prospectively adopted this ASU as of March 31, 2016 in its Annual Report on Form 10-K. The adoption of ASU No. 2015-17 did not have a material impact on the Company’s condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous US GAAP. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) at fair value and an offsetting right-of-use asset representing its right to use the underlying asset for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Similarly, optional payments to purchase the underlying asset should be included in the measurement of lease assets and lease liabilities only if the lessee is reasonably certain to exercise that purchase option. This ASU is effective for the Company on April 1, 2019. The Company is evaluating the effect that the adoption of this ASU No. 2016-02 will have on its condensed consolidated financial statements and related disclosures. Since the Company utilizes operating leases for most of its facilities and retail stores, it is anticipated that adoption of this ASU will have a material impact on its balance sheet presentation. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires an entity to recognize excess tax benefits and certain tax deficiencies of employee share-based payment awards in the income statement instead of in additional paid-in-capital when the awards vest or are settled, and present excess tax benefits as an operating activity on the statement of cash flows instead of as a financing activity. This ASU also allows entities to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting, and to make a policy election to either estimate the number of awards that are expected to vest or to account for forfeitures as they occur. In addition, the cash paid by an entity to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation is required to be classified as a financing activity on its statement of cash flows. This ASU is effective for the Company on April 1, 2017, with early adoption permitted. The Company is evaluating the effect that the adoption of this ASU No. 2016-09 will have on its condensed consolidated financial statements and related disclosures, but it is not expected to have a material impact. |
Restructuring
Restructuring | 3 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In February 2016, the Company announced the implementation of a retail store fleet optimization and office consolidation that is intended to streamline brand operations, reduce overhead costs, create operating efficiencies and improve collaboration, and includes the closure of facilities and relocation of employees. The Company has begun to realign its brands across two groups: Fashion Lifestyle and Performance Lifestyle. The Fashion Lifestyle group will include the UGG and Koolaburra® by UGG (Koolaburra) brands. The Performance Lifestyle group will include the Teva, Sanuk and Hoka One One® (Hoka) brands. As part of this realignment, the Company also relocated its Sanuk brand operations in Irvine, California to its corporate headquarters in Goleta, California and consolidated its European offices. In addition, the Company closed its Ahnu® (Ahnu) brand operations office in Richmond, California. The Company is in the process of evaluating its portfolio of retail stores. The Company identified 24 retail stores that are candidates for potential closure and has closed six stores during the three months ended June 30, 2016 and three stores during the three months ended March 31, 2016. Subsequent to the sales of the MOZO and TSUBO brands, in July 2015 and February 2016, respectively, neither of which were material, the operating results for the other brands segment include only Hoka, Ahnu and Koolaburra. The Company plans to leverage elements of the Ahnu brand, including particular styles, under the umbrella of the Teva brand beginning in calendar year 2017. As a result of the restructuring, the Company has incurred charges totaling approximately $26,500 through June 30, 2016. Of the total amount, approximately $4,000 remained accrued at June 30, 2016 , and is expected to be paid during fiscal year 2017. Restructuring charges are reflected in selling, general and administrative expenses and the related liability is reflected in other accrued expenses. It is anticipated that the Company will incur an additional $8,000 to $13,000 of similar restructuring costs during the remainder of fiscal year 2017. The following table summarizes these restructuring charges: Lease Termination Costs Severance Costs Leasehold Impairments Software Impairments Other Total Fiscal year 2016 charges $ 8,900 $ 4,000 $ 5,800 $ 3,800 $ 2,300 $ 24,800 Paid in cash (1,200 ) (600 ) — — — (1,800 ) Non-cash — — (5,800 ) (3,800 ) (500 ) (10,100 ) Liability as of March 31, 2016 7,700 3,400 — — 1,800 12,900 Additional charges 1,200 400 100 — — 1,700 Non-cash — — (100 ) — — (100 ) Paid in cash (6,700 ) (2,000 ) — — (1,800 ) (10,500 ) Liability as of June 30, 2016 $ 2,200 $ 1,800 $ — $ — $ — $ 4,000 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company’s goodwill and other intangible assets are summarized as follows: Goodwill Other Intangible Assets, Net Balance at March 31, 2016 $ 127,934 $ 83,026 Amortization expense — (2,069 ) Changes in foreign currency exchange rates — (273 ) Balance at June 30, 2016 $ 127,934 $ 80,684 The Company’s goodwill by segment is summarized as follows: June 30, March 31, UGG brand $ 6,101 $ 6,101 Sanuk brand 113,944 113,944 Other brands 7,889 7,889 Total $ 127,934 $ 127,934 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair values of the Company’s cash and cash equivalents, trade accounts receivable, inventories, prepaid expenses, income taxes receivable, other current assets, short-term borrowings, trade accounts payable, accrued payroll, other accrued expenses, income taxes payable and value added taxes payable approximate the carrying values due to the relatively short maturities of these assets. The fair values of the Company’s long-term liabilities do not significantly differ from the carrying values. The Company records the fair value of assets or liabilities associated with derivative instruments and hedging activities in other current assets or other accrued expenses, respectively, in the condensed consolidated balance sheets. In 2010, the Company established a nonqualified deferred compensation program that permits a select group of management employees to defer earnings to a future date on a nonqualified basis. For each plan year, on behalf of the Company, the Board of Directors may, but is not required to, contribute any amount it desires to any participant under this program. The Company’s contribution will be determined by the Board annually. In March 2015, the Board approved a company contribution feature for future plan years beginning in calendar year 2016 and gave the authority to management to approve actual contributions. At June 30, 2016 and March 31, 2016, no payment was paid or pending. 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, with the assets invested in company-owned life insurance policies reported in other assets on the Company’s condensed consolidated balance sheets. Deferred compensation of $3,468 and $308 is included in other accrued expenses and $3,066 and $5,993 is included in other long-term liabilities in the condensed consolidated balance sheets at June 30, 2016 and March 31, 2016 , respectively. The inputs used in measuring fair value are prioritized into the following fair value hierarchy: • Level 1: Quoted prices in active markets for identical assets or liabilities. • Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities. • Level 3: Unobservable inputs in which little or no market activity exists, therefore requiring the reporting entity to develop its own assumptions. The assets and liabilities that are measured on a recurring basis at fair value are summarized as follows: Fair Value at June 30, Fair Value Measurement Using 2016 Level 1 Level 2 Level 3 Assets (liabilities) at fair value: Nonqualified deferred compensation asset $ 6,259 $ 6,259 $ — $ — Nonqualified deferred compensation liability (6,534 ) (6,534 ) — — Designated derivatives asset 6,199 — 6,199 — Designated derivatives liability (1,029 ) — (1,029 ) — Non-designated derivatives assets 133 — 133 — Contingent consideration for acquisition of business (300 ) — (300 ) — Fair Value at March 31, Fair Value Measurement Using 2016 Level 1 Level 2 Level 3 Assets (liabilities) at fair value: Nonqualified deferred compensation asset $ 6,083 $ 6,083 $ — $ — Nonqualified deferred compensation liability (6,301 ) (6,301 ) — — Designated derivatives asset 2,903 — 2,903 — Designated derivatives liability (2,549 ) — (2,549 ) — Contingent consideration for acquisition of business (20,000 ) — — (20,000 ) The Level 2 inputs consist of forward spot rates at the end of the applicable period. The contingent consideration amount at June 30, 2016 represents the remaining liability related to the purchase of the Hoka brand. The fair value of the contingent consideration is based on subjective assumptions. Sanuk. During the three months ended June 30, 2016 , the last contingent consideration payment attributable to the Sanuk brand acquisition was made in the amount of $19,700 . Hoka One One. The purchase price for the Hoka brand, acquired in September 2012, includes contingent consideration of up to $2,000 , of which approximately $1,700 has been paid. At June 30, 2016 , the final contingent consideration payment of approximately $300 is pending final disbursement. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files income tax returns in the US federal jurisdiction and various state, local, and foreign jurisdictions. When tax returns are filed, some positions taken are subject to uncertainty about the merits of the position taken or the amount that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which the Company believes it is more likely than not that the position will be sustained upon examination. Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely to be realized upon settlement. The portion of the benefits that exceed the amounts measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying condensed consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon settlement. 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 2011. The Company had no additional accruals for unrecognized tax benefits during the three months ended June 30, 2016 . The balance of gross unrecognized tax benefits at June 30, 2016 is $8,695 , of which $7,482 is reflected in the non-current income tax liability in the condensed consolidated balance sheets and the remainder is included in the current income taxes payable. The accrual relates to tax positions taken in years that are subject to examination. The Company recorded additional accruals for interest and potential penalties of $196 related to income tax matters in interest expense on the Company’s condensed consolidated statements of comprehensive loss during the three months ended June 30, 2016 . At June 30, 2016, accrued interest and potential penalties are $2,038 , of which $1,726 is reflected in the non-current income tax liability in the Company’s consolidated balance sheet and the remainder is reflected in the current income taxes payable. |
Notes Payable and Long Term Deb
Notes Payable and Long Term Debt | 3 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Notes Payable and Long Term Debt | Notes Payable and Long Term Debt Domestic Line of Credit. In August 2015, the Company entered into an amendment to the Second Amended and Restated Credit Agreement with JPMorgan Chase Bank, National Association, as administrative agent, Comerica Bank and HSBC Bank USA, National Association, as co-syndication agents, and the lenders from time to time party thereto (as amended, Second Amended and Restated Credit Agreement) to add certain foreign subsidiaries as borrowers. During the quarter ended June 30, 2016 , the Company borrowed $110,000 and repaid $62,000 . At June 30, 2016 , the Company had $101,000 of outstanding borrowings under the Second Amended and Restated Credit Agreement and outstanding letters of credit of approximately $700 . As a result, as of June 30, 2016, the available borrowings under the Second Amended and Restated Credit Agreement were approximately $298,300 . Amounts outstanding are included in short-term borrowings in the condensed consolidated balance sheet at June 30, 2016 . Subsequent to June 30, 2016 , the Company borrowed $72,000 resulting in a total outstanding balance of approximately $173,700 and available borrowings of approximately $226,300 at August 9, 2016 . The Second Amended and Restated Credit Agreement provides for interest on outstanding borrowings at rates tied to the prime rate or, at the Company's election, tied to the adjusted London Interbank Offered Rate (LIBOR). At June 30, 2016 , the effective interest rate was 1.96% . China Line of Credit. In October 2015, the Company entered into an amendment to its credit facility in China (as amended, Second Amended China Credit Facility) to provide for an increase in the uncommitted revolving line of credit to CNY 150,000 , or approximately $23,000 , including a sublimit of CNY 50,000 , or approximately $8,000 , for the Company's wholly owned subsidiary, Deckers Footwear (Shanghai) Co., LTD. During the quarter ended June 30, 2016 , the Company repaid approximately $5,000 under the Second Amended China Credit Facility, resulting in total outstanding balance of approximately $9,000 and available borrowings of approximately $14,000 at June 30, 2016 . Amounts outstanding are included in short-term borrowings in the condensed consolidated balance sheet at June 30, 2016 . Interest is based on the People’s Bank of China rate, which was 4.35% at June 30, 2016 . Japan Line of Credit. In March 2016, Deckers Japan, G.K., a wholly owned subsidiary of the Company, entered into a credit facility in Japan (Japan Credit Facility) that provides for an uncommitted bilateral revolving line of credit of up to JPY 5,500,000 , or approximately $53,000 , for a maximum term of six months. Subsequent to June 30, 2016 , the Company borrowed approximately $7,100 resulting in a total outstanding balance of approximately $7,100 and available borrowings of approximately $45,900 at August 9, 2016 . The Japan Credit Facility renews annually, and is guaranteed by the Company. Interest is based on the Tokyo Interbank Offered Rate for three months plus 0.40% . At June 30, 2016 , the effective interest rate was 0.46% . There were no borrowings under this agreement at June 30, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations for Product. The Company had $311,139 of outstanding purchase orders with its manufacturers at June 30, 2016 . The Company has an extended design and manufacturing process, which requires it to forecast production volumes and estimate inventory requirements many months before consumers make a decision to purchase its products. The Company generally orders product four to eight months in advance of the anticipated shipment dates based primarily on orders received from wholesale customers and through the DTC segment. Accordingly, the aggregate amount reflects purchase obligations for products that the Company reasonably expects to fulfill in the ordinary course of business. However, a significant portion of the purchase obligations can be cancelled by the Company under certain circumstances. As a result, the amount does not necessarily reflect the dollar amount of the Company's binding commitments or minimum purchase obligations, and instead reflects an estimate of its future payment obligations based on information currently available. Purchase Obligations for Sheepskin. The Company had an aggregate of $78,502 of purchase obligations for sheepskin at June 30, 2016 . These obligations generally arise under two -year supply agreements entered into during the second quarter of fiscal year 2016. The aggregate amount reflects the remaining commitments under these purchase orders, net of any deposits. The Company expects that purchases made under these agreements in the ordinary course of business will eventually exceed the minimum commitment levels, and that any deposits or advances will become fully refundable or reflected as a credit against purchases. Other Purchase Obligations . The Company had an aggregate of $26,152 of other purchase obligations at June 30, 2016 , which generally consisted of approximately $7,000 of material commitments for future capital expenditures, obligations under service contracts, and requirements to pay promotional expenses. Litigation. From time to time, the Company is involved in various legal proceedings and claims arising in the ordinary course of its business. Although the results of legal proceedings and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these ordinary course matters will not, individually or in the aggregate, have a material adverse effect on its business, operating results, financial condition or cash flows. However, regardless of the outcome, litigation can have an adverse impact on the Company because of legal costs, diversion of management time and resources, and other factors. Contingent Consideration. During the three months ended June 30, 2016 , the last contingent consideration payment attributable to the Sanuk brand acquisition was made in the amount of $19,700 . The purchase price for the Hoka brand, acquired in September 2012, includes contingent consideration of up to $2,000 , of which approximately $1,700 has been paid. At June 30, 2016 , the final contingent consideration payment of approximately $300 is pending disbursement. 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 that the likelihood of any payments under any of these arrangements is remote and would be immaterial. This determination was made based on the Company's prior history of insignificant claims and related payments. There are no currently pending claims relating to indemnification matters involving the Company’s intellectual property. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Equity Incentive Plans. In September 2015, the Company's shareholders approved the 2015 Stock Incentive Plan (2015 SIP), which replaced the 2006 Equity Incentive Plan (2006 Plan). The primary purpose of the 2015 SIP is to encourage ownership in the Company by key personnel, whose long-term service is considered essential to the Company’s continued success. The 2015 SIP reserves 1,275,000 shares of the Company’s common stock for issuance to employees, directors, consultants, independent contractors and advisors, plus any additional shares that are forfeited or otherwise terminated under the 2006 Plan. The maximum aggregate number of shares that may be issued to employees under the 2015 SIP through the exercise of incentive stock options is 750,000 . Employee Stock Purchase Plan. In September 2015, the Company's shareholders also approved the 2015 Employee Stock Purchase Plan (2015 ESPP). The primary purpose of the 2015 ESPP is to enhance the Company’s ability to attract and retain the services of eligible employees and provide additional incentives to eligible employees to devote their effort and skill to the Company’s advancement by providing them an opportunity to participate in the ownership of the Company’s stock. The 2015 ESPP provides for the initial authorization of 1,000,000 shares of the Company’s common stock. Eligible employees commenced participation in the 2015 ESPP in March 2016. Each purchase period will be six months in duration and shares will be purchased on the last trading day of the purchase period at a price that reflects a 15% discount to the closing price on that date. Annual Restricted Stock Unit (Annual RSU) Grants. Formerly referred to as Nonvested Stock Unit (NSU) grants, the Company has elected to grant annual RSUs to key personnel. A portion of the annual RSUs are subject to the achievement of both performance and service conditions, and a portion is only subject to service conditions. The annual RSUs granted entitle the recipients to receive shares of the Company's common stock upon vesting. Subject to the achievement of performance and service conditions, the fiscal year 2017 performance-based annual RSUs vest in equal one-third installments over three consecutive years commencing on August 15, 2017. Subject only to service conditions, the time-based annual RSUs vest in equal annual installments over three consecutive years following the date of grant. During the three months ended June 30, 2016 , the Company granted approximately 19,000 performance-based annual RSUs at a weighted-average grant date fair value of $57.02 per share and approximately 51,000 time-based annual RSUs at a weighted-average grant date fair value of $56.64 per share. At June 30, 2016 , the Company believed that the achievement of at least the threshold performance objective of the fiscal year 2017 performance-based annual RSUs was probable, and therefore recognized an immaterial amount of compensation expense accordingly for these awards. At June 30, 2016 , future unrecognized compensation cost for all annual RSUs granted during fiscal year 2017, excluding estimated forfeitures, was approximately $4,000 . Between July 1, 2016 and August 9, 2016 , the Company granted approximately 25,000 time-based annual RSUs at a weighted-average grant date fair value of $59.75 per share. Grants to Directors. On a quarterly basis, the Company grants fully-vested restricted stock awards of its common stock to each of its non-employee directors. The fair value of such awards, which is determined based on the closing price of the common stock at the date of issuance, is expensed on the date of issuance. Stock Repurchase Programs. 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. The Company did not repurchase any stock during the three months ended June 30, 2016 . Since inception through June 30, 2016 , the Company has repurchased approximately 1,797,000 shares under the program for approximately $122,100 , or an average price of $67.95 per share, leaving the remaining approved amount at approximately $77,900 . |
Foreign Currency Exchange Contr
Foreign Currency Exchange Contracts and Hedging | 3 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Foreign Currency Exchange Contracts and Hedging | Foreign Currency Exchange Contracts and Hedging At June 30, 2016 , the Company had foreign currency exchange contracts designated as cash flow hedges with notional amounts totaling approximately $ 112,000 , held by seven counterparties, which will mature at various dates over the next nine months . In addition, the Company had non-designated derivative foreign currency exchange contracts with notional amounts of approximately $15,000 , held by one counterparty, which is expected to mature over the next nine months . During the three months ended June 30, 2016 , the Company settled foreign currency exchange contracts designated as cash flow hedges with notional amounts totaling approximately $3,000 that had been entered into in previous periods. During the three months ended June 30, 2016 , the Company entered into and settled non-designated derivative contracts with total notional amounts of approximately $63,000 . The nonperformance risk of the Company and the counterparties did not have a material impact on the fair value of the derivatives. During the three months ended June 30, 2016 , the designated hedges remained effective. The effective portion of the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. As of June 30, 2016 , the total amount in accumulated other comprehensive loss (see Note 10 “Accumulated Other Comprehensive Loss”) is expected to be reclassified into income within the next 12 months . The following table summarizes the effect of foreign currency exchange contracts designated as cash flow hedging relationships: Three Months Ended 2016 2015 Derivatives in designated cash flow hedging relationships Foreign currency exchange contracts Foreign currency exchange contracts Amount of gain (loss) recognized in other comprehensive income on derivatives (effective portion) $4,464 $(2,353) Location of amount reclassified from accumulated other comprehensive income into income (effective portion) Net sales Net sales Amount of loss reclassified from accumulated other comprehensive income into income (effective portion) $(175) $— Location of amount excluded from effectiveness testing Selling, general and administrative expenses Selling, general and administrative expenses Amount of gain excluded from effectiveness testing $192 $52 The following table summarizes the effect of foreign currency exchange contracts not designated as hedging instruments: Three Months Ended 2016 2015 Derivatives not designated as hedging instruments Foreign currency exchange contracts Foreign currency exchange contracts Location of amount recognized in income on derivatives Selling, general and administrative expenses Selling, general and administrative expenses Amount of (loss) gain recognized in income on derivatives $(591) $865 Subsequent to June 30, 2016 , the Company entered into non-designated derivative foreign currency exchange contracts with notional amounts totaling approximately $77,000 , which are expected to mature over the next six months . Hedging contracts held as of August 9, 2016 were held by a total of eight counterparties. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated balances of the components within accumulated other comprehensive loss were as follows: June 30, March 31, Unrealized gain on foreign currency hedging, net of tax $ 3,061 $ 152 Cumulative foreign currency translation adjustment, net of tax (17,010 ) (20,709 ) Accumulated other comprehensive loss $ (13,949 ) $ (20,557 ) |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share Basic net loss per share represents net loss divided by the weighted-average number of common shares outstanding for the period. Diluted net loss per share represents net loss divided by the weighted-average number of common shares outstanding, including the dilutive impact of potential issuances of common stock. The reconciliations of basic to diluted weighted-average common shares outstanding were as follows: Three Months Ended 2016 2015 Weighted-average shares used in basic computation 32,024,000 33,117,000 Dilutive effect of stock-based awards* — — Weighted-average shares used in diluted computation 32,024,000 33,117,000 *Excluded annual RSUs 267,000 487,000 *Excluded long-term incentive plan RSUs 396,000 487,000 *Excluded non-employee director restricted stock awards (RSAs) 10,000 8,000 *Excluded stock appreciation rights (SARs) 600,000 700,000 *For the three months ended June 30, 2016 and 2015, the Company excluded all RSUs, RSAs and SARs from the diluted net loss per share computation because they were antidilutive due to the net loss during the period. |
Business Segments
Business Segments | 3 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company’s reportable segments include the strategic business units for the worldwide wholesale operations of the UGG brand, Teva brand, Sanuk brand, other brands, and its DTC business. The Company’s other brands consist of Hoka, Ahnu and Koolaburra. The income (loss) from operations for each of the segments includes only those costs that are specifically related to each segment, which consist primarily of cost of sales, costs for research and development, design, selling and marketing, depreciation, amortization, and the costs of employees and their respective expenses that are directly related to each segment. The unallocated corporate overhead costs generally include costs associated with the distribution centers, executive compensation, accounting and finance, legal, information technology, human resources, and facilities, among others. See Note 2 “Restructuring” and the section entitled Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report for further discussion of the change in segment results. Business segment net sales and income (loss) information is summarized as follows: Three Months Ended 2016 2015 Net sales to external customers: UGG wholesale $ 45,901 $ 66,422 Teva wholesale 29,525 37,066 Sanuk wholesale 22,303 28,513 Other brands wholesale 18,411 21,385 Direct-to-Consumer 58,253 60,419 $ 174,393 $ 213,805 Income (loss) from operations: UGG wholesale $ (10,212 ) $ (3,380 ) Teva wholesale 1,862 5,874 Sanuk wholesale 4,181 5,348 Other brands wholesale (1,630 ) (4,000 ) Direct-to-Consumer (19,419 ) (15,205 ) Unallocated overhead costs (53,101 ) (52,345 ) $ (78,319 ) $ (63,708 ) Inter-segment sales from the Company’s wholesale segments to the DTC segment 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 DTC segment. Business segment asset information is summarized as follows: June 30, March 31, Total assets for reportable segments: UGG wholesale $ 402,515 $ 248,937 Teva wholesale 65,070 87,225 Sanuk wholesale 205,089 212,816 Other brands wholesale 66,559 65,072 Direct-to-Consumer 122,934 148,733 $ 862,167 $ 762,783 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 generally include cash and cash equivalents, deferred tax assets, and various other assets shared by the Company’s segments. A reconciliation of total assets from the reportable segments to the condensed consolidated balance sheet is as follows: June 30, March 31, Total assets for reportable segments $ 862,167 $ 762,783 Unallocated cash and cash equivalents 202,309 245,956 Unallocated deferred tax assets 21,038 20,636 Other unallocated corporate assets 272,231 248,693 Consolidated total assets $ 1,357,745 $ 1,278,068 |
Concentration of Business, Sign
Concentration of Business, Significant Customers and Credit Risk | 3 Months Ended |
Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration of Business, Significant Customers and Credit Risk | Concentration of Business, Significant Customers and Credit Risk The Company does not consider international operations to be a separate segment, as management reviews such operations in the aggregate, together with the aforementioned segments. Long-lived assets, which consist of property and equipment, in the US and all other countries combined were as follows: June 30, March 31, US $ 219,072 $ 211,111 All other countries* 26,039 26,135 Total $ 245,111 $ 237,246 *No other country’s long-lived assets comprised more than 10% of total long-lived assets as of June 30, 2016 or March 31, 2016 . 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. Approximately $43,000 , or 24.9 %, and approximately $47,000 , or 21.9% , of the Company's total net sales were denominated in foreign currencies for the three months ended June 30, 2016 and 2015 , respectively. International sales comprised 37.2% and 37.1% of the Company’s total net sales for the three months ended June 30, 2016 and 2015 , respectively. For the three months ended June 30, 2016 and 2015 , no single foreign country comprised more than 10% of total net sales. Management performs regular evaluations concerning the ability of its customers to satisfy their obligations and records a provision for doubtful accounts based on these evaluations. No single customer accounted for more than 10% of net sales for the three months ended June 30, 2016 or 2015 . At June 30, 2016 , the Company had two customers representing 17.6% and 12.0% , respectively, of trade accounts receivable, net. At March 31, 2016, the Company had one customer representing 12.8% of trade accounts receivable, net. 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. The Company began using a new raw material, UGGpure TM , wool woven into a durable backing, in some of its UGG products in 2013 and which the Company currently purchases from one supplier. The other production materials used by the Company 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 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. Furthermore, the price of sheepskin is impacted by demand, industry, and competitors. A portion of the Company’s cash and cash equivalents is held as cash in operating accounts with third-party financial institutions. These balances, at times, exceed the Federal Deposit Insurance Corporation insurance limits. While the Company regularly monitors the cash balances in its operating accounts and adjusts the balances as appropriate, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. The remainder of the Company’s cash and cash equivalents balance is invested in interest bearing funds managed by third-party investment management institutions. These investments may 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. At June 30, 2016 , 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 were as follows: June 30, March 31, Money market fund accounts $ 177,377 $ 195,575 Cash 24,932 50,381 Total cash and cash equivalents $ 202,309 $ 245,956 |
General (Policies)
General (Policies) | 3 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements and, in the opinion of management, reflect all adjustments necessary for a fair presentation for each of the periods presented. The results of operations for interim periods are not necessarily indicative of results to be achieved for full fiscal years or other interim periods. Deckers Outdoor Corporation (the Company) is a global leader in designing, marketing and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high performance activities. The Company’s business is seasonal, with the highest percentage of UGG® (UGG) brand net sales occurring in the quarters ending September 30 and December 31 and the highest percentage of Teva® (Teva) and Sanuk® (Sanuk) brands net sales occurring in the quarters ending March 31 and June 30 of each year. Net sales of the other brands do not have a significant seasonal impact on the Company. The Company sells its products through domestic retailers and international distributors and retailers, as well as directly to end-user consumers through the Direct-to-Consumer (DTC) reporting segment. Independent third parties manufacture all of the Company's products. As contemplated by the SEC under Rule 10-01 of Regulation S-X, the accompanying unaudited condensed consolidated financial statements and accompanying notes have been condensed and do not contain certain information that will be included in the Company’s annual audited consolidated financial statements and accompanying notes thereto. See the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K, for the fiscal year ended March 31, 2016, filed with the SEC on May 31, 2016 (Annual Report on Form 10-K) for further information. |
Use of Estimates | Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in accordance with United States generally accepted accounting principles (US GAAP) requires management to make estimates and assumptions that affect the amounts reported in these unaudited condensed consolidated financial statements and accompanying notes. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management's estimates relate to inventory write-downs, accounts receivable allowances, returns liabilities, stock-based compensation, impairment assessments, depreciation and amortization, income tax liabilities, uncertain tax positions and income taxes receivable, the fair value of financial instruments, and the fair values of acquired intangibles, assets and liabilities. Actual results could differ materially from these estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (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 standard permits the use of either the retrospective or cumulative effect transition method. On August 12, 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers, which provides for a one-year deferral of the effective date of ASU No. 2014-09, as well as early application, which will be effective for the Company on April 1, 2018. In March 2016, the FASB issued ASU No. 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies how to apply the implementation guidance related to principal versus agent considerations within ASU No. 2014-09. The Company is evaluating the effect that these ASUs will have on its condensed 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. However, the adoption of the new revenue standard is not expected to have a material impact on the Company's condensed consolidated financial statements. In April 2015, the 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). On August 18, 2015, the FASB issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which allows an entity to continue to present debt issuance costs related to line of credit arrangements as deferred charges. These ASUs were effective for the Company on April 1, 2016. The Company's adoption of ASU No. 2015-03 and ASU No. 2015-15 has not had and is not expected to have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement, which clarifies whether a cloud computing arrangement should be treated as a software license or a service contract. Customers that have a cloud computing arrangement that includes a software license are required to account for the software license element of the arrangement consistent with the acquisition of other software licenses. Customers that have a cloud computing arrangement that does not include a software license are required to account for the arrangement as a service contract. This ASU was effective for the Company on April 1, 2016. The Company's adoption of ASU No. 2015-05 has not had and is not expected to have a material impact on the Company’s condensed consolidated financial statements or related disclosures. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which changed the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. US GAAP currently requires that, at each financial statement date, entities measure inventory at the lower of cost or market, most commonly the current replacement cost. This ASU is effective for the Company on April 1, 2017, with early adoption permitted. The Company is evaluating the effect that ASU No. 2015-11 will have on its condensed consolidated financial statements and related disclosures, but it is not expected to have a material impact. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires an entity to classify deferred tax assets and liabilities as noncurrent on the balance sheet. Prior to the issuance of the standard, deferred tax assets and liabilities were required to be separated into current and noncurrent amounts on the basis of the classification of the related asset or liability. This ASU was effective for the Company on April 1, 2017, with early adoption permitted. The Company prospectively adopted this ASU as of March 31, 2016 in its Annual Report on Form 10-K. The adoption of ASU No. 2015-17 did not have a material impact on the Company’s condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous US GAAP. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) at fair value and an offsetting right-of-use asset representing its right to use the underlying asset for the lease term. When measuring assets and liabilities arising from a lease, a lessee (and a lessor) should include payments to be made in optional periods only if the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease. Similarly, optional payments to purchase the underlying asset should be included in the measurement of lease assets and lease liabilities only if the lessee is reasonably certain to exercise that purchase option. This ASU is effective for the Company on April 1, 2019. The Company is evaluating the effect that the adoption of this ASU No. 2016-02 will have on its condensed consolidated financial statements and related disclosures. Since the Company utilizes operating leases for most of its facilities and retail stores, it is anticipated that adoption of this ASU will have a material impact on its balance sheet presentation. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires an entity to recognize excess tax benefits and certain tax deficiencies of employee share-based payment awards in the income statement instead of in additional paid-in-capital when the awards vest or are settled, and present excess tax benefits as an operating activity on the statement of cash flows instead of as a financing activity. This ASU also allows entities to repurchase more of an employee’s shares for tax withholding purposes without triggering liability accounting, and to make a policy election to either estimate the number of awards that are expected to vest or to account for forfeitures as they occur. In addition, the cash paid by an entity to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation is required to be classified as a financing activity on its statement of cash flows. This ASU is effective for the Company on April 1, 2017, with early adoption permitted. The Company is evaluating the effect that the adoption of this ASU No. 2016-09 will have on its condensed consolidated financial statements and related disclosures, but it is not expected to have a material impact. |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes these restructuring charges: Lease Termination Costs Severance Costs Leasehold Impairments Software Impairments Other Total Fiscal year 2016 charges $ 8,900 $ 4,000 $ 5,800 $ 3,800 $ 2,300 $ 24,800 Paid in cash (1,200 ) (600 ) — — — (1,800 ) Non-cash — — (5,800 ) (3,800 ) (500 ) (10,100 ) Liability as of March 31, 2016 7,700 3,400 — — 1,800 12,900 Additional charges 1,200 400 100 — — 1,700 Non-cash — — (100 ) — — (100 ) Paid in cash (6,700 ) (2,000 ) — — (1,800 ) (10,500 ) Liability as of June 30, 2016 $ 2,200 $ 1,800 $ — $ — $ — $ 4,000 |
Goodwill and Other Intangible21
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and other intangible assets | The Company’s goodwill and other intangible assets are summarized as follows: Goodwill Other Intangible Assets, Net Balance at March 31, 2016 $ 127,934 $ 83,026 Amortization expense — (2,069 ) Changes in foreign currency exchange rates — (273 ) Balance at June 30, 2016 $ 127,934 $ 80,684 |
Schedule of total goodwill by segment | The Company’s goodwill by segment is summarized as follows: June 30, March 31, UGG brand $ 6,101 $ 6,101 Sanuk brand 113,944 113,944 Other brands 7,889 7,889 Total $ 127,934 $ 127,934 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Company's financial assets and liabilities measured on a recurring basis at fair value | The assets and liabilities that are measured on a recurring basis at fair value are summarized as follows: Fair Value at June 30, Fair Value Measurement Using 2016 Level 1 Level 2 Level 3 Assets (liabilities) at fair value: Nonqualified deferred compensation asset $ 6,259 $ 6,259 $ — $ — Nonqualified deferred compensation liability (6,534 ) (6,534 ) — — Designated derivatives asset 6,199 — 6,199 — Designated derivatives liability (1,029 ) — (1,029 ) — Non-designated derivatives assets 133 — 133 — Contingent consideration for acquisition of business (300 ) — (300 ) — Fair Value at March 31, Fair Value Measurement Using 2016 Level 1 Level 2 Level 3 Assets (liabilities) at fair value: Nonqualified deferred compensation asset $ 6,083 $ 6,083 $ — $ — Nonqualified deferred compensation liability (6,301 ) (6,301 ) — — Designated derivatives asset 2,903 — 2,903 — Designated derivatives liability (2,549 ) — (2,549 ) — Contingent consideration for acquisition of business (20,000 ) — — (20,000 ) |
Foreign Currency Exchange Con23
Foreign Currency Exchange Contracts and Hedging (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of gains and losses related to derivatives designated as hedging instruments | The following table summarizes the effect of foreign currency exchange contracts designated as cash flow hedging relationships: Three Months Ended 2016 2015 Derivatives in designated cash flow hedging relationships Foreign currency exchange contracts Foreign currency exchange contracts Amount of gain (loss) recognized in other comprehensive income on derivatives (effective portion) $4,464 $(2,353) Location of amount reclassified from accumulated other comprehensive income into income (effective portion) Net sales Net sales Amount of loss reclassified from accumulated other comprehensive income into income (effective portion) $(175) $— Location of amount excluded from effectiveness testing Selling, general and administrative expenses Selling, general and administrative expenses Amount of gain excluded from effectiveness testing $192 $52 The following table summarizes the effect of foreign currency exchange contracts not designated as hedging instruments: Three Months Ended 2016 2015 Derivatives not designated as hedging instruments Foreign currency exchange contracts Foreign currency exchange contracts Location of amount recognized in income on derivatives Selling, general and administrative expenses Selling, general and administrative expenses Amount of (loss) gain recognized in income on derivatives $(591) $865 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Loss (AOCL) (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Components of accumulated other comprehensive loss | Accumulated balances of the components within accumulated other comprehensive loss were as follows: June 30, March 31, Unrealized gain on foreign currency hedging, net of tax $ 3,061 $ 152 Cumulative foreign currency translation adjustment, net of tax (17,010 ) (20,709 ) Accumulated other comprehensive loss $ (13,949 ) $ (20,557 ) |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliations of basic to diluted weighted-average common shares outstanding | The reconciliations of basic to diluted weighted-average common shares outstanding were as follows: Three Months Ended 2016 2015 Weighted-average shares used in basic computation 32,024,000 33,117,000 Dilutive effect of stock-based awards* — — Weighted-average shares used in diluted computation 32,024,000 33,117,000 *Excluded annual RSUs 267,000 487,000 *Excluded long-term incentive plan RSUs 396,000 487,000 *Excluded non-employee director restricted stock awards (RSAs) 10,000 8,000 *Excluded stock appreciation rights (SARs) 600,000 700,000 *For the three months ended June 30, 2016 and 2015, the Company excluded all RSUs, RSAs and SARs from the diluted net loss per share computation because they were antidilutive due to the net loss during the period. |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of business segments information | Business segment net sales and income (loss) information is summarized as follows: Three Months Ended 2016 2015 Net sales to external customers: UGG wholesale $ 45,901 $ 66,422 Teva wholesale 29,525 37,066 Sanuk wholesale 22,303 28,513 Other brands wholesale 18,411 21,385 Direct-to-Consumer 58,253 60,419 $ 174,393 $ 213,805 Income (loss) from operations: UGG wholesale $ (10,212 ) $ (3,380 ) Teva wholesale 1,862 5,874 Sanuk wholesale 4,181 5,348 Other brands wholesale (1,630 ) (4,000 ) Direct-to-Consumer (19,419 ) (15,205 ) Unallocated overhead costs (53,101 ) (52,345 ) $ (78,319 ) $ (63,708 ) Inter-segment sales from the Company’s wholesale segments to the DTC segment 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 DTC segment. Business segment asset information is summarized as follows: June 30, March 31, Total assets for reportable segments: UGG wholesale $ 402,515 $ 248,937 Teva wholesale 65,070 87,225 Sanuk wholesale 205,089 212,816 Other brands wholesale 66,559 65,072 Direct-to-Consumer 122,934 148,733 $ 862,167 $ 762,783 |
Schedule of reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | A reconciliation of total assets from the reportable segments to the condensed consolidated balance sheet is as follows: June 30, March 31, Total assets for reportable segments $ 862,167 $ 762,783 Unallocated cash and cash equivalents 202,309 245,956 Unallocated deferred tax assets 21,038 20,636 Other unallocated corporate assets 272,231 248,693 Consolidated total assets $ 1,357,745 $ 1,278,068 |
Concentration of Business, Si27
Concentration of Business, Significant Customers and Credit Risk (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Schedule of long-lived assets, which consist of property and equipment, by major country | Long-lived assets, which consist of property and equipment, in the US and all other countries combined were as follows: June 30, March 31, US $ 219,072 $ 211,111 All other countries* 26,039 26,135 Total $ 245,111 $ 237,246 *No other country’s long-lived assets comprised more than 10% of total long-lived assets as of June 30, 2016 or March 31, 2016 . |
Schedule of the Company's cash and cash equivalents | The Company’s cash and cash equivalents were as follows: June 30, March 31, Money market fund accounts $ 177,377 $ 195,575 Cash 24,932 50,381 Total cash and cash equivalents $ 202,309 $ 245,956 |
Restructuring (Details)
Restructuring (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2016USD ($)store | Jun. 30, 2015USD ($) | Mar. 31, 2016USD ($)store | |
Restructuring Cost and Reserve [Line Items] | |||
Number of Stores | store | 6 | 3 | |
Restructuring costs | $ 1,732 | $ 0 | |
Brand Realignment | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of Stores | store | 24 | ||
Restructuring costs | $ 26,500 | $ 24,800 | |
Restructuring and related cost, expected cost | 4,000 | ||
Minimum | Brand Realignment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 8,000 | ||
Maximum | Brand Realignment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 13,000 |
Restructuring By Type (Details)
Restructuring By Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | |
Restructuring Reserve [Roll Forward] | |||
Fiscal year 2016 charges | $ 1,732 | $ 0 | |
Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Fiscal year 2016 charges | 26,500 | $ 24,800 | |
Paid in cash | (10,500) | (1,800) | |
Non-cash | (100) | (10,100) | |
Liability as of March 31, 2016 | 12,900 | ||
Additional charges | 1,700 | ||
Liability as of June 30, 2016 | 4,000 | 12,900 | |
Lease Termination Costs | Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Fiscal year 2016 charges | 8,900 | ||
Paid in cash | (6,700) | (1,200) | |
Non-cash | 0 | 0 | |
Liability as of March 31, 2016 | 7,700 | ||
Additional charges | 1,200 | ||
Liability as of June 30, 2016 | 2,200 | 7,700 | |
Severance Costs | Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Fiscal year 2016 charges | 4,000 | ||
Paid in cash | (2,000) | (600) | |
Non-cash | 0 | 0 | |
Liability as of March 31, 2016 | 3,400 | ||
Additional charges | 400 | ||
Liability as of June 30, 2016 | 1,800 | 3,400 | |
Leasehold Impairments | Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Fiscal year 2016 charges | 5,800 | ||
Paid in cash | 0 | 0 | |
Non-cash | (100) | (5,800) | |
Liability as of March 31, 2016 | 0 | ||
Additional charges | 100 | ||
Liability as of June 30, 2016 | 0 | 0 | |
Software Impairments | Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Fiscal year 2016 charges | 3,800 | ||
Paid in cash | 0 | 0 | |
Non-cash | 0 | (3,800) | |
Liability as of March 31, 2016 | 0 | ||
Additional charges | 0 | ||
Liability as of June 30, 2016 | 0 | 0 | |
Other | Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Fiscal year 2016 charges | 2,300 | ||
Paid in cash | (1,800) | 0 | |
Non-cash | 0 | (500) | |
Liability as of March 31, 2016 | 1,800 | ||
Additional charges | 0 | ||
Liability as of June 30, 2016 | $ 0 | $ 1,800 |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets (Change in Balance) (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Changes in goodwill | |
Goodwill, net, balance at the beginning of the period | $ 127,934 |
Goodwill, net, balance at the end of the period | 127,934 |
Other intangible assets, net: | |
Other intangible assets, net, balance at beginning of the period | 83,026 |
Amortization expense | (2,069) |
Changes in foreign currency exchange rates | (273) |
Other intangible assets, net, balance at end of the period | $ 80,684 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Segment Information) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Goodwill | ||
Goodwill | $ 127,934 | $ 127,934 |
UGG brand | ||
Goodwill | ||
Goodwill | 6,101 | 6,101 |
Sanuk brand | ||
Goodwill | ||
Goodwill | 113,944 | 113,944 |
Other brands | ||
Goodwill | ||
Goodwill | $ 7,889 | $ 7,889 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2012 |
Sanuk | |||
Contingent consideration | |||
Contingent consideration for acquisition of business | $ 19,700 | ||
Hoka | Contingent consideration arrangement | |||
Contingent consideration | |||
Contingent consideration amount paid | 1,700 | ||
Contingent consideration maximum | $ 2,000 | ||
Accrued expenses | |||
Reconciliation of fair value for acquisition of business, categorized as Level 3 of valuation hierarchy | |||
Deferred compensation, current | 3,468 | $ 308 | |
Accrued expenses | Hoka | Contingent consideration arrangement | |||
Contingent consideration | |||
Contingent liability, current | 300 | ||
Other noncurrent liabilities | |||
Reconciliation of fair value for acquisition of business, categorized as Level 3 of valuation hierarchy | |||
Deferred compensation liability, noncurrent | $ 3,066 | $ 5,993 |
Fair Value Measurements (Levels
Fair Value Measurements (Levels 1-3) (Details) - Recurring basis - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Fair value | ||
Assets (Liabilities) at fair value | ||
Nonqualified deferred compensation asset | $ 6,259 | $ 6,083 |
Nonqualified deferred compensation liability | (6,534) | (6,301) |
Contingent consideration for acquisition of business | (300) | (20,000) |
Level 1 | ||
Assets (Liabilities) at fair value | ||
Nonqualified deferred compensation asset | 6,259 | 6,083 |
Nonqualified deferred compensation liability | (6,534) | (6,301) |
Contingent consideration for acquisition of business | 0 | 0 |
Level 2 | ||
Assets (Liabilities) at fair value | ||
Nonqualified deferred compensation asset | 0 | 0 |
Nonqualified deferred compensation liability | 0 | 0 |
Contingent consideration for acquisition of business | (300) | 0 |
Level 3 | ||
Assets (Liabilities) at fair value | ||
Nonqualified deferred compensation asset | 0 | 0 |
Nonqualified deferred compensation liability | 0 | 0 |
Contingent consideration for acquisition of business | 0 | (20,000) |
Designated as hedging instrument | Fair value | ||
Assets (Liabilities) at fair value | ||
Designated derivatives asset | 6,199 | 2,903 |
Derivatives liability | (1,029) | (2,549) |
Designated as hedging instrument | Level 1 | ||
Assets (Liabilities) at fair value | ||
Designated derivatives asset | 0 | 0 |
Derivatives liability | 0 | 0 |
Designated as hedging instrument | Level 2 | ||
Assets (Liabilities) at fair value | ||
Designated derivatives asset | 6,199 | 2,903 |
Derivatives liability | (1,029) | (2,549) |
Designated as hedging instrument | Level 3 | ||
Assets (Liabilities) at fair value | ||
Designated derivatives asset | 0 | 0 |
Derivatives liability | 0 | $ 0 |
Non-designated derivatives | Fair value | ||
Assets (Liabilities) at fair value | ||
Designated derivatives asset | 133 | |
Non-designated derivatives | Level 1 | ||
Assets (Liabilities) at fair value | ||
Designated derivatives asset | 0 | |
Non-designated derivatives | Level 2 | ||
Assets (Liabilities) at fair value | ||
Designated derivatives asset | 133 | |
Non-designated derivatives | Level 3 | ||
Assets (Liabilities) at fair value | ||
Designated derivatives asset | $ 0 |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Income Tax Contingency [Line Items] | |
Income tax rate reconciliation adjustment for uncertainty in income taxes | $ 8,695 |
Unrecognized tax benefits, income tax penalties and interest expense | 196 |
Unrecognized tax benefits, interest on income taxes accrued | 2,038 |
Other noncurrent liabilities | |
Income Tax Contingency [Line Items] | |
Income tax rate reconciliation adjustment for uncertainty in income taxes | 7,482 |
Unrecognized tax benefits, interest on income taxes accrued | $ 1,726 |
Notes Payable and Long Term D35
Notes Payable and Long Term Debt (Narrative) (Details) $ in Thousands | Aug. 09, 2016USD ($) | May 31, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016JPY (¥) | Mar. 31, 2016USD ($) | Oct. 15, 2015CNY (¥) | Oct. 15, 2015USD ($) |
Second Amended and Restated Credit Agreement, as amended | |||||||
Debt Instrument [Line Items] | |||||||
Long-term line of credit | $ 101,000 | ||||||
Second Amended and Restated Credit Agreement, as amended | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, effective percentage | 1.96% | ||||||
Second Amended China Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of lines of credit | $ 5,000 | ||||||
Line of credit | Second Amended and Restated Credit Agreement, as amended | Subsequent event | |||||||
Debt Instrument [Line Items] | |||||||
Long-term line of credit | $ 173,700 | ||||||
Line of credit | Japan Credit Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Current borrowing capacity | ¥ 5,500,000,000 | $ 53,000 | |||||
Debt instrument, term | 6 months | ||||||
Line of credit | Japan Credit Facility | Tokyo Interbank Offered Rate (TIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, effective percentage | 0.46% | ||||||
Basis spread on variable rate | 0.40% | ||||||
Line of credit | Revolving credit facility | Second Amended and Restated Credit Agreement, as amended | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from lines of credit | $ 110,000 | ||||||
Repayments of lines of credit | 62,000 | ||||||
Letters of credit amount outstanding | 700 | ||||||
Unused borrowing capacity | 298,300 | ||||||
Line of credit | Revolving credit facility | Second Amended and Restated Credit Agreement, as amended | Subsequent event | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from lines of credit | 72,000 | ||||||
Remaining borrowing capacity | 226,300 | ||||||
Line of credit | Revolving credit facility | Second Amended China Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Unused borrowing capacity | 14,000 | ||||||
Additional available credit | ¥ 150,000,000 | $ 23,000 | |||||
Capacity available for fully owned subsidiary | ¥ 50,000,000 | $ 8,000 | |||||
Current line of credit | $ 9,000 | ||||||
Interest rate, effective percentage | 4.35% | ||||||
Line of credit | Revolving credit facility | Japan Credit Facility | Subsequent event | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from lines of credit | 7,100 | ||||||
Remaining borrowing capacity | 45,900 | ||||||
Current line of credit | $ 7,100 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016USD ($)claim | Sep. 30, 2012USD ($) | |
Commitments and Contingencies | ||
Material commitments | $ 26,152 | |
Maximum indemnity period of claims for intellectual property | 5 years | |
Indemnification | ||
Commitments and Contingencies | ||
Number of pending claims | claim | 0 | |
Future capital expenditures | ||
Commitments and Contingencies | ||
Material commitments | $ 7,000 | |
Sanuk | ||
Commitments and Contingencies | ||
Contingent consideration for acquisition of business | 19,700 | |
Contingent consideration arrangement | Hoka | ||
Commitments and Contingencies | ||
Contingent consideration maximum | $ 2,000 | |
Contingent consideration amount paid | 1,700 | |
Accounts payable and accrued liabilities | Contingent consideration arrangement | Hoka | ||
Commitments and Contingencies | ||
Contingent liability, current | 300 | |
Inventories | ||
Commitments and Contingencies | ||
Purchase obligation | $ 78,502 | |
Sheepskin | ||
Commitments and Contingencies | ||
Purchase commitment period | 2 years | |
Inventories | ||
Commitments and Contingencies | ||
Purchase obligation | $ 311,139 | |
Minimum | Inventories | ||
Commitments and Contingencies | ||
Purchase obligation order period | 4 months | |
Maximum | Inventories | ||
Commitments and Contingencies | ||
Purchase obligation order period | 8 months |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Aug. 09, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Jan. 30, 2015 | |
Stockholders' equity | |||||
Compensation cost not yet recognized | $ 4,000,000 | ||||
2015 Stock Incentive Plan | |||||
Stockholders' equity | |||||
Common stock reserved for issuance (in shares) | 1,275,000 | ||||
Maximum number of shares that may be issued through the exercise of incentive stock options | 750,000 | ||||
2015 Stock Incentive Plan | Nonvested stock units issued (NSUs) | |||||
Stockholders' equity | |||||
Vesting rights percent | 33.33% | ||||
Number of shares granted | 19,000 | ||||
Award vesting period of the grants | 3 years | ||||
Weighted average grant date fair value (in USD per share) | $ 57.02 | ||||
2015 Stock Incentive Plan | Time-based equity award | |||||
Stockholders' equity | |||||
Number of shares granted | 51,000 | ||||
Award vesting period of the grants | 3 years | ||||
Weighted average grant date fair value (in USD per share) | $ 56.64 | ||||
2015 Stock Incentive Plan | Time-based equity award | Subsequent event | |||||
Stockholders' equity | |||||
Number of shares granted | 25,000,000 | ||||
Weighted average grant date fair value (in USD per share) | $ 59.75 | ||||
2015 Employee Stock Purchase Plan | |||||
Stockholders' equity | |||||
Common stock reserved for issuance (in shares) | 1,000,000 | ||||
Employee stock purchase plan, purchase period | 6 months | ||||
Employee stock purchase plan discount | 15.00% | ||||
2015 Stock Repurchase Program | |||||
Stockholders' equity | |||||
Maximum stock repurchase amount approved by Board of Directors | $ 200,000,000 | ||||
Treasury stock, number of shares held | 1,797,000,000 | ||||
Treasury stock acquired, average cost per share (in USD per share) | $ 67.95 | ||||
Treasury stock, value | $ 122,100,000 | ||||
Remaining stock repurchase amount approved by Board of Directors | $ 77,900,000 |
Foreign Currency Exchange Con38
Foreign Currency Exchange Contracts and Hedging (Narrative) (Details) $ in Thousands | Aug. 09, 2016USD ($)counterparty | Jun. 30, 2016USD ($)counterparty | Jun. 30, 2015USD ($) |
Foreign currency exchange contracts and hedging | |||
Number of counterparties in derivative contracts | counterparty | 1 | ||
Remaining maturity of foreign currency derivatives (in months) | 9 months | ||
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 other comprehensive income on derivatives (effective portion) | $ 4,464 | $ (2,353) | |
Amount of loss reclassified from accumulated other comprehensive income into income (effective portion) | (175) | 0 | |
Amount of gain excluded from effectiveness testing | 192 | 52 | |
Designated as hedging instrument | Foreign currency exchange contracts | |||
Foreign currency exchange contracts and hedging | |||
Derivative notional amount | $ 112,000 | ||
Number of counterparties in derivative contracts | counterparty | 7 | ||
Derivative, settled during period, notional amount | $ 3,000 | ||
Non-designated derivatives | Foreign currency exchange contracts | |||
Foreign currency exchange contracts and hedging | |||
Derivative notional amount | 15,000 | ||
Derivative, entered into and settled during period, notional amount | 63,000 | ||
Summary of the effect of derivative instruments on the consolidated statements of income | |||
Amount of (loss) gain recognized in income on derivatives | $ (591) | $ 865 | |
Non-designated derivatives | Foreign currency exchange contracts | Subsequent event | |||
Foreign currency exchange contracts and hedging | |||
Derivative notional amount | $ 77,000 | ||
Number of counterparties in derivative contracts | counterparty | 8 | ||
Remaining maturity of foreign currency derivatives (in months) | 6 months |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Loss (AOCL) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Accumulated other comprehensive loss | ||
Unrealized gain on foreign currency hedging, net of tax | $ 3,061 | $ 152 |
Cumulative foreign currency translation adjustment, net of tax | (17,010) | (20,709) |
Accumulated other comprehensive loss | $ (13,949) | $ (20,557) |
Net Loss per Share (Additional
Net Loss per Share (Additional Information) (Details) - shares | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Reconciliations of basic to diluted weighted-average common shares outstanding | ||
Weighted-average shares used in basic computation | 32,024,000 | 33,117,000 |
Dilutive effect of stock-based awards | 0 | 0 |
Weighted-average shares used in diluted computation | 32,024,000 | 33,117,000 |
Excluded NSUs | ||
Options excluded in the computation of diluted income per share | ||
Options excluded in the computation of diluted income per share (in shares) | 267,000 | 487,000 |
Excluded RSUs | ||
Options excluded in the computation of diluted income per share | ||
Options excluded in the computation of diluted income per share (in shares) | 396,000 | 487,000 |
Restricted Stock | ||
Options excluded in the computation of diluted income per share | ||
Options excluded in the computation of diluted income per share (in shares) | 10,000 | 8,000 |
Excluded stock appreciation rights (SARs) | ||
Options excluded in the computation of diluted income per share | ||
Options excluded in the computation of diluted income per share (in shares) | 600,000 | 700,000 |
Business Segments (Wholesale Op
Business Segments (Wholesale Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | |
Business segment information | |||
Net sales to external customers | $ 174,393 | $ 213,805 | |
Income (loss) from operations | (78,319) | (63,708) | |
Total assets for reportable segments | 1,357,745 | $ 1,278,068 | |
Reportable segments | |||
Business segment information | |||
Total assets for reportable segments | 862,167 | 762,783 | |
UGG wholesale | |||
Business segment information | |||
Net sales to external customers | 45,901 | 66,422 | |
Income (loss) from operations | (10,212) | (3,380) | |
Total assets for reportable segments | 402,515 | 248,937 | |
Teva wholesale | |||
Business segment information | |||
Net sales to external customers | 29,525 | 37,066 | |
Income (loss) from operations | 1,862 | 5,874 | |
Total assets for reportable segments | 65,070 | 87,225 | |
Sanuk wholesale | |||
Business segment information | |||
Net sales to external customers | 22,303 | 28,513 | |
Income (loss) from operations | 4,181 | 5,348 | |
Total assets for reportable segments | 205,089 | 212,816 | |
Other wholesale | |||
Business segment information | |||
Net sales to external customers | 18,411 | 21,385 | |
Income (loss) from operations | (1,630) | (4,000) | |
Total assets for reportable segments | 66,559 | 65,072 | |
Direct-to-Consumer | |||
Business segment information | |||
Net sales to external customers | 58,253 | 60,419 | |
Income (loss) from operations | (19,419) | (15,205) | |
Total assets for reportable segments | 122,934 | $ 148,733 | |
Unallocated to segments | |||
Business segment information | |||
Income (loss) from operations | $ (53,101) | $ (52,345) |
Business Segments (Assets) (Det
Business Segments (Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 |
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ||||
Total assets for reportable segments | $ 1,357,745 | $ 1,278,068 | ||
Unallocated cash and cash equivalents | 202,309 | 245,956 | $ 168,744 | $ 225,143 |
Consolidated total assets | 1,357,745 | 1,278,068 | ||
Reportable segments | ||||
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ||||
Total assets for reportable segments | 862,167 | 762,783 | ||
Consolidated total assets | 862,167 | 762,783 | ||
Unallocated to segments | ||||
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ||||
Unallocated cash and cash equivalents | 202,309 | 245,956 | ||
Unallocated deferred tax assets | 21,038 | 20,636 | ||
Other unallocated corporate assets | $ 272,231 | $ 248,693 |
Concentration of Business, Si43
Concentration of Business, Significant Customers and Credit Risk (Details) $ in Thousands | Jun. 30, 2016USD ($)suppliertannery | Mar. 31, 2016USD ($) | Jun. 30, 2016USD ($)suppliertannery | Mar. 31, 2016USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) |
Concentration of Business, Significant Customers and Credit Risk [Line Items] | ||||||
Property and equipment, net | $ 245,111 | $ 237,246 | $ 245,111 | $ 237,246 | ||
Number of tanneries | tannery | 2 | 2 | ||||
Number of suppliers | supplier | 1 | 1 | ||||
Money market fund accounts | $ 177,377 | 195,575 | $ 177,377 | 195,575 | ||
Cash | 24,932 | 50,381 | 24,932 | 50,381 | ||
Total cash and cash equivalents | $ 202,309 | $ 245,956 | $ 202,309 | $ 245,956 | $ 168,744 | $ 225,143 |
Long-lived assets | ||||||
Concentration of Business, Significant Customers and Credit Risk [Line Items] | ||||||
Concentration risk (as a percent) | 10.00% | 10.00% | ||||
International net sales | ||||||
Concentration of Business, Significant Customers and Credit Risk [Line Items] | ||||||
Concentration risk (as a percent) | 37.20% | 37.10% | ||||
Concentration risk benchmark (as a percent) | 10.00% | |||||
Net trade accounts receivable | ||||||
Concentration of Business, Significant Customers and Credit Risk [Line Items] | ||||||
Concentration Risk, Customer | two | one | ||||
Customer One | Net trade accounts receivable | ||||||
Concentration of Business, Significant Customers and Credit Risk [Line Items] | ||||||
Concentration risk (as a percent) | 17.60% | |||||
Customer Two | Net trade accounts receivable | ||||||
Concentration of Business, Significant Customers and Credit Risk [Line Items] | ||||||
Concentration risk (as a percent) | 12.00% | 12.80% | ||||
US | ||||||
Concentration of Business, Significant Customers and Credit Risk [Line Items] | ||||||
Property and equipment, net | $ 219,072 | $ 211,111 | $ 219,072 | $ 211,111 | ||
All other countries | ||||||
Concentration of Business, Significant Customers and Credit Risk [Line Items] | ||||||
Property and equipment, net | $ 26,039 | $ 26,135 | $ 26,039 | $ 26,135 | ||
Concentration risk (as a percent) | 24.90% | 21.90% | ||||
Revenue, Net | $ 43,000 | $ 47,000 |