Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | May 12, 2017 | Sep. 30, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | DECKERS OUTDOOR CORP | ||
Entity Central Index Key | 910,521 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,897,849,329 | ||
Entity Common Stock, Shares Outstanding | 31,990,065 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 291,764 | $ 245,956 |
Trade accounts receivable, net of allowances ($32,354 and $30,195 as of March 31, 2017 and 2016, respectively) | 158,643 | 160,154 |
Inventories, net of reserves ($7,638 and $7,303 as of March 31, 2017 and 2016, respectively) | 298,851 | 299,911 |
Prepaid expenses | 15,996 | 18,249 |
Other current assets | 30,781 | 38,039 |
Income tax receivable | 24,786 | 23,456 |
Total current assets | 820,821 | 785,765 |
Property and equipment, net of accumulated depreciation ($190,758 and $163,807 as of March 31, 2017 and 2016, respectively) | 225,531 | 237,246 |
Goodwill | 13,990 | 127,934 |
Other intangible assets, net of accumulated amortization ($54,361 and $45,302 as of March 31, 2017 and 2016, respectively) | 65,138 | 83,026 |
Deferred tax assets | 44,708 | 20,636 |
Other assets | 21,592 | 23,461 |
Total assets | 1,191,780 | 1,278,068 |
Current liabilities: | ||
Short-term borrowings | 549 | 67,475 |
Trade accounts payable | 95,893 | 100,593 |
Accrued payroll | 22,608 | 20,625 |
Other accrued expenses | 31,816 | 39,449 |
Income taxes payable | 2,719 | 6,461 |
Value added tax payable | 5,466 | 3,895 |
Total current liabilities | 159,051 | 238,498 |
Long-term liabilities: | ||
Mortgage payable | 32,082 | 32,631 |
Income tax liability | 13,216 | 9,073 |
Deferred rent obligations | 18,433 | 16,139 |
Other long-term liabilities | 14,743 | 14,256 |
Total long-term liabilities | 78,474 | 72,099 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock ($0.01 par value; 125,000 shares authorized; shares issued and outstanding of 31,987 and 32,020 as of March 31, 2017 and 2016, respectively) | 320 | 320 |
Additional paid-in capital | 160,797 | 161,259 |
Retained earnings | 819,589 | 826,449 |
Accumulated other comprehensive loss | (26,451) | (20,557) |
Total stockholders' equity | 954,255 | 967,471 |
Total liabilities and stockholders' equity | $ 1,191,780 | $ 1,278,068 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances (in dollars) | $ 32,354 | $ 30,195 |
Inventory reserves | 7,638 | 7,303 |
Accumulated depreciation | 190,758 | 163,807 |
Accumulated amortization | $ 54,361 | $ 45,302 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 125,000,000 | 125,000,000 |
Common stock, issued shares (in shares) | 31,987,000 | 32,020,000 |
Common stock, outstanding shares (in shares) | 31,987,000 | 32,020,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 1,790,147 | $ 1,875,197 | $ 1,817,057 |
Cost of sales | 954,912 | 1,028,529 | 938,949 |
Gross profit | 835,235 | 846,668 | 878,108 |
Selling, general and administrative expenses | 837,154 | 684,541 | 653,689 |
(Loss) income from operations | (1,919) | 162,127 | 224,419 |
Other expense (income), net: | |||
Interest income | (778) | (420) | (207) |
Interest expense | 7,319 | 5,814 | 4,220 |
Other income, net | (1,474) | (152) | (733) |
Total other expense, net | 5,067 | 5,242 | 3,280 |
(Loss) income before income taxes | (6,986) | 156,885 | 221,139 |
Income tax (benefit) expense | (12,696) | 34,620 | 59,359 |
Net income | 5,710 | 122,265 | 161,780 |
Other comprehensive (loss) income, net of tax: | |||
Unrealized gain on foreign currency exchange rate hedges | 704 | 461 | 450 |
Foreign currency translation adjustment | (6,598) | (550) | (18,875) |
Total other comprehensive loss | (5,894) | (89) | (18,425) |
Comprehensive (loss) income | $ (184) | $ 122,176 | $ 143,355 |
Net income per share: | |||
Basic (in dollars per share) | $ 0.18 | $ 3.76 | $ 4.70 |
Diluted (in dollars per share) | $ 0.18 | $ 3.70 | $ 4.66 |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 32,000 | 32,556 | 34,433 |
Diluted (in shares) | 32,355 | 33,039 | 34,733 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Mar. 31, 2014 | 34,624 | ||||
Beginning balance at Mar. 31, 2014 | $ 888,849 | $ 346 | $ 146,731 | $ 743,815 | $ (2,043) |
Increase (Decrease) in Stockholders' Equity | |||||
Stock compensation expense (in shares) | 11 | ||||
Stock compensation expense | 13,524 | 13,524 | |||
Shares issued upon vesting (in shares) | 93 | ||||
Shares issued upon vesting | 0 | $ 1 | (1) | ||
Excess tax benefit from stock compensation | 4,197 | 4,197 | |||
Shares withheld for taxes | (5,674) | (5,674) | |||
Stock repurchase (in shares) | (1,436) | ||||
Repurchases of common stock | (107,239) | $ (14) | (107,225) | ||
Net income | 161,780 | 161,780 | |||
Total other comprehensive loss | (18,425) | (18,425) | |||
Ending balance (in shares) at Mar. 31, 2015 | 33,292 | ||||
Ending balance at Mar. 31, 2015 | 937,012 | $ 333 | 158,777 | 798,370 | (20,468) |
Increase (Decrease) in Stockholders' Equity | |||||
Stock compensation expense (in shares) | 16 | ||||
Stock compensation expense | 6,622 | 6,622 | |||
Shares issued upon vesting (in shares) | 132 | ||||
Shares issued upon vesting | 0 | $ 1 | (1) | ||
Excess tax benefit from stock compensation | 471 | 471 | |||
Shares withheld for taxes | (4,610) | (4,610) | |||
Stock repurchase (in shares) | (1,420) | ||||
Repurchases of common stock | (94,200) | $ (14) | (94,186) | ||
Net income | 122,265 | 122,265 | |||
Total other comprehensive loss | (89) | (89) | |||
Ending balance (in shares) at Mar. 31, 2016 | 32,020 | ||||
Ending balance at Mar. 31, 2016 | 967,471 | $ 320 | 161,259 | 826,449 | (20,557) |
Increase (Decrease) in Stockholders' Equity | |||||
Stock compensation expense (in shares) | 23 | ||||
Stock compensation expense | 6,175 | 6,175 | |||
Shares issued upon vesting (in shares) | 166 | ||||
Shares issued upon vesting | 798 | $ 2 | 796 | ||
Excess tax benefit from stock compensation | 100 | 100 | |||
Shares withheld for taxes | (7,533) | (7,533) | |||
Stock repurchase (in shares) | (222) | ||||
Repurchases of common stock | (12,572) | $ (2) | (12,570) | ||
Net income | 5,710 | 5,710 | |||
Total other comprehensive loss | (5,894) | (5,894) | |||
Ending balance (in shares) at Mar. 31, 2017 | 31,987 | ||||
Ending balance at Mar. 31, 2017 | $ 954,255 | $ 320 | $ 160,797 | $ 819,589 | $ (26,451) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 5,710 | $ 122,265 | $ 161,780 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and accretion | 52,628 | 50,024 | 49,293 |
Change in fair value of contingent consideration | 0 | (4,411) | (3,574) |
Provision for doubtful accounts, net | 2,847 | 5,120 | 1,107 |
Deferred (benefit) tax provision | (24,495) | 8,167 | 9,970 |
Stock-based compensation | 6,175 | 6,622 | 13,524 |
Loss (gain) on sale of assets | 538 | (1,338) | 0 |
Impairment of goodwill | 113,944 | 0 | 0 |
Impairment of long-lived assets | 13,222 | 9,773 | 0 |
Restructuring costs | 29,087 | 24,856 | 0 |
Other | (71) | 56 | 2,969 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable, net | (1,336) | (23,545) | (36,885) |
Inventories, net | 1,060 | (61,492) | (26,748) |
Prepaid expenses and other current assets | 7,975 | (3,681) | (10,376) |
Income tax receivable | (1,331) | (8,286) | (15,170) |
Other assets | 2,259 | (3,082) | (144) |
Trade accounts payable | (7,825) | 14,775 | 8,912 |
Contingent consideration | 0 | (819) | (364) |
Accrued expenses | (990) | (16,221) | 3,761 |
Income taxes payable | (3,743) | (397) | 4,883 |
Long-term liabilities | 3,023 | 7,195 | 6,716 |
Net cash provided by operating activities | 198,677 | 125,581 | 169,654 |
Cash flows from investing activities: | |||
Purchases of property and equipment, net | (44,499) | (65,356) | (91,147) |
Purchases of tangible, intangible, and other assets, net | 0 | (4,700) | (9,489) |
Proceeds from sale of assets | 0 | 2,835 | 0 |
Net cash used in investing activities | (44,499) | (67,221) | (100,636) |
Cash flows from financing activities: | |||
Proceeds from short-term borrowings | 405,988 | 449,200 | 199,784 |
Repayments of short-term borrowings | (468,938) | (387,120) | (201,705) |
Proceeds from issuance of stock under the employee stock purchase plan | 798 | 0 | 0 |
Cash paid for shares withheld for taxes | (7,865) | (3,691) | (5,674) |
Excess tax benefit from stock compensation | 100 | 471 | 4,197 |
Cash paid for repurchases of common stock | (12,572) | (94,200) | (107,239) |
Contingent consideration paid | (20,058) | (445) | (115) |
Loan origination costs on short-term borrowings | 0 | (62) | (818) |
Proceeds from mortgage loan | 0 | 0 | 33,931 |
Mortgage loan origination costs | 0 | 0 | (338) |
Repayment of mortgage principal | (523) | (493) | (283) |
Net cash used in financing activities | (103,070) | (36,340) | (78,260) |
Effect of foreign currency exchange rates on cash | (5,300) | (1,207) | (10,703) |
Net change in cash and cash equivalents | 45,808 | 20,813 | (19,945) |
Cash and cash equivalents at beginning of period | 245,956 | 225,143 | 245,088 |
Cash and cash equivalents at end of period | 291,764 | 245,956 | 225,143 |
Cash paid (refunded) during the period for: | |||
Income taxes, net of refunds ($17,132, $501, and $4,701 as of March 31, 2017, 2016 and 2015, respectively) | 14,099 | 29,916 | 53,504 |
Proceeds from Income Tax Refunds | 17,132 | 501 | 4,701 |
Interest | 5,494 | 4,640 | 4,315 |
Non-cash investing and financing activities: | |||
Accrued for purchases of property and equipment | 1,101 | 2,640 | 3,419 |
Accrued for asset retirement obligations | 2,359 | 1,394 | 786 |
Accrued for shares withheld for taxes | $ 587 | $ 919 | $ 0 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Summary of Significant Accounting Policies | The Company and Summary of Significant Accounting Policies The Company and Basis of Presentation The consolidated financial statements and notes thereto include the accounts of Deckers Outdoor Corporation and its wholly-owned subsidiaries (collectively referred to as the "Company"). Accordingly, all references herein to Deckers Outdoor Corporation or "Deckers" include the consolidated results of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Deckers Outdoor Corporation is a global leader in designing, marketing and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high performance activities. As part of its Omni-Channel platform, the Company's brands are aligned across its Fashion Lifestyle group (the UGG and Koolaburra brands) and Performance Lifestyle group (the Teva, Sanuk and Hoka brands). The Company sells its products through quality domestic and international retailers, international distributors, and directly to its end-user consumers both domestically and internationally through its Direct-to-Consumer (DTC) business, which is comprised of its retail stores and E-Commerce websites. Independent third party contractors manufacture all of the Company's products. The Company has five reportable operating segments consisting of the strategic business units for the worldwide wholesale operations of the UGG brand, Teva brand, Sanuk brand, other brands, and DTC. The Company's other brands currently consist of the Hoka, Ahnu and Koolaburra brands. The Company's business is seasonal, with the highest percentage of UGG brand net sales occurring in the quarters ending September 30th and December 31st and the highest percentage of Teva and Sanuk brand net sales occurring in the quarters ending March 31st and June 30th of each year. Net sales of other brands do not have significant seasonal impact on the Company. The Company was incorporated in 1975 under the laws of the State of California and was reincorporated under the laws of the State of Delaware in 1993. Certain reclassifications were made for all prior periods presented including the years ended March 31, 2016 and 2015, to conform to the current period presentation. Reportable Operating Segments During the first quarter of fiscal year 2016, the Company changed its reportable operating segments to combine the previously separated retail store and E-Commerce operating components into one DTC reportable operating segment. The Company now has five reportable operating segments including the strategic business units for the worldwide wholesale operations of the UGG brand, Teva brand, Sanuk brand, other brands, and DTC. It is by these reportable operating segments that information is reported to the Chief Operating Decision Maker, who is the principal executive officer. The Company performs an annual analysis of the appropriateness of its reportable operating segments. Refer to Note 12, "Reportable Operating Segments", for further information about the Company's reportable operating segments. Use of Estimates The preparation of the Company's consolidated financial statements and notes thereto are in accordance with United States generally accepted accounting principles (US GAAP), which requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and notes thereto. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to inventory write-downs, accounts receivable allowances, returns liabilities, stock-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 assets and liabilities, including goodwill and other intangible assets. These estimates are based on information available as of the date of the consolidated financial statements and notes thereto. For the reasons stated, actual results could differ materially from these estimates. Summary of Significant Accounting Policies Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents included $198,992 and $195,575 of money market funds as of March 31, 2017 and 2016 , respectively. Allowance for Doubtful Accounts The Company provides an allowance against trade accounts receivable for estimated losses that may result from customers' inability to pay. The Company determines the amount of the allowance by analyzing known uncollectible accounts, aged trade accounts receivables, economic conditions and forecasts, historical experience and the customers' credit-worthiness. Trade accounts receivable that are subsequently determined to be uncollectible are charged or written off against this allowance. Write-offs against this allowance are recorded in selling, general and administrative (SG&A) expenses in the consolidated statements of comprehensive income (loss). The allowance includes specific allowances for trade accounts, all or a portion of which are identified as potentially uncollectible, plus a non-specific allowance for the balance of accounts based on the Company's historical loss experience. Allowances have been established for all projected losses of this nature. Allowance for Sales Discounts The Company provides an allowance against sales discounts for wholesale sales and resulting trade accounts receivable, which reflects a discount that customers may take, generally based upon meeting certain order, shipment and payment terms. The Company uses the amount of the discounts that are available to be taken against the period-end trade accounts receivable to estimate and record a corresponding reserve for sales discounts. Additions to the allowance are recorded against gross sales in the consolidated statements of comprehensive income (loss) and write-offs are recorded against the allowance in the consolidated balance sheets. Allowance for Chargebacks The Company provides an allowance against chargebacks from wholesale customers. When customers pay their invoices, they may take deductions for chargebacks against their invoices, which are often valid, and can include chargebacks for price differences, discounts and short shipments. Therefore, the Company records an allowance for the balance of chargebacks that are outstanding in the accounts receivable balance as of the end of each period, along with an estimated reserve for chargebacks that have not yet been taken against outstanding accounts receivable balances. This estimate is based on historical trends of the timing and amount of chargebacks taken against wholesale customer invoices. Additions to the allowance are recorded against gross sales in the consolidated statements of comprehensive income (loss) and write-offs are recorded against the allowance in the consolidated balance sheets. Allowance for Sales Returns and Sales Returns Liability The Company provides an allowance for anticipated future returns of goods shipped prior to period end and a liability for anticipated returns of goods sold direct to consumers. In general, the Company accepts returns for damaged or defective products. The Company also has a policy whereby returns are accepted from DTC customers for a 30 -day period. The Company bases the amounts of the allowance and liability on any approved customer requests for returns, historical returns experience, and any recent events that could result in a change from historical returns rates, among other factors. Changes to the allowance and returns liability are recorded against gross sales in the consolidated statements of comprehensive income (loss). Inventories Inventories, principally finished goods on hand and in transit, are stated at the lower of cost (first-in, first-out method) or market (net realizable value). Cost includes initial molds and tooling that are amortized over the life of the mold in cost of sales in the consolidated statements of comprehensive income (loss). Cost also includes shipping and handling fees and costs, which are subsequently expensed to cost of sales. Market values are determined by historical experience with discounted sales, industry trends and the retail environment. Property and Equipment, Depreciation and Amortization Property and equipment is stated at cost less accumulated depreciation and amortization, and generally has a useful life expectancy of at least one year. Property and equipment includes tangible, non-consumable items owned by the Company valued at or above $3 , certain computer software costs and internal or external computer system consulting work valued at or above $3 as defined below, and portable electronic devices valued at or above $1.5 . Tangible, non-consumable items below these amounts are expensed. The value includes the purchase price, sales tax and costs to acquire (shipping and handling), install (excluding site preparation costs), secure and prepare the item for its intended use. Depreciation of property and equipment is calculated using the straight-line method based on estimated useful lives, as summarized below. Capitalized website costs, which are included in the machinery and equipment category below, are immaterial to the Company's consolidated financial statements. Leasehold improvements are amortized to their residual value, if any, on the straight-line basis over their estimated economic useful lives or the lease term, whichever is shorter. The Company allocates depreciation and amortization of property and equipment to cost of sales and SG&A expenses in the consolidated statements of comprehensive income (loss). The majority of the Company's depreciation and amortization, which arises from its Enterprise Resource Planning systems, warehouses, corporate headquarters and retail stores, due to the nature of its operations, is included in SG&A expenses in the consolidated statements of comprehensive income (loss). The Company outsources all manufacturing; therefore, the amount allocated to cost of sales is not material. Property and equipment is summarized as follows: As of March 31, Useful life (years) 2017 2016 Land Indefinite $ 32,843 $ 25,543 Building 39.5 38,990 38,920 Machinery and equipment 1-10 199,602 189,085 Furniture and fixtures 1-7 38,720 38,948 Leasehold improvements 1-11 106,134 108,557 Gross property and equipment 416,289 401,053 Less accumulated depreciation and amortization 190,758 163,807 Property and equipment, net $ 225,531 $ 237,246 During the years ended March 31, 2017 and 2016 , the Company recognized total impairment losses for retail store related fixed assets and software of approximately $11,300 and $19,000 , respectively. Goodwill and Other Intangible Assets Intangible assets consist primarily of indefinite-lived trademarks and definite-lived trademarks, customer and distributor relationships, patents, lease rights, and non-compete agreements arising from the application of purchase accounting. Definite-lived intangible assets are amortized over their estimated useful lives to their estimated residual values, if any, on a straight-line basis and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable based on estimated undiscounted cash flows. If impaired, the asset or asset group is written down to fair value based either on discounted cash flows or appraised values. Goodwill and indefinite-lived intangible assets are not amortized, but are instead tested annually for impairment. Goodwill is initially recorded as the excess of the purchase price over the fair value of the net assets acquired in a business combination. The Company first assesses qualitative factors to determine whether it is necessary to perform a quantitative assessment of the indefinite-lived intangible asset. The Company does not calculate the fair value of the indefinite-lived intangible asset unless the Company determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. If the Company concludes that it is more likely than not that its fair value is less than its carrying amount, then the Company compares the fair value of the indefinite-lived intangible asset to its carrying amount, and if the fair value of the indefinite-lived intangible asset exceeds its carrying amount, no impairment charge will be recognized. If the fair value of the indefinite-lived intangible asset is less than its carrying amount, the Company will record an impairment charge to write down the indefinite-lived intangible asset to its fair value. Impairment and amortization are recorded in SG&A expenses in the consolidated statements of comprehensive income (loss). If, as of the time of conducting the impairment test, it is determined that the value of the reporting unit the acquired net assets were assigned to, as determined by reference to product sales, operating margins or other indicators of value associated with the reporting unit, has declined to a point that the fair value of the reporting unit is below its carrying amount, the Company may be required to write down the amount of goodwill (i.e. take an impairment charge). The goodwill impairment evaluation involves valuing the Company’s various reporting units that carry goodwill, which are currently the same as the Company’s reportable operating segments. Refer to Note 12, "Reportable Operating Segments", for further information on the Company's reportable operating segments. In general, conditions that may indicate impairment include, but are not limited to: a significant adverse change in customer demand or business climate that could affect the value of an asset; change in market share; budget-to-actual performance; consistency of operating margins and capital expenditures; changes in management or key personnel; or changes in general economic conditions. The Company evaluates the Sanuk brand's wholesale reportable segment goodwill and the Teva brand's indefinite-lived trademarks for impairment at October 31st of each year, and evaluates the UGG brand and other brands’ goodwill for impairment at December 31st of each year. The timing of the annual impairment evaluation is prescribed by applicable accounting guidance. The Company also performs interim impairment evaluations of goodwill and indefinite-lived intangible assets if events or changes in circumstances between annual tests indicate additional testing is warranted to determine if goodwill may be impaired. The goodwill impairment test is a two-step quantitative process that combines a market and income approach, which involves the use of estimates and assumptions related to the fair value of the reporting units with which goodwill is associated. In the first step, the Company compares the fair value of each reporting unit with goodwill to its carrying value. The Company determines the fair value of its reporting unit with goodwill using a combination of a discounted cash flow analysis and a market value analysis. For purposes of assessing the fair value, the Company uses best estimates and assumptions, including future sales and operating results, and other factors that could affect fair value or otherwise indicate potential impairment. The Company also considers the reporting units' projected ability to generate income from operations and positive cash flow in future periods, as well as perceived changes in consumer demand, and acceptance of products or factors impacting the industry generally. The fair value assessment could change materially if different estimates and assumptions were used. Furthermore, the estimates and assumptions used to calculate fair value of the reporting unit may change from period to period based upon a number of factors, including actual and projected operating results, declining market conditions, changes in the retail and E-Commerce environment, as well as changes in the competitive environment, and are subject to a high degree of uncertainty. Changes in estimates and assumptions used to determine whether impairment exists, or changes in actual results compared to expected results, could result in additional impairment charges in future periods. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform step two of the goodwill impairment test in order to determine the impairment charge, if any. Step two of the goodwill impairment test involves a hypothetical allocation of the estimated fair value of the reporting unit to its net tangible and intangible assets (excluding goodwill) as if the reporting unit were newly acquired, which results in an implied fair value of the goodwill. If the implied fair value of goodwill, as determined by this hypothetical allocation of assets, is less than the carrying value, an impairment charge is recognized for the difference. Refer to Note 3, "Goodwill and Other Intangible Assets", for further information on the Company's goodwill and intangible assets and annual impairment analysis results. Refer to Note 4, "Fair Value Measurements", for further information on the definition of fair value and related inputs. Accounting for Long-Lived Assets Other long-lived assets, such as machinery and equipment, internal use software, and leasehold improvements, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount exceeds the estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount exceeds the fair value of the asset. At least quarterly, the Company evaluates whether any impairment-triggering events, including the following, have occurred which would require such asset groups to be tested for impairment: • a significant decrease in the market price of a long-lived asset group; • a significant adverse change in the extent or manner in which a long-lived asset group is being used or in its physical condition; • a significant adverse change in legal factors or in business climate that could affect the value of a long-lived asset group, including an adverse action or assessment by a regulator; • an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset group; • a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset group; or • a current expectation that, more likely than not, a long-lived asset group will be sold or otherwise disposed of significantly before the end of its previously-estimated useful life. When an impairment-triggering event has occurred, the Company tests for recoverability of the asset group's carrying value using estimates of undiscounted future cash flows based on the existing service potential of the applicable asset group. In determining the service potential of a long-lived asset group, the Company considers its remaining useful life, cash-flow generating capacity, and physical output capacity. These estimates include the undiscounted cash flows associated with future expenditures necessary to maintain the existing service potential. Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The Company assesses potential impairment of its retail group long-lived assets by comparing projected 12 -month store cash flows to the current carrying value of the store's long-lived assets. Stores that have been opened for more than one year, or have otherwise been identified by management as having one or more indicators of impairment, with projected 12 -month cash flows less than the current carrying amount of the store's long-lived assets are then reviewed to determine if an impairment exists. An impairment loss, if any, would only reduce the carrying amount of long-lived assets in the group based on the fair value of the asset group. Impairment is recorded in SG&A expenses in the consolidated statements of comprehensive income (loss). Derivative Instruments and Hedging Activities The Company transacts business in various foreign currencies and has international sales and expenses denominated in foreign currencies, subjecting the Company to foreign currency exchange rate risk. The Company may enter into foreign currency exchange rate forward or option contracts, generally with maturities of 15 months or less, to reduce the volatility of cash flows primarily related to forecasted revenue denominated in certain foreign currencies. In addition, the Company utilizes foreign currency exchange rate contracts and other derivative instruments to mitigate foreign currency exchange rate risk associated with foreign currency-denominated assets and liabilities, primarily intercompany balances. The Company does not use foreign currency exchange rate contracts for trading purposes. Certain of the Company's foreign currency exchange rate forward contracts are designated cash flow hedges of forecasted sales (Designated Derivative Contracts) and are subject to foreign currency exchange rate risk. These contracts allow the Company to sell Euros and British Pounds in exchange for US dollars at specified contract rates. Forward contracts are used to hedge forecasted sales over specific quarters. Changes in the fair value of Designated Derivative Contracts are recognized as a component of accumulated other comprehensive income (loss) (OCI) within stockholders' equity, and are recognized in the consolidated statements of comprehensive income (loss) during the period which approximates the time the corresponding third-party sales occur. The Company may also enter into foreign currency exchange rate contracts that are not designated as hedging instruments (Non-Designated Derivative Contracts) for financial accounting purposes. These contracts are generally entered into to offset the gains and losses on certain intercompany balances until the expected time of repayment. Accordingly, any gains or losses resulting from changes in the fair value of Non-Designated Derivative Contracts are recognized in SG&A expenses in the consolidated statements of comprehensive income (loss). The gains and losses on these contracts generally offset the gains and losses associated with the underlying foreign currency-denominated balances, which are also reported in SG&A expenses. Refer to Note 9, "Foreign Currency Exchange Rate Contracts and Hedging", for the impact of derivative instruments and hedging activities on the Company's consolidated financial statements. The Company records the assets or liabilities associated with derivative instruments and hedging activities at fair value based on Level 2 inputs in other current assets or other current liabilities, respectively, in the consolidated balance sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the derivative instrument and whether it is designated and qualifies for hedge accounting. Refer to Note 4, "Fair Value Measurements", for more information on the nature of Level 2 inputs. For all designated hedging relationships, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged transaction, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method used to measure ineffectiveness. The Company factors the nonperformance risk of the Company and the counterparty into the fair value measurements of its derivative instruments. The Company also formally assesses, both at the inception of the hedging relationship and on an ongoing basis, whether the derivative instruments that are used in hedging relationships are highly effective in offsetting changes in cash flows of hedged transactions. The Company assesses hedge effectiveness and measures hedge ineffectiveness at least quarterly. For derivative instruments that are designated and qualify as part of a cash flow hedging relationship, such as Designated Derivative Contracts, the effective portion of the gain or loss on the derivative instrument is recognized in OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative instrument representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. The Company discontinues hedge accounting prospectively when it determines that the derivative instrument is no longer effective in offsetting cash flows attributable to the hedged risk, the derivative instrument expires or is sold, terminated, or exercised, the cash flow hedge is non-designated because a forecasted transaction is not probable of occurring, or management determines to remove the designation of the cash flow hedge. In all situations in which hedge accounting is discontinued and the derivative instrument remains outstanding, the Company continues to carry the derivative instrument at its fair value on the consolidated balance sheets and recognizes any subsequent changes in fair value in earnings. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and the accumulated gains or losses in OCI related to the hedging relationship are immediately recognized into earnings. Comprehensive Income (Loss) Comprehensive income (loss) is the total of net earnings and all other non-owner changes in equity. Comprehensive income (loss) includes net income (loss), foreign currency translation adjustments, and unrealized gains and losses on cash flow hedges. Refer to Note 10, "Accumulated Other Comprehensive Loss", for further information on components of OCI recognized by the Company. Net Income per Share Basic net income per share represents net income divided by the weighted-average number of common shares outstanding for the period. Diluted net income per share represents net income divided by the weighted-average number of shares outstanding, including the dilutive impact of potential issuances of common stock. Refer to Note 11, "Net Income per Share", for a reconciliation of basic to diluted weighted-average common shares outstanding. Foreign Currency Translation The Company considers the US dollar as its functional currency. The Company has certain wholly-owned foreign subsidiaries with functional currencies other than the US dollar. In most cases, the Company's foreign subsidiaries' local currency is the same as the designated functional currency. The Company holds a portion of its cash and other monetary assets and liabilities in currencies other than its subsidiary's functional currency, and is exposed to financial statement transaction gains and losses as a result of re-measurement of the financial positions held in US dollars and foreign currencies into the functional currency of subsidiaries that are non-US dollar functional. The Company re-measures these monetary assets and liabilities using the exchange rate at the end of the reporting period, which results in gains and losses that are included in SG&A expenses in the consolidated statements of comprehensive income (loss) as incurred, except for gains and losses arising on intercompany foreign currency transactions that are of a long-term investment nature. In addition, the Company translates assets and liabilities of subsidiaries with reporting currencies other than US dollars into US dollars using the exchange rates at of the end of the reporting period, which results in financial statement translation gains and losses in OCI. Non-qualified Deferred Compensation In 2010, the Company established a non-qualified deferred compensation program that permits a select group of management employees to defer earnings to a future date on a non-qualified basis. For each plan year, the Company's Board of Directors may, but is not required to, contribute any amount it desires to any participant under this program. The Company's contribution is determined by the Board of Directors annually. In March 2015, the Board of Directors approved a Company contribution feature for future plan years beginning in calendar year 2016 and gave management the authority to approve actual contributions. As of March 31, 2017 and 2016, no payments were made or pending under this program. 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. Deferred compensation of $609 is included in other accrued expenses and $3,531 is included in other long-term liabilities in the consolidated balance sheets as of March 31, 2017 . Deferred compensation of $308 is included in other accrued expenses and $5,993 is included in other long-term liabilities in the consolidated balance sheets as of March 31, 2016 . Refer to Note 4, "Fair Value Measurements", for further information on the fair value of deferred compensation assets and liabilities. Stock-Based Compensation All of the Company's stock-based compensation is classified within stockholders' equity. Stock compensation expense is measured at the grant date based on the value of the award and is expensed ratably over the service period. The Company recognizes expense only for those awards that management deems probable of achieving the performance criteria and service conditions. Determining the fair value and related expense of stock-based compensation requires judgment, including estimating the percentage of awards that will be forfeited and probabilities of meeting the awards' performance criteria. If actual forfeitures differ significantly from the estimates or if probabilities change during a period, stock compensation expense and the Company's results of operations could be materially impacted. Stock compensation expense is included in SG&A expenses in the consolidated statements of comprehensive income (loss). Refer to Note 8, "Stockholders' Equity", for further information on Company stock-based compensation. Revenue Recognition The Company recognizes wholesale, E-Commerce, and international distributor revenue when products are shipped, and retail revenue at the point of sale. All sales are recognized when the customer takes title and assumes risk of loss, collection of the related receivable is reasonably assured, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable. For wholesale and international distributor sales, allowances for estimated returns, discounts, chargebacks, and bad debts are provided for when related revenue is recorded. For E-Commerce sales, allowances for estimated returns and bad debts are provided for when related revenue is recorded. For retail sales, allowances for estimated returns are provided for when related revenue is recorded. Amounts billed for shipping and handling costs are recorded as a component of net sales, while the related costs paid to third-party shipping companies are recorded as cost of sales. The Company presents revenue net of taxes (for example, sales taxes, use taxes, value-added taxes, and some types of excise taxes) collected from customers and remitted to governmental authorities. Research and Development Costs All research and development |
Restructuring
Restructuring | 12 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In connection with the Company's announced restructuring plan in the fourth quarter of fiscal year 2016, the Company closed 25 retail stores as of March 31, 2017 , and consolidated its brand operations and corporate headquarters. In connection with these restructuring efforts, the Company incurred total restructuring charges of approximately $29,100 and $24,800 during fiscal year 2017 and 2016, respectively, with a total of $29,100 and $22,800 recognized in SG&A expenses and approximately $0 and $2,000 in cost of sales, respectively. The related liabilities are reflected in accrued payroll and other accrued expenses. Of the total amount, approximately $11,100 remained accrued as of March 31, 2017 , and is expected to be paid during fiscal year 2018. During the year ended March 31, 2017, the Company identified additional s tores for closure. During fiscal year 2017, the Company recognized approximately $3,600 in restructuring charges in SG&A expenses related to non-cash impairment charges for the retail store assets for 12 of these stores. It is anticipated that the Company will incur restructuring costs similar in nature to its historical activities in future fiscal years and in connection with the Company closing retail stores to reach a target retail store count of 125 owned stores by the end of fiscal year 2020. The following table summarizes the restructuring charges incurred in fiscal years 2017 and 2016: Lease termination costs Retail store fixed asset impairments Severance costs Software and office fixed asset impairments Termination of various contracts and other services Total Fiscal year 2016 charges $ 8,900 $ 5,800 $ 4,000 $ 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 9,000 3,600 5,800 3,200 7,500 29,100 Paid in cash (12,000 ) — (6,400 ) — (5,400 ) (23,800 ) Non-cash — (3,600 ) (300 ) (3,200 ) — (7,100 ) Liability as of March 31, 2017 $ 4,700 $ — $ 2,500 $ — $ 3,900 $ 11,100 The following table summarizes these restructuring charges by reportable operating segment: Years Ended March 31, 2017 2016 UGG brand wholesale $ 2,100 $ — Teva brand wholesale — — Sanuk brand wholesale 100 3,000 Other brands wholesale 100 2,500 Direct-to-Consumer 12,900 10,500 Unallocated overhead costs 13,900 8,800 Total restructuring charges $ 29,100 $ 24,800 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Mar. 31, 2017 | |
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 as follows: As of March 31, 2017 2016 Goodwill UGG brand $ 6,101 $ 6,101 Sanuk brand — 113,944 Other brands 7,889 7,889 Total Goodwill 13,990 127,934 Other Intangible Assets Indefinite-lived Intangible Assets Trademarks 15,455 15,455 Definite-lived Intangible Assets Trademarks 55,244 55,244 Other 57,629 57,629 Total gross carrying amount 112,873 112,873 Accumulated amortization (54,361 ) (45,302 ) Accumulated impairment (8,829 ) — Net Definite-lived Intangible Assets 49,683 67,571 Total Other Intangible Assets 65,138 83,026 Total Goodwill and Other Intangible Assets $ 79,128 $ 210,960 The weighted-average amortization period for definite-lived intangible assets is 16 years and 13 years for the years ended March 31, 2017 and 2016, respectively. Intangible assets consist primarily of indefinite-lived trademarks and definite-lived trademarks, customer and distributor relationships, patents, lease rights, and non-compete agreements arising from the application of purchase accounting. Goodwill is allocated to the wholesale reportable operating segments of the brands described above. Changes in the Company's goodwill balance for the periods presented in the consolidated balance sheets are as follows: Goodwill, Gross Accumulated Impairment Goodwill, Net Balance, March 31, 2015 $ 143,765 $ (15,831 ) $ 127,934 Changes related to acquisitions, impairments and other adjustments — — — Balance, March 31, 2016 143,765 (15,831 ) 127,934 Changes related to acquisitions, impairments and other adjustments — (113,944 ) (113,944 ) Balance, March 31, 2017 $ 143,765 $ (129,775 ) $ 13,990 During the third quarter of the year ended March 31, 2017 , consistent with applicable accounting guidance, the Company performed the annual impairment assessment of the Sanuk brand's wholesale reportable operating segment goodwill as of October 31, 2016 with the assistance of a third party valuation firm. The annual assessment determined that there was an indication of impairment of the Sanuk brand's wholesale reportable segment goodwill. In particular, step one of the impairment assessment concluded that the fair value of the Sanuk brand's wholesale reportable operating segment was below its carrying value, which was primarily the result of lower-than-forecasted sales, lower market multiples for non-athletic footwear and apparel, and a more limited view of international and domestic expansion opportunities for the brand given the changing retail environment. Accordingly, the Company then performed step two of the impairment assessment, which required fair value to be allocated to all of the assets and liabilities of the Sanuk brand's wholesale reportable operating segment, using a hypothetical allocation of assets, including net tangible and intangible assets. As a result of this analysis, the Company recorded a $113,944 non-cash impairment charge to the Sanuk brand's wholesale reportable operating segment goodwill during the third quarter of the year ended March 31, 2017 , which was reflected in SG&A expenses in the consolidated statements of comprehensive income (loss). At October 31, 2015, the Company performed the annual impairment test and evaluated the Sanuk brand's wholesale reportable operating segment goodwill and, based on comparing the carrying amounts of the Sanuk brand's wholesale reportable operating segment goodwill to the 2016 sales and operating results and the brands' long-term forecasts of sales and operating results as of their evaluation dates, the Company concluded the carrying amount of the Sanuk brand's wholesale reportable operating segment goodwill was not impaired. The change in the sales forecasts between fiscal year 2017 and fiscal year 2016 at the annual impairment testing date of October 31st of each fiscal year, was primarily due to the change in forecast assumptions discussed above. During the third quarter of the year ended March 31, 2017 , the Company evaluated the Sanuk brand's definite long-lived assets for indicators of impairment, primarily as a result of the goodwill impairment discussed above. The Company's analysis determined that the Sanuk brand's amortizable patent under the Sanuk brand's wholesale reportable operating segment was fully impaired as the Sanuk SIDEWALK SURFERS utility patent had very limited value in the marketplace because of its limited ability to exclude others from creating similar products. As a result, the Company recorded a non-cash impairment charge to the patent of $ 4,086 in the Sanuk wholesale reportable operating segment during the third quarter of fiscal year 2017, which was reflected in SG&A expenses in the consolidated statements of comprehensive income (loss). The impairment charge to the patent will result in lower annual amortization expense of approximately $500 . The Company's analysis also determined that the Sanuk brand's other intangible assets, other than the amortizable patent discussed above, were not impaired as of the date on which the impairment test was completed, as it was determined that the undiscounted future cash flows associated with those assets exceeded their carrying values. However, as discussed above, additional impairment charges could be incurred in future periods. At December 31, 2016 and 2015, the Company performed its annual impairment tests and evaluated the UGG brand and other brands' wholesale reportable operating segment goodwill, and at October 31, 2016 and 2015, evaluated the Teva brand's indefinite-lived trademarks. Based on the carrying amounts of the UGG brands and other brands' wholesale reportable segment goodwill and Teva brand's trademarks, the brands' fiscal year 2017 and 2016 sales and operating results, and the brands' long-term forecasts of sales and operating results as of their evaluation dates, the Company concluded that the carrying amounts of the goodwill and trademarks were not impaired. During the third quarter of the year ended March 31, 2017 , the Company recorded an impairment for other intangible assets in the DTC reportable operating segment of $4,743 due to a decline in market rental rates for European retail stores, which was reflected in SG&A expenses in the consolidated statements of comprehensive income (loss). Aggregate amortization expense for amortizable intangible assets during the years ended March 31, 2017 , 2016 and 2015 was $7,945 , $8,850 , and $11,291 , respectively. Charges incurred in the consolidated statements of comprehensive income (loss) relevant to the Company's other intangible assets during the year ended March 31, 2017 are as follows: Balance, March 31, 2016 $ 83,026 Impairment charges (8,829 ) Amortization expense (7,945 ) Foreign currency exchange rate fluctuations (1,114 ) Balance, March 31, 2017 $ 65,138 The following table summarizes the expected amortization expense as of March 31, 2017 for amortizable intangible assets for the next five years and thereafter: Years Ending March 31: 2018 $ 7,572 2019 6,106 2020 3,439 2021 2,526 2022 2,521 Thereafter 27,519 $ 49,683 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 12 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of the Company's cash and cash equivalents, trade accounts receivable, inventory, 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 tax payable approximate the carrying values due to the relatively short maturities of these assets and liabilities. The fair values of the Company's long-term liabilities do not significantly differ from the carrying values. The fair value of the contingent consideration related to acquisitions and of the Company's derivative instruments are measured and recorded at fair value on a recurring basis. Changes in fair value of contingent consideration resulting from either accretion or changes in discount rates or in the expectations of achieving the performance criteria are recorded in SG&A expenses in the consolidated statements of comprehensive income (loss). The Company records the fair value of assets or liabilities associated with derivative instruments and hedging activities in other current assets or other accrued expenses, respectively, in the consolidated balance sheets. The inputs used in measuring fair value are prioritized into the following hierarchy: • Level 1: Quoted prices 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 as of March 31, 2017 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets (liabilities) at fair value: Non-qualified deferred compensation asset $ 6,662 $ 6,662 $ — $ — Non-qualified deferred compensation liability (4,140 ) (4,140 ) — — Designated Derivative Contracts asset 1,365 — 1,365 — Fair Value as of March 31, 2016 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets (liabilities) at fair value: Non-qualified deferred compensation asset $ 6,083 $ 6,083 $ — $ — Non-qualified deferred compensation liability (6,301 ) (6,301 ) — — Designated Derivative Contracts asset 2,903 — 2,903 — Designated Derivative Contracts 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 reporting period. The Level 3 inputs include subjective assumptions used to value the contingent consideration liability in connection with prior acquisitions. The fair value of contingent consideration as of March 31, 2016 is related to the Sanuk brand and Hoka brand acquisitions. All contingent consideration payments have been fully paid as of March 31, 2017. Refer to Note 7, "Commitments and Contingencies", for additional information regarding the Company's contingent consideration payments. The following table presents a reconciliation of the Level 3 measurement (rounded): Balance, March 31, 2015 $ 25,700 Payments (1,300 ) Change in fair value (4,400 ) Balance, March 31, 2016 20,000 Payments (20,000 ) Balance, March 31, 2017 $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income Tax (Benefit) Expense Components of income tax (benefit) expense are as follows: Years Ended March 31, 2017 2016 2015 Current Federal $ 2,184 $ 11,971 $ 35,459 State 1,576 2,443 6,861 Foreign 8,039 12,039 7,069 Total 11,799 26,453 49,389 Deferred Federal (20,287 ) 7,887 8,234 State (3,446 ) 1,113 624 Foreign (762 ) (833 ) 1,112 Total (24,495 ) 8,167 9,970 Income tax (benefit) expense $ (12,696 ) $ 34,620 $ 59,359 Foreign income before income taxes was $49,319 , $105,938 , and $95,850 during the years ended March 31, 2017 , 2016 and 2015, respectively. Income Tax (Benefit) Expense Reconciliation Income tax (benefit) expense differed from that obtained by applying the statutory federal income tax rate to income before income taxes as follows: Years Ended March 31, 2017 2016 2015 Computed expected income taxes $ (2,445 ) $ 54,910 $ 77,399 State income taxes, net of federal income tax benefit (1,403 ) 1,298 3,564 Foreign rate differential (8,062 ) (28,233 ) (25,535 ) Unrecognized tax benefits 2,691 3,670 3,566 Income tax expense on diminution of operations and nondeductible goodwill 3,921 1,352 — Foreign income withholding tax expense 432 — — Nontaxable income (5,055 ) — — Statutory foreign income tax (benefit) expense (2,504 ) (477 ) 20 Other (271 ) 2,100 345 Income tax (benefit) expense $ (12,696 ) $ 34,620 $ 59,359 Deferred Taxes The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are presented as follows: As of March 31, 2017 2016 Deferred tax assets (liabilities), noncurrent: Amortization and impairment of intangible assets $ 28,304 $ (5,128 ) Depreciation of property and equipment (19,511 ) (8,804 ) Stock-based compensation 6,258 10,118 Deferred rent 6,809 5,383 Acquisition costs 751 745 Uniform capitalization adjustment to inventory 4,971 5,280 Bad debt and other reserves 15,946 14,163 State taxes (145 ) 863 Prepaid expenses (4,144 ) (3,622 ) Accrued bonuses 1,456 536 Foreign currency exchange rate hedges (534 ) (94 ) Other 1,376 1,196 Net operating loss carry-forwards 3,171 — Net deferred tax assets $ 44,708 $ 20,636 In order to fully realize the deferred tax assets, the Company will need to generate future taxable income of approximately $126,386 . The deferred tax assets are primarily related to the Company's domestic operations and are currently expected to be realized between fiscal years 2018 and 2029. The change in net deferred tax assets between March 31, 2017 and March 31, 2016 includes approximately $400 attributable to the effective portion of Designated Derivative Contracts recognized in OCI. Refer to Note 9, "Foreign Currency Exchange Rate Contracts and Hedging", for additional information regarding the Company's derivative instruments and the impact to OCI. Domestic income (loss) before income taxes for the years ended March 31, 2017 , 2016 and 2015 was $(56,305) , $50,947 , and $125,289 , respectively. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets and, accordingly, no valuation allowance was recorded in fiscal years 2017 and 2016 . Tax Impact of Foreign Earnings As of March 31, 2017 , the Company has not provided deferred taxes on approximately $505,124 of US GAAP undistributed earnings from non-US subsidiaries where the earnings are considered to be permanently reinvested. Management’s intent is to continue to reinvest these earnings to support the strategic priority for growth in international markets. If management decides at a later date to repatriate these funds to the US, the Company would be required to provide taxes on these amounts based on applicable US tax rates, net of foreign taxes already paid. The Company has not determined the deferred tax liability associated with these undistributed earnings, as doing so is not practicable. As of March 31, 2017 , the Company had approximately $265,773 of cash and cash equivalents outside the US. Unrecognized Tax Benefits 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 upon examination. 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 benefit that exceeds the amount measured, as described above, is reflected as a liability for unrecognized tax benefits in the consolidated balance sheets, along with any associated interest and penalties that would be payable to the taxing authorities upon examination. A reconciliation of the beginning and ending amounts of total unrecognized tax benefits is as follows: Balance, March 31, 2015 $ 4,667 Gross increase related to current year tax positions 2,332 Gross increase related to prior year tax positions 2,059 Settlements (363 ) Balance, March 31, 2016 8,695 Gross increase related to current year tax positions 1,878 Gross increase related to prior year tax positions 1,154 Balance, March 31, 2017 $ 11,727 The amount of accrued unrecognized tax benefits, net of federal benefit, affecting the effective tax rate as of March 31, 2017 was $2,691 . The accrual relates to tax positions taken in years that are open to examination. As of March 31, 2017 , interest and potential penalties of $2,990 compared to $1,842 as of March 31, 2016 were accrued in the consolidated balance sheets resulting from tax positions that are subject to examination and were recorded in interest expense in the Company’s consolidated statements of comprehensive income (loss). It is reasonably possible that approximately $856 of unrecognized tax benefits will be settled within the next 12 months. The Company files income tax returns in the US federal jurisdiction and various state, local, and foreign jurisdictions. With few exceptions, the Company is no longer subject to US federal, state, local, or non-US income tax examinations by tax authorities for years before 2012. Although the Company believes its tax estimates are reasonable and prepares its tax filings in accordance with all applicable tax laws, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company's estimates or from its historical income tax provisions and accruals. The results of an audit or litigation could have a material effect on operating results or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, or interest assessments. The Company has on-going income tax examinations in various state and foreign tax jurisdictions. It is the opinion of management that these audits and inquiries will not have a material impact on the Company's consolidated financial statements. |
Revolving Credit Facilities and
Revolving Credit Facilities and Mortgage Payable | 12 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facilities and Mortgage Payable | Revolving Credit Facilities and Mortgage Payable Domestic Credit Facility In November 2014, the Company amended its revolving credit facility agreement with JPMorgan Chase Bank, National Association (JPMorgan) as the administrative agent, Comerica and HSBC as co-syndication agents, and the lenders party thereto, in its entirety (as amended, the Second Amended and Restated Credit Agreement) (Domestic Credit Facility). In August 2015, the Company entered into an additional amendment to the Second Amended and Restated Credit Agreement to add certain foreign subsidiaries as borrowers, and in October 2016, further amended the Second Amended and Restated Credit Agreement to allow increased borrowing under its China Credit Facility (as defined below). The Domestic Credit Facility is a five -year, $400,000 secured revolving credit facility that contains a $75,000 sublimit for the issuance of letters of credit and a $5,000 sublimit for swingline loans, and which matures on November 13, 2019. Subject to customary conditions and the approval of any lender whose commitment would be increased, the Company has the option to increase the maximum principal amount available under the Domestic Credit Facility by up to an additional $200,000 , resulting in a maximum available principal amount of $600,000 . No lender under the Domestic Credit Facility has committed at this time or is obligated to provide any such increase in the commitments. In addition to allowing borrowings in US dollars, the Domestic Credit Facility provides a $150,000 sublimit for borrowings in Euros, British Pounds and any other currency that is subsequently approved by JPMorgan, each lender and the issuing bank. As of March 31, 2017 , the Company had debt capacity of approximately $378,000 out of $400,000 , due to limitations on consolidated worldwide borrowings under the terms of the Domestic Credit Facility. At the Company's election, interest under the Domestic Credit Facility is tied to the adjusted London Interbank Offered Rate (LIBOR) or the Alternative Base Rate (ABR), and is variable based on the Company's total adjusted leverage ratio each quarter. The initial adjusted LIBOR rate is equal to the effective LIBOR rate for the interest period elected, plus 1.25% per annum, or at the ABR plus 0.25% per annum, and thereafter the interest rate will fluctuate between adjusted LIBOR plus 1.25% per annum and adjusted LIBOR plus 2.00% per annum (or between the ABR plus 0.25% per annum and the ABR plus 1.00% per annum), based upon the Company's total adjusted leverage ratio at such time. The ABR is defined in the Second Amended and Restated Credit Agreement as the rate per annum equal to the greater of (1) the prime rate, (2) the federal funds effective rate plus 0.50% and (3) the adjusted LIBOR rate for a one-month interest period plus 1.00% . In addition, the Company is initially required to pay commitment fees of 0.175% per annum on the daily amount of the available borrowings under the Domestic Credit Facility, and thereafter the fee rate will fluctuate between 0.175% and 0.30% per annum, based upon the Company's total adjusted leverage ratio. As of March 31, 2017 , the adjusted LIBOR and ABR rates were 2.48% and 4.50% , respectively. The Company's obligations under the Domestic Credit Facility are guaranteed by the Company's existing and future wholly-owned domestic subsidiaries (other than certain immaterial subsidiaries, foreign subsidiaries, foreign subsidiary holding companies and specified excluded subsidiaries) (Guarantors), and are secured by a first-priority security interest in substantially all of the assets of the Company and the Guarantors, including all or a portion of the equity interests of certain of the Company's domestic and first-tier foreign subsidiaries. The Domestic Credit Facility is governed by financial covenants which include: the total adjusted leverage ratio must not be greater than 3.25 to 1.00 ; the sum of the consolidated annual earnings before interest, taxes, depreciation, and amortization and annual rental expense, divided by the sum of the annual interest expense and the annual rental expense must be greater than 2.25 to 1.00 on a pro-forma basis; and other customary limitations. The Domestic Credit Facility is governed by certain other covenants which include: the maximum amount paid for capital expenditures may not exceed $110,000 per year if the total adjusted leverage ratio is equal to or exceeds 2.75 to 1.00 ; the maximum additional unsecured debt may not exceed $200,000 ; the Company may not have aggregate Employee Retirement Income Security Act of 1974 events that are considered materially adverse; the Company may not have a change of control (as defined in the Second Amended and Restated Credit Agreement); and no restrictions on cash dividends, share repurchases or acquisitions may be made, provided that no event of default has occurred or is continuing, and that the total adjusted leverage ratio does not exceed 2.75 to 1.00 on a pro-forma basis. During the year ended March 31, 2017 , the Company borrowed approximately $332,000 and repaid approximately $385,000 under the Domestic Credit Facility. As of March 31, 2017 , the Company had no outstanding balance under the Domestic Credit Facility and had outstanding letters of credit of approximately $549 . As a result, the available borrowings under the Domestic Credit Facility were approximately $378,000 at March 31, 2017 . Amounts outstanding are included in short-term borrowings in the consolidated balance sheets. As of March 31, 2017 , the Company had a remaining balance of approximately $1,000 in deferred financing costs related to previous amendments to the Domestic Credit Facility included in prepaid expenses in the consolidated balance sheets. This amount is being amortized ratably over the five year term of the Second Amended and Restated Credit Agreement. Subsequent to March 31, 2017 , the Company made no additional borrowings, resulting in no outstanding balance and available borrowings of approximately $378,000 under the Domestic Credit Facility at May 30, 2017 . China Credit Facility In August 2013, Deckers (Beijing) Trading Co., LTD (DBTC), a wholly-owned subsidiary of the Company, entered into a revolving credit facility agreement in China (as amended, China Credit Facility) that provided for an uncommitted revolving line of credit of up to CNY 60,000 , or approximately $9,000 , in the quarters ending September 30th and December 31st and CNY 20,000 , or approximately $3,000 , in the quarters ending March 31st and June 30th. In December 2013, the China Credit Facility was amended to provide for the uncommitted revolving line of credit of up to CNY 60,000 to be extended to the entire year. In October 2014, the China Credit Facility was further amended to include, among other things, an extension of the aggregate period of borrowing from 12 months to 18 months. In October 2015, the China Credit Facility was further amended to include an increase in the uncommitted revolving line of credit of up to CNY 150,000 , or approximately $22,000 , including a sublimit of CNY 50,000 , or approximately $7,000 , for the Company's wholly-owned subsidiary, Deckers Footwear (Shanghai) Co., LTD (DFSC) and to reduce the aggregate period of borrowing from 18 to 12 months. In October 2016, the China Credit Facility was further amended to include an increase in the uncommitted revolving line of credit of up to CNY 300,000 , or approximately $44,000 , and to remove the sublimit of CNY 50,000 , or approximately $7,000 , for DFSC. In March 2017, the China Credit Facility was amended to remove DFSC, leaving DBTC as the remaining borrower. The China Credit Facility is payable on demand and subject to annual review and renewal. The obligations under the China Credit Facility are guaranteed by the Company for 108.5% of the facility amount in US dollars. Interest is based on 110.0% of the People’s Bank of China rate, which was 4.35% as of March 31, 2017 . During the year ended March 31, 2017 , the Company borrowed approximately $35,000 and repaid approximately $48,000 under the China Credit Facility. As of March 31, 2017 , the Company had no outstanding balance under the China Credit Facility and had available borrowings of approximately $44,000 . Amounts outstanding are included in short-term borrowings in the consolidated balance sheets. Subsequent to March 31, 2017 , the Company made no additional borrowings, resulting in no outstanding balance and available borrowings of approximately $44,000 under the China Credit Facility at May 30, 2017 . Japan Credit Facility In March 2016, Deckers Japan, G.K., a wholly-owned subsidiary of the Company, entered into a revolving credit facility agreement in Japan (Japan Credit Facility) that provides for an uncommitted revolving line of credit of up to JPY 5,500,000 , or approximately $49,000 , for a maximum term of six months for each draw on the facility. The Japan Credit Facility renews annually, and is guaranteed by the Company. The Company has renewed the Japan Credit Facility through January 31, 2018 under the terms of the original agreement. Interest is based on the Tokyo Interbank Offered Rate (TIBOR) for three months plus 0.40% . As of March 31, 2017 , TIBOR for three months was 0.06% and the effective interest rate was 0.46% . The Japan Credit Facility has customary covenants including a restriction against having losses for two consecutive years, maintaining an interest coverage ratio greater than 1.00 to 1.00 , and maintaining higher assets than liabilities. During the year ended March 31, 2017 , the Company borrowed approximately $38,000 and repaid approximately $35,000 under the Japan Credit Facility. As of March 31, 2017 , the Company had no outstanding balance under the Japan Credit Facility and had available borrowings of approximately $49,000 . Amounts outstanding are included in short-term borrowings in the consolidated balance sheets. Subsequent to March 31, 2017 , the Company made no additional borrowings, resulting in no outstanding balance and available borrowings of approximately $49,000 under the Japan Credit Facility at May 30, 2017 . Mortgage In July 2014, the Company obtained a mortgage secured by its corporate headquarters property for approximately $33,900 . As of March 31, 2017 , the outstanding principal balance under the mortgage was approximately $32,631 , which includes approximately $549 in short-term borrowings and approximately $32,082 in mortgage payable in the consolidated balance sheets. The mortgage has a fixed interest rate of 4.928% . Payments include interest and principal in an amount that amortizes the principal balance over a 30 -year period; however, the loan will mature and have a balloon payment, due on July 1, 2029 of approximately $23,700 , in addition to any then-outstanding balance. Minimum principal payments over the next five years are approximately $3,040 . In December 2014, the mortgage financial covenants were amended to be consistent with the financial covenants that govern the Domestic Credit Facility, discussed above. As of March 31, 2017 , the Company was in compliance with all debt covenants under its borrowing arrangements and remains in compliance at May 30, 2017 . The borrowing and repayment amounts disclosed above for the China Credit Facility and Japan Credit Facility have been translated into US dollars using average currency exchange rates in effect as of the borrowing and repayment dates during the fiscal year 2017. The outstanding balance or available borrowing amounts disclosed above for the China Credit Facility and Japan Credit Facility have been translated into US dollars using spot rates in effect as of March 31, 2017 . As a result, there are differences between the debt balances within this footnote disclosure due to foreign currency exchange rates. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments The Company leases office, distribution and retail facilities, and automobiles, under operating lease agreements which continue in effect through 2028 . Some of the leases contain renewal options of anywhere from 1 to 15 years. Since the terms of these arrangements meet the accounting definition of operating lease arrangements, the aggregate sum of future minimum lease payments is not reflected on the consolidated balance sheets. Future minimum commitments under the lease agreements are as follows: Years Ending March 31: Future Minimum Lease Commitments 2018 $ 51,319 2019 49,040 2020 41,261 2021 36,221 2022 31,459 Thereafter 102,170 $ 311,470 The following schedule shows the composition of total rental expense: Years Ended March 31, 2017 2016 2015 Minimum rentals $ 63,050 $ 61,227 $ 61,363 Contingent rentals 15,281 16,067 14,707 $ 78,331 $ 77,294 $ 76,070 Purchase Obligations Product The Company had $392,716 of outstanding purchase orders with its manufacturers at March 31, 2017 . 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 reportable operating 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; however, the occurrence of such circumstances is generally limited. 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. Sheepskin The Company had an aggregate of $122,869 of purchase obligations for sheepskin at March 31, 2017 . These obligations generally arise under two -year supply agreements. The aggregate amount reflects the remaining commitments under these purchase orders. The Company enters into contracts requiring purchase commitments of sheepskin that its affiliates, manufacturers, factories, and other agents (each or collectively, a Buyer) must make on or before a specified target date. These agreements may result in unconditional purchase obligations if a Buyer does not meet the minimum purchase requirements. In the event that a Buyer does not purchase such minimum commitments by the target dates, the Company would be responsible for compliance with any and all minimum purchase commitments under these contracts, and the Company would make additional deposit payments towards the purchase of the remaining minimum commitments and such additional deposits would be returned as the Buyer purchases the remaining minimum commitments. The contracts do not permit net settlement. There were no additional deposits on remaining minimum commitments as of March 31, 2017 . Included in other current assets on the consolidated balance sheets are approximately $12,200 and $20,000 of additional deposits related to prior sheepskin contracts at March 31, 2017 and 2016 , respectively. Minimum commitments for these contracts at March 31, 2017 were as follows: Contract Effective Date Final Target Date Contract Value Remaining May 2015 September 2017 $ 55,200 $ 36,567 September 2015 September 2017 7,200 2,172 October 2016 September 2017 16,105 13,427 November 2016 September 2017 24,000 17,003 October 2016 September 2018 53,700 53,700 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 will become fully refundable or reflected as a credit against purchases. Other The Company had an aggregate of $18,942 of other purchase obligations at March 31, 2017 , which generally consisted of material commitments for future capital expenditures, obligations under service contracts, and requirements to pay promotional expenses. Future capital expenditures primarily related to information technology upgrades at the Company's distribution centers in California and tenant improvements for retail store space in the US. Litigation From time to time, the Company is involved in various legal proceedings and claims arising in the ordinary course of 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 The purchase price for the Sanuk brand, acquired in July 2011, included contingent consideration payments. The final contingent consideration payment of approximately $19,700 was paid during the year ended March 31, 2017 . The purchase price for the Hoka brand, acquired in September 2012, included contingent consideration through calendar year 2017, with a maximum contingent amount payable of $2,000 . The conditions for payment were met during the year ended March 31, 2016 ; $1,700 was paid as of March 31, 2016, and $300 was paid as of March 31, 2017. The full final contingent consideration has been paid as of March 31, 2017 . Indemnification The Company has agreed to indemnify certain of its licensees, distributors, and promotional partners in connection with claims related to the use of the Company's intellectual property. The terms of such agreements range up to five years initially and generally do not provide for a limitation on the maximum potential future payments. From time to time, the Company also agrees to indemnify its licensees, distributors and promotional partners in connection with claims that the Company’s products infringe the intellectual property rights of third parties. These agreements may or may not be made pursuant to a written contract. In addition, from time to time, the Company also agrees to standard indemnification provisions in commercial agreements in the ordinary course of business. Management believes the likelihood of any payments under any of these arrangements is remote and would be immaterial. This determination was made based on a prior history of insignificant claims and related payments. There are no currently pending claims relating to indemnification matters involving the Company's intellectual property. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Equity Incentive Plans In May 2006, the Company adopted the 2006 Equity Incentive Plan (2006 Plan), which was amended on May 9, 2007. In September 2015, the Company's stockholders approved the 2015 Stock Incentive Plan (2015 SIP), which replaced the Company's 2006 Plan. As with the 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 are 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 . The Company uses various types of stock-based compensation under the 2006 Plan and 2015 SIP, including time-based restricted stock units (RSUs), performance-based stock units (PSUs), stock appreciation rights (SARs) and non-qualified stock options (NQSOs). Annual grants of RSUs (Annual RSUs) and PSUs (Annual PSUs) are available to key personnel and certain executive officers, and long-term incentive (LTIP) awards or options are available to certain officers, including named executive officers. Annual Awards The Company has elected to grant Annual RSUs and Annual PSUs to key employees, including certain executive officers of the Company. These grants entitle the recipients to receive shares of common stock of the Company upon vesting. The vesting of Annual PSUs is subject to achievement of certain performance criteria measured over the fiscal year during which they are granted, while Annual RSUs are subject only to time-based vesting restrictions. Annual PSUs vest in equal one-third installments annually over three years after the performance criteria are achieved, and Annual RSUs vest in equal annual installments over a three -year period following the date of grant. During the year ended March 31, 2017 , the Company granted 83,971 Annual PSUs at a weighted-average grant date fair value of $54.51 per share and 184,531 Annual RSUs at a weighted-average grant date fair value of $61.54 per share. At March 31, 2017 , the Company determined that the performance criteria for the fiscal year 2017 Annual PSUs was not met, and therefore, the awards were cancelled and the Company recorded a reversal of total stock compensation expense recorded in fiscal year 2017 of $500 . As of March 31, 2017 , future unrecognized stock compensation expense for Annual RSUs and Annual PSUs granted to date, excluding estimated forfeitures, was $ 7,951 . Long-Term Incentive Awards 2007 LTIP SARs and 2007 LTIP PSUs In May 2007, the Company adopted LTIP awards under the 2006 Plan for issuance of SARs (2007 LTIP SARs) and PSUs (2007 LTIP PSUs), which were awarded to certain executive officers of the Company. These awards were subject to vesting based on certain performance criteria and service conditions. Half of the 2007 LTIP SARs and 2007 LTIP PSUs granted were fully vested as of December 31, 2011; the other half of the awards granted vested 80% on December 31, 2015, with the remaining 20% subject to vesting on December 31, 2016, provided certain performance criteria were achieved. As of December 31, 2016, it was determined that the Company had not achieved the performance criteria and therefore the remaining awards did not vest and were cancelled. Accordingly, the Company recognized a net reversal of stock compensation expense of $2,400 during fiscal year 2017. 2013 LTIP PSUs In December 2013, the Company adopted LTIP awards (2013 LTIP PSUs) under the 2006 Plan. The shares under these awards were available for issuance to current and future members of the Company's management team, including the Company's named executive officers. Each recipient received a specified maximum number of 2013 LTIP PSUs, each of which represented the right to receive one share of the Company's common stock. The 2013 LTIP PSUs vested subject to certain performance criteria and service conditions over three years and would have vested on March 31, 2016 . At March 31, 2016 , the Company did not meet the minimum threshold performance criteria, and the awards did not vest and were cancelled. 2015 LTIP PSUs In September 2014, the Company approved LTIP awards (2015 LTIP PSUs) under the 2006 Plan. The shares under these awards were available for issuance to current and future members of the Company's leadership team, including the Company's named executive officers. Each recipient received a specified maximum number of 2015 LTIP PSUs, each of which represented the right to receive one share of the Company's common stock. The 2015 LTIP PSUs vested subject to certain performance criteria and service conditions over three years and would have vested on March 31, 2017 . Vesting would not have occurred if the minimum threshold performance criteria were not met for the year ended March 31, 2017 . To the extent financial performance was achieved above the minimum threshold performance criteria, the number of 2015 LTIP PSUs that vested would increase up to the maximum number of units granted under the award. Under this award program, the Company granted awards that contained a maximum amount of approximately 160,000 2015 LTIP PSUs during the year ended March 31, 2015 . The weighted-average grant date fair value of the 2015 LTIP PSUs was $98.29 per share. At March 31, 2016 , the Company did not believe the achievement of at least the minimum threshold performance criteria was probable, and accordingly, the Company recognized a net reversal of stock compensation expense of approximately $ 1,400 . At March 31, 2017 , the Company did not meet the minimum threshold performance criteria and the awards did not vest and were cancelled. 2016 LTIP PSUs In November 2015, the Company approved LTIP awards (2016 LTIP PSUs) under the 2015 SIP. The shares under these awards were available for issuance to current and future members of the Company's leadership team, including the Company's named executive officers. Each recipient received a specified maximum number of 2016 LTIP PSUs, each of which represented the right to receive one share of the Company's common stock. The 2016 LTIP PSUs vest subject to certain performance and market criteria and service conditions over three years and would vest on March 31, 2018. To the extent financial performance is achieved above the minimum threshold performance criteria, the number of 2016 LTIP PSUs that will vest will increase up to a maximum of 200% of the targeted amount for that award. No vesting of any portion of the 2016 LTIP PSUs will occur if the Company fails to achieve at least 90% of the minimum threshold performance criteria. If the Company achieves the performance criteria, vesting of the 2016 LTIP PSUs will be subject to adjustment based on the application of a total stockholder return (TSR) modifier. The amount of the adjustment will be determined based on a comparison of the Company's TSR relative to the TSR of a pre-determined set of peer group companies for the 36 -month performance period commencing on April 1, 2015 and ending on March 31, 2018. A Monte-Carlo simulation model, which is a generally accepted statistical technique, was used to determine the grant date fair value by simulating a range of possible future stock prices for the Company and each member of the peer group over the TSR 36 -month performance period. Under this award program, the Company granted awards that contained a maximum amount of approximately 308,000 2016 LTIP PSUs during the year ended March 31, 2016 . The weighted-average grant date fair value of the 2016 LTIP PSUs was $50.05 per share. The Company does not believe the achievement of at least the minimum threshold performance criteria is probable, and accordingly, did not recognize stock compensation expense for these awards during the years ended March 31, 2017 and 2016 . If the performance criteria are deemed probable in fiscal year 2018, the Company will recognize a cumulative catch-up adjustment to stock compensation expense. At March 31, 2017 , the cumulative catch-up adjustment to stock compensation expense would be approximately $9,813 , assuming the maximum amount of 2016 LTIP PSUs vest because the performance criteria are deemed probable. 2017 LTIP NQSOs In November 2016, the Company adopted and approved the grant of NQSOs (2017 LTIP NQSOs) under the Company's 2015 SIP. These options were issued to the Company’s executive officers. Each option grants the recipient the right to purchase a specified number of shares of the Company's common stock at a fixed exercise price per share. The options will vest on March 31, 2019, if the recipient provides continuous service through that date and the Company achieves the minimum threshold performance criteria. The Company measures stock compensation expense for the 2017 LTIP NQSOs at the date of grant using the Black-Scholes option pricing model. This model estimates the fair value of the options based on a number of assumptions, such as expected option life, interest rates, the current fair market value and expected volatility, as well as dividend yield of the Company’s common stock. The fair value of 2017 LTIP NQSOs granted during the year ended March 31, 2017 was $5,456 , and $694 was expensed during the year ended March 31, 2017 . As of March 31, 2017 , future unrecognized stock compensation expense for the 2017 LTIP NQSOs granted to date, excluding estimated forfeitures, was $ 4,344 . The following table presents the weighted-average valuation assumptions used for the recognition of stock compensation expense for the 2017 LTIP NQSOs granted during the year ended March 31, 2017 : Expected life (in years) 5.94 Expected volatility 41.8 % Risk free interest rate 1.95 % Dividend yield — % Weighted-average exercise price $ 61.86 Weighted-average option value $ 26.27 Grants to Directors On a quarterly basis, the Company grants shares of its common stock to each of its outside directors. The fair value of such shares, which is determined based on the closing price at the date of issuance, is expensed on the date of issuance. Stock Repurchase Programs In June 2012, the Company approved a stock repurchase program to repurchase up to $200,000 of the Company's common stock in the open market or in privately-negotiated transactions, subject to market conditions, applicable legal requirements, and other factors. The program did not obligate the Company to acquire any particular amount of common stock and the program may have been suspended at any time at the Company's discretion. At February 28, 2015, the Company had repurchased the full $200,000 amount authorized under the program through the repurchase of approximately 3,823,000 shares at an average price of $52.31 per share. In January 2015, the Company approved a new stock repurchase program to repurchase up to $200,000 of the Company's common stock, which included the same stipulations as the purchase program approved in June 2012, as described above. During fiscal years 2017, 2016 and 2015, the Company repurchased approximately 222,000 , 1,420,000 and 1,436,000 , respectively, of its common stock. In fiscal years 2017, 2016 and 2015, the cost of these repurchases was approximately $12,572 , $94,200 , and $107,200 , respectively, at an average price per share of $56.51 , $66.32 , and $74.68 , respectively. Under the new program, during the year ended March 31, 2015 , the Company repurchased approximately 377,000 shares, out of the total 1,436,000 shares repurchased under both programs in fiscal year 2015, for approximately $27,900 , or an average price of $74.09 per share. Since inception through March 31, 2017 , the Company had repurchased a total of approximately 2,020,000 shares under this program for approximately $134,706 , or an average price of $66.69 per share, leaving the remaining approved amount at approximately $65,294 . The following is a reconciliation of the Company's retained earnings for repurchases of its common stock during the year ended March 31, 2017 : Retained Earnings Balance at March 31, 2016 $ 826,449 Net income 5,710 Repurchases of common stock (12,570 ) Balance at March 31, 2017 $ 819,589 The remaining amount of approximately 222,000 shares of the purchase price of $12,572 was recorded in common stock during the year ended March 31, 2017 . Stock Compensation Expense The table below summarizes stock compensation expense by award or option type recognized in the consolidated statements of comprehensive income (loss): Years Ended March 31, 2017 2016 2015 Stock compensation expense recorded for: Annual RSUs $ 5,191 $ 2,356 $ 1,603 Annual PSUs 1,203 3,807 7,692 2007 LTIP SARs (1,949 ) 893 1,846 LTIP PSUs* (296 ) (1,511 ) 1,323 2017 LTIP NQSOs 694 — — Directors' shares 1,168 1,077 1,060 Employee Stock Purchase Plan** 164 — — Total stock compensation expense 6,175 6,622 13,524 Income tax benefit recognized (2,322 ) (2,525 ) (5,143 ) Net stock compensation expense $ 3,853 $ 4,097 $ 8,381 *2007 LTIP PSUs, 2013 LTIP PSUs, 2015 LTIP PSUs, and 2016 LTIP PSUs are collectively referred to herein as “LTIP PSUs”. **The 2015 Employee Stock Purchase Plan (2015 ESPP) provides for the initial authorization of 1,000,000 shares of the Company’s common stock for sale to eligible employees. Eligible employees commenced participation in the 2015 ESPP in March 2016 with payroll deductions. Each consecutive purchase period is six months in duration and shares are 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. Purchase windows take place in February and August of each fiscal year. The table below summarizes the total remaining unrecognized stock compensation expense related to nonvested awards that the Company considers are probable to vest and the weighted-average period over which the cost is expected to be recognized as of March 31, 2017 : Unrecognized Stock Compensation Expense Weighted-Average Remaining Vesting Period (Years) Annual RSUs $ 7,497 1.4 Annual PSUs 454 1.0 2007 LTIP SARs — — LTIP PSUs — — 2017 LTIP NQSOs 4,344 2.0 Total $ 12,295 The amount of unrecognized stock compensation expense as of March 31, 2017 excludes a maximum of $13,510 of stock compensation expense on the 2016 LTIP PSUs, as achievement of the performance criteria are not deemed probable. Annual RSUs and Annual PSUs Issued under the 2006 Plan and 2015 SIP The table below summarizes Annual RSU and Annual PSU activity: Number of Shares Weighted- Average Grant-Date Fair Value Nonvested at March 31, 2014 331,000 $ 62.21 Granted 196,000 82.34 Vested (142,000 ) 68.39 Forfeited (30,000 ) 64.18 Cancelled* (15,000 ) 84.04 Nonvested at March 31, 2015 340,000 70.11 Granted 240,000 70.82 Vested (132,000 ) 66.74 Forfeited (91,000 ) 72.84 Cancelled* (154,000 ) 74.22 Nonvested at March 31, 2016 203,000 68.80 Granted 268,000 59.34 Vested (111,000 ) 65.37 Forfeited (66,000 ) 70.79 Cancelled* (68,000 ) 65.23 Nonvested at March 31, 2017 226,000 $ 63.96 *Shares cancelled during the period represent Annual PSUs granted that did not meet the required performance criteria. 2007 LTIP SARs Issued Under the 2006 Plan No SARs have been issued under the 2015 SIP. The table below summarizes 2007 LTIP SARs activity: Number of 2007 LTIP SARs Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at March 31, 2014 730,000 $ 26.73 6.7 $ 38,700 Exercised (15,000 ) 26.73 Outstanding at March 31, 2015 715,000 26.73 5.8 33,000 Exercised (80,000 ) 26.73 Forfeited (15,000 ) 26.73 Outstanding at March 31, 2016 620,000 26.73 3.5 20,600 Exercised (290,000 ) 26.73 Forfeited (90,000 ) 26.73 Outstanding at March 31, 2017 240,000 $ 26.73 5.1 $ 7,920 Exercisable at March 31, 2017 240,000 $ 26.73 5.1 $ 7,920 The maximum contractual term is 10 and 15 years from the grant date for those 2007 LTIP SARs with final vesting dates of December 31, 2011 and December 31, 2015, respectively. LTIP PSUs Issued Under the 2006 Plan and the 2015 SIP The table below summarizes the LTIP PSU activity: Number of Shares Weighted- Average Grant-Date Fair Value Nonvested at March 31, 2014 729,000 $ 67.01 Granted 160,000 98.29 Forfeited (35,000 ) 78.39 Cancelled* (230,000 ) 82.09 Nonvested at March 31, 2015 624,000 68.82 Granted 308,000 50.05 Vested (47,000 ) 26.73 Forfeited (232,000 ) 70.98 Cancelled* (264,000 ) 63.22 Nonvested at March 31, 2016 389,000 61.53 Granted 7,000 56.56 Forfeited (27,000 ) 68.63 Cancelled* (100,000 ) 89.77 Nonvested at March 31, 2017 269,000 $ 50.22 *Shares cancelled represent LTIP PSUs granted that did not meet the required performance criteria. 2017 LTIP NQSOs Issued Under the 2015 SIP The table below summarizes the 2017 LTIP NQSO: Number of Shares Weighted- Average Grant-Date Fair Value Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at March 31, 2016 — $ — — $ — Granted 208,000 61.86 Forfeited (16,000 ) 61.86 Outstanding at March 31, 2017 192,000 $ 61.86 9.0 $ — Exercisable at March 31, 2017 — $ — — $ — The amounts granted are the maximum amounts under the respective options. |
Foreign Currency Exchange Contr
Foreign Currency Exchange Contracts and Hedging | 12 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Foreign Currency Exchange Contracts and Hedging | Foreign Currency Exchange Rate Contracts and Hedging As of March 31, 2017 , the Company had Designated Derivative Contracts with notional amounts totaling approximately $100,000 , and the fair value of approximately $1,365 was recorded in other current assets in the consolidated balance sheets. The Company did not have any Non-Designated Derivative Contracts. The Designated Derivative Contracts are collectively held by a total of four counterparties and will mature at various dates over the next 12 months. As of March 31, 2016 , the Company had Designated Derivative Contracts with notional amounts totaling approximately $105,000 , held by seven counterparties. During the year ended March 31, 2017 , the Company settled Designated Derivative Contracts with notional amounts totaling approximately $11,000 and approximately $105,000 that were entered into during fiscal years 2017 and 2016, respectively. During the year ended March 31, 2016 , the Company settled Designated Derivative Contracts with notional amounts totaling approximately $32,000 and approximately $46,000 that were entered into in fiscal years 2016 and 2015, respectively. During the years ended March 31, 2017 and 2016, the Company also entered into, and settled, Non-Designated Derivative Contracts with total notional amounts of approximately $263,000 and $261,000 , respectively. The non-performance risk of the Company and the counterparties did not have a material impact on the fair value of the derivative instruments. During the year ended March 31, 2017 , the designated hedges remained effective. The effective portion of the gain or loss on the derivative instrument is recognized in OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. As of March 31, 2017 , the amount of unrealized gains on foreign currency exchange rate hedges recognized in accumulated OCI (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 Designated Derivative Contracts: Years Ended March 31, 2017 2016 2015 Amount of gain (loss) recognized in other comprehensive income (loss) on derivative instruments (effective portion) $8,208 $(850) $1,556 Location of amount reclassified from accumulated other comprehensive income (loss) into income (effective portion) Net Sales Net Sales Net Sales Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion) $7,082 $(1,592) $1,226 Location of amount excluded from effectiveness testing Selling, general and administrative expenses Selling, general and administrative expenses Selling, general and administrative expenses Amount of gain (loss) excluded from effectiveness testing $534 $207 $(69) The following table summarizes the effect of Non-Designated Derivative Contracts: Years Ended March 31, 2017 2016 2015 Location of amount recognized in income on derivative instruments Selling, general and administrative expenses Selling, general and administrative expenses Selling, general and administrative expenses Amount of gain (loss) recognized in income on derivative instruments $2,202 $(1,532) $6,383 Subsequent to March 31, 2017 , the Company entered into Non-Designated Derivative Contracts with notional amounts totaling approximately $34,000 , which are expected to mature over the next 9 months, and Designated Derivative Contracts with notional amounts totaling approximately $21,000 , which are expected to mature over the next 12 months. All hedging contracts held at May 30, 2017 were held by a total of four counterparties. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Mar. 31, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated balances of the components within accumulated other comprehensive loss are as follows: As of March 31, 2017 2016 Unrealized gain on foreign currency exchange rate hedges, net of tax $ 856 $ 152 Cumulative foreign currency translation adjustment (27,307 ) (20,709 ) Accumulated other comprehensive loss $ (26,451 ) $ (20,557 ) |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income per Share The reconciliation of basic to diluted weighted-average common shares outstanding is as follows: Years Ended March 31, 2017 2016 2015 Weighted-average shares used in basic computation 32,000,000 32,556,000 34,433,000 Dilutive effect of stock-based awards and options 355,000 483,000 300,000 Weighted-average shares used for diluted computation 32,355,000 33,039,000 34,733,000 Excluded*: Annual RSUs and Annual PSUs 17,000 — — 2007 LTIP SARs — 90,000 525,000 LTIP PSUs 269,000 389,000 624,000 2017 LTIP NQSOs 192,000 — — *The stock-based awards and options excluded from the dilutive effect were excluded either because the shares were anti-dilutive or because the necessary conditions had not been satisfied for the shares to be issuable based on the Company's performance for the years ended March 31, 2017, 2016 and 2015. The number of shares reflected for each of these excluded awards is the maximum number of shares issuable pursuant to these awards. Refer to Note 8, "Stockholder's Equity", for more information on the nature of these awards. |
Reportable Operating Segments
Reportable Operating Segments | 12 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments | Reportable Operating Segments The Company has five reportable operating segments consisting of the strategic business units for the worldwide wholesale operations of the UGG brand, Teva brand, Sanuk brand, other brands, and DTC. The Company's other brands currently consist of the Hoka, Koolaburra and Ahnu brands, and included the TSUBO and MOZO brands for the years ended March 31, 2016 and 2015. The Company's accounting policies for each reportable operating segment are the same as those described in Note 1, "The Company and Summary of Significant Accounting Policies", except that the Company does not allocate corporate overhead costs or non-operating income and expenses to reportable operating segments. The Company evaluates reportable operating segment performance primarily based on net sales and income (loss) from operations. The wholesale operations of each brand are managed separately because each requires different marketing, research and development, design, sourcing, and sales strategies. The income (loss) from operations for each of the reportable operating segments includes only those costs which are specifically related to each reportable operating segment, which consist primarily of cost of sales, costs for research and development, design, sales and marketing, depreciation, amortization, and the costs of employees and their respective expenses that are directly related to each reportable operating segment. The unallocated corporate overhead costs include: costs of the distribution centers, certain executive and stock-based compensation, accounting and finance, legal, information technology, human resources, and facilities costs, among others. During the first quarter of fiscal year 2016, the Company changed its reportable operating segments to combine the previously-separated E-Commerce and retail store operating components into one DTC reportable operating segment. For the year ended March 31, 2015, certain reclassifications were made to conform to the current period presentation. These changes in reportable operating segments only changed the presentation within the below table and did not impact the Company's consolidated financial statements for any period presented. The reportable operating segment information reported in prior periods has been adjusted retrospectively to conform to the current period presentation. Reportable operating segment information for the statements of comprehensive income (loss) is summarized as follows: Years Ended March 31, 2017 2016 2015 Net sales to external customers: UGG brand wholesale $ 826,355 $ 918,102 $ 903,926 Teva brand wholesale 103,694 121,239 116,931 Sanuk brand wholesale 77,552 90,719 102,690 Other brands wholesale 116,206 100,820 76,152 Direct-to-Consumer 666,340 644,317 617,358 $ 1,790,147 $ 1,875,197 $ 1,817,057 (Loss) income from operations: UGG brand wholesale $ 213,407 $ 246,990 $ 269,489 Teva brand wholesale 10,045 17,692 13,320 Sanuk brand wholesale (110,582 ) 15,565 21,914 Other brands wholesale 1,571 (4,384 ) (9,838 ) Direct-to-Consumer 109,802 101,756 150,320 Unallocated overhead costs (226,162 ) (215,492 ) (220,786 ) $ (1,919 ) $ 162,127 $ 224,419 Depreciation, amortization and accretion: UGG brand wholesale $ 3,167 $ 2,254 $ 5,029 Teva brand wholesale 24 54 94 Sanuk brand wholesale 5,018 6,556 6,969 Other brands wholesale 971 1,101 931 Direct-to-Consumer 15,669 19,030 21,165 Unallocated overhead costs 27,779 21,029 15,105 $ 52,628 $ 50,024 $ 49,293 Capital expenditures: UGG brand wholesale $ 3,444 $ 1,458 $ 246 Teva brand wholesale — — 51 Sanuk brand wholesale — 881 487 Other brands wholesale 191 51 351 Direct-to-Consumer 15,277 18,445 19,128 Unallocated overhead costs 25,587 45,351 71,590 $ 44,499 $ 66,186 $ 91,853 Inter-segment sales from the Company’s wholesale reportable operating segments to the DTC reportable operating segment are at the Company’s cost, and there is no inter-segment profit on these inter-segment sales. (Loss) income from operations of the wholesale reportable operating segments does not include any inter-segment gross profit from sales to the DTC reportable operating segment. Reportable operating segment information for the consolidated balance sheets is as follows: As of March 31, 2017 2016 Total assets from reportable operating segments: UGG brand wholesale $ 259,444 $ 248,937 Teva brand wholesale 82,505 87,225 Sanuk brand wholesale 80,102 212,816 Other brands wholesale 70,607 65,072 Direct-to-Consumer 113,400 148,733 $ 606,058 $ 762,783 The assets allocable to each reportable operating 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 reportable operating segments. Unallocated assets are the assets not specifically related to the reportable operating segments and generally include cash and cash equivalents, deferred tax assets, and various other corporate assets shared by the Company's reportable operating segments. Reconciliations of total assets from reportable operating segments to the consolidated balance sheets are as follows: As of March 31, 2017 2016 Total assets from reportable operating segments $ 606,058 $ 762,783 Unallocated cash and cash equivalents 291,764 245,956 Unallocated deferred tax assets 44,708 20,636 Other unallocated corporate assets 249,250 248,693 Consolidated total assets $ 1,191,780 $ 1,278,068 |
Concentration of Business, Sign
Concentration of Business, Significant Customers and Credit Risk | 12 Months Ended |
Mar. 31, 2017 | |
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 a separate reportable operating segment, as management reviews such operations in the aggregate with the aforementioned reportable operating segments. Long-lived assets, which consist of property and equipment, net, in the US and all other countries combined were as follows: As of March 31, 2017 2016 US $ 206,077 $ 211,111 All other countries* 19,454 26,135 Total $ 225,531 $ 237,246 *No other country's long-lived assets comprised more than 10% of the Company's total long-lived assets as of March 31, 2017 and 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 $539,000 or 30.1% , $526,000 or 28.1% , and $519,000 or 28.6% of total net sales were denominated in foreign currencies for the years ended March 31, 2017 , 2016 and 2015, respectively. International sales were 36.2% , 35.0% , and 35.9% , of the Company's total net sales for the years ended March 31, 2017 , 2016 and 2015, respectively. For the years ended March 31, 2017 , 2016 and 2015, no single foreign country comprised more than 10% of the Company's total sales. Management performs regular evaluations concerning the ability of its customers to satisfy their obligations and records a provision for doubtful accounts based upon these evaluations. The Company's five largest customers accounted for approximately 20.3% of worldwide net sales for the year ended March 31, 2017 compared to 21.9% for the year ended March 31, 2016 . No single customer accounted for more than 10% of the Company's net sales in the years ended March 31, 2017 , 2016 and 2015. At March 31, 2017 and 2016 , the Company had one customer representing 11.2% and 12.8% of trade accounts receivable, net, respectively. The Company's production is concentrated at a limited number of independent manufacturing 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 and is sourced primarily from Australia and the UK. Beginning in 2013, in an effort to partially reduce its dependency on sheepskin, the Company began using a proprietary raw material, UGGpure™, which is a wool woven into a durable backing, in some of its UGG brand products. The Company currently purchases UGGpure from two suppliers. 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, foreign currency exchange rate fluctuations, customs duties and related fees, various import controls and other nontariff barriers, restrictions on the transfer of funds, labor unrest and strikes and, in certain parts of the world, political instability. The supply of sheepskin can be adversely impacted by weather conditions, disease, and harvesting decisions that are completely outside the Company's control. 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 equivalents is invested in interest-bearing funds managed by third-party investment management institutions. These investments can include US treasury bonds and securities, money market funds, and municipal bonds, among other investments. Certain of these investments are subject to general credit, liquidity, market, and interest rate risks. As of March 31, 2017 , the Company had experienced no loss or lack of access to cash in its operating accounts or invested cash and cash equivalents. The Company's cash and cash equivalents are as follows: As of March 31, 2017 2016 Money market fund accounts $ 198,992 $ 195,575 Cash 92,772 50,381 Total cash and cash equivalents $ 291,764 $ 245,956 |
Quarterly Summary of Informatio
Quarterly Summary of Information (Unaudited) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Summary of Information (Unaudited) | Quarterly Summary of Information (Unaudited) The Company's business is seasonal, with the highest percentage of UGG brand net sales occurring in the quarters ending September 30th and December 31st and the highest percentage of Teva and Sanuk brand net sales occurring in the quarters ending March 31st and June 30th of each year. Net sales of other brands do not have significant seasonal impact on the Company. Due to the size of the UGG brand relative to the Company's other brands, the Company's aggregate net sales in the quarters ending September 30th and December 31st have significantly exceeded net sales in the quarters ending March 31st and June 30th. Summarized unaudited quarterly financial data are as follows: Fiscal Year 2017 Quarter Ended 6/30/2016 9/30/2016 12/31/2016 3/31/2017 Net sales $ 174,393 $ 485,944 $ 760,345 $ 369,465 Gross profit 76,252 216,425 383,634 158,924 (Loss) income from operations (78,319 ) 54,023 53,250 (30,873 ) Net (loss) income* (58,918 ) 39,305 41,027 (15,704 ) Net (loss) income per share: Basic $ (1.84 ) $ 1.23 $ 1.28 $ (0.49 ) Diluted $ (1.84 ) $ 1.21 $ 1.27 $ (0.49 ) Fiscal Year 2016 Quarter Ended 6/30/2015 9/30/2015 12/31/2015 3/31/2016 Net sales $ 213,805 $ 486,855 $ 795,902 $ 378,635 Gross profit 86,596 214,113 391,017 154,942 (Loss) income from operations (63,708 ) 51,213 202,500 (27,878 ) Net (loss) income* (47,327 ) 36,377 156,921 (23,706 ) Net (loss) income per share: Basic $ (1.43 ) $ 1.12 $ 4.85 $ (0.73 ) Diluted $ (1.43 ) $ 1.11 $ 4.78 $ (0.73 ) *Includes restructuring charges of approximately $29,100 for the year ended March 31, 2017 primarily incurred during the third and fourth quarter of fiscal year 2017, as well as $24,800 for the year ended March 31, 2016, incurred during the fourth quarter of fiscal year 2016. In addition, includes non-cash impairment charges of approximately $113,944 and $4,086 for the Sanuk brand's wholesale reportable operating segment goodwill and patent during the third quarter of fiscal year 2017. Refer to Note 2, "Restructuring", for further information on the nature of restructuring charges incurred and Note 3, "Goodwill and Other Intangible Assets", for further information on the Sanuk brand non-cash impairment charges. |
Schedule II VALUATION AND QUALI
Schedule II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Mar. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II VALUATION AND QUALIFYING ACCOUNTS | The following is a summary of allowances for doubtful accounts, sales discounts, chargebacks and sales returns related to accounts receivable: As of March 31, 2017 2016 2015 Allowance for doubtful accounts (1) Balance at Beginning of Year $ 5,494 $ 2,297 $ 1,798 Additions 2,847 5,120 1,107 Deductions (2,362 ) (1,923 ) (608 ) Balance at End of Year $ 5,979 $ 5,494 $ 2,297 Allowance for sales discounts (2) Balance at Beginning of Year $ 2,672 $ 2,348 $ 2,121 Additions 20,259 25,560 22,869 Deductions (19,831 ) (25,236 ) (22,642 ) Balance at End of Year $ 3,100 $ 2,672 $ 2,348 Allowance for chargebacks (3) Balance at Beginning of Year $ 4,968 $ 4,041 $ 3,064 Additions 4,138 2,267 2,610 Deductions (2,078 ) (1,340 ) (1,633 ) Balance at End of Year $ 7,028 $ 4,968 $ 4,041 Allowance for sales returns (4) Balance at Beginning of Year $ 17,061 $ 9,532 $ 8,586 Additions 62,122 42,392 31,253 Deductions (62,936 ) (34,863 ) (30,307 ) Balance at End of Year $ 16,247 $ 17,061 $ 9,532 Total Allowances $ 32,354 $ 30,195 $ 18,218 (1) The additions to the allowance for doubtful accounts represent estimates of the Company's bad debt expense based upon the factors on which the Company evaluates the collectability of its accounts receivable, with actual recoveries netted into additions. Deductions are for the actual write-off of the receivables. (2) The additions to the allowance for sales discounts represent estimates of discounts to be taken by the Company's customers based upon the amount of available outstanding terms discounts in the year-end aging. Deductions are for the actual discounts taken by the Company's wholesale customers. Discounts for DTC customers are taken at the point of sale and are not reflected in the allowance for sales discounts. (3) The additions to the allowance for chargebacks represent chargebacks taken in the respective year, as well as an estimate of chargebacks related to sales in the current reporting period that will be taken in the future. Deductions are for the actual chargebacks written off against outstanding accounts receivables. (4) The additions to the allowance for sales returns represent estimates of returns based upon the Company's historical wholesale customer returns experience. Deductions are for the actual return of products. Returns of product of DTC customers are taken at the point of sale and are not reflected in the allowance for sales returns. See accompanying reports of independent registered public accounting firm. |
The Company and Summary of Si22
The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Basis of Presentation | The Company and Basis of Presentation The consolidated financial statements and notes thereto include the accounts of Deckers Outdoor Corporation and its wholly-owned subsidiaries (collectively referred to as the "Company"). Accordingly, all references herein to Deckers Outdoor Corporation or "Deckers" include the consolidated results of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Deckers Outdoor Corporation is a global leader in designing, marketing and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high performance activities. As part of its Omni-Channel platform, the Company's brands are aligned across its Fashion Lifestyle group (the UGG and Koolaburra brands) and Performance Lifestyle group (the Teva, Sanuk and Hoka brands). The Company sells its products through quality domestic and international retailers, international distributors, and directly to its end-user consumers both domestically and internationally through its Direct-to-Consumer (DTC) business, which is comprised of its retail stores and E-Commerce websites. Independent third party contractors manufacture all of the Company's products. The Company has five reportable operating segments consisting of the strategic business units for the worldwide wholesale operations of the UGG brand, Teva brand, Sanuk brand, other brands, and DTC. The Company's other brands currently consist of the Hoka, Ahnu and Koolaburra brands. The Company's business is seasonal, with the highest percentage of UGG brand net sales occurring in the quarters ending September 30th and December 31st and the highest percentage of Teva and Sanuk brand net sales occurring in the quarters ending March 31st and June 30th of each year. Net sales of other brands do not have significant seasonal impact on the Company. The Company was incorporated in 1975 under the laws of the State of California and was reincorporated under the laws of the State of Delaware in 1993. Certain reclassifications were made for all prior periods presented including the years ended March 31, 2016 and 2015, to conform to the current period presentation. |
Reportable Operating Segments | Reportable Operating Segments During the first quarter of fiscal year 2016, the Company changed its reportable operating segments to combine the previously separated retail store and E-Commerce operating components into one DTC reportable operating segment. The Company now has five reportable operating segments including the strategic business units for the worldwide wholesale operations of the UGG brand, Teva brand, Sanuk brand, other brands, and DTC. It is by these reportable operating segments that information is reported to the Chief Operating Decision Maker, who is the principal executive officer. The Company performs an annual analysis of the appropriateness of its reportable operating segments. |
Use of Estimates | Use of Estimates The preparation of the Company's consolidated financial statements and notes thereto are in accordance with United States generally accepted accounting principles (US GAAP), which requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and notes thereto. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to inventory write-downs, accounts receivable allowances, returns liabilities, stock-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 assets and liabilities, including goodwill and other intangible assets. These estimates are based on information available as of the date of the consolidated financial statements and notes thereto. For the reasons stated, actual results could differ materially from these estimates. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. |
Allowance for Doubtful Accounts, Sales Discounts and Chargebacks | Allowance for Doubtful Accounts The Company provides an allowance against trade accounts receivable for estimated losses that may result from customers' inability to pay. The Company determines the amount of the allowance by analyzing known uncollectible accounts, aged trade accounts receivables, economic conditions and forecasts, historical experience and the customers' credit-worthiness. Trade accounts receivable that are subsequently determined to be uncollectible are charged or written off against this allowance. Write-offs against this allowance are recorded in selling, general and administrative (SG&A) expenses in the consolidated statements of comprehensive income (loss). The allowance includes specific allowances for trade accounts, all or a portion of which are identified as potentially uncollectible, plus a non-specific allowance for the balance of accounts based on the Company's historical loss experience. Allowances have been established for all projected losses of this nature. Allowance for Sales Discounts The Company provides an allowance against sales discounts for wholesale sales and resulting trade accounts receivable, which reflects a discount that customers may take, generally based upon meeting certain order, shipment and payment terms. The Company uses the amount of the discounts that are available to be taken against the period-end trade accounts receivable to estimate and record a corresponding reserve for sales discounts. Additions to the allowance are recorded against gross sales in the consolidated statements of comprehensive income (loss) and write-offs are recorded against the allowance in the consolidated balance sheets. Allowance for Chargebacks The Company provides an allowance against chargebacks from wholesale customers. When customers pay their invoices, they may take deductions for chargebacks against their invoices, which are often valid, and can include chargebacks for price differences, discounts and short shipments. Therefore, the Company records an allowance for the balance of chargebacks that are outstanding in the accounts receivable balance as of the end of each period, along with an estimated reserve for chargebacks that have not yet been taken against outstanding accounts receivable balances. This estimate is based on historical trends of the timing and amount of chargebacks taken against wholesale customer invoices. Additions to the allowance are recorded against gross sales in the consolidated statements of comprehensive income (loss) and write-offs are recorded against the allowance in the consolidated balance sheets. |
Allowance for Sales Returns and Sales Returns Liability | Allowance for Sales Returns and Sales Returns Liability The Company provides an allowance for anticipated future returns of goods shipped prior to period end and a liability for anticipated returns of goods sold direct to consumers. In general, the Company accepts returns for damaged or defective products. The Company also has a policy whereby returns are accepted from DTC customers for a 30 -day period. The Company bases the amounts of the allowance and liability on any approved customer requests for returns, historical returns experience, and any recent events that could result in a change from historical returns rates, among other factors. Changes to the allowance and returns liability are recorded against gross sales in the consolidated statements of comprehensive income (loss). |
Inventories | Inventories Inventories, principally finished goods on hand and in transit, are stated at the lower of cost (first-in, first-out method) or market (net realizable value). Cost includes initial molds and tooling that are amortized over the life of the mold in cost of sales in the consolidated statements of comprehensive income (loss). Cost also includes shipping and handling fees and costs, which are subsequently expensed to cost of sales. Market values are determined by historical experience with discounted sales, industry trends and the retail environment. |
Property and Equipment, Depreciation and Amortization | Property and Equipment, Depreciation and Amortization Property and equipment is stated at cost less accumulated depreciation and amortization, and generally has a useful life expectancy of at least one year. Property and equipment includes tangible, non-consumable items owned by the Company valued at or above $3 , certain computer software costs and internal or external computer system consulting work valued at or above $3 as defined below, and portable electronic devices valued at or above $1.5 . Tangible, non-consumable items below these amounts are expensed. The value includes the purchase price, sales tax and costs to acquire (shipping and handling), install (excluding site preparation costs), secure and prepare the item for its intended use. Depreciation of property and equipment is calculated using the straight-line method based on estimated useful lives, as summarized below. Capitalized website costs, which are included in the machinery and equipment category below, are immaterial to the Company's consolidated financial statements. Leasehold improvements are amortized to their residual value, if any, on the straight-line basis over their estimated economic useful lives or the lease term, whichever is shorter. The Company allocates depreciation and amortization of property and equipment to cost of sales and SG&A expenses in the consolidated statements of comprehensive income (loss). The majority of the Company's depreciation and amortization, which arises from its Enterprise Resource Planning systems, warehouses, corporate headquarters and retail stores, due to the nature of its operations, is included in SG&A expenses in the consolidated statements of comprehensive income (loss). The Company outsources all manufacturing; therefore, the amount allocated to cost of sales is not material. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Intangible assets consist primarily of indefinite-lived trademarks and definite-lived trademarks, customer and distributor relationships, patents, lease rights, and non-compete agreements arising from the application of purchase accounting. Definite-lived intangible assets are amortized over their estimated useful lives to their estimated residual values, if any, on a straight-line basis and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable based on estimated undiscounted cash flows. If impaired, the asset or asset group is written down to fair value based either on discounted cash flows or appraised values. Goodwill and indefinite-lived intangible assets are not amortized, but are instead tested annually for impairment. Goodwill is initially recorded as the excess of the purchase price over the fair value of the net assets acquired in a business combination. The Company first assesses qualitative factors to determine whether it is necessary to perform a quantitative assessment of the indefinite-lived intangible asset. The Company does not calculate the fair value of the indefinite-lived intangible asset unless the Company determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. If the Company concludes that it is more likely than not that its fair value is less than its carrying amount, then the Company compares the fair value of the indefinite-lived intangible asset to its carrying amount, and if the fair value of the indefinite-lived intangible asset exceeds its carrying amount, no impairment charge will be recognized. If the fair value of the indefinite-lived intangible asset is less than its carrying amount, the Company will record an impairment charge to write down the indefinite-lived intangible asset to its fair value. Impairment and amortization are recorded in SG&A expenses in the consolidated statements of comprehensive income (loss). If, as of the time of conducting the impairment test, it is determined that the value of the reporting unit the acquired net assets were assigned to, as determined by reference to product sales, operating margins or other indicators of value associated with the reporting unit, has declined to a point that the fair value of the reporting unit is below its carrying amount, the Company may be required to write down the amount of goodwill (i.e. take an impairment charge). The goodwill impairment evaluation involves valuing the Company’s various reporting units that carry goodwill, which are currently the same as the Company’s reportable operating segments. Refer to Note 12, "Reportable Operating Segments", for further information on the Company's reportable operating segments. In general, conditions that may indicate impairment include, but are not limited to: a significant adverse change in customer demand or business climate that could affect the value of an asset; change in market share; budget-to-actual performance; consistency of operating margins and capital expenditures; changes in management or key personnel; or changes in general economic conditions. The Company evaluates the Sanuk brand's wholesale reportable segment goodwill and the Teva brand's indefinite-lived trademarks for impairment at October 31st of each year, and evaluates the UGG brand and other brands’ goodwill for impairment at December 31st of each year. The timing of the annual impairment evaluation is prescribed by applicable accounting guidance. The Company also performs interim impairment evaluations of goodwill and indefinite-lived intangible assets if events or changes in circumstances between annual tests indicate additional testing is warranted to determine if goodwill may be impaired. The goodwill impairment test is a two-step quantitative process that combines a market and income approach, which involves the use of estimates and assumptions related to the fair value of the reporting units with which goodwill is associated. In the first step, the Company compares the fair value of each reporting unit with goodwill to its carrying value. The Company determines the fair value of its reporting unit with goodwill using a combination of a discounted cash flow analysis and a market value analysis. For purposes of assessing the fair value, the Company uses best estimates and assumptions, including future sales and operating results, and other factors that could affect fair value or otherwise indicate potential impairment. The Company also considers the reporting units' projected ability to generate income from operations and positive cash flow in future periods, as well as perceived changes in consumer demand, and acceptance of products or factors impacting the industry generally. The fair value assessment could change materially if different estimates and assumptions were used. Furthermore, the estimates and assumptions used to calculate fair value of the reporting unit may change from period to period based upon a number of factors, including actual and projected operating results, declining market conditions, changes in the retail and E-Commerce environment, as well as changes in the competitive environment, and are subject to a high degree of uncertainty. Changes in estimates and assumptions used to determine whether impairment exists, or changes in actual results compared to expected results, could result in additional impairment charges in future periods. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit, goodwill is not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform step two of the goodwill impairment test in order to determine the impairment charge, if any. Step two of the goodwill impairment test involves a hypothetical allocation of the estimated fair value of the reporting unit to its net tangible and intangible assets (excluding goodwill) as if the reporting unit were newly acquired, which results in an implied fair value of the goodwill. If the implied fair value of goodwill, as determined by this hypothetical allocation of assets, is less than the carrying value, an impairment charge is recognized for the difference. Refer to Note 3, "Goodwill and Other Intangible Assets", for further information on the Company's goodwill and intangible assets and annual impairment analysis results. |
Accounting for Long-Lived Assets | Accounting for Long-Lived Assets Other long-lived assets, such as machinery and equipment, internal use software, and leasehold improvements, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount exceeds the estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount exceeds the fair value of the asset. At least quarterly, the Company evaluates whether any impairment-triggering events, including the following, have occurred which would require such asset groups to be tested for impairment: • a significant decrease in the market price of a long-lived asset group; • a significant adverse change in the extent or manner in which a long-lived asset group is being used or in its physical condition; • a significant adverse change in legal factors or in business climate that could affect the value of a long-lived asset group, including an adverse action or assessment by a regulator; • an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset group; • a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset group; or • a current expectation that, more likely than not, a long-lived asset group will be sold or otherwise disposed of significantly before the end of its previously-estimated useful life. When an impairment-triggering event has occurred, the Company tests for recoverability of the asset group's carrying value using estimates of undiscounted future cash flows based on the existing service potential of the applicable asset group. In determining the service potential of a long-lived asset group, the Company considers its remaining useful life, cash-flow generating capacity, and physical output capacity. These estimates include the undiscounted cash flows associated with future expenditures necessary to maintain the existing service potential. Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The Company assesses potential impairment of its retail group long-lived assets by comparing projected 12 -month store cash flows to the current carrying value of the store's long-lived assets. Stores that have been opened for more than one year, or have otherwise been identified by management as having one or more indicators of impairment, with projected 12 -month cash flows less than the current carrying amount of the store's long-lived assets are then reviewed to determine if an impairment exists. An impairment loss, if any, would only reduce the carrying amount of long-lived assets in the group based on the fair value of the asset group. Impairment is recorded in SG&A expenses in the consolidated statements of comprehensive income (loss). |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company transacts business in various foreign currencies and has international sales and expenses denominated in foreign currencies, subjecting the Company to foreign currency exchange rate risk. The Company may enter into foreign currency exchange rate forward or option contracts, generally with maturities of 15 months or less, to reduce the volatility of cash flows primarily related to forecasted revenue denominated in certain foreign currencies. In addition, the Company utilizes foreign currency exchange rate contracts and other derivative instruments to mitigate foreign currency exchange rate risk associated with foreign currency-denominated assets and liabilities, primarily intercompany balances. The Company does not use foreign currency exchange rate contracts for trading purposes. Certain of the Company's foreign currency exchange rate forward contracts are designated cash flow hedges of forecasted sales (Designated Derivative Contracts) and are subject to foreign currency exchange rate risk. These contracts allow the Company to sell Euros and British Pounds in exchange for US dollars at specified contract rates. Forward contracts are used to hedge forecasted sales over specific quarters. Changes in the fair value of Designated Derivative Contracts are recognized as a component of accumulated other comprehensive income (loss) (OCI) within stockholders' equity, and are recognized in the consolidated statements of comprehensive income (loss) during the period which approximates the time the corresponding third-party sales occur. The Company may also enter into foreign currency exchange rate contracts that are not designated as hedging instruments (Non-Designated Derivative Contracts) for financial accounting purposes. These contracts are generally entered into to offset the gains and losses on certain intercompany balances until the expected time of repayment. Accordingly, any gains or losses resulting from changes in the fair value of Non-Designated Derivative Contracts are recognized in SG&A expenses in the consolidated statements of comprehensive income (loss). The gains and losses on these contracts generally offset the gains and losses associated with the underlying foreign currency-denominated balances, which are also reported in SG&A expenses. Refer to Note 9, "Foreign Currency Exchange Rate Contracts and Hedging", for the impact of derivative instruments and hedging activities on the Company's consolidated financial statements. The Company records the assets or liabilities associated with derivative instruments and hedging activities at fair value based on Level 2 inputs in other current assets or other current liabilities, respectively, in the consolidated balance sheets. The accounting for gains and losses resulting from changes in fair value depends on the use of the derivative instrument and whether it is designated and qualifies for hedge accounting. Refer to Note 4, "Fair Value Measurements", for more information on the nature of Level 2 inputs. For all designated hedging relationships, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged transaction, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method used to measure ineffectiveness. The Company factors the nonperformance risk of the Company and the counterparty into the fair value measurements of its derivative instruments. The Company also formally assesses, both at the inception of the hedging relationship and on an ongoing basis, whether the derivative instruments that are used in hedging relationships are highly effective in offsetting changes in cash flows of hedged transactions. The Company assesses hedge effectiveness and measures hedge ineffectiveness at least quarterly. For derivative instruments that are designated and qualify as part of a cash flow hedging relationship, such as Designated Derivative Contracts, the effective portion of the gain or loss on the derivative instrument is recognized in OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative instrument representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. The Company discontinues hedge accounting prospectively when it determines that the derivative instrument is no longer effective in offsetting cash flows attributable to the hedged risk, the derivative instrument expires or is sold, terminated, or exercised, the cash flow hedge is non-designated because a forecasted transaction is not probable of occurring, or management determines to remove the designation of the cash flow hedge. In all situations in which hedge accounting is discontinued and the derivative instrument remains outstanding, the Company continues to carry the derivative instrument at its fair value on the consolidated balance sheets and recognizes any subsequent changes in fair value in earnings. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and the accumulated gains or losses in OCI related to the hedging relationship are immediately recognized into earnings. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is the total of net earnings and all other non-owner changes in equity. Comprehensive income (loss) includes net income (loss), foreign currency translation adjustments, and unrealized gains and losses on cash flow hedges. |
Net Income per Share | Net Income per Share Basic net income per share represents net income divided by the weighted-average number of common shares outstanding for the period. Diluted net income per share represents net income divided by the weighted-average number of shares outstanding, including the dilutive impact of potential issuances of common stock. |
Foreign Currency Translation | Foreign Currency Translation The Company considers the US dollar as its functional currency. The Company has certain wholly-owned foreign subsidiaries with functional currencies other than the US dollar. In most cases, the Company's foreign subsidiaries' local currency is the same as the designated functional currency. The Company holds a portion of its cash and other monetary assets and liabilities in currencies other than its subsidiary's functional currency, and is exposed to financial statement transaction gains and losses as a result of re-measurement of the financial positions held in US dollars and foreign currencies into the functional currency of subsidiaries that are non-US dollar functional. The Company re-measures these monetary assets and liabilities using the exchange rate at the end of the reporting period, which results in gains and losses that are included in SG&A expenses in the consolidated statements of comprehensive income (loss) as incurred, except for gains and losses arising on intercompany foreign currency transactions that are of a long-term investment nature. In addition, the Company translates assets and liabilities of subsidiaries with reporting currencies other than US dollars into US dollars using the exchange rates at of the end of the reporting period, which results in financial statement translation gains and losses in OCI. |
Non-qualified Deferred Compensation | Non-qualified Deferred Compensation In 2010, the Company established a non-qualified deferred compensation program that permits a select group of management employees to defer earnings to a future date on a non-qualified basis. For each plan year, the Company's Board of Directors may, but is not required to, contribute any amount it desires to any participant under this program. The Company's contribution is determined by the Board of Directors annually. In March 2015, the Board of Directors approved a Company contribution feature for future plan years beginning in calendar year 2016 and gave management the authority to approve actual contributions. As of March 31, 2017 and 2016, no payments were made or pending under this program. 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. |
Stock-Based Compensation | Stock-Based Compensation All of the Company's stock-based compensation is classified within stockholders' equity. Stock compensation expense is measured at the grant date based on the value of the award and is expensed ratably over the service period. The Company recognizes expense only for those awards that management deems probable of achieving the performance criteria and service conditions. Determining the fair value and related expense of stock-based compensation requires judgment, including estimating the percentage of awards that will be forfeited and probabilities of meeting the awards' performance criteria. If actual forfeitures differ significantly from the estimates or if probabilities change during a period, stock compensation expense and the Company's results of operations could be materially impacted. Stock compensation expense is included in SG&A expenses in the consolidated statements of comprehensive income (loss). |
Revenue Recognition | Revenue Recognition The Company recognizes wholesale, E-Commerce, and international distributor revenue when products are shipped, and retail revenue at the point of sale. All sales are recognized when the customer takes title and assumes risk of loss, collection of the related receivable is reasonably assured, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable. For wholesale and international distributor sales, allowances for estimated returns, discounts, chargebacks, and bad debts are provided for when related revenue is recorded. For E-Commerce sales, allowances for estimated returns and bad debts are provided for when related revenue is recorded. For retail sales, allowances for estimated returns are provided for when related revenue is recorded. Amounts billed for shipping and handling costs are recorded as a component of net sales, while the related costs paid to third-party shipping companies are recorded as cost of sales. The Company presents revenue net of taxes (for example, sales taxes, use taxes, value-added taxes, and some types of excise taxes) collected from customers and remitted to governmental authorities. |
Research and Development Costs | Research and Development Costs All research and development costs are expensed as incurred. |
Advertising, Marketing, and Promotion Costs | Advertising, Marketing, and Promotion Expenses Advertising costs are expensed the first time the advertisement is run. All other costs of advertising, marketing, and promotion are expensed as incurred. |
Rent Expense | Rent Expense Rent expense is recorded using the straight-line method to account for scheduled rental increases or rent holidays. Lease incentives for tenant improvement allowances are recorded as reductions of rent expense over the lease term. The rental payments under some of the Company's retail store leases are based on a minimum rental plus a percentage of the store's sales in excess of stipulated amounts. Rent expenses are included in SG&A expenses in the consolidated statements of comprehensive income (loss). |
Retirement Plan | Retirement Plan The Company provides a 401(k) defined contribution plan that eligible US employees may elect to participate in through tax-deferred contributions. The Company matches 50% of each eligible participant's tax-deferred contributions on up to 6% of eligible compensation on a per payroll period basis, with a true-up contribution if such eligible participant is employed by the Company on the last day of the calendar year. Internationally, the Company has various defined contribution plans. Certain international locations require mandatory contributions under social programs, and the Company contributes at least the statutory minimums. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in the consolidated statements of comprehensive income (loss) in the period that includes the enactment date. The Company recognizes the effect of income tax positions in the consolidated financial statements only if those positions are more likely than not to be sustained upon examination. Recognized income tax positions are measured at the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company accounts for interest and penalties accrued for income tax contingencies as interest expense in the consolidated statements of comprehensive income (loss). |
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. In August 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 with respect to the Company's annual and interim reporting periods beginning 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 continuing to evaluate the effect that the adoption of these ASUs will have on its consolidated financial statements and related disclosures, and has not yet selected a transition method. The Company is currently evaluating its business and contracts to determine any changes to accounting policies, processes or systems necessary to adopt the requirements of the new standard. The Company believes the adoption of this ASU will not have a material impact on its consolidated financial statements, but it is expected to result in expanded disclosures. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory , which changed the US GAAP requirement that, at each financial statement date, entities measure inventory at the lower of cost or market, which is typically determined by reference to the current replacement cost, net realizable value, and the net realizable value less an approximate normal profit margin. The definition of net realizable value under this ASU is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU only applies to inventory that is measured using the first-in, first-out or average cost methods. This ASU is effective with respect to the Company's annual and interim reporting periods beginning on April 1, 2017, with early adoption permitted, and should be applied prospectively. The adoption of this ASU will not have a material impact on the Company's consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 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 on the balance sheet for those leases classified as operating leases under previous US GAAP. A lessee should recognize a liability in the balance sheet 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 should include payments to be made in optional periods only if the lessee is reasonably certain that it will exercise an option to extend the lease or will not 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 that it will exercise that purchase option. This ASU requires a modified retrospective transition method for leases existing at the beginning of the earliest comparative period presented in the adoption-period consolidated financial statements. Any leases that expire before the initial application will not require any accounting adjustment. This ASU is effective with respect to the Company's annual and interim reporting periods beginning April 1, 2019. The Company is evaluating the effect that the adoption of this ASU will have on its consolidated financial statements and related disclosures, and currently expects an increase in assets and liabilities due to the recognition of the required right-of-use asset and corresponding liability for all lease obligations that are currently classified as operating leases, such as retail stores, showrooms, and distribution facilities, as well as additional disclosure on all existing lease obligations. The income statement recognition of lease expense is not expected to materially change from the current methodology. 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 associated with 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 with respect to the Company's annual and interim reporting periods beginning April 1, 2017 and the Company decided to apply this ASU prospectively. The Company evaluated the effect that the adoption of this ASU would have on its consolidated financial statements and related disclosures, and concluded that its adoption will not have a material impact on income tax expenses or additional paid-in capital for results of operations. However, there will be income statement volatility due to the recognition of all excess tax benefits and deficiencies within the consolidated statements of comprehensive income (loss), which will be driven by the number of shares vesting in any given period, and the change in share price between the grant date and the date that the shares vest. Increasing share prices from the grant date to the vesting date will result in lower income tax expense and higher net income. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments . The ASU addresses specific cash flow issues with the objective of reducing the diversity in practice prior to issuance of the update. This ASU is effective with respect to the Company’s annual and interim reporting periods beginning April 1, 2018, with early adoption permitted. The guidance should be applied retrospectively, requiring adjustment to all comparative periods presented, unless it is impractical to do so, in which case, the guidance should be applied prospectively as of the earliest date practicable. The Company is evaluating the effect that the adoption of this ASU will have on its statement of cash flows and related disclosures, but its adoption is not expected to have a material impact. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates step two from the goodwill impairment test. In computing the implied fair value of goodwill under current step two, an entity previously had to perform procedures to determine the fair value of its assets and liabilities at the impairment testing date following the procedure required to determine the fair value of assets acquired and liabilities assumed in a business combination. Under this ASU, an entity is required to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. This ASU is effective with respect to the Company’s annual and interim reporting periods beginning April 1, 2020, with early adoption permitted. The Company is evaluating the effect that the adoption of this ASU will have on its consolidated financial statements and related disclosures. |
Fair Value Measurement | The fair value of the Company's cash and cash equivalents, trade accounts receivable, inventory, 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 tax payable approximate the carrying values due to the relatively short maturities of these assets and liabilities. The fair values of the Company's long-term liabilities do not significantly differ from the carrying values. The fair value of the contingent consideration related to acquisitions and of the Company's derivative instruments are measured and recorded at fair value on a recurring basis. Changes in fair value of contingent consideration resulting from either accretion or changes in discount rates or in the expectations of achieving the performance criteria are recorded in SG&A expenses in the consolidated statements of comprehensive income (loss). The Company records the fair value of assets or liabilities associated with derivative instruments and hedging activities in other current assets or other accrued expenses, respectively, in the consolidated balance sheets. The inputs used in measuring fair value are prioritized into the following hierarchy: • Level 1: Quoted prices 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 Company and Summary of Si23
The Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of property and equipment | Property and equipment is summarized as follows: As of March 31, Useful life (years) 2017 2016 Land Indefinite $ 32,843 $ 25,543 Building 39.5 38,990 38,920 Machinery and equipment 1-10 199,602 189,085 Furniture and fixtures 1-7 38,720 38,948 Leasehold improvements 1-11 106,134 108,557 Gross property and equipment 416,289 401,053 Less accumulated depreciation and amortization 190,758 163,807 Property and equipment, net $ 225,531 $ 237,246 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the restructuring charges incurred in fiscal years 2017 and 2016: Lease termination costs Retail store fixed asset impairments Severance costs Software and office fixed asset impairments Termination of various contracts and other services Total Fiscal year 2016 charges $ 8,900 $ 5,800 $ 4,000 $ 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 9,000 3,600 5,800 3,200 7,500 29,100 Paid in cash (12,000 ) — (6,400 ) — (5,400 ) (23,800 ) Non-cash — (3,600 ) (300 ) (3,200 ) — (7,100 ) Liability as of March 31, 2017 $ 4,700 $ — $ 2,500 $ — $ 3,900 $ 11,100 The following table summarizes these restructuring charges by reportable operating segment: Years Ended March 31, 2017 2016 UGG brand wholesale $ 2,100 $ — Teva brand wholesale — — Sanuk brand wholesale 100 3,000 Other brands wholesale 100 2,500 Direct-to-Consumer 12,900 10,500 Unallocated overhead costs 13,900 8,800 Total restructuring charges $ 29,100 $ 24,800 |
Goodwill and Other Intangible25
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and other intangible assets | The Company's goodwill and other intangible assets are as follows: As of March 31, 2017 2016 Goodwill UGG brand $ 6,101 $ 6,101 Sanuk brand — 113,944 Other brands 7,889 7,889 Total Goodwill 13,990 127,934 Other Intangible Assets Indefinite-lived Intangible Assets Trademarks 15,455 15,455 Definite-lived Intangible Assets Trademarks 55,244 55,244 Other 57,629 57,629 Total gross carrying amount 112,873 112,873 Accumulated amortization (54,361 ) (45,302 ) Accumulated impairment (8,829 ) — Net Definite-lived Intangible Assets 49,683 67,571 Total Other Intangible Assets 65,138 83,026 Total Goodwill and Other Intangible Assets $ 79,128 $ 210,960 |
Schedule of changes in goodwill | Changes in the Company's goodwill balance for the periods presented in the consolidated balance sheets are as follows: Goodwill, Gross Accumulated Impairment Goodwill, Net Balance, March 31, 2015 $ 143,765 $ (15,831 ) $ 127,934 Changes related to acquisitions, impairments and other adjustments — — — Balance, March 31, 2016 143,765 (15,831 ) 127,934 Changes related to acquisitions, impairments and other adjustments — (113,944 ) (113,944 ) Balance, March 31, 2017 $ 143,765 $ (129,775 ) $ 13,990 |
Schedule of finite-lived intangible assets | Charges incurred in the consolidated statements of comprehensive income (loss) relevant to the Company's other intangible assets during the year ended March 31, 2017 are as follows: Balance, March 31, 2016 $ 83,026 Impairment charges (8,829 ) Amortization expense (7,945 ) Foreign currency exchange rate fluctuations (1,114 ) Balance, March 31, 2017 $ 65,138 |
Schedule of expected amortization expense on existing intangible assets | The following table summarizes the expected amortization expense as of March 31, 2017 for amortizable intangible assets for the next five years and thereafter: Years Ending March 31: 2018 $ 7,572 2019 6,106 2020 3,439 2021 2,526 2022 2,521 Thereafter 27,519 $ 49,683 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The assets and liabilities that are measured on a recurring basis at fair value are summarized as follows: Fair Value as of March 31, 2017 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets (liabilities) at fair value: Non-qualified deferred compensation asset $ 6,662 $ 6,662 $ — $ — Non-qualified deferred compensation liability (4,140 ) (4,140 ) — — Designated Derivative Contracts asset 1,365 — 1,365 — Fair Value as of March 31, 2016 Fair Value Measurement Using Level 1 Level 2 Level 3 Assets (liabilities) at fair value: Non-qualified deferred compensation asset $ 6,083 $ 6,083 $ — $ — Non-qualified deferred compensation liability (6,301 ) (6,301 ) — — Designated Derivative Contracts asset 2,903 — 2,903 — Designated Derivative Contracts liability (2,549 ) — (2,549 ) — Contingent consideration for acquisition of business (20,000 ) — — (20,000 ) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents a reconciliation of the Level 3 measurement (rounded): Balance, March 31, 2015 $ 25,700 Payments (1,300 ) Change in fair value (4,400 ) Balance, March 31, 2016 20,000 Payments (20,000 ) Balance, March 31, 2017 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of income taxes | Components of income tax (benefit) expense are as follows: Years Ended March 31, 2017 2016 2015 Current Federal $ 2,184 $ 11,971 $ 35,459 State 1,576 2,443 6,861 Foreign 8,039 12,039 7,069 Total 11,799 26,453 49,389 Deferred Federal (20,287 ) 7,887 8,234 State (3,446 ) 1,113 624 Foreign (762 ) (833 ) 1,112 Total (24,495 ) 8,167 9,970 Income tax (benefit) expense $ (12,696 ) $ 34,620 $ 59,359 |
Actual income taxes differed from that obtained by applying the statutory federal income tax rate to income before income taxes | Income tax (benefit) expense differed from that obtained by applying the statutory federal income tax rate to income before income taxes as follows: Years Ended March 31, 2017 2016 2015 Computed expected income taxes $ (2,445 ) $ 54,910 $ 77,399 State income taxes, net of federal income tax benefit (1,403 ) 1,298 3,564 Foreign rate differential (8,062 ) (28,233 ) (25,535 ) Unrecognized tax benefits 2,691 3,670 3,566 Income tax expense on diminution of operations and nondeductible goodwill 3,921 1,352 — Foreign income withholding tax expense 432 — — Nontaxable income (5,055 ) — — Statutory foreign income tax (benefit) expense (2,504 ) (477 ) 20 Other (271 ) 2,100 345 Income tax (benefit) expense $ (12,696 ) $ 34,620 $ 59,359 |
Tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are presented as follows: As of March 31, 2017 2016 Deferred tax assets (liabilities), noncurrent: Amortization and impairment of intangible assets $ 28,304 $ (5,128 ) Depreciation of property and equipment (19,511 ) (8,804 ) Stock-based compensation 6,258 10,118 Deferred rent 6,809 5,383 Acquisition costs 751 745 Uniform capitalization adjustment to inventory 4,971 5,280 Bad debt and other reserves 15,946 14,163 State taxes (145 ) 863 Prepaid expenses (4,144 ) (3,622 ) Accrued bonuses 1,456 536 Foreign currency exchange rate hedges (534 ) (94 ) Other 1,376 1,196 Net operating loss carry-forwards 3,171 — Net deferred tax assets $ 44,708 $ 20,636 |
Reconciliation of the beginning and ending amounts of total unrecognized tax benefits | A reconciliation of the beginning and ending amounts of total unrecognized tax benefits is as follows: Balance, March 31, 2015 $ 4,667 Gross increase related to current year tax positions 2,332 Gross increase related to prior year tax positions 2,059 Settlements (363 ) Balance, March 31, 2016 8,695 Gross increase related to current year tax positions 1,878 Gross increase related to prior year tax positions 1,154 Balance, March 31, 2017 $ 11,727 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum commitments under the operating lease agreements | Future minimum commitments under the lease agreements are as follows: Years Ending March 31: Future Minimum Lease Commitments 2018 $ 51,319 2019 49,040 2020 41,261 2021 36,221 2022 31,459 Thereafter 102,170 $ 311,470 |
Component of total rental expense | The following schedule shows the composition of total rental expense: Years Ended March 31, 2017 2016 2015 Minimum rentals $ 63,050 $ 61,227 $ 61,363 Contingent rentals 15,281 16,067 14,707 $ 78,331 $ 77,294 $ 76,070 |
Schedule of future commitments under purchase orders and other agreements | Minimum commitments for these contracts at March 31, 2017 were as follows: Contract Effective Date Final Target Date Contract Value Remaining May 2015 September 2017 $ 55,200 $ 36,567 September 2015 September 2017 7,200 2,172 October 2016 September 2017 16,105 13,427 November 2016 September 2017 24,000 17,003 October 2016 September 2018 53,700 53,700 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock Options, Valuation Assumptions | The following table presents the weighted-average valuation assumptions used for the recognition of stock compensation expense for the 2017 LTIP NQSOs granted during the year ended March 31, 2017 : Expected life (in years) 5.94 Expected volatility 41.8 % Risk free interest rate 1.95 % Dividend yield — % Weighted-average exercise price $ 61.86 Weighted-average option value $ 26.27 |
Class of Treasury Stock | The following is a reconciliation of the Company's retained earnings for repurchases of its common stock during the year ended March 31, 2017 : Retained Earnings Balance at March 31, 2016 $ 826,449 Net income 5,710 Repurchases of common stock (12,570 ) Balance at March 31, 2017 $ 819,589 |
Summary of stock compensation amounts recognized in the consolidated statements of comprehensive income | The table below summarizes stock compensation expense by award or option type recognized in the consolidated statements of comprehensive income (loss): Years Ended March 31, 2017 2016 2015 Stock compensation expense recorded for: Annual RSUs $ 5,191 $ 2,356 $ 1,603 Annual PSUs 1,203 3,807 7,692 2007 LTIP SARs (1,949 ) 893 1,846 LTIP PSUs* (296 ) (1,511 ) 1,323 2017 LTIP NQSOs 694 — — Directors' shares 1,168 1,077 1,060 Employee Stock Purchase Plan** 164 — — Total stock compensation expense 6,175 6,622 13,524 Income tax benefit recognized (2,322 ) (2,525 ) (5,143 ) Net stock compensation expense $ 3,853 $ 4,097 $ 8,381 *2007 LTIP PSUs, 2013 LTIP PSUs, 2015 LTIP PSUs, and 2016 LTIP PSUs are collectively referred to herein as “LTIP PSUs”. **The 2015 Employee Stock Purchase Plan (2015 ESPP) provides for the initial authorization of 1,000,000 shares of the Company’s common stock for sale to eligible employees. Eligible employees commenced participation in the 2015 ESPP in March 2016 with payroll deductions. Each consecutive purchase period is six months in duration and shares are 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. Purchase windows take place in February and August of each fiscal year. |
Summary of the total remaining unrecognized compensation cost related to nonvested awards, that are considered probable of vesting and the weighted-average period over which the cost is expected to be recognized | The table below summarizes the total remaining unrecognized stock compensation expense related to nonvested awards that the Company considers are probable to vest and the weighted-average period over which the cost is expected to be recognized as of March 31, 2017 : Unrecognized Stock Compensation Expense Weighted-Average Remaining Vesting Period (Years) Annual RSUs $ 7,497 1.4 Annual PSUs 454 1.0 2007 LTIP SARs — — LTIP PSUs — — 2017 LTIP NQSOs 4,344 2.0 Total $ 12,295 |
Summary of Nonvested Stock Units | The table below summarizes Annual RSU and Annual PSU activity: Number of Shares Weighted- Average Grant-Date Fair Value Nonvested at March 31, 2014 331,000 $ 62.21 Granted 196,000 82.34 Vested (142,000 ) 68.39 Forfeited (30,000 ) 64.18 Cancelled* (15,000 ) 84.04 Nonvested at March 31, 2015 340,000 70.11 Granted 240,000 70.82 Vested (132,000 ) 66.74 Forfeited (91,000 ) 72.84 Cancelled* (154,000 ) 74.22 Nonvested at March 31, 2016 203,000 68.80 Granted 268,000 59.34 Vested (111,000 ) 65.37 Forfeited (66,000 ) 70.79 Cancelled* (68,000 ) 65.23 Nonvested at March 31, 2017 226,000 $ 63.96 *Shares cancelled during the period represent Annual PSUs granted that did not meet the required performance criteria. |
Summary of Stock Appreciation Rights Issued Under the 2006 Plan | The table below summarizes 2007 LTIP SARs activity: Number of 2007 LTIP SARs Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at March 31, 2014 730,000 $ 26.73 6.7 $ 38,700 Exercised (15,000 ) 26.73 Outstanding at March 31, 2015 715,000 26.73 5.8 33,000 Exercised (80,000 ) 26.73 Forfeited (15,000 ) 26.73 Outstanding at March 31, 2016 620,000 26.73 3.5 20,600 Exercised (290,000 ) 26.73 Forfeited (90,000 ) 26.73 Outstanding at March 31, 2017 240,000 $ 26.73 5.1 $ 7,920 Exercisable at March 31, 2017 240,000 $ 26.73 5.1 $ 7,920 |
Summary of Restricted Stock Units Issued | The table below summarizes the LTIP PSU activity: Number of Shares Weighted- Average Grant-Date Fair Value Nonvested at March 31, 2014 729,000 $ 67.01 Granted 160,000 98.29 Forfeited (35,000 ) 78.39 Cancelled* (230,000 ) 82.09 Nonvested at March 31, 2015 624,000 68.82 Granted 308,000 50.05 Vested (47,000 ) 26.73 Forfeited (232,000 ) 70.98 Cancelled* (264,000 ) 63.22 Nonvested at March 31, 2016 389,000 61.53 Granted 7,000 56.56 Forfeited (27,000 ) 68.63 Cancelled* (100,000 ) 89.77 Nonvested at March 31, 2017 269,000 $ 50.22 *Shares cancelled represent LTIP PSUs granted that did not meet the required performance criteria. |
Schedule of Stock Options, Activity | The table below summarizes the 2017 LTIP NQSO: Number of Shares Weighted- Average Grant-Date Fair Value Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at March 31, 2016 — $ — — $ — Granted 208,000 61.86 Forfeited (16,000 ) 61.86 Outstanding at March 31, 2017 192,000 $ 61.86 9.0 $ — Exercisable at March 31, 2017 — $ — — $ — |
Foreign Currency Exchange Con30
Foreign Currency Exchange Contracts and Hedging (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of location and amount of gains and losses related to derivatives designated as hedging instruments reported in consolidated financial statements | The following table summarizes the effect of Designated Derivative Contracts: Years Ended March 31, 2017 2016 2015 Amount of gain (loss) recognized in other comprehensive income (loss) on derivative instruments (effective portion) $8,208 $(850) $1,556 Location of amount reclassified from accumulated other comprehensive income (loss) into income (effective portion) Net Sales Net Sales Net Sales Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion) $7,082 $(1,592) $1,226 Location of amount excluded from effectiveness testing Selling, general and administrative expenses Selling, general and administrative expenses Selling, general and administrative expenses Amount of gain (loss) excluded from effectiveness testing $534 $207 $(69) |
Schedule of location and amount of gains and losses related to derivatives not designated as hedging instruments reported in consolidated financial statements | The following table summarizes the effect of Non-Designated Derivative Contracts: Years Ended March 31, 2017 2016 2015 Location of amount recognized in income on derivative instruments Selling, general and administrative expenses Selling, general and administrative expenses Selling, general and administrative expenses Amount of gain (loss) recognized in income on derivative instruments $2,202 $(1,532) $6,383 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Components of accumulated other comprehensive income | Accumulated balances of the components within accumulated other comprehensive loss are as follows: As of March 31, 2017 2016 Unrealized gain on foreign currency exchange rate hedges, net of tax $ 856 $ 152 Cumulative foreign currency translation adjustment (27,307 ) (20,709 ) Accumulated other comprehensive loss $ (26,451 ) $ (20,557 ) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The reconciliation of basic to diluted weighted-average common shares outstanding is as follows: Years Ended March 31, 2017 2016 2015 Weighted-average shares used in basic computation 32,000,000 32,556,000 34,433,000 Dilutive effect of stock-based awards and options 355,000 483,000 300,000 Weighted-average shares used for diluted computation 32,355,000 33,039,000 34,733,000 Excluded*: Annual RSUs and Annual PSUs 17,000 — — 2007 LTIP SARs — 90,000 525,000 LTIP PSUs 269,000 389,000 624,000 2017 LTIP NQSOs 192,000 — — |
Reportable Operating Segments (
Reportable Operating Segments (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of business segments information | Reportable operating segment information for the consolidated balance sheets is as follows: As of March 31, 2017 2016 Total assets from reportable operating segments: UGG brand wholesale $ 259,444 $ 248,937 Teva brand wholesale 82,505 87,225 Sanuk brand wholesale 80,102 212,816 Other brands wholesale 70,607 65,072 Direct-to-Consumer 113,400 148,733 $ 606,058 $ 762,783 Reportable operating segment information for the statements of comprehensive income (loss) is summarized as follows: Years Ended March 31, 2017 2016 2015 Net sales to external customers: UGG brand wholesale $ 826,355 $ 918,102 $ 903,926 Teva brand wholesale 103,694 121,239 116,931 Sanuk brand wholesale 77,552 90,719 102,690 Other brands wholesale 116,206 100,820 76,152 Direct-to-Consumer 666,340 644,317 617,358 $ 1,790,147 $ 1,875,197 $ 1,817,057 (Loss) income from operations: UGG brand wholesale $ 213,407 $ 246,990 $ 269,489 Teva brand wholesale 10,045 17,692 13,320 Sanuk brand wholesale (110,582 ) 15,565 21,914 Other brands wholesale 1,571 (4,384 ) (9,838 ) Direct-to-Consumer 109,802 101,756 150,320 Unallocated overhead costs (226,162 ) (215,492 ) (220,786 ) $ (1,919 ) $ 162,127 $ 224,419 Depreciation, amortization and accretion: UGG brand wholesale $ 3,167 $ 2,254 $ 5,029 Teva brand wholesale 24 54 94 Sanuk brand wholesale 5,018 6,556 6,969 Other brands wholesale 971 1,101 931 Direct-to-Consumer 15,669 19,030 21,165 Unallocated overhead costs 27,779 21,029 15,105 $ 52,628 $ 50,024 $ 49,293 Capital expenditures: UGG brand wholesale $ 3,444 $ 1,458 $ 246 Teva brand wholesale — — 51 Sanuk brand wholesale — 881 487 Other brands wholesale 191 51 351 Direct-to-Consumer 15,277 18,445 19,128 Unallocated overhead costs 25,587 45,351 71,590 $ 44,499 $ 66,186 $ 91,853 |
Schedule of reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | Reconciliations of total assets from reportable operating segments to the consolidated balance sheets are as follows: As of March 31, 2017 2016 Total assets from reportable operating segments $ 606,058 $ 762,783 Unallocated cash and cash equivalents 291,764 245,956 Unallocated deferred tax assets 44,708 20,636 Other unallocated corporate assets 249,250 248,693 Consolidated total assets $ 1,191,780 $ 1,278,068 |
Concentration of Business, Si34
Concentration of Business, Significant Customers and Credit Risk (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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, net, in the US and all other countries combined were as follows: As of March 31, 2017 2016 US $ 206,077 $ 211,111 All other countries* 19,454 26,135 Total $ 225,531 $ 237,246 *No other country's long-lived assets comprised more than 10% of the Company's total long-lived assets as of March 31, 2017 and 2016 . |
Schedule of the Company's cash and cash equivalents | The Company's cash and cash equivalents are as follows: As of March 31, 2017 2016 Money market fund accounts $ 198,992 $ 195,575 Cash 92,772 50,381 Total cash and cash equivalents $ 291,764 $ 245,956 |
Quarterly Summary of Informat35
Quarterly Summary of Information (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of unaudited quarterly financial data | Summarized unaudited quarterly financial data are as follows: Fiscal Year 2017 Quarter Ended 6/30/2016 9/30/2016 12/31/2016 3/31/2017 Net sales $ 174,393 $ 485,944 $ 760,345 $ 369,465 Gross profit 76,252 216,425 383,634 158,924 (Loss) income from operations (78,319 ) 54,023 53,250 (30,873 ) Net (loss) income* (58,918 ) 39,305 41,027 (15,704 ) Net (loss) income per share: Basic $ (1.84 ) $ 1.23 $ 1.28 $ (0.49 ) Diluted $ (1.84 ) $ 1.21 $ 1.27 $ (0.49 ) Fiscal Year 2016 Quarter Ended 6/30/2015 9/30/2015 12/31/2015 3/31/2016 Net sales $ 213,805 $ 486,855 $ 795,902 $ 378,635 Gross profit 86,596 214,113 391,017 154,942 (Loss) income from operations (63,708 ) 51,213 202,500 (27,878 ) Net (loss) income* (47,327 ) 36,377 156,921 (23,706 ) Net (loss) income per share: Basic $ (1.43 ) $ 1.12 $ 4.85 $ (0.73 ) Diluted $ (1.43 ) $ 1.11 $ 4.78 $ (0.73 ) *Includes restructuring charges of approximately $29,100 for the year ended March 31, 2017 primarily incurred during the third and fourth quarter of fiscal year 2017, as well as $24,800 for the year ended March 31, 2016, incurred during the fourth quarter of fiscal year 2016. In addition, includes non-cash impairment charges of approximately $113,944 and $4,086 for the Sanuk brand's wholesale reportable operating segment goodwill and patent during the third quarter of fiscal year 2017. Refer to Note 2, "Restructuring", for further information on the nature of restructuring charges incurred and Note 3, "Goodwill and Other Intangible Assets", for further information on the Sanuk brand non-cash impairment charges. |
The Company and Summary of Si36
The Company and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015segment | Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 5 | |||
Money market fund accounts | $ 198,992 | $ 195,575 | ||
Impairment losses | $ 13,222 | 9,773 | $ 0 | |
Cash flow determination period | 12 months | |||
Maximum maturity period of foreign currency forward or option contracts | 15 months | |||
Direct-to-Consumer | ||||
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Sales allowance, allowable return period | 30 days | |||
Fixed assets and software | ||||
Segment Reporting Information [Line Items] | ||||
Impairment losses | $ 11,300 | $ 19,000 |
The Company and Summary of Si37
The Company and Summary of Significant Accounting Policies - Property Plant Equipment (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property and equipment | ||
Gross property and equipment | $ 416,289,000 | $ 401,053,000 |
Accumulated depreciation | 190,758,000 | 163,807,000 |
Net property and equipment | $ 225,531,000 | 237,246,000 |
Minimum | ||
Property and equipment | ||
Useful life | 1 year | |
Tangibles, Non-consumable Equipment | ||
Property and equipment | ||
Property, plant and equipment capitalization threshold | $ 3,000 | |
Computer Software and Computer Related Consulting Costs | ||
Property and equipment | ||
Property, plant and equipment capitalization threshold | 3,000 | |
Portable Electronic Devices | ||
Property and equipment | ||
Property, plant and equipment capitalization threshold | 1,500 | |
Land | ||
Property and equipment | ||
Gross property and equipment | $ 32,843,000 | 25,543,000 |
Building | ||
Property and equipment | ||
Useful life | 39 years 6 months | |
Gross property and equipment | $ 38,990,000 | 38,920,000 |
Machinery and equipment | ||
Property and equipment | ||
Gross property and equipment | $ 199,602,000 | 189,085,000 |
Machinery and equipment | Minimum | ||
Property and equipment | ||
Useful life | 1 year | |
Machinery and equipment | Maximum | ||
Property and equipment | ||
Useful life | 10 years | |
Furniture and fixtures | ||
Property and equipment | ||
Gross property and equipment | $ 38,720,000 | 38,948,000 |
Furniture and fixtures | Minimum | ||
Property and equipment | ||
Useful life | 1 year | |
Furniture and fixtures | Maximum | ||
Property and equipment | ||
Useful life | 7 years | |
Leasehold improvements | ||
Property and equipment | ||
Gross property and equipment | $ 106,134,000 | $ 108,557,000 |
Leasehold improvements | Minimum | ||
Property and equipment | ||
Useful life | 1 year | |
Leasehold improvements | Maximum | ||
Property and equipment | ||
Useful life | 11 years |
The Company and Summary of Si38
The Company and Summary of Significant Accounting Policies - Stock Based Compensation (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Other Current Liabilities | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Non-qualified deferred compensation liability | $ 609 | $ 308 |
Other Noncurrent Liabilities | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Deferred compensation liability, noncurrent | $ 3,531 | $ 5,993 |
The Company and Summary of Si39
The Company and Summary of Significant Accounting Policies- Advertising and Research and Development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Accounting Policies [Abstract] | |||
Research and development expense | $ 21,256 | $ 22,176 | $ 20,872 |
Marketing and advertising expense | 109,579 | 109,738 | $ 111,162 |
Prepaid advertising | $ 900 | $ 1,084 |
The Company and Summary of Si40
The Company and Summary of Significant Accounting Policies - Retirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Employer matching contribution, percent of match | 50.00% | ||
Employer matching contribution, percent of employees' gross pay | 6.00% | ||
Cost recognized | $ 2,124 | $ 2,182 | $ 1,726 |
Restructuring (Details)
Restructuring (Details) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017USD ($)store | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2020store | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 29,087 | $ 24,856 | $ 0 | |
Brand Realignment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 29,100 | 24,800 | ||
Restructuring reserve | 11,100 | 12,900 | ||
Brand Realignment | Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 29,100 | 22,800 | ||
Brand Realignment | Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0 | 2,000 | ||
Brand Realignment | Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of stores closed | store | 25 | |||
Number of stores identified for potential closure | store | 12 | |||
Brand Realignment | Facility Closing | Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 3,600 | |||
Brand Realignment | Leasehold impairments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 3,600 | 5,800 | ||
Restructuring reserve | $ 0 | $ 0 | ||
Scenario, Forecast | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of stores identified for potential closure | store | 125 |
Restructuring Schedule of Restr
Restructuring Schedule of Restructuring Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | $ 29,087 | $ 24,856 | $ 0 |
Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance restructuring reserve | 12,900 | ||
Restructuring costs | 29,100 | 24,800 | |
Paid in cash | (23,800) | (1,800) | |
Non-cash | (7,100) | (10,100) | |
Ending balance restructuring reserve | 11,100 | 12,900 | |
Lease termination costs | Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance restructuring reserve | 7,700 | ||
Restructuring costs | 9,000 | 8,900 | |
Paid in cash | (12,000) | (1,200) | |
Non-cash | 0 | 0 | |
Ending balance restructuring reserve | 4,700 | 7,700 | |
Leasehold improvements | Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance restructuring reserve | 0 | ||
Restructuring costs | 3,600 | 5,800 | |
Paid in cash | 0 | 0 | |
Non-cash | (3,600) | (5,800) | |
Ending balance restructuring reserve | 0 | 0 | |
Severance costs | Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance restructuring reserve | 3,400 | ||
Restructuring costs | 5,800 | 4,000 | |
Paid in cash | (6,400) | (600) | |
Non-cash | (300) | 0 | |
Ending balance restructuring reserve | 2,500 | 3,400 | |
Software and office fixed asset impairments | Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance restructuring reserve | 0 | ||
Restructuring costs | 3,200 | 3,800 | |
Paid in cash | 0 | 0 | |
Non-cash | (3,200) | (3,800) | |
Ending balance restructuring reserve | 0 | 0 | |
Termination of various contracts and other services | Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance restructuring reserve | 1,800 | ||
Restructuring costs | 7,500 | 2,300 | |
Paid in cash | (5,400) | 0 | |
Non-cash | 0 | (500) | |
Ending balance restructuring reserve | $ 3,900 | $ 1,800 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 29,087 | $ 24,856 | $ 0 |
Brand Realignment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 29,100 | 24,800 | |
Reportable segments | UGG brand wholesale | Brand Realignment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 2,100 | 0 | |
Reportable segments | Teva brand wholesale | Brand Realignment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | 0 | |
Reportable segments | Sanuk brand wholesale | Brand Realignment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 100 | 3,000 | |
Reportable segments | Other brands wholesale | Brand Realignment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 100 | 2,500 | |
Reportable segments | Direct-to-Consumer | Brand Realignment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 12,900 | 10,500 | |
Unallocated to Segments | Brand Realignment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 13,900 | $ 8,800 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Indefinite-lived Intangible Assets | |||
Goodwill | $ 13,990 | $ 127,934 | $ 127,934 |
Trademarks | 15,455 | 15,455 | |
Definite-lived Intangible Assets | |||
Total gross carrying amount | 112,873 | 112,873 | |
Accumulated amortization | (54,361) | (45,302) | |
Accumulated impairment | (8,829) | 0 | |
Net Definite-lived Intangible Assets | 49,683 | 67,571 | |
Total Other Intangible Assets | 65,138 | 83,026 | |
Total Goodwill and Other Intangible Assets | 79,128 | 210,960 | |
UGG brand wholesale | |||
Indefinite-lived Intangible Assets | |||
Goodwill | 6,101 | 6,101 | |
Sanuk brand wholesale | |||
Indefinite-lived Intangible Assets | |||
Goodwill | 0 | 113,944 | |
Other brands wholesale | |||
Indefinite-lived Intangible Assets | |||
Goodwill | 7,889 | 7,889 | |
Trademarks | |||
Definite-lived Intangible Assets | |||
Total gross carrying amount | 55,244 | 55,244 | |
Other Intangible Assets | |||
Definite-lived Intangible Assets | |||
Total gross carrying amount | $ 57,629 | $ 57,629 |
Goodwill and Other Intangible45
Goodwill and Other Intangible Assets Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill [Line Items] | |||||
Impairment of goodwill | $ 113,944 | $ 0 | $ 0 | ||
Amortization of intangible assets | $ 7,945 | $ 8,850 | $ 11,291 | ||
Sanuk brand wholesale | |||||
Goodwill [Line Items] | |||||
Impairment of goodwill | $ (113,944) | ||||
European Retail Stores | |||||
Goodwill [Line Items] | |||||
Impairment of intangible assets (excluding goodwill) | 4,743 | ||||
Patents | Sanuk brand wholesale | |||||
Goodwill [Line Items] | |||||
Impairment of intangible assets (excluding goodwill) | $ 4,086 | ||||
Reduction in amortization of intangible assets | $ 500 | ||||
Weighted Average | |||||
Goodwill [Line Items] | |||||
Useful life | 16 years | 13 years |
Goodwill and Other Intangible46
Goodwill and Other Intangible Assets Schedule of Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill, Gross | $ 143,765 | $ 143,765 | $ 143,765 |
Accumulated Impairment | (129,775) | (15,831) | (15,831) |
Changes related to acquisitions, impairments and other adjustments | (113,944) | 0 | 0 |
Goodwill, Net | $ 13,990 | $ 127,934 | $ 127,934 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets Schedule of Changes in Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible assets, net, beginning balance | $ 83,026 | ||
Impairment charges | (8,829) | ||
Amortization expense | (7,945) | $ (8,850) | $ (11,291) |
Changes in foreign currency exchange rates | (1,114) | ||
Intangible assets, net, ending balance | $ 65,138 | $ 83,026 |
Goodwill and Other Intangible48
Goodwill and Other Intangible Assets Schedule of Future Amortization (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Expected amortization expense on existing intangible assets | |
2,018 | $ 7,572 |
2,019 | 6,106 |
2,020 | 3,439 |
2,021 | 2,526 |
2,022 | 2,521 |
Thereafter | 27,519 |
Total | $ 49,683 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation asset | $ 6,662 | $ 6,083 |
Non-qualified deferred compensation liability | (4,140) | (6,301) |
Designated Derivative Contracts asset | 1,365 | 2,903 |
Designated Derivative Contracts liability | (2,549) | |
Contingent consideration for acquisition of business | (20,000) | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation asset | 6,662 | 6,083 |
Non-qualified deferred compensation liability | (4,140) | (6,301) |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Designated Derivative Contracts asset | $ 1,365 | 2,903 |
Designated Derivative Contracts liability | (2,549) | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration for acquisition of business | $ (20,000) |
Fair Value Measurements Reconci
Fair Value Measurements Reconciliation of Level 3 Inputs (Details) - Contingent Consideration Arrangement - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Liability measured at fair value beginning balance | $ 20,000 | $ 25,700 |
Payments | (20,000) | (1,300) |
Change in fair value | (4,400) | |
Liability measured at fair value ending balance | $ 0 | $ 20,000 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Current | |||
Federal | $ 2,184 | $ 11,971 | $ 35,459 |
State | 1,576 | 2,443 | 6,861 |
Foreign | 8,039 | 12,039 | 7,069 |
Total | 11,799 | 26,453 | 49,389 |
Deferred | |||
Federal | (20,287) | 7,887 | 8,234 |
State | (3,446) | 1,113 | 624 |
Foreign | (762) | (833) | 1,112 |
Total | (24,495) | 8,167 | 9,970 |
Income taxes | |||
Income tax (benefit) expense | (12,696) | 34,620 | 59,359 |
Foreign income before taxes | 49,319 | 105,938 | 95,850 |
Actual income taxes differed from that obtained by applying the statutory federal income tax rate to income before income taxes | |||
Computed expected income taxes | (2,445) | 54,910 | 77,399 |
State income taxes, net of federal income tax benefit | (1,403) | 1,298 | 3,564 |
Foreign rate differential | (8,062) | (28,233) | (25,535) |
Unrecognized tax benefits | 2,691 | 3,670 | 3,566 |
Income tax expense on diminution of operations and nondeductible goodwill | 3,921 | 1,352 | 0 |
Foreign income withholding tax expense | 432 | 0 | 0 |
Non-taxable income | (5,055) | 0 | 0 |
Statutory foreign income tax (benefit) expense | (2,504) | (477) | 20 |
Other | (271) | 2,100 | 345 |
Income tax (benefit) expense | $ (12,696) | $ 34,620 | $ 59,359 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Deferred tax assets (liabilities), noncurrent: | ||
Amortization and impairment of intangible assets | $ 28,304 | $ (5,128) |
Depreciation of property and equipment | (19,511) | (8,804) |
Stock-based compensation | 6,258 | 10,118 |
Deferred rent | 6,809 | 5,383 |
Acquisition costs | 751 | 745 |
Uniform capitalization adjustment to inventory | 4,971 | 5,280 |
Bad debt and other reserves | 15,946 | 14,163 |
State taxes | (145) | 863 |
Prepaid expenses | (4,144) | (3,622) |
Accrued bonuses | 1,456 | 536 |
Foreign currency exchange rate hedges | (534) | (94) |
Other | 1,376 | 1,196 |
Net operating loss carry-forwards | 3,171 | 0 |
Net deferred tax assets | $ 44,708 | $ 20,636 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Expected future taxable income to fully realize the deferred tax assets | $ 126,386 | ||
Change in net deferred tax assets attributable to other comprehensive income | 400 | ||
Domestic taxable income | (56,305) | $ 50,947 | $ 125,289 |
Unremitted earnings of non-US subsidiaries | 505,124 | ||
Non-US subsidiary cash and cash equivalents | $ 265,773 | ||
Minimum percentage used to measure tax benefit of uncertain tax position | 50.00% | ||
Reconciliation of the beginning and ending amounts of total unrecognized tax benefits | |||
Balance at the beginning of the period | $ 8,695 | 4,667 | |
Gross increase related to current year tax positions | 1,878 | 2,332 | |
Gross increase related to prior year tax positions | 1,154 | 2,059 | |
Settlements | (363) | ||
Balance at the end of the period | 11,727 | 8,695 | $ 4,667 |
Unrecognized tax benefits that would impact effective tax rate | 2,691 | ||
Accrued interest on income tax contingencies | 2,990 | $ 1,842 | |
Significant change in unrecognized tax benefits is reasonably possible | $ 856 |
Revolving Credit Facilities a54
Revolving Credit Facilities and Mortgage Payable - Domestic Line of Credit (Details) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2016USD ($) | Nov. 30, 2014 | Mar. 31, 2017USD ($) | May 30, 2017USD ($) | |
Notes Payable and Long-Term Debt | ||||
Maximum borrowing capacity with contingent increase | $ 600,000,000 | |||
Credit Agreement | ||||
Notes Payable and Long-Term Debt | ||||
Term of agreement (in years) | 5 years | 5 years | ||
Current borrowing capacity | $ 400,000,000 | 400,000,000 | ||
Maximum available for the issuance of letters of credit | 75,000,000 | |||
Maximum available for swing loans | $ 5,000,000 | |||
Additional available credit | 200,000,000 | |||
Capacity available for currency borrowings | $ 150,000,000 | |||
Spread on variable interest rate (as a percent) | 1.00% | |||
Fees on the daily unused amount (as a percent) | 0.175% | |||
Additional Financial Covenants Required | ||||
Total adjusted leverage ratio, numerator, to allow for maximum limit on acquisitions under terms of the Credit Agreement covenants | 2.75 | |||
Credit Agreement | Minimum | ||||
Notes Payable and Long-Term Debt | ||||
Fees on the daily unused amount (as a percent) | 0.175% | |||
Additional Financial Covenants Required | ||||
Asset coverage ratio, numerator, to be maintained under credit agreement covenants | 3.25 | |||
Ratio of consolidated EBITDA plus annual rental expense to annual interest expense plus annual rental expense, numerator, to be maintained under Credit Agreement covenants | 2.25 | |||
Credit Agreement | Maximum | ||||
Notes Payable and Long-Term Debt | ||||
Fees on the daily unused amount (as a percent) | 0.30% | |||
Additional Financial Covenants Required | ||||
Covenant capital expenditures allowed | $ 110,000,000 | |||
Total adjusted leverage ratio, numerator, to allow for maximum limit on acquisitions under terms of the Credit Agreement covenants | 2.75 | |||
Additional unsecured debt allowed under credit agreement covenants | $ 200,000,000 | |||
Credit Agreement | LIBOR based interest rates | ||||
Notes Payable and Long-Term Debt | ||||
Interest rate, effective percentage | 2.48% | |||
Credit Agreement | LIBOR based interest rates | First 30 days | ||||
Notes Payable and Long-Term Debt | ||||
Spread on variable interest rate (as a percent) | 1.25% | |||
Credit Agreement | LIBOR based interest rates | Thereafter | ||||
Notes Payable and Long-Term Debt | ||||
Variable interest rate basis | LIBOR | |||
Credit Agreement | LIBOR based interest rates | Thereafter | Maximum | ||||
Notes Payable and Long-Term Debt | ||||
Spread on variable interest rate (as a percent) | 2.00% | |||
Credit Agreement | Alternate Base Rate based interest rates | ||||
Notes Payable and Long-Term Debt | ||||
Interest rate, effective percentage | 4.50% | |||
Credit Agreement | Alternate Base Rate based interest rates | First 30 days | ||||
Notes Payable and Long-Term Debt | ||||
Spread on variable interest rate (as a percent) | 0.25% | |||
Credit Agreement | Federal Effective Funds Rate | First 30 days | ||||
Notes Payable and Long-Term Debt | ||||
Spread on variable interest rate (as a percent) | 0.50% | |||
Line of Credit | Second Amended And Restated Credit Agreement, As Amended | Subsequent Event | ||||
Additional Financial Covenants Required | ||||
Long-term line of credit | $ 0 | |||
Line of Credit | Revolving Credit Facility | ||||
Additional Financial Covenants Required | ||||
Deferred financing costs | $ 1,000,000 | |||
Line of Credit | Revolving Credit Facility | Second Amended And Restated Credit Agreement, As Amended | ||||
Notes Payable and Long-Term Debt | ||||
Current borrowing capacity | 0 | |||
Additional Financial Covenants Required | ||||
Proceeds from lines of credit | 332,000,000 | |||
Repayments of lines of credit | 385,000,000 | |||
Outstanding letters of credit | 549,000 | |||
Amount available under the credit agreement | 378,000,000 | |||
Line of Credit | Revolving Credit Facility | Second Amended And Restated Credit Agreement, As Amended | Subsequent Event | ||||
Additional Financial Covenants Required | ||||
Long-term line of credit | 0 | |||
Line of Credit | Revolving Credit Facility | Second Amended And Restated Credit Agreement, As Amended | ||||
Additional Financial Covenants Required | ||||
Amount available under the credit agreement | $ 378,000,000 | |||
Line of Credit | Revolving Credit Facility | Second Amended And Restated Credit Agreement, As Amended | Subsequent Event | ||||
Additional Financial Covenants Required | ||||
Amount available under the credit agreement | $ 378,000,000 |
Revolving Credit Facilities a55
Revolving Credit Facilities and Mortgage Payable - China Line of Credit (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||
Oct. 31, 2015USD ($) | Oct. 30, 2014 | Aug. 31, 2013 | Mar. 31, 2017USD ($) | May 30, 2017USD ($) | Oct. 31, 2016USD ($) | Oct. 31, 2016CNY (¥) | Oct. 31, 2015CNY (¥) | Jun. 30, 2014USD ($) | Jun. 30, 2014CNY (¥) | Mar. 31, 2014USD ($) | Mar. 31, 2014CNY (¥) | Dec. 31, 2013USD ($) | Dec. 31, 2013CNY (¥) | Sep. 30, 2013USD ($) | Sep. 30, 2013CNY (¥) | |
China Credit Agreement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument covenant percentage of facility amount in United States dollars guaranteed | 108.50% | |||||||||||||||
Amended China Credit Agreement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument term | 12 months | 18 months | 12 months | |||||||||||||
Maximum | China Credit Agreement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Current borrowing capacity | $ 3,000,000 | ¥ 20,000,000 | $ 3,000,000 | ¥ 20,000,000 | $ 9,000,000 | ¥ 60,000,000 | $ 9,000,000 | ¥ 60,000,000 | ||||||||
Revolving Credit Facility | Line of Credit | Second Amended China Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Current borrowing capacity | $ 0 | |||||||||||||||
Percentage of People's Bank of China rate | 110.00% | |||||||||||||||
Interest rate, effective percentage | 4.35% | |||||||||||||||
Long-term line of credit | $ 35,000,000 | |||||||||||||||
Repayments of lines of credit | 48,000,000 | |||||||||||||||
Amount available under the credit agreement | $ 44,000,000 | |||||||||||||||
Subsequent Event | Line of Credit | Second Amended China Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term line of credit | $ 0 | |||||||||||||||
Amount available under the credit agreement | 44,000,000 | |||||||||||||||
Subsequent Event | Revolving Credit Facility | Line of Credit | Second Amended China Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term line of credit | $ 0 | |||||||||||||||
Line of Credit | Revolving Credit Facility | Amended China Credit Agreement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Additional available credit | $ 22,000,000 | ¥ 150,000,000 | ||||||||||||||
Line of Credit | Revolving Credit Facility | Second Amended China Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Additional available credit | $ 44,000,000 | ¥ 300,000,000 | ||||||||||||||
Capacity available for specific purpose other than for trade purchases | $ 7,000,000 | $ 7,000,000 | ¥ 50,000,000 | ¥ 50,000,000 |
Revolving Credit Facilities a56
Revolving Credit Facilities and Mortgage Payable - Japan Line of Credit (Details) - Japan Credit Facility | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2016JPY (¥) | May 30, 2017USD ($) | Mar. 31, 2016USD ($) | |
Notes Payable and Long-Term Debt | ||||
Covenant compliance, period of not having losses | 2 years | |||
Maximum | ||||
Notes Payable and Long-Term Debt | ||||
Current borrowing capacity | ¥ 5,500,000,000 | $ 49,000,000 | ||
Debt instrument term | 6 months | |||
Tokyo Interbank Offered Rate (TIBOR) | ||||
Notes Payable and Long-Term Debt | ||||
Spread on variable interest rate (as a percent) | 0.40% | |||
Tokyo Interbank Offered Rate (TIBOR) | 0.06% | |||
Interest rate, effective percentage | 0.46% | |||
Revolving Credit Facility | Line of Credit | ||||
Notes Payable and Long-Term Debt | ||||
Current borrowing capacity | $ 0 | |||
Long-term line of credit | 38,000,000 | |||
Repayments of lines of credit | 35,000,000 | |||
Amount available under the credit agreement | $ 49,000,000 | |||
Subsequent Event | Line of Credit | ||||
Notes Payable and Long-Term Debt | ||||
Long-term line of credit | $ 0 | |||
Amount available under the credit agreement | 49,000,000 | |||
Subsequent Event | Revolving Credit Facility | Line of Credit | ||||
Notes Payable and Long-Term Debt | ||||
Long-term line of credit | $ 0 |
Revolving Credit Facilities a57
Revolving Credit Facilities and Mortgage Payable - Mortgage (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Jul. 31, 2014 | |
Debt Instrument [Line Items] | |||
Short-term borrowings | $ 549,000 | $ 67,475,000 | |
Mortgage payable | 32,082,000 | $ 32,631,000 | |
Mortgages | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 33,900,000 | ||
Long-term debt gross | 32,631,000 | ||
Short-term borrowings | 549,000 | ||
Mortgage payable | $ 32,082,000 | ||
Interest rate stated percentage | 4.928% | ||
Debt instrument, amortization period | 30 years | ||
Balloon payment to be paid | $ 23,700,000 | ||
Term for minimum payments | 5 years | ||
Annual principal payment | $ 3,040,000 |
Commitments and Contingencies -
Commitments and Contingencies - Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Future minimum commitments under the lease agreements | |||
2,018 | $ 51,319 | ||
2,019 | 49,040 | ||
2,020 | 41,261 | ||
2,021 | 36,221 | ||
2,022 | 31,459 | ||
Thereafter | 102,170 | ||
Total | 311,470 | ||
Composition of total rental expense | |||
Minimum rentals | 63,050 | $ 61,227 | $ 61,363 |
Contingent rentals | 15,281 | 16,067 | 14,707 |
Total | $ 78,331 | $ 77,294 | $ 76,070 |
Minimum | |||
Commitments and Contingencies | |||
Term of renewal options range (in years) | 1 year | ||
Maximum | |||
Commitments and Contingencies | |||
Term of renewal options range (in years) | 15 years |
Commitments and Contingencies59
Commitments and Contingencies - Purchase Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Purchase Commitment | ||
Future commitments | ||
Contract Value | $ 12,200 | $ 20,000 |
Purchase commitment entered into in May 2015 | ||
Future commitments | ||
Contract Value | 55,200 | |
Remaining Commitment | 36,567 | |
Purchase commitment entered into in September 2015 | ||
Future commitments | ||
Contract Value | 7,200 | |
Remaining Commitment | 2,172 | |
Purchase commitment entered into in October 2016 final due date September 2017 | ||
Future commitments | ||
Contract Value | 16,105 | |
Remaining Commitment | 13,427 | |
Purchase commitment entered into in November 2016 | ||
Future commitments | ||
Contract Value | 24,000 | |
Remaining Commitment | 17,003 | |
Purchase commitment entered into in October 2016, final due date September 2018 | ||
Future commitments | ||
Contract Value | 53,700 | |
Remaining Commitment | $ 53,700 | |
Minimum | ||
Future commitments | ||
Product order period | 4 months | |
Maximum | ||
Future commitments | ||
Product order period | 8 months | |
Sheepskin | ||
Future commitments | ||
Purchase commitment amount | $ 122,869 | |
Purchase commitment period (in years) | 2 years | |
Other Purchase Commitment | ||
Future commitments | ||
Purchase commitment amount | $ 18,942 | |
Inventories | ||
Future commitments | ||
Outstanding purchase orders with manufacturers | $ 392,716 |
Commitments and Contingencies60
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Commitments and Contingencies | ||
Maximum indemnity period of claims for intellectual property (in years) | 5 years | |
Sanuk | ||
Commitments and Contingencies | ||
Approximate amount paid | $ 19,700 | |
Hoka | ||
Commitments and Contingencies | ||
Approximate amount paid | 300 | $ 1,700 |
Maximum contingent consideration payments | $ 2,000 |
Stockholders' Equity - Incentiv
Stockholders' Equity - Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized Stock Compensation Expense | $ 12,295 | ||
Stock Incentive Plan 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
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 (in shares) | 750,000 | ||
Annual Performance-based Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expenses recorded | $ 1,203 | $ 3,807 | $ 7,692 |
Unrecognized Stock Compensation Expense | $ 454 | ||
Annual Performance-based Stock Units | Stock Incentive Plan 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Granted (in shares) | 83,971 | ||
Granted (in dollars per share) | $ 54.51 | ||
Annual Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expenses recorded | $ 5,191 | $ 2,356 | $ 1,603 |
Unrecognized Stock Compensation Expense | $ 7,497 | ||
Annual Restricted Stock Units | Stock Incentive Plan 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Granted (in shares) | 184,531 | ||
Granted (in dollars per share) | $ 61.54 | ||
Annual RSUs and Annual PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized Stock Compensation Expense | $ 7,951 | ||
Awards for fiscal 2017 | Annual Performance-based Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expenses recorded | $ (500) |
Stockholders' Equity - LTIP (De
Stockholders' Equity - LTIP (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized Stock Compensation Expense | $ 12,295 | |||
2015 Long-Term Incentive Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expenses recorded | $ (1,400) | |||
Granted (in dollars per share) | $ 98.29 | |||
2016 Long-Term Incentive Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 308,000,000 | |||
Granted (in dollars per share) | $ 50.05 | |||
Compensation expense cumulative amount based on maximum number of units subject to performance objectives probable | $ 9,813 | |||
Restricted Stock Units RSU and Stock Appreciation Rights SARS | Long-term Incentive Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting portion, tranche one | 50.00% | |||
Vesting portion, tranche two | 50.00% | |||
Compensation expenses recorded | $ (2,400) | |||
Restricted Stock Units RSU and Stock Appreciation Rights SARS | Portion Vesting On December 2015 | Long-term Incentive Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 80.00% | |||
Restricted Stock Units RSU and Stock Appreciation Rights SARS | Portion Vesting On December 2016 | Long-term Incentive Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 20.00% | |||
Common Stock | 2013 Long-Term Incentive Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 1 | |||
Common Stock | 2015 Long-Term Incentive Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 1 | |||
Common Stock | 2016 Long-Term Incentive Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 1 | |||
Long-term Performance-based Stock Units | 2013 Long-Term Incentive Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Long-term Performance-based Stock Units | 2015 Long-Term Incentive Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Employee Stock Option | 2017 Long-Term Incentive Plan NQSOs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expenses recorded | $ 694 | $ 0 | $ 0 | |
Stock granted net of forfeitures | 5,456 | |||
Unrecognized Stock Compensation Expense | $ 4,344 | |||
Scenario, Forecast | 2016 Long-Term Incentive Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period (in years) | 36 months | |||
Scenario, Forecast | Long-term Performance-based Stock Units | 2016 Long-Term Incentive Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (in years) | 3 years | |||
Minimum | 2016 Long-Term Incentive Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 90.00% | |||
Maximum | 2015 Long-Term Incentive Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 160,000,000 | |||
Maximum | 2016 Long-Term Incentive Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Financial performance achievement, percentage | 200.00% |
Stockholders' Equity - LTIP Ass
Stockholders' Equity - LTIP Assumptions (Details) - 2017 Long-Term Incentive Plan NQSOs | 12 Months Ended |
Mar. 31, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (in years) | 5 years 11 months 9 days |
Expected volatility | 41.80% |
Risk free interest rate | 1.95% |
Dividend yield | 0.00% |
Weighted average exercise price (in usd per share) | $ 61.86 |
Weighted average option value (in usd per share) | $ 26.27 |
Stockholders' Equity - Stock Re
Stockholders' Equity - Stock Repurchase Plan (Details) - USD ($) $ / shares in Units, shares in Thousands | Feb. 28, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Jan. 31, 2015 | Jun. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum stock repurchase amount approved by Board of Directors | $ 200,000,000 | ||||||
Number of shares repurchased (in shares) | 3,823,000 | ||||||
Average stock price of shares repurchased (in dollars per share) | $ 52.31 | ||||||
2015 Stock Repurchase Program | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Remaining stock repurchase amount approved by Board of Directors | $ 65,294,000 | $ 200,000,000 | |||||
Treasury stock acquired (in shares) | 377 | ||||||
Treasury stock acquired cost method | $ 27,900,000 | ||||||
Treasury stock acquired average cost per share (in usd per share) | $ 74.09 | $ 66.69 | |||||
Treasury stock number of shares held (in shares) | 2,020,000 | ||||||
Treasury stock value | $ 134,706,000 | ||||||
2012 and 2015 Repurchase Program | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Treasury stock acquired (in shares) | 222,000 | 1,420,000 | 1,436,000 | ||||
Treasury stock acquired cost method | $ 12,572,000 | $ 94,200,000 | $ 107,200,000 | ||||
Treasury stock acquired average cost per share (in usd per share) | $ 56.51 | $ 66.32 | $ 74.68 |
Stockholders' Equity - Stock 65
Stockholders' Equity - Stock Repurchase Plan, Retained Earnings Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Increase (Decrease) in Stockholders' Equity | |||
Net income | $ 5,710 | $ 122,265 | $ 161,780 |
Repurchases of common stock | (12,572) | (94,200) | (107,239) |
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance | 826,449 | ||
Net income | 5,710 | 122,265 | 161,780 |
Repurchases of common stock | (12,570) | (94,186) | $ (107,225) |
Ending balance | $ 819,589 | $ 826,449 |
Stockholders' Equity - Stock Co
Stockholders' Equity - Stock Compensation (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $ 6,175 | $ 6,622 | $ 13,524 | |
Income tax benefit recognized | (2,322) | (2,525) | (5,143) | |
Net stock compensation expense | 3,853 | $ 4,097 | 8,381 | |
Unrecognized Stock Compensation Expense | 12,295 | |||
Employee Stock Purchase Plan 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock shares authorized (in shares) | 1,000,000 | 1,000,000 | ||
Award purchase period | 6 months | |||
Discount from market price at purchase date | 15.00% | |||
Annual Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expenses recorded | 5,191 | $ 2,356 | 1,603 | |
Unrecognized Stock Compensation Expense | $ 7,497 | |||
Weighted-Average Remaining Vesting Period (Years) | 1 year 4 months 24 days | |||
Annual Performance-based Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expenses recorded | $ 1,203 | 3,807 | 7,692 | |
Unrecognized Stock Compensation Expense | $ 454 | |||
Weighted-Average Remaining Vesting Period (Years) | 1 year | |||
Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expenses recorded | $ (1,949) | 893 | 1,846 | |
Unrecognized Stock Compensation Expense | $ 0 | |||
Weighted-Average Remaining Vesting Period (Years) | 0 years | |||
LTIP PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expenses recorded | $ (296) | (1,511) | 1,323 | |
Unrecognized Stock Compensation Expense | $ 0 | |||
Weighted-Average Remaining Vesting Period (Years) | 0 years | |||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-Average Remaining Vesting Period (Years) | 2 years | |||
Employee Stock Option | 2017 Long-Term Incentive Plan NQSOs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expenses recorded | $ 694 | 0 | 0 | |
Unrecognized Stock Compensation Expense | 4,344 | |||
Directors' Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expenses recorded | 1,168 | 1,077 | 1,060 | |
Employee Stock Purchase Plan 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expenses recorded | 164 | $ 0 | $ 0 | |
Award Granted in 2016 | Long-term Incentive Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum compensation cost excluded from unrecognized compensation cost subject to performance condition not considered probable | $ 13,510 |
Stockholders' Equity - Annual R
Stockholders' Equity - Annual RSUs and Annual PSUs (Details) - Annual RSUs and Annual PSUs - Equity Incentive Plans 2006 and 2015 SIP - $ / shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Number of Shares | |||
Nonvested at the beginning of the period (in shares) | 203 | 340 | 331 |
Granted (in shares) | 268 | 240 | 196 |
Vested (in shares) | (111) | (132) | (142) |
Forfeited (in shares) | (66) | (91) | (30) |
Cancelled (in shares) | (68) | (154) | (15) |
Nonvested at the end of the period (in shares) | 226 | 203 | 340 |
Weighted- Average Grant-Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 68.80 | $ 70.11 | $ 62.21 |
Granted (in dollars per share) | 59.34 | 70.82 | 82.34 |
Vested (in dollars per share) | 65.37 | 66.74 | 68.39 |
Forfeited (in dollars per share) | 70.79 | 72.84 | 64.18 |
Cancelled (in dollars per share) | 65.23 | 74.22 | 84.04 |
Nonvested at the end of the period (in dollars per share) | $ 63.96 | $ 68.80 | $ 70.11 |
Stockholders' Equity - Stock Ap
Stockholders' Equity - Stock Appreciation Rights (Details) - Stock Appreciation Rights (SARs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Maximum contractual term of SARs with final vesting date of December 31, 2011 (in years) | 10 years | |||
Maximum contractual term of SARs with final vesting date of December 31, 2016 (in years) | 15 years | |||
Stock Incentive Plan 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock appreciation rights issued | 0 | 0 | 0 | 0 |
Equity Incentive Plans 2006 | ||||
Number of Shares | ||||
Nonvested at the beginning of the period (in shares) | 620,000 | 715,000 | 730,000 | |
Exercised (in shares) | (290,000) | (80,000) | (15,000) | |
Forfeited (in shares) | (90,000) | (15,000) | ||
Nonvested at the end of the period (in shares) | 240,000 | 620,000 | 715,000 | 730,000 |
Weighted- Average Exercise Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 26.73 | $ 26.73 | $ 26.73 | |
Exercised (in dollars per share) | 26.73 | 26.73 | 26.73 | |
Forfeited (in dollars per share) | 26.73 | 26.73 | ||
Outstanding at the end of the period (in dollars per share) | $ 26.73 | $ 26.73 | $ 26.73 | $ 26.73 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Weighted- Average Remaining Contractual Term (Years) | 5 years 1 month 10 days | 3 years 6 months | 5 years 9 months 18 days | 6 years 8 months 12 days |
Aggregate Intrinsic Value | $ 7,920 | $ 20,600 | $ 33,000 | $ 38,700 |
Exercisable (in shares) | 240,000 | |||
Exercisable (in dollars per share) | $ 26.73 | |||
Exercisable (in years) | 5 years 1 month 10 days | |||
Exercisable (in dollars) | $ 7,920 |
Stockholders' Equity - LTIP PSU
Stockholders' Equity - LTIP PSUs (Details) - LTIP PSUs - Equity Incentive Plans 2006 and 2015 SIP - $ / shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Number of Shares | |||
Nonvested at the beginning of the period (in shares) | 389 | 624 | 729 |
Granted (in shares) | 7 | 308 | 160 |
Vested (in shares) | (47) | ||
Forfeited (in shares) | (27) | (232) | (35) |
Cancelled (in shares) | (100) | (264) | (230) |
Nonvested at the end of the period (in shares) | 269 | 389 | 624 |
Weighted- Average Grant-Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 61.53 | $ 68.82 | $ 67.01 |
Granted (in dollars per share) | 56.56 | 50.05 | 98.29 |
Vested (in dollars per share) | 26.73 | ||
Forfeited (in dollars per share) | 68.63 | 70.98 | 78.39 |
Cancelled (in dollars per share) | 89.77 | 63.22 | 82.09 |
Nonvested at the end of the period (in dollars per share) | $ 50.22 | $ 61.53 | $ 68.82 |
Stockholders' Equity - LTIP NQS
Stockholders' Equity - LTIP NQSOs (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
2017 Long-Term Incentive Plan NQSOs | Employee Stock Option | ||||
Number of Shares | ||||
Number of shares outstanding beginning of period (in shares) | 0 | |||
Granted (in shares) | 208,000 | |||
Forfeited (in shares) | (16,000) | |||
Number of shares outstanding end of period (in shares) | 192,000 | 0 | ||
Weighted- Average Grant-Date Fair Value | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 0 | |||
Granted (in dollars per share) | 61.86 | |||
Forfeited (in dollars per share) | 61.86 | |||
Outstanding at the end of the period (in dollars per share) | $ 61.86 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Weighted- Average Remaining Contractual Term (Years) | 9 years 4 days | 0 years | ||
Aggregate Intrinsic Value | $ 0 | $ 0 | ||
Exercisable at the end of the period (in shares) | 0 | |||
Exercisable (in dollars per share) | $ 0 | |||
Exercisable (in dollars) | $ 0 | |||
Exercisable (in years) | 0 years | |||
Stock Incentive Plan 2015 | Stock Appreciation Rights (SARs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Stock appreciation rights issued | 0 | 0 | 0 | 0 |
Foreign Currency Exchange Con71
Foreign Currency Exchange Contracts and Hedging (Details) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
May 30, 2017USD ($)counterparty | Mar. 31, 2017USD ($)counterparty | Mar. 31, 2016USD ($)counterparty | Mar. 31, 2015USD ($) | |
Foreign currency exchange contracts and hedging | ||||
Number of counterparties in derivative contracts | counterparty | 7 | |||
Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Notional amounts of foreign currency hedging contracts | $ 100,000 | $ 105,000 | ||
Derivative, fair value, net | 1,365 | |||
Summary of the effect of derivative instruments on the consolidated statements of income | ||||
Amount of gain (loss) recognized in income on derivative instruments | 2,202 | (1,532) | $ 6,383 | |
Derivatives designated as cash flow hedges | ||||
Summary of the effect of derivative instruments on the consolidated statements of income | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion) | 7,082 | (1,592) | 1,226 | |
Amount of gain (loss) excluded from effectiveness testing | 534 | 207 | (69) | |
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 (loss) on derivative instruments (effective portion) | 8,208 | (850) | $ 1,556 | |
Designated as Hedging Instrument | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Derivative, entered into and settled during period, notional amount | 11,000 | 32,000 | ||
Derivative, settled during period, notional amount | $ 105,000 | 46,000 | ||
Not Designated as Hedging Instrument | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Number of counterparties in derivative contracts | counterparty | 4 | |||
Derivative, settled during period, notional amount | $ 263,000 | $ 261,000 | ||
Subsequent Event | Designated as Hedging Instrument | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Notional amounts of foreign currency hedging contracts | $ 21,000 | |||
Maximum remaining maturity of foreign currency derivatives | 12 months | |||
Subsequent Event | Not Designated as Hedging Instrument | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Notional amounts of foreign currency hedging contracts | $ 34,000 | |||
Number of counterparties in derivative contracts | counterparty | 4 | |||
Maximum remaining maturity of foreign currency derivatives | 9 months |
Accumulated Other Comprehensi72
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 |
Accumulated other comprehensive income | ||
Unrealized gain on foreign currency exchange rate hedges, net of tax | $ 856 | $ 152 |
Cumulative foreign currency translation adjustment | (27,307) | (20,709) |
Accumulated other comprehensive loss | $ (26,451) | $ (20,557) |
Net Income Per Share (Details)
Net Income Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average number of basic shares outstanding (in shares) | 32,000 | 32,556 | 34,433 |
Weighted average number diluted shares outstanding adjustment (in shares) | 355 | 483 | 300 |
Weighted average number of diluted shares outstanding (in shares) | 32,355 | 33,039 | 34,733 |
Annual RSUs and Annual PSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 17 | 0 | 0 |
LTIP SARs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 90 | 525 |
LTIP PSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 269 | 389 | 624 |
LTIP NQSOs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 192 | 0 | 0 |
Reportable Operating Segments74
Reportable Operating Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($)segment | Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 5 | ||||||||||
Net sales to external customers | $ 369,465 | $ 760,345 | $ 485,944 | $ 174,393 | $ 378,635 | $ 795,902 | $ 486,855 | $ 213,805 | $ 1,790,147 | $ 1,875,197 | $ 1,817,057 |
(Loss) income from operations | (30,873) | $ 53,250 | $ 54,023 | $ (78,319) | (27,878) | $ 202,500 | $ 51,213 | $ (63,708) | (1,919) | 162,127 | 224,419 |
Depreciation and amortization | 52,628 | 50,024 | 49,293 | ||||||||
Capital expenditures | 44,499 | 66,186 | 91,853 | ||||||||
Total assets | 1,191,780 | 1,278,068 | 1,191,780 | 1,278,068 | |||||||
Direct-to-Consumer | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 1 | ||||||||||
Unallocated to Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
(Loss) income from operations | (226,162) | (215,492) | (220,786) | ||||||||
Depreciation and amortization | 27,779 | 21,029 | 15,105 | ||||||||
Capital expenditures | 25,587 | 45,351 | 71,590 | ||||||||
Reportable segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | 606,058 | 762,783 | 606,058 | 762,783 | |||||||
Reportable segments | UGG brand wholesale | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales to external customers | 826,355 | 918,102 | 903,926 | ||||||||
(Loss) income from operations | 213,407 | 246,990 | 269,489 | ||||||||
Depreciation and amortization | 3,167 | 2,254 | 5,029 | ||||||||
Capital expenditures | 3,444 | 1,458 | 246 | ||||||||
Total assets | 259,444 | 248,937 | 259,444 | 248,937 | |||||||
Reportable segments | Teva brand wholesale | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales to external customers | 103,694 | 121,239 | 116,931 | ||||||||
(Loss) income from operations | 10,045 | 17,692 | 13,320 | ||||||||
Depreciation and amortization | 24 | 54 | 94 | ||||||||
Capital expenditures | 0 | 0 | 51 | ||||||||
Total assets | 82,505 | 87,225 | 82,505 | 87,225 | |||||||
Reportable segments | Sanuk brand wholesale | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales to external customers | 77,552 | 90,719 | 102,690 | ||||||||
(Loss) income from operations | (110,582) | 15,565 | 21,914 | ||||||||
Depreciation and amortization | 5,018 | 6,556 | 6,969 | ||||||||
Capital expenditures | 0 | 881 | 487 | ||||||||
Total assets | 80,102 | 212,816 | 80,102 | 212,816 | |||||||
Reportable segments | Other brands wholesale | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales to external customers | 116,206 | 100,820 | 76,152 | ||||||||
(Loss) income from operations | 1,571 | (4,384) | (9,838) | ||||||||
Depreciation and amortization | 971 | 1,101 | 931 | ||||||||
Capital expenditures | 191 | 51 | 351 | ||||||||
Total assets | 70,607 | 65,072 | 70,607 | 65,072 | |||||||
Reportable segments | Direct-to-Consumer | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales to external customers | 666,340 | 644,317 | 617,358 | ||||||||
(Loss) income from operations | 109,802 | 101,756 | 150,320 | ||||||||
Depreciation and amortization | 15,669 | 19,030 | 21,165 | ||||||||
Capital expenditures | 15,277 | 18,445 | $ 19,128 | ||||||||
Total assets | $ 113,400 | $ 148,733 | $ 113,400 | $ 148,733 |
Reportable Operating Segments -
Reportable Operating Segments - Reconciliation (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ||||
Cash and cash equivalents | $ 291,764 | $ 245,956 | $ 225,143 | $ 245,088 |
Deferred tax assets | 44,708 | 20,636 | ||
Total assets | 1,191,780 | 1,278,068 | ||
Reportable segments | ||||
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ||||
Total assets | 606,058 | 762,783 | ||
Unallocated to Segments | ||||
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ||||
Other unallocated corporate assets | $ 249,250 | $ 248,693 |
Concentration of Business, Si76
Concentration of Business, Significant Customers and Credit Risk (Details) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017USD ($)customertannery | Mar. 31, 2016USD ($)customer | Mar. 31, 2015USD ($) | |
Concentration Risk [Line Items] | |||
Property and equipment | $ 225,531 | $ 237,246 | |
Number of customers considered concentration risk | customer | 5 | ||
Number of tanneries | tannery | 2 | ||
Number of suppliers | 2 | ||
Long-lived Assets | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 10.00% | ||
International Net Sales | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 36.20% | 35.00% | 35.90% |
Concentration risk percentage benchmark | 10.00% | ||
Sales Revenue, Net | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 20.30% | 21.90% | |
Accounts Receivable | Unidentified Major Customer One | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 11.20% | 12.80% | |
Number of customers considered concentration risk | customer | 1 | 1 | |
UNITED STATES | |||
Concentration Risk [Line Items] | |||
Property and equipment | $ 206,077 | $ 211,111 | |
Other Countries | |||
Concentration Risk [Line Items] | |||
Revenue | 539,000 | 526,000 | $ 519,000 |
Property and equipment | $ 19,454 | $ 26,135 | |
Concentration risk (as a percent) | 30.10% | 28.10% | 28.60% |
Concentration of Business, Si77
Concentration of Business, Significant Customers and Credit Risk Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Risks and Uncertainties [Abstract] | ||||
Money market fund accounts | $ 198,992 | $ 195,575 | ||
Cash | 92,772 | 50,381 | ||
Cash and cash equivalents | $ 291,764 | $ 245,956 | $ 225,143 | $ 245,088 |
Quarterly Summary of Informat78
Quarterly Summary of Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Summarized unaudited quarterly financial data | |||||||||||
Net sales | $ 369,465 | $ 760,345 | $ 485,944 | $ 174,393 | $ 378,635 | $ 795,902 | $ 486,855 | $ 213,805 | $ 1,790,147 | $ 1,875,197 | $ 1,817,057 |
Gross profit | 158,924 | 383,634 | 216,425 | 76,252 | 154,942 | 391,017 | 214,113 | 86,596 | 835,235 | 846,668 | 878,108 |
(Loss) income from operations | (30,873) | 53,250 | 54,023 | (78,319) | (27,878) | 202,500 | 51,213 | (63,708) | $ (1,919) | $ 162,127 | $ 224,419 |
Net (loss) income | $ (15,704) | $ 41,027 | $ 39,305 | $ (58,918) | $ (23,706) | $ 156,921 | $ 36,377 | $ (47,327) | |||
Net income per share: | |||||||||||
Basic (in dollars per share) | $ (0.49) | $ 1.28 | $ 1.23 | $ (1.84) | $ (0.73) | $ 4.85 | $ 1.12 | $ (1.43) | $ 0.18 | $ 3.76 | $ 4.70 |
Diluted (in dollars per share) | $ (0.49) | $ 1.27 | $ 1.21 | $ (1.84) | $ (0.73) | $ 4.78 | $ 1.11 | $ (1.43) | $ 0.18 | $ 3.70 | $ 4.66 |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Restructuring costs | $ 29,087 | $ 24,856 | $ 0 | ||||||||
Impairment of goodwill | 113,944 | 0 | $ 0 | ||||||||
Brand Realignment | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Restructuring costs | $ 29,100 | $ 24,800 | |||||||||
Sanuk brand wholesale | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Impairment of goodwill | $ (113,944) | ||||||||||
Patents | Sanuk brand wholesale | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Impairment of intangible assets (excluding goodwill) | $ 4,086 |
Schedule II VALUATION AND QUA79
Schedule II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 30,195 | $ 18,218 | |
Balance at End of Year | 32,354 | 30,195 | $ 18,218 |
Total Allowances | 30,195 | 18,218 | 18,218 |
Allowance for doubtful accounts | |||
Valuation and qualifying accounts | |||
Balance at Beginning of Year | 5,494 | 2,297 | 1,798 |
Additions | 2,847 | 5,120 | 1,107 |
Deductions | (2,362) | (1,923) | (608) |
Balance at End of Year | 5,979 | 5,494 | 2,297 |
Total Allowances | 5,494 | 2,297 | 1,798 |
Allowance for sales discounts | |||
Valuation and qualifying accounts | |||
Balance at Beginning of Year | 2,672 | 2,348 | 2,121 |
Additions | 20,259 | 25,560 | 22,869 |
Deductions | (19,831) | (25,236) | (22,642) |
Balance at End of Year | 3,100 | 2,672 | 2,348 |
Total Allowances | 2,672 | 2,348 | 2,121 |
Allowance for sales returns | |||
Valuation and qualifying accounts | |||
Balance at Beginning of Year | 4,968 | 4,041 | 3,064 |
Additions | 4,138 | 2,267 | 2,610 |
Deductions | (2,078) | (1,340) | (1,633) |
Balance at End of Year | 7,028 | 4,968 | 4,041 |
Total Allowances | 4,968 | 4,041 | 3,064 |
Chargeback allowance | |||
Valuation and qualifying accounts | |||
Balance at Beginning of Year | 17,061 | 9,532 | 8,586 |
Additions | 62,122 | 42,392 | 31,253 |
Deductions | (62,936) | (34,863) | (30,307) |
Balance at End of Year | 16,247 | 17,061 | 9,532 |
Total Allowances | $ 17,061 | $ 9,532 | $ 8,586 |