Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2017 | Aug. 04, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | DECKERS OUTDOOR CORP | |
Entity Central Index Key | 910,521 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 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 Common Stock, Shares Outstanding | 31,998,620 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 279,940 | $ 291,764 |
Trade accounts receivable, net of allowances ($27,385 and $32,354 as of June 30, 2017 and March 31, 2017, respectively) | 108,895 | 158,643 |
Inventories, net of reserves ($8,451 and $7,638 as of June 30, 2017 and March 31, 2017, respectively) | 441,648 | 298,851 |
Prepaid expenses | 18,544 | 15,996 |
Other current assets | 16,961 | 30,781 |
Income tax receivable | 37,392 | 24,786 |
Total current assets | 903,380 | 820,821 |
Property and equipment, net of accumulated depreciation ($199,777 and $190,758 as of June 30, 2017 and March 31, 2017, respectively) | 219,577 | 225,531 |
Goodwill | 13,990 | 13,990 |
Other intangible assets, net of accumulated amortization ($56,810 and $54,361 as of June 30, 2017 and March 31, 2017, respectively) | 63,503 | 65,138 |
Deferred tax assets | 50,698 | 44,708 |
Other assets | 21,710 | 21,592 |
Total assets | 1,272,858 | 1,191,780 |
Current liabilities: | ||
Short-term borrowings | 557 | 549 |
Trade accounts payable | 229,519 | 95,893 |
Accrued payroll | 22,195 | 22,608 |
Other accrued expenses | 26,189 | 31,816 |
Income taxes payable | 5,070 | 2,719 |
Value added tax payable | 2,345 | 5,466 |
Total current liabilities | 285,875 | 159,051 |
Long-term liabilities: | ||
Mortgage payable | 31,943 | 32,082 |
Income tax liability | 8,932 | 13,216 |
Deferred rent obligations | 17,992 | 18,433 |
Other long-term liabilities | 14,442 | 14,743 |
Total long-term liabilities | 73,309 | 78,474 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock ($0.01 par value; 125,000 shares authorized; shares issued and outstanding of 31,999 and 31,987 as of June 30, 2017 and March 31, 2017, respectively) | 320 | 320 |
Additional paid-in capital | 163,194 | 160,797 |
Retained earnings | 778,833 | 819,589 |
Accumulated other comprehensive loss | (28,673) | (26,451) |
Total stockholders' equity | 913,674 | 954,255 |
Total liabilities and stockholders' equity | $ 1,272,858 | $ 1,191,780 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances (in dollars) | $ 27,385 | $ 32,354 |
Inventory reserves | 8,451 | 7,638 |
Accumulated depreciation | 199,777 | 190,758 |
Accumulated amortization | $ 56,810 | $ 54,361 |
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) | 31,999,000 | 31,987,000 |
Common stock, outstanding shares (in shares) | 31,999,000 | 31,987,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 209,717 | $ 174,393 |
Cost of sales | 119,092 | 98,141 |
Gross profit | 90,625 | 76,252 |
Selling, general and administrative expenses | 146,881 | 154,571 |
Loss from operations | (56,256) | (78,319) |
Other expense (income), net: | ||
Interest income | (452) | (204) |
Interest expense | 1,007 | 1,435 |
Other income, net | (224) | (669) |
Total other expense, net | 331 | 562 |
Loss before income taxes | (56,587) | (78,881) |
Income tax benefit | (14,466) | (19,963) |
Net loss | (42,121) | (58,918) |
Other comprehensive (loss) income, net of tax: | ||
Unrealized (loss) gain on foreign currency exchange rate hedges | (3,772) | 2,909 |
Foreign currency translation adjustment | 1,550 | 3,699 |
Total other comprehensive (loss) income | (2,222) | 6,608 |
Comprehensive loss | $ (44,343) | $ (52,310) |
Net loss per share: | ||
Basic (in dollars per share) | $ (1.32) | $ (1.84) |
Diluted (in dollars per share) | $ (1.32) | $ (1.84) |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 31,991 | 32,024 |
Diluted (in shares) | 31,991 | 32,024 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (42,121) | $ (58,918) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation, amortization and accretion | 12,268 | 13,021 |
Provision for doubtful accounts, net | 3,015 | 549 |
Deferred tax benefit | (2,932) | (2,132) |
Stock-based compensation | 2,704 | 2,070 |
Excess tax benefit from stock compensation | 25 | 59 |
Loss on sale of assets | 126 | 244 |
Impairment of long-lived assets | 131 | 0 |
Restructuring costs | 1,518 | 1,732 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable, net | 46,733 | 56,655 |
Inventories, net | (142,797) | (169,253) |
Prepaid expenses and other current assets | 10,112 | 4,681 |
Income tax receivable | (8,218) | (5,584) |
Other assets | (118) | (556) |
Trade accounts payable | 132,108 | 112,130 |
Accrued expenses | (13,238) | 6,050 |
Income taxes payable | (7,228) | (584) |
Long-term liabilities | 564 | (3,498) |
Net cash used in operating activities | (7,348) | (43,334) |
Cash flows from investing activities: | ||
Purchases of property and equipment, net | (3,835) | (20,114) |
Net cash used in investing activities | (3,835) | (20,114) |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings | 0 | 110,000 |
Repayments of short-term borrowings | 0 | (66,633) |
Cash paid for shares withheld for taxes | (893) | (1,106) |
Contingent consideration paid | 0 | (19,784) |
Repayment of mortgage principal | (133) | (125) |
Net cash (used in) provided by financing activities | (1,026) | 22,352 |
Effect of foreign currency exchange rates on cash | 385 | (2,551) |
Net change in cash and cash equivalents | (11,824) | (43,647) |
Cash and cash equivalents at beginning of period | 291,764 | 245,956 |
Cash and cash equivalents at end of period | 279,940 | 202,309 |
Cash paid (refunded) during the period for: | ||
Income taxes, net of refunds ($886 and $15,220 as of June 30, 2017 and 2016, respectively) | 2,266 | (11,500) |
Proceeds from Income Tax Refunds | 886 | 15,220 |
Interest | 580 | 913 |
Non-cash investing and financing activities: | ||
Accrued for purchases of property and equipment | 1,557 | 957 |
Accrued for asset retirement obligations | 113 | 345 |
Accrued for shares withheld for taxes | $ 0 | $ 321 |
General
General | 3 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The Company and Basis of Presentation Deckers Outdoor Corporation, together with its consolidated subsidiaries (the Company), is a global leader in designing, marketing and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high performance activities. As part of its Omni-Channel platform, the Company's brands are aligned across its Fashion Lifestyle group, including the UGG® (UGG) and Koolaburra® (Koolaburra) brands, and Performance Lifestyle group, including the Teva® (Teva), Sanuk® (Sanuk) and Hoka One One® (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 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 unaudited condensed consolidated financial statements and the accompanying notes thereto (referred to herein as the condensed consolidated financial statements) as of June 30, 2017 and for the three months ended June 30, 2017 and 2016 , have been prepared in accordance with accounting principles generally accepted in the United States (US GAAP) for interim financial information and pursuant to Rule 10-01 Regulation S-X issued by the Securities and Exchange Commission (SEC). Accordingly, they do not include all the information and disclosures required by US GAAP for annual financial statements and the accompanying notes thereto. In the opinion of management, the condensed consolidated financial statements include all adjustments consisting of all normal and recurring entries considered necessary for a fair presentation of the results of interim periods presented. The results of operations for interim periods are not necessarily indicative of results to be achieved for full fiscal years or other interim periods. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes thereto in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2017 , filed with the SEC on May 30, 2017 (2017 Annual Report). All intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications were made for all prior periods presented, including the three months ended June 30, 2017 and 2016 , to conform to the current period presentation. Unless otherwise specifically indicated, all amounts herein are expressed in thousands, except for defined periods and per share or share data. Use of Estimates The preparation of the Company's condensed consolidated financial statements is done in accordance with US GAAP, which requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements. 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, sales returns liabilities, stock-based compensation, impairment assessments, depreciation and amortization, income tax liabilities and receivables, uncertain tax positions, the fair value of financial instruments and other assets and liabilities, including goodwill and other intangible assets. These estimates are based on information available as of the date of the condensed consolidated financial statements. For the reasons stated, actual results could differ materially from these estimates. Recent Accounting Pronouncements Recently Adopted In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-11, Simplifying the Measurement of Inventory. The Company adopted this ASU on April 1, 2017 on a prospective basis and the Company changed its accounting policy to measure inventory at the lower of cost or market or net realizable value less an approximate normal profit margin at each financial statement date. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The adoption of this ASU did not have a material impact on the Company's condensed consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting . The Company adopted this ASU on April 1, 2017 on a prospective basis and the Company changed its accounting policy for certain aspects of share-based payment awards to employees, including the accounting for income taxes and statutory tax withholding requirements, as well as classification in the statement of cash flows. Beginning April 1, 2017, the adoption of this ASU had the following impact on the condensed consolidated financial statements and related disclosures: • The calculation of diluted weighted-average shares outstanding no longer includes excess tax benefits as assumed proceeds, which did not have a material impact on the Company’s calculation of diluted earnings per share. • Excess tax benefits and deficiencies were recorded as income tax benefits or expenses in the condensed consolidated statements of comprehensive loss for the three months ended June 30, 2017 , rather than to additional paid-in capital in the condensed consolidated balance sheets for settlements of share-based payment awards occurring on or after April 1, 2017. The Company's income tax benefit or expense will continue to be impacted by fluctuations in the stock price between grant and vesting dates of its share-based payment awards. • A cumulative adjustment to retained earnings and non-current deferred tax assets for unrecognized excess tax benefits of $1,365 was recorded on April 1, 2017 in the condensed consolidated balance sheet as of June 30, 2017 . • The Company has made current and prior period reclassifications in the condensed consolidated statements of cash flows to present cash flows from excess tax benefits as cash flows provided by operating activities instead of the historical presentation as cash flows provided by financing activities. • The Company elected to continue to estimate forfeitures as a component of determining grant date fair value. Not Yet Adopted In May 2014, the FASB issued 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. This ASU will replace most existing revenue recognition guidance under 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 for 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. In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing , which clarifies two components of ASU No. 2014-09: (1) identifying performance obligations and (2) licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients , which is intended to improve the operability and understandability of the implementation guidance by providing clarifications and practical expedients. 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 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. This ASU 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. This ASU requires a modified retrospective transition method for leases existing at the beginning of the earliest comparative period presented in the adoption-period financial statements. This ASU will be effective for 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 commitments that are currently classified as operating leases, such as retail stores, showrooms, and distribution facilities, as well as expanded disclosures on existing lease commitments. The recognition of lease expense is not expected to materially change from the current methodology. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments . This ASU eliminates the diversity in practice related to the classification of certain cash receipts and payments. This ASU will be effective for 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 consolidated financial statements and related disclosures, but its adoption is not expected to have a material impact. In October 2016, the FASB issued ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory . This ASU requires that the income tax impact of intra-entity sales and transfers of property, except for inventory, be recognized when the transfer occurs. This ASU will be effective for the Company’s annual and interim reporting periods beginning April 1, 2018 and will require any deferred taxes not yet recognized on intra-entity transfers to be recorded to retained earnings under a modified retrospective approach, 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. In January 2017, the FASB issued ASU No. 2017-04, Goodwill and Other: 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 guidance, 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 will be effective for the Company’s annual and interim reporting periods beginning April 1, 2020, with early adoption permitted on or after January 1, 2017. The Company is evaluating the effect that the adoption of this ASU will have on its consolidated financial statements and related disclosures. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting , which updates the guidance for changes to the terms or conditions of a share-based payment award which would require an entity to apply modification accounting. An entity should account for the effects of a modification to a share-based payment award unless all of the following conditions are met: (1) the fair value, (2) vesting conditions, and (3) classification of the modified awards are the same as the fair value, vesting conditions, or classification of the original award immediately before the original award is modified. This ASU will be effective for the Company's annual and interim reporting periods beginning April 1, 2018. The Company is evaluating the effect that the adoption of this ASU will have on its consolidated financial statements and related disclosures. |
Restructuring
Restructuring | 3 Months Ended |
Jun. 30, 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 June 30, 2017 , and consolidated its brand operations and corporate headquarters. In connection with these restructuring efforts, the Company has incurred total restructuring charges of $55,308 as of June 30, 2017 since the Company's announcement in the fourth quarter of fiscal year 2016, with $1,518 incurred during the three months ended June 30, 2017 compared to $1,732 during the three months ended June 30, 2016 . Of the total amount, $7,783 remained accrued as of June 30, 2017 , with $3,340 in short-term liabilities and $4,443 in long-term liabilities. It is anticipated that the Company may incur restructuring costs in future periods which are similar in nature to its historical activities, primarily in connection with the Company closing retail stores or converting stores to partner retail stores to reach a target worldwide retail store count of approximately 125 owned stores by the end of fiscal year 2020. The following table summarizes the remaining liability for restructuring charges as of June 30, 2017 : Lease termination costs Severance costs Termination of various contracts and other services Total Balance as of March 31, 2017 $ 4,572 $ 2,555 $ 3,953 $ 11,080 Additional charges — — 1,518 1,518 Paid in cash (418 ) (2,052 ) (2,345 ) (4,815 ) Balance as of June 30, 2017 $ 4,154 $ 503 $ 3,126 $ 7,783 The following table summarizes these restructuring charges by reportable operating segment and unallocated charges: Three Months Ended June 30, 2017 2016 Direct-to-Consumer $ — $ 1,335 Unallocated overhead costs 1,518 397 Total restructuring charges $ 1,518 $ 1,732 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Jun. 30, 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: June 30, 2017 March 31, 2017 Goodwill: UGG brand $ 6,101 $ 6,101 Other brands 7,889 7,889 Total Goodwill 13,990 13,990 Other Intangible Assets: Indefinite-lived Intangible Assets Trademarks 15,454 15,454 Definite-lived Intangible Assets Trademarks 55,245 55,245 Other 49,614 48,800 Total gross carrying amount 104,859 104,045 Accumulated amortization (56,810 ) (54,361 ) Net Definite-lived Intangible Assets 48,049 49,684 Total Other Intangible Assets 63,503 65,138 Total Goodwill and Other Intangible Assets $ 77,493 $ 79,128 Aggregate amortization expense for amortizable intangible assets during the three months ended June 30, 2017 and June 30, 2016 was $1,910 and $2,069 , respectively. Charges incurred in the condensed consolidated statements of comprehensive loss relevant to the Company's other intangible assets during the three months ended June 30, 2017 , are as follows: Balance, March 31, 2017 $ 65,138 Amortization expense (1,910 ) Foreign currency exchange rate fluctuations 275 Balance, June 30, 2017 $ 63,503 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 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, inventories, net, 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 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 June 30, 2017 Measured Using Level 1 Level 2 Level 3 Assets (liabilities) at fair value: Non-qualified deferred compensation asset $ 6,816 $ 6,816 $ — $ — Non-qualified deferred compensation liability (4,206 ) (4,206 ) — — Designated Derivative Contracts liability (4,192 ) — (4,192 ) — Non-Designated Derivative Contracts asset 204 — 204 — Non-Designated Derivative Contracts liability (1,807 ) — (1,807 ) — Fair Value as of March 31, 2017 Measured 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 — The Level 2 inputs consist of forward spot rates at the end of the applicable reporting period. Refer to Note 9, "Foreign Currency Exchange Rate Contracts and Hedging", for more information on the nature and definitions of these derivative contracts. The Company records the fair value of assets or liabilities associated with derivative instruments and hedging activities in other current assets or other accrued expenses, respectively, in the condensed consolidated balance sheets. In 2010, the Company established a 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 June 30, 2017 and March 31, 2017 , no payments were made under this program, however, there is a payment pending of $13 as of June 30, 2017 . 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. The non-qualified deferred compensation asset of $6,816 is recorded in other assets in the condensed consolidated balance sheets. The non-qualified deferred compensation liability of $4,206 is recorded in the condensed consolidated balance sheets as of June 30, 2017 , with $883 recorded in other accrued expenses and $3,323 in other long-term liabilities. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files income tax returns in the US federal jurisdiction and various state, local, and foreign jurisdictions. When tax returns are filed, some positions taken are subject to uncertainty about the merits of the position taken or the amount that would ultimately be sustained upon examination by tax authorities. The benefit of a tax position is recognized in the condensed consolidated financial statements in the period during which the Company believes it is more likely than not that the position will be sustained upon examination. Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely to be realized upon settlement. The portion of the benefits that exceeds the amounts measured is recorded as a liability for unrecognized tax benefits in the condensed consolidated balance sheets, along with any associated interest and penalties that would be payable to the tax authorities upon settlement. The Company has on-going income tax examinations in various state and foreign tax jurisdictions and has recorded an additional tax accrual for unrecognized tax benefits of $127 during the three months ended June 30, 2017 , compared to no additional tax accrual during the three months ended June 30, 2016 in income tax payable in the condensed consolidated balance sheets. The balance of gross unrecognized tax benefits as of June 30, 2017 is $11,252 , of which $6,555 is recorded in the non-current income tax liability and $4,697 in current income tax payable in the condensed consolidated balance sheets. The tax accrual relates to tax positions taken in years that are open to examination. It is reasonably possible that $3,053 of net unrecognized tax benefits will be settled within the next 12 months. The Company has recorded a decrease to unrecognized tax benefits of $603 related to settlements with state tax authorities during the three months ended June 30, 2017 compared to no change to unrecognized tax benefits during the three months ended June 30, 2016 . Additional interest and penalties were incurred of $194 during the three months ended June 30, 2017 compared to $196 during the three months ended June 30, 2016 , resulting from tax positions that are subject to examination, and were recorded in interest expense in the Company’s condensed consolidated statements of comprehensive loss. As of June 30, 2017 , accrued interest and potential penalties was $3,050 , of which $1,324 was recorded in non-current income tax liability and $1,726 in current income tax payable in the condensed consolidated balance sheets. Refer to the section entitled "Recent Accounting Pronouncements" under Note 1, "General", for more information on the recording of previously unrecognized excess tax benefits on April 1, 2017 for share-based awards as a cumulative adjustment to retained earnings for the adoption of ASU No. 2016-09. |
Revolving Credit Facilities and
Revolving Credit Facilities and Mortgage Payable | 3 Months Ended |
Jun. 30, 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 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 which matures on November 13, 2019. 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. As of June 30, 2017 , the adjusted LIBOR and ABR rates were 2.72% and 4.75% , respectively, however, as there were no borrowings during three months ended June 30, 2017 , neither interest rate applied. During the three months ended June 30, 2017 , the Company made no borrowings or repayments under the Domestic Credit Facility. As of June 30, 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 $399,451 at June 30, 2017 . Subsequent to June 30, 2017 , the Company borrowed approximately $70,000 and made repayments of approximately $12,000 , resulting in an outstanding balance of approximately $58,000 and available borrowings of approximately $341,451 under the Domestic Credit Facility at August 9, 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. In October 2016, the China Credit Facility was 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 the Company's wholly-owned subsidiary, Deckers Footwear (Shanghai) Co., LTD (DFSC). In March 2017, the China Credit Facility was amended to remove DFSC, leaving DBTC as the only remaining borrower, and to add an overdraft facility sublimit of CNY 100,000 , or approximately $15,000 . 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 the People’s Bank of China market rate which was 4.35% at June 30, 2017 . During the three months ended June 30, 2017 , the Company made no borrowings or repayments under the China Credit Facility. As of June 30, 2017 , the Company had no outstanding balance under the China Credit Facility and had available borrowings of approximately $44,000 . Subsequent to June 30, 2017 , the Company began utilizing the overdraft facility sublimit and had an outstanding balance of approximately $1,000 and available borrowings of approximately $43,000 under the China Credit Facility at August 9, 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 June 30, 2017 , TIBOR for three months was 0.06% and the total effective interest rate was 0.46% . During the three months ended June 30, 2017 , the Company made no borrowings or repayments under the Japan Credit Facility. As of June 30, 2017 , the Company had no outstanding balance under the Japan Credit Facility and had available borrowings of approximately $49,000 . Subsequent to June 30, 2017 , the Company borrowed approximately $5,000 and made no repayments, resulting in an outstanding balance of approximately $5,000 and available borrowings of approximately $44,000 under the Japan Credit Facility at August 9, 2017 . Mortgage In July 2014, the Company obtained a mortgage secured by its corporate headquarters property for approximately $33,900 . As of June 30, 2017 , the outstanding principal balance under the mortgage was approximately $32,500 , which includes approximately $557 in short-term borrowings and approximately $31,943 in mortgage payable in the condensed consolidated balance sheets. As of June 30, 2017 , the Company was in compliance with all debt covenants under its borrowing arrangements and remains in compliance at August 9, 2017 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Commitments During the three months ended June 30, 2017 , there were no material changes to operating lease commitments outside those that occurred in the ordinary course of business. In June 2017, the Company entered into an addendum to the original lease agreement relating to its warehouse and distribution center located in Moreno Valley, California. Pursuant to the addendum, the Company exercised its option to lease additional square footage and extended the expiration date of the lease to June 2028. The additional future minimum lease commitment through the expiration date as a result of the option being exercised is approximately $77,200 . Purchase Obligations Product & Sheepskin During the three months ended June 30, 2017 , there were no material changes to purchase obligations for product, sheepskin and various other service and promotional agreements, outside those that occurred in the ordinary course of business. Other The Company had $2,590 of material commitments for future capital expenditures as of June 30, 2017 primarily related to information technology upgrades for Japan E-Commerce and tenant improvements for global retail store space and facilities. 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. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Equity Incentive Plans The Company uses various types of stock-based compensation under the 2006 Plan and 2015 SIP (as defined in the 2017 Annual Report), 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 plan (LTIP) PSUs or LTIP NQSOs 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 one-third installments annually over three years following the date of grant. During the three months ended June 30, 2017 , the Company granted 54,090 Annual PSUs at a weighted-average grant date fair value of $68.44 per share and 123,837 Annual RSUs at a weighted-average grant date fair value of $67.84 per share. At June 30, 2017 , the Company believes that the achievement of at least the threshold performance criteria of the fiscal year 2018 Annual PSUs is probable. The Company recorded stock compensation expense of $1,832 for the fiscal year 2018 Annual RSUs and Annual PSUs during the three months ended June 30, 2017 . As of June 30, 2017 , future unrecognized stock compensation expense for the fiscal year 2018 Annual RSUs and Annual PSUs granted to date, excluding estimated forfeitures, is $18,019 . Long-Term Incentive Awards LTIP NQSOs In November 2016, the Company approved the grant of LTIP NQSOs (2017 LTIP NQSOs) to the Company’s executive officers, which will vest on March 31, 2019 if the recipient provides continuous service through that date and the Company achieves the minimum threshold performance criteria. 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 Company measures stock compensation expense for 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 the 2017 LTIP NQSOs granted during fiscal year 2017 less actual and estimated forfeitures as of June 30, 2017 , was $4,619 , and $497 was expensed during the three months ended June 30, 2017 . In June 2017, the Company approved the grant of LTIP NQSOs (2018 LTIP NQSOs) to the Company's executive officers, which will vest on March 31, 2020 if the recipient provides continuous service through that date and the Company achieves the minimum threshold performance criteria. The fair value of the 2018 LTIP NQSOs granted, less estimated forfeitures, was $4,489 , and $79 was expensed during the three months ended June 30, 2017 . As of June 30, 2017 , future unrecognized stock compensation expense for LTIP NQSOs granted to date, excluding estimated forfeitures, was $ 8,913 . The following table presents the weighted-average valuation assumptions used for the recognition of stock compensation expense for the 2018 LTIP NQSOs granted during the three months ended June 30, 2017 : Expected life (in years) 4.9 Expected volatility 38.73 % Risk free interest rate 1.78 % Dividend yield — % Weighted-average exercise price $ 69.29 Weighted-average option value $ 25.03 Stock Repurchase Programs In January 2015, the Company approved a new stock repurchase program to repurchase up to $200,000 of the Company's common stock in the open market or in privately-negotiated transactions, subject to market conditions, applicable legal requirements, and other factors. The program does not obligate the Company to acquire any particular amount of common stock and the program may be suspended at any time at the Company's discretion. Since inception through June 30, 2017 , the Company has repurchased approximately 2,020,000 shares under the program for approximately $134,706 , or an average price of $66.69 per share, leaving the remaining approved amount at approximately $65,294 . During the three months ended June 30, 2017 , the Company made no stock repurchases under this program. The following is a reconciliation of the Company's retained earnings during the three months ended June 30, 2017 : Retained Earnings Balance at March 31, 2017 $ 819,589 Net loss (42,121 ) Cumulative unrecognized excess tax benefit* 1,365 Balance at June 30, 2017 $ 778,833 *Refer to the section entitled "Recent Accounting Pronouncements" under Note 1, "General", for more information on the recording of previously unrecognized excess tax benefits on April 1, 2017 for share-based awards as a cumulative adjustment to retained earnings for the adoption of ASU No. 2016-09. |
Foreign Currency Exchange Contr
Foreign Currency Exchange Contracts and Hedging | 3 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Foreign Currency Exchange Contracts and Hedging | Foreign Currency Exchange Rate Contracts and Hedging 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. The Company may also enter into foreign currency exchange rate contracts that are not designated as hedging instruments (Non-Designated Derivative Contracts), and these contracts are generally entered into to offset the gains and losses on certain intercompany balances until the expected time of repayment. The fair value of the notional amount of both the Designated and Non-Designated Derivative Contracts are recorded in other current assets or other accrued expenses in the condensed consolidated balance sheets. 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 condensed consolidated statements of comprehensive income (loss) during the period which approximates the time the corresponding third-party sales occur. As of June 30, 2017 , the Company had total notional value of $155,444 for foreign currency exchange rate forward contracts, which included the following: Designated Derivative Contracts Non-Designated Derivative Contracts Notional amount $121,625 $33,819 Fair value recorded in other current assets — 204 Fair value recorded in other current liabilities (4,192) (1,807) As of June 30, 2017 , the Company had Designated Derivative Contracts with four counterparties and Non-Designated Derivative Contracts with three counterparties. As of June 30, 2017 , the Company had Designated Derivative Contracts with various maturity dates within the next three to nine months, and Non-Designated Derivative Contracts that mature within six months. No contracts were settled during the three months ended June 30, 2017 . 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 three months ended June 30, 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 June 30, 2017 , the amount of unrealized gains on foreign currency exchange rate hedges recognized in accumulated OCI (see Note 10, "Accumulated Other Comprehensive Loss", for additional information) is expected to be reclassified into income within the next 12 months. The following table summarizes the effect of Designated Derivative Contracts: Three Months Ended June 30, 2017 2016 Amount of (loss) gain recognized in other comprehensive (loss) income on derivative instruments (effective portion) $(5,890) $4,464 Location of amount reclassified from accumulated other comprehensive loss into income (effective portion) Net Sales Net Sales Amount of loss reclassified from accumulated other comprehensive loss into income (effective portion) $— $(175) Location of amount excluded from effectiveness testing Selling, general and administrative expenses Selling, general and administrative expenses Amount of gain excluded from effectiveness testing $333 $192 The following table summarizes the effect of Non-Designated Derivative Contracts: Three Months Ended June 30, 2017 2016 Location of amount recognized in income on derivative instruments Selling, general and administrative expenses Selling, general and administrative expenses Amount of loss recognized in income on derivative instruments $(1,603) $(591) Subsequent to June 30, 2017 , the Company entered into Non-Designated Derivative Contracts with notional amounts totaling $17,077 , which are expected to mature over the next nine months, and no Designated Derivative Contracts. All hedging contracts at August 9, 2017 were held by a total of six counterparties. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jun. 30, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components within accumulated other comprehensive loss are as follows: June 30, 2017 March 31, 2017 Unrealized (loss) gain on foreign currency exchange rate hedges, net of tax $ (2,916 ) $ 856 Cumulative foreign currency translation adjustment (25,757 ) (27,307 ) Accumulated other comprehensive loss $ (28,673 ) $ (26,451 ) |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Loss per Share Basic net loss per share represents net loss divided by the weighted-average number of common shares outstanding for the period. Diluted net loss per share represents net loss divided by the weighted-average number of common shares outstanding, including the dilutive impact of potential issuances of common stock. The reconciliation of basic to diluted weighted-average common shares outstanding is as follows: Three Months Ended June 30, 2017 2016 Weighted-average shares used in basic computation 31,991,000 32,024,000 Dilutive effect of stock-based awards and options — — Weighted-average shares used for diluted computation 31,991,000 32,024,000 Excluded *: Annual RSUs and Annual PSUs 389,000 267,000 SARs 240,000 600,000 LTIP PSUs 269,000 396,000 LTIP NQSOs 397,000 — Deferred non-employee director restricted stock awards 7,000 10,000 Employee Stock Purchase Plan 9,000 — *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 three months ended June 30, 2017 and 2016 , respectively. 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, "Stockholders' Equity", for more information on the nature of these awards. |
Reportable Operating Segments
Reportable Operating Segments | 3 Months Ended |
Jun. 30, 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 and Koolaburra brands. 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 calendar year 2017, the Company began to leverage elements, including particular styles, of the Ahnu® (Ahnu) brand under the umbrella of the Teva brand. Effective April 1, 2017, operations for the Ahnu brand have been discontinued and all styles are sold under the Teva umbrella and are now reported in the Teva brand wholesale reportable operating segment instead of the other brands wholesale reportable operating segment as presented in the comparative prior period. Reportable operating segment information with a reconciliation to the condensed consolidated statements of comprehensive loss is summarized as follows: Three Months Ended June 30, 2017 2016 Net sales to external customers: UGG brand wholesale $ 63,273 $ 45,901 Teva brand wholesale 32,123 29,525 Sanuk brand wholesale 22,220 22,303 Other brands wholesale 26,965 18,411 Direct-to-Consumer 65,136 58,253 $ 209,717 $ 174,393 Loss from operations: UGG brand wholesale $ (1,021 ) $ (10,212 ) Teva brand wholesale 4,943 1,862 Sanuk brand wholesale 4,417 4,181 Other brands wholesale 1,026 (1,630 ) Direct-to-Consumer (12,102 ) (19,419 ) Unallocated overhead costs (53,519 ) (53,101 ) $ (56,256 ) $ (78,319 ) Inter-segment sales from the Company’s wholesale reportable operating segments to the DTC reportable operating segment are at the Company’s cost, and there is no inter-segment profit on these inter-segment sales, nor are they reflected in loss from operations of the wholesale reportable operating segments. Assets allocable to each reportable operating segment with a reconciliation to the condensed consolidated balance sheets are as follows: June 30, 2017 March 31, 2017 Total assets from reportable operating segments: UGG brand wholesale $ 386,400 $ 259,444 Teva brand wholesale 65,732 82,505 Sanuk brand wholesale 73,351 80,102 Other brands wholesale 65,564 70,607 Direct-to-Consumer 103,987 113,400 $ 695,034 $ 606,058 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 directly related to a specific reportable operating segment, 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 condensed consolidated balance sheets are as follows: June 30, 2017 March 31, 2017 Total assets from reportable operating segments $ 695,034 $ 606,058 Unallocated cash and cash equivalents 279,940 291,764 Unallocated deferred tax assets 50,698 44,708 Other unallocated corporate assets 247,186 249,250 Consolidated total assets $ 1,272,858 $ 1,191,780 |
Concentration of Business, Sign
Concentration of Business, Significant Customers and Credit Risk | 3 Months Ended |
Jun. 30, 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. Property and equipment, net, in the US and all other countries combined were as follows: June 30, 2017 March 31, 2017 US $ 200,845 $ 206,077 All other countries* 18,732 19,454 Total $ 219,577 $ 225,531 *No other country's property and equipment, net, comprised more than 10% of the Company's total property and equipment, net as of June 30, 2017 and March 31, 2017 . 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 $49,200 or 23.5% and $43,000 or 24.9% of total net sales were denominated in foreign currencies during the three months ended June 30, 2017 and 2016 , respectively. International sales were 42.4% and 37.2% of the Company's total net sales during the three months ended June 30, 2017 and 2016 , respectively. During the three months ended June 30, 2017 and 2016 , no single foreign country comprised more than 10% of the Company's total net sales. Management performs regular evaluations concerning the ability of its customers to satisfy their obligations and records an allowance for doubtful accounts based upon these evaluations. The Company's five largest customers accounted for approximately 19.9% of worldwide net sales during the three months ended June 30, 2017 compared to 20.5% during the three months ended June 30, 2016 . No single customer accounted for more than 10% of the Company's net sales during the three months ended June 30, 2017 or 2016 . At June 30, 2017 , the Company had two customers representing 15.7% and 11.7% of trade accounts receivable, net, respectively. At March 31, 2017 , the Company had one customer representing 11.2% of trade accounts receivable, net. 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 TM (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 June 30, 2017 , the Company has experienced no significant loss on its money market funds or lack of access to cash in its operating accounts. The Company's cash and cash equivalents are as follows: June 30, 2017 March 31, 2017 Money market fund accounts $ 234,635 $ 198,992 Cash 45,305 92,772 Total cash and cash equivalents $ 279,940 $ 291,764 |
General (Policies)
General (Policies) | 3 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Basis of Presentation | The Company and Basis of Presentation Deckers Outdoor Corporation, together with its consolidated subsidiaries (the Company), is a global leader in designing, marketing and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high performance activities. As part of its Omni-Channel platform, the Company's brands are aligned across its Fashion Lifestyle group, including the UGG® (UGG) and Koolaburra® (Koolaburra) brands, and Performance Lifestyle group, including the Teva® (Teva), Sanuk® (Sanuk) and Hoka One One® (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 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 unaudited condensed consolidated financial statements and the accompanying notes thereto (referred to herein as the condensed consolidated financial statements) as of June 30, 2017 and for the three months ended June 30, 2017 and 2016 , have been prepared in accordance with accounting principles generally accepted in the United States (US GAAP) for interim financial information and pursuant to Rule 10-01 Regulation S-X issued by the Securities and Exchange Commission (SEC). Accordingly, they do not include all the information and disclosures required by US GAAP for annual financial statements and the accompanying notes thereto. In the opinion of management, the condensed consolidated financial statements include all adjustments consisting of all normal and recurring entries considered necessary for a fair presentation of the results of interim periods presented. The results of operations for interim periods are not necessarily indicative of results to be achieved for full fiscal years or other interim periods. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes thereto in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2017 , filed with the SEC on May 30, 2017 (2017 Annual Report). All intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications were made for all prior periods presented, including the three months ended June 30, 2017 and 2016 , to conform to the current period presentation. |
Use of Estimates | Use of Estimates The preparation of the Company's condensed consolidated financial statements is done in accordance with US GAAP, which requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements. 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, sales returns liabilities, stock-based compensation, impairment assessments, depreciation and amortization, income tax liabilities and receivables, uncertain tax positions, the fair value of financial instruments and other assets and liabilities, including goodwill and other intangible assets. These estimates are based on information available as of the date of the condensed consolidated financial statements. For the reasons stated, actual results could differ materially from these estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-11, Simplifying the Measurement of Inventory. The Company adopted this ASU on April 1, 2017 on a prospective basis and the Company changed its accounting policy to measure inventory at the lower of cost or market or net realizable value less an approximate normal profit margin at each financial statement date. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The adoption of this ASU did not have a material impact on the Company's condensed consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting . The Company adopted this ASU on April 1, 2017 on a prospective basis and the Company changed its accounting policy for certain aspects of share-based payment awards to employees, including the accounting for income taxes and statutory tax withholding requirements, as well as classification in the statement of cash flows. Beginning April 1, 2017, the adoption of this ASU had the following impact on the condensed consolidated financial statements and related disclosures: • The calculation of diluted weighted-average shares outstanding no longer includes excess tax benefits as assumed proceeds, which did not have a material impact on the Company’s calculation of diluted earnings per share. • Excess tax benefits and deficiencies were recorded as income tax benefits or expenses in the condensed consolidated statements of comprehensive loss for the three months ended June 30, 2017 , rather than to additional paid-in capital in the condensed consolidated balance sheets for settlements of share-based payment awards occurring on or after April 1, 2017. The Company's income tax benefit or expense will continue to be impacted by fluctuations in the stock price between grant and vesting dates of its share-based payment awards. • A cumulative adjustment to retained earnings and non-current deferred tax assets for unrecognized excess tax benefits of $1,365 was recorded on April 1, 2017 in the condensed consolidated balance sheet as of June 30, 2017 . • The Company has made current and prior period reclassifications in the condensed consolidated statements of cash flows to present cash flows from excess tax benefits as cash flows provided by operating activities instead of the historical presentation as cash flows provided by financing activities. • The Company elected to continue to estimate forfeitures as a component of determining grant date fair value. Not Yet Adopted In May 2014, the FASB issued 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. This ASU will replace most existing revenue recognition guidance under 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 for 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. In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing , which clarifies two components of ASU No. 2014-09: (1) identifying performance obligations and (2) licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients , which is intended to improve the operability and understandability of the implementation guidance by providing clarifications and practical expedients. 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 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. This ASU 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. This ASU requires a modified retrospective transition method for leases existing at the beginning of the earliest comparative period presented in the adoption-period financial statements. This ASU will be effective for 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 commitments that are currently classified as operating leases, such as retail stores, showrooms, and distribution facilities, as well as expanded disclosures on existing lease commitments. The recognition of lease expense is not expected to materially change from the current methodology. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments . This ASU eliminates the diversity in practice related to the classification of certain cash receipts and payments. This ASU will be effective for 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 consolidated financial statements and related disclosures, but its adoption is not expected to have a material impact. In October 2016, the FASB issued ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory . This ASU requires that the income tax impact of intra-entity sales and transfers of property, except for inventory, be recognized when the transfer occurs. This ASU will be effective for the Company’s annual and interim reporting periods beginning April 1, 2018 and will require any deferred taxes not yet recognized on intra-entity transfers to be recorded to retained earnings under a modified retrospective approach, 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. In January 2017, the FASB issued ASU No. 2017-04, Goodwill and Other: 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 guidance, 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 will be effective for the Company’s annual and interim reporting periods beginning April 1, 2020, with early adoption permitted on or after January 1, 2017. The Company is evaluating the effect that the adoption of this ASU will have on its consolidated financial statements and related disclosures. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting , which updates the guidance for changes to the terms or conditions of a share-based payment award which would require an entity to apply modification accounting. An entity should account for the effects of a modification to a share-based payment award unless all of the following conditions are met: (1) the fair value, (2) vesting conditions, and (3) classification of the modified awards are the same as the fair value, vesting conditions, or classification of the original award immediately before the original award is modified. This ASU will be effective for the Company's annual and interim reporting periods beginning April 1, 2018. 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, inventories, net, 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 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. |
Derivatives | 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. The Company may also enter into foreign currency exchange rate contracts that are not designated as hedging instruments (Non-Designated Derivative Contracts), and these contracts are generally entered into to offset the gains and losses on certain intercompany balances until the expected time of repayment. The fair value of the notional amount of both the Designated and Non-Designated Derivative Contracts are recorded in other current assets or other accrued expenses in the condensed consolidated balance sheets. 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 condensed consolidated statements of comprehensive income (loss) during the period which approximates the time the corresponding third-party sales occur. |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the remaining liability for restructuring charges as of June 30, 2017 : Lease termination costs Severance costs Termination of various contracts and other services Total Balance as of March 31, 2017 $ 4,572 $ 2,555 $ 3,953 $ 11,080 Additional charges — — 1,518 1,518 Paid in cash (418 ) (2,052 ) (2,345 ) (4,815 ) Balance as of June 30, 2017 $ 4,154 $ 503 $ 3,126 $ 7,783 |
Restructuring and Related Costs | The following table summarizes these restructuring charges by reportable operating segment and unallocated charges: Three Months Ended June 30, 2017 2016 Direct-to-Consumer $ — $ 1,335 Unallocated overhead costs 1,518 397 Total restructuring charges $ 1,518 $ 1,732 |
Goodwill and Other Intangible21
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 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: June 30, 2017 March 31, 2017 Goodwill: UGG brand $ 6,101 $ 6,101 Other brands 7,889 7,889 Total Goodwill 13,990 13,990 Other Intangible Assets: Indefinite-lived Intangible Assets Trademarks 15,454 15,454 Definite-lived Intangible Assets Trademarks 55,245 55,245 Other 49,614 48,800 Total gross carrying amount 104,859 104,045 Accumulated amortization (56,810 ) (54,361 ) Net Definite-lived Intangible Assets 48,049 49,684 Total Other Intangible Assets 63,503 65,138 Total Goodwill and Other Intangible Assets $ 77,493 $ 79,128 |
Schedule of finite-lived intangible assets | Charges incurred in the condensed consolidated statements of comprehensive loss relevant to the Company's other intangible assets during the three months ended June 30, 2017 , are as follows: Balance, March 31, 2017 $ 65,138 Amortization expense (1,910 ) Foreign currency exchange rate fluctuations 275 Balance, June 30, 2017 $ 63,503 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 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 June 30, 2017 Measured Using Level 1 Level 2 Level 3 Assets (liabilities) at fair value: Non-qualified deferred compensation asset $ 6,816 $ 6,816 $ — $ — Non-qualified deferred compensation liability (4,206 ) (4,206 ) — — Designated Derivative Contracts liability (4,192 ) — (4,192 ) — Non-Designated Derivative Contracts asset 204 — 204 — Non-Designated Derivative Contracts liability (1,807 ) — (1,807 ) — Fair Value as of March 31, 2017 Measured 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 — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | The following is a reconciliation of the Company's retained earnings during the three months ended June 30, 2017 : Retained Earnings Balance at March 31, 2017 $ 819,589 Net loss (42,121 ) Cumulative unrecognized excess tax benefit* 1,365 Balance at June 30, 2017 $ 778,833 |
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 2018 LTIP NQSOs granted during the three months ended June 30, 2017 : Expected life (in years) 4.9 Expected volatility 38.73 % Risk free interest rate 1.78 % Dividend yield — % Weighted-average exercise price $ 69.29 Weighted-average option value $ 25.03 |
Foreign Currency Exchange Con24
Foreign Currency Exchange Contracts and Hedging (Tables) | 3 Months Ended |
Jun. 30, 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: Three Months Ended June 30, 2017 2016 Amount of (loss) gain recognized in other comprehensive (loss) income on derivative instruments (effective portion) $(5,890) $4,464 Location of amount reclassified from accumulated other comprehensive loss into income (effective portion) Net Sales Net Sales Amount of loss reclassified from accumulated other comprehensive loss into income (effective portion) $— $(175) Location of amount excluded from effectiveness testing Selling, general and administrative expenses Selling, general and administrative expenses Amount of gain excluded from effectiveness testing $333 $192 As of June 30, 2017 , the Company had total notional value of $155,444 for foreign currency exchange rate forward contracts, which included the following: Designated Derivative Contracts Non-Designated Derivative Contracts Notional amount $121,625 $33,819 Fair value recorded in other current assets — 204 Fair value recorded in other current liabilities (4,192) (1,807) |
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: Three Months Ended June 30, 2017 2016 Location of amount recognized in income on derivative instruments Selling, general and administrative expenses Selling, general and administrative expenses Amount of loss recognized in income on derivative instruments $(1,603) $(591) |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Components of accumulated other comprehensive income | The components within accumulated other comprehensive loss are as follows: June 30, 2017 March 31, 2017 Unrealized (loss) gain on foreign currency exchange rate hedges, net of tax $ (2,916 ) $ 856 Cumulative foreign currency translation adjustment (25,757 ) (27,307 ) Accumulated other comprehensive loss $ (28,673 ) $ (26,451 ) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Jun. 30, 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: Three Months Ended June 30, 2017 2016 Weighted-average shares used in basic computation 31,991,000 32,024,000 Dilutive effect of stock-based awards and options — — Weighted-average shares used for diluted computation 31,991,000 32,024,000 Excluded *: Annual RSUs and Annual PSUs 389,000 267,000 SARs 240,000 600,000 LTIP PSUs 269,000 396,000 LTIP NQSOs 397,000 — Deferred non-employee director restricted stock awards 7,000 10,000 Employee Stock Purchase Plan 9,000 — |
Reportable Operating Segments (
Reportable Operating Segments (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of business segments information | Assets allocable to each reportable operating segment with a reconciliation to the condensed consolidated balance sheets are as follows: June 30, 2017 March 31, 2017 Total assets from reportable operating segments: UGG brand wholesale $ 386,400 $ 259,444 Teva brand wholesale 65,732 82,505 Sanuk brand wholesale 73,351 80,102 Other brands wholesale 65,564 70,607 Direct-to-Consumer 103,987 113,400 $ 695,034 $ 606,058 Reportable operating segment information with a reconciliation to the condensed consolidated statements of comprehensive loss is summarized as follows: Three Months Ended June 30, 2017 2016 Net sales to external customers: UGG brand wholesale $ 63,273 $ 45,901 Teva brand wholesale 32,123 29,525 Sanuk brand wholesale 22,220 22,303 Other brands wholesale 26,965 18,411 Direct-to-Consumer 65,136 58,253 $ 209,717 $ 174,393 Loss from operations: UGG brand wholesale $ (1,021 ) $ (10,212 ) Teva brand wholesale 4,943 1,862 Sanuk brand wholesale 4,417 4,181 Other brands wholesale 1,026 (1,630 ) Direct-to-Consumer (12,102 ) (19,419 ) Unallocated overhead costs (53,519 ) (53,101 ) $ (56,256 ) $ (78,319 ) |
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 condensed consolidated balance sheets are as follows: June 30, 2017 March 31, 2017 Total assets from reportable operating segments $ 695,034 $ 606,058 Unallocated cash and cash equivalents 279,940 291,764 Unallocated deferred tax assets 50,698 44,708 Other unallocated corporate assets 247,186 249,250 Consolidated total assets $ 1,272,858 $ 1,191,780 |
Concentration of Business, Si28
Concentration of Business, Significant Customers and Credit Risk (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Schedule of long-lived assets, which consist of property and equipment, by major country | Property and equipment, net, in the US and all other countries combined were as follows: June 30, 2017 March 31, 2017 US $ 200,845 $ 206,077 All other countries* 18,732 19,454 Total $ 219,577 $ 225,531 *No other country's property and equipment, net, comprised more than 10% of the Company's total property and equipment, net as of June 30, 2017 and March 31, 2017 . |
Schedule of the Company's cash and cash equivalents | The Company's cash and cash equivalents are as follows: June 30, 2017 March 31, 2017 Money market fund accounts $ 234,635 $ 198,992 Cash 45,305 92,772 Total cash and cash equivalents $ 279,940 $ 291,764 |
General - Narrative (Details)
General - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2017USD ($)segment | Apr. 01, 2017USD ($) | Mar. 31, 2017USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of reportable segments | segment | 5 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred tax assets | $ 50,698 | $ 44,708 | |
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | $ 1,365 | ||
Accounting Standards Update 2016-09, Excess Tax Benefit Component | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred tax assets | $ 1,365 | ||
Accounting Standards Update 2016-09, Excess Tax Benefit Component | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | $ 1,365 |
Restructuring (Details)
Restructuring (Details) $ in Thousands | 3 Months Ended | 17 Months Ended | |||
Jun. 30, 2017USD ($)store | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)store | Mar. 31, 2020store | Mar. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 1,518 | $ 1,732 | |||
Brand Realignment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 1,518 | $ 1,732 | $ 55,308 | ||
Restructuring reserve | $ 7,783 | $ 7,783 | $ 11,080 | ||
Brand Realignment | Facility Closing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of stores closed | store | 25 | 25 | |||
Scenario, Forecast | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of stores forecast | store | 125 | ||||
Short Term Liabilities | Brand Realignment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | $ 3,340 | $ 3,340 | |||
Long Term Liabilities | Brand Realignment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | $ 4,443 | $ 4,443 |
Restructuring Schedule of Restr
Restructuring Schedule of Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 17 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring costs | $ 1,518 | $ 1,732 | |
Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance restructuring reserve | 11,080 | ||
Restructuring costs | 1,518 | $ 1,732 | $ 55,308 |
Paid in cash | (4,815) | ||
Ending balance restructuring reserve | 7,783 | 7,783 | |
Lease termination costs | Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance restructuring reserve | 4,572 | ||
Restructuring costs | 0 | ||
Paid in cash | (418) | ||
Ending balance restructuring reserve | 4,154 | 4,154 | |
Severance costs | Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance restructuring reserve | 2,555 | ||
Restructuring costs | 0 | ||
Paid in cash | (2,052) | ||
Ending balance restructuring reserve | 503 | 503 | |
Termination of various contracts and other services | Brand Realignment | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance restructuring reserve | 3,953 | ||
Paid in cash | (2,345) | ||
Ending balance restructuring reserve | $ 3,126 | $ 3,126 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 17 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 1,518 | $ 1,732 | |
Brand Realignment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 1,518 | 1,732 | $ 55,308 |
Reportable segments | Direct-to-Consumer | Brand Realignment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | 1,335 | |
Unallocated to Segments | Brand Realignment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 1,518 | $ 397 |
Goodwill and Other Intangible33
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Indefinite-lived Intangible Assets | ||
Goodwill | $ 13,990 | $ 13,990 |
Trademarks | 15,454 | 15,454 |
Definite-lived Intangible Assets | ||
Total gross carrying amount | 104,859 | 104,045 |
Accumulated amortization | (56,810) | (54,361) |
Net Definite-lived Intangible Assets | 48,049 | 49,684 |
Total Other Intangible Assets | 63,503 | 65,138 |
Total Goodwill and Other Intangible Assets | 77,493 | 79,128 |
UGG brand wholesale | ||
Indefinite-lived Intangible Assets | ||
Goodwill | 6,101 | 6,101 |
Other brands wholesale | ||
Indefinite-lived Intangible Assets | ||
Goodwill | 7,889 | 7,889 |
Trademarks | ||
Definite-lived Intangible Assets | ||
Total gross carrying amount | 55,245 | 55,245 |
Other Intangible Assets | ||
Definite-lived Intangible Assets | ||
Total gross carrying amount | $ 49,614 | $ 48,800 |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Mar. 31, 2017 | |
Goodwill [Line Items] | ||
Amortization of intangible assets | $ 1,910 | $ 2,069 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets Schedule of Changes in Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Mar. 31, 2017 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible assets, net, beginning balance | $ 65,138 | |
Amortization expense | (1,910) | $ (2,069) |
Changes in foreign currency exchange rates | 275 | |
Intangible assets, net, ending balance | $ 63,503 | $ 65,138 |
Fair Value Measurements Schedul
Fair Value Measurements Schedule of Fair Value Assets and Liabilities (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation asset | $ 6,816 | $ 6,662 |
Non-qualified deferred compensation liability | (4,206) | (4,140) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation asset | 6,816 | 6,662 |
Non-qualified deferred compensation liability | (4,206) | (4,140) |
Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Designated Derivative Contracts asset | 1,365 | |
Designated as Hedging Instrument | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value recorded in other current liabilities | (4,192) | |
Designated Derivative Contracts asset | $ 1,365 | |
Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value recorded in other current liabilities | (1,807) | |
Designated Derivative Contracts asset | 204 | |
Not Designated as Hedging Instrument | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value recorded in other current liabilities | (1,807) | |
Designated Derivative Contracts asset | $ 204 |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) - USD ($) | Jun. 30, 2017 | Mar. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Distributions paid | $ 0 | $ 0 |
Recorded liability | 13,000 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation asset | 6,816,000 | 6,662,000 |
Non-qualified deferred compensation liability | 4,206,000 | $ 4,140,000 |
Deferred compensation liability, current | 883,000 | |
Other long term liabilities | $ 3,323,000 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Unrecognized tax benefits that would impact effective tax rate | $ 127,000 | $ 0 |
Unrecognized tax benefits | 11,252,000 | |
Significant change in unrecognized tax benefits is reasonably possible | 3,053,000 | |
Income tax penalties and interest expense | 194,000 | 196,000 |
Accrued interest on income tax contingencies | 3,050,000 | |
Noncurrent Income Tax Liability | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Unrecognized tax benefits | 6,555,000 | |
Accrued interest on income tax contingencies | 1,324,000 | |
Current Income Tax Liability | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Unrecognized tax benefits | 4,697,000 | |
Accrued interest on income tax contingencies | 1,726,000 | |
State and Local Jurisdiction | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Settlements | $ 603,000 | $ 0 |
Revolving Credit Facilities a39
Revolving Credit Facilities and Mortgage Payable - Domestic Line of Credit (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Aug. 09, 2017 | Oct. 31, 2016 | Jun. 30, 2017 | |
Credit Agreement | |||
Notes Payable and Long-Term Debt | |||
Term of agreement (in years) | 5 years | ||
Current borrowing capacity | $ 400,000,000 | ||
Credit Agreement | LIBOR based interest rates | |||
Notes Payable and Long-Term Debt | |||
Interest rate, effective percentage | 2.72% | ||
Credit Agreement | Alternate Base Rate based interest rates | |||
Notes Payable and Long-Term Debt | |||
Interest rate, effective percentage | 4.75% | ||
Second Amended And Restated Credit Agreement, As Amended | Line of Credit | Revolving Credit Facility | |||
Notes Payable and Long-Term Debt | |||
Proceeds from lines of credit | $ 0 | ||
Outstanding letters of credit | 549,000 | ||
Amount available under the credit agreement | 399,451,000 | ||
Repayments of lines of credit | $ 0 | ||
Second Amended And Restated Credit Agreement, As Amended | Line of Credit | Revolving Credit Facility | Subsequent Event | |||
Notes Payable and Long-Term Debt | |||
Proceeds from lines of credit | $ 70,000,000 | ||
Long-term line of credit | 58,000,000 | ||
Amount available under the credit agreement | 341,451,000 | ||
Repayments of lines of credit | $ 12,000,000 |
Revolving Credit Facilities a40
Revolving Credit Facilities and Mortgage Payable - China Line of Credit (Details) | 3 Months Ended | |||||
Jun. 30, 2017USD ($) | Aug. 09, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2017USD ($) | Oct. 31, 2016CNY (¥) | Oct. 31, 2016USD ($) | |
China Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument covenant percentage of facility amount in United States dollars guaranteed | 108.50% | |||||
Revolving Credit Facility | Line of Credit | Second Amended China Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, effective percentage | 4.35% | |||||
Proceeds from lines of credit | $ 0 | |||||
Long-term line of credit | 0 | |||||
Amount available under the credit agreement | 44,000,000 | |||||
Repayments of lines of credit | $ 0 | |||||
Subsequent Event | Line of Credit | Second Amended China Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Amount available under the credit agreement | $ 43,000,000 | |||||
Subsequent Event | Line of Credit | Second Amended China Credit Facility, Overdraft Sublimit | ||||||
Debt Instrument [Line Items] | ||||||
Long-term line of credit | $ 1,000,000 | |||||
Line of Credit | Revolving Credit Facility | Second Amended China Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Additional available credit | ¥ 300,000,000 | $ 44,000,000 | ||||
Capacity available for specific purpose other than for trade purchases | ¥ 50,000,000 | $ 7,000,000 | ||||
Line of Credit | Revolving Credit Facility | Second Amended China Credit Facility, Overdraft Sublimit | ||||||
Debt Instrument [Line Items] | ||||||
Overdraft facility sublimit | ¥ 100,000,000 | $ 15,000,000 |
Revolving Credit Facilities a41
Revolving Credit Facilities and Mortgage Payable - Japan Line of Credit (Details) - Japan Credit Facility | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Aug. 09, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2016JPY (¥) | Mar. 31, 2016USD ($) | |
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 | |||
Proceeds from lines of credit | 0 | |||
Amount available under the credit agreement | 49,000,000 | |||
Repayments of lines of credit | $ 0 | |||
Subsequent Event | Line of Credit | ||||
Notes Payable and Long-Term Debt | ||||
Amount available under the credit agreement | $ 44,000,000 | |||
Long-term line of credit | 5,000,000 | |||
Subsequent Event | Revolving Credit Facility | Line of Credit | ||||
Notes Payable and Long-Term Debt | ||||
Proceeds from lines of credit | 5,000,000 | |||
Repayments of lines of credit | $ 0 |
Revolving Credit Facilities a42
Revolving Credit Facilities and Mortgage Payable - Mortgage (Details) - USD ($) | Jun. 30, 2017 | Mar. 31, 2017 | Jul. 31, 2014 |
Debt Instrument [Line Items] | |||
Short-term borrowings | $ 557,000 | $ 549,000 | |
Mortgage payable | 31,943,000 | $ 32,082,000 | |
Mortgages | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 33,900,000 | ||
Long-term debt gross | 32,500,000 | ||
Short-term borrowings | 557,000 | ||
Mortgage payable | $ 31,943,000 |
Commitments and Contingencies -
Commitments and Contingencies - Lease Commitments (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Building | |
Commitments and Contingencies | |
Minimum rentals | $ 77,200 |
Commitments and Contingencies44
Commitments and Contingencies - Purchase Commitments (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2017USD ($) | |
Other Purchase Commitment | |
Future commitments | |
Purchase commitment amount | $ 2,590 |
Stockholders' Equity - Incentiv
Stockholders' Equity - Incentive Plans (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
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) | shares | 54,090 |
Granted (in dollars per share) | $ / shares | $ 68.44 |
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) | shares | 123,837 |
Granted (in dollars per share) | $ / shares | $ 67.84 |
Awards for fiscal 2018 | Annual RSUs and Annual PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation expenses recorded | $ | $ 1,832 |
Unrecognized stock compensation expense | $ | $ 18,019 |
Stockholders' Equity - LTIP (De
Stockholders' Equity - LTIP (Details) - Employee Stock Option $ in Thousands | 3 Months Ended |
Jun. 30, 2017USD ($) | |
2017 Long-Term Incentive Plan NQSOs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock granted net of forfeitures | $ 4,619 |
Compensation expenses recorded | 497 |
2018 Long-Term Incentive Plan NQSOs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock granted net of forfeitures | 4,489 |
Compensation expenses recorded | 79 |
Long Term Incentive Plan NQSOs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock compensation expense | $ 8,913 |
Stockholders' Equity - LTIP Ass
Stockholders' Equity - LTIP Assumptions (Details) - 2018 Long-Term Incentive Plan NQSOs | 3 Months Ended |
Jun. 30, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (in years) | 4 years 10 months 24 days |
Expected volatility | 38.73% |
Risk free interest rate | 1.78% |
Dividend yield | 0.00% |
Weighted average exercise price (in usd per share) | $ 69.29 |
Weighted average option value (in usd per share) | $ 25.03 |
Stockholders' Equity - Stock Re
Stockholders' Equity - Stock Repurchase Plan (Details) - USD ($) | 3 Months Ended | 30 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares repurchased (in shares) | 0 | ||
2015 Stock Repurchase Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum stock repurchase amount approved by Board of Directors | $ 200,000,000 | ||
Shares purchased since inception (in shares) | 2,020,000,000 | ||
Repurchased stock value | $ 134,706,000 | ||
Repurchased stock acquired average cost per share | $ 66.69 | ||
Remaining authorized repurchase amount | $ 65,294,000 | $ 65,294,000 |
Stockholders' Equity - Stock 49
Stockholders' Equity - Stock Repurchase Plan, Retained Earnings Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity | |||
Net loss | $ (42,121) | $ (58,918) | |
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity | |||
Beginning balance | 819,589 | ||
Cumulative effect of new accounting principle in period of adoption | $ 1,365 | ||
Net loss | (42,121) | ||
Ending balance | $ 778,833 |
Foreign Currency Exchange Con50
Foreign Currency Exchange Contracts and Hedging (Details) | 1 Months Ended | 3 Months Ended | ||
Aug. 09, 2017USD ($)counterparty | Jun. 30, 2017USD ($)counterparty | Jun. 30, 2016USD ($) | Mar. 31, 2017USD ($) | |
Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Notional amount | $ 155,444,000 | |||
Derivative, entered into and settled during period, notional amount | $ 0 | |||
Designated as Hedging Instrument | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Number of counterparties in derivative contracts | counterparty | 4 | |||
Designated as Hedging Instrument | Derivatives designated as cash flow hedges | ||||
Summary of the effect of derivative instruments on the consolidated statements of income | ||||
Amount of loss reclassified from accumulated other comprehensive loss into income (effective portion) | $ 0 | $ (175,000) | ||
Amount of gain excluded from effectiveness testing | 333,000 | 192,000 | ||
Designated as Hedging Instrument | 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 (loss) gain recognized in other comprehensive (loss) income on derivative instruments (effective portion) | $ (5,890,000) | 4,464,000 | ||
Not Designated as Hedging Instrument | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Number of counterparties in derivative contracts | counterparty | 3 | |||
Maximum remaining maturity of foreign currency derivatives | 6 months | |||
Summary of the effect of derivative instruments on the consolidated statements of income | ||||
Amount of loss recognized in income on derivative instruments | $ (1,603,000) | $ (591,000) | ||
Subsequent Event | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Number of counterparties in derivative contracts | counterparty | 6 | |||
Subsequent Event | Designated as Hedging Instrument | Derivatives designated as cash flow hedges | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Notional amount | $ 0 | |||
Subsequent Event | Not Designated as Hedging Instrument | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Notional amount | $ 17,077,000 | |||
Maximum remaining maturity of foreign currency derivatives | 9 months | |||
Fair Value, Measurements, Recurring | Designated as Hedging Instrument | ||||
Foreign currency exchange contracts and hedging | ||||
Fair value recorded in other current assets | $ 1,365,000 | |||
Fair Value, Measurements, Recurring | Designated as Hedging Instrument | Derivatives designated as cash flow hedges | ||||
Foreign currency exchange contracts and hedging | ||||
Fair value recorded in other current liabilities | (4,192,000) | |||
Fair Value, Measurements, Recurring | Designated as Hedging Instrument | Derivatives designated as cash flow hedges | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Notional amount | 121,625,000 | |||
Fair value recorded in other current assets | 0 | |||
Fair Value, Measurements, Recurring | Not Designated as Hedging Instrument | ||||
Foreign currency exchange contracts and hedging | ||||
Fair value recorded in other current assets | 204,000 | |||
Fair value recorded in other current liabilities | (1,807,000) | |||
Fair Value, Measurements, Recurring | Not Designated as Hedging Instrument | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Notional amount | $ 33,819,000 | |||
Minimum | Designated as Hedging Instrument | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Maximum remaining maturity of foreign currency derivatives | 3 months | |||
Maximum | Designated as Hedging Instrument | Foreign currency exchange contracts | ||||
Foreign currency exchange contracts and hedging | ||||
Maximum remaining maturity of foreign currency derivatives | 9 months |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 |
Accumulated other comprehensive income | ||
Unrealized (loss) gain on foreign currency exchange rate hedges, net of tax | $ (2,916) | $ 856 |
Cumulative foreign currency translation adjustment | (25,757) | (27,307) |
Accumulated other comprehensive loss | $ (28,673) | $ (26,451) |
Net Income Per Share (Details)
Net Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average number of basic shares outstanding (in shares) | 31,991 | 32,024 |
Weighted average number diluted shares outstanding adjustment (in shares) | 0 | 0 |
Weighted average number of diluted shares outstanding (in shares) | 31,991 | 32,024 |
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) | 389,000 | 267,000 |
LTIP SARs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 240,000 | 600,000 |
LTIP PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 269,000 | 396,000 |
LTIP NQSOs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 397,000 | 0 |
Deferred non-employee director restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 7,000 | 10,000 |
Employee Stock Purchase Plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 9,000 | 0 |
Reportable Operating Segments53
Reportable Operating Segments (Details) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | Mar. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 5 | ||
Net sales to external customers | $ 209,717 | $ 174,393 | |
(Loss) income from operations | (56,256) | (78,319) | |
Total assets | 1,272,858 | $ 1,191,780 | |
Unallocated to Segments | |||
Segment Reporting Information [Line Items] | |||
(Loss) income from operations | (53,519) | (53,101) | |
Reportable segments | |||
Segment Reporting Information [Line Items] | |||
Total assets | 695,034 | 606,058 | |
Reportable segments | UGG brand wholesale | |||
Segment Reporting Information [Line Items] | |||
Net sales to external customers | 63,273 | 45,901 | |
(Loss) income from operations | (1,021) | (10,212) | |
Total assets | 386,400 | 259,444 | |
Reportable segments | Teva brand wholesale | |||
Segment Reporting Information [Line Items] | |||
Net sales to external customers | 32,123 | 29,525 | |
(Loss) income from operations | 4,943 | 1,862 | |
Total assets | 65,732 | 82,505 | |
Reportable segments | Sanuk brand wholesale | |||
Segment Reporting Information [Line Items] | |||
Net sales to external customers | 22,220 | 22,303 | |
(Loss) income from operations | 4,417 | 4,181 | |
Total assets | 73,351 | 80,102 | |
Reportable segments | Other brands wholesale | |||
Segment Reporting Information [Line Items] | |||
Net sales to external customers | 26,965 | 18,411 | |
(Loss) income from operations | 1,026 | (1,630) | |
Total assets | 65,564 | 70,607 | |
Reportable segments | Direct-to-Consumer | |||
Segment Reporting Information [Line Items] | |||
Net sales to external customers | 65,136 | 58,253 | |
(Loss) income from operations | (12,102) | $ (19,419) | |
Total assets | $ 103,987 | $ 113,400 |
Reportable Operating Segments -
Reportable Operating Segments - Reconciliation (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 |
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ||||
Cash and cash equivalents | $ 279,940 | $ 291,764 | $ 202,309 | $ 245,956 |
Deferred tax assets | 50,698 | 44,708 | ||
Total assets | 1,272,858 | 1,191,780 | ||
Reportable segments | ||||
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ||||
Total assets | 695,034 | 606,058 | ||
Unallocated to Segments | ||||
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ||||
Other unallocated corporate assets | $ 247,186 | $ 249,250 |
Concentration of Business, Si55
Concentration of Business, Significant Customers and Credit Risk (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($)customersuppliertannery | Jun. 30, 2016USD ($) | Mar. 31, 2017USD ($)customer | |
Concentration Risk [Line Items] | |||
Property and equipment | $ 219,577 | $ 225,531 | |
Number of customers considered concentration risk | customer | 5 | ||
Number of tanneries | tannery | 2 | ||
Number of suppliers | supplier | 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) | 42.40% | 37.20% | |
Concentration risk percentage benchmark | 10.00% | ||
Sales Revenue, Net | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 19.90% | 20.50% | |
Accounts Receivable | Unidentified Major Customer One | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 15.70% | 11.20% | |
Number of customers considered concentration risk | customer | 2 | 1 | |
Accounts Receivable | Unidentified Major Customer Two | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 11.70% | ||
UNITED STATES | |||
Concentration Risk [Line Items] | |||
Property and equipment | $ 200,845 | $ 206,077 | |
Other Countries | |||
Concentration Risk [Line Items] | |||
Property and equipment | $ 18,732 | $ 19,454 | |
Concentration risk (as a percent) | 23.50% | 24.90% | |
Revenue | $ 49,200 | $ 43,000 |
Concentration of Business, Si56
Concentration of Business, Significant Customers and Credit Risk Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 |
Risks and Uncertainties [Abstract] | ||||
Money market fund accounts | $ 234,635 | $ 198,992 | ||
Cash | 45,305 | 92,772 | ||
Cash and cash equivalents | $ 279,940 | $ 291,764 | $ 202,309 | $ 245,956 |