Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | DECKERS OUTDOOR CORP | |
Entity Central Index Key | 910,521 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 29,122,209 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 182,192 | $ 429,970 |
Trade accounts receivable, net of allowances ($14,019 and $33,462 as of September 30, 2018 and March 31, 2018, respectively) | 321,784 | 143,704 |
Inventories, net of reserves ($8,136 and $9,020 as of September 30, 2018 and March 31, 2018, respectively) | 514,927 | 299,602 |
Prepaid expenses | 21,160 | 17,639 |
Other current assets | 36,671 | 17,599 |
Income tax receivable | 1,731 | 2,176 |
Total current assets | 1,078,465 | 910,690 |
Property and equipment, net of accumulated depreciation ($219,969 and $210,763 as of September 30, 2018 and March 31, 2018, respectively) | 215,720 | 220,162 |
Goodwill | 13,990 | 13,990 |
Other intangible assets, net of accumulated amortization ($68,755 and $66,065 as of September 30, 2018 and March 31, 2018, respectively) | 54,356 | 57,850 |
Deferred tax assets, net | 38,878 | 38,381 |
Other assets | 22,559 | 23,306 |
Total assets | 1,423,968 | 1,264,379 |
Current liabilities | ||
Short-term borrowings | 71,473 | 578 |
Trade accounts payable | 277,577 | 93,939 |
Accrued payroll | 31,692 | 55,695 |
Other accrued expenses | 42,887 | 24,446 |
Income taxes payable | 14,283 | 11,006 |
Value added tax payable | 10,305 | 3,502 |
Total current liabilities | 448,217 | 189,166 |
Mortgage payable | 31,210 | 31,504 |
Income tax liability | 62,053 | 64,735 |
Deferred rent obligations | 20,505 | 22,499 |
Other long-term liabilities | 15,196 | 15,696 |
Total long-term liabilities | 128,964 | 134,434 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock ($0.01 par value; 125,000 shares authorized; shares issued and outstanding of 29,371 and 30,447 as of September 30, 2018 and March 31, 2018, respectively) | 294 | 304 |
Additional paid-in capital | 171,094 | 167,587 |
Retained earnings | 695,580 | 785,871 |
Accumulated other comprehensive loss | (20,181) | (12,983) |
Total stockholders' equity | 846,787 | 940,779 |
Total liabilities and stockholders' equity | $ 1,423,968 | $ 1,264,379 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances | $ 14,019 | $ 33,462 |
Inventory reserves | 8,136 | 9,020 |
Accumulated depreciation | 219,969 | 210,763 |
Accumulated amortization | $ 68,755 | $ 66,065 |
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) | 29,371,000 | 30,447,000 |
Common stock, outstanding shares (in shares) | 29,371,000 | 30,447,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 501,913 | $ 482,460 | $ 752,507 | $ 692,177 |
Cost of sales | 250,026 | 257,343 | 385,655 | 376,435 |
Gross profit | 251,887 | 225,117 | 366,852 | 315,742 |
Selling, general and administrative expenses | 161,475 | 157,762 | 315,854 | 304,643 |
Income from operations | 90,412 | 67,355 | 50,998 | 11,099 |
Interest income | (814) | (509) | (2,400) | (961) |
Interest expense | 1,640 | 1,531 | 2,874 | 2,538 |
Other (income) expense, net | (189) | 12 | (200) | (212) |
Total other expense, net | 637 | 1,034 | 274 | 1,365 |
Income before income taxes | 89,775 | 66,321 | 50,724 | 9,734 |
Income tax expense | 15,403 | 16,762 | 6,759 | 2,296 |
Net income | 74,372 | 49,559 | 43,965 | 7,438 |
Other comprehensive (loss) income, net of tax | ||||
Unrealized (loss) gain on cash flow hedges | (1,197) | (911) | 4,126 | (4,683) |
Foreign currency translation (loss) gain | (3,861) | 2,968 | (11,324) | 4,518 |
Total other comprehensive (loss) income | (5,058) | 2,057 | (7,198) | (165) |
Comprehensive income | $ 69,314 | $ 51,616 | $ 36,767 | $ 7,273 |
Net income per share | ||||
Basic (in dollars per share) | $ 2.49 | $ 1.55 | $ 1.46 | $ 0.23 |
Diluted (in dollars per share) | $ 2.48 | $ 1.54 | $ 1.45 | $ 0.23 |
Weighted-average common shares outstanding | ||||
Basic (in shares) | 29,849 | 32,015 | 30,134 | 32,003 |
Diluted (in shares) | 30,028 | 32,272 | 30,327 | 32,256 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 43,965 | $ 7,438 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation, amortization and accretion | 22,134 | 24,453 |
Loss on extinguishment of debt | 445 | 0 |
Bad debt expense | 2,394 | 4,678 |
Deferred tax benefit | (2,029) | (3,449) |
Stock-based compensation | 7,362 | 6,798 |
Employee stock purchase plan | 90 | 68 |
Excess tax benefits from stock compensation | 1,336 | 76 |
(Gain) loss on sale of assets | (94) | 273 |
Impairment of intangible and other long-lived assets | 0 | 393 |
Restructuring charges | 295 | 1,518 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable, net | (158,883) | (152,607) |
Inventories, net | (227,257) | (256,709) |
Prepaid expenses and other current assets | (4,965) | (2,096) |
Income tax receivable | 445 | 16,999 |
Other assets | 1,722 | (667) |
Trade accounts payable | 183,638 | 148,894 |
Accrued expenses | (28,120) | 11,132 |
Income taxes payable | (540) | 5,208 |
Long-term liabilities | (2,675) | 4,810 |
Net cash used in operating activities | (160,737) | (182,790) |
INVESTING ACTIVITIES | ||
Purchases of property and equipment | (14,091) | (10,158) |
Proceeds from sales of property and equipment, net | 68 | 7 |
Net cash used in investing activities | (14,023) | (10,151) |
FINANCING ACTIVITIES | ||
Proceeds from short-term borrowings | 108,001 | 156,751 |
Repayments of short-term borrowings | (37,000) | (24,000) |
Proceeds on issuance of stock for employee stock purchase plan | 474 | 353 |
Cash paid for shares withheld for taxes | (4,589) | (1,871) |
Cash paid for repurchases of common stock | (134,735) | 0 |
Loan origination costs on short-term borrowings | (1,276) | 0 |
Repayment of mortgage principal | (279) | (265) |
Net cash (used in) provided by financing activities | (69,404) | 130,968 |
Effect of foreign currency exchange rates on cash | (3,614) | 795 |
Net change in cash and cash equivalents | (247,778) | (61,178) |
Cash and cash equivalents at beginning of period | 429,970 | 291,764 |
Cash and cash equivalents at end of period | 182,192 | 230,586 |
Cash paid (refunded) during the period | ||
Income taxes, net of refunds and payments of $3,730 and $4,111, as of September 30, 2018 and 2017, respectively | 8,682 | (14,397) |
Proceeds from income tax refunds | 3,730 | |
Income tax payments | 4,111 | |
Interest | 2,272 | 1,607 |
Non-cash investing and financing activities | ||
Accrued for purchases of property and equipment | 2,968 | 2,757 |
Accrued for asset retirement obligations | $ 70 | $ 540 |
General
General | 6 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The Company Deckers Outdoor Corporation is a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high performance activities. As part of its Omni-Channel platform, the Company's proprietary brands are aligned across its Fashion Lifestyle group, including the UGG and Koolaburra brands, and Performance Lifestyle group, including the HOKA, Teva, and Sanuk brands. The Company sells its products through domestic and international retailers, international distributors, and directly to its global consumers 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. A significant part of the Company's business is seasonal, requiring it to build inventory levels during certain quarters in its fiscal year to support higher selling seasons, which contributes to the variation in its results from quarter to quarter. Basis of Presentation The unaudited condensed consolidated financial statements and accompanying notes thereto (the condensed consolidated financial statements ) as of September 30, 2018 and for the three and six months ended September 30, 2018 and 2017 have been prepared in accordance with accounting principles generally accepted in the United States (US GAAP) for interim financial information pursuant to Rule 10-01 of 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 accompanying notes thereto. The condensed consolidated balance sheet as of March 31, 2018 was derived from the Company's audited consolidated financial statements. In the opinion of management, the condensed consolidated financial statements include all adjustments consisting of all normal and recurring entries necessary to fairly present the results of interim periods presented, but 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, 2018 , filed with the SEC on May 30, 2018 ( 2018 Annual Report ). Consolidation. The condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and entities in which it maintains a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. Reclassifications . Certain reclassifications were made for prior periods presented to conform to the current period presentation. Use of Estimates. The preparation of the Company's condensed consolidated financial statements is made 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, trade accounts receivable allowances, sales returns liabilities, stock-based compensation, impairment assessments, depreciation and amortization, income tax liabilities, uncertain tax positions and income taxes receivable, the fair value of financial instruments, and the fair values of assets and liabilities, including goodwill and other intangible assets. These estimates are based on information available as of the date of the condensed consolidated financial statements , and actual results could differ materially from the results assumed or implied based on these estimates. Reportable Operating Segments The Company performs an annual assessment of the appropriateness of its reportable operating segments during the third quarter of its fiscal year. However, due to known circumstances arising during the three months ended June 30, 2018, management performed this assessment during this period. These circumstances included quantitative factors, such as the actual and forecasted sales and operating income of the wholesale operations of the HOKA brand compared to the Company's other reportable operating segments, as well as qualitative factors such as the ongoing growth of, and the Company's increased investment in, the wholesale operations of the HOKA brand. As a result, beginning in the first quarter of fiscal year 2019, the Company added a sixth reportable operating segment to separately report the wholesale operations of the HOKA brand. The wholesale operations of the HOKA brand are no longer presented under the Other brands wholesale reportable operating segment. However, the DTC operations of the HOKA brand continue to be reported under the DTC reportable operating segment. Prior periods presented were reclassified to reflect this change. The Company's six reportable operating segments now include the worldwide wholesale operations of the UGG brand, HOKA brand, Teva brand, Sanuk brand, and Other brands, as well as DTC. Information reported to the Chief Operating Decision Maker (CODM), who is the Company's Principal Executive Officer, is organized into these reportable operating segments and is consistent with how the CODM evaluates performance and allocates resources. Refer to Note 12, "Reportable Operating Segments," for further information on the Company's reportable operating segments. Restructuring Plan In February 2016, the Company announced the implementation of a multi-year restructuring plan which is designed to realign its brands across its Fashion Lifestyle and Performance Lifestyle groups, optimize the Company's retail store fleet, and consolidate its management and operations. In general, the intent of this restructuring plan is to streamline brand operations, reduce overhead costs, create operating efficiencies, and improve collaboration across brands. In connection with the restructuring plan, the Company has closed 43 retail stores as of September 30, 2018 , including conversions to partner retail stores, and consolidated its brand operations and corporate headquarters. As of September 30, 2018 , the Company incurred cumulative restructuring charges by applicable reportable operating segment as follows: Cumulative Restructuring Charges UGG brand wholesale $ 2,238 Sanuk brand wholesale 3,068 Other brands wholesale 2,263 Direct-to-Consumer 23,454 Unallocated overhead costs 24,596 Total $ 55,619 During the six months ended September 30, 2018 and 2017 , the Company incurred restructuring charges of $295 and $1,518 , respectively, which were recorded in selling, general and administrative (SG&A) expenses as unallocated overhead costs in the condensed consolidated statements of comprehensive income . Of the cumulative restructuring charges incurred through September 30, 2018 , $4,549 remained accrued as of that date, with $2,220 recorded in other accrued expenses and $2,329 recorded between deferred rent obligations and other long-term liabilities, respectively, in the condensed consolidated balance sheets . The Company currently does not anticipate incurring material restructuring charges in future periods, although optimization of Company-owned retail stores remains a focus. The remaining accrued liabilities for cumulative restructuring charges incurred to date under the Company's restructuring plan, were as follows: Lease Terminations Other* Total Balance as of March 31, 2018 $ 3,645 $ 1,083 $ 4,728 Additional charges 295 — 295 Paid in cash (474 ) — (474 ) Balance as of September 30, 2018 $ 3,466 $ 1,083 $ 4,549 *Includes costs related to office consolidations and termination of contracts and services. As a result of the implementation of the restructuring plan, the Company expects to realize additional annualized SG&A expense savings by March 31, 2020. Refer to the section entitled "Recent Developments," in Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," within this Quarterly Report for further information. Recent Accounting Pronouncements Recently Adopted. The Financial Accounting Standards Board (FASB) issued Accounting Standard Updates (ASUs) that have been adopted by the Company for its annual and interim reporting periods beginning April 1, 2018. The following is a summary of each standard and the impact to the Company: Standard Description Impact on Adoption ASU No. 2014-09, Revenue from Contracts with Customers (as amended by ASUs 2015-14, 2016-08, 2016-10, 2016-11, 2016-12, 2017-13, and 2017-14) 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 and replaces most existing revenue recognition guidance under US GAAP. The FASB issued additional guidance which clarifies how to apply the implementation guidance related to principal versus agent considerations, how to identify performance obligations, as well as licensing implementation guidance. The Company adopted this ASU (the new revenue standard) using the modified retrospective transition method. Prior to adoption, the Company deferred recognition of revenue for certain wholesale and E-Commerce sales arrangements until the product was delivered. However, the Company elected the practical expedient allowed under the new revenue standard to define shipping and handling costs as a fulfillment service, not a performance obligation. Accordingly, the Company will now recognize revenue for these arrangements upon shipment, rather than delivery. As a result, on adoption of this ASU, the Company recorded a cumulative effect adjustment net after tax increase to opening retained earnings of approximately $1,000 in its condensed consolidated balance sheets. The Company historically recorded a trade accounts receivable allowance for sales returns (allowance for sales returns) related to its wholesale channel sales, and the cost of sales for the product-related inventory was recorded in inventories, net of reserves, in its condensed consolidated balance sheets. As of March 31, 2018, the Company recorded an allowance for sales returns for the wholesale channel of $20,848 and product-related inventory for all channels of $11,251 in its condensed consolidated balance sheets. As of June 30, 2018, and in connection with the adoption of the new revenue standard, the Company reclassified the allowance for sales returns for the wholesale channel of $9,816 to other accrued expenses and the product-related inventory for all channels of $4,819 to other current assets in its condensed consolidated balance sheets. For the DTC channel, the allowance for sales returns was recorded in other accrued expenses, which is consistent with the prior period presented. The comparative condensed consolidated financial statements have not been adjusted and continue to be reported under legacy US GAAP. Refer to Note 2, "Revenue Recognition," for expanded disclosures regarding this change in accounting policy and refer to Note 12, "Reportable Operating Segments," for the Company's disaggregation of revenue by distribution channel and region. Standard Description Impact on Adoption ASU No. 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments Eliminates the diversity in practice related to the classification of certain cash receipts and payments. The Company evaluated its business policies and processes around cash receipts and payments and determined that this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures. ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory Requires that the income tax impact of intra-entity sales and transfers of property, except for inventory, be recognized when the transfer occurs. The Company evaluated its business policies and processes around intra-entity transfers of assets, other than inventory, and determined that this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures. ASU No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting Modification accounting is required to be applied for share-based payment awards immediately before the original award is modified unless the fair value, vesting conditions, and classification of the modified awards are the same as the fair value, vesting conditions and classification of the original award, respectively. The Company evaluated its business policies and processes around share-based payment modifications and determined that this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures. Not Yet Adopted. The FASB and SEC issued the following ASUs and disclosure updates that have not yet been adopted by the Company. The following is a summary of each new ASU or disclosure update, the planned period of adoption and the expected impact to the Company on adoption: Standard Description Planned Period of Adoption Expected Impact on Adoption ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal use software license. Requires companies to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. Q3 FY 2019 The Company has completed an initial assessment of the effect that the adoption of this ASU will have on its condensed consolidated financial statements and related disclosures and does not expect a material impact. The Company will early adopt the requirements of this ASU on a prospective basis. SEC Release No. 33-10532, Disclosure Update and Simplification Amends certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other SEC disclosure requirements, US GAAP, or changes in the information environment. Q3 FY 2019 The Company has completed an initial assessment of the effect that the adoption of this SEC update will have on its condensed consolidated financial statements and related disclosures, and currently expects to include its condensed consolidated statements of stockholders' equity in interim reporting and to simplify its disclosures in interim and annual reporting. The Company will adopt the requirements of this ASU on a prospective basis. ASU No. 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities Seeks to improve the transparency and understandability of information conveyed to financial statement users about an entity's risk management activities and to reduce the complexity of and simplify the application of hedge accounting. This ASU eliminates the requirement to separately measure and report hedge ineffectiveness. Q1 FY 2020 The Company has completed an initial assessment of the effect that the adoption of this SEC update will have on its condensed consolidated financial statements and related disclosures, and will eliminate effectiveness testing for its derivative contracts designated as cash flow hedges; however, this change is not expected to have a material impact. Standard Description Planned Period of Adoption Expected Impact on Adoption ASU No. 2016-02, Leases (as amended by ASUs 2015-14, 2018-01, 2018-10 and 2018-11) Requires a lessee to recognize a lease asset and lease liability in its consolidated balance sheets. A lessee should recognize a right-of-use (ROU) asset representing its right to use the underlying asset for the lease term, and a liability to make lease payments. Q1 FY 2020 The Company has completed an initial assessment of the effect that the adoption of this ASU will have on its condensed consolidated financial statements and related disclosures and expects a material impact. The result is expected to be a material increase in assets and liabilities due to the recognition of an ROU asset and corresponding lease liability, including for lease commitments that are currently classified as operating leases, such as retail stores, showrooms, offices, and distribution facilities. The classification and recognition of lease expense is not expected to materially change from legacy US GAAP. Further, the adoption of this ASU will result in expanded disclosures on existing and new lease commitments. The Company expects to adopt this ASU on a prospective basis and elect the "package of practical expedients" allowed with adoption of this ASU, which provides a number of transition options, including (1) reassessment of prior conclusions about lease identification, classification and initial direct costs is not required; (2) the ability to elect a short-term lease recognition exemption for current and new vehicle, IT and office equipment leases that qualify to be excluded from the recognized ROU asset and related liability; and (3) separation of lease and non-lease components is not required. The Company does not expect a significant change in its lease activities leading up to adoption of this ASU. Further, the Company has selected a software provider, has a project team in place and implementation is currently underway. ASU No. 2017-04, Goodwill and Other: Simplifying the Test for Goodwill Impairment Requires annual and interim goodwill impairment test s be performed by comparing the fair value of a reporting unit with its carrying amount, effectively eliminating step two of the goodwill impairment test under legacy US GAAP. The amount by which the carrying amount exceeds the reporting unit’s fair value should be recognized as an impairment charge. Q1 FY 2021 The Company is evaluating the timing and effect that adoption of this ASU will have on its condensed consolidated financial statements and related disclosures. ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments Replaces the incurred loss impairment methodology in legacy US GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Q1 FY 2021 The Company is evaluating the timing and effect that adoption of this ASU will have on its condensed consolidated financial statements and related disclosures. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Nature of Performance Obligations Revenue is recognized when a performance obligation is completed at a point in time and when the customer has obtained control. Control passes to the customer when they have the ability to direct the use of, and obtain substantially all the remaining benefits from, the goods transferred. The amount of revenue recognized is based on the transaction price, which represents the invoiced amount less known actual amounts or estimates of variable consideration. The Company recognizes revenue and measures the transaction price to be net of taxes, including sales taxes, use taxes, value-added taxes, and some types of excise taxes, collected from customers and remitted to governmental authorities. The Company presents revenue gross of fees and sales commissions. Sales commissions are expensed as incurred and are recorded in SG&A expenses in the condensed consolidated statements of comprehensive income . As a result of the short durations of the Company's customer contracts, which are typically effective for one year or less and have payment terms that are generally 30-60 days, these arrangements are not considered to have a significant financing component. Wholesale and international distributor revenue is recognized when products are shipped, as well as when delivered, depending on the contract terms. E-Commerce revenue is recognized upon shipment and at the point of sale for retail store transactions. Shipping and handling costs paid to third-party shipping companies are recorded as cost of sales in the condensed consolidated statements of comprehensive income . Shipping and handling costs are a fulfillment service and, for certain wholesale and all E-Commerce transactions, revenue is recognized when the customer is deemed to obtain control upon the date of shipment. Variable Consideration Components of variable consideration include estimated discounts, markdowns or chargebacks, and sales returns. Estimates for variable consideration are based on the amounts earned, or estimates to be claimed as an adjustment to sales. Estimated variable consideration is included in the transaction price to the extent that it is probable that a significant reversal of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration provided to the customer may differ from the Company’s estimates. Allowance for Sales Discounts. The Company provides a trade accounts receivable allowance for term discounts for wholesale channel sales, which reflects a discount that customers may take, generally based on meeting certain order, shipment or prompt payment terms. The Company uses the amount of the discounts that are available to be taken against the period-end trade accounts receivable to estimate and record a corresponding reserve for sales discounts. Additions to the allowance are recorded against gross sales in the condensed consolidated statements of comprehensive income . This is consistent with the presentation of such amounts in the prior period. As of September 30, 2018 and March 31, 2018 , the Company did not have a material trade accounts receivable allowance for sales discounts. Allowance for Chargebacks. The Company provides a trade accounts receivable allowance for chargebacks from wholesale customers. When customers pay their invoices, they may take deductions against their invoices that can include chargebacks for price differences, markdowns, short shipments and other reasons. Therefore, the Company records an allowance for known and unknown circumstances based on historical trends related to the timing and amount of chargebacks taken against wholesale channel customer invoices. Additions to the allowance are recorded against gross sales in the condensed consolidated statements of comprehensive income . This is consistent with the presentation of such amounts in the prior period. As of September 30, 2018 , the Company recorded a trade accounts receivable allowance for chargebacks of $6,888 compared to $7,727 as of March 31, 2018 in the condensed consolidated balance sheets . Contract Assets and Liabilities Contract assets represent the Company’s right to consideration subject to conditions other than the passage of time, such as additional performance obligations to be satisfied. Contract liabilities are performance obligations that the Company expects to satisfy or relieve within the next 12 months , advance consideration obtained prior to satisfying a performance obligation, or unconditional obligations to provide goods or services under non-cancellable contracts before the transfer of goods or services to the customer has occurred. Contract assets and liabilities are recorded in other current assets and other accrued expenses, respectively, in the condensed consolidated balance sheets . Sales Returns . Reserves are recorded for anticipated future returns of goods shipped prior to the end of the reporting period. In general, the Company accepts returns for damaged or defective products for up to one year. The Company also has a policy whereby returns are accepted from DTC customers for up to 30 days from point of sale for cash or credit with a receipt. Amounts of these reserves are based on known and actual returns, historical returns, and any recent events that could result in a change from historical return rates. Sales returns are a contract asset for the right to recover product-related inventory and a contract liability for advance consideration obtained prior to satisfying a performance obligation. Changes to the sales return reserve are recorded against gross sales for the contract liability and cost of sales for the contract asset in the condensed consolidated statements of comprehensive income . The following table provides activity during the six months ended September 30, 2018 related to estimated sales returns for the Company’s existing customer contracts for all channels: Contract Asset Contract Liability Balance as of March 31, 2018 $ 11,251 $ 23,156 Change in estimate of sales returns, net of sales recognized 12,277 38,098 Actual returns (14,650 ) (40,538 ) Balance as of September 30, 2018 $ 8,878 $ 20,716 Deferred Revenue . Revenue is deferred for certain wholesale channel transactions as the contract terms indicate control transfers upon product delivery or sell-through. As of September 30, 2018 and March 31, 2018 , the Company did not have a material contract liability for deferred revenue. Gift Cards . The Company defers recognition of revenue from the sale of gift cards until the gift card is redeemed by the customer or the Company determines that the likelihood of redemption is remote. As of September 30, 2018 and March 31, 2018 , the Company's contract liability for gift cards was $3,020 and $3,105 , respectively, and is recorded in other accrued expenses in the condensed consolidated balance sheets . Loyalty Programs . The Company has a customer loyalty program for the UGG brand in its DTC channel where customers earn rewards from qualifying purchases or activities. The Company defers recognition of revenue for unredeemed awards until the following occurs: (1) rewards are redeemed by the customer, (2) points or certificates expire, or (3) an estimate of the expected unused portion of points or certificates is applied, which is based on historical redemption patterns. As of September 30, 2018 and March 31, 2018 , the Company's contract liability for loyalty programs was $3,949 and $5,477 , respectively, and is recorded in other accrued expenses in the condensed consolidated balance sheets . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets The Company's goodwill and other intangible assets are recognized as follows: September 30, 2018 March 31, 2018 Goodwill UGG brand $ 6,101 $ 6,101 HOKA brand 7,889 7,889 Total 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 52,412 53,216 Total gross carrying amount 107,657 108,461 Accumulated amortization (68,755 ) (66,065 ) Net definite-lived intangible assets 38,902 42,396 Total 54,356 57,850 Total $ 68,346 $ 71,840 Amortization Expense Aggregate amortization expense for amortizable intangible assets during the six months ended September 30, 2018 was $3,400 compared to $3,866 during the six months ended September 30, 2017 . A reconciliation of the changes in total other intangible assets in the condensed consolidated balance sheets is as follows: Balance as of March 31, 2018 $ 57,850 Amortization expense (3,400 ) Foreign currency exchange rate fluctuations, net (94 ) Balance as of September 30, 2018 $ 54,356 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair values of the Company's cash and cash equivalents, net trade accounts receivable, 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 their 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 their carrying values. The inputs used to measure 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 as of the dates below are as follows: September 30, 2018 Measured Using Level 1 Level 2 Level 3 Non-qualified deferred compensation asset $ 7,542 $ 7,542 $ — $ — Non-qualified deferred compensation liability (5,378 ) (5,378 ) — — Designated Derivative Contracts asset 6,722 — 6,722 — Non-Designated Derivative Contracts asset 747 — 747 — Non-Designated Derivative Contracts liability (20 ) — (20 ) — March 31, 2018 Measured Using Level 1 Level 2 Level 3 Non-qualified deferred compensation asset $ 7,172 $ 7,172 $ — $ — Non-qualified deferred compensation liability (4,296 ) (4,296 ) — — Designated Derivative Contracts asset 950 — 950 — Designated Derivative Contracts liability (143 ) — (143 ) — Non-Designated Derivative Contracts liability (10 ) — (10 ) — 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. The value of the deferred compensation is recognized based on the fair value of the participants' accounts. A rabbi trust was established for the purpose of supporting the benefits payable under this program, with the assets invested in Company-owned life insurance policies. As of September 30, 2018 , the non-qualified deferred compensation asset of $7,542 was recorded in other assets in the condensed consolidated balance sheets . As of September 30, 2018 , the non-qualified deferred compensation liability of $5,378 was recorded in the condensed consolidated balance sheets , with $1,505 in other accrued expenses and $3,873 in other long-term liabilities. The Level 2 inputs consist of forward spot rates at the end of the applicable reporting period. The fair values of assets and liabilities associated with derivative instruments and hedging activities are recorded in other current assets and other accrued expenses, respectively, in the condensed consolidated balance sheets . Refer to Note 9, "Derivative Instruments," for further information. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Changes in Tax Law On December 22, 2017, H.R.1, also known as the Tax Cuts and Jobs Act (Tax Reform Act) was enacted into law. The Tax Reform Act includes significant changes to United States (US) corporate income tax law, including a permanent reduction in the federal corporate income tax rate from 35.0% to 21.0% , limitations on the deductibility of interest expense and executive compensation, the transition of the US tax regime from a worldwide tax system to a territorial tax system, and provisions aimed at preventing base erosion of the US tax base. Further, on December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (SAB 118) which provides guidance on accounting for the impact of the Tax Reform Act. SAB 118 provides a measurement period, which should not extend beyond one year from the enactment date, during which the Company may complete the accounting for the impacts of the Tax Reform Act under Accounting Standards Codification (ASC) Topic 740 (ASC 740). In accordance with SAB 118, the Company must reflect the income tax effects of the Tax Reform Act in the reporting period in which the accounting under ASC 740 is complete. Provisional Estimates To the extent accounting for certain income tax effects of the Tax Reform Act is incomplete, the Company can determine a reasonable estimate for those effects and record a provisional estimate in the condensed consolidated financial statements in the first reporting period in which a reasonable estimate can be made. In accordance with SAB 118, the Company recorded provisional estimates during the fiscal year ended March 31, 2018, as detailed in the 2018 Annual Report , which represents reasonable estimates of the effects of the Tax Reform Act for which the analysis was not yet complete. As the Company completes its analysis of the effects of the Tax Reform Act, including collecting, preparing and analyzing necessary information regarding foreign earnings and profits, performing and refining calculations and obtaining additional guidance from such standard setting and regulatory bodies as the US Internal Revenue Service, US Treasury Department and FASB, among others, it may record adjustments to the provisional estimates. The Company expects to finalize its provisional estimates at the earlier of the time it files its US federal income tax return for the fiscal year ended March 31, 2018 or the end of the measurement period provided for under SAB 118, which is December 31, 2018. During the six months ended September 30, 2018 , the Company recorded an adjustment to previously recorded provisional estimates for a decrease of $480 to state income tax expense associated with the one-time mandatory deemed repatriation of accumulated foreign earnings. The adjustment was driven by the Company's ongoing analysis and interpretation of state income tax laws resulting from the Tax Reform Act. The Tax Reform Act includes other provisions with effective dates for the Company on and after January 1, 2018. Provisions impacting the fiscal year ending March 31, 2019 include, but are not limited to, limiting deductibility of meals, entertainment, and executive compensation. Based on current facts and circumstances, the Company does not anticipate the impact of these provisions to be material. The Company continues to account for other changes that impact business-related income, exclusions, deductions, and credits that cannot yet be quantified based on existing accounting guidance and the provisions of the tax laws in effect immediately prior to the enactment of the Tax Reform Act. The Company continues to analyze the provisions of the Tax Reform Act to fully assess the anticipated impact on its condensed consolidated financial statements . Unrecognized Tax Benefits During the six months ended September 30, 2018 , the amount of gross unrecognized tax benefits and associated interest and penalties increased by $36 to $12,855 . Management believes it is reasonably possible that the amount of unrecognized tax benefits, as well as associated interest and penalties, may decrease during the next 12 months by approximately $2,488 related to the completion of examinations and other settlements with tax authorities and the expiration of statutes of limitations, of which $1,804 would result in an income tax benefit for the Company. |
Revolving Credit Facilities and
Revolving Credit Facilities and Mortgage Payable | 6 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facilities and Mortgage Payable | Revolving Credit Facilities and Mortgage Payable Primary Credit Facility In September 2018, the Company refinanced in full and terminated its Second Amended and Restated Credit Agreement dated as of November 13, 2014, as amended (Prior Credit Agreement). The refinanced revolving credit facility agreement is with JPMorgan Chase Bank, N.A. (JPMorgan), as the administrative agent, Citibank, N.A., Comerica Bank (Comerica) and HSBC Bank USA, N.A., as co-syndication agents, MUFG Bank, Ltd. and U.S. Bank National Association as co-documentation agents, and the lenders party thereto, with JPMorgan and Comerica acting as joint lead arrangers and joint bookrunners (the Credit Agreement). The Credit Agreement provides for a five -year, $400,000 unsecured revolving credit facility (Primary Credit Facility), contains a $25,000 sublimit for the issuance of letters of credit, and matures on September 20, 2023. In addition to allowing borrowings in US dollars, the Credit Agreement provides a $175,000 sublimit for borrowings in Euros, Sterling, Canadian dollars and any other foreign currency that is subsequently approved by JPMorgan, each lender and each bank issuing letters of credit. Subject to customary conditions and the approval of any lender whose commitment would be increased, the Company has the option to increase the maximum principal amount available under the Credit Agreement by up to an additional $200,000 , resulting in a maximum available principal amount of $600,000 . However, none of the lenders has committed at this time to provide any such increase in the commitments. The obligations of the Company and each other borrower under the Primary Credit Facility are guaranteed by the Company’s existing and future wholly-owned domestic subsidiaries (other than certain immaterial subsidiaries, foreign subsidiaries, foreign subsidiary holding companies and specified excluded subsidiaries). All obligations under the Primary Credit Facility and the foregoing guaranty are unsecured. Amounts borrowed under the Primary Credit Facility may be prepaid at any time. In addition, the Company has the right to permanently reduce or terminate the lenders' commitments provided under the Credit Agreement, subject to customary conditions. Certain of the Company's foreign subsidiaries may also borrow under the Primary Credit Facility, which permits the Company, subject to customary conditions and notice periods, to designate one or more additional subsidiaries organized in foreign jurisdictions to borrow under the Primary Credit Facility, subject to the foreign currency sublimit noted above. The Company is liable for the obligations of each foreign borrower, but the obligations of the foreign borrowers are several (not joint) in nature. Interest Terms. At the Company's election, interest under the Credit Agreement is tied to the adjusted London Interbank Offered Rate (LIBOR) or the Alternate Base Rate (ABR). Revolving loans will initially bear interest at adjusted LIBOR plus 1.25% per annum, in the case of LIBOR borrowings, or at ABR plus 0.25% per annum. ABR is defined as the rate per annum equal to the greater of (1) the prime rate, (2) the federal funds effective rate plus 0.50% , and (3) adjusted LIBOR for a one-month interest period plus 1.00% . The initial compliance certificate is due 45 days from the quarter ending September 30, 2018, and once delivered, interest for borrowings in US dollars will be variable and will fluctuate between adjusted LIBOR plus 1.125% per annum and adjusted LIBOR plus 1.625% per annum (or between ABR plus 0.125% per annum and ABR plus 0.625% per annum), based on the Company's total adjusted leverage ratio. Borrowings made in foreign currencies will have interest based on currency-specific LIBOR or the Canadian deposit offered rate (CDOR) if made in Canadian dollars. As of September 30, 2018 , the US dollar LIBOR and ABR rates, with relevant spreads for ABR and LIBOR borrowings made this quarterly period, were 3.51% and 5.50% , respectively. The Company will initially be required to pay fees of 0.15% per annum on the daily unused amount under the Primary Credit Facility. After the compliance certificate is delivered for the quarter ending September 30, 2018, the fee rate will fluctuate between 0.125% and 0.20% per annum, based upon the Company’s total adjusted leverage ratio. Borrowing Activity. On termination of the Prior Credit Agreement, the Company repaid $27,000 of borrowings made during the six months ended September 30, 2018 and had outstanding letters of credit of $549 , which continued to be upheld under the Credit Agreement. During the six months ended September 30, 2018 , the Company made $62,000 of borrowings and $10,000 of repayments under the Primary Credit Facility. As of September 30, 2018 , the Company had an outstanding balance of $52,000 under the Primary Credit Facility and had outstanding letters of credit of $549 . As of September 30, 2018 , available borrowings under the Primary Credit Facility were $347,451 . Subsequent to September 30, 2018 through November 2, 2018 , the Company borrowed $54,000 and made repayments of $12,000 under the Primary Credit Facility. At November 2, 2018 , the Company had an outstanding balance of $94,000 , outstanding letters of credit of $549 , and available borrowings of $305,451 under the Primary Credit Facility. Deferred Financing Costs. In connection with entering into the Primary Credit Facility, the Company paid certain commitment, arrangement and other fees to JPMorgan, Comerica and other parties to the Primary Credit Facility, and reimbursed certain of the parties’ expenses, which totaled approximately $1,300 , and were recorded in prepaid expenses and other assets. These costs will be amortized on a straight-line basis over the term of the Primary Credit Facility. Deferred financing costs associated with the Prior Credit Agreement had a remaining unamortized balance in prepaid expenses of approximately $400 , and, on the date of refinancing the Primary Credit Facility, were written off to interest expense during the quarterly period ended September 30, 2018. 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, the 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 $43,667 , and to remove the sublimit of CNY 50,000 , or $7,278 , 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 $14,556 . The China Credit Facility is payable on demand and subject to annual review with a defined aggregate period of borrowing of up to 12 months. 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 (PBOC) market rate, which was 4.35% , and is multiplied by a variable liquidity factor. As of September 30, 2018 , the effective interest rate was 4.57% . During the six months ended September 30, 2018 , the Company made borrowings of $18,881 and no repayments under the China Credit Facility. As of September 30, 2018 , the Company had an outstanding balance of $18,881 and available borrowings of $24,786 under the China Credit Facility. Subsequent to September 30, 2018 through November 2, 2018 , the Company made no additional borrowings or repayments, had an outstanding balance of $18,881 , and available borrowings of approximately $24,786 under the China Credit Facility. 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 (as amended, the Japan Credit Facility) that provides for an uncommitted revolving line of credit of up to JPY 5,500,000 , or $48,365 , 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, 2019 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 September 30, 2018 , TIBOR for three months was 0.06% and the effective interest rate was 0.46% . During the six months ended September 30, 2018 , the Company made no borrowings or repayments under the Japan Credit Facility. As of September 30, 2018 , the Company had no outstanding balance under the Japan Credit Facility and available borrowings of $48,365 . Subsequent to September 30, 2018 through November 2, 2018 , the Company made no additional borrowings, had no outstanding balance, and available borrowings of approximately $48,365 under the Japan Credit Facility. Mortgage In July 2014, the Company obtained a mortgage secured by the property on which its corporate headquarters is located for approximately $33,900 . As of September 30, 2018 , the outstanding principal balance under the mortgage was $31,803 , which includes $592 in short-term borrowings and $31,210 in mortgage payable in the condensed consolidated balance sheets . The mortgage has a fixed interest rate of 4.928% . Payments include interest and principal in an amount that amortizes the principal balance over a 30 -year period; however, the loan will mature and requires a balloon payment of approximately $23,700 , in addition to any then-outstanding balance, on July 1, 2029 . Debt Covenants Under the Primary Credit Facility, the Company is subject to usual and customary representations and warranties, and usual and customary affirmative and negative covenants, which include: limitations on liens, additional indebtedness, investments, restricted payments and transactions with affiliates. Financial covenants (as defined in the Credit Agreement), include: • the total adjusted leverage ratio must not be greater than 3:75 to 1:00 ; • the sum of the consolidated annual earnings before interest, taxes, depreciation, and amortization and annual rental expense, divided by the sum of the annual interest expense and the annual rental expense must be greater than 2:25 to 1:00 ; and • no limits on shares repurchases if the total adjusted leverage ratio does not exceed 3:50 to 1:00 . Under the Primary Credit Facility, the Company is also subject to other customary limitations as well as usual and customary events of default, which include: non-payment of principal, interest, fees and other amounts; breach of a representation or warranty; non-performance of covenants and obligations; default on other material debt; bankruptcy or insolvency; material judgments; incurrence of certain material ERISA liabilities; and a change of control of the Company (as defined in the Credit Agreement). Subsequent to the quarter ending September 30, 2018 , and in connection with entering into the Primary Credit Facility, the Company amended the debt covenants associated with its mortgage to mirror the debt covenants defined in the Credit Agreement. As of September 30, 2018 , the Company was in compliance with all debt covenants under the revolving credit facilities and the mortgage, discussed above. Foreign Currency Exchange Rates The amounts disclosed above for the China Credit Facility and Japan Credit Facility have been translated into US dollars using applicable foreign currency exchange spot rates in effect as of September 30, 2018 . As a result, there are differences between the net borrowing and repayment amounts within this footnote disclosure and those same amounts presented in the condensed consolidated statements of cash flows . Any amounts outstanding are recorded in short-term borrowings in the condensed consolidated balance sheets . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies During the six months ended September 30, 2018 , there were no material changes to the obligations reported in the 2018 Annual Report with respect to (1) operating lease commitments, (2) purchase obligations for product or sheepskin, future capital expenditures, commitments under service contracts or requirements to pay promotional expenses, or (3) legal proceedings and claims, other than those that occurred in the ordinary course of business. |
Stock Compensation
Stock Compensation | 6 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation | Stock Compensation The Company uses various types of stock-based compensation under the 2006 Equity Incentive Plan, as amended, and the 2015 Stock Incentive Plan (2015 SIP), including time-based restricted stock units (RSUs), performance-based restricted stock units (PSUs), stock appreciation rights, and non-qualified stock options (NQSOs). Annual grants of RSUs (Annual RSUs) and PSUs (Annual PSUs) are available to key employees and certain executive officers, and long-term incentive plan (LTIP) awards are available to certain officers, including named executive officers. Annual Awards The Company elected to grant Annual RSUs and Annual PSUs under the 2015 SIP, as summarized below: Three Months Ended September 30, 2018 Six Months Ended September 30, 2018 Shares Granted Weighted-average grant date fair value Shares Granted Weighted-average grant date fair value Annual RSUs 42,876 $ 114.42 59,235 $ 115.65 Annual PSUs 17,208 114.42 31,320 116.34 Total 60,084 $ 114.42 90,555 $ 115.89 These grants entitle the recipients to receive shares of the Company's common stock upon vesting. The Annual RSUs are subject to time-based vesting criteria and vest in equal annual installments over three years following the date of grant. The vesting of Annual PSUs is subject to the achievement of pre-established Company performance criteria measured over the fiscal year during which they are granted, and to the extent the performance criteria has been met, vest in equal annual installments over three years thereafter. As of September 30, 2018 , the Company has determined that the achievement of the target performance criteria for the fiscal year ending March 31, 2019 Annual PSUs was probable. The Company recorded aggregate stock compensation expense for the Annual RSUs and Annual PSUs, net of forfeitures, of $2,589 and $2,870 during the three months ended September 30, 2018 and 2017 , respectively, and $4,819 and $4,702 during the six months ended September 30, 2018 and 2017 , respectively, in SG&A expenses in the condensed consolidated statements of comprehensive income . Future unrecognized stock compensation expense for Annual RSUs and Annual PSUs granted as of September 30, 2018 , excluding estimated forfeitures, was $13,842 . Subsequent to September 30, 2018 through November 2, 2018 , the Company granted no Annual RSUs or Annual PSUs. Long-Term Incentive Plan Options During the three and six months ended September 30, 2018 , no LTIP NQSOs were granted. Previously, the Company approved the issuance of LTIP NQSOs under the 2015 SIP. If the recipient provides continuous service, the LTIP NQSOs will vest if the Company achieves the target performance criteria by the date specified in the award. Each vested LTIP NQSO provides the recipient the right to purchase a specified number of shares of the Company's common stock at a fixed exercise price per share based on the closing price of the common stock on the date of grant. The Company measures stock compensation expense for LTIP NQSOs at the date of grant using the Black-Scholes option pricing model. Subsequent to September 30, 2018 through November 2, 2018 , the Company granted no LTIP NQSOs. The Company recorded aggregate stock compensation expense for outstanding LTIP NQSOs, net of forfeitures, of $914 and $924 during the three months ended September 30, 2018 and 2017 , respectively, and $1,904 and $1,500 during the six months ended September 30, 2018 and 2017 , respectively, in SG&A expenses in the condensed consolidated statements of comprehensive income . Future unrecognized stock compensation expense for all LTIP NQSOs granted as of September 30, 2018 , excluding estimated forfeitures, was $3,643 . Long-Term Incentive Plan Awards In September 2018, the Company approved LTIP awards under the 2015 SIP for the issuance of PSUs (2019 LTIP PSUs), which were awarded to certain members of the Company's senior management team, including the Company's named executive officers. The 2019 LTIP PSUs are subject to vesting based on service conditions over three years , as well as the Company meeting certain revenue and pre-tax income performance targets for the fiscal year ending March 31, 2021. To the extent financial performance is achieved above the threshold levels for each of these performance criteria, the number of PSUs that will vest will increase up to a maximum of 200% of the targeted amount for that award. No vesting of any portion of the 2019 LTIP PSUs will occur if the Company fails to achieve revenue and pre-tax income amounts equal to at least 90% of the threshold amounts for these criteria. Following the determination of the Company’s achievement with respect to the revenue and pre-tax income criteria for the measurement period, the vesting of each 2019 LTIP PSUs will be subject to adjustment based on the application of a relative total shareholder return (TSR) modifier. The amount of the adjustment will be determined based on a comparison of the Company's TSR relative to the TSR of a pre-determined set of peer group companies for the 36 -month performance period commencing on April 1, 2018 and ending on the vesting date. A Monte- Carlo simulation model was used to determine the grant date fair value by simulating a range of possible future stock prices for the Company and each member of the peer group over the 36 -month performance period. Under the new program, the Company granted awards at the target performance level of 41,793 2019 LTIP PSUs during the three months ended September 30, 2018 . The average grant date fair value of these 2019 LTIP PSUs was $120.24 per share. Based on the Company's current long-range forecast, the Company determined that the achievement of at least the target performance criteria of these awards was probable as of the grant date, and therefore recorded stock compensation expense of approximately $59 in SG&A expenses during the three months ended September 30, 2018 . Future unrecognized stock compensation expense at the target performance level for 2019 LTIP PSUs granted as of September 30, 2018 , excluding estimated forfeitures, was $4,967 . |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company enters into foreign currency exchange rate forward contracts (derivative contracts), and certain of these contracts are designated as cash flow hedges of forecasted sales (Designated Derivative Contracts) and are subject to foreign currency exchange rate risk. These derivative contracts allow the Company to sell various foreign currencies in exchange for US dollars at specified contract rates, and are used to hedge forecasted sales over specific quarters. The Company may also enter into derivative contracts that are not designated as cash flow hedges (Non-Designated Derivative Contracts), which are generally entered into to offset the anticipated 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 loss within stockholders' equity, and are recognized in earnings in the condensed consolidated statements of comprehensive income during the period which approximates the time the corresponding third-party sales occur. As of September 30, 2018 , the Company had the following derivative contracts recorded at fair value: Designated Derivative Contracts Non-Designated Derivative Contracts Total Notional value $ 86,015 $ 38,582 $ 124,597 Fair value recorded in other current assets 6,722 747 7,469 Fair value recorded in other accrued expenses — (20 ) (20 ) As of September 30, 2018 , the Company's outstanding derivative contracts were held by an aggregate of five counterparties, all with various maturity dates within the next six months. Subsequent to September 30, 2018 through November 2, 2018 , the Company did not enter into any Designated Derivative Contracts or Non-Designated Derivative Contracts. The following table summarizes the effect of Designated Derivative Contracts: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Amount of gain (loss) on derivative instruments (effective portion) recognized in other comprehensive (loss) income $ 588 $ (3,900 ) $ 7,358 $ (9,790 ) Amount of gain (loss) reclassified from accumulated other comprehensive loss into net sales (effective portion) 2,166 (2,283 ) 2,166 (2,283 ) Amount of gain excluded from effectiveness testing recognized in SG&A expenses 634 439 1,480 772 The following table summarizes the effect of Non-Designated Derivative Contracts: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Amount of gain (loss) on derivative instruments recognized in SG&A expenses $ 250 $ (1,065 ) $ 737 $ (2,668 ) The non-performance risk of the Company and the counterparties did not have a material impact on the fair value of its derivative contracts. During the three and six months ended September 30, 2018 , the Designated Derivative Contracts remained effective and that portion of any gain or loss was recognized in AOCL and reclassified into earnings in the same period or periods during which the transaction affected earnings. As of September 30, 2018 , the amount of unrealized gains on derivative contracts recognized in AOCL are expected to be reclassified into income within the next nine months . Refer to Note 10, "Stockholders' Equity," for further information. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stock Repurchase Programs The Company's Board of Directors has authorized various stock repurchase programs pursuant to which the Company has the authority to repurchase its common stock. The Company's stock repurchase programs do not obligate it to acquire any particular amount of common stock and may be suspended at any time at the Company's discretion. Stock repurchase activity under these programs for the six months ended September 30, 2018 is as follows: Average price paid per share $ 117.03 Total number of shares repurchased* 1,151,260 Dollar value of shares repurchased $ 134,735 *All shares were repurchased as part of publicly-announced programs in open-market transactions. Subsequent to September 30, 2018 through November 2, 2018 , the Company repurchased 249,439 shares for $26,660 at an average price paid of $106.88 per share, resulting in repurchases since inception under the Company's stock repurchase programs, in the aggregate, of 5,123,201 shares for $445,788 , at an average price paid of $87.01 per share, leaving the aggregate remaining approved amount at $89,212 . Retained Earnings The following is a reconciliation of the change in the Company's retained earnings: Balance as of March 31, 2018 $ 785,871 Net income 43,965 Repurchase of common stock* (134,724 ) Impact from adoption of ASUs, net of tax 468 Balance as of September 30, 2018 $ 695,580 * As of September 30, 2018 , the remaining amount of 1,151,260 shares, at par value $0.01 per share, included in the total repurchase price of $134,735 , was recorded in common stock in the condensed consolidated balance sheets . Accumulated Other Comprehensive Loss The components within AOCL, net of tax, are as follows: September 30, 2018 March 31, 2018 Unrealized gain on cash flow hedges $ 4,369 $ 243 Cumulative foreign currency translation loss (24,550 ) (13,226 ) Total $ (20,181 ) $ (12,983 ) |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income per Share The reconciliation of basic to diluted weighted-average common shares outstanding is as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Basic 29,849,000 32,015,000 30,134,000 32,003,000 Dilutive effect of stock-based awards and options 179,000 257,000 193,000 253,000 Diluted 30,028,000 32,272,000 30,327,000 32,256,000 Excluded* Annual RSUs and Annual PSUs 29,000 92,000 55,000 132,000 LTIP PSUs 84,000 269,000 84,000 269,000 LTIP NQSOs 377,000 397,000 377,000 397,000 Deferred Non-Employee Director Equity Awards — 3,000 1,000 3,000 *The stock-based awards and options excluded from the dilutive effect are excluded due to one of the following: (1) the shares were anti-dilutive; (2) the necessary conditions had not been satisfied for the shares to be issuable based on the Company's performance; or (3) the Company recorded a net loss during the period presented. The number of shares stated for each of these excluded awards is the maximum number of shares issuable pursuant to these awards. Refer to Note 8, "Stock Compensation," for further information. |
Reportable Operating Segments
Reportable Operating Segments | 6 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments | Reportable Operating Segments The Company performs an annual assessment of the appropriateness of its reportable operating segments during the third quarter of its fiscal year. However, due to known circumstances arising during the three months ended June 30, 2018, management performed this assessment during this period. These circumstances included quantitative factors, such as the actual and forecasted sales and operating income of the wholesale operations of the HOKA brand compared to the Company's other reportable operating segments, as well as qualitative factors such as the ongoing growth of, and the Company's increased investment in, the wholesale operations of the HOKA brand. As a result, beginning in the first quarter of fiscal year 2019, the Company added a sixth reportable operating segment to separately report the wholesale operations of the HOKA brand. The wholesale operations of the HOKA brand are no longer presented under the Other brands wholesale reportable operating segment. However, the DTC operations of the HOKA brand continue to be reported under the DTC reportable operating segment. Prior periods presented were reclassified to reflect this change. The Company's six reportable operating segments now include the worldwide wholesale operations for each of the UGG brand, HOKA brand, Teva brand, Sanuk brand, and Other brands, as well as DTC. The Other brands wholesale reportable operating segment consists of the Koolaburra brand and includes other discontinued brands in the prior periods presented. Information reported to the CODM, who is the Company's Principal Executive Officer, is organized into these reportable operating segments and is consistent with how the CODM evaluates performance and allocates resources. The Company does not consider international operations a separate reportable operating segment, and the CODM reviews such operations in the aggregate with the aforementioned reportable operating segments. 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 income (loss) from operations of the wholesale reportable operating segments. The Company evaluates reportable operating segment performance, primarily based on net sales and income (loss) from operations. The wholesale operations of each brand are managed separately because each requires different marketing, research and development, design, sourcing, and sales strategies. The income (loss) from operations for each of the reportable operating segments include only those costs which are specifically related to each reportable operating segment, which consist primarily of cost of sales, research and development, design, sales and marketing, depreciation, amortization, and directly related costs of employees and their respective expenses. The Company does not allocate corporate overhead costs or non-operating income and expenses to reportable operating segments, which include unallocable overhead costs associated with distribution centers, certain executive and stock compensation, accounting, finance, legal, information technology, human resources, and facilities, among others. Reportable operating segment information, with a reconciliation to the condensed consolidated statements of comprehensive income , is summarized as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Net sales UGG brand wholesale $ 319,589 $ 322,050 $ 400,942 $ 385,323 HOKA brand wholesale 43,561 35,699 83,515 62,237 Teva brand wholesale 15,878 16,494 49,074 48,617 Sanuk brand wholesale 10,933 12,087 31,436 34,307 Other brands wholesale 18,064 4,822 20,701 5,249 Direct-to-Consumer 93,888 91,308 166,839 156,444 Total $ 501,913 $ 482,460 $ 752,507 $ 692,177 Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Income (loss) from operations UGG brand wholesale $ 134,029 $ 117,218 $ 139,898 $ 116,197 HOKA brand wholesale 8,170 7,549 13,898 8,809 Teva brand wholesale 1,847 1,916 9,911 6,859 Sanuk brand wholesale 291 1,228 4,491 5,645 Other brands wholesale 5,287 494 5,637 260 Direct-to-Consumer 2,975 (3,403 ) (4,449 ) (15,505 ) Unallocated overhead costs (62,187 ) (57,647 ) (118,388 ) (111,166 ) Total $ 90,412 $ 67,355 $ 50,998 $ 11,099 Assets allocated to each reportable operating segment include accounts receivable, net of allowances and inventory, net of reserves, fixed assets, goodwill, other intangible assets, and certain other assets that are specifically identifiable for one of the Company's reportable operating segments. Unallocated assets are those 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. Assets allocated to each reportable operating segment, with a reconciliation to the condensed consolidated balance sheets , are as follows: September 30, 2018 March 31, 2018 Assets UGG brand wholesale $ 661,623 $ 229,894 HOKA brand wholesale 71,919 65,943 Teva brand wholesale 46,021 85,980 Sanuk brand wholesale 52,646 79,322 Other brands wholesale 41,666 8,866 Direct-to-Consumer 103,741 112,355 Total assets from reportable operating segments 977,616 582,360 Unallocated cash and cash equivalents 182,192 429,970 Unallocated deferred tax assets 38,878 38,381 Unallocated other corporate assets 225,282 213,668 Total $ 1,423,968 $ 1,264,379 |
Concentration of Business
Concentration of Business | 6 Months Ended |
Sep. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration of Business | Concentration of Business Regions and Customers The Company sells its products throughout the US and to foreign customers, with concentrations as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 International Net Sales $ 190,320 $ 179,783 $ 299,207 $ 268,787 % of Net Sales 37.9 % 37.3 % 39.8 % 38.8 % Net Sales in Foreign Currencies $ 162,587 $ 160,195 $ 227,013 $ 209,427 % of Net Sales 32.4 % 33.2 % 30.2 % 30.3 % For the three and six months ended September 30, 2018 and 2017 , no single foreign country comprised 10.0% or more of the Company's total net sales. The Company's five largest customers accounted for approximately 29.2% and 24.4% of worldwide sales for the three and six months ended September 30, 2018 , respectivel y, compared to 32.1% and 26.8% for the three and six months ended September 30, 2017 , respectively. No single customer comprised 10.0% or more of the Company's net sales during the three and six months ended September 30, 2018 compared to one customer that accounted for 10.0% of the Company's net sales during the three and six months ended September 30, 2017 . At September 30, 2018 , no single customer comprised 10.0% or more of the Company's net trade accounts receivable compared to two customers that made up 21.6% of the Company's net trade accounts receivable at March 31, 2018 . Management performs regular evaluations concerning the ability of the Company's customers to satisfy their obligations to the Company and records an allowance for doubtful accounts based on these evaluations. Suppliers 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 brand products and the majority of sheepskin is purchased from two tanneries in China and is sourced primarily from Australia and the United Kingdom (UK). Beginning in 2013, in an effort to partially reduce its dependency on sheepskin, the Company began using a proprietary raw material, UGGpure, which is a wool woven into a durable backing, in some of its UGG brand products. The Company currently purchases UGGpure from two suppliers. The other production materials used by the Company are sourced primarily from 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 of the Company's control. Furthermore, the price of sheepskin is impacted by numerous other factors, including demand for the Company's products, demand for sheepskin by competitors, changes in consumer preferences and changes in discretionary spending. Long-Lived Assets Long-lived assets, which consist of net property and equipment, was as follows: September 30, 2018 March 31, 2018 US $ 199,192 $ 203,956 All other countries* 16,528 16,206 Total $ 215,720 $ 220,162 *No single foreign country's net property and equipment comprised 10.0% or more of the Company's total net property and equipment as of September 30, 2018 and March 31, 2018 . |
General (Policies)
General (Policies) | 6 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The unaudited condensed consolidated financial statements and accompanying notes thereto (the condensed consolidated financial statements ) as of September 30, 2018 and for the three and six months ended September 30, 2018 and 2017 have been prepared in accordance with accounting principles generally accepted in the United States (US GAAP) for interim financial information pursuant to Rule 10-01 of 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 accompanying notes thereto. The condensed consolidated balance sheet as of March 31, 2018 was derived from the Company's audited consolidated financial statements. In the opinion of management, the condensed consolidated financial statements include all adjustments consisting of all normal and recurring entries necessary to fairly present the results of interim periods presented, but 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, 2018 , filed with the SEC on May 30, 2018 ( 2018 Annual Report ). |
Consolidation | Consolidation. The condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and entities in which it maintains a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications . Certain reclassifications were made for prior periods presented to conform to the current period presentation. |
Use of Estimates | Use of Estimates. The preparation of the Company's condensed consolidated financial statements is made 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, trade accounts receivable allowances, sales returns liabilities, stock-based compensation, impairment assessments, depreciation and amortization, income tax liabilities, uncertain tax positions and income taxes receivable, the fair value of financial instruments, and the fair values of assets and liabilities, including goodwill and other intangible assets. These estimates are based on information available as of the date of the condensed consolidated financial statements , and actual results could differ materially from the results assumed or implied based on these estimates. |
Reportable Operating Segments | Reportable Operating Segments The Company performs an annual assessment of the appropriateness of its reportable operating segments during the third quarter of its fiscal year. However, due to known circumstances arising during the three months ended June 30, 2018, management performed this assessment during this period. These circumstances included quantitative factors, such as the actual and forecasted sales and operating income of the wholesale operations of the HOKA brand compared to the Company's other reportable operating segments, as well as qualitative factors such as the ongoing growth of, and the Company's increased investment in, the wholesale operations of the HOKA brand. As a result, beginning in the first quarter of fiscal year 2019, the Company added a sixth reportable operating segment to separately report the wholesale operations of the HOKA brand. The wholesale operations of the HOKA brand are no longer presented under the Other brands wholesale reportable operating segment. However, the DTC operations of the HOKA brand continue to be reported under the DTC reportable operating segment. Prior periods presented were reclassified to reflect this change. The Company's six reportable operating segments now include the worldwide wholesale operations of the UGG brand, HOKA brand, Teva brand, Sanuk brand, and Other brands, as well as DTC. Information reported to the Chief Operating Decision Maker (CODM), who is the Company's Principal Executive Officer, is organized into these reportable operating segments and is consistent with how the CODM evaluates performance and allocates resources. The Company performs an annual assessment of the appropriateness of its reportable operating segments during the third quarter of its fiscal year. Assets allocated to each reportable operating segment include accounts receivable, net of allowances and inventory, net of reserves, fixed assets, goodwill, other intangible assets, and certain other assets that are specifically identifiable for one of the Company's reportable operating segments. Unallocated assets are those 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. The Company evaluates reportable operating segment performance, primarily based on net sales and income (loss) from operations. The wholesale operations of each brand are managed separately because each requires different marketing, research and development, design, sourcing, and sales strategies. The income (loss) from operations for each of the reportable operating segments include only those costs which are specifically related to each reportable operating segment, which consist primarily of cost of sales, research and development, design, sales and marketing, depreciation, amortization, and directly related costs of employees and their respective expenses. The Company does not allocate corporate overhead costs or non-operating income and expenses to reportable operating segments, which include unallocable overhead costs associated with distribution centers, certain executive and stock compensation, accounting, finance, legal, information technology, human resources, and facilities, among others. |
Restructuring Plan | In February 2016, the Company announced the implementation of a multi-year restructuring plan which is designed to realign its brands across its Fashion Lifestyle and Performance Lifestyle groups, optimize the Company's retail store fleet, and consolidate its management and operations. In general, the intent of this restructuring plan is to streamline brand operations, reduce overhead costs, create operating efficiencies, and improve collaboration across brands. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted. The Financial Accounting Standards Board (FASB) issued Accounting Standard Updates (ASUs) that have been adopted by the Company for its annual and interim reporting periods beginning April 1, 2018. The following is a summary of each standard and the impact to the Company: Standard Description Impact on Adoption ASU No. 2014-09, Revenue from Contracts with Customers (as amended by ASUs 2015-14, 2016-08, 2016-10, 2016-11, 2016-12, 2017-13, and 2017-14) 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 and replaces most existing revenue recognition guidance under US GAAP. The FASB issued additional guidance which clarifies how to apply the implementation guidance related to principal versus agent considerations, how to identify performance obligations, as well as licensing implementation guidance. The Company adopted this ASU (the new revenue standard) using the modified retrospective transition method. Prior to adoption, the Company deferred recognition of revenue for certain wholesale and E-Commerce sales arrangements until the product was delivered. However, the Company elected the practical expedient allowed under the new revenue standard to define shipping and handling costs as a fulfillment service, not a performance obligation. Accordingly, the Company will now recognize revenue for these arrangements upon shipment, rather than delivery. As a result, on adoption of this ASU, the Company recorded a cumulative effect adjustment net after tax increase to opening retained earnings of approximately $1,000 in its condensed consolidated balance sheets. The Company historically recorded a trade accounts receivable allowance for sales returns (allowance for sales returns) related to its wholesale channel sales, and the cost of sales for the product-related inventory was recorded in inventories, net of reserves, in its condensed consolidated balance sheets. As of March 31, 2018, the Company recorded an allowance for sales returns for the wholesale channel of $20,848 and product-related inventory for all channels of $11,251 in its condensed consolidated balance sheets. As of June 30, 2018, and in connection with the adoption of the new revenue standard, the Company reclassified the allowance for sales returns for the wholesale channel of $9,816 to other accrued expenses and the product-related inventory for all channels of $4,819 to other current assets in its condensed consolidated balance sheets. For the DTC channel, the allowance for sales returns was recorded in other accrued expenses, which is consistent with the prior period presented. The comparative condensed consolidated financial statements have not been adjusted and continue to be reported under legacy US GAAP. Refer to Note 2, "Revenue Recognition," for expanded disclosures regarding this change in accounting policy and refer to Note 12, "Reportable Operating Segments," for the Company's disaggregation of revenue by distribution channel and region. Standard Description Impact on Adoption ASU No. 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments Eliminates the diversity in practice related to the classification of certain cash receipts and payments. The Company evaluated its business policies and processes around cash receipts and payments and determined that this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures. ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory Requires that the income tax impact of intra-entity sales and transfers of property, except for inventory, be recognized when the transfer occurs. The Company evaluated its business policies and processes around intra-entity transfers of assets, other than inventory, and determined that this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures. ASU No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting Modification accounting is required to be applied for share-based payment awards immediately before the original award is modified unless the fair value, vesting conditions, and classification of the modified awards are the same as the fair value, vesting conditions and classification of the original award, respectively. The Company evaluated its business policies and processes around share-based payment modifications and determined that this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures. Not Yet Adopted. The FASB and SEC issued the following ASUs and disclosure updates that have not yet been adopted by the Company. The following is a summary of each new ASU or disclosure update, the planned period of adoption and the expected impact to the Company on adoption: Standard Description Planned Period of Adoption Expected Impact on Adoption ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal use software license. Requires companies to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. Q3 FY 2019 The Company has completed an initial assessment of the effect that the adoption of this ASU will have on its condensed consolidated financial statements and related disclosures and does not expect a material impact. The Company will early adopt the requirements of this ASU on a prospective basis. SEC Release No. 33-10532, Disclosure Update and Simplification Amends certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other SEC disclosure requirements, US GAAP, or changes in the information environment. Q3 FY 2019 The Company has completed an initial assessment of the effect that the adoption of this SEC update will have on its condensed consolidated financial statements and related disclosures, and currently expects to include its condensed consolidated statements of stockholders' equity in interim reporting and to simplify its disclosures in interim and annual reporting. The Company will adopt the requirements of this ASU on a prospective basis. ASU No. 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities Seeks to improve the transparency and understandability of information conveyed to financial statement users about an entity's risk management activities and to reduce the complexity of and simplify the application of hedge accounting. This ASU eliminates the requirement to separately measure and report hedge ineffectiveness. Q1 FY 2020 The Company has completed an initial assessment of the effect that the adoption of this SEC update will have on its condensed consolidated financial statements and related disclosures, and will eliminate effectiveness testing for its derivative contracts designated as cash flow hedges; however, this change is not expected to have a material impact. Standard Description Planned Period of Adoption Expected Impact on Adoption ASU No. 2016-02, Leases (as amended by ASUs 2015-14, 2018-01, 2018-10 and 2018-11) Requires a lessee to recognize a lease asset and lease liability in its consolidated balance sheets. A lessee should recognize a right-of-use (ROU) asset representing its right to use the underlying asset for the lease term, and a liability to make lease payments. Q1 FY 2020 The Company has completed an initial assessment of the effect that the adoption of this ASU will have on its condensed consolidated financial statements and related disclosures and expects a material impact. The result is expected to be a material increase in assets and liabilities due to the recognition of an ROU asset and corresponding lease liability, including for lease commitments that are currently classified as operating leases, such as retail stores, showrooms, offices, and distribution facilities. The classification and recognition of lease expense is not expected to materially change from legacy US GAAP. Further, the adoption of this ASU will result in expanded disclosures on existing and new lease commitments. The Company expects to adopt this ASU on a prospective basis and elect the "package of practical expedients" allowed with adoption of this ASU, which provides a number of transition options, including (1) reassessment of prior conclusions about lease identification, classification and initial direct costs is not required; (2) the ability to elect a short-term lease recognition exemption for current and new vehicle, IT and office equipment leases that qualify to be excluded from the recognized ROU asset and related liability; and (3) separation of lease and non-lease components is not required. The Company does not expect a significant change in its lease activities leading up to adoption of this ASU. Further, the Company has selected a software provider, has a project team in place and implementation is currently underway. ASU No. 2017-04, Goodwill and Other: Simplifying the Test for Goodwill Impairment Requires annual and interim goodwill impairment test s be performed by comparing the fair value of a reporting unit with its carrying amount, effectively eliminating step two of the goodwill impairment test under legacy US GAAP. The amount by which the carrying amount exceeds the reporting unit’s fair value should be recognized as an impairment charge. Q1 FY 2021 The Company is evaluating the timing and effect that adoption of this ASU will have on its condensed consolidated financial statements and related disclosures. ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments Replaces the incurred loss impairment methodology in legacy US GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Q1 FY 2021 The Company is evaluating the timing and effect that adoption of this ASU will have on its condensed consolidated financial statements and related disclosures. |
Revenue Recognition | Nature of Performance Obligations Revenue is recognized when a performance obligation is completed at a point in time and when the customer has obtained control. Control passes to the customer when they have the ability to direct the use of, and obtain substantially all the remaining benefits from, the goods transferred. The amount of revenue recognized is based on the transaction price, which represents the invoiced amount less known actual amounts or estimates of variable consideration. The Company recognizes revenue and measures the transaction price to be net of taxes, including sales taxes, use taxes, value-added taxes, and some types of excise taxes, collected from customers and remitted to governmental authorities. The Company presents revenue gross of fees and sales commissions. Sales commissions are expensed as incurred and are recorded in SG&A expenses in the condensed consolidated statements of comprehensive income . As a result of the short durations of the Company's customer contracts, which are typically effective for one year or less and have payment terms that are generally 30-60 days, these arrangements are not considered to have a significant financing component. Wholesale and international distributor revenue is recognized when products are shipped, as well as when delivered, depending on the contract terms. E-Commerce revenue is recognized upon shipment and at the point of sale for retail store transactions. Shipping and handling costs paid to third-party shipping companies are recorded as cost of sales in the condensed consolidated statements of comprehensive income . Shipping and handling costs are a fulfillment service and, for certain wholesale and all E-Commerce transactions, revenue is recognized when the customer is deemed to obtain control upon the date of shipment. Variable Consideration Components of variable consideration include estimated discounts, markdowns or chargebacks, and sales returns. Estimates for variable consideration are based on the amounts earned, or estimates to be claimed as an adjustment to sales. Estimated variable consideration is included in the transaction price to the extent that it is probable that a significant reversal of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration provided to the customer may differ from the Company’s estimates. Allowance for Sales Discounts. The Company provides a trade accounts receivable allowance for term discounts for wholesale channel sales, which reflects a discount that customers may take, generally based on meeting certain order, shipment or prompt payment terms. The Company uses the amount of the discounts that are available to be taken against the period-end trade accounts receivable to estimate and record a corresponding reserve for sales discounts. Additions to the allowance are recorded against gross sales in the condensed consolidated statements of comprehensive income . This is consistent with the presentation of such amounts in the prior period. As of September 30, 2018 and March 31, 2018 , the Company did not have a material trade accounts receivable allowance for sales discounts. Allowance for Chargebacks. The Company provides a trade accounts receivable allowance for chargebacks from wholesale customers. When customers pay their invoices, they may take deductions against their invoices that can include chargebacks for price differences, markdowns, short shipments and other reasons. Therefore, the Company records an allowance for known and unknown circumstances based on historical trends related to the timing and amount of chargebacks taken against wholesale channel customer invoices. Additions to the allowance are recorded against gross sales in the condensed consolidated statements of comprehensive income . This is consistent with the presentation of such amounts in the prior period. As of September 30, 2018 , the Company recorded a trade accounts receivable allowance for chargebacks of $6,888 compared to $7,727 as of March 31, 2018 in the condensed consolidated balance sheets . Contract Assets and Liabilities Contract assets represent the Company’s right to consideration subject to conditions other than the passage of time, such as additional performance obligations to be satisfied. Contract liabilities are performance obligations that the Company expects to satisfy or relieve within the next 12 months , advance consideration obtained prior to satisfying a performance obligation, or unconditional obligations to provide goods or services under non-cancellable contracts before the transfer of goods or services to the customer has occurred. Contract assets and liabilities are recorded in other current assets and other accrued expenses, respectively, in the condensed consolidated balance sheets . Sales Returns . Reserves are recorded for anticipated future returns of goods shipped prior to the end of the reporting period. In general, the Company accepts returns for damaged or defective products for up to one year. The Company also has a policy whereby returns are accepted from DTC customers for up to 30 days from point of sale for cash or credit with a receipt. Amounts of these reserves are based on known and actual returns, historical returns, and any recent events that could result in a change from historical return rates. Sales returns are a contract asset for the right to recover product-related inventory and a contract liability for advance consideration obtained prior to satisfying a performance obligation. Changes to the sales return reserve are recorded against gross sales for the contract liability and cost of sales for the contract asset in the condensed consolidated statements of comprehensive income . The following table provides activity during the six months ended September 30, 2018 related to estimated sales returns for the Company’s existing customer contracts for all channels: Contract Asset Contract Liability Balance as of March 31, 2018 $ 11,251 $ 23,156 Change in estimate of sales returns, net of sales recognized 12,277 38,098 Actual returns (14,650 ) (40,538 ) Balance as of September 30, 2018 $ 8,878 $ 20,716 Deferred Revenue . Revenue is deferred for certain wholesale channel transactions as the contract terms indicate control transfers upon product delivery or sell-through. As of September 30, 2018 and March 31, 2018 , the Company did not have a material contract liability for deferred revenue. Gift Cards . The Company defers recognition of revenue from the sale of gift cards until the gift card is redeemed by the customer or the Company determines that the likelihood of redemption is remote. As of September 30, 2018 and March 31, 2018 , the Company's contract liability for gift cards was $3,020 and $3,105 , respectively, and is recorded in other accrued expenses in the condensed consolidated balance sheets . Loyalty Programs . The Company has a customer loyalty program for the UGG brand in its DTC channel where customers earn rewards from qualifying purchases or activities. The Company defers recognition of revenue for unredeemed awards until the following occurs: (1) rewards are redeemed by the customer, (2) points or certificates expire, or (3) an estimate of the expected unused portion of points or certificates is applied, which is based on historical redemption patterns. As of September 30, 2018 and March 31, 2018 , the Company's contract liability for loyalty programs was $3,949 and $5,477 , respectively, and is recorded in other accrued expenses in the condensed consolidated balance sheets . |
Fair Value Measurement | The fair values of the Company's cash and cash equivalents, net trade accounts receivable, 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 their 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 their carrying values. The inputs used to measure 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. |
Share-based Compensation, Option and Incentive Plans Policy | During the three and six months ended September 30, 2018 , no LTIP NQSOs were granted. Previously, the Company approved the issuance of LTIP NQSOs under the 2015 SIP. If the recipient provides continuous service, the LTIP NQSOs will vest if the Company achieves the target performance criteria by the date specified in the award. Each vested LTIP NQSO provides the recipient the right to purchase a specified number of shares of the Company's common stock at a fixed exercise price per share based on the closing price of the common stock on the date of grant. The Company measures stock compensation expense for LTIP NQSOs at the date of grant using the Black-Scholes option pricing model. In September 2018, the Company approved LTIP awards under the 2015 SIP for the issuance of PSUs (2019 LTIP PSUs), which were awarded to certain members of the Company's senior management team, including the Company's named executive officers. The 2019 LTIP PSUs are subject to vesting based on service conditions over three years , as well as the Company meeting certain revenue and pre-tax income performance targets for the fiscal year ending March 31, 2021. To the extent financial performance is achieved above the threshold levels for each of these performance criteria, the number of PSUs that will vest will increase up to a maximum of 200% of the targeted amount for that award. No vesting of any portion of the 2019 LTIP PSUs will occur if the Company fails to achieve revenue and pre-tax income amounts equal to at least 90% of the threshold amounts for these criteria. Following the determination of the Company’s achievement with respect to the revenue and pre-tax income criteria for the measurement period, the vesting of each 2019 LTIP PSUs will be subject to adjustment based on the application of a relative total shareholder return (TSR) modifier. The amount of the adjustment will be determined based on a comparison of the Company's TSR relative to the TSR of a pre-determined set of peer group companies for the 36 -month performance period commencing on April 1, 2018 and ending on the vesting date. A Monte- Carlo simulation model was used to determine the grant date fair value by simulating a range of possible future stock prices for the Company and each member of the peer group over the 36 -month performance period. These grants entitle the recipients to receive shares of the Company's common stock upon vesting. The Annual RSUs are subject to time-based vesting criteria and vest in equal annual installments over three years following the date of grant. The vesting of Annual PSUs is subject to the achievement of pre-established Company performance criteria measured over the fiscal year during which they are granted, and to the extent the performance criteria has been met, vest in equal annual installments over three years thereafter. |
Deferred Compensation | In 2010, the Company established a non-qualified deferred compensation program that permits a select group of management employees to defer earnings to a future date on a non-qualified basis. The value of the deferred compensation is recognized based on the fair value of the participants' accounts. A rabbi trust was established for the purpose of supporting the benefits payable under this program, with the assets invested in Company-owned life insurance policies. |
Derivatives | The Company enters into foreign currency exchange rate forward contracts (derivative contracts), and certain of these contracts are designated as cash flow hedges of forecasted sales (Designated Derivative Contracts) and are subject to foreign currency exchange rate risk. These derivative contracts allow the Company to sell various foreign currencies in exchange for US dollars at specified contract rates, and are used to hedge forecasted sales over specific quarters. The Company may also enter into derivative contracts that are not designated as cash flow hedges (Non-Designated Derivative Contracts), which are generally entered into to offset the anticipated 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 loss within stockholders' equity, and are recognized in earnings in the condensed consolidated statements of comprehensive income during the period which approximates the time the corresponding third-party sales occur. |
Net Income Per Share | *The stock-based awards and options excluded from the dilutive effect are excluded due to one of the following: (1) the shares were anti-dilutive; (2) the necessary conditions had not been satisfied for the shares to be issuable based on the Company's performance; or (3) the Company recorded a net loss during the period presented. The number of shares stated for each of these excluded awards is the maximum number of shares issuable pursuant to these awards. |
General (Tables)
General (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restructuring and Related Costs | As of September 30, 2018 , the Company incurred cumulative restructuring charges by applicable reportable operating segment as follows: Cumulative Restructuring Charges UGG brand wholesale $ 2,238 Sanuk brand wholesale 3,068 Other brands wholesale 2,263 Direct-to-Consumer 23,454 Unallocated overhead costs 24,596 Total $ 55,619 |
Schedule of Restructuring Reserve by Type of Cost | The remaining accrued liabilities for cumulative restructuring charges incurred to date under the Company's restructuring plan, were as follows: Lease Terminations Other* Total Balance as of March 31, 2018 $ 3,645 $ 1,083 $ 4,728 Additional charges 295 — 295 Paid in cash (474 ) — (474 ) Balance as of September 30, 2018 $ 3,466 $ 1,083 $ 4,549 *Includes costs related to office consolidations and termination of contracts and services. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following is a summary of each standard and the impact to the Company: Standard Description Impact on Adoption ASU No. 2014-09, Revenue from Contracts with Customers (as amended by ASUs 2015-14, 2016-08, 2016-10, 2016-11, 2016-12, 2017-13, and 2017-14) 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 and replaces most existing revenue recognition guidance under US GAAP. The FASB issued additional guidance which clarifies how to apply the implementation guidance related to principal versus agent considerations, how to identify performance obligations, as well as licensing implementation guidance. The Company adopted this ASU (the new revenue standard) using the modified retrospective transition method. Prior to adoption, the Company deferred recognition of revenue for certain wholesale and E-Commerce sales arrangements until the product was delivered. However, the Company elected the practical expedient allowed under the new revenue standard to define shipping and handling costs as a fulfillment service, not a performance obligation. Accordingly, the Company will now recognize revenue for these arrangements upon shipment, rather than delivery. As a result, on adoption of this ASU, the Company recorded a cumulative effect adjustment net after tax increase to opening retained earnings of approximately $1,000 in its condensed consolidated balance sheets. The Company historically recorded a trade accounts receivable allowance for sales returns (allowance for sales returns) related to its wholesale channel sales, and the cost of sales for the product-related inventory was recorded in inventories, net of reserves, in its condensed consolidated balance sheets. As of March 31, 2018, the Company recorded an allowance for sales returns for the wholesale channel of $20,848 and product-related inventory for all channels of $11,251 in its condensed consolidated balance sheets. As of June 30, 2018, and in connection with the adoption of the new revenue standard, the Company reclassified the allowance for sales returns for the wholesale channel of $9,816 to other accrued expenses and the product-related inventory for all channels of $4,819 to other current assets in its condensed consolidated balance sheets. For the DTC channel, the allowance for sales returns was recorded in other accrued expenses, which is consistent with the prior period presented. The comparative condensed consolidated financial statements have not been adjusted and continue to be reported under legacy US GAAP. Refer to Note 2, "Revenue Recognition," for expanded disclosures regarding this change in accounting policy and refer to Note 12, "Reportable Operating Segments," for the Company's disaggregation of revenue by distribution channel and region. Standard Description Impact on Adoption ASU No. 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments Eliminates the diversity in practice related to the classification of certain cash receipts and payments. The Company evaluated its business policies and processes around cash receipts and payments and determined that this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures. ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory Requires that the income tax impact of intra-entity sales and transfers of property, except for inventory, be recognized when the transfer occurs. The Company evaluated its business policies and processes around intra-entity transfers of assets, other than inventory, and determined that this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures. ASU No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting Modification accounting is required to be applied for share-based payment awards immediately before the original award is modified unless the fair value, vesting conditions, and classification of the modified awards are the same as the fair value, vesting conditions and classification of the original award, respectively. The Company evaluated its business policies and processes around share-based payment modifications and determined that this ASU did not have a material impact on its condensed consolidated financial statements and related disclosures. Not Yet Adopted. The FASB and SEC issued the following ASUs and disclosure updates that have not yet been adopted by the Company. The following is a summary of each new ASU or disclosure update, the planned period of adoption and the expected impact to the Company on adoption: Standard Description Planned Period of Adoption Expected Impact on Adoption ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal use software license. Requires companies to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. Q3 FY 2019 The Company has completed an initial assessment of the effect that the adoption of this ASU will have on its condensed consolidated financial statements and related disclosures and does not expect a material impact. The Company will early adopt the requirements of this ASU on a prospective basis. SEC Release No. 33-10532, Disclosure Update and Simplification Amends certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other SEC disclosure requirements, US GAAP, or changes in the information environment. Q3 FY 2019 The Company has completed an initial assessment of the effect that the adoption of this SEC update will have on its condensed consolidated financial statements and related disclosures, and currently expects to include its condensed consolidated statements of stockholders' equity in interim reporting and to simplify its disclosures in interim and annual reporting. The Company will adopt the requirements of this ASU on a prospective basis. ASU No. 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities Seeks to improve the transparency and understandability of information conveyed to financial statement users about an entity's risk management activities and to reduce the complexity of and simplify the application of hedge accounting. This ASU eliminates the requirement to separately measure and report hedge ineffectiveness. Q1 FY 2020 The Company has completed an initial assessment of the effect that the adoption of this SEC update will have on its condensed consolidated financial statements and related disclosures, and will eliminate effectiveness testing for its derivative contracts designated as cash flow hedges; however, this change is not expected to have a material impact. Standard Description Planned Period of Adoption Expected Impact on Adoption ASU No. 2016-02, Leases (as amended by ASUs 2015-14, 2018-01, 2018-10 and 2018-11) Requires a lessee to recognize a lease asset and lease liability in its consolidated balance sheets. A lessee should recognize a right-of-use (ROU) asset representing its right to use the underlying asset for the lease term, and a liability to make lease payments. Q1 FY 2020 The Company has completed an initial assessment of the effect that the adoption of this ASU will have on its condensed consolidated financial statements and related disclosures and expects a material impact. The result is expected to be a material increase in assets and liabilities due to the recognition of an ROU asset and corresponding lease liability, including for lease commitments that are currently classified as operating leases, such as retail stores, showrooms, offices, and distribution facilities. The classification and recognition of lease expense is not expected to materially change from legacy US GAAP. Further, the adoption of this ASU will result in expanded disclosures on existing and new lease commitments. The Company expects to adopt this ASU on a prospective basis and elect the "package of practical expedients" allowed with adoption of this ASU, which provides a number of transition options, including (1) reassessment of prior conclusions about lease identification, classification and initial direct costs is not required; (2) the ability to elect a short-term lease recognition exemption for current and new vehicle, IT and office equipment leases that qualify to be excluded from the recognized ROU asset and related liability; and (3) separation of lease and non-lease components is not required. The Company does not expect a significant change in its lease activities leading up to adoption of this ASU. Further, the Company has selected a software provider, has a project team in place and implementation is currently underway. ASU No. 2017-04, Goodwill and Other: Simplifying the Test for Goodwill Impairment Requires annual and interim goodwill impairment test s be performed by comparing the fair value of a reporting unit with its carrying amount, effectively eliminating step two of the goodwill impairment test under legacy US GAAP. The amount by which the carrying amount exceeds the reporting unit’s fair value should be recognized as an impairment charge. Q1 FY 2021 The Company is evaluating the timing and effect that adoption of this ASU will have on its condensed consolidated financial statements and related disclosures. ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments Replaces the incurred loss impairment methodology in legacy US GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Q1 FY 2021 The Company is evaluating the timing and effect that adoption of this ASU will have on its condensed consolidated financial statements and related disclosures. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | The following table provides activity during the six months ended September 30, 2018 related to estimated sales returns for the Company’s existing customer contracts for all channels: Contract Asset Contract Liability Balance as of March 31, 2018 $ 11,251 $ 23,156 Change in estimate of sales returns, net of sales recognized 12,277 38,098 Actual returns (14,650 ) (40,538 ) Balance as of September 30, 2018 $ 8,878 $ 20,716 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and other intangible assets | The Company's goodwill and other intangible assets are recognized as follows: September 30, 2018 March 31, 2018 Goodwill UGG brand $ 6,101 $ 6,101 HOKA brand 7,889 7,889 Total 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 52,412 53,216 Total gross carrying amount 107,657 108,461 Accumulated amortization (68,755 ) (66,065 ) Net definite-lived intangible assets 38,902 42,396 Total 54,356 57,850 Total $ 68,346 $ 71,840 |
Schedule of finite-lived intangible assets | A reconciliation of the changes in total other intangible assets in the condensed consolidated balance sheets is as follows: Balance as of March 31, 2018 $ 57,850 Amortization expense (3,400 ) Foreign currency exchange rate fluctuations, net (94 ) Balance as of September 30, 2018 $ 54,356 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
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 as of the dates below are as follows: September 30, 2018 Measured Using Level 1 Level 2 Level 3 Non-qualified deferred compensation asset $ 7,542 $ 7,542 $ — $ — Non-qualified deferred compensation liability (5,378 ) (5,378 ) — — Designated Derivative Contracts asset 6,722 — 6,722 — Non-Designated Derivative Contracts asset 747 — 747 — Non-Designated Derivative Contracts liability (20 ) — (20 ) — March 31, 2018 Measured Using Level 1 Level 2 Level 3 Non-qualified deferred compensation asset $ 7,172 $ 7,172 $ — $ — Non-qualified deferred compensation liability (4,296 ) (4,296 ) — — Designated Derivative Contracts asset 950 — 950 — Designated Derivative Contracts liability (143 ) — (143 ) — Non-Designated Derivative Contracts liability (10 ) — (10 ) — |
Stock Compensation (Tables)
Stock Compensation (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Stock Units Activity | The Company elected to grant Annual RSUs and Annual PSUs under the 2015 SIP, as summarized below: Three Months Ended September 30, 2018 Six Months Ended September 30, 2018 Shares Granted Weighted-average grant date fair value Shares Granted Weighted-average grant date fair value Annual RSUs 42,876 $ 114.42 59,235 $ 115.65 Annual PSUs 17,208 114.42 31,320 116.34 Total 60,084 $ 114.42 90,555 $ 115.89 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | As of September 30, 2018 , the Company had the following derivative contracts recorded at fair value: Designated Derivative Contracts Non-Designated Derivative Contracts Total Notional value $ 86,015 $ 38,582 $ 124,597 Fair value recorded in other current assets 6,722 747 7,469 Fair value recorded in other accrued expenses — (20 ) (20 ) |
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 September 30, Six Months Ended September 30, 2018 2017 2018 2017 Amount of gain (loss) on derivative instruments (effective portion) recognized in other comprehensive (loss) income $ 588 $ (3,900 ) $ 7,358 $ (9,790 ) Amount of gain (loss) reclassified from accumulated other comprehensive loss into net sales (effective portion) 2,166 (2,283 ) 2,166 (2,283 ) Amount of gain excluded from effectiveness testing recognized in SG&A expenses 634 439 1,480 772 |
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 September 30, Six Months Ended September 30, 2018 2017 2018 2017 Amount of gain (loss) on derivative instruments recognized in SG&A expenses $ 250 $ (1,065 ) $ 737 $ (2,668 ) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock Repurchases | Stock repurchase activity under these programs for the six months ended September 30, 2018 is as follows: Average price paid per share $ 117.03 Total number of shares repurchased* 1,151,260 Dollar value of shares repurchased $ 134,735 *All shares were repurchased as part of publicly-announced programs in open-market transactions. |
Schedule of Retained Earnings | The following is a reconciliation of the change in the Company's retained earnings: Balance as of March 31, 2018 $ 785,871 Net income 43,965 Repurchase of common stock* (134,724 ) Impact from adoption of ASUs, net of tax 468 Balance as of September 30, 2018 $ 695,580 |
Components of accumulated other comprehensive income | The components within AOCL, net of tax, are as follows: September 30, 2018 March 31, 2018 Unrealized gain on cash flow hedges $ 4,369 $ 243 Cumulative foreign currency translation loss (24,550 ) (13,226 ) Total $ (20,181 ) $ (12,983 ) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
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 September 30, Six Months Ended September 30, 2018 2017 2018 2017 Basic 29,849,000 32,015,000 30,134,000 32,003,000 Dilutive effect of stock-based awards and options 179,000 257,000 193,000 253,000 Diluted 30,028,000 32,272,000 30,327,000 32,256,000 Excluded* Annual RSUs and Annual PSUs 29,000 92,000 55,000 132,000 LTIP PSUs 84,000 269,000 84,000 269,000 LTIP NQSOs 377,000 397,000 377,000 397,000 Deferred Non-Employee Director Equity Awards — 3,000 1,000 3,000 *The stock-based awards and options excluded from the dilutive effect are excluded due to one of the following: (1) the shares were anti-dilutive; (2) the necessary conditions had not been satisfied for the shares to be issuable based on the Company's performance; or (3) the Company recorded a net loss during the period presented. The number of shares stated for each of these excluded awards is the maximum number of shares issuable pursuant to these awards. Refer to Note 8, "Stock Compensation," for further information. |
Reportable Operating Segments (
Reportable Operating Segments (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of business segments information | Reportable operating segment information, with a reconciliation to the condensed consolidated statements of comprehensive income , is summarized as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Net sales UGG brand wholesale $ 319,589 $ 322,050 $ 400,942 $ 385,323 HOKA brand wholesale 43,561 35,699 83,515 62,237 Teva brand wholesale 15,878 16,494 49,074 48,617 Sanuk brand wholesale 10,933 12,087 31,436 34,307 Other brands wholesale 18,064 4,822 20,701 5,249 Direct-to-Consumer 93,888 91,308 166,839 156,444 Total $ 501,913 $ 482,460 $ 752,507 $ 692,177 Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Income (loss) from operations UGG brand wholesale $ 134,029 $ 117,218 $ 139,898 $ 116,197 HOKA brand wholesale 8,170 7,549 13,898 8,809 Teva brand wholesale 1,847 1,916 9,911 6,859 Sanuk brand wholesale 291 1,228 4,491 5,645 Other brands wholesale 5,287 494 5,637 260 Direct-to-Consumer 2,975 (3,403 ) (4,449 ) (15,505 ) Unallocated overhead costs (62,187 ) (57,647 ) (118,388 ) (111,166 ) Total $ 90,412 $ 67,355 $ 50,998 $ 11,099 Assets allocated to each reportable operating segment, with a reconciliation to the condensed consolidated balance sheets , are as follows: September 30, 2018 March 31, 2018 Assets UGG brand wholesale $ 661,623 $ 229,894 HOKA brand wholesale 71,919 65,943 Teva brand wholesale 46,021 85,980 Sanuk brand wholesale 52,646 79,322 Other brands wholesale 41,666 8,866 Direct-to-Consumer 103,741 112,355 Total assets from reportable operating segments 977,616 582,360 Unallocated cash and cash equivalents 182,192 429,970 Unallocated deferred tax assets 38,878 38,381 Unallocated other corporate assets 225,282 213,668 Total $ 1,423,968 $ 1,264,379 |
Concentration of Business (Tabl
Concentration of Business (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Schedules of Revenue Concentration of Risk | The Company sells its products throughout the US and to foreign customers, with concentrations as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 International Net Sales $ 190,320 $ 179,783 $ 299,207 $ 268,787 % of Net Sales 37.9 % 37.3 % 39.8 % 38.8 % Net Sales in Foreign Currencies $ 162,587 $ 160,195 $ 227,013 $ 209,427 % of Net Sales 32.4 % 33.2 % 30.2 % 30.3 % |
Schedule of long-lived assets, which consist of property and equipment, by major country | Long-lived assets, which consist of net property and equipment, was as follows: September 30, 2018 March 31, 2018 US $ 199,192 $ 203,956 All other countries* 16,528 16,206 Total $ 215,720 $ 220,162 *No single foreign country's net property and equipment comprised 10.0% or more of the Company's total net property and equipment as of September 30, 2018 and March 31, 2018 . |
General - Narrative (Details)
General - Narrative (Details) | 6 Months Ended | 32 Months Ended | ||
Sep. 30, 2018USD ($)storesegment | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)store | Mar. 31, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Number of reportable segments | segment | 6 | |||
Restructuring charges | $ 295,000 | $ 1,518,000 | ||
Fiscal Year 2016 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 295,000 | $ 55,619,000 | ||
Restructuring reserve | $ 4,549,000 | $ 4,549,000 | $ 4,728,000 | |
Facility Closing | Fiscal Year 2016 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of stores closed | store | 43 | 43 | ||
Selling, General and Administrative Expenses | Fiscal Year 2016 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 295,000 | $ 1,518,000 | ||
Short Term Liabilities | Fiscal Year 2016 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | 2,220,000 | $ 2,220,000 | ||
Long Term Liabilities | Fiscal Year 2016 Restructuring Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 2,329,000 | $ 2,329,000 |
General - Schedule of Restruct
General - Schedule of Restructuring by Segment (Details) - USD ($) $ in Thousands | 6 Months Ended | 32 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 295 | $ 1,518 | |
Fiscal Year 2016 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 295 | $ 55,619 | |
Reportable segments | UGG brand wholesale | Fiscal Year 2016 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2,238 | ||
Reportable segments | Sanuk brand wholesale | Fiscal Year 2016 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 3,068 | ||
Reportable segments | Other brands wholesale | Fiscal Year 2016 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2,263 | ||
Reportable segments | Direct-to-Consumer | Fiscal Year 2016 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 23,454 | ||
Unallocated overhead costs | Fiscal Year 2016 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 24,596 |
General - Schedule of Restru_2
General - Schedule of Restructuring Costs (Details) - USD ($) $ in Thousands | 6 Months Ended | 32 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | $ 295 | $ 1,518 | |
Fiscal Year 2016 Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance restructuring reserve | 4,728 | ||
Restructuring charges | 295 | $ 55,619 | |
Paid in cash | (474) | ||
Ending balance restructuring reserve | 4,549 | 4,549 | |
Lease Terminations | Fiscal Year 2016 Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance restructuring reserve | 3,645 | ||
Restructuring charges | 295 | ||
Paid in cash | (474) | ||
Ending balance restructuring reserve | 3,466 | 3,466 | |
Other | Fiscal Year 2016 Restructuring Plan | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance restructuring reserve | 1,083 | ||
Restructuring charges | 0 | ||
Paid in cash | 0 | ||
Ending balance restructuring reserve | $ 1,083 | $ 1,083 |
General - New Accounting Pronou
General - New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 695,580 | $ 785,871 | |
Inventory reserves | 11,251 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 1,000 | ||
Other Current Assets | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Inventory portion of the sales return reserve | 4,819 | ||
Wholesale | Other Accrued Expenses | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Allowance for sales returns included in other accrued expenses | $ 9,816 | ||
Sales Returns and Allowances | Wholesale | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total Allowances | $ 20,848 |
Revenue Recognition - Narrativ
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2018 | Mar. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Contract length | As a result of the short durations of the Company's customer contracts, which are typically effective for one year or less and have payment terms that are generally 30-60 days, these arrangements are not considered to have a significant financing component. | |
Sales and allowances period | 30 days | |
Contract liability | $ 20,716 | $ 23,156 |
Allowance for sales discounts | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Total Allowances | 0 | 0 |
Allowance for chargebacks | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Total Allowances | 6,888 | 7,727 |
Deferred Shipment Revenue | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Contract liability | 0 | 0 |
Gift Cards | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Contract liability | 3,020 | 3,105 |
Loyalty Programs | ||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Contract liability | $ 3,949 | $ 5,477 |
Revenue Recognition - Contract
Revenue Recognition - Contract Liability Timing of Satisfaction (Details) | Sep. 30, 2018 |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 12 months |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2018 | Mar. 31, 2018 | |
Contract Asset | ||
Balance as of March 31, 2018 | $ 8,878 | $ 11,251 |
Change in estimate of sales returns, net of sales recognized | 12,277 | |
Actual returns | (14,650) | |
Balance as of September 30, 2018 | 8,878 | |
Contract Liability | ||
Balance as of March 31, 2018 | 20,716 | $ 23,156 |
Change in estimate of sales returns, net of sales recognized | 38,098 | |
Actual returns | (40,538) | |
Balance as of September 30, 2018 | $ 20,716 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Indefinite-lived intangible assets | ||
Goodwill | $ 13,990 | $ 13,990 |
Trademarks | 15,454 | 15,454 |
Definite-lived intangible assets | ||
Total gross carrying amount | 107,657 | 108,461 |
Accumulated amortization | (68,755) | (66,065) |
Net definite-lived intangible assets | 38,902 | 42,396 |
Total | 54,356 | 57,850 |
Total | 68,346 | 71,840 |
UGG brand wholesale | ||
Indefinite-lived intangible assets | ||
Goodwill | 6,101 | 6,101 |
HOKA brand 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 | $ 52,412 | $ 53,216 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 3,400 | $ 3,866 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets Schedule of Changes in Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Intangible assets, net, beginning balance | $ 57,850 | |
Amortization expense | (3,400) | $ (3,866) |
Changes in foreign currency exchange rates | (94) | |
Intangible assets, net, ending balance | $ 54,356 |
Fair Value Measurements Schedul
Fair Value Measurements Schedule of Fair Value Assets and Liabilities (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation asset | $ 7,172 | |
Non-qualified deferred compensation liability | $ (5,378) | (4,296) |
Derivative contracts asset | 7,469 | |
Derivative contracts liability | (20) | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation asset | 7,542 | 7,172 |
Non-qualified deferred compensation liability | (5,378) | (4,296) |
Designated Derivative Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative contracts asset | 6,722 | 950 |
Designated Derivative Contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative contracts asset | 6,722 | 950 |
Non-Designated Derivative Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative contracts asset | 747 | |
Derivative contracts liability | (20) | (10) |
Non-Designated Derivative Contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative contracts asset | 747 | |
Derivative contracts liability | (20) | (10) |
Derivatives designated as cash flow hedges | Designated Derivative Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative contracts liability | $ 0 | (143) |
Derivatives designated as cash flow hedges | Designated Derivative Contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative contracts liability | $ (143) |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation asset | $ 7,172 | |
Non-qualified deferred compensation liability | $ (5,378) | $ (4,296) |
Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-qualified deferred compensation asset | 7,542 | |
Other Accrued Liabilities, Current | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued deferred compensation liability | 1,505 | |
Other Long Term Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other long term liabilities | $ 3,873 |
Income Taxes - Narrative (Deta
Income Taxes - Narrative (Details) $ in Thousands | 6 Months Ended |
Sep. 30, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Adjustments to transition tax for accumulated foreign earnings | $ 480 |
Decrease in unrecognized tax benefits | 36 |
Unrecognized tax benefits and penalties and interest | 12,855 |
(Decrease) in unrecognized tax benefit expected to settle in next twelve months | (2,488) |
Unrecognized tax benefits that would reduce income tax expense | $ 1,804 |
Revolving Credit Facilities a_2
Revolving Credit Facilities and Mortgage Payable - Primary Credit Facility (Details) - Line of Credit | 1 Months Ended | 6 Months Ended | |
Nov. 02, 2018USD ($) | Sep. 30, 2018USD ($)day | Sep. 30, 2018USD ($) | |
Primary Credit Facility | |||
Notes Payable and Long-Term Debt | |||
Additional borrowing capacity | $ 200,000,000 | $ 200,000,000 | |
Maximum borrowing capacity | $ 600,000,000 | $ 600,000,000 | |
Primary Credit Facility | LIBOR based interest rates | |||
Notes Payable and Long-Term Debt | |||
Interest rate, effective percentage | 3.51% | 3.51% | |
Primary Credit Facility | Alternate Base Rate based interest rates | |||
Notes Payable and Long-Term Debt | |||
Interest rate, effective percentage | 5.50% | 5.50% | |
Primary Credit Facility | Revolving Credit Facility | |||
Notes Payable and Long-Term Debt | |||
Term of agreement (in years) | 5 years | ||
Current borrowing capacity | $ 400,000,000 | $ 400,000,000 | |
Number of days to deliver compliance certificate | day | 45 | ||
Fee on unused amount of revolving credit facility (as a percentage) | 0.15% | ||
Repayments of lines of credit | 10,000,000 | ||
Outstanding letters of credit | $ 549,000 | 549,000 | |
Proceeds from lines of credit | 62,000,000 | ||
Long-term line of credit | 52,000,000 | 52,000,000 | |
Amount available under the credit agreement | $ 347,451,000 | 347,451,000 | |
Primary Credit Facility | Revolving Credit Facility | Subsequent Event | |||
Notes Payable and Long-Term Debt | |||
Repayments of lines of credit | $ 12,000,000 | ||
Outstanding letters of credit | 549,000 | ||
Proceeds from lines of credit | 54,000,000 | ||
Long-term line of credit | 94,000,000 | ||
Amount available under the credit agreement | $ 305,451,000 | ||
Primary Credit Facility | Revolving Credit Facility | LIBOR based interest rates | |||
Notes Payable and Long-Term Debt | |||
Spread on variable interest rate (as a percent) | 1.25% | ||
Primary Credit Facility | Revolving Credit Facility | Alternate Base Rate based interest rates | |||
Notes Payable and Long-Term Debt | |||
Spread on variable interest rate (as a percent) | 0.25% | ||
Primary Credit Facility | Revolving Credit Facility | Federal Funds Effective Swap Rate | |||
Notes Payable and Long-Term Debt | |||
Spread on variable interest rate (as a percent) | 0.50% | ||
Primary Credit Facility | Revolving Credit Facility | One Month Adjusted LIBOR Rate | |||
Notes Payable and Long-Term Debt | |||
Spread on variable interest rate (as a percent) | 1.00% | ||
Prior Credit Facility | Revolving Credit Facility | |||
Notes Payable and Long-Term Debt | |||
Repayments of lines of credit | 27,000,000 | ||
Outstanding letters of credit | $ 549,000 | 549,000 | |
Deferred financing costs | $ 400,000 | 400,000 | |
Minimum | Primary Credit Facility | Revolving Credit Facility | |||
Notes Payable and Long-Term Debt | |||
Fee on unused amount of revolving credit facility (as a percentage) | 0.125% | ||
Minimum | Primary Credit Facility | Revolving Credit Facility | LIBOR based interest rates | |||
Notes Payable and Long-Term Debt | |||
Spread on variable interest rate (as a percent) | 1.125% | ||
Minimum | Primary Credit Facility | Revolving Credit Facility | Alternate Base Rate based interest rates | |||
Notes Payable and Long-Term Debt | |||
Spread on variable interest rate (as a percent) | 0.125% | ||
Maximum | Primary Credit Facility | |||
Notes Payable and Long-Term Debt | |||
Capacity available for letters of credit | $ 25,000,000 | 25,000,000 | |
Sublimit available for borrowings in foreign currency | $ 175,000,000 | 175,000,000 | |
Maximum | Primary Credit Facility | Revolving Credit Facility | |||
Notes Payable and Long-Term Debt | |||
Fee on unused amount of revolving credit facility (as a percentage) | 0.20% | ||
Maximum | Primary Credit Facility | Revolving Credit Facility | LIBOR based interest rates | |||
Notes Payable and Long-Term Debt | |||
Spread on variable interest rate (as a percent) | 1.625% | ||
Maximum | Primary Credit Facility | Revolving Credit Facility | Alternate Base Rate based interest rates | |||
Notes Payable and Long-Term Debt | |||
Spread on variable interest rate (as a percent) | 0.625% | ||
Prepaid Expenses and Other Current Assets | Primary Credit Facility | Revolving Credit Facility | |||
Notes Payable and Long-Term Debt | |||
Deferred financing costs | $ 1,300,000 | $ 1,300,000 |
Revolving Credit Facilities a_3
Revolving Credit Facilities and Mortgage Payable - China Line of Credit (Details) | 1 Months Ended | 6 Months Ended | ||||
Nov. 02, 2018USD ($) | Aug. 31, 2013USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (ÂĄ) | Aug. 31, 2013CNY (ÂĄ) | |
China Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Guarantor obligation | 108.50% | |||||
Line of Credit | Subsequent Event | Second Amended China Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Amount available under the credit agreement | $ 24,786,000 | |||||
Line of Credit | Subsequent Event | Second Amended China Credit Facility, Overdraft Sublimit | ||||||
Debt Instrument [Line Items] | ||||||
Long-term line of credit | 18,881,000 | |||||
Line of Credit | Revolving Credit Facility | Second Amended China Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 43,667,000 | ÂĄ 300,000,000 | ||||
Line of credit facility sublimit | $ 7,278,000 | ÂĄ 50,000,000 | ||||
Interest rate, effective percentage | 4.57% | |||||
Proceeds from lines of credit | $ 18,881,000 | |||||
Repayments of lines of credit | 0 | |||||
Long-term line of credit | 18,881,000 | |||||
Amount available under the credit agreement | $ 24,786,000 | |||||
Line of Credit | Revolving Credit Facility | Second Amended China Credit Facility, Overdraft Sublimit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility overdraft facility sublimit | $ 14,556,000 | ÂĄ 100,000,000 | ||||
Line of Credit | Revolving Credit Facility | Subsequent Event | Second Amended China Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from lines of credit | 0 | |||||
Repayments of lines of credit | $ 0 | |||||
People's Bank Of China | Line of Credit | Revolving Credit Facility | Second Amended China Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate multiplier for variable rate | 4.35% | |||||
Maximum | Second Amended China Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument term | 12 months |
Revolving Credit Facilities a_4
Revolving Credit Facilities and Mortgage Payable - Japan Line of Credit (Details) - Japan Credit Facility | 1 Months Ended | 6 Months Ended | ||
Nov. 02, 2018USD ($) | Mar. 31, 2016JPY (ÂĄ) | Sep. 30, 2018USD ($) | Mar. 31, 2016USD ($) | |
Notes Payable and Long-Term Debt | ||||
Maximum borrowing capacity | ÂĄ 5,500,000,000 | $ 48,365,000 | ||
Maximum | ||||
Notes Payable and Long-Term Debt | ||||
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 | ||||
Proceeds from lines of credit | $ 0 | |||
Repayments of lines of credit | 0 | |||
Current borrowing capacity | 0 | |||
Amount available under the credit agreement | $ 48,365,000 | |||
Subsequent Event | Line of Credit | ||||
Notes Payable and Long-Term Debt | ||||
Amount available under the credit agreement | $ 48,365,000 | |||
Long-term line of credit | 0 | |||
Subsequent Event | Revolving Credit Facility | Line of Credit | ||||
Notes Payable and Long-Term Debt | ||||
Proceeds from lines of credit | $ 0 |
Revolving Credit Facilities a_5
Revolving Credit Facilities and Mortgage Payable - Mortgage (Details) - USD ($) | 1 Months Ended | ||
Jul. 31, 2014 | Sep. 30, 2018 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | |||
Short-term borrowings | $ 71,473,000 | $ 578,000 | |
Mortgage payable | 31,210,000 | $ 31,504,000 | |
Mortgages | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 33,900,000 | ||
Long-term debt gross | 31,803,000 | ||
Short-term borrowings | 592,000 | ||
Mortgage payable | $ 31,210,000 | ||
Fixed interest rate | 4.928% | ||
Debt amortization period | 30 years | ||
Balloon payment to be paid | $ 23,700,000 |
Revolving Credit Facilities a_6
Revolving Credit Facilities and Mortgage Payable - Debt Covenants (Details) - Primary Credit Facility - JP Morgan | 1 Months Ended |
Sep. 30, 2018 | |
Debt Instrument [Line Items] | |
Leverage ratio maximum | 3.75 |
Interest coverage ratio minimum | 2.25 |
Adjusted leverage ratio to avoid limits on share repurchases | 3.50 |
Stock Compensation - Annual RSU
Stock Compensation - Annual RSUs and Annual PSUs (Details) - Stock Incentive Plan 2015 - $ / shares | 3 Months Ended | 6 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Annual RSUs | ||
Number of Shares | ||
Granted (in shares) | 42,876 | 59,235 |
Weighted- Average Grant-Date Fair Value | ||
Granted (in dollars per share) | $ 114.42 | $ 115.65 |
Annual PSUs | ||
Number of Shares | ||
Granted (in shares) | 17,208 | 31,320 |
Weighted- Average Grant-Date Fair Value | ||
Granted (in dollars per share) | $ 114.42 | $ 116.34 |
Annual RSUs and Annual PSUs | ||
Number of Shares | ||
Granted (in shares) | 60,084 | 90,555 |
Weighted- Average Grant-Date Fair Value | ||
Granted (in dollars per share) | $ 114.42 | $ 115.89 |
Stock Compensation - Annual Awa
Stock Compensation - Annual Awards (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Nov. 02, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Annual RSUs and Annual PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expenses | $ 2,589 | $ 2,870 | $ 4,819 | $ 4,702 | |
Unrecognized Stock Compensation Expense | $ 13,842 | $ 13,842 | |||
Stock Incentive Plan 2015 | Annual RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 3 years | ||||
Granted (in shares) | 42,876 | 59,235 | |||
Stock Incentive Plan 2015 | Annual PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 3 years | ||||
Granted (in shares) | 17,208 | 31,320 | |||
Stock Incentive Plan 2015 | Annual RSUs and Annual PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 60,084 | 90,555 | |||
Subsequent Event | Stock Incentive Plan 2015 | Annual RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 0 | ||||
Subsequent Event | Stock Incentive Plan 2015 | Annual PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 0 |
Stock Compensation - Long-Term
Stock Compensation - Long-Term Incentive Plan Options (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Nov. 02, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Long Term Incentive Plan NQSOs | LTIP NQSOs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expenses | $ 914 | $ 924 | $ 1,904 | $ 1,500 | |
Unrecognized Stock Compensation Expense | $ 3,643 | $ 3,643 | |||
2019 Long-Term Incentive Plan NQSOs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted (in shares) | 0 | 0 | |||
Subsequent Event | 2019 Long-Term Incentive Plan NQSOs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted (in shares) | 0 |
Stock Compensation - Long-Ter_2
Stock Compensation - Long-Term Incentive Plan Awards (Details) - 2019 LTIP PSUs - 2015 SIP $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period (in years) | 3 years | |
Award requisite service period | 36 months | |
Granted (in shares) | shares | 41,793 | |
Granted (in dollars per share) | $ / shares | $ 120.24 | |
Compensation expenses | $ 59 | |
Unrecognized Stock Compensation Expense | $ 4,967 | $ 4,967 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting rights percentage | 200.00% | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Financial performance achievement percentage | 90.00% |
Derivative Instruments (Details
Derivative Instruments (Details) | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2018USD ($)counterparty | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)counterparty | Sep. 30, 2017USD ($) | Nov. 02, 2018USD ($) | Mar. 31, 2018USD ($) | |
Summary of the effect of derivative instruments on the consolidated statements of income | ||||||
Gain (loss) reclassification from AOCI to income, estimate of time to transfer | 9 months | |||||
Foreign currency exchange contracts | ||||||
Foreign currency exchange contracts and hedging | ||||||
Number of counterparties in derivative contracts | counterparty | 5 | 5 | ||||
Maximum remaining maturity of foreign currency derivatives | 6 months | |||||
Designated Derivative Contracts | Derivatives designated as cash flow hedges | ||||||
Summary of the effect of derivative instruments on the consolidated statements of income | ||||||
Amount of gain (loss) on derivative instruments (effective portion) recognized in other comprehensive (loss) income | $ 588,000 | $ (3,900,000) | $ 7,358,000 | $ (9,790,000) | ||
Amount of gain (loss) reclassified from accumulated other comprehensive loss into net sales (effective portion) | 2,166,000 | (2,283,000) | 2,166,000 | (2,283,000) | ||
Amount of gain excluded from effectiveness testing recognized in SG&A expenses | 634,000 | 439,000 | $ 1,480,000 | 772,000 | ||
Non-Designated Derivative Contracts | Foreign currency exchange contracts | ||||||
Foreign currency exchange contracts and hedging | ||||||
Maximum remaining maturity of foreign currency derivatives | 6 months | |||||
Summary of the effect of derivative instruments on the consolidated statements of income | ||||||
Amount of gain (loss) on derivative instruments recognized in SG&A expenses | 250,000 | $ (1,065,000) | $ 737,000 | $ (2,668,000) | ||
Subsequent Event | Designated Derivative Contracts | Derivatives designated as cash flow hedges | Foreign currency exchange contracts | ||||||
Foreign currency exchange contracts and hedging | ||||||
Notional value | $ 0 | |||||
Subsequent Event | Non-Designated Derivative Contracts | Derivatives designated as cash flow hedges | Foreign currency exchange contracts | ||||||
Foreign currency exchange contracts and hedging | ||||||
Notional value | $ 0 | |||||
Fair Value, Measurements, Recurring | ||||||
Foreign currency exchange contracts and hedging | ||||||
Fair value recorded in other current assets | 7,469,000 | 7,469,000 | ||||
Fair value recorded in other accrued expenses | 20,000 | 20,000 | ||||
Fair Value, Measurements, Recurring | Foreign currency exchange contracts | ||||||
Foreign currency exchange contracts and hedging | ||||||
Notional value | 124,597,000 | 124,597,000 | ||||
Fair Value, Measurements, Recurring | Designated Derivative Contracts | ||||||
Foreign currency exchange contracts and hedging | ||||||
Fair value recorded in other current assets | 6,722,000 | 6,722,000 | $ 950,000 | |||
Fair Value, Measurements, Recurring | Designated Derivative Contracts | Derivatives designated as cash flow hedges | ||||||
Foreign currency exchange contracts and hedging | ||||||
Fair value recorded in other accrued expenses | 0 | 0 | 143,000 | |||
Fair Value, Measurements, Recurring | Designated Derivative Contracts | Derivatives designated as cash flow hedges | Foreign currency exchange contracts | ||||||
Foreign currency exchange contracts and hedging | ||||||
Notional value | 86,015,000 | 86,015,000 | ||||
Fair value recorded in other current assets | 6,722,000 | 6,722,000 | ||||
Fair Value, Measurements, Recurring | Non-Designated Derivative Contracts | ||||||
Foreign currency exchange contracts and hedging | ||||||
Fair value recorded in other current assets | 747,000 | 747,000 | ||||
Fair value recorded in other accrued expenses | 20,000 | 20,000 | $ 10,000 | |||
Fair Value, Measurements, Recurring | Non-Designated Derivative Contracts | Foreign currency exchange contracts | ||||||
Foreign currency exchange contracts and hedging | ||||||
Notional value | $ 38,582,000 | $ 38,582,000 |
Stockholders' Equity - Repurcha
Stockholders' Equity - Repurchase Programs (Details) - 2015 And 2017 Stock Repurchase Plans - USD ($) | 1 Months Ended | 6 Months Ended | 46 Months Ended |
Nov. 02, 2018 | Sep. 30, 2018 | Nov. 02, 2018 | |
Class of Stock [Line Items] | |||
Repurchased stock acquired average cost per share (in dollars per share) | $ 117.03 | ||
Shares repurchased (in shares) | 1,151,260 | ||
Dollar value of shares repurchased | $ 134,735,000 | ||
Subsequent Event | |||
Class of Stock [Line Items] | |||
Repurchased stock acquired average cost per share (in dollars per share) | $ 106.88 | $ 87.01 | |
Shares repurchased (in shares) | 249,439 | 5,123,201 | |
Dollar value of shares repurchased | $ 26,660,000 | $ 445,788,000 | |
Dollar value of shares that may yet be repurchased | $ 89,212,000 | $ 89,212,000 |
Stockholders' Equity - Retained
Stockholders' Equity - Retained Earnings (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Sep. 30, 2018 | Mar. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance as of March 31, 2018 | $ 785,871 | |
Net income | 43,965 | |
Repurchases of common stock | (134,724) | |
Impact from adoption of ASUs, net of tax | $ 468 | |
Balance as of September 30, 2018 | 695,580 | |
2015 And 2017 Stock Repurchase Plans | ||
Increase (Decrease) in Stockholders' Equity | ||
Repurchases of common stock | $ (134,735) | |
Shares repurchased (in shares) | 1,151,260 |
Stockholders' Equity - Accumul
Stockholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Stockholders' Equity Note [Abstract] | ||
Unrealized gain on cash flow hedges | $ 4,369 | $ 243 |
Cumulative foreign currency translation loss | (24,550) | (13,226) |
Total | $ (20,181) | $ (12,983) |
Net Income Per Share (Details)
Net Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average number of basic shares outstanding (in shares) | 29,849 | 32,015 | 30,134 | 32,003 |
Weighted average number diluted shares outstanding adjustment (in shares) | 179 | 257 | 193 | 253 |
Weighted average number of diluted shares outstanding (in shares) | 30,028 | 32,272 | 30,327 | 32,256 |
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) | 29 | 92 | 55 | 132 |
LTIP PSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 84 | 269 | 84 | 269 |
LTIP NQSOs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 377 | 397 | 377 | 397 |
Deferred Non-Employee Director Equity Awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 3 | 1 | 3 |
Reportable Operating Segments_2
Reportable Operating Segments (Details) | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segment | 6 | |||||
Net sales | $ 501,913,000 | $ 482,460,000 | $ 752,507,000 | $ 692,177,000 | ||
(Loss) income from operations | 90,412,000 | 67,355,000 | 50,998,000 | 11,099,000 | ||
Total assets | 1,423,968,000 | 1,423,968,000 | $ 1,264,379,000 | |||
Unallocated cash and cash equivalents | 182,192,000 | 230,586,000 | 182,192,000 | 230,586,000 | 429,970,000 | $ 291,764,000 |
Unallocated deferred tax assets | 38,878,000 | 38,878,000 | 38,381,000 | |||
Reportable segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | 977,616,000 | 977,616,000 | 582,360,000 | |||
Reportable segments | UGG brand wholesale | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | 661,623,000 | 661,623,000 | 229,894,000 | |||
Reportable segments | HOKA brand wholesale | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | 71,919,000 | 71,919,000 | 65,943,000 | |||
Reportable segments | Teva brand wholesale | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | 46,021,000 | 46,021,000 | 85,980,000 | |||
Reportable segments | Sanuk brand wholesale | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | 52,646,000 | 52,646,000 | 79,322,000 | |||
Reportable segments | Other brands wholesale | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | 41,666,000 | 41,666,000 | 8,866,000 | |||
Reportable segments | Direct-to-Consumer | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | 103,741,000 | 103,741,000 | 112,355,000 | |||
Segment reconciling items | ||||||
Segment Reporting Information [Line Items] | ||||||
Intersegment profit | 0 | |||||
(Loss) income from operations | (62,187,000) | (57,647,000) | (118,388,000) | (111,166,000) | ||
Unallocated cash and cash equivalents | 182,192,000 | 182,192,000 | 429,970,000 | |||
Unallocated deferred tax assets | 38,878,000 | 38,878,000 | 38,381,000 | |||
Unallocated other corporate assets | 225,282,000 | 225,282,000 | $ 213,668,000 | |||
Wholesale | Reportable segments | UGG brand wholesale | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 319,589,000 | 322,050,000 | 400,942,000 | 385,323,000 | ||
(Loss) income from operations | 134,029,000 | 117,218,000 | 139,898,000 | 116,197,000 | ||
Wholesale | Reportable segments | HOKA brand wholesale | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 43,561,000 | 35,699,000 | 83,515,000 | 62,237,000 | ||
(Loss) income from operations | 8,170,000 | 7,549,000 | 13,898,000 | 8,809,000 | ||
Wholesale | Reportable segments | Teva brand wholesale | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 15,878,000 | 16,494,000 | 49,074,000 | 48,617,000 | ||
(Loss) income from operations | 1,847,000 | 1,916,000 | 9,911,000 | 6,859,000 | ||
Wholesale | Reportable segments | Sanuk brand wholesale | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 10,933,000 | 12,087,000 | 31,436,000 | 34,307,000 | ||
(Loss) income from operations | 291,000 | 1,228,000 | 4,491,000 | 5,645,000 | ||
Wholesale | Reportable segments | Other brands wholesale | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 18,064,000 | 4,822,000 | 20,701,000 | 5,249,000 | ||
(Loss) income from operations | 5,287,000 | 494,000 | 5,637,000 | 260,000 | ||
Directly to Consumer | Reportable segments | Direct-to-Consumer | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 93,888,000 | 91,308,000 | 166,839,000 | 156,444,000 | ||
(Loss) income from operations | $ 2,975,000 | $ (3,403,000) | $ (4,449,000) | $ (15,505,000) |
Concentration of Business (Deta
Concentration of Business (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018USD ($)suppliertannery | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)suppliertannery | Sep. 30, 2017USD ($) | Mar. 31, 2018USD ($) | |
Concentration Risk [Line Items] | |||||
Net sales | $ 501,913 | $ 482,460 | $ 752,507 | $ 692,177 | |
Number of tanneries | tannery | 2 | 2 | |||
Number of suppliers | supplier | 2 | 2 | |||
Long-lived assets | $ 215,720 | $ 215,720 | $ 220,162 | ||
Sales Revenue, Net | International Net Sales | |||||
Concentration Risk [Line Items] | |||||
Net sales | $ 190,320 | $ 179,783 | $ 299,207 | $ 268,787 | |
Concentration risk (as a percent) | 37.90% | 37.30% | 39.80% | 38.80% | |
Sales Revenue, Net | Net Sales in Foreign Currencies | |||||
Concentration Risk [Line Items] | |||||
Net sales | $ 162,587 | $ 160,195 | $ 227,013 | $ 209,427 | |
Concentration risk (as a percent) | 32.40% | 33.20% | 30.20% | 30.30% | |
Sales Revenue, Net | Customer Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (as a percent) | 29.20% | 32.10% | 24.40% | 26.80% | |
Accounts Receivable | Customer Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Concentration risk (as a percent) | 21.60% | ||||
US | |||||
Concentration Risk [Line Items] | |||||
Long-lived assets | $ 199,192 | $ 199,192 | 203,956 | ||
All other countries | |||||
Concentration Risk [Line Items] | |||||
Long-lived assets | $ 16,528 | $ 16,528 | $ 16,206 |