Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 25, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'DECKERS OUTDOOR CORP | ' |
Entity Central Index Key | '0000910521 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 34,536,737 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $84,107 | $110,247 |
Trade accounts receivable, net of allowances of $16,740 and $25,086 as of September 30, 2013 and December 31, 2012, respectively | 211,981 | 190,756 |
Inventories | 444,595 | 300,173 |
Prepaid expenses | 15,692 | 14,092 |
Other current assets | 71,321 | 59,028 |
Income taxes receivable | 14,194 | 0 |
Deferred tax assets | 17,756 | 17,290 |
Total current assets | 859,646 | 691,586 |
Property and equipment, net of accumulated depreciation of $88,354 and $69,580 as of September 30, 2013 and December 31, 2012, respectively | 164,412 | 125,370 |
Goodwill | 128,725 | 128,725 |
Other intangible assets, net of accumulated amortization of $22,040 and $16,164 as of September 30, 2013 and December 31, 2012, respectively | 90,986 | 95,965 |
Deferred tax assets | 13,523 | 13,372 |
Other assets | 18,646 | 13,046 |
Total assets | 1,275,938 | 1,068,064 |
Current liabilities: | ' | ' |
Short-term borrowings | 245,458 | 33,000 |
Trade accounts payable | 144,306 | 133,457 |
Accrued payroll | 27,012 | 15,896 |
Other accrued expenses | 52,652 | 59,597 |
Income taxes payable | 2,762 | 25,067 |
Total current liabilities | 472,190 | 267,017 |
Long-term liabilities | 47,919 | 62,246 |
Commitments and contingencies (note 9) | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $0.01 par value; authorized 125,000 shares; issued and outstanding 34,537 and 34,400 shares as of September 30, 2013 and December 31, 2012, respectively | 345 | 344 |
Additional paid-in capital | 150,598 | 139,046 |
Retained earnings | 605,603 | 600,811 |
Accumulated other comprehensive loss | -717 | -1,400 |
Total stockholders' equity | 755,829 | 738,801 |
Total liabilities and equity | $1,275,938 | $1,068,064 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Trade accounts receivable, allowances (in dollars) | $16,740 | $25,086 |
Property and equipment, accumulated depreciation | 88,354 | 69,580 |
Other intangible assets, accumulated amortization | $22,040 | $16,164 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized shares | 125,000 | 125,000 |
Common stock, issued shares | 34,537 | 34,400 |
Common stock, outstanding shares | 34,537 | 34,400 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $386,725 | $376,392 | $820,570 | $797,134 |
Cost of sales | 219,833 | 217,099 | 460,287 | 450,974 |
Gross profit | 166,892 | 159,293 | 360,283 | 346,160 |
Selling, general and administrative expenses | 120,395 | 99,684 | 353,885 | 303,326 |
Income from operations | 46,497 | 59,609 | 6,398 | 42,834 |
Other expense (income), net: | ' | ' | ' | ' |
Interest income | -7 | -24 | -42 | -195 |
Interest expense | 1,067 | 732 | 1,786 | 831 |
Other, net | -265 | -101 | -506 | -609 |
Total other expense (income), net | 795 | 607 | 1,238 | 27 |
Income before income taxes | 45,702 | 59,002 | 5,160 | 42,807 |
Income tax expense | 12,642 | 15,941 | 368 | 11,850 |
Net income | 33,060 | 43,061 | 4,792 | 30,957 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Unrealized loss on foreign currency hedging | -1,772 | -968 | -452 | -946 |
Foreign currency translation adjustment | 2,898 | 412 | 1,135 | 2,373 |
Total other comprehensive income (loss) | 1,126 | -556 | 683 | 1,427 |
Comprehensive income | 34,186 | 42,505 | 5,475 | 32,384 |
Net income attributable to: | ' | ' | ' | ' |
Deckers Outdoor Corporation | 33,060 | 43,061 | 4,792 | 30,809 |
Noncontrolling interest | 0 | 0 | 0 | 148 |
Net income | 33,060 | 43,061 | 4,792 | 30,957 |
Comprehensive income attributable to: | ' | ' | ' | ' |
Deckers Outdoor Corporation | 34,186 | 42,505 | 5,475 | 32,236 |
Noncontrolling interest | 0 | 0 | 0 | -148 |
Comprehensive income | $34,186 | $42,505 | $5,475 | $32,384 |
Net income per share attributable to Deckers Outdoor Corporation common stockholders: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.96 | $1.19 | $0.14 | $0.82 |
Diluted (in dollars per share) | $0.95 | $1.18 | $0.14 | $0.81 |
Weighted-average common shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 34,496 | 36,129 | 34,451 | 37,534 |
Diluted (in shares) | 34,794 | 36,577 | 34,792 | 37,994 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $4,792 | $30,957 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Depreciation, amortization and accretion | 27,409 | 22,899 |
Change in fair value of contingent consideration | 831 | 6,223 |
(Recovery of) provision for doubtful accounts, net | -246 | 1,717 |
Stock compensation | 9,821 | 12,029 |
Other | 559 | 857 |
Changes in operating assets and liabilities: | ' | ' |
Trade accounts receivable | -20,979 | -47,601 |
Inventories | -143,224 | -232,897 |
Prepaid expenses and other current assets | -17,985 | 24,486 |
Income tax receivable | -8,796 | -16,838 |
Other assets | -4,314 | -3,142 |
Trade accounts payable | 14,521 | 53,433 |
Contingent consideration | -6,458 | -959 |
Accrued expenses | 7,466 | -23,623 |
Income taxes payable | -22,305 | -13,351 |
Long-term liabilities | 3,444 | 2,425 |
Net cash used in operating activities | -155,464 | -183,385 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -55,760 | -42,002 |
Acquisition of businesses | 0 | -8,329 |
Equity method investment | 0 | -500 |
Purchases of intangible assets | -701 | -3,985 |
Net cash used in investing activities | -56,461 | -54,816 |
Cash flows from financing activities: | ' | ' |
Cash paid for shares withheld for taxes | -4,845 | -5,750 |
Excess tax benefits from stock compensation | 1,033 | 2,108 |
Cash paid for repurchases of common stock | 0 | -184,695 |
Contingent consideration and deferred payments paid | -22,628 | -29,041 |
Cash paid for noncontrolling interest in consolidated entity | 0 | -20,000 |
Proceeds from issuance of short-term borrowing | 286,458 | 275,000 |
Cash paid for repayment of short-term borrowings | -74,000 | -1,714 |
Net cash provided by financing activities | 186,018 | 35,908 |
Effect of exchange rates on cash | -233 | 323 |
Net change in cash and cash equivalents | -26,140 | -201,970 |
Cash and cash equivalents at beginning of period | 110,247 | 263,606 |
Cash and cash equivalents at end of period | 84,107 | 61,636 |
Cash paid during the period for: | ' | ' |
Income taxes | 30,225 | 39,786 |
Interest | 1,329 | 453 |
Non-cash investing activity: | ' | ' |
Accruals for purchases of property and equipment | 6,381 | 2,355 |
Contingent consideration arrangement for acquisition of businesses | 0 | 1,120 |
Deferred purchase payments for acquisition of business | 0 | 3,671 |
Accruals for asset retirement obligations | 26 | 146 |
Non-cash financing activity: | ' | ' |
Accruals for shares withheld for taxes | $1,658 | $752 |
General
General | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
General | ' |
General | |
(a) Basis of Presentation | |
The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements and, in the opinion of management, reflect all adjustments necessary for a fair presentation for each of the periods presented. The results of operations for interim periods are not necessarily indicative of results to be achieved for full fiscal years or other interim periods. Deckers Outdoor Corporation (also referred to as Deckers or the Company) is a global leader in designing, marketing and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high performance activities. The Company’s business is seasonal, with the highest percentage of UGG® brand net sales occurring in the third and fourth quarters and the highest percentage of Teva® and Sanuk® brand net sales occurring in the first and second quarters of each year. The other brands do not have a significant seasonal impact on the Company. | |
Prior to April 2, 2012, the Company owned 51% of a joint venture with an affiliate of Stella International Holdings Limited (Stella International) for the primary purpose of opening and operating retail stores for the UGG brand in China. Stella International is also one of the Company’s major manufacturers in China. On April 2, 2012, the Company purchased, for a total purchase price of $20,000, the 49% noncontrolling interest owned by Stella International. The Company accounted for this transaction as an acquisition of the remaining interest of an entity that had already been majority-owned by the Company. The purchase resulted in a reduction to additional paid in capital of $14,037 representing excess purchase price over the carrying amount of the noncontrolling interest. Prior to this purchase, the Company already had a controlling interest in this entity, and therefore, the subsidiary had been and will continue to be consolidated with the Company’s operations. | |
In May 2012, the Company purchased a noncontrolling interest in the Hoka One One® (Hoka) brand, a privately held footwear company, which was accounted for as an equity method investment. In September 2012, the Company acquired the remaining ownership interest in Hoka. The Company does not expect the acquisition of Hoka to be material to the Company’s condensed consolidated financial statements or have a significant seasonal impact on the Company throughout 2013. | |
We sell our brands through our quality domestic retailers and international distributors and retailers, as well as directly to our end-user consumers through our eCommerce business and our retail stores. Independent third parties manufacture all of our products. | |
As contemplated by the Securities and Exchange Commission (SEC) under Rule 10-01 of Regulation S-X, the accompanying condensed consolidated financial statements and related footnotes have been condensed and do not contain certain information that will be included in the Company’s annual consolidated financial statements and footnotes thereto. For further information, refer to the consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC on March 1, 2013 (Annual Report). | |
(b) Use of Estimates | |
The preparation of the Company’s condensed consolidated financial statements in accordance with US generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to inventory write-downs, accounts receivable reserves, returns liabilities, stock compensation, performance based compensation, impairment assessments, depreciation and amortization, income tax liabilities and uncertain tax positions, fair value of financial instruments, and fair values of acquired intangibles, assets and liabilities, including estimated contingent consideration payments. Actual results could differ materially from these estimates. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity | ' |
Stockholders’ Equity | |
In May 2006, the Company adopted the 2006 Equity Incentive Plan (2006 Plan), which was amended by Amendment No. 1 dated May 9, 2007. The primary purpose of the 2006 Plan is to encourage ownership in the Company by key personnel, whose long-term service is considered essential to the Company’s continued success. The 2006 Plan reserves 6,000,000 shares of the Company’s common stock for issuance to employees, directors, or consultants. The maximum aggregate number of shares that may be issued under the 2006 Plan through the exercise of incentive stock options (Options) is 4,500,000. Pursuant to the Deferred Stock Unit Compensation Plan, a sub plan under the 2006 Plan, a participant may elect to defer settlement of their outstanding unvested awards until such time as elected by the participant. | |
The Company has elected to grant nonvested stock units (NSUs) annually to key personnel. The NSUs granted entitle the employee recipients to receive shares of common stock in the Company upon vesting of the NSUs. The vesting of most NSUs is subject to achievement of certain performance targets. For the majority of NSUs granted in 2013, if the performance goal is achieved, these awards will vest in equal one-third installments at the end of each of the three years after the performance goal is achieved. For NSUs granted in 2012, the performance target was not met and, therefore, the awards will not vest. On a quarterly basis, the Company grants fully-vested shares of its common stock to each of its outside directors. The fair value of such shares is expensed on the date of issuance. | |
During the three months ended September 30, 2013, the Company granted 15,750 NSUs under the 2006 Plan, at a weighted-average grant-date fair value of $54.59 per share. During the nine months ended September 30, 2013, the Company granted 298,250 NSUs under the 2006 Plan, at a weighted-average grant-date fair value of $57.29 per share. As of September 30, 2013, future unrecognized compensation cost for these awards, excluding estimated forfeitures was $13,000. As of September 30, 2013, the Company believed that the achievement of at least the threshold performance objective of these awards was probable, and therefore recognized compensation expense accordingly for these awards. | |
In June 2012, the Company approved a stock repurchase program to repurchase up to $200,000 of the Company’s common stock in the open market or in privately negotiated transactions, subject to market conditions, applicable legal requirements, and other factors. The program does not obligate the Company to acquire any particular amount of common stock and the program may be suspended at any time at the Company’s discretion. There was no stock repurchased during the three and nine months ended September 30, 2013. As of September 30, 2013, the Company had repurchased approximately 2,765,000 shares under this program, for approximately $120,700, or an average price of $43.66 per share, leaving the remaining approved amount at approximately $79,300. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss (AOCL) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | |||||||
Accumulated Other Comprehensive Loss (AOCL) | ' | |||||||
Accumulated Other Comprehensive Loss (AOCL) | ||||||||
Accumulated balances of the components within accumulated other comprehensive loss were as follows: | ||||||||
September 30, | 31-Dec-12 | |||||||
2013 | ||||||||
Unrealized loss on foreign currency hedging, net of tax | $ | (452 | ) | $ | — | |||
Cumulative foreign currency translation adjustment, net of tax | (265 | ) | (1,400 | ) | ||||
Accumulated other comprehensive loss | $ | (717 | ) | $ | (1,400 | ) |
Net_Loss_per_Share_Attributabl
Net Loss per Share Attributable to Deckers Outdoor Corporation Common Stockholders | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Net Loss per Share Attributable to Deckers Outdoor Corporation Common Stockholders | ' | |||||||||||
Net Income per Share Attributable to Deckers Outdoor Corporation Common Stockholders | ||||||||||||
Basic net income per share represents net income attributable to Deckers Outdoor Corporation divided by the weighted-average number of common shares outstanding for the period. Diluted net income per share represents net income attributable to Deckers Outdoor Corporation divided by the weighted-average number of common shares outstanding, including the dilutive impact of potential issuances of common stock. The reconciliations of basic to diluted weighted-average common shares outstanding were as follows: | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted-average shares used in basic computation | 34,496,000 | 36,129,000 | 34,451,000 | 37,534,000 | ||||||||
Dilutive effect of stock-based awards* | 298,000 | 448,000 | 341,000 | 460,000 | ||||||||
Weighted-average shares used for diluted computation | 34,794,000 | 36,577,000 | 34,792,000 | 37,994,000 | ||||||||
*Excluded NSUs | 274,000 | 199,000 | 274,000 | 199,000 | ||||||||
*Excluded RSUs | 639,000 | 671,000 | 639,000 | 671,000 | ||||||||
*Excluded SARs | 525,000 | 525,000 | 525,000 | 525,000 | ||||||||
*Excluded options | — | — | — | — | ||||||||
* The share-based awards that were excluded from the dilutive effect were excluded because necessary conditions had not been satisfied for the shares to be issuable based on the Company’s performance through the three and nine months ended September 30, 2013 and 2012, respectively. The excluded awards include the maximum amounts achievable for these awards. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The fair values of the Company’s cash and cash equivalents, trade accounts receivable, prepaid expenses, other current assets, short-term borrowings, trade accounts payable, accrued expenses, and income taxes receivable and payable approximate the carrying values due to the relatively short maturities of these instruments. The fair values of the Company’s long-term liabilities, except as noted otherwise, if calculated based on current interest rates, would not significantly differ from the recorded amounts. The fair value of the contingent consideration and the derivatives are measured and recorded at fair value on a recurring basis. The Company records the fair value of assets or liabilities associated with derivative instruments and hedging activities in other current assets or other accrued expenses, respectively, in the condensed consolidated balance sheets. | ||||||||||||||||
In 2010, the Company established a nonqualified deferred compensation program that permits a select group of management employees to defer earnings to a future date on a nonqualified basis. For each plan year, on behalf of the Company, the Company’s Board of Directors (the Board) may, but is not required to, contribute any amount it desires to any participant under this program. The Company’s contribution will be determined by the Board annually in the fourth quarter. The value of the deferred compensation is recognized based on the fair value of the participants’ accounts. The Company has established a rabbi trust as a reserve for the benefits payable under this program. The assets of the trust are reported in other assets on the Company’s condensed consolidated balance sheets. All amounts deferred are presented in long-term liabilities in the condensed consolidated balance sheets. | ||||||||||||||||
The inputs used in measuring fair value are prioritized into the following hierarchy: | ||||||||||||||||
· Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||||
· Level 2: Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable. | ||||||||||||||||
· Level 3: Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. | ||||||||||||||||
The table below summarizes the Company’s financial assets and liabilities that are measured on a recurring basis at fair value: | ||||||||||||||||
Fair value at September 30, | Fair Value Measurement Using | |||||||||||||||
2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets (liabilities) at fair value | ||||||||||||||||
Nonqualified deferred compensation asset | $ | 4,168 | $ | 4,168 | $ | — | $ | — | ||||||||
Nonqualified deferred compensation liability | $ | (4,168 | ) | $ | (4,168 | ) | $ | — | $ | — | ||||||
Non-designated derivatives assets | $ | 94 | $ | — | $ | 94 | $ | — | ||||||||
Designated derivatives liability | $ | (696 | ) | $ | — | $ | (696 | ) | $ | — | ||||||
Non-designated derivatives liability | $ | (126 | ) | $ | — | $ | (126 | ) | $ | — | ||||||
Contingent consideration for acquisition of business | $ | (46,923 | ) | $ | — | $ | — | $ | (46,923 | ) | ||||||
Fair value at December 31, | Fair Value Measurement Using | |||||||||||||||
2012 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets (liabilities) at fair value | ||||||||||||||||
Nonqualified deferred compensation asset | $ | 3,653 | $ | 3,653 | $ | — | $ | — | ||||||||
Nonqualified deferred compensation liability | $ | (3,653 | ) | $ | (3,653 | ) | $ | — | $ | — | ||||||
Non-designated derivatives assets | $ | 839 | $ | — | $ | 839 | $ | — | ||||||||
Non-designated derivatives liabilities | $ | (336 | ) | $ | — | $ | (336 | ) | $ | — | ||||||
Contingent consideration for acquisition of business | $ | (71,460 | ) | $ | — | $ | — | $ | (71,460 | ) | ||||||
The Level 2 inputs consist of forward spot rates at the end of the reporting period (see note 6). | ||||||||||||||||
The fair value of the contingent consideration is based on subjective assumptions. It is reasonably possible the estimated fair value of the contingent consideration could change in the near-term and the effect of the change could be material. | ||||||||||||||||
Sanuk | ||||||||||||||||
The estimated fair value of the contingent consideration attributable to our Sanuk brand acquisition is based on the Sanuk brand estimated future gross profits, using a probability weighted average sales forecast to determine a best estimate of gross profits. The estimated sales forecast includes a compound annual growth rate (CAGR) of 16.9% from fiscal year 2012 through fiscal year 2015. The gross profit forecasts for fiscal years 2013 through 2015 range from approximately $52,000 to $80,000, which are then used to apply the contingent consideration percentages in accordance with the applicable agreement. The total estimated contingent consideration is then discounted to the present value with a discount rate of 7.0%. The Company’s use of different estimates and assumptions could produce different estimates of the value of the contingent consideration. For example, a 5.0% change in the estimated CAGR would change the total liability balance at September 30, 2013 by approximately $4,000. | ||||||||||||||||
Hoka | ||||||||||||||||
In connection with the Company’s acquisition of the Hoka brand, the purchase price includes contingent consideration with maximum payments of $2,000, which is based on the Hoka brand’s estimated future net sales, using a probability weighted average sales forecast to determine a best estimate. The Company’s use of different estimates and assumptions is not expected to have a material impact to the value of the contingent consideration. | ||||||||||||||||
Refer to note 9 for further information on the contingent consideration arrangements. | ||||||||||||||||
The following table presents a reconciliation of the Level 3 measurement: | ||||||||||||||||
Balance, December 31, 2012 | $ | 71,500 | ||||||||||||||
Payments | (25,400 | ) | ||||||||||||||
Change in fair value | 800 | |||||||||||||||
Balance, September 30, 2013 | $ | 46,900 | ||||||||||||||
Foreign_Currency_Exchange_Cont
Foreign Currency Exchange Contracts and Hedging | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Foreign Currency Exchange Contracts and Hedging | ' | ||||||||||||||||
Foreign Currency Exchange Contracts and Hedging | |||||||||||||||||
As of September 30, 2013, the Company had foreign currency forward contracts designated as cash-flow hedges with notional amounts totaling approximately $38,000 , held by two counterparties and had non-designated derivative contracts with notional amounts totaling approximately $22,000, held by one counterparty. At December 31, 2012, the Company had non-designated derivative contracts with notional amounts totaling approximately $19,000, which were comprised of offsetting contracts with the same counterparty and expired in March 2013. At September 30, 2013, the outstanding contracts were expected to mature over the next three months. | |||||||||||||||||
The nonperformance risk of the Company and the counterparties did not have a material impact on the fair value of the derivatives. During the three and nine months ended September 30, 2013, the ineffective portion relating to these hedges was immaterial and the hedges remained effective as of September 30, 2013. The effective portion of the gain or loss on the derivative is reported in other comprehensive income (loss) (OCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. As of September 30, 2013, the total amount in accumulated other comprehensive loss (see note 3) was expected to be reclassified into income within the next six months. | |||||||||||||||||
The following table summarizes the effect of foreign exchange contracts designated as cash flow hedging relationships on the condensed consolidated financial statements: | |||||||||||||||||
For the Nine Months Ended September 30, | Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Reclassified from AOCI into Income (Effective Portion) | Location of Amount Excluded from Effectiveness Testing | Gain (Loss) from Amount Excluded from Effectiveness Testing | ||||||||||||
2013 | $ | (690 | ) | Net sales | $ | 597 | SG&A | $ | (12 | ) | |||||||
2012 | $ | (1,707 | ) | Net sales | $ | 1,141 | SG&A | $ | 23 | ||||||||
The following table summarizes the effect of foreign exchange contracts not designated as hedging instruments on the condensed consolidated financial statements: | |||||||||||||||||
For the Nine Months Ended September 30, | Location of Gain (Loss) Recognized in Income (Loss) on Derivatives | Amount of Gain (Loss) Recognized in Income (Loss) on Derivatives | |||||||||||||||
2013 | SG&A | $ | (32 | ) | |||||||||||||
2012 | SG&A | $ | (272 | ) |
Credit_Agreement
Credit Agreement | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Credit Agreement | ' |
Credit Agreement | |
In June 2013, the Company amended the Amended and Restated Credit Agreement to permit additional borrowings in China of $12,500 and revised certain financial covenants including an increase in the maximum amount permitted to be spent on the headquarters building from $75,000 to $80,000. | |
In August 2013, Deckers (Beijing) Trading Co., LTD, a fully owned subsidiary, entered into a credit facility in China (China Credit Facility) that provides for an uncommitted revolving line of credit of up to RMB 60,000, or approximately $10,000, in the third and fourth quarters and RMB 20,000, or approximately $3,300, in the first and second quarters. Interest is based on the People’s Bank of China rate, which was 6.0% at September 30, 2013. The China Credit Facility is on demand and subject to annual review and renewal. The obligations under the China Credit Agreement are guaranteed by the Company for 110% of the facility amount in USD. At September 30, 2013, the Company had $7,000 of outstanding borrowings under the China Credit Facility. Subsequent to September 30, 2013, the Company borrowed an additional $3,000 resulting in a total outstanding balance of $10,000 under the China Credit Agreement through November 12, 2013. | |
At September 30, 2013, the Company had $239,000 of outstanding borrowings under the Amended and Restated Credit Agreement and outstanding letters of credit of $200. The weighted average interest rate of the outstanding borrowings was 1.69%. As a result, the unused balance under the Amended and Restated Credit Agreement was $160,800 at September 30, 2013. After applying the asset coverage ratio and adjusted leverage ratio, the amount available to borrow at September 30, 2013 was $110,600. Subsequent to September 30, 2013, the Company borrowed $31,000 and repaid $27,000 resulting in a remaining outstanding balance of $243,000 under the Amended and Restated Credit Agreement through November 12, 2013. |
Business_Segments_Concentratio
Business Segments, Concentration of Business, and Credit Risk and Significant Customers | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Business Segments, Concentration of Business, and Credit Risk and Significant Customers | ' | |||||||||||||||
Business Segments, Concentration of Business, and Credit Risk and Significant Customers | ||||||||||||||||
The Company’s accounting policies of the segments below are the same as those described in the summary of significant accounting policies in the Annual Report, except that the Company does not allocate corporate overhead costs or non-operating income and expenses to segments. The Company evaluates segment performance primarily based on net sales and income or loss from operations. The Company’s reportable segments include the strategic business units for the worldwide wholesale operations of the UGG brand, Teva brand, Sanuk brand, and other brands, its eCommerce business and its retail store business. The wholesale operations of each brand are managed separately because each requires different marketing, research and development, design, sourcing, and sales strategies. The eCommerce and retail store segments are managed separately because they are direct to consumer sales, while the brand segments are wholesale sales. The income or loss from operations for each of the segments includes only those costs that are specifically related to each segment, which consist primarily of cost of sales, costs for research and development, design, selling and marketing, depreciation, amortization, and the costs of employees and their respective expenses that are directly related to each segment. The unallocated corporate overhead costs include: costs of the distribution centers, certain executive and stock compensation, accounting and finance, legal, information technology, human resources, and facilities costs, among others. | ||||||||||||||||
Beginning January 1, 2013, all gross profit derived from the sales to third parties of the eCommerce and retail stores segments is reported in income from operations of the eCommerce and retail stores segments, respectively. In prior periods, the gross profit derived from the sales to third parties of the eCommerce and retail stores segments was separated into two components: (i) the wholesale profit was included in the related operating income or loss of each wholesale segment, and represented the difference between the Company’s cost and the Company’s wholesale selling price, and (ii) the retail profit was included in the operating income of the eCommerce and retail stores segments, and represented the difference between the Company’s wholesale selling price and the Company’s retail selling price. Each of the wholesale segments charged the eCommerce and retail segments the same price that they charged third party retail customers, with the resulting profit from inter-segment sales included in income (loss) from operations of each respective wholesale segment. Inter-segment sales and cost of sales are eliminated upon consolidation. These changes in segment reporting only changed the presentation within the table below and did not impact the Company’s condensed consolidated financial statements for any periods. The Company believes that these changes better align with how management views the business, which is that sales of the eCommerce and retail stores segments each generate a cash flow of their own and the wholesale segments are not active in generating those cash flows. The segment information for the three and nine months ended September 30, 2012 has been adjusted retrospectively to conform to the current period presentation. | ||||||||||||||||
In 2013, the Company’s other brands include TSUBO®, Ahnu®, MOZO®, and Hoka. On September 27, 2012, the Company acquired the remaining ownership interest in Hoka, which was previously a privately held footwear company in which the Company already had a noncontrolling ownership interest. The results of operations for Hoka are included in the other brands segments beginning from the acquisition date. The wholesale operations of the Company’s other brands are included as one reportable segment, other wholesale, presented in the figures below. Business segment information is summarized as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net sales to external customers: | ||||||||||||||||
UGG wholesale | $ | 273,677 | $ | 284,075 | $ | 418,749 | $ | 454,652 | ||||||||
Teva wholesale | 15,893 | 15,922 | 95,145 | 96,087 | ||||||||||||
Sanuk wholesale | 16,649 | 17,008 | 74,446 | 76,003 | ||||||||||||
Other wholesale | 12,993 | 6,991 | 31,340 | 16,933 | ||||||||||||
eCommerce | 14,884 | 13,263 | 52,234 | 42,968 | ||||||||||||
Retail stores | 52,629 | 39,133 | 148,656 | 110,491 | ||||||||||||
$ | 386,725 | $ | 376,392 | $ | 820,570 | $ | 797,134 | |||||||||
Income (loss) from operations: | ||||||||||||||||
UGG wholesale | $ | 82,256 | $ | 90,177 | $ | 95,827 | $ | 111,273 | ||||||||
Teva wholesale | (1,366 | ) | (1,377 | ) | 10,423 | 11,947 | ||||||||||
Sanuk wholesale | 3,657 | 2,856 | 19,506 | 16,158 | ||||||||||||
Other wholesale | (189 | ) | (21 | ) | (5,258 | ) | (2,032 | ) | ||||||||
eCommerce | 2,678 | 3,281 | 13,283 | 13,855 | ||||||||||||
Retail stores | (2,260 | ) | 321 | (1,612 | ) | 8,507 | ||||||||||
Unallocated overhead costs | (38,279 | ) | (35,628 | ) | (125,771 | ) | (116,874 | ) | ||||||||
$ | 46,497 | $ | 59,609 | $ | 6,398 | $ | 42,834 | |||||||||
Inter-segment sales from the Company’s wholesale segments to the Company’s eCommerce and retail stores segments are at the Company’s cost, and there is no inter-segment profit on these inter-segment sales. Income (loss) from operations of the wholesale segments does not include any inter-segment gross profit from sales to the eCommerce and retail stores segments. | ||||||||||||||||
Business segment asset information is summarized as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Total assets for reportable segments: | ||||||||||||||||
UGG wholesale | $ | 538,934 | $ | 377,997 | ||||||||||||
Teva wholesale | 48,074 | 59,641 | ||||||||||||||
Sanuk wholesale | 204,617 | 209,861 | ||||||||||||||
Other wholesale | 34,699 | 29,446 | ||||||||||||||
eCommerce | 3,711 | 5,058 | ||||||||||||||
Retail stores | 159,453 | 134,804 | ||||||||||||||
$ | 989,488 | $ | 816,807 | |||||||||||||
The assets allocable to each segment include accounts receivable, inventory, fixed assets, intangible assets, and certain other assets that are specifically identifiable with one of the Company’s segments. Unallocated assets are the assets not specifically related to the segments and include cash and cash equivalents, deferred tax assets, and various other assets shared by the Company’s segments. Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets are as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Total assets for reportable segments | $ | 989,488 | $ | 816,807 | ||||||||||||
Unallocated cash and cash equivalents | 84,107 | 110,247 | ||||||||||||||
Unallocated deferred tax assets | 31,279 | 30,662 | ||||||||||||||
Other unallocated corporate assets | 171,064 | 110,348 | ||||||||||||||
Consolidated total assets | $ | 1,275,938 | $ | 1,068,064 | ||||||||||||
A portion of the Company’s cash and cash equivalents are held as cash in operating accounts that are with third party financial institutions. These balances, at times, exceed the Federal Deposit Insurance Corporation (FDIC) insurance limits. While the Company regularly monitors the cash balances in its operating accounts and adjusts the balances as appropriate, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. As of September 30, 2013, the Company had experienced no loss or lack of access to cash in its operating accounts. | ||||||||||||||||
The remainder of the Company’s cash equivalents is invested in interest bearing funds managed by third party investment management institutions. These investments can include US treasury bonds and securities, money market funds, and municipal bonds, among other investments. Certain of these investments are subject to general credit, liquidity, market, and interest rate risks. Investment risk has been and may further be exacerbated by US mortgage defaults, credit and liquidity issues, and sovereign debt concerns in Europe, which have affected various sectors of the financial markets. As of September 30, 2013, the Company had experienced no loss or lack of access to its invested cash and cash equivalents. The Company’s cash and cash equivalents are as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Money market fund accounts | $ | 35,167 | $ | 52,650 | ||||||||||||
Cash | 48,940 | 57,597 | ||||||||||||||
Total Cash and Cash Equivalents | $ | 84,107 | $ | 110,247 | ||||||||||||
The Company sells its products to customers throughout the US and to foreign customers located in Europe, Canada, Australia, Asia, and Latin America, among other regions. International sales were 38.3% and 35.6% of the Company’s total net sales for the three months ended September 30, 2013 and 2012, respectively. International sales were 35.2% and 34.0% of the Company’s total net sales for the nine months ended September 30, 2013 and 2012, respectively. For the nine months ended September 30, 2013 and 2012, no single foreign country comprised more than 10% of total net sales. The Company does not consider international operations a separate segment, as management reviews such operations in the aggregate with the aforementioned segments. Long-lived assets, which consist of property and equipment, in the US and all other countries combined were as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
US | $ | 126,866 | $ | 89,423 | ||||||||||||
All other countries* | 37,546 | 35,947 | ||||||||||||||
Total | $ | 164,412 | $ | 125,370 | ||||||||||||
* No foreign country’s long-lived assets comprised more than 10% of total long-lived assets as of September 30, 2013 and December 31, 2012. | ||||||||||||||||
Management performs regular evaluations concerning the ability of its customers to satisfy their obligations and records a provision for doubtful accounts based upon these evaluations. No single customer accounted for more than 10% of net sales for either the nine months ended September 30, 2013 or 2012. As of September 30, 2013, no single customer accounted for more than 10% of net trade accounts receivable. As of December 31, 2012, one customer accounted for 18.8% of net trade accounts receivable. | ||||||||||||||||
The Company’s production is concentrated at a limited number of independent contractor factories. The Company’s materials sourcing is concentrated in Australia and China and includes a limited number of key sources for sheepskin, the principal raw material for certain UGG products. The Company’s operations are subject to the customary risks of doing business abroad, including, but not limited to, currency fluctuations, customs duties and related fees, various import controls and other nontariff barriers, restrictions on the transfer of funds, labor unrest and strikes and, in certain parts of the world, political instability. The supply of sheepskin can be adversely impacted by weather conditions, disease, and harvesting decisions that are completely outside the Company’s control. Further, the price of sheepskin is impacted by demand, industry, and competitors. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||
Commitments and Contingencies | |||||||||||||||||||
The Company is currently involved in various legal claims arising in the ordinary course of business. Management does not believe that the disposition of these matters, whether individually or in the aggregate, will have a material effect on the Company’s financial position or results of operations. | |||||||||||||||||||
Contingent Consideration. In July 2011, the Company acquired the Sanuk brand, and the total purchase price included contingent consideration payments. As of September 30, 2013, the remaining contingent consideration payments, which have no maximum, are as follows: | |||||||||||||||||||
· 36.0% of the Sanuk brand gross profit in 2013, and | |||||||||||||||||||
· 40.0% of the Sanuk brand gross profit in 2015. | |||||||||||||||||||
As of September 30, 2013 and December 31, 2012, contingent consideration for the acquisition of the Sanuk brand of $45,216 and $70,360, respectively, is included within other accrued expenses ($18,352 and $25,450 at September 30, 2013 and December 31, 2012, respectively) and long-term liabilities ($26,864 and $44,910 at September 30, 2013 and December 31, 2012, respectively) in the condensed consolidated balance sheets. Refer to note 5 for further information on the contingent consideration amounts. | |||||||||||||||||||
In September 2012, the Company acquired Hoka, and the total purchase price included contingent consideration payments with a maximum of $2,000. As of September 30, 2013 and December 31, 2012, contingent consideration for the acquisition of the Hoka brand of $1,700 and $1,100, respectively, is included within other accrued expenses and long-term liabilities in the condensed consolidated balance sheets. Refer to note 5 for further information on the contingent consideration amounts. | |||||||||||||||||||
Purchase Obligations. The Company has unconditional purchase obligations relating to sheepskin contracts. The Company enters into contracts requiring minimum purchase commitments of sheepskin that Deckers’ affiliates, manufacturers, factories, and other agents (each, a Buyer) must make on or before a specified target date. Under certain contracts, the Company may pay an advance deposit, which is included in other current assets on the condensed consolidated balance sheets and shall be repaid to the Company as Buyers purchase goods under the terms of these agreements. In the event that a Buyer does not purchase certain minimum commitments on or before certain target dates, the supplier may retain a portion of the advance deposit until the amounts of the commitments are fulfilled. These agreements may result in unconditional purchase obligations if a Buyer does not meet the minimum purchase requirements. In the event that a Buyer does not purchase such minimum commitments by the target dates, the Company shall be responsible for compliance with any and all minimum purchase commitments under these contracts, and the Company would make additional deposit payments towards the purchase of the remaining minimum commitments and such additional deposits would be returned as the Buyers purchase the remaining minimum commitments. The contracts do not permit net settlement. Minimum commitments for these contracts as of September 30, 2013 were as follows: | |||||||||||||||||||
Contract | Final | Advance | Total | Remaining | Remaining | ||||||||||||||
Effective Date | Target Date | Deposit | Minimum | Deposit | Commitment, Net | ||||||||||||||
Commitment | of Deposit | ||||||||||||||||||
October 2011 | September 2014 | $ | 50,000 | $ | 286,000 | $ | 38,273 | $ | 27,598 | ||||||||||
October 2012 | September 2013 | $ | — | $ | 83,000 | $ | — | $ | 3,746 | ||||||||||
April 2013 | September 2014 | $ | — | $ | 26,750 | $ | — | $ | 26,750 | ||||||||||
Sep-13 | Sep-14 | $ | — | $ | 50,730 | $ | — | $ | 50,730 | ||||||||||
Income Taxes. The Company files income tax returns in the US federal jurisdiction and various state, local, and foreign jurisdictions. When tax returns are filed, some positions taken are subject to uncertainty about the merits of the position taken or the amount that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which the Company believes it is more likely than not that the position will be sustained upon examination. Tax positions that meet the more likely than not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement. The portion of the benefits that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying condensed consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. With few exceptions, the Company is no longer subject to US federal, state, local, or non-US income tax examinations by tax authorities for years before 2008. | |||||||||||||||||||
Although the Company believes its tax estimates are reasonable and prepares its tax filings in accordance with all applicable tax laws, the final determination with respect to any tax audits, and any related litigation, could be materially different from the Company’s estimates or from its historical income tax provisions and accruals. The results of an audit or litigation could have a material effect on operating results or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, or interest assessments. | |||||||||||||||||||
The Company has ongoing income tax examinations under various state tax jurisdictions. It is the opinion of management that these audits and inquiries will not have a material impact on the Company’s condensed consolidated financial statements. | |||||||||||||||||||
Indemnification. The Company has agreed to indemnify certain of its licensees, distributors, and promotional partners in connection with claims related to the use of the Company’s intellectual property. The terms of such agreements range up to five years initially and generally do not provide for a limitation on the maximum potential future payments. From time to time, the Company also agrees to indemnify its licensees, distributors and promotional partners in connection with claims that the Company’s products infringe the intellectual property rights of third parties. These agreements may or may not be made pursuant to a written contract. | |||||||||||||||||||
Management believes the likelihood of any payments under any of these arrangements is remote and would be immaterial. This determination was made based on a prior history of insignificant claims and related payments. There are no currently pending claims relating to indemnification matters involving the Company’s intellectual property. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Goodwill and Other Intangible Assets | ' | |||||||
Goodwill and Other Intangible Assets | ||||||||
The Company’s goodwill and other intangible assets are summarized as follows: | ||||||||
Goodwill, Net | Other | |||||||
Intangible | ||||||||
Assets, Net | ||||||||
Balance at December 31, 2012* | $ | 128,725 | $ | 95,965 | ||||
Purchases of intangible assets | — | 701 | ||||||
Amortization expense | — | (5,798 | ) | |||||
Changes in foreign currency exchange rates | — | 118 | ||||||
Balance at September 30, 2013 | $ | 128,725 | $ | 90,986 | ||||
The Company’s goodwill by segment is as follows: | ||||||||
30-Sep-13 | 31-Dec-12 | |||||||
UGG brand | $ | 6,101 | $ | 6,101 | ||||
Sanuk brand | 113,944 | 113,944 | ||||||
Other brands | 8,680 | 8,680 | ||||||
Total | $ | 128,725 | $ | 128,725 | ||||
*The above tables, as well as the Condensed Consolidated Balance Sheet at December 31, 2012, have been retrospectively adjusted to reflect adjustments to the purchase price allocation from our prior year acquisition. Goodwill was increased and other intangible assets were decreased by $2,458. |
General_Policies
General (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
(a) Basis of Presentation | |
The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual audited consolidated financial statements and, in the opinion of management, reflect all adjustments necessary for a fair presentation for each of the periods presented. The results of operations for interim periods are not necessarily indicative of results to be achieved for full fiscal years or other interim periods. Deckers Outdoor Corporation (also referred to as Deckers or the Company) is a global leader in designing, marketing and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high performance activities. The Company’s business is seasonal, with the highest percentage of UGG® brand net sales occurring in the third and fourth quarters and the highest percentage of Teva® and Sanuk® brand net sales occurring in the first and second quarters of each year. The other brands do not have a significant seasonal impact on the Company. | |
Prior to April 2, 2012, the Company owned 51% of a joint venture with an affiliate of Stella International Holdings Limited (Stella International) for the primary purpose of opening and operating retail stores for the UGG brand in China. Stella International is also one of the Company’s major manufacturers in China. On April 2, 2012, the Company purchased, for a total purchase price of $20,000, the 49% noncontrolling interest owned by Stella International. The Company accounted for this transaction as an acquisition of the remaining interest of an entity that had already been majority-owned by the Company. The purchase resulted in a reduction to additional paid in capital of $14,037 representing excess purchase price over the carrying amount of the noncontrolling interest. Prior to this purchase, the Company already had a controlling interest in this entity, and therefore, the subsidiary had been and will continue to be consolidated with the Company’s operations. | |
In May 2012, the Company purchased a noncontrolling interest in the Hoka One One® (Hoka) brand, a privately held footwear company, which was accounted for as an equity method investment. In September 2012, the Company acquired the remaining ownership interest in Hoka. The Company does not expect the acquisition of Hoka to be material to the Company’s condensed consolidated financial statements or have a significant seasonal impact on the Company throughout 2013. | |
We sell our brands through our quality domestic retailers and international distributors and retailers, as well as directly to our end-user consumers through our eCommerce business and our retail stores. Independent third parties manufacture all of our products. | |
As contemplated by the Securities and Exchange Commission (SEC) under Rule 10-01 of Regulation S-X, the accompanying condensed consolidated financial statements and related footnotes have been condensed and do not contain certain information that will be included in the Company’s annual consolidated financial statements and footnotes thereto. For further information, refer to the consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, filed with the SEC on March 1, 2013 (Annual Report). | |
Use of Estimates | ' |
(b) Use of Estimates | |
The preparation of the Company’s condensed consolidated financial statements in accordance with US generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to inventory write-downs, accounts receivable reserves, returns liabilities, stock compensation, performance based compensation, impairment assessments, depreciation and amortization, income tax liabilities and uncertain tax positions, fair value of financial instruments, and fair values of acquired intangibles, assets and liabilities, including estimated contingent consideration payments. Actual results could differ materially from these estimates. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (AOCL) (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ' | |||||||
Components of accumulated other comprehensive loss | ' | |||||||
Accumulated balances of the components within accumulated other comprehensive loss were as follows: | ||||||||
September 30, | 31-Dec-12 | |||||||
2013 | ||||||||
Unrealized loss on foreign currency hedging, net of tax | $ | (452 | ) | $ | — | |||
Cumulative foreign currency translation adjustment, net of tax | (265 | ) | (1,400 | ) | ||||
Accumulated other comprehensive loss | $ | (717 | ) | $ | (1,400 | ) |
Net_Loss_per_Share_Attributabl1
Net Loss per Share Attributable to Deckers Outdoor Corporation Common Stockholders (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of reconciliations of basic to diluted weighted-average common shares outstanding | ' | |||||||||||
The reconciliations of basic to diluted weighted-average common shares outstanding were as follows: | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Weighted-average shares used in basic computation | 34,496,000 | 36,129,000 | 34,451,000 | 37,534,000 | ||||||||
Dilutive effect of stock-based awards* | 298,000 | 448,000 | 341,000 | 460,000 | ||||||||
Weighted-average shares used for diluted computation | 34,794,000 | 36,577,000 | 34,792,000 | 37,994,000 | ||||||||
*Excluded NSUs | 274,000 | 199,000 | 274,000 | 199,000 | ||||||||
*Excluded RSUs | 639,000 | 671,000 | 639,000 | 671,000 | ||||||||
*Excluded SARs | 525,000 | 525,000 | 525,000 | 525,000 | ||||||||
*Excluded options | — | — | — | — | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of Company's financial assets and liabilities measured on a recurring basis at fair value | ' | |||||||||||||||
The table below summarizes the Company’s financial assets and liabilities that are measured on a recurring basis at fair value: | ||||||||||||||||
Fair value at September 30, | Fair Value Measurement Using | |||||||||||||||
2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets (liabilities) at fair value | ||||||||||||||||
Nonqualified deferred compensation asset | $ | 4,168 | $ | 4,168 | $ | — | $ | — | ||||||||
Nonqualified deferred compensation liability | $ | (4,168 | ) | $ | (4,168 | ) | $ | — | $ | — | ||||||
Non-designated derivatives assets | $ | 94 | $ | — | $ | 94 | $ | — | ||||||||
Designated derivatives liability | $ | (696 | ) | $ | — | $ | (696 | ) | $ | — | ||||||
Non-designated derivatives liability | $ | (126 | ) | $ | — | $ | (126 | ) | $ | — | ||||||
Contingent consideration for acquisition of business | $ | (46,923 | ) | $ | — | $ | — | $ | (46,923 | ) | ||||||
Fair value at December 31, | Fair Value Measurement Using | |||||||||||||||
2012 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets (liabilities) at fair value | ||||||||||||||||
Nonqualified deferred compensation asset | $ | 3,653 | $ | 3,653 | $ | — | $ | — | ||||||||
Nonqualified deferred compensation liability | $ | (3,653 | ) | $ | (3,653 | ) | $ | — | $ | — | ||||||
Non-designated derivatives assets | $ | 839 | $ | — | $ | 839 | $ | — | ||||||||
Non-designated derivatives liabilities | $ | (336 | ) | $ | — | $ | (336 | ) | $ | — | ||||||
Contingent consideration for acquisition of business | $ | (71,460 | ) | $ | — | $ | — | $ | (71,460 | ) | ||||||
Schedule of reconciliation of beginning and ending amounts related to the fair value for contingent consideration for acquisition of business, categorized as Level 3 | ' | |||||||||||||||
The following table presents a reconciliation of the Level 3 measurement: | ||||||||||||||||
Balance, December 31, 2012 | $ | 71,500 | ||||||||||||||
Payments | (25,400 | ) | ||||||||||||||
Change in fair value | 800 | |||||||||||||||
Balance, September 30, 2013 | $ | 46,900 | ||||||||||||||
Foreign_Currency_Exchange_Cont1
Foreign Currency Exchange Contracts and Hedging (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of location and amount of gains and losses related to derivatives designated as hedging instruments reported in consolidated financial statements | ' | ||||||||||||||||
The following table summarizes the effect of foreign exchange contracts designated as cash flow hedging relationships on the condensed consolidated financial statements: | |||||||||||||||||
For the Nine Months Ended September 30, | Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Reclassified from AOCI into Income (Effective Portion) | Location of Amount Excluded from Effectiveness Testing | Gain (Loss) from Amount Excluded from Effectiveness Testing | ||||||||||||
2013 | $ | (690 | ) | Net sales | $ | 597 | SG&A | $ | (12 | ) | |||||||
2012 | $ | (1,707 | ) | Net sales | $ | 1,141 | SG&A | $ | 23 | ||||||||
The following table summarizes the effect of foreign exchange contracts not designated as hedging instruments on the condensed consolidated financial statements: | |||||||||||||||||
For the Nine Months Ended September 30, | Location of Gain (Loss) Recognized in Income (Loss) on Derivatives | Amount of Gain (Loss) Recognized in Income (Loss) on Derivatives | |||||||||||||||
2013 | SG&A | $ | (32 | ) | |||||||||||||
2012 | SG&A | $ | (272 | ) |
Business_Segments_Concentratio1
Business Segments, Concentration of Business, and Credit Risk and Significant Customers (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedule of business segments information | ' | |||||||||||||||
The results of operations for Hoka are included in the other brands segments beginning from the acquisition date. The wholesale operations of the Company’s other brands are included as one reportable segment, other wholesale, presented in the figures below. Business segment information is summarized as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net sales to external customers: | ||||||||||||||||
UGG wholesale | $ | 273,677 | $ | 284,075 | $ | 418,749 | $ | 454,652 | ||||||||
Teva wholesale | 15,893 | 15,922 | 95,145 | 96,087 | ||||||||||||
Sanuk wholesale | 16,649 | 17,008 | 74,446 | 76,003 | ||||||||||||
Other wholesale | 12,993 | 6,991 | 31,340 | 16,933 | ||||||||||||
eCommerce | 14,884 | 13,263 | 52,234 | 42,968 | ||||||||||||
Retail stores | 52,629 | 39,133 | 148,656 | 110,491 | ||||||||||||
$ | 386,725 | $ | 376,392 | $ | 820,570 | $ | 797,134 | |||||||||
Income (loss) from operations: | ||||||||||||||||
UGG wholesale | $ | 82,256 | $ | 90,177 | $ | 95,827 | $ | 111,273 | ||||||||
Teva wholesale | (1,366 | ) | (1,377 | ) | 10,423 | 11,947 | ||||||||||
Sanuk wholesale | 3,657 | 2,856 | 19,506 | 16,158 | ||||||||||||
Other wholesale | (189 | ) | (21 | ) | (5,258 | ) | (2,032 | ) | ||||||||
eCommerce | 2,678 | 3,281 | 13,283 | 13,855 | ||||||||||||
Retail stores | (2,260 | ) | 321 | (1,612 | ) | 8,507 | ||||||||||
Unallocated overhead costs | (38,279 | ) | (35,628 | ) | (125,771 | ) | (116,874 | ) | ||||||||
$ | 46,497 | $ | 59,609 | $ | 6,398 | $ | 42,834 | |||||||||
Business segment asset information is summarized as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Total assets for reportable segments: | ||||||||||||||||
UGG wholesale | $ | 538,934 | $ | 377,997 | ||||||||||||
Teva wholesale | 48,074 | 59,641 | ||||||||||||||
Sanuk wholesale | 204,617 | 209,861 | ||||||||||||||
Other wholesale | 34,699 | 29,446 | ||||||||||||||
eCommerce | 3,711 | 5,058 | ||||||||||||||
Retail stores | 159,453 | 134,804 | ||||||||||||||
$ | 989,488 | $ | 816,807 | |||||||||||||
Schedule of reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ' | |||||||||||||||
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets are as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Total assets for reportable segments | $ | 989,488 | $ | 816,807 | ||||||||||||
Unallocated cash and cash equivalents | 84,107 | 110,247 | ||||||||||||||
Unallocated deferred tax assets | 31,279 | 30,662 | ||||||||||||||
Other unallocated corporate assets | 171,064 | 110,348 | ||||||||||||||
Consolidated total assets | $ | 1,275,938 | $ | 1,068,064 | ||||||||||||
Schedule of the Company's cash and cash equivalents | ' | |||||||||||||||
The Company’s cash and cash equivalents are as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Money market fund accounts | $ | 35,167 | $ | 52,650 | ||||||||||||
Cash | 48,940 | 57,597 | ||||||||||||||
Total Cash and Cash Equivalents | $ | 84,107 | $ | 110,247 | ||||||||||||
Schedule of long-lived assets, which consist of property and equipment, by major country | ' | |||||||||||||||
Long-lived assets, which consist of property and equipment, in the US and all other countries combined were as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
US | $ | 126,866 | $ | 89,423 | ||||||||||||
All other countries* | 37,546 | 35,947 | ||||||||||||||
Total | $ | 164,412 | $ | 125,370 | ||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||
Schedule of minimum purchase commitments | ' | ||||||||||||||||||
Minimum commitments for these contracts as of September 30, 2013 were as follows: | |||||||||||||||||||
Contract | Final | Advance | Total | Remaining | Remaining | ||||||||||||||
Effective Date | Target Date | Deposit | Minimum | Deposit | Commitment, Net | ||||||||||||||
Commitment | of Deposit | ||||||||||||||||||
October 2011 | September 2014 | $ | 50,000 | $ | 286,000 | $ | 38,273 | $ | 27,598 | ||||||||||
October 2012 | September 2013 | $ | — | $ | 83,000 | $ | — | $ | 3,746 | ||||||||||
April 2013 | September 2014 | $ | — | $ | 26,750 | $ | — | $ | 26,750 | ||||||||||
Sep-13 | Sep-14 | $ | — | $ | 50,730 | $ | — | $ | 50,730 | ||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule of goodwill and other intangible assets | ' | |||||||
The Company’s goodwill and other intangible assets are summarized as follows: | ||||||||
Goodwill, Net | Other | |||||||
Intangible | ||||||||
Assets, Net | ||||||||
Balance at December 31, 2012* | $ | 128,725 | $ | 95,965 | ||||
Purchases of intangible assets | — | 701 | ||||||
Amortization expense | — | (5,798 | ) | |||||
Changes in foreign currency exchange rates | — | 118 | ||||||
Balance at September 30, 2013 | $ | 128,725 | $ | 90,986 | ||||
Schedule of total goodwill by segment | ' | |||||||
The Company’s goodwill by segment is as follows: | ||||||||
30-Sep-13 | 31-Dec-12 | |||||||
UGG brand | $ | 6,101 | $ | 6,101 | ||||
Sanuk brand | 113,944 | 113,944 | ||||||
Other brands | 8,680 | 8,680 | ||||||
Total | $ | 128,725 | $ | 128,725 | ||||
General_Details
General (Details) (USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Apr. 02, 2012 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Ownership interest held by the company | 51.00% |
Stella International Holdings Limited | ' |
Ownership interest acquired | ' |
Purchase price of ownership interest acquired | $20,000 |
Ownership interest acquired in joint venture (as a percent) | 49.00% |
Reduction in additional paid in capital | $14,037 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Stockholders' equity | ' | ' | ' | ' |
Weighted-average grant date fair value of awards (in dollars per share) | ' | $54.59 | ' | ' |
Maximum stock repurchase amount approved by Board of Directors | $200,000 | ' | ' | ' |
Remaining stock repurchase amount approved by Board of Directors | ' | ' | 79,300 | ' |
Number of shares repurchased | ' | 0 | 0 | 2,765,000 |
Repurchase of common stock, payments | ' | ' | ' | 120,700 |
Average stock price of shares repurchased (in dollars per share) | ' | ' | ' | $43.66 |
2006 Equity Incentive Plan (2006 Plan) | ' | ' | ' | ' |
Stockholders' equity | ' | ' | ' | ' |
Common stock reserved for issuance (in shares) | ' | 6,000,000 | 6,000,000 | ' |
Maximum number of shares that may be issued through the exercise of incentive stock options | ' | 4,500,000 | 4,500,000 | ' |
2006 Equity Incentive Plan (2006 Plan) | Nonvested stock units issued (NSUs) | ' | ' | ' | ' |
Stockholders' equity | ' | ' | ' | ' |
Number of shares granted | ' | 298,250 | 15,750 | ' |
Weighted-average grant date fair value of awards (in dollars per share) | ' | ' | $57.29 | ' |
Future unrecognized compensation cost, excluding estimated forfeitures | ' | $13,000 | $13,000 | ' |
2006 Equity Incentive Plan (2006 Plan) | Nonvested stock units issued (NSUs) | Award granted in 2012 | ' | ' | ' | ' |
Stockholders' equity | ' | ' | ' | ' |
NSUs granted that will vest at the end of each of the three years after the performance goals are achieved (as a percent) | ' | ' | 33.30% | ' |
Award vesting period of the grants | ' | ' | '3 years | ' |
2006 Equity Incentive Plan (2006 Plan) | Nonvested stock units issued (NSUs) | Award granted in 2013 | ' | ' | ' | ' |
Stockholders' equity | ' | ' | ' | ' |
NSUs granted that will vest at the end of each of the three years after the performance goals are achieved (as a percent) | ' | ' | 33.30% | ' |
Award vesting period of the grants | ' | ' | '3 years | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (AOCL) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated other comprehensive loss | ' | ' |
Unrealized loss on foreign currency hedging, net of tax | ($452) | $0 |
Cumulative foreign currency translation adjustment, net of tax | -265 | -1,400 |
Accumulated other comprehensive loss | ($717) | ($1,400) |
Net_Loss_per_Share_Attributabl2
Net Loss per Share Attributable to Deckers Outdoor Corporation Common Stockholders (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||
Reconciliations of basic to diluted weighted-average common shares outstanding | ' | ' | ' | ' | ||||
Weighted-average shares used in basic computation | 34,496,000 | 36,129,000 | 34,451,000 | 37,534,000 | ||||
Dilutive effect of stock-based awards | 298,000 | [1] | 448,000 | [1] | 341,000 | [1] | 460,000 | [1] |
Weighted-average shares used in diluted computation | 34,794,000 | 36,577,000 | 34,792,000 | 37,994,000 | ||||
Exclude NSUs | ' | ' | ' | ' | ||||
Options excluded in the computation of diluted income per share | ' | ' | ' | ' | ||||
Options excluded in the computation of diluted income per share (in shares) | 274,000 | [1] | 199,000 | [1] | 274,000 | [1] | 199,000 | [1] |
Exclude RSUs | ' | ' | ' | ' | ||||
Options excluded in the computation of diluted income per share | ' | ' | ' | ' | ||||
Options excluded in the computation of diluted income per share (in shares) | 639,000 | [1] | 671,000 | [1] | 639,000 | [1] | 671,000 | [1] |
Excluded SARs | ' | ' | ' | ' | ||||
Options excluded in the computation of diluted income per share | ' | ' | ' | ' | ||||
Options excluded in the computation of diluted income per share (in shares) | 525,000 | [1] | 525,000 | [1] | 525,000 | [1] | 525,000 | [1] |
Excluded options | ' | ' | ' | ' | ||||
Options excluded in the computation of diluted income per share | ' | ' | ' | ' | ||||
Options excluded in the computation of diluted income per share (in shares) | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] |
[1] | The share-based awards that were excluded from the dilutive effect were excluded because necessary conditions had not been satisfied for the shares to be issuable based on the Companybs performance through the three and nine months ended September 30, 2013 and 2012, respectively. The excluded awards include the maximum amounts achievable for these awards. |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Recurring basis, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value | ' | ' |
Assets (Liabilities) at fair value | ' | ' |
Nonqualified deferred compensation assets | $4,168 | $3,653 |
Nonqualified deferred compensation liability | -4,168 | -3,653 |
Non-designated derivatives assets | 94 | 839 |
Designated derivatives liability | -696 | ' |
Non-designated derivatives liability | -126 | -336 |
Contingent consideration for acquisition of business | -46,923 | -71,460 |
Level 1 | ' | ' |
Assets (Liabilities) at fair value | ' | ' |
Nonqualified deferred compensation assets | 4,168 | 3,653 |
Nonqualified deferred compensation liability | -4,168 | -3,653 |
Level 2 | ' | ' |
Assets (Liabilities) at fair value | ' | ' |
Non-designated derivatives assets | 94 | 839 |
Designated derivatives liability | -696 | ' |
Non-designated derivatives liability | -126 | -336 |
Level 3 | ' | ' |
Assets (Liabilities) at fair value | ' | ' |
Contingent consideration for acquisition of business | ($46,923) | ($71,460) |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (Contingent Consideration Arrangement, USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Reconciliation of beginning and ending amounts related to the fair value for contingent consideration for acquisition of business, categorized as Level 3 | ' |
Balance at the beginning of the period | $71,500 |
Payments | -25,400 |
Change in fair value | 800 |
Balance at the end of the period | 46,900 |
Contingent consideration | ' |
Contingent consideration arrangement for acquisition of businesses | 2,000 |
Forecast | ' |
Contingent consideration | ' |
Compound annual growth rate (CAGR) (as a percent) | 16.90% |
Discount rate (as percent) | 7.00% |
Percentage point change to compound annual growth rate | 5.00% |
Effect of a five-percentage-point change to total liability | 4,000 |
Forecast | Minimum | ' |
Contingent consideration | ' |
Gross profit range | 52,000 |
Forecast | Maximum | ' |
Contingent consideration | ' |
Gross profit range | $80,000 |
Foreign_Currency_Exchange_Cont2
Foreign Currency Exchange Contracts and Hedging (Details) (USD $) | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Foreign currency exchange contracts | Derivatives designated as cash flow hedges | Derivatives designated as cash flow hedges | Non-designated derivatives | Non-designated derivatives | |||
counterparty | Foreign currency exchange contracts | Foreign currency exchange contracts | Foreign currency exchange contracts | Foreign currency exchange contracts | |||
Foreign currency exchange contracts and hedging | ' | ' | ' | ' | ' | ' | ' |
Notional amounts of foreign currency hedging contracts | ' | ' | ' | $38,000 | ' | $22,000 | $19,000 |
Remaining maturity of outstanding foreign currency forward contracts, maximum | ' | ' | '3 months | ' | ' | ' | ' |
Number of counterparties in derivative contracts | ' | ' | 2 | ' | ' | ' | ' |
Summary of the effect of derivative instruments on the consolidated statements of income | ' | ' | ' | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | -32 | -272 | ' | -690 | -1,707 | ' | ' |
Reclassified from AOCI into Income (Effective Portion) | ' | ' | ' | 597 | 1,141 | ' | ' |
Gain (Loss) from Amount Excluded from Effectiveness Testing | ' | ' | ' | ($12) | $23 | ' | ' |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | '6 months | ' | ' | ' | ' | ' | ' |
Credit_Agreement_Details
Credit Agreement (Details) | 1 Months Ended | 1 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Nov. 12, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | China Credit Agreement | China Credit Agreement | China Credit Agreement | |
USD ($) | USD ($) | USD ($) | Subsequent Event | Subsequent Event | USD ($) | CNY | Subsequent Event | |
USD ($) | USD ($) | USD ($) | ||||||
Notes Payable and Long-Term Debt | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in additional borrowings allowed per amendment | $12,500 | ' | ' | ' | ' | ' | ' | ' |
Additional borrowing related to headquarters allowed under Credit Agreement covenants prior to amendment | 80,000 | ' | 75,000 | ' | ' | ' | ' | ' |
Amount allowed to be borrowed in the third and fourth quarters | ' | ' | ' | ' | ' | 10,000 | 60,000 | ' |
Amount borrowed | ' | ' | ' | 31,000 | 3,000 | ' | ' | ' |
Outstanding borrowings | ' | 239,000 | ' | 243,000 | ' | 7,000 | ' | 10,000 |
Weighted average interest rate (as a percent) | ' | 1.69% | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit | ' | 200 | ' | ' | ' | ' | ' | ' |
Amount unused balance under the Credit Agreement | ' | 160,800 | ' | ' | ' | ' | ' | ' |
Current borrowing capacity | ' | 110,600 | ' | ' | ' | ' | ' | ' |
Amount allowed to be borrowed in the first and second quarters | ' | ' | ' | ' | ' | 3,300 | 20,000 | ' |
Effective interest rate on debt | ' | ' | ' | ' | ' | 6.00% | 6.00% | ' |
Percentage of facility amount in USD guaranteed | ' | ' | ' | ' | ' | 110.00% | 110.00% | ' |
Repaid on borrowings | ' | ' | ' | $27,000 | ' | ' | ' | ' |
Business_Segments_Concentratio2
Business Segments, Concentration of Business, and Credit Risk and Significant Customers (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
component | |||||
segment | |||||
Segment Reporting [Abstract] | ' | ' | ' | ' | ' |
Number of components of gross profit derived from sale to third parties | ' | ' | 2 | ' | ' |
Number of reportable segments in which other brands are included | ' | ' | 1 | ' | ' |
Business segment information | ' | ' | ' | ' | ' |
Net sales to external customers | $386,725 | $376,392 | $820,570 | $797,134 | ' |
Income (loss) from operations: | 46,497 | 59,609 | 6,398 | 42,834 | ' |
Total assets | 1,275,938 | ' | 1,275,938 | ' | 1,068,064 |
Inter-segment profit on inter-segment sales | ' | ' | 0 | ' | ' |
Reportable segments | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' |
Total assets | 989,488 | ' | 989,488 | ' | 816,807 |
UGG wholesale | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' |
Net sales to external customers | 273,677 | 284,075 | 418,749 | 454,652 | ' |
Income (loss) from operations: | 82,256 | 90,177 | 95,827 | 111,273 | ' |
Total assets | 538,934 | ' | 538,934 | ' | 377,997 |
Teva wholesale | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' |
Net sales to external customers | 15,893 | 15,922 | 95,145 | 96,087 | ' |
Income (loss) from operations: | -1,366 | -1,377 | 10,423 | 11,947 | ' |
Total assets | 48,074 | ' | 48,074 | ' | 59,641 |
Sanuk wholesale | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' |
Net sales to external customers | 16,649 | 17,008 | 74,446 | 76,003 | ' |
Income (loss) from operations: | 3,657 | 2,856 | 19,506 | 16,158 | ' |
Total assets | 204,617 | ' | 204,617 | ' | 209,861 |
Other wholesale | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' |
Net sales to external customers | 12,993 | 6,991 | 31,340 | 16,933 | ' |
Income (loss) from operations: | -189 | -21 | -5,258 | -2,032 | ' |
Total assets | 34,699 | ' | 34,699 | ' | 29,446 |
eCommerce | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' |
Net sales to external customers | 14,884 | 13,263 | 52,234 | 42,968 | ' |
Income (loss) from operations: | 2,678 | 3,281 | 13,283 | 13,855 | ' |
Total assets | 3,711 | ' | 3,711 | ' | 5,058 |
Retail stores | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' |
Net sales to external customers | 52,629 | 39,133 | 148,656 | 110,491 | ' |
Income (loss) from operations: | -2,260 | 321 | -1,612 | 8,507 | ' |
Total assets | 159,453 | ' | 159,453 | ' | 134,804 |
Unallocated to Segments | ' | ' | ' | ' | ' |
Business segment information | ' | ' | ' | ' | ' |
Income (loss) from operations: | ($38,279) | ($35,628) | ($125,771) | ($116,874) | ' |
Business_Segments_Concentratio3
Business Segments, Concentration of Business, and Credit Risk and Significant Customers (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ' | ' | ' | ' |
Cash and cash equivalents | $84,107 | $110,247 | $61,636 | $263,606 |
Consolidated total assets | 1,275,938 | 1,068,064 | ' | ' |
Reportable segments | ' | ' | ' | ' |
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ' | ' | ' | ' |
Consolidated total assets | 989,488 | 816,807 | ' | ' |
Unallocated to Segments | ' | ' | ' | ' |
Reconciliations of total assets from reportable segments to the condensed consolidated balance sheets | ' | ' | ' | ' |
Cash and cash equivalents | 84,107 | 110,247 | ' | ' |
Unallocated deferred tax assets | 31,279 | 30,662 | ' | ' |
Other unallocated corporate assets | $171,064 | $110,348 | ' | ' |
Business_Segments_Concentratio4
Business Segments, Concentration of Business, and Credit Risk and Significant Customers (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | International Net Sales | International Net Sales | International Net Sales | International Net Sales | Net Trade Accounts Receivable | US | US | All other countries | All other countries | ||||
Customer One | Long-lived assets | Long-lived assets | Long-lived assets | Long-lived assets | |||||||||
customer | |||||||||||||
Cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Money market fund accounts | $35,167 | $52,650 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | 48,940 | 57,597 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total cash and cash equivalents | 84,107 | 110,247 | 61,636 | 263,606 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets, which consist of property and equipment, by major country | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, by major country | $164,412 | $125,370 | ' | ' | ' | ' | ' | ' | ' | $126,866 | $89,423 | $37,546 | $35,947 |
Concentration risks | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of customers considered concentration risk | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' |
Concentration risk (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 18.80% | ' | ' | ' | ' |
Concentration risk benchmark (as a percent) | ' | ' | ' | ' | 38.30% | 35.60% | 35.20% | 34.00% | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Concentration risks | ' | ' | ' |
Maximum indemnity period of claims for intellectual property | '5 years | ' | ' |
Indemnification | ' | ' | ' |
Concentration risks | ' | ' | ' |
Number of pending claims | 0 | ' | ' |
Sanuk | ' | ' | ' |
Commitments and Contingencies | ' | ' | ' |
Contingent consideration | $45,216 | $70,360 | ' |
Contingent consideration included within other accrued expenses | 18,352 | 25,450 | ' |
Contingent consideration included within long-term liabilities | 26,864 | 44,910 | ' |
Sanuk | Gross profit performance criteria | ' | ' | ' |
Commitments and Contingencies | ' | ' | ' |
Contingent consideration performance percentage applied to gross profit in 2013 | 36.00% | ' | ' |
Contingent consideration performance percentage applied to gross profit in 2015 | 40.00% | ' | ' |
Hoka | ' | ' | ' |
Commitments and Contingencies | ' | ' | ' |
Contingent consideration | 1,700 | 1,100 | ' |
Maximum contingent consideration payments | ' | ' | 2,000 |
Purchase commitments entered in October 2011 | ' | ' | ' |
Commitments and Contingencies | ' | ' | ' |
Advance Deposits | 50,000 | ' | ' |
Total Minimum Commitment | 286,000 | ' | ' |
Remaining Deposit | 38,273 | ' | ' |
Remaining Commitments, Net of Deposit | 27,598 | ' | ' |
Purchase commitments entered in October 2012 | ' | ' | ' |
Commitments and Contingencies | ' | ' | ' |
Total Minimum Commitment | 83,000 | ' | ' |
Remaining Commitments, Net of Deposit | 3,746 | ' | ' |
Purchase commitments entered in April 2013 | ' | ' | ' |
Commitments and Contingencies | ' | ' | ' |
Total Minimum Commitment | 26,750 | ' | ' |
Remaining Commitments, Net of Deposit | 26,750 | ' | ' |
Purchase commitments entered in September 2013 | ' | ' | ' |
Commitments and Contingencies | ' | ' | ' |
Total Minimum Commitment | 50,730 | ' | ' |
Remaining Commitments, Net of Deposit | $50,730 | ' | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Changes in goodwill | ' |
Goodwill, net, balance at the beginning of the period | $128,725 |
Goodwill, net, balance at the end of the period | 128,725 |
Other intangible assets, net: | ' |
Other intangible assets, net, balance at beginning of the period | 95,965 |
Purchases of intangible assets | 701 |
Amortization expense | -5,798 |
Changes in foreign currency exchange rates | 118 |
Other intangible assets, net, balance at end of the period | $90,986 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2013 |
Goodwill | ' | ' |
Goodwill | $128,725 | $128,725 |
Decrease in other tangible assets | 2,458 | ' |
Increase in goodwill | 2,458 | ' |
UGG brand | ' | ' |
Goodwill | ' | ' |
Goodwill | 6,101 | 6,101 |
Sanuk wholesale | ' | ' |
Goodwill | ' | ' |
Goodwill | 113,944 | 113,944 |
Other wholesale | ' | ' |
Goodwill | ' | ' |
Goodwill | $8,680 | $8,680 |