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Reportable Operating Segments | 6 Months Ended
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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 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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