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General (Tables) | 12 Months Ended
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Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Restructuring and Related Costs | Through March 31, 2019, the Company had incurred cumulative restructuring charges by applicable reportable operating segment as follows:
| Years Ended March 31, |  | Cumulative Restructuring Charges*
| 2019 |  | 2018 |  | 2017 |
UGG brand wholesale | $ | — |  |  | $ | — |  |  | $ | 2,238 |  |  | $ | 2,238 |
Sanuk brand wholesale | — |  |  | — |  |  | 20 |  |  | 3,068 |
Other brands wholesale | — |  |  | — |  |  | 102 |  |  | 2,263 |
Direct-to-Consumer | — |  |  | 149 |  |  | 12,771 |  |  | 23,454 |
Unallocated overhead costs | 295 |  |  | 1,518 |  |  | 13,853 |  |  | 24,596 |
Total | $ | 295 |  |  | $ | 1,667 |  |  | $ | 28,984 |  |  | $ | 55,619 |
*Cumulative restructuring charges include restructuring charges of $24,673, which were incurred during the fiscal year ended March 31, 2016.
Schedule of Restructuring Reserve by Type of Cost | The remaining accrued liabilities for cumulative restructuring charges incurred to date under the Company’s restructuring plan, are as follows:
| Lease Termination |  | Retail Store Fixed Asset Impairment |  | Severance Costs |  | Software and Office Fixed Asset Impairment |  | Other* |  | Total
Balance as of March 31, 2016 | $ | 7,629 |  |  | $ | — |  |  | $ | 3,436 |  |  | $ | — |  |  | $ | 1,809 |  |  | $ | 12,874 |
Additional charges | 8,986 |  |  | 3,614 |  |  | 5,773 |  |  | 3,199 |  |  | 7,412 |  |  | 28,984 |
Paid in cash | (12,043 | ) |  | — |  |  | (6,403 | ) |  | — |  |  | (5,268 | ) |  | (23,714 | )
Non-cash | — |  |  | (3,614 | ) |  | (251 | ) |  | (3,199 | ) |  | — |  |  | (7,064 | )
Balance as of March 31, 2017 | 4,572 |  |  | — |  |  | 2,555 |  |  | — |  |  | 3,953 |  |  | 11,080 |
Additional charges | 149 |  |  | — |  |  | — |  |  | — |  |  | 1,518 |  |  | 1,667 |
Paid in cash | (1,076 | ) |  | — |  |  | (2,555 | ) |  | — |  |  | (4,388 | ) |  | (8,019 | )
Balance as of March 31, 2018 | 3,645 |  |  | — |  |  | — |  |  | — |  |  | 1,083 |  |  | 4,728 |
Additional charges | 295 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 295 |
Paid in cash | (1,856 | ) |  | — |  |  | — |  |  | — |  |  | (581 | ) |  | (2,437 | )
Balance as of March 31, 2019 | $ | 2,084 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 502 |  |  | $ | 2,586 |
*Includes costs related to office consolidations and termination of contracts and services.
Schedule of property and equipment | Property and equipment are summarized as follows:
|  |  | As of March 31,
| Useful life (years) |  | 2019 |  | 2018
Land | Indefinite |  | $ | 32,864 |  |  | $ | 32,863 |
Building | 39.5 |  | 39,643 |  |  | 38,945 |
Machinery and equipment | 1-10 |  | 152,486 |  |  | 141,255 |
Furniture and fixtures | 3-7 |  | 38,326 |  |  | 38,473 |
Computer software | 3-10 |  | 77,372 |  |  | 72,310 |
Leasehold improvements | 1-11 |  | 109,044 |  |  | 107,079 |
Gross property and equipment |  |  | 449,735 |  |  | 430,925 |
Less accumulated depreciation and amortization |  |  | (235,939 | ) |  | (210,763 | )
Property and equipment, net |  |  | $ | 213,796 |  |  | $ | 220,162 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following is a summary of each standard and the impact on the Company:
Standard |  | Description |  | Impact on Adoption
ASU No. 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments |  | Eliminates the diversity in practice related to the classification of certain cash receipts and payments. |  | This ASU was adopted by the Company on April 1, 2018. The Company evaluated its business policies and processes around cash receipts and payments and determined that this ASU did not have a material impact on its consolidated financial statements and related disclosures.
ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory |  | Requires that the income tax impact of intra-entity sales and transfers of property, except for inventory, be recognized when the transfer occurs. |  | This ASU was adopted by the Company on April 1, 2018. The Company evaluated its business policies and processes around intra-entity transfers of assets, other than inventory, and determined that this ASU did not have a material impact on its consolidated financial statements and related disclosures.
ASU No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting |  | Modification accounting is required to be applied for share-based payment awards immediately before the original award is modified unless the fair value, vesting conditions, and classification of the modified awards are the same as the fair value, vesting conditions and classification of the original award, respectively. |  | This ASU was adopted by the Company on April 1, 2018. The Company evaluated its business policies and processes around share-based payment modifications and determined that this ASU did not have a material impact on its consolidated financial statements and related disclosures.
Standard |  | Description |  | Impact on Adoption
ASU No. 2014-09, Revenue from Contracts with Customers (as amended by ASUs 2015-14, 2016-08, 2016-10, 2016-11, 2016-12, 2016-20, 2017-13, and 2017-14) |  | Requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and replaces most existing revenue recognition guidance under US GAAP. The FASB issued additional guidance which clarifies how to apply the implementation guidance related to principal versus agent considerations, how to identify performance obligations, as well as licensing implementation guidance. |  | The Company adopted this ASU (the “new revenue standard”) using the modified retrospective transition method, beginning April 1, 2018. Prior to adoption, the Company deferred recognition of revenue for certain wholesale and E-Commerce sales arrangements until the product was delivered. However, the Company elected the practical expedient allowed under the new revenue standard to define shipping and handling costs as a fulfillment service, not a performance obligation. Accordingly, the Company will now recognize revenue for these arrangements upon shipment of product, rather than delivery. As a result, on adoption of this ASU, the Company recorded a cumulative effect adjustment net after tax increase to opening retained earnings of approximately $1,000 in its consolidated balance sheets. This prospective change in accounting policy will impact comparatives to prior reported fiscal years as net sales and deferred revenue are recognized and recorded in the Company’s consolidated financial statements under legacy US GAAP. The Company historically recorded a trade accounts receivable allowance for sales returns (“allowance for sales returns”) related to its wholesale channel sales, and the cost of sales for the product-related inventory was recorded in inventories, net of reserves, in its consolidated balance sheets. As of March 31, 2018, the Company recorded an allowance for sales returns for the wholesale channel of $20,848 and product-related inventory for all channels of $11,251 in its consolidated balance sheets. As of June 30, 2018, and in connection with the adoption of the new revenue standard, the Company reclassified the allowance for sales returns for the wholesale channel of $9,816 to other accrued expenses and the product-related inventory for all channels of $4,819 to other current assets in its consolidated balance sheets. For the DTC channel, the allowance for sales returns was recorded in other accrued expenses, which is consistent with the prior period presented. The comparative consolidated financial statements have not been adjusted and continue to be reported under legacy US GAAP. Refer to Note 2, “Revenue Recognition,” for expanded disclosures regarding this change in accounting policy and refer to Note 12, “Reportable Operating Segments,” for the Company’s disaggregation of revenue by distribution channel and region.
Not Yet Adopted. The FASB has issued the following ASUs that have not yet been adopted by the Company. The following is a summary of each such standard, the planned period of adoption and the expected impact on the Company on adoption:
Standard |  | Description |  | Planned Period of Adoption |  | Expected Impact on Adoption
ASU No. 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (as amended by ASUs 2018-16 and 2019-04) |  | Seeks to improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities and to reduce the complexity of and simplify the application of hedge accounting. This ASU eliminates the requirement to separately measure and report hedge ineffectiveness. It also eases certain documentation and assessment requirements. |  | Q1 FY 2020 |  | The Company has completed an initial assessment of the effect that the adoption of this ASU will have on its consolidated financial statements and related disclosures. The Company will eliminate separate measurement of hedge ineffectiveness and will recognize the entire change in fair value for its cash flow hedges in its consolidated statements of comprehensive income (loss) in the same location as the hedged item. This change is not expected to have a material impact on the Company’s consolidated financial statements.
Standard |  | Description |  | Planned Period of Adoption |  | Expected Impact on Adoption
ASU No. 2016-02, Leases (as amended by ASUs 2015-14, 2018-01, 2018-10, 2018-11, 2018-20, and 2019-01) |  | Requires a lessee to recognize a lease asset and lease liability in its consolidated balance sheets. A lessee should recognize a right-of-use (ROU) asset representing its right to use the underlying asset for the lease term, and a liability to make lease payments. |  | Q1 FY 2020 |  | The Company has substantially completed an assessment of the effect that the adoption of this ASU will have on its consolidated financial statements and related disclosures and expects a material impact. The result is expected to be an approximately $219,000 to $239,000 increase in assets due to the recognition of a ROU asset and approximate corresponding increase for a related lease liability of $246,000 to $266,000, including lease commitments that are currently classified as operating leases, such as retail stores, showrooms, offices, and distribution facilities. The Company does not believe the standard will materially affect the consolidated statements of comprehensive income (loss). The classification and recognition of lease expense is not expected to materially change from legacy US GAAP. Further, the adoption of this ASU will result in expanded disclosures on existing and new lease commitments, for which the Company is in the process of developing drafts of new footnote disclosures required under this ASU that will be disclosed in the Company's Form 10-Q for the first quarter of fiscal year 2020. The Company expects to adopt this ASU on a prospective basis and elect the “package of practical expedients” allowed with adoption of this ASU, which provides a number of transition options, including (1) exemption from reassessment of prior conclusions about lease identification, classification and initial direct costs; (2) the ability to elect a short-term lease recognition exemption for current and new vehicles, IT and office equipment leases that qualify to be excluded from the recognized ROU asset and related liability; and the (3) option to not separate lease and non-lease components. In addition, the Company expects to not apply the hindsight election and will maintain lease terms as estimated at inception of the lease. The Company does not expect a significant change in its lease portfolio and business practices leading up to adoption of this ASU. Further, the Company has selected a software provider, has a project team in place and implementation is materially complete. The Company does not believe the ASU will have a notable impact on its liquidity or expects an impact on the Company’s debt-covenant compliance under its current agreements.
ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (as amended by ASUs 2018-19 and 2019-04) |  | Replaces the incurred loss impairment methodology in legacy US GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. |  | Q1 FY 2021 |  | The Company is evaluating the timing and effect that adoption of this ASU will have on its consolidated financial statements and related disclosures.
ASU No. 2017-04, Goodwill and Other: Simplifying the Test for Goodwill Impairment |  | Requires annual and interim goodwill impairment tests be performed by comparing the fair value of a reporting unit with its carrying amount, effectively eliminating step two of the goodwill impairment test under legacy US GAAP. The amount by which the carrying amount exceeds the reporting unit’s fair value should be recognized as an impairment charge. |  | Q1 FY 2021 |  | The Company is evaluating the timing and effect that adoption of this ASU will have on its consolidated financial statements and related disclosures.

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