DECKERS OUTDOOR CORP, 10-Q filed on 2/7/2022
Quarterly Report
v3.22.0.1
COVER PAGE - shares
9 Months Ended
Dec. 31, 2021
Jan. 20, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Dec. 31, 2021  
Document Transition Report false  
Entity File Number 001-36436  
Entity Registrant Name DECKERS OUTDOOR CORP  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 95-3015862  
Entity Address, Address Line One 250 Coromar Drive  
Entity Address, City or Town Goleta  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 93117  
City Area Code 805  
Local Phone Number 967-7611  
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol DECK  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   27,241,283
Entity Central Index Key 0000910521  
Amendment Flag false  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q3  
Current Fiscal Year End Date --03-31  
v3.22.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Thousands
Dec. 31, 2021
Mar. 31, 2021
ASSETS    
Cash and cash equivalents $ 998,261 $ 1,089,361
Trade accounts receivable, net of allowances ($40,965 and $26,516 as of December 31, 2021 and March 31, 2021, respectively) 334,541 215,718
Inventories 550,749 278,242
Prepaid expenses 28,231 16,924
Other current assets 68,773 44,244
Income tax receivable 14,052 6,310
Total current assets 1,994,607 1,650,799
Property and equipment, net of accumulated depreciation ($278,877 and $266,905 as of December 31, 2021 and March 31, 2021, respectively) 221,013 206,210
Operating lease assets 180,073 186,991
Goodwill 13,990 13,990
Other intangible assets, net of accumulated amortization ($78,745 and $77,473 as of December 31, 2021 and March 31, 2021, respectively) 40,252 41,945
Deferred tax assets, net 40,881 37,194
Other assets 56,752 30,576
Total assets 2,547,568 2,167,705
LIABILITIES AND STOCKHOLDERS' EQUITY    
Trade accounts payable 482,059 231,632
Accrued payroll 49,866 79,152
Operating lease liabilities 48,290 46,768
Other accrued expenses 100,605 68,995
Income tax payable 26,769 36,920
Value added tax payable 20,341 4,901
Total current liabilities 727,930 468,368
Long-term operating lease liabilities 171,314 176,274
Income tax liability 58,029 60,094
Other long-term liabilities 25,553 18,744
Total long-term liabilities 254,896 255,112
Commitments and contingencies (Note 6)
Stockholders' equity    
Common stock ($0.01 par value; 125,000 shares authorized; shares issued and outstanding of 27,243 and 27,910 as of December 31, 2021 and March 31, 2021, respectively) 272 279
Additional paid-in capital 209,795 203,310
Retained earnings 1,373,832 1,257,379
Accumulated other comprehensive loss (19,157) (16,743)
Total stockholders' equity 1,564,742 1,444,225
Total liabilities and stockholders' equity $ 2,547,568 $ 2,167,705
v3.22.0.1
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2021
Mar. 31, 2021
Statement of Financial Position [Abstract]    
Trade accounts receivable, allowances $ 40,965 $ 26,516
Accumulated depreciation 278,877 266,905
Accumulated amortization $ 78,745 $ 77,473
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, authorized shares (in shares) 125,000,000 125,000,000
Common stock, issued shares (in shares) 27,243,000 27,910,000
Common stock, outstanding shares (in shares) 27,243,000 27,910,000
v3.22.0.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Income Statement [Abstract]        
Net sales $ 1,187,752 $ 1,077,759 $ 2,414,332 $ 1,984,453
Cost of sales 566,531 463,862 1,165,520 909,013
Gross profit 621,221 613,897 1,248,812 1,075,440
Selling, general, and administrative expenses 327,825 285,242 765,403 625,880
Income from operations 293,396 328,655 483,409 449,560
Interest income (369) (593) (1,311) (1,719)
Interest expense 999 959 2,808 3,354
Other income, net (191) (267) (376) (523)
Total other expense, net 439 99 1,121 1,112
Income before income taxes 292,957 328,556 482,288 448,448
Income tax expense 60,014 73,020 99,158 99,331
Net income 232,943 255,536 383,130 349,117
Other comprehensive (loss) income        
Unrealized (loss) gain on cash flow hedges, net of tax (1,517) (279) 974 (726)
Foreign currency translation (loss) gain (2,744) 7,947 (3,388) 14,995
Total other comprehensive (loss) income (4,261) 7,668 (2,414) 14,269
Comprehensive income $ 228,682 $ 263,204 $ 380,716 $ 363,386
Net income per share        
Basic (in dollars per share) $ 8.49 $ 9.09 $ 13.87 $ 12.44
Diluted (in dollars per share) $ 8.42 $ 8.99 $ 13.73 $ 12.30
Weighted-average common shares outstanding        
Basic (in shares) 27,428 28,114 27,630 28,054
Diluted (in shares) 27,663 28,410 27,904 28,375
v3.22.0.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Mar. 31, 2020   27,999,000      
Beginning balance at Mar. 31, 2020 $ 1,140,120 $ 280 $ 191,451 $ 973,948 $ (25,559)
Increase (Decrease) in Stockholders' Equity          
Stock-based compensation (in shares)   1,000      
Stock-based compensation 3,618   3,618    
Shares issued upon vesting (in shares)   1,000      
Exercise of stock options (in shares)   4,000      
Exercise of stock options 247   247    
Shares withheld for taxes (90)   (90)    
Net income (loss) (7,973)     (7,973)  
Total other comprehensive income (loss) 1,006       1,006
Ending balance (in shares) at Jun. 30, 2020   28,005,000      
Ending balance at Jun. 30, 2020 1,136,928 $ 280 195,226 965,975 (24,553)
Beginning balance (in shares) at Mar. 31, 2020   27,999,000      
Beginning balance at Mar. 31, 2020 1,140,120 $ 280 191,451 973,948 (25,559)
Increase (Decrease) in Stockholders' Equity          
Net income (loss) 349,117        
Total other comprehensive income (loss) 14,269        
Ending balance (in shares) at Dec. 31, 2020   28,152,000      
Ending balance at Dec. 31, 2020 1,520,121 $ 282 208,064 1,323,065 (11,290)
Beginning balance (in shares) at Jun. 30, 2020   28,005,000      
Beginning balance at Jun. 30, 2020 1,136,928 $ 280 195,226 965,975 (24,553)
Increase (Decrease) in Stockholders' Equity          
Stock-based compensation (in shares)   1,000      
Stock-based compensation 4,019   4,019    
Shares issued upon vesting (in shares)   60,000      
Shares issued upon vesting 698 $ 1 697    
Exercise of stock options (in shares)   16,000      
Exercise of stock options 1,134   1,134    
Shares withheld for taxes (6,964)   (6,964)    
Net income (loss) 101,554     101,554  
Total other comprehensive income (loss) 5,595       5,595
Ending balance (in shares) at Sep. 30, 2020   28,082,000      
Ending balance at Sep. 30, 2020 1,242,964 $ 281 194,112 1,067,529 (18,958)
Increase (Decrease) in Stockholders' Equity          
Stock-based compensation (in shares)   1,000      
Stock-based compensation 9,900   9,900    
Shares issued upon vesting (in shares)   1,000      
Exercise of stock options (in shares)   68,000      
Exercise of stock options 4,202 $ 1 4,201    
Shares withheld for taxes (149)   (149)    
Net income (loss) 255,536     255,536  
Total other comprehensive income (loss) 7,668       7,668
Ending balance (in shares) at Dec. 31, 2020   28,152,000      
Ending balance at Dec. 31, 2020 1,520,121 $ 282 208,064 1,323,065 (11,290)
Beginning balance (in shares) at Mar. 31, 2021   27,910,000      
Beginning balance at Mar. 31, 2021 1,444,225 $ 279 203,310 1,257,379 (16,743)
Increase (Decrease) in Stockholders' Equity          
Stock-based compensation (in shares)   1,000      
Stock-based compensation 5,469   5,469    
Exercise of stock options (in shares)   1,000      
Exercise of stock options 69   69    
Shares withheld for taxes (85)   (85)    
Repurchases of common stock (in shares)   (249,000)      
Repurchases of common stock (82,166) $ (2)   (82,164)  
Net income (loss) 48,124     48,124  
Total other comprehensive income (loss) 3,351       3,351
Ending balance (in shares) at Jun. 30, 2021   27,663,000      
Ending balance at Jun. 30, 2021 1,418,987 $ 277 208,763 1,223,339 (13,392)
Beginning balance (in shares) at Mar. 31, 2021   27,910,000      
Beginning balance at Mar. 31, 2021 $ 1,444,225 $ 279 203,310 1,257,379 (16,743)
Increase (Decrease) in Stockholders' Equity          
Repurchases of common stock (in shares) (735,976)        
Repurchases of common stock $ (266,684)        
Net income (loss) 383,130        
Total other comprehensive income (loss) (2,414)        
Ending balance (in shares) at Dec. 31, 2021   27,243,000      
Ending balance at Dec. 31, 2021 1,564,742 $ 272 209,795 1,373,832 (19,157)
Beginning balance (in shares) at Jun. 30, 2021   27,663,000      
Beginning balance at Jun. 30, 2021 1,418,987 $ 277 208,763 1,223,339 (13,392)
Increase (Decrease) in Stockholders' Equity          
Stock-based compensation (in shares)   1,000      
Stock-based compensation 6,288   6,288    
Shares issued upon vesting (in shares)   36,000      
Shares issued upon vesting 914   914    
Shares withheld for taxes (9,195)   (9,195)    
Repurchases of common stock (in shares)   (133,000)      
Repurchases of common stock (53,807) $ (1)   (53,806)  
Net income (loss) 102,063     102,063  
Total other comprehensive income (loss) (1,504)       (1,504)
Ending balance (in shares) at Sep. 30, 2021   27,567,000      
Ending balance at Sep. 30, 2021 1,463,746 $ 276 206,770 1,271,596 (14,896)
Increase (Decrease) in Stockholders' Equity          
Stock-based compensation 6,386   6,386    
Shares issued upon vesting (in shares)   2,000      
Exercise of stock options (in shares)   28,000      
Exercise of stock options 1,135   1,135    
Shares withheld for taxes (4,496)   (4,496)    
Repurchases of common stock (in shares)   (354,000)      
Repurchases of common stock (130,711) $ (4)   (130,707)  
Net income (loss) 232,943     232,943  
Total other comprehensive income (loss) (4,261)       (4,261)
Ending balance (in shares) at Dec. 31, 2021   27,243,000      
Ending balance at Dec. 31, 2021 $ 1,564,742 $ 272 $ 209,795 $ 1,373,832 $ (19,157)
v3.22.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Thousands
9 Months Ended
Dec. 31, 2021
Dec. 31, 2020
OPERATING ACTIVITIES    
Net income $ 383,130 $ 349,117
Reconciliation of net income to net cash used in by operating activities:    
Depreciation, amortization, and accretion 31,202 30,637
Amortization on cloud computing arrangements 1,154 420
Bad debt (benefit) expense (254) 6,392
Deferred tax (benefit) expense (4,263) 1,859
Stock-based compensation 18,281 17,559
Loss on disposal of long-lived assets 37 259
Impairment of operating lease and other long-lived assets 3,186 4,060
Gain on settlement of asset retirement obligations 0 (207)
Changes in operating assets and liabilities:    
Trade accounts receivable, net (118,568) (133,708)
Inventories (272,508) 6,321
Prepaid expenses and other current assets (33,936) (32,387)
Income tax receivable (7,743) (2,305)
Net operating lease assets and lease liabilities 2,643 1,652
Other assets (27,331) (3,023)
Trade accounts payable 246,964 152,797
Other accrued expenses 10,782 75,658
Income tax payable (10,151) 45,843
Other long-term liabilities 4,745 1,318
Net cash provided by operating activities 227,370 522,262
INVESTING ACTIVITIES    
Purchases of property and equipment (41,315) (21,300)
Proceeds from sales of property and equipment 0 49
Net cash used in investing activities (41,315) (21,251)
FINANCING ACTIVITIES    
Proceeds from short-term borrowings 0 9,100
Repayments of short-term borrowings 0 (9,478)
Proceeds from issuance of stock 914 698
Proceeds from exercise of stock options 1,204 5,583
Repurchases of common stock (266,684) 0
Cash paid for shares withheld for taxes (13,776) (7,203)
Repayments of mortgage principal 0 (470)
Net cash used in financing activities (278,342) (1,770)
Effect of foreign currency exchange rates on cash and cash equivalents 1,187 7,879
Net change in cash and cash equivalents (91,100) 507,120
Cash and cash equivalents at beginning of period 1,089,361 649,436
Cash and cash equivalents at end of period 998,261 1,156,556
Cash paid during the period    
Income taxes, net of refunds of $77 and $1,489, as of December 31, 2021 and 2020, respectively 124,651 56,957
Interest 1,399 2,336
Operating leases 43,257 43,263
Non-cash investing activities    
Accrued for purchases of property and equipment 240 1,900
Accrued for asset retirement obligations 3,702 1,595
Leasehold improvements acquired through tenant allowances $ 4,061 $ 0
v3.22.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($)
$ in Thousands
9 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Statement of Cash Flows [Abstract]    
Income tax refunds $ 77 $ 1,489
v3.22.0.1
General
9 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
General General
The Company. Deckers Outdoor Corporation and its wholly owned subsidiaries (collectively, the Company) are global leaders in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high-performance activities. As part of its omni-channel platform, the Company's proprietary brands are aligned across its Fashion Lifestyle group, which includes the UGG and Koolaburra brands, and Performance Lifestyle group, which includes the HOKA, Teva, and Sanuk brands.

The Company sells its products through domestic and international retailers, international distributors, and directly to its global consumers through its Direct-to-Consumer (DTC) business, which is comprised of its retail stores and e‑commerce websites. Independent third-party contractors manufacture all of the Company's products. A significant part of the Company's business is seasonal, requiring it to build inventory levels during certain quarters in its fiscal year to support higher selling seasons, which contributes to variation in its results from quarter to quarter.

Basis of Presentation. The unaudited condensed consolidated financial statements and accompanying notes thereto (referred to herein as condensed consolidated financial statements) as of December 31, 2021 and for the three and nine months ended December 31, 2021 and 2020 are prepared in accordance with generally accepted accounting principles in the United States (US GAAP) for interim financial information pursuant to Rule 10-01 of Regulation S-X issued by the SEC. Accordingly, the condensed consolidated financial statements do not include all the information and disclosures required by US GAAP for annual financial statements and accompanying notes thereto. The condensed consolidated balance sheet as of March 31, 2021 is derived from the Company's audited consolidated financial statements. In the opinion of management, the condensed consolidated financial statements include all normal and recurring entries necessary to fairly present the results of the interim periods presented but are not necessarily indicative of actual results to be achieved for full fiscal years or other interim periods. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2021 (prior fiscal year), which was filed with the SEC on May 28, 2021 (2021 Annual Report).

Consolidation. The condensed consolidated financial statements include the accounts of Deckers Outdoor Corporation and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates. The preparation of the Company's condensed consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the amounts reported. 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. In addition, the Company has considered the potential impact of the COVID-19 global pandemic (pandemic) on its business and operations. Although the full impact of the pandemic is unknown and cannot be reasonably estimated, the Company believes it has made appropriate accounting estimates and assumptions based on the facts and circumstances available as of the reporting date. However, actual results could differ materially from these estimates and assumptions, which may result in material effects on the Company's financial condition, results of operations, and liquidity. To the extent there are differences between these estimates and actual results, the Company's condensed consolidated financial statements may be materially affected.

Significant areas requiring the use of management estimates and assumptions relate to inventory write-downs; trade accounts receivable allowances, including variable consideration for net sales provided to customers, such as allowances for doubtful accounts, sales discounts, and chargebacks; estimated sales return liability; contract liabilities; valuation of inventories; stock-based compensation; impairment assessments, including valuations for goodwill, other intangible assets, and long-lived assets, as well as operating lease assets and lease liabilities; depreciation and amortization; income tax receivables and liabilities; uncertain tax positions; the fair value of financial instruments; the reasonably certain lease term; lease classification; and the Company's incremental borrowing rate utilized to discount its unpaid lease payments to measure its operating lease assets and lease liabilities.
Reportable Operating Segments. The Company's six reportable operating segments include the worldwide wholesale operations for each of the UGG brand, HOKA brand, Teva brand, Sanuk brand, and Other brands, as well as DTC (collectively, the Company's reportable operating segments). Refer to Note 11, “Reportable Operating Segments,” for further information on the Company's reportable operating segments.

Impairment of Operating Lease and Other Long-Lived Assets. During the three and nine months ended December 31, 2021, the Company recorded impairment losses for retail store operating lease and other long-lived assets due to performance or store closures of $3,186, within its DTC reportable operating segment in SG&A expenses in the condensed consolidated statements of comprehensive income. For the three and nine months ended December 31, 2020, the Company recorded total impairment charges of $1,380 and $4,060, respectively.

Recent Accounting Pronouncements. The Financial Accounting Standards Board has issued Accounting Standard Updates (ASU) that have been recently adopted and not yet adopted by the Company for its annual and interim reporting periods, as stated below.

Recently Adopted. The following is a summary of each ASU recently adopted by and its impact on the Company:
StandardDescriptionImpact Upon Adoption
ASU No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes
Removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation, and calculating income taxes in interim periods, and reduces complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group.The Company adopted this ASU on a retrospective basis beginning April 1, 2021 and concluded that this ASU did not have a material impact on its condensed consolidated financial statements.

Not Yet Adopted. The following is a summary of each ASU issued that is applicable to and has not yet been adopted, as well as the planned period of adoption and the expected impact on the Company upon its adoption:
StandardDescriptionPlanned Period of AdoptionExpected Impact Upon Adoption
ASU No. 2020-04, 
Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting
(as amended by ASU 2021-01)
London Interbank Offered Rate (LIBOR) is a benchmark interest rate referenced in a variety of agreements that are used by all types of entities. At the end of 2021, banks will no longer be required to report information that is used to determine LIBOR. As a result, LIBOR could be discontinued. Other interest rates used globally could also be discontinued for similar reasons.

This ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. Guidance is limited for adoption through December 31, 2022.
Q3 FY 2023The Company is currently evaluating the impact of the adoption of this ASU; however, the Company does not expect that the adoption will have a material impact on its condensed consolidated financial statements.
v3.22.0.1
Revenue Recognition
9 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue RecognitionRevenue is recognized when a performance obligation is completed at a point in time and when the customer has obtained control. Control passes to the customer when they have the ability to direct the use of, and obtain substantially all the remaining benefits from, the goods transferred. The amount of revenue recognized is based on the transaction price, which represents the invoiced amount less known actual amounts or estimates of variable consideration.
Variable Consideration. Components of variable consideration include estimated sales discounts, markdowns or chargebacks, and sales returns. Estimates for variable consideration are based on the amounts earned or estimates to be claimed as an adjustment to sales. Estimated variable consideration is included in the transaction price to the extent it is probable that a significant reversal of the cumulative revenue recognized will not occur in a future period. The Company's customer contracts do not have a significant financing component due to their short durations, which are typically effective for one year or less and have payment terms that are generally 30 to 60 days.

Sales Return Liability. Reserves are recorded for anticipated future returns of goods shipped prior to the end of the reporting period. In general, the Company accepts returns for damaged or defective products for up to one year. The Company also has a policy whereby returns are generally accepted from customers between 30 to 90 days from the point of sale for cash or credit. Amounts of these reserves are based on known and actual returns, historical returns, and any recent events that could result in a change from historical return rates.

Activity during the nine months ended December 31, 2021 related to estimated sales returns is as follows:
Recovery AssetRefund Liability
Balance, March 31, 2021$10,704 $(37,717)
Net additions to sales return allowance*29,603 (122,153)
Actual returns(26,774)111,851 
Balance, December 31, 2021$13,533 $(48,019)

Activity during the nine months ended December 31, 2020 related to estimated sales returns is as follows:
Recovery AssetRefund Liability
Balance, March 31, 2020$9,663 $(25,667)
Net additions to sales return allowance*33,883 (122,069)
Actual returns(27,234)93,787 
Balance, December 31, 2020$16,312 $(53,949)

*Net additions to the sales return liability include a provision for anticipated sales returns, which consists of both contractual return rights and discretionary authorized returns.

Contract Liabilities. Contract liabilities are performance obligations that the Company expects to satisfy or relieve within the next 12 months, advance consideration obtained prior to satisfying a performance obligation, or unconditional obligations to provide goods or services under non-cancelable contracts before the transfer of goods or services to the customer has occurred. Contract liabilities are recorded in other accrued expenses in the condensed consolidated balance sheets.

Loyalty Programs. The Company has a loyalty program for the UGG brand in its DTC channel where consumers can earn rewards from qualifying purchases or activities. As of December 31, 2021 and March 31, 2021, the Company's contract liability for loyalty programs is $17,031 and $12,231, respectively.

Deferred Revenue. Deferred revenue results when customer cash payments are received prior to transfer of control of ordered product, which occurs either when shipped or delivered in accordance with the contractual terms. These cash payments include amounts which are refundable. The Company recognizes deferred revenue into net sales in its wholesale channel. As of December 31, 2021 and March 31, 2021, the Company's contract liability for deferred revenue is $13,591 and $5,425, respectively.

Refer to Note 11, “Reportable Operating Segments,” for further information on the Company's disaggregation of revenue by reportable operating segment.
v3.22.0.1
Fair Value Measurements
9 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The accounting standard for fair value measurements provides a framework for measuring fair value, which is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy under this accounting standard requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required:

Level 1: Quoted prices in active markets for identical assets and liabilities.

Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities.

Level 3: Unobservable inputs in which little or no market activity exists, therefore requiring the Company to develop its own assumptions.

The carrying amount of the Company’s financial instruments, which principally include cash and cash equivalents, trade accounts receivable, net; trade accounts payable, accrued payroll, and other accrued expenses, approximates fair value due to their short-term nature. The carrying amount of the Company’s short-term borrowings, which are considered Level 2 liabilities, approximates fair value based upon current rates and terms available to the Company for similar debt.

Assets and liabilities measured on a recurring basis at fair value in the condensed consolidated balance sheets are as follows:
Measured Using
December 31, 2021Level 1Level 2Level 3
Non-qualified deferred compensation asset $9,673 $9,673 $— $— 
Non-qualified deferred compensation liability(10,083)(10,083)— — 
Designated Derivative Contracts asset1,285 — 1,285 — 
Non-Designated Derivative Contracts asset23 — 23 — 
Non-Designated Derivative Contracts liability(9)— (9)— 
Measured Using
March 31, 2021Level 1Level 2Level 3
Non-qualified deferred compensation asset $9,107 $9,107 $— $— 
Non-qualified deferred compensation liability(6,692)(6,692)— — 

The Company sponsors a non-qualified deferred compensation plan that permits a select group of management employees to defer earnings to a future date on a non-qualified basis. Deferred compensation is recognized based on the fair value of the participants' accounts. A rabbi trust was established as a reserve for benefits payable under this plan, with the assets invested in Company-owned life insurance policies. As of December 31, 2021, the non-qualified deferred compensation asset of $9,673 is recorded in other assets in the condensed consolidated balance sheets. As of December 31, 2021, the non-qualified deferred compensation liability of $10,083 is recorded in the condensed consolidated balance sheets, with $930 in other accrued expenses and $9,153 in other long-term liabilities.

The fair value of foreign currency forward or option contracts are determined using quoted forward spot rates at the end of the applicable reporting period from counterparties, which are corroborated by market-based pricing (Level 2). The fair values of assets and liabilities associated with derivative instruments and hedging activities are recorded in other current assets and other accrued expenses, respectively, in the condensed consolidated balance sheets. Refer to Note 8, “Derivative Instruments,” for further information, including definitions of the terms Designated Derivative Contracts and Non-Designated Derivative Contracts.
v3.22.0.1
Income Taxes
9 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense and the effective income tax rate were as follows:
Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
Income tax expense$60,014 $73,020 $99,158 $99,331 
Effective income tax rate20.5 %22.2 %20.6 %22.1 %

The tax provisions during the three and nine months ended December 31, 2021 and 2020 were computed using the estimated effective income tax rate applicable to each of the domestic and foreign taxable jurisdictions for the fiscal year ending March 31, 2022 and were adjusted for discrete items that occurred within the periods presented above.

During the three months ended December 31, 2021, the decrease in the effective income tax rate, compared to the prior period, was primarily due to lower income from operations and changes in the jurisdictional mix of worldwide income before income taxes forecasted for the fiscal year ending March 31, 2022, as well as higher net discrete tax benefits, primarily driven by tax deductions for stock-based compensation and return to provision adjustments recorded in the current period.
During the nine months ended December 31, 2021, the decrease in the effective income tax rate, compared to the prior period, was primarily due to higher net discrete tax benefits, primarily driven by tax deductions for stock-based compensation and return to provision adjustments recorded in the current period, partially offset by higher income from operations and changes in the jurisdictional mix of worldwide income before income taxes forecasted for the fiscal year ending March 31, 2022.
v3.22.0.1
Revolving Credit Facilities
9 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Revolving Credit Facilities Revolving Credit Facilities
Primary Credit Facility. In September 2018, the Company entered into a credit agreement (as amended, the Primary Credit Facility) that provides for a five-year, $400,000 unsecured revolving credit facility, contains a $25,000 sublimit for the issuance of letters of credit, and matures on September 20, 2023. At the Company's election, interest under the Primary Credit Facility is tied to the adjusted LIBOR or the alternate base rate (ABR). Interest for borrowings made in foreign currencies is based on currency-specific LIBOR or the Canadian deposit offered rate (CDOR) if made in Canadian dollars. As of December 31, 2021, the effective interest rates for US dollar LIBOR and ABR are 1.23% and 3.38%, respectively.

During the nine months ended December 31, 2021, the Company made no borrowings or repayments under the Primary Credit Facility. As of December 31, 2021, the Company has no outstanding balance, outstanding letters of credit of $549, and available borrowings of $399,451 under the Primary Credit Facility.

China Credit Facility. In August 2013, Deckers (Beijing) Trading Co., Ltd., a wholly owned subsidiary of the Company, entered into a credit agreement in China (as amended, the China Credit Facility) that provides for an uncommitted revolving line of credit of up to CNY300,000, or $47,139, with an overdraft facility sublimit of CNY100,000, or $15,713. The China Credit Facility is payable on demand and subject to annual review with a defined aggregate period of borrowing of up to 12 months. The obligations under the China Credit Facility are guaranteed by the Company for 108.5% of the facility amount in US dollars. Interest is based on the People’s Bank of China (PBOC) market rate multiplied by a variable liquidity factor. As of December 31, 2021, the effective interest rate is 4.10%.

During the nine months ended December 31, 2021, the Company made no borrowings or repayments under the China Credit Facility. As of December 31, 2021, the Company has no outstanding balance, outstanding bank guarantees of $31, and available borrowings of $47,108 under the China Credit Facility.
Japan Credit Facility. In March 2016, Deckers Japan, G.K., a wholly owned subsidiary of the Company, entered into a credit agreement in Japan (as amended, the Japan Credit Facility) that provides for an uncommitted revolving line of credit of up to JPY3,000,000, or $26,064, for a maximum term of six months for each draw on the facility. The Japan Credit Facility can be renewed annually and is guaranteed by the Company. Interest is based on the Tokyo Interbank Offered Rate (TIBOR) plus 0.40%. As of December 31, 2021, the effective interest rate is 0.48%.

During the nine months ended December 31, 2021, the Company made no borrowings or repayments under the Japan Credit Facility. As of December 31, 2021, the Company has no outstanding balance and available borrowings of $26,064 under the Japan Credit Facility.

Debt Covenants. As of December 31, 2021, the Company is in compliance with all financial covenants under the credit facilities.
v3.22.0.1
Commitments and Contingencies
9 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Leases. The Company primarily leases retail stores, showrooms, offices, and distribution facilities under operating lease contracts. Some of the Company's operating leases contain extension options between one and 15 years. Historically, the Company has not entered into finance leases and its lease agreements generally do not contain residual value guarantees, options to purchase underlying assets, or material restrictive covenants.

Supplemental information for amounts presented in the condensed consolidated statements of cash flows related to operating leases, was as follows:
Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
Non-cash operating activities
Operating lease assets obtained in exchange for lease liabilities*$8,859 $1,013 $35,153 $6,882 
Reductions to operating lease assets for reductions to lease liabilities*(4,669)(9,206)(5,293)(11,619)

*Amounts disclosed include non-cash additions or reductions resulting from lease remeasurements.

Litigation. From time to time, the Company is involved in various legal proceedings and claims arising in the ordinary course of business. Although the results of legal proceedings and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these ordinary course matters will not, individually or in the aggregate, have a material adverse effect on its business, results of operations, financial condition, or cash flows. However, regardless of the outcome, litigation can have an adverse impact on the Company because of legal costs, diversion of management time and resources, and other factors.
On March 28, 2016, the Company filed a lawsuit alleging trademark infringement, patent infringement, unfair competition and violation of deceptive trade practices in the US District Court for the Northern District of Illinois Eastern Division (District Court) against Australian Leather. Australian Leather counterclaimed alleging that the UGG brand trademark is invalid. On May 10, 2019, a jury returned a verdict in the Company's favor in its lawsuit against Australian Leather. The District Court entered judgments upholding the UGG brand trademark on February 6 and June 8, 2020. On August 12, 2020, Australian Leather filed an appeal to the US Court of Appeals for the Federal Circuit (Court of Appeals). On May 7, 2021, the Court of Appeals affirmed the District Court’s ruling dismissing Australian Leather’s affirmative defenses and counterclaims and upholding the UGG brand trademark. On October 4, 2021, Australian Leather filed a petition for writ of certiorari asking the US Supreme Court to review the decision of the Court of Appeals. On December 6, 2021, the US Supreme Court denied the petition for writ of certiorari.
Commitments and Contingencies Commitments and Contingencies
Leases. The Company primarily leases retail stores, showrooms, offices, and distribution facilities under operating lease contracts. Some of the Company's operating leases contain extension options between one and 15 years. Historically, the Company has not entered into finance leases and its lease agreements generally do not contain residual value guarantees, options to purchase underlying assets, or material restrictive covenants.

Supplemental information for amounts presented in the condensed consolidated statements of cash flows related to operating leases, was as follows:
Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
Non-cash operating activities
Operating lease assets obtained in exchange for lease liabilities*$8,859 $1,013 $35,153 $6,882 
Reductions to operating lease assets for reductions to lease liabilities*(4,669)(9,206)(5,293)(11,619)

*Amounts disclosed include non-cash additions or reductions resulting from lease remeasurements.

Litigation. From time to time, the Company is involved in various legal proceedings and claims arising in the ordinary course of business. Although the results of legal proceedings and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these ordinary course matters will not, individually or in the aggregate, have a material adverse effect on its business, results of operations, financial condition, or cash flows. However, regardless of the outcome, litigation can have an adverse impact on the Company because of legal costs, diversion of management time and resources, and other factors.
On March 28, 2016, the Company filed a lawsuit alleging trademark infringement, patent infringement, unfair competition and violation of deceptive trade practices in the US District Court for the Northern District of Illinois Eastern Division (District Court) against Australian Leather. Australian Leather counterclaimed alleging that the UGG brand trademark is invalid. On May 10, 2019, a jury returned a verdict in the Company's favor in its lawsuit against Australian Leather. The District Court entered judgments upholding the UGG brand trademark on February 6 and June 8, 2020. On August 12, 2020, Australian Leather filed an appeal to the US Court of Appeals for the Federal Circuit (Court of Appeals). On May 7, 2021, the Court of Appeals affirmed the District Court’s ruling dismissing Australian Leather’s affirmative defenses and counterclaims and upholding the UGG brand trademark. On October 4, 2021, Australian Leather filed a petition for writ of certiorari asking the US Supreme Court to review the decision of the Court of Appeals. On December 6, 2021, the US Supreme Court denied the petition for writ of certiorari.
v3.22.0.1
Stock-Based Compensation
9 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
From time to time, the Company grants various types of stock-based compensation under the 2015 Stock Incentive Plan, as amended (2015 SIP), including time-based restricted stock units (RSUs), performance-based restricted stock units (PSUs), stock appreciation rights, and non-qualified stock options (NQSOs). The Company typically makes annual grants of RSUs (Annual RSUs) and PSUs (Annual PSUs), as well as long-term incentive plan (LTIP) awards, to key personnel, including employees and directors. During the nine months ended December 31, 2021, except for the Annual RSU and LTIP PSU grant activity summarized below, no additional awards were granted under the 2015 SIP. Refer to Note 8, “Stock-Based Compensation,” of our consolidated financial statements in Part IV of our 2021 Annual Report for further information on previously granted awards under the 2015 SIP.    

Annual Awards. The Company granted annual awards under the 2015 SIP, as recorded in the condensed consolidated statements of comprehensive income, as summarized below:
Nine Months Ended December 31,
20212020
Shares GrantedWeighted-average grant date fair value per shareShares GrantedWeighted-average grant date fair value per share
Annual RSUs40,062 $386.17 45,161 $215.66 

Stock-based compensation is recorded net of estimated forfeitures in selling, general, and administrative (SG&A) expenses in the condensed consolidated statements of comprehensive income. The Annual RSUs typically vest in equal annual installments over three years following the date of grant. The Annual PSUs are typically earned based on the achievement of pre-established Company performance criteria measured over the fiscal year during which they are granted and, to the extent the performance criteria are met, vest in equal annual installments over three years thereafter.

Future unrecognized stock-based compensation expense for Annual RSUs and Annual PSUs outstanding as of December 31, 2021 is $14,873.

Long-Term Incentive Plan Awards. During the nine months ended December 31, 2021, the Company approved awards under the 2015 SIP for the issuance of PSUs (2022 LTIP PSUs), which were awarded to certain members of the Company's management team, including the Company's named executive officers and vice presidents. The 2022 LTIP PSUs are subject to vesting based on service conditions over three years. The Company must meet certain revenue and pre-tax income performance targets individually over three reporting periods for the fiscal years ending March 31, 2022, 2023, and 2024 (collectively, the Measurement Periods) and incorporates a relative total stockholder return (TSR) modifier for the 36-month period (commencing April 1, 2021) ending March 31, 2024 (collectively, the Performance Periods). To the extent financial performance is achieved above the threshold levels for each of these performance criteria, the number of 2022 LTIP PSUs that vest will increase up to a maximum of 200% of the targeted amount for that award. No vesting of any portion of the 2022 LTIP PSUs will occur if the Company fails to achieve the minimum revenue and pre-tax income amounts for each reporting period equal to at least 100% of the threshold amounts for these criteria. Following the determination of the Company’s achievement with respect to the revenue and pre-tax income criteria for the Measurement Periods, the vesting of each 2022 LTIP PSU will be subject to adjustment based on the application of a relative TSR modifier. The amount of the adjustment will be determined based on a comparison of the Company's TSR relative to the TSR of a pre-determined set of peer group companies for the Performance Periods. A Monte-Carlo simulation model was used to determine the grant date fair value by simulating a range of possible future stock prices for the Company and each member of the peer group over the Performance Periods.

The Company granted awards at the target performance level of 26,347 2022 LTIP PSUs during the nine months ended December 31, 2021. The weighted-average grant date fair value per share of these 2022 LTIP PSUs was $435.94. Based on the Company's current long-range forecast, the Company determined that the achievement of at least the target performance criteria for these awards was probable as of the grant date.

Future unrecognized stock-based compensation expense for the target level of all LTIP PSUs outstanding as of December 31, 2021, including the 2022 LTIP PSUs discussed above, the 19,890 2021 LTIP PSUs issued in March 2021, and the 38,174 2020 LTIP PSUs issued in September 2019, is $16,956.
v3.22.0.1
Derivative Instruments
9 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
The Company may enter into foreign currency forward or option contracts (derivative contracts), generally with maturities of 15 months or less, to manage foreign currency risk on expected cash flows and certain existing assets and liabilities, primarily intercompany balances. Certain of these derivative contracts are designated as cash flow hedges of forecasted sales (Designated Derivative Contracts). The Company may also enter into derivative contracts that are not designated as cash flow hedges (Non-Designated Derivative Contracts), to offset a portion of anticipated gains and losses on certain intercompany balances until the expected time of repayment. The after-tax unrealized gains or losses from changes in the fair value of Designated Derivative Contracts are recorded as a component of accumulated other comprehensive loss (AOCL) and are reclassified to net sales in the condensed consolidated statements of comprehensive income in the same period or periods as the related sales are recognized. The Company includes all hedge components in its assessment of effectiveness for its derivative contracts.

Changes in the fair value of Non-Designated Derivative Contracts are recorded in SG&A expenses in the condensed consolidated statements of comprehensive income. The changes in fair value for these contracts are generally offset by the remeasurement gains or losses associated with the underlying foreign currency-denominated intercompany balances, which are recorded in SG&A expenses in the condensed consolidated statements of comprehensive income.

As of December 31, 2021, the Company has the following derivative contracts recorded at fair value in the condensed consolidated balance sheets:
Designated
Derivative Contracts
Non-Designated Derivative ContractsTotal
Notional value$21,674 $14,241 $35,915 
Fair value recorded in other current assets1,285 23 1,308 
Fair value recorded in other accrued expenses— (9)(9)

As of December 31, 2021, the Company's outstanding derivative contracts are held by an aggregate of two counterparties, all with various maturity dates within the next three months. As of March 31, 2021, the Company has no outstanding derivative contracts.

The following table summarizes the effect of Designated Derivative Contracts and the related income tax effects recorded in the condensed consolidated statements of comprehensive income for changes in AOCL:
Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
Gain (loss) recorded in Other comprehensive income$105 $(556)$4,154 $(1,265)
Reclassifications from Accumulated other comprehensive loss into net sales (2,107)189 (2,869)310 
Income tax benefit (expense) in Other comprehensive income485 88 (311)229 
Total$(1,517)$(279)$974 $(726)
The following table summarizes the effect of Non-Designated Derivative Contracts recorded in the condensed consolidated statements of comprehensive income:
Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
 (Loss) gain recorded in SG&A expenses$(157)$(564)$591 $(522)

The non-performance risk of the Company and the counterparties did not have a material impact on the fair value of its derivative contracts. As of December 31, 2021, the amount of unrealized gains on derivative contracts recorded in AOCL is expected to be reclassified into net sales within the next three months. Refer to Note 9, “Stockholders' Equity,” for further information on the components of AOCL.
v3.22.0.1
Stockholders' Equity
9 Months Ended
Dec. 31, 2021
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders' Equity
Stock Repurchase Programs. The Company's Board of Directors has authorized various stock repurchase programs pursuant to which the Company may repurchase shares of its common stock, and, during April 2021, approved an additional authorization of $750,000 to repurchase the Company's common stock under the same conditions as the prior stock repurchase program (collectively, stock repurchase programs). The Company's stock repurchase programs do not obligate it to acquire any amount of common stock and may be suspended at any time at the Company's discretion. As of December 31, 2021, the aggregate remaining approved amount under the Company's stock repurchase programs is $543,976.

Stock repurchase activity under these programs for the nine months ended December 31, 2021 was as follows:
Amounts**
Total number of shares repurchased*735,976 
Average price paid per share$362.36 
Dollar value of shares repurchased$266,684 

*Any share repurchases are made as part of publicly announced programs in open-market transactions.
** May not calculate on rounded dollars.

Subsequent to December 31, 2021 through January 20, 2022, the Company repurchased 2,643 shares for $973 at an average price of $368.25 per share, and has $543,003 remaining authorized under the stock repurchase programs.

Accumulated Other Comprehensive Loss. The components within AOCL recorded in the condensed consolidated balance sheets are as follows:
 December 31, 2021March 31, 2021
Unrealized gain on cash flow hedges, net of tax$974 $— 
Cumulative foreign currency translation loss(20,131)(16,743)
Total $(19,157)$(16,743)
v3.22.0.1
Basic and Diluted Shares
9 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Basic and Diluted Shares Basic and Diluted Shares
The reconciliation of basic to diluted weighted-average common shares outstanding was as follows:
 Three Months Ended December 31,Nine Months Ended December 31,
 2021202020212020
Basic27,428,000 28,114,000 27,630,000 28,054,000 
Dilutive effect of equity awards235,000 296,000 274,000 321,000 
Diluted27,663,000 28,410,000 27,904,000 28,375,000 
Excluded
Annual RSUs and Annual PSUs1,000 2,000 2,000 11,000 
LTIP PSUs90,000 115,000 90,000 115,000 
Deferred Non-Employee Director Equity Awards— — — 2,000 
Employee Stock Purchase Plan— 1,000 — — 
Excluded Awards. The equity awards excluded from the calculation of the dilutive effect have been excluded due to one of the following: (1) the shares were anti-dilutive; (2) the necessary conditions had not been satisfied for the shares to be deemed issuable based on the Company's performance for the relevant performance period; or (3) the Company recorded a net loss during the period presented (such that inclusion of these equity awards in the calculation would have been anti-dilutive). The number of shares stated for each of these excluded awards is the maximum number of shares issuable pursuant to these awards. For those awards subject to the achievement of performance criteria, the actual number of shares to be issued pursuant to such awards will be based on Company performance in future periods, net of forfeitures, and may be materially lower than the number of shares presented, which could result in a lower dilutive effect, respectively.
v3.22.0.1
Reportable Operating Segments
9 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Reportable Operating Segments Reportable Operating Segments
Information reported to the Chief Operating Decision Maker (CODM), who is the Company's Chief Executive Officer (CEO), President, and Principal Executive Officer (PEO), is organized into the Company's six reportable operating segments and is consistent with how the CODM evaluates performance and allocates resources. The Company does not consider international operations to be a separate reportable operating segment, and the CODM reviews such operations in the aggregate with the 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 generally managed separately because each requires different marketing, research and development, design, sourcing, and sales strategies. The income (loss) from operations of each of the reportable operating segments includes only those costs which are specifically related to each reportable operating segment, which consist primarily of cost of sales, research and development, design, sales and marketing, depreciation, amortization, and the direct costs of employees within those reportable operating segments. 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 the Company's warehouse and distribution centers (DC), certain executive and stock-based compensation, accounting, finance, legal, information technology, human resources, and facilities, among others. Inter-segment sales between the Company’s wholesale and the DTC reportable operating segments are at the Company’s cost, and there is no inter-segment net sales nor income (loss) from operations within the respective reportable operating segments results as these transactions are eliminated in consolidation.
Reportable operating segment information, with a reconciliation to the condensed consolidated statements of comprehensive income, was as follows:
Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
Net sales
UGG brand wholesale$432,093 $408,859 $915,925 $744,281 
HOKA brand wholesale122,636 100,893 420,763 279,629 
Teva brand wholesale16,287 12,107 78,857 51,264 
Sanuk brand wholesale3,138 3,829 20,540 17,142 
Other brands wholesale24,247 32,182 51,806 60,489 
Direct-to-Consumer589,351 519,889 926,441 831,648 
Total$1,187,752 $1,077,759 $2,414,332 $1,984,453 

Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
Income (loss) from operations
UGG brand wholesale$126,085 $158,358 $283,624 $261,349 
HOKA brand wholesale18,039 26,995 107,696 78,056 
Teva brand wholesale2,188 1,029 21,599 9,993 
Sanuk brand wholesale(31)17 4,896 1,644 
Other brands wholesale1,139 9,256 12,004 17,855 
Direct-to-Consumer257,517 220,742 335,934 295,053 
Unallocated overhead costs(111,541)(87,742)(282,344)(214,390)
Total$293,396 $328,655 $483,409 $449,560 

Assets allocated to each reportable operating segment include trade accounts receivable, net; inventories; property and equipment, net; operating lease assets, goodwill, other intangible assets, net; 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, net; 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:
December 31, 2021March 31, 2021
Assets
UGG brand wholesale$550,960 $212,277 
HOKA brand wholesale216,652 168,365 
Teva brand wholesale53,634 87,284 
Sanuk brand wholesale35,132 38,311 
Other brands wholesale50,930 18,732 
Direct-to-Consumer209,542 196,091 
Total assets from reportable operating segments1,116,850 721,060 
December 31, 2021March 31, 2021
Unallocated cash and cash equivalents998,261 1,089,361 
Unallocated deferred tax assets, net40,881 37,194 
Unallocated other corporate assets391,576 320,090 
Total$2,547,568 $2,167,705 
v3.22.0.1
Concentration of Business
9 Months Ended
Dec. 31, 2021
Risks and Uncertainties [Abstract]  
Concentration of Business Concentration of Business
Regions and Customers. The Company sells its products to customers throughout the US and to foreign customers in various countries, with concentrations that were as follows:
Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
International net sales$391,603 $307,239 $767,489 $602,221 
% of net sales33.0 %28.5 %31.8 %30.3 %
Net sales in foreign currencies$332,968 $260,552 $580,949 $472,906 
% of net sales28.0 %24.2 %24.1 %23.8 %
Ten largest customers as % of net sales26.4 %31.0 %28.8 %29.6 %

For the three and nine months ended December 31, 2021 and 2020, no single foreign country comprised 10.0% or more of the Company's total net sales. No single customer accounted for 10.0% or more of the Company's net sales during the three and nine months ended December 31, 2021 and 2020. The Company sells its products to customers for trade accounts receivable and, as of December 31, 2021, has two customers that represent 26.2% of trade accounts receivable, net, compared to one that represents 12.8% of trade accounts receivable, net, as of March 31, 2021. Management performs regular evaluations concerning the ability of the Company’s customers to satisfy their obligations to the Company and recognizes an allowance for doubtful accounts based on these evaluations.

Suppliers. The Company's production is concentrated at a limited number of independent manufacturing factories, primarily in Asia. Sheepskin is the principal raw material for certain UGG brand products and most of the Company's sheepskin is purchased from two tanneries in China, which is sourced primarily from Australia and the United Kingdom (UK). The Company believes significant factors affecting the price of sheepskin include weather patterns, harvesting decisions, incidence of disease, the price of other commodities such as wool and leather, the demand for the Company's products and the products of its competitors, the use of substitute products or components, and global economic conditions.

Long-Lived Assets. Long-lived assets, which consist of property and equipment, net, recorded in the condensed consolidated balance sheets, are as follows:
 December 31, 2021March 31, 2021
US$208,190 $194,833 
Foreign*12,823 11,377 
Total$221,013 $206,210 

*No single foreign country’s property and equipment, net, represented 10.0% or more of the Company’s total property and equipment, net, as of December 31, 2021 and March 31, 2021.
v3.22.0.1
General (Policies)
9 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation. The unaudited condensed consolidated financial statements and accompanying notes thereto (referred to herein as condensed consolidated financial statements) as of December 31, 2021 and for the three and nine months ended December 31, 2021 and 2020 are prepared in accordance with generally accepted accounting principles in the United States (US GAAP) for interim financial information pursuant to Rule 10-01 of Regulation S-X issued by the SEC. Accordingly, the condensed consolidated financial statements do not include all the information and disclosures required by US GAAP for annual financial statements and accompanying notes thereto. The condensed consolidated balance sheet as of March 31, 2021 is derived from the Company's audited consolidated financial statements. In the opinion of management, the condensed consolidated financial statements include all normal and recurring entries necessary to fairly present the results of the interim periods presented but are not necessarily indicative of actual results to be achieved for full fiscal years or other interim periods. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2021 (prior fiscal year), which was filed with the SEC on May 28, 2021 (2021 Annual Report).
Consolidation Consolidation. The condensed consolidated financial statements include the accounts of Deckers Outdoor Corporation and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates Use of Estimates. The preparation of the Company's condensed consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the amounts reported. 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. In addition, the Company has considered the potential impact of the COVID-19 global pandemic (pandemic) on its business and operations. Although the full impact of the pandemic is unknown and cannot be reasonably estimated, the Company believes it has made appropriate accounting estimates and assumptions based on the facts and circumstances available as of the reporting date. However, actual results could differ materially from these estimates and assumptions, which may result in material effects on the Company's financial condition, results of operations, and liquidity. To the extent there are differences between these estimates and actual results, the Company's condensed consolidated financial statements may be materially affected. Significant areas requiring the use of management estimates and assumptions relate to inventory write-downs; trade accounts receivable allowances, including variable consideration for net sales provided to customers, such as allowances for doubtful accounts, sales discounts, and chargebacks; estimated sales return liability; contract liabilities; valuation of inventories; stock-based compensation; impairment assessments, including valuations for goodwill, other intangible assets, and long-lived assets, as well as operating lease assets and lease liabilities; depreciation and amortization; income tax receivables and liabilities; uncertain tax positions; the fair value of financial instruments; the reasonably certain lease term; lease classification; and the Company's incremental borrowing rate utilized to discount its unpaid lease payments to measure its operating lease assets and lease liabilities.
Reportable Operating Segments Reportable Operating Segments. The Company's six reportable operating segments include the worldwide wholesale operations for each of the UGG brand, HOKA brand, Teva brand, Sanuk brand, and Other brands, as well as DTC (collectively, the Company's reportable operating segments).
Information reported to the Chief Operating Decision Maker (CODM), who is the Company's Chief Executive Officer (CEO), President, and Principal Executive Officer (PEO), is organized into the Company's six reportable operating segments and is consistent with how the CODM evaluates performance and allocates resources. The Company does not consider international operations to be a separate reportable operating segment, and the CODM reviews such operations in the aggregate with the 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 generally managed separately because each requires different marketing, research and development, design, sourcing, and sales strategies. The income (loss) from operations of each of the reportable operating segments includes only those costs which are specifically related to each reportable operating segment, which consist primarily of cost of sales, research and development, design, sales and marketing, depreciation, amortization, and the direct costs of employees within those reportable operating segments. 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 the Company's warehouse and distribution centers (DC), certain executive and stock-based compensation, accounting, finance, legal, information technology, human resources, and facilities, among others. Inter-segment sales between the Company’s wholesale and the DTC reportable operating segments are at the Company’s cost, and there is no inter-segment net sales nor income (loss) from operations within the respective reportable operating segments results as these transactions are eliminated in consolidation.
Assets allocated to each reportable operating segment include trade accounts receivable, net; inventories; property and equipment, net; operating lease assets, goodwill, other intangible assets, net; 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, net; and various other corporate assets shared by the Company's reportable operating segments.
Impairment of Operating Lease and Other Long-Lived Assets Impairment of Operating Lease and Other Long-Lived Assets. During the three and nine months ended December 31, 2021, the Company recorded impairment losses for retail store operating lease and other long-lived assets due to performance or store closures of $3,186, within its DTC reportable operating segment in SG&A expenses in the condensed consolidated statements of comprehensive income.
Recent Accounting Pronouncements
Recent Accounting Pronouncements. The Financial Accounting Standards Board has issued Accounting Standard Updates (ASU) that have been recently adopted and not yet adopted by the Company for its annual and interim reporting periods, as stated below.

Recently Adopted. The following is a summary of each ASU recently adopted by and its impact on the Company:
StandardDescriptionImpact Upon Adoption
ASU No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes
Removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation, and calculating income taxes in interim periods, and reduces complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group.The Company adopted this ASU on a retrospective basis beginning April 1, 2021 and concluded that this ASU did not have a material impact on its condensed consolidated financial statements.

Not Yet Adopted. The following is a summary of each ASU issued that is applicable to and has not yet been adopted, as well as the planned period of adoption and the expected impact on the Company upon its adoption:
StandardDescriptionPlanned Period of AdoptionExpected Impact Upon Adoption
ASU No. 2020-04, 
Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting
(as amended by ASU 2021-01)
London Interbank Offered Rate (LIBOR) is a benchmark interest rate referenced in a variety of agreements that are used by all types of entities. At the end of 2021, banks will no longer be required to report information that is used to determine LIBOR. As a result, LIBOR could be discontinued. Other interest rates used globally could also be discontinued for similar reasons.

This ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. Guidance is limited for adoption through December 31, 2022.
Q3 FY 2023The Company is currently evaluating the impact of the adoption of this ASU; however, the Company does not expect that the adoption will have a material impact on its condensed consolidated financial statements.
Revenue Recognition Revenue is recognized when a performance obligation is completed at a point in time and when the customer has obtained control. Control passes to the customer when they have the ability to direct the use of, and obtain substantially all the remaining benefits from, the goods transferred. The amount of revenue recognized is based on the transaction price, which represents the invoiced amount less known actual amounts or estimates of variable consideration. Variable Consideration. Components of variable consideration include estimated sales discounts, markdowns or chargebacks, and sales returns. Estimates for variable consideration are based on the amounts earned or estimates to be claimed as an adjustment to sales. Estimated variable consideration is included in the transaction price to the extent it is probable that a significant reversal of the cumulative revenue recognized will not occur in a future period. The Company's customer contracts do not have a significant financing component due to their short durations, which are typically effective for one year or less and have payment terms that are generally 30 to 60 days. Sales Return Liability. Reserves are recorded for anticipated future returns of goods shipped prior to the end of the reporting period. In general, the Company accepts returns for damaged or defective products for up to one year. The Company also has a policy whereby returns are generally accepted from customers between 30 to 90 days from the point of sale for cash or credit. Amounts of these reserves are based on known and actual returns, historical returns, and any recent events that could result in a change from historical return rates.Contract Liabilities. Contract liabilities are performance obligations that the Company expects to satisfy or relieve within the next 12 months, advance consideration obtained prior to satisfying a performance obligation, or unconditional obligations to provide goods or services under non-cancelable contracts before the transfer of goods or services to the customer has occurred. Contract liabilities are recorded in other accrued expenses in the condensed consolidated balance sheets. Loyalty Programs. The Company has a loyalty program for the UGG brand in its DTC channel where consumers can earn rewards from qualifying purchases or activities.Deferred Revenue. Deferred revenue results when customer cash payments are received prior to transfer of control of ordered product, which occurs either when shipped or delivered in accordance with the contractual terms. These cash payments include amounts which are refundable. The Company recognizes deferred revenue into net sales in its wholesale channel.
Fair Value Measurement
The accounting standard for fair value measurements provides a framework for measuring fair value, which is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy under this accounting standard requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required:

Level 1: Quoted prices in active markets for identical assets and liabilities.

Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities.

Level 3: Unobservable inputs in which little or no market activity exists, therefore requiring the Company to develop its own assumptions.

The carrying amount of the Company’s financial instruments, which principally include cash and cash equivalents, trade accounts receivable, net; trade accounts payable, accrued payroll, and other accrued expenses, approximates fair value due to their short-term nature. The carrying amount of the Company’s short-term borrowings, which are considered Level 2 liabilities, approximates fair value based upon current rates and terms available to the Company for similar debt.
The fair value of foreign currency forward or option contracts are determined using quoted forward spot rates at the end of the applicable reporting period from counterparties, which are corroborated by market-based pricing (Level 2). The fair values of assets and liabilities associated with derivative instruments and hedging activities are recorded in other current assets and other accrued expenses, respectively, in the condensed consolidated balance sheets. Refer to Note 8, “Derivative Instruments,” for further information, including definitions of the terms Designated Derivative Contracts and Non-Designated Derivative Contracts.
Deferred Compensation The Company sponsors a non-qualified deferred compensation plan that permits a select group of management employees to defer earnings to a future date on a non-qualified basis. Deferred compensation is recognized based on the fair value of the participants' accounts. A rabbi trust was established as a reserve for benefits payable under this plan, with the assets invested in Company-owned life insurance policies.
Share-based Compensation From time to time, the Company grants various types of stock-based compensation under the 2015 Stock Incentive Plan, as amended (2015 SIP), including time-based restricted stock units (RSUs), performance-based restricted stock units (PSUs), stock appreciation rights, and non-qualified stock options (NQSOs). The Company typically makes annual grants of RSUs (Annual RSUs) and PSUs (Annual PSUs), as well as long-term incentive plan (LTIP) awards, to key personnel, including employees and directors.Stock-based compensation is recorded net of estimated forfeitures in selling, general, and administrative (SG&A) expenses in the condensed consolidated statements of comprehensive income. The Annual RSUs typically vest in equal annual installments over three years following the date of grant. The Annual PSUs are typically earned based on the achievement of pre-established Company performance criteria measured over the fiscal year during which they are granted and, to the extent the performance criteria are met, vest in equal annual installments over three years thereafter.
Derivatives
The Company may enter into foreign currency forward or option contracts (derivative contracts), generally with maturities of 15 months or less, to manage foreign currency risk on expected cash flows and certain existing assets and liabilities, primarily intercompany balances. Certain of these derivative contracts are designated as cash flow hedges of forecasted sales (Designated Derivative Contracts). The Company may also enter into derivative contracts that are not designated as cash flow hedges (Non-Designated Derivative Contracts), to offset a portion of anticipated gains and losses on certain intercompany balances until the expected time of repayment. The after-tax unrealized gains or losses from changes in the fair value of Designated Derivative Contracts are recorded as a component of accumulated other comprehensive loss (AOCL) and are reclassified to net sales in the condensed consolidated statements of comprehensive income in the same period or periods as the related sales are recognized. The Company includes all hedge components in its assessment of effectiveness for its derivative contracts.

Changes in the fair value of Non-Designated Derivative Contracts are recorded in SG&A expenses in the condensed consolidated statements of comprehensive income. The changes in fair value for these contracts are generally offset by the remeasurement gains or losses associated with the underlying foreign currency-denominated intercompany balances, which are recorded in SG&A expenses in the condensed consolidated statements of comprehensive income.
Net Income Per Share The equity awards excluded from the calculation of the dilutive effect have been excluded due to one of the following: (1) the shares were anti-dilutive; (2) the necessary conditions had not been satisfied for the shares to be deemed issuable based on the Company's performance for the relevant performance period; or (3) the Company recorded a net loss during the period presented (such that inclusion of these equity awards in the calculation would have been anti-dilutive). The number of shares stated for each of these excluded awards is the maximum number of shares issuable pursuant to these awards. For those awards subject to the achievement of performance criteria, the actual number of shares to be issued pursuant to such awards will be based on Company performance in future periods, net of forfeitures, and may be materially lower than the number of shares presented, which could result in a lower dilutive effect, respectively.
v3.22.0.1
General (Tables)
9 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
Recently Adopted. The following is a summary of each ASU recently adopted by and its impact on the Company:
StandardDescriptionImpact Upon Adoption
ASU No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes
Removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation, and calculating income taxes in interim periods, and reduces complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group.The Company adopted this ASU on a retrospective basis beginning April 1, 2021 and concluded that this ASU did not have a material impact on its condensed consolidated financial statements.

Not Yet Adopted. The following is a summary of each ASU issued that is applicable to and has not yet been adopted, as well as the planned period of adoption and the expected impact on the Company upon its adoption:
StandardDescriptionPlanned Period of AdoptionExpected Impact Upon Adoption
ASU No. 2020-04, 
Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting
(as amended by ASU 2021-01)
London Interbank Offered Rate (LIBOR) is a benchmark interest rate referenced in a variety of agreements that are used by all types of entities. At the end of 2021, banks will no longer be required to report information that is used to determine LIBOR. As a result, LIBOR could be discontinued. Other interest rates used globally could also be discontinued for similar reasons.

This ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. Guidance is limited for adoption through December 31, 2022.
Q3 FY 2023The Company is currently evaluating the impact of the adoption of this ASU; however, the Company does not expect that the adoption will have a material impact on its condensed consolidated financial statements.
v3.22.0.1
Revenue Recognition (Tables)
9 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Contract with Customer, Asset and Liability
Activity during the nine months ended December 31, 2021 related to estimated sales returns is as follows:
Recovery AssetRefund Liability
Balance, March 31, 2021$10,704 $(37,717)
Net additions to sales return allowance*29,603 (122,153)
Actual returns(26,774)111,851 
Balance, December 31, 2021$13,533 $(48,019)

Activity during the nine months ended December 31, 2020 related to estimated sales returns is as follows:
Recovery AssetRefund Liability
Balance, March 31, 2020$9,663 $(25,667)
Net additions to sales return allowance*33,883 (122,069)
Actual returns(27,234)93,787 
Balance, December 31, 2020$16,312 $(53,949)
*Net additions to the sales return liability include a provision for anticipated sales returns, which consists of both contractual return rights and discretionary authorized returns.
v3.22.0.1
Fair Value Measurements (Tables)
9 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets and liabilities measured on a recurring basis at fair value in the condensed consolidated balance sheets are as follows:
Measured Using
December 31, 2021Level 1Level 2Level 3
Non-qualified deferred compensation asset $9,673 $9,673 $— $— 
Non-qualified deferred compensation liability(10,083)(10,083)— — 
Designated Derivative Contracts asset1,285 — 1,285 — 
Non-Designated Derivative Contracts asset23 — 23 — 
Non-Designated Derivative Contracts liability(9)— (9)— 
Measured Using
March 31, 2021Level 1Level 2Level 3
Non-qualified deferred compensation asset $9,107 $9,107 $— $— 
Non-qualified deferred compensation liability(6,692)(6,692)— — 
v3.22.0.1
Income Taxes - (Tables)
9 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation
Income tax expense and the effective income tax rate were as follows:
Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
Income tax expense$60,014 $73,020 $99,158 $99,331 
Effective income tax rate20.5 %22.2 %20.6 %22.1 %
v3.22.0.1
Commitments and Contingencies - (Tables)
9 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Supplemental Lease Information
Supplemental information for amounts presented in the condensed consolidated statements of cash flows related to operating leases, was as follows:
Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
Non-cash operating activities
Operating lease assets obtained in exchange for lease liabilities*$8,859 $1,013 $35,153 $6,882 
Reductions to operating lease assets for reductions to lease liabilities*(4,669)(9,206)(5,293)(11,619)

*Amounts disclosed include non-cash additions or reductions resulting from lease remeasurements.
v3.22.0.1
Stock-Based Compensation (Tables)
9 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Schedule of Nonvested Stock Units Activity The Company granted annual awards under the 2015 SIP, as recorded in the condensed consolidated statements of comprehensive income, as summarized below:
Nine Months Ended December 31,
20212020
Shares GrantedWeighted-average grant date fair value per shareShares GrantedWeighted-average grant date fair value per share
Annual RSUs40,062 $386.17 45,161 $215.66 
v3.22.0.1
Derivative Instruments (Tables)
9 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
As of December 31, 2021, the Company has the following derivative contracts recorded at fair value in the condensed consolidated balance sheets:
Designated
Derivative Contracts
Non-Designated Derivative ContractsTotal
Notional value$21,674 $14,241 $35,915 
Fair value recorded in other current assets1,285 23 1,308 
Fair value recorded in other accrued expenses— (9)(9)
Schedule of Location and Amount of Gains and Losses Related to Derivatives Designated as Hedging Instruments
The following table summarizes the effect of Designated Derivative Contracts and the related income tax effects recorded in the condensed consolidated statements of comprehensive income for changes in AOCL:
Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
Gain (loss) recorded in Other comprehensive income$105 $(556)$4,154 $(1,265)
Reclassifications from Accumulated other comprehensive loss into net sales (2,107)189 (2,869)310 
Income tax benefit (expense) in Other comprehensive income485 88 (311)229 
Total$(1,517)$(279)$974 $(726)
Schedule of Location and Amount of Gains and Losses Related to Derivatives Not Designated as Hedging Instruments
The following table summarizes the effect of Non-Designated Derivative Contracts recorded in the condensed consolidated statements of comprehensive income:
Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
 (Loss) gain recorded in SG&A expenses$(157)$(564)$591 $(522)
v3.22.0.1
Stockholders' Equity (Tables)
9 Months Ended
Dec. 31, 2021
Stockholders' Equity Note [Abstract]  
Schedule of Stock Repurchases
Stock repurchase activity under these programs for the nine months ended December 31, 2021 was as follows:
Amounts**
Total number of shares repurchased*735,976 
Average price paid per share$362.36 
Dollar value of shares repurchased$266,684 

*Any share repurchases are made as part of publicly announced programs in open-market transactions.
** May not calculate on rounded dollars.
Components of Accumulated Other Comprehensive Loss The components within AOCL recorded in the condensed consolidated balance sheets are as follows:
 December 31, 2021March 31, 2021
Unrealized gain on cash flow hedges, net of tax$974 $— 
Cumulative foreign currency translation loss(20,131)(16,743)
Total $(19,157)$(16,743)
v3.22.0.1
Basic and Diluted Shares (Tables)
9 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Schedule of Weighted Average Number of Shares
The reconciliation of basic to diluted weighted-average common shares outstanding was as follows:
 Three Months Ended December 31,Nine Months Ended December 31,
 2021202020212020
Basic27,428,000 28,114,000 27,630,000 28,054,000 
Dilutive effect of equity awards235,000 296,000 274,000 321,000 
Diluted27,663,000 28,410,000 27,904,000 28,375,000 
Excluded
Annual RSUs and Annual PSUs1,000 2,000 2,000 11,000 
LTIP PSUs90,000 115,000 90,000 115,000 
Deferred Non-Employee Director Equity Awards— — — 2,000 
Employee Stock Purchase Plan— 1,000 — — 
Excluded Awards. The equity awards excluded from the calculation of the dilutive effect have been excluded due to one of the following: (1) the shares were anti-dilutive; (2) the necessary conditions had not been satisfied for the shares to be deemed issuable based on the Company's performance for the relevant performance period; or (3) the Company recorded a net loss during the period presented (such that inclusion of these equity awards in the calculation would have been anti-dilutive). The number of shares stated for each of these excluded awards is the maximum number of shares issuable pursuant to these awards. For those awards subject to the achievement of performance criteria, the actual number of shares to be issued pursuant to such awards will be based on Company performance in future periods, net of forfeitures, and may be materially lower than the number of shares presented, which could result in a lower dilutive effect, respectively.
v3.22.0.1
Reportable Operating Segments (Tables)
9 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Schedule of Business Segments Information
Reportable operating segment information, with a reconciliation to the condensed consolidated statements of comprehensive income, was as follows:
Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
Net sales
UGG brand wholesale$432,093 $408,859 $915,925 $744,281 
HOKA brand wholesale122,636 100,893 420,763 279,629 
Teva brand wholesale16,287 12,107 78,857 51,264 
Sanuk brand wholesale3,138 3,829 20,540 17,142 
Other brands wholesale24,247 32,182 51,806 60,489 
Direct-to-Consumer589,351 519,889 926,441 831,648 
Total$1,187,752 $1,077,759 $2,414,332 $1,984,453 

Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
Income (loss) from operations
UGG brand wholesale$126,085 $158,358 $283,624 $261,349 
HOKA brand wholesale18,039 26,995 107,696 78,056 
Teva brand wholesale2,188 1,029 21,599 9,993 
Sanuk brand wholesale(31)17 4,896 1,644 
Other brands wholesale1,139 9,256 12,004 17,855 
Direct-to-Consumer257,517 220,742 335,934 295,053 
Unallocated overhead costs(111,541)(87,742)(282,344)(214,390)
Total$293,396 $328,655 $483,409 $449,560 
Assets allocated to each reportable operating segment, with a reconciliation to the condensed consolidated balance sheets, are as follows:
December 31, 2021March 31, 2021
Assets
UGG brand wholesale$550,960 $212,277 
HOKA brand wholesale216,652 168,365 
Teva brand wholesale53,634 87,284 
Sanuk brand wholesale35,132 38,311 
Other brands wholesale50,930 18,732 
Direct-to-Consumer209,542 196,091 
Total assets from reportable operating segments1,116,850 721,060 
December 31, 2021March 31, 2021
Unallocated cash and cash equivalents998,261 1,089,361 
Unallocated deferred tax assets, net40,881 37,194 
Unallocated other corporate assets391,576 320,090 
Total$2,547,568 $2,167,705 
v3.22.0.1
Concentration of Business (Tables)
9 Months Ended
Dec. 31, 2021
Risks and Uncertainties [Abstract]  
Schedule of Revenue Concentration of Risk The Company sells its products to customers throughout the US and to foreign customers in various countries, with concentrations that were as follows:
Three Months Ended December 31,Nine Months Ended December 31,
2021202020212020
International net sales$391,603 $307,239 $767,489 $602,221 
% of net sales33.0 %28.5 %31.8 %30.3 %
Net sales in foreign currencies$332,968 $260,552 $580,949 $472,906 
% of net sales28.0 %24.2 %24.1 %23.8 %
Ten largest customers as % of net sales26.4 %31.0 %28.8 %29.6 %
Schedule of Long-lived Assets Long-lived assets, which consist of property and equipment, net, recorded in the condensed consolidated balance sheets, are as follows:
 December 31, 2021March 31, 2021
US$208,190 $194,833 
Foreign*12,823 11,377 
Total$221,013 $206,210 

*No single foreign country’s property and equipment, net, represented 10.0% or more of the Company’s total property and equipment, net, as of December 31, 2021 and March 31, 2021.
v3.22.0.1
General - Narrative (Details)
$ in Thousands
3 Months Ended 9 Months Ended
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2021
USD ($)
segment
Dec. 31, 2020
USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Number of reportable segments | segment     6  
Impairment of operating lease and other long-lived assets | $ $ 3,186 $ 1,380 $ 3,186 $ 4,060
v3.22.0.1
Revenue Recognition - Schedule of Contract Assets and Contract Liabilities (Details) - USD ($)
$ in Thousands
9 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Recovery Asset    
Beginning balance $ 10,704 $ 9,663
Net additions to sales return allowance 29,603 33,883
Actual returns (26,774) (27,234)
Ending balance 13,533 16,312
Contract Liability    
Beginning balance (37,717) (25,667)
Net additions to sales return allowance (122,153) (122,069)
Actual returns 111,851 93,787
Ending balance $ (48,019) $ (53,949)
v3.22.0.1
Revenue Recognition - Narrative (Details) - USD ($)
$ in Thousands
9 Months Ended
Dec. 31, 2021
Mar. 31, 2021
Dec. 31, 2020
Mar. 31, 2020
Disaggregation of Revenue [Line Items]        
Contract length Contract liabilities are performance obligations that the Company expects to satisfy or relieve within the next 12 months, advance consideration obtained prior to satisfying a performance obligation, or unconditional obligations to provide goods or services under non-cancelable contracts before the transfer of goods or services to the customer has occurred.      
Contract liability $ 48,019 $ 37,717 $ 53,949 $ 25,667
Wholesale        
Disaggregation of Revenue [Line Items]        
Contract liability 13,591 5,425    
Loyalty Programs        
Disaggregation of Revenue [Line Items]        
Contract liability $ 17,031 $ 12,231    
v3.22.0.1
Fair Value Measurements - Schedule of Fair Value Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Mar. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Non-qualified deferred compensation asset $ 9,673 $ 9,107
Non-qualified deferred compensation liability (10,083) (6,692)
Derivative contracts asset 1,308  
Non-Designated Derivative Contracts liability (9)  
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Non-qualified deferred compensation asset 9,673 9,107
Non-qualified deferred compensation liability (10,083) (6,692)
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Non-qualified deferred compensation asset 0 0
Non-qualified deferred compensation liability 0 0
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Non-qualified deferred compensation asset 0 0
Non-qualified deferred compensation liability 0 $ 0
Designated Derivative Contracts    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative contracts asset 1,285  
Non-Designated Derivative Contracts liability 0  
Designated Derivative Contracts | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative contracts asset 0  
Designated Derivative Contracts | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative contracts asset 1,285  
Designated Derivative Contracts | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative contracts asset 0  
Non-Designated Derivative Contracts    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative contracts asset 23  
Non-Designated Derivative Contracts liability (9)  
Non-Designated Derivative Contracts | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative contracts asset 0  
Non-Designated Derivative Contracts liability 0  
Non-Designated Derivative Contracts | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative contracts asset 23  
Non-Designated Derivative Contracts liability (9)  
Non-Designated Derivative Contracts | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative contracts asset 0  
Non-Designated Derivative Contracts liability $ 0  
v3.22.0.1
Fair Value Measurements - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Mar. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Non-qualified deferred compensation asset $ 9,673 $ 9,107
Non-qualified deferred compensation liability 10,083 $ 6,692
Other Assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Non-qualified deferred compensation asset 9,673  
Other Accrued Liabilities, Current    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Current deferred compensation liability 930  
Other Long Term Liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Noncurrent deferred compensation liability $ 9,153  
v3.22.0.1
Income Taxes - Effective Income Tax Rate (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]        
Income tax expense $ 60,014 $ 73,020 $ 99,158 $ 99,331
Effective income tax rate 20.50% 22.20% 20.60% 22.10%
v3.22.0.1
Revolving Credit Facilities - Primary Credit Facility (Details) - Primary Credit Facility - Line of Credit - Revolving Credit Facility - USD ($)
1 Months Ended 9 Months Ended
Sep. 30, 2018
Dec. 31, 2021
Notes Payable and Long-Term Debt    
Debt instrument term 5 years  
Maximum borrowing capacity $ 400,000,000  
Proceeds from lines of credit   $ 0
Repayments of lines of credit   0
Long-term line of credit   0
Outstanding letters of credit   549,000
Amount available under the credit agreement   $ 399,451,000
LIBOR based interest rates    
Notes Payable and Long-Term Debt    
Interest rate, effective percentage   1.23%
Alternate Base Rate based interest rates    
Notes Payable and Long-Term Debt    
Interest rate, effective percentage   3.38%
Maximum    
Notes Payable and Long-Term Debt    
Capacity available for letters of credit $ 25,000,000  
v3.22.0.1
Revolving Credit Facilities - China Line of Credit (Details) - Line of Credit - Revolving Credit Facility
1 Months Ended 9 Months Ended
Aug. 31, 2013
USD ($)
Dec. 31, 2021
USD ($)
Aug. 31, 2013
CNY (¥)
Second Amended China Credit Facility      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 47,139,000   ¥ 300,000,000
Interest rate, effective percentage   4.10%  
Proceeds from lines of credit   $ 0  
Repayments of lines of credit   0  
Long-term line of credit   0  
Outstanding bank guarantees   31,000  
Amount available under the credit agreement   $ 47,108,000  
Second Amended China Credit Facility, Overdraft Sublimit      
Debt Instrument [Line Items]      
Line of credit facility overdraft facility sublimit $ 15,713,000   ¥ 100,000,000
China Credit Agreement      
Debt Instrument [Line Items]      
Guarantor obligation 108.50%    
Maximum | Second Amended China Credit Facility      
Debt Instrument [Line Items]      
Debt instrument term 12 months    
v3.22.0.1
Revolving Credit Facilities - Japan Line of Credit (Details) - Revolving Credit Facility - Line of Credit - Japan Credit Facility
1 Months Ended 9 Months Ended
Mar. 31, 2016
USD ($)
Dec. 31, 2021
USD ($)
Mar. 31, 2016
JPY (¥)
Notes Payable and Long-Term Debt      
Maximum borrowing capacity $ 26,064,000   ¥ 3,000,000,000
Proceeds from lines of credit   $ 0  
Repayments of lines of credit   0  
Long-term line of credit   0  
Amount available under the credit agreement   $ 26,064,000  
Maximum      
Notes Payable and Long-Term Debt      
Debt instrument term 6 months    
Tokyo Interbank Offered Rate (TIBOR)      
Notes Payable and Long-Term Debt      
Spread on variable interest rate (as a percent) 0.40%    
Interest rate, effective percentage   0.48%  
v3.22.0.1
Commitments and Contingencies - Narrative (Details)
Dec. 31, 2021
Minimum  
Lessee, Lease, Description [Line Items]  
Operating lease renewal term 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Operating lease renewal term 15 years
v3.22.0.1
Commitments and Contingencies - Schedule of Supplemental Lease Information (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]        
Operating lease assets obtained in exchange for lease liabilities $ 8,859 $ 1,013 $ 35,153 $ 6,882
Reductions to operating lease assets for reductions to lease liabilities $ (4,669) $ (9,206) $ (5,293) $ (11,619)
v3.22.0.1
Stock-Based Compensation - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
1 Months Ended 9 Months Ended
Mar. 31, 2021
Sep. 30, 2019
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Options granted (in shares)     0  
Award requisite service period     36 months  
Stock Appreciation Rights        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted (in shares)     0  
Annual PSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted (in shares)     0  
Annual RSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted (in shares)     40,062 45,161
Award vesting period     3 years  
Weighted-average grant date fair value (in dollars per share)     $ 386.17 $ 215.66
Annual RSUs and Annual PSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized stock compensation expense     $ 14,873  
LTIP PSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Granted (in shares) 19,890 38,174 26,347  
Award vesting period     3 years  
Unrecognized stock compensation expense     $ 16,956  
Measurement period     3 years  
Weighted-average grant date fair value (in dollars per share)     $ 435.94  
LTIP PSUs | Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Award vesting rights percentage     200.00%  
LTIP PSUs | Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Financial performance achievement percentage     100.00%  
v3.22.0.1
Stock-Based Compensation - Annual Awards (Details) - Annual RSUs - $ / shares
9 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Granted (in shares) 40,062 45,161
Weighted-average grant date fair value (in dollars per share) $ 386.17 $ 215.66
v3.22.0.1
Derivative Instruments (Details)
3 Months Ended 9 Months Ended
Dec. 31, 2021
USD ($)
counterparty
Dec. 31, 2020
USD ($)
Dec. 31, 2021
USD ($)
counterparty
Dec. 31, 2020
USD ($)
Mar. 31, 2021
USD ($)
Foreign currency exchange contracts and hedging          
Notional value $ 35,915,000   $ 35,915,000   $ 0
Fair value recorded in other current assets 1,308,000   1,308,000    
Fair value recorded in other accrued expenses $ (9,000)   $ (9,000)    
Number of counterparties in derivative contracts | counterparty 2   2    
Gain (loss) recorded in Other comprehensive income $ 105,000 $ (556,000) $ 4,154,000 $ (1,265,000)  
Reclassifications from Accumulated other comprehensive loss into net sales (2,107,000) 189,000 (2,869,000) 310,000  
Income tax benefit (expense) in Other comprehensive income 485,000 88,000 (311,000) 229,000  
Unrealized (loss) gain on cash flow hedges, net of tax (1,517,000) (279,000) 974,000 (726,000)  
(Loss) gain recorded in SG&A expenses (157,000) $ (564,000) $ 591,000 $ (522,000)  
Foreign Exchange Forward          
Foreign currency exchange contracts and hedging          
Maturity of foreign currency derivatives     15 months    
Foreign Exchange Option          
Foreign currency exchange contracts and hedging          
Maturity of foreign currency derivatives     15 months    
Designated Derivative Contracts          
Foreign currency exchange contracts and hedging          
Notional value 21,674,000   $ 21,674,000    
Fair value recorded in other current assets 1,285,000   1,285,000    
Fair value recorded in other accrued expenses 0   0    
Non-Designated Derivative Contracts          
Foreign currency exchange contracts and hedging          
Notional value 14,241,000   14,241,000    
Fair value recorded in other current assets 23,000   23,000    
Fair value recorded in other accrued expenses $ (9,000)   $ (9,000)    
v3.22.0.1
Stockholders' Equity - Stock Repurchase Programs (Details) - USD ($)
1 Months Ended 3 Months Ended 9 Months Ended
Jan. 20, 2022
Apr. 30, 2021
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Dec. 31, 2021
Class of Stock [Line Items]            
Additional authorized amount of shares to repurchase   $ 750,000,000        
Dollar value of shares remaining for repurchase     $ 543,976,000     $ 543,976,000
Total number of shares repurchased (in shares)           735,976
Average price paid per share (in dollars per share)           $ 362.36
Dollar value of shares repurchased     $ 130,711,000 $ 53,807,000 $ 82,166,000 $ 266,684,000
Subsequent Event            
Class of Stock [Line Items]            
Dollar value of shares remaining for repurchase $ 543,003,000          
Total number of shares repurchased (in shares) 2,643          
Average price paid per share (in dollars per share) $ 368.25          
Dollar value of shares repurchased $ 973,000          
v3.22.0.1
Stockholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Mar. 31, 2021
Stockholders' Equity Note [Abstract]    
Unrealized gain on cash flow hedges, net of tax $ 974 $ 0
Cumulative foreign currency translation loss (20,131) (16,743)
Total $ (19,157) $ (16,743)
v3.22.0.1
Basic and Diluted Shares (Details) - shares
shares in Thousands
3 Months Ended 9 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Weighted average number of basic shares outstanding (in shares) 27,428 28,114 27,630 28,054
Weighted average number shares outstanding, dilutive effect of equity awards (in shares) 235 296 274 321
Weighted average number of diluted shares outstanding (in shares) 27,663 28,410 27,904 28,375
Annual RSUs and Annual PSUs        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share (in shares) 1 2 2 11
LTIP PSUs        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share (in shares) 90 115 90 115
Deferred Non-Employee Director Equity Awards        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share (in shares) 0 0 0 2
Employee Stock Purchase Plan        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share (in shares) 0 1 0 0
v3.22.0.1
Reportable Operating Segments (Details)
$ in Thousands
3 Months Ended 9 Months Ended
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2021
USD ($)
segment
Dec. 31, 2020
USD ($)
Mar. 31, 2021
USD ($)
Segment Reporting Information [Line Items]          
Number of reportable segments | segment     6    
Net sales $ 1,187,752 $ 1,077,759 $ 2,414,332 $ 1,984,453  
Income (loss) from operations 293,396 328,655 483,409 449,560  
Total assets 2,547,568   2,547,568   $ 2,167,705
Unallocated cash and cash equivalents 998,261   998,261   1,089,361
Unallocated deferred tax assets, net 40,881   40,881   37,194
Reportable segments          
Segment Reporting Information [Line Items]          
Total assets 1,116,850   1,116,850   721,060
Reportable segments | UGG brand wholesale          
Segment Reporting Information [Line Items]          
Total assets 550,960   550,960   212,277
Reportable segments | HOKA brand wholesale          
Segment Reporting Information [Line Items]          
Total assets 216,652   216,652   168,365
Reportable segments | Teva brand wholesale          
Segment Reporting Information [Line Items]          
Total assets 53,634   53,634   87,284
Reportable segments | Sanuk brand wholesale          
Segment Reporting Information [Line Items]          
Total assets 35,132   35,132   38,311
Reportable segments | Other brands wholesale          
Segment Reporting Information [Line Items]          
Total assets 50,930   50,930   18,732
Reportable segments | Direct-to-Consumer          
Segment Reporting Information [Line Items]          
Total assets 209,542   209,542   196,091
Segment reconciling items          
Segment Reporting Information [Line Items]          
Income (loss) from operations (111,541) (87,742) (282,344) (214,390)  
Unallocated cash and cash equivalents 998,261   998,261   1,089,361
Unallocated deferred tax assets, net 40,881   40,881   37,194
Corporate          
Segment Reporting Information [Line Items]          
Unallocated other corporate assets 391,576   391,576   $ 320,090
Wholesale | UGG brand wholesale          
Segment Reporting Information [Line Items]          
Net sales 432,093 408,859 915,925 744,281  
Wholesale | HOKA brand wholesale          
Segment Reporting Information [Line Items]          
Net sales 122,636 100,893 420,763 279,629  
Wholesale | Teva brand wholesale          
Segment Reporting Information [Line Items]          
Net sales 16,287 12,107 78,857 51,264  
Wholesale | Sanuk brand wholesale          
Segment Reporting Information [Line Items]          
Net sales 3,138 3,829 20,540 17,142  
Wholesale | Other brands wholesale          
Segment Reporting Information [Line Items]          
Net sales 24,247 32,182 51,806 60,489  
Wholesale | Reportable segments | UGG brand wholesale          
Segment Reporting Information [Line Items]          
Income (loss) from operations 126,085 158,358 283,624 261,349  
Wholesale | Reportable segments | HOKA brand wholesale          
Segment Reporting Information [Line Items]          
Income (loss) from operations 18,039 26,995 107,696 78,056  
Wholesale | Reportable segments | Teva brand wholesale          
Segment Reporting Information [Line Items]          
Income (loss) from operations 2,188 1,029 21,599 9,993  
Wholesale | Reportable segments | Sanuk brand wholesale          
Segment Reporting Information [Line Items]          
Income (loss) from operations (31) 17 4,896 1,644  
Wholesale | Reportable segments | Other brands wholesale          
Segment Reporting Information [Line Items]          
Income (loss) from operations 1,139 9,256 12,004 17,855  
Direct-to-Consumer | Direct-to-Consumer          
Segment Reporting Information [Line Items]          
Net sales 589,351 519,889 926,441 831,648  
Direct-to-Consumer | Reportable segments | Direct-to-Consumer          
Segment Reporting Information [Line Items]          
Income (loss) from operations $ 257,517 $ 220,742 $ 335,934 $ 295,053  
v3.22.0.1
Concentration of Business (Details)
$ in Thousands
3 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2021
USD ($)
tannery
Dec. 31, 2020
USD ($)
Dec. 31, 2021
USD ($)
tannery
Dec. 31, 2020
USD ($)
Mar. 31, 2021
USD ($)
Concentration Risk [Line Items]          
Net sales $ 1,187,752 $ 1,077,759 $ 2,414,332 $ 1,984,453  
Number of tanneries | tannery 2   2    
Long-lived assets $ 221,013   $ 221,013   $ 206,210
Trade Accounts Receivable | Customer Concentration Risk | Two Customers          
Concentration Risk [Line Items]          
Concentration risk     26.20%    
Trade Accounts Receivable | Customer Concentration Risk | One Customer          
Concentration Risk [Line Items]          
Concentration risk         12.80%
Foreign          
Concentration Risk [Line Items]          
Long-lived assets 12,823   $ 12,823   $ 11,377
Foreign | International net sales          
Concentration Risk [Line Items]          
Net sales 391,603 307,239 767,489 602,221  
Foreign | Net sales in foreign currencies          
Concentration Risk [Line Items]          
Net sales $ 332,968 $ 260,552 $ 580,949 $ 472,906  
Foreign | Sales Revenue, Net | International net sales          
Concentration Risk [Line Items]          
Concentration risk 33.00% 28.50% 31.80% 30.30%  
Foreign | Sales Revenue, Net | Net sales in foreign currencies          
Concentration Risk [Line Items]          
Concentration risk 28.00% 24.20% 24.10% 23.80%  
Foreign | Sales Revenue, Net | Customer Concentration Risk | 10 Largest Customers          
Concentration Risk [Line Items]          
Concentration risk 26.40% 31.00% 28.80% 29.60%  
US          
Concentration Risk [Line Items]          
Long-lived assets $ 208,190   $ 208,190   $ 194,833