Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 |
Document And Entity Information[Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Registrant Name | 'Crocs, Inc. | ' | ' |
Entity Central Index Key | '0001334036 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Common stock outstanding | ' | 88,546,729 | ' |
Entity Public Float | ' | ' | $1,400 |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Trading Symbol | 'crox | ' | ' |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements Of Operations [Abstract] | ' | ' | ' |
Revenues | $1,192,680 | $1,123,301 | $1,000,903 |
Cost of sales | 569,482 | 515,324 | 464,493 |
Gross profit | 623,198 | 607,977 | 536,410 |
Selling, general and administrative expenses | 549,154 | 460,393 | 404,803 |
Asset impairment charges | 10,949 | 1,410 | 528 |
Income from operations | 63,095 | 146,174 | 131,079 |
Foreign currency transaction (gains) losses, net | 4,678 | 2,500 | -4,886 |
Interest income | -2,432 | -1,697 | -957 |
Interest expense | 1,016 | 837 | 853 |
Other income, net | -126 | -1,014 | -621 |
Income before income taxes | 59,959 | 145,548 | 136,690 |
Income tax expense | 49,539 | 14,205 | 23,902 |
Net income | $10,420 | $131,343 | $112,788 |
Net income per common share (Note 12): | ' | ' | ' |
Basic | $0.12 | $1.46 | $1.27 |
Diluted | $0.12 | $1.44 | $1.24 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements Of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $10,420 | $131,343 | $112,788 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation | -5,335 | 5,525 | -16,031 |
Reclassification Of Cumulative Foreign Exchange Translation Adjustments to Net Income | 299 | -658 | ' |
Total comprehensive income | $5,384 | $136,210 | $96,757 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ' | ' | ' |
Tax Effect of Foreign Currency Translation Adjustment | ($3) | $7 | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $317,144,000 | $294,348,000 |
Accounts receivable, net of allowances of $10,513 and $13,315, respectively | 104,405,000 | 92,278,000 |
Inventories | 162,341,000 | 164,804,000 |
Deferred tax assets, net | 4,440,000 | 6,284,000 |
Income tax receivable | 10,630,000 | 5,613,000 |
Other receivables | 11,942,000 | 24,821,000 |
Prepaid expenses and other current assets | 29,175,000 | 24,967,000 |
Total current assets | 640,077,000 | 613,115,000 |
Property and equipment, net | 86,971,000 | 82,241,000 |
Intangible assets, net | 74,822,000 | 59,931,000 |
Deferred tax assets, net | 19,628,000 | 34,112,000 |
Other assets | 53,661,000 | 40,239,000 |
Total assets | 875,159,000 | 829,638,000 |
Current liabilities: | ' | ' |
Accounts payable | 57,450,000 | 63,976,000 |
Accrued expenses and other current liabilities | 97,111,000 | 81,371,000 |
Deferred tax liabilities, net | 11,199,000 | 2,405,000 |
Income taxes payable | 15,992,000 | 8,147,000 |
Current portion of bank borrowings and capital lease obligations | 5,176,000 | 2,039,000 |
Total current liabilities | 186,928,000 | 157,938,000 |
Long term income tax payable | 36,616,000 | 36,343,000 |
Long-term borrowings and capital lease obligations | 11,670,000 | 4,596,000 |
Other liabilities | 15,201,000 | 13,361,000 |
Total liabilities | 250,415,000 | 212,238,000 |
Commitments and contingencies (Note 13) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred shares, par value $0.001 per share, 5,000,000 shares authorized, none outstanding | ' | ' |
Common shares, par value $0.001 per share, 250,000,000 shares authorized, 91,662,656 and 88,450,203 shares issued and outstanding, respectively, at December 31, 2013 and 91,047,297 and 88,662,845 shares issued and outstanding, respectively, at December 31, 2012 | 92,000 | 91,000 |
Treasury stock, at cost, 3,212,453 and 2,384,452 shares, respectively | -55,964,000 | -44,214,000 |
Additional paid-in capital | 321,532,000 | 307,823,000 |
Retained earnings | 344,432,000 | 334,012,000 |
Accumulated other comprehensive income | 14,652,000 | 19,688,000 |
Total stockholders' equity | 624,744,000 | 617,400,000 |
Total liabilities and stockholders' equity | $875,159,000 | $829,638,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ' | ' |
Allowance for doubtful accounts | $10,513 | $13,315 |
Preferred shares, par value | $0.00 | $0.00 |
Preferred shares, authorized | 5,000,000 | 5,000,000 |
Preferred shares, outstanding | 0 | 0 |
Common shares, par value | $0.00 | $0.00 |
Common shares, authorized | 250,000,000 | 250,000,000 |
Common shares, issued | 91,662,656 | 91,047,297 |
Common shares, outstanding | 88,450,203 | 88,662,845 |
Treasury stock, shares | 3,212,453 | 2,384,452 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Common Stock [Member] | Treasury Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total |
In Thousands | ||||||
BALANCE at Dec. 31, 2010 | $88 | ($22,008) | $277,293 | $89,881 | $30,852 | $376,106 |
BALANCE (in shares) at Dec. 31, 2010 | 88,066 | 535 | ' | ' | ' | ' |
Amortization of stock compensation | ' | ' | 8,928 | ' | ' | 8,928 |
Forfeitures | ' | ' | -435 | ' | ' | -435 |
Forfeitures (in shares) | -149 | ' | ' | ' | ' | ' |
Exercises of stock options and issuance of restricted stock awards | 2 | 2,739 | 8,173 | ' | ' | 10,914 |
Exercises of stock options and issuance of restricted stock awards (in shares) | 1,912 | -58 | ' | ' | ' | ' |
Repurchase of common stock for tax withholding | ' | -490 | ' | ' | ' | -490 |
Repurchase of common stock for tax withholding (in shares) | -22 | 22 | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | 112,788 | ' | 112,788 |
Foreign currency translation | ' | ' | ' | ' | ' | -16,031 |
BALANCE at Dec. 31, 2011 | 90 | -19,759 | 293,959 | 202,669 | 14,821 | 491,780 |
BALANCE (in shares) at Dec. 31, 2011 | 89,807 | 499 | ' | ' | ' | ' |
Amortization of stock compensation | ' | ' | 11,764 | ' | ' | 11,764 |
Forfeitures | ' | ' | -493 | ' | ' | -493 |
Forfeitures (in shares) | -43 | ' | ' | ' | ' | ' |
Exercises of stock options and issuance of restricted stock awards | 1 | 1,112 | 2,593 | ' | ' | 3,706 |
Exercises of stock options and issuance of restricted stock awards (in shares) | 783 | -29 | ' | ' | ' | ' |
Repurchase of common stock for tax withholding | ' | -493 | ' | ' | ' | -493 |
Repurchase of common stock for tax withholding (in shares) | ' | 30 | ' | ' | ' | ' |
Purchase of treasury stock | ' | -25,074 | ' | ' | ' | -25,074 |
Purchase of treasury stock (in shares) | -1,884 | 1,884 | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | 131,343 | ' | 131,343 |
Foreign currency translation | ' | ' | ' | ' | ' | 5,525 |
Reclassification Of Cumulative Foreign Exchange Translation Adjustments to Net Income | ' | ' | ' | ' | ' | -658 |
BALANCE at Dec. 31, 2012 | 91 | -44,214 | 307,823 | 334,012 | 19,688 | 617,400 |
BALANCE (in shares) at Dec. 31, 2012 | 88,663 | 2,384 | ' | ' | ' | ' |
Amortization of stock compensation | ' | ' | 14,483 | ' | ' | 14,483 |
Forfeitures | ' | ' | -2,014 | ' | ' | -2,014 |
Forfeitures (in shares) | -78 | ' | ' | ' | ' | ' |
Exercises of stock options and issuance of restricted stock awards | 1 | 1,039 | 1,240 | ' | ' | 2,280 |
Exercises of stock options and issuance of restricted stock awards (in shares) | 715 | -22 | ' | ' | ' | ' |
Repurchase of common stock for tax withholding | ' | -256 | ' | ' | ' | -256 |
Repurchase of common stock for tax withholding (in shares) | -16 | 16 | ' | ' | ' | ' |
Purchase of treasury stock | ' | -12,533 | ' | ' | ' | -12,533 |
Purchase of treasury stock (in shares) | -834 | 834 | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | 10,420 | ' | 10,420 |
Foreign currency translation | ' | ' | ' | ' | ' | -5,335 |
Reclassification Of Cumulative Foreign Exchange Translation Adjustments to Net Income | ' | ' | ' | ' | ' | 299 |
BALANCE at Dec. 31, 2013 | $92 | ($55,964) | $321,532 | $344,432 | $14,652 | $624,744 |
BALANCE (in shares) at Dec. 31, 2013 | 88,450 | 3,212 | ' | ' | ' | ' |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $10,420 | $131,343 | $112,788 |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ' | ' | ' |
Depreciation and amortization | 41,506 | 36,694 | 37,263 |
Unrealized (gain) loss on foreign exchange, net | -6,420 | 13,928 | -11,892 |
Deferred income taxes | 23,536 | -2,981 | -819 |
Asset impairment charges | 10,949 | 1,410 | 528 |
Provision for (recovery of) doubtful accounts, net | 1,930 | 2,166 | -383 |
Share-based compensation | 11,871 | 11,321 | 8,550 |
Inventory write-down charges | 3,419 | 0 | 0 |
Other non-cash items | 1,193 | 1,725 | 1,845 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -17,166 | -9,475 | -23,278 |
Inventories | -5,274 | -35,493 | -13,328 |
Prepaid expenses and other assets | -4,225 | -25,490 | -17,598 |
Accounts payable | -5,740 | 99 | 30,314 |
Accrued expenses and other liabilities | 14,256 | 8,016 | 19,922 |
Accrued restructuring | ' | ' | -439 |
Income taxes | 3,209 | -4,907 | -1,097 |
Cash provided by operating activities | 83,464 | 128,356 | 142,376 |
Cash flows from investing activities: | ' | ' | ' |
Cash paid for purchases of property and equipment | -40,424 | -39,762 | -27,718 |
Proceeds from disposal of property and equipment | 250 | 2,216 | 319 |
Cash paid for intangible assets | -28,404 | -21,074 | -13,922 |
Business acquisitions, net of cash | ' | -5,169 | ' |
Restricted cash | -1,180 | -2,154 | -343 |
Cash used in investing activities | -69,758 | -65,943 | -41,664 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from bank borrowings | 23,375 | 96,086 | 316,595 |
Repayment of bank borrowings and capital lease obligations | -13,160 | -90,625 | -317,704 |
Deferred debt issuance costs | -100 | -225 | -398 |
Deferred offering costs | -767 | ' | ' |
Issuances of common stock | 2,280 | 3,706 | 10,914 |
Purchase of treasury stock | -12,533 | -25,074 | ' |
Repurchase of common stock for tax withholding | -256 | -493 | -490 |
Cash provided by (used in) financing activities | -1,161 | -16,625 | 8,917 |
Effect of exchange rate changes on cash | 10,251 | -9,027 | 2,375 |
Net increase in cash and cash equivalents | 22,796 | 36,761 | 112,004 |
Cash and cash equivalents - beginning of period | 294,348 | 257,587 | 145,583 |
Cash and cash equivalents - end of period | 317,144 | 294,348 | 257,587 |
Supplemental disclosure of cash flow information-cash paid during the period for: | ' | ' | ' |
Interest | 693 | 619 | 843 |
Income taxes | 20,274 | 29,385 | 26,632 |
Supplemental disclosure of non-cash, investing, and financing activities: | ' | ' | ' |
Assets acquired under capitalized leases | 61 | 34 | ' |
Accrued purchases of property and equipment | 2,165 | 2,368 | 4,022 |
Accrued purchases of intangibles | $4,742 | $768 | $223 |
General
General | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Organization & Summary of Significant Accounting Policies [Abstract] | ' | |||
General | ' | |||
CROCS, INC. AND SUBSIDIARIES | ||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||
1. ORGANIZATION & SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Organization—Crocs, Inc. and its subsidiaries (collectively the “Company,” “we,” “our” or “us”) are engaged in the design, development, manufacturing, marketing and distribution of footwear, apparel and accessories for men, women and children. | ||||
Basis of Consolidation—The consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of our wholly-owned subsidiaries as well as variable interest entities (“VIE”) for which we are the primary beneficiary after the elimination of intercompany accounts and transactions. The primary beneficiary of a VIE is the entity that has (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. | ||||
In 2007, we established a relationship with Shanghai Shengyiguan Trade, Ltd Co (“ST”) for the purpose of serving as a distributor of our products in the People’s Republic of China. We had previously determined that ST was a VIE for which we were the primary beneficiary and consequently it was consolidated as if a wholly-owned subsidiary. On March 15, 2012, we exercised an Equity Option Agreement that we had in place with ST and became the sole owner of ST. | ||||
In April 2011, we and an unrelated third party formed Crocs Gulf, LLC (“Crocs Gulf”) for the purpose of selling our products in the United Arab Emirates. We have determined that Crocs Gulf is a VIE for which we are the primary beneficiary due to our variable interest in Crocs Gulf’s equity and because we currently control all of the VIE’s business activities and will absorb all of its expected residual returns and expected losses. All voting and dividend rights have been assigned to us. As of December 31, 2013 and 2012, the consolidated financial statements included $2.4 million and $2.5 million in total assets of Crocs Gulf, respectively, which primarily consisted of cash and cash equivalents, inventory, property and equipment. The total assets as of each of December 31, 2013 and 2012 were partially offset by $0.2 million in total liabilities, which primarily consisted of accounts payable and accrued expenses, excluding liabilities related to the support provided by us. | ||||
Noncontrolling Interests—As of December 31, 2013, all of our subsidiaries were, in substance, wholly owned. | ||||
Concentrations of Risk—We are exposed to concentrations of risks in the following categories: | ||||
Cash and cash equivalents—Our cash and cash equivalents are maintained in several different financial institutions in amounts that typically exceed U.S. federally insured limits or in financial institutions in international jurisdictions where insurance is not provided and restrictions may exist. | ||||
As we are a global business, we have cash and cash equivalent balances which are located in various countries and are denominated in various currencies. Most of the cash balances held outside of the U.S. could be repatriated to the U.S., but under current law, would be subject to U.S. federal and state income taxes less applicable foreign tax credits. In some countries, repatriation of certain foreign balances is restricted by local laws and could have adverse tax consequences if we were to move the cash to another country. Certain countries, including China, have monetary laws which may limit our ability to utilize cash resources in those countries for operations in other countries. These limitations may affect our ability to fully utilize our cash and cash equivalent resources for needs in the U.S. or other countries and could adversely affect our liquidity. As of December 31, 2013, we held $252.3 million of our total $317.1 million in cash in international locations. This cash is primarily used for the ongoing operations of the business in the locations in which the cash is held. Of the $252.3 million held in international locations, $15.3 million could potentially be restricted, as described above. | ||||
On January 27, 2014, we issued to Blackstone Capital Partners VI L.P. (“Blackstone”), and certain of its permitted transferees (together with Blackstone, the “Blackstone Purchasers”), 200,000 shares of our Series A Preferred Stock. In return, we received approximately $182.2 million in cash proceeds (net of related expenses) all of which is held in the U.S. See Note 17—Subsequent Events for further detail regarding the investment agreement. | ||||
Accounts receivable—We have not experienced any significant losses in such accounts and believe we are not exposed to significant credit risk. We consider any concentration of credit risk related to accounts receivable to be mitigated by our credit policy, the insignificance of outstanding balances owed by each individual customer at any point in time and the geographic dispersion of our customers. | ||||
Manufacturing sources—We rely on a limited source of internal and external manufacturers. Establishing a replacement source could require significant additional time and expense. | ||||
Suppliers of certain raw materials—We source the elastomer resins that constitute the primary raw materials used in compounding Croslite, which we use to produce our footwear products, from multiple suppliers. If the suppliers we rely on for elastomer resins were to cease production of these materials, we may not be able to obtain suitable substitute materials in time to avoid interruption of our production cycle, if at all. We may also have to pay materially higher prices in the future for the elastomer resins or any substitute materials we use, which would increase our production costs and could have a materially adverse impact on our margins and results of operations. | ||||
Reclassifications—Certain prior period amounts presented in the consolidated financial statements have been reclassified to conform to current period presentation as follows. | ||||
Management Estimates—The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Management believes that the estimates, judgments and assumptions made when accounting for items and matters such as, but not limited to, the allowance for doubtful accounts, sales returns, impairment assessments and charges, recoverability of assets (including deferred tax assets), uncertain tax positions, share-based compensation expense, the assessment of lower of cost or market on inventory, useful lives assigned to long-lived assets, depreciation and provisions for contingencies are reasonable based on information available at the time they are made. Management also makes estimates in the assessments of potential losses in relation to tax and customs matters and threatened or pending legal proceedings (see Note 13—Commitments & Contingencies and Note 15—Legal Proceedings). Actual results could materially differ from these estimates. For matters not related to income taxes, if a loss is considered probable and the amount can be reasonably estimated, we recognize an expense for the estimated loss. If there is the potential to recover a portion of the estimated loss from a third party, we make a separate assessment of recoverability and reduce the estimated loss if recovery is deemed probable. | ||||
Accumulated Other Comprehensive Income—Activity within our accumulated other comprehensive income (“AOCI”) balance consists solely of gains and losses resulting from the translation of foreign subsidiary financial statements to our reporting currency. Foreign currency translation resulting in changes to other comprehensive income and related reclassification adjustments are presented net of tax effects on the consolidated statements of other comprehensive income. Foreign currency reclassification adjustments are included within the line item entitled ‘Foreign currency transaction gains (losses), net’ on the consolidated statements of operations. | ||||
Fair Value—Fair value is the price that would be received from the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, we consider the principal or most advantageous market in which a hypothetical sale or transfer would take place and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of non-performance. | ||||
The fair value hierarchy is made up of three levels of inputs which may be used to measure fair value: | ||||
Level 1—observable inputs such as quoted prices for identical instruments in active markets; | ||||
Level 2—observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model derived valuations in which all significant inputs are observable in active markets; and | ||||
Level 3—unobservable inputs for which there is little or no market data and which require us to develop our own assumptions. We categorize fair value measurements within the fair value hierarchy based upon the lowest level of the most significant inputs used to determine such fair value measurement. | ||||
Cash equivalents primarily include time deposits and certificates of deposit with original maturities of three months or less. Time deposits and certificates of deposit included in cash equivalents are valued at amortized cost, which approximates fair value. These investments have been classified as a Level 1 measurement. | ||||
Derivative financial instruments are required to be recorded at their fair value, on a recurring basis. The fair values of our derivative instruments are determined using a discounted cash flow valuation model. The significant inputs used in the model are readily available in public markets or can be derived from observable market transactions, and therefore, have been classified as Level 2. These inputs include the applicable exchange rates and forward rates, and discount rates based on the prevailing LIBOR deposit rates. | ||||
Our other financial instruments are not required to be carried at fair value on a recurring basis. The carrying value of these financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximates fair value due to their short maturities. Based on borrowing rates currently available to us, with similar terms, the carrying values of capital lease obligations and the line of credit approximate their fair values. | ||||
Inventories and long-lived assets such as property and equipment and intangible assets are also not required to be carried at fair value on a recurring basis. For a discussion of inventory estimated fair value see “Inventory Valuation” below. However, when determining impairment losses, the fair values of property and equipment and intangibles must be determined. For such determination, we generally use either an income approach with inputs that are mainly unobservable, such as expected future cash flows, or a market approach using observable inputs such as replacement cost or third party appraisals, as appropriate. Estimated future cash flows are based on management’s operating budgets and forecasts which take into consideration both observable and unobservable inputs including growth rates, pricing, new markets and other factors expected to affect the business, as well as management’s forecasts for inventory, receivables, capital spending, and other cash needs. We consider this type of estimate to be classified as a Level 3 measurement. See Note 6—Fair Value Measurements for further discussion related to fair value measurements. | ||||
Cash and Cash Equivalents—Cash and cash equivalents represent cash and short-term, highly liquid investments with maturities of three months or less at the date of purchase. We consider receivables from credit card companies to be cash equivalents, if expected to be received within five days. | ||||
Accounts Receivable—Accounts receivable represent amounts due from customers. Accounts receivable are recorded at invoiced amounts, net of reserves and allowances, are not collateralized and do not bear interest. We use our best estimate to determine the required allowance for doubtful accounts based on a variety of factors, including the length of time receivables are past due, economic trends and conditions affecting our customer base, significant non-recurring events and historical non-collection experience. Specific provisions are recorded for individual receivables when we become aware of a customer’s inability to meet its financial obligations. See Note 10—Allowances for further discussion related to provisions for doubtful accounts and sale returns and allowances. | ||||
Inventory Valuation—Inventories are valued at the lower of cost or market. Inventory cost is determined using the moving average cost method. At least annually, or more frequently if events and circumstances indicate fair value is less than carrying value, we evaluate our inventory for possible impairment using standard categories to classify inventory based on the degree to which we believe that the products may need to be discounted below cost to sell within a reasonable period. We base inventory fair value on several subjective assumptions including estimated future demand and market conditions, as well as other observable factors such as current sell-through of our products, recent changes in demand for our products, global and regional economic conditions, historical experience selling through liquidation and price discounted channels and the amount of inventory on hand. If the estimated inventory fair value is less than its carrying value, the carrying value is adjusted to market value and the resulting impairment charge is recorded in ‘Cost of sales’ on the consolidated statements of operations. See Note 2—Inventories for further discussion related to inventories. | ||||
Property and Equipment—Property, equipment, furniture and fixtures are stated at cost and depreciation is computed using the straight-line method based on the estimated useful lives ranging from two to five years. Leasehold improvements are stated at cost and amortized on the straight-line basis over their estimated economic useful lives or the lease term, whichever is shorter. Depreciation of manufacturing assets is included in cost of sales on the consolidated statements of operations. Depreciation related to corporate, non-product and non-manufacturing assets is included in ‘Selling, general and administrative expenses’ on the consolidated statements of operations. | ||||
Impairment of Long-Lived Assets—Long-lived assets to be held and used are evaluated for impairment when events or circumstances indicate the carrying value of a long-lived asset may not be fully recoverable. Events that may indicate the impairment of a long-lived asset (or asset group, as defined below) include (i) a significant decrease in its market price, (ii) a significant adverse change in the extent or manner in which it is being used or in its physical condition, (iii) a significant adverse change in legal factors or business climate that could affect its value, including an adverse action or assessment by a regulator, (iv) an accumulation of costs significantly in excess of the amount originally expected for its acquisition or construction, (v) its current period operating or cash flow losses combined with historical operating or cash flow losses or a forecast of its cash flows demonstrate continuing losses associated with its use, and (vi) a current expectation that, more likely than not, it will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. If such facts indicate a potential impairment of a long-lived asset (or asset group), we assess the recoverability by determining if its carrying value exceeds the sum of its projected undiscounted cash flows from its use and eventual disposition over its remaining economic life. If the asset is not supported on an undiscounted cash flow basis, the amount of impairment is measured as the difference between its carrying value and its estimated fair value. Assets held for sale are reported at the lower of the carrying amount or fair value less costs to sell. Assets to be abandoned or from which no further benefit is expected are written down to zero at the time that the determination is made and the assets are removed entirely from service. | ||||
An asset group is the lowest level of assets and liabilities for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For assets involved in our retail business, our asset group is at the retail store level. See Note 3 – Property and Equipment for a discussion of impairment losses recorded during the periods presented. | ||||
Intangible Assets—Intangible assets that are determined to have finite lives are amortized over their useful lives on a straight-line basis. Customer relationships are amortized on a straight-line basis or an accelerated basis. Indefinite lived intangible assets, such as trade names, are not amortized and are evaluated for impairment at least annually and when circumstances imply possible impairment. | ||||
Amortization of manufacturing intangible assets is included in cost of sales on the consolidated statements of operations. Amortization related to corporate, non-product and non-manufacturing assets such as our global information systems is included in selling, general and administrative expenses on the consolidated statements of operations. The following table sets forth our definite lived intangible assets and the periods over which they are amortized. | ||||
Intangible Asset Class | Weighted Average Amortization Period | |||
Patents................................................................. | 10 years | |||
Customer relationships......................................... | Estimated customer life | |||
Core technology................................................... | 5 years | |||
Non-competition agreement................................... | Contractual term | |||
Capitalized software............................................. | Shorter of 7 years or useful life | |||
Capitalized Software—We capitalize certain internal and external software acquisition and development costs, including the costs of employees and contractors devoting time to the software development projects and external direct costs for materials and services. Initial costs associated with internally-developed-and-used software are expensed until it is determined that the project has reached the application development stage. Once in its development stage, subsequent additions, modifications or upgrades to an internal-use software project are capitalized to the extent that they add functionality. Software maintenance and training costs are expensed in the period in which they are incurred. Capitalized software primarily consists of our enterprise resource system software, warehouse management software and point of sale software. At least annually, we consider the potential impairment of capitalized software by assessing the substantive service potential of the software, changes, if any, in the extent or manner in which the software is used or is expected to be used, and the actual cost of software development or modification compared to expected cost. See Note 4—Goodwill and Intangible Assets for further discussion. | ||||
Impairment of Intangible Assets—Intangible assets with indefinite lives are evaluated for impairment when events or changes in circumstances indicate that the carrying value may not be fully recoverable and at least annually. Intangible assets that are determined to have definite lives are amortized over their useful lives and are evaluated for impairment only when events or circumstances indicate a carrying value may not be fully recoverable. Recoverability is based on the estimated future undiscounted cash flows of the asset. If the asset is not supported on an undiscounted cash flow basis, the amount of impairment is measured as the difference between its carrying value and its estimated fair value. | ||||
Goodwill—Goodwill represents the excess purchase price paid over the fair value of assets acquired and liabilities assumed in acquisitions. Goodwill is considered an indefinite lived asset and therefore is not amortized. The Company assesses goodwill for impairment annually on the last day of the fourth quarter, or more frequently if events and circumstances indicate impairment may have occurred. If the carrying value of goodwill exceeds its implied fair value, the Company records an impairment loss equal to the difference. See Note 4—Goodwill and Intangible Assets for discussion of goodwill balances and discussion of impairment losses recorded during the periods presented. | ||||
Earnings per Share—Basic and diluted earnings per common share (“EPS”) is presented using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividend rights and participation rights in undistributed earnings. Under the two-class method, EPS is computed by dividing the sum of distributed and undistributed earnings attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. A participating security is an unvested share-based payment award containing non-forfeitable rights to dividends and must be included in the computation of earnings per share pursuant to the two-class method. Shares of the Company’s non-vested restricted stock awards are considered participating securities. Diluted EPS reflects the potential dilution from securities that could share in the earnings of the Company. Anti-dilutive securities are excluded from diluted EPS. See Note 12—Earnings per Share for further discussion. | ||||
Recognition of Revenues—Revenues are recognized when the customer takes title and assumes risk of loss, collection of related receivables is probable, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable. Title passes on shipment or on receipt by the customer depending on the country in which the sale occurs and the agreement terms with the customer. Allowances for estimated returns and discounts are recognized when the related revenue is earned. | ||||
Shipping and Handling Costs and Fees—Shipping and handling costs are expensed as incurred and included in cost of sales. Shipping and handling fees billed to customers are included in revenues. | ||||
Share-based Compensation—We have share-based compensation plans in which certain officers, employees and members of the board of directors are participants and may be granted stock options, restricted stock and stock performance awards. Awards granted under these plans are fair valued and amortized, net of estimated forfeitures, over the vesting period using the straight-line method. The fair value of stock options is calculated by using the Black Scholes option pricing model that requires estimates for expected volatility, expected dividends, the risk-free interest rate and the term of the option. If any of the assumptions used in the Black Scholes model or the anticipated number of shares to be awarded change significantly, share-based compensation expense may differ materially in the future from that recorded in the current period. Share-based compensation expense associated with our manufacturing and retail employees is included in ‘Cost of sales’ in the consolidated statements of operations. Share-based compensation expense associated with selling, marketing and administrative employees is included ‘Selling, general and administrative expenses’ on the consolidated statements of operations. Share-based compensation directly associated with the construction or implementation of certain long-term projects for internal use are capitalized to the consolidated balance sheets until assets are ready for intended use and will be amortized over the useful life of the assets upon that date. See Note 9—Equity for additional information related to share-based compensation. | ||||
Defined contribution plans—We have a 401(k) plan known as the Crocs, Inc. 401(k) Plan (the “Plan”). The Plan is available to employees on our U.S. payroll and provides employees with tax deferred salary deductions and alternative investment options. The Plan does not provide employees with the option to invest in our common stock. Employees may contribute up to 75.0% of their salary, subject to certain limitations. We match employees’ contributions to the Plan up to a maximum of 4.0% of eligible compensation. We expensed $6.8 million, $5.8 million and $4.6 million in the years ended December 31, 2013, 2012 and 2011, respectively, for our employee match contributions to the Plan. | ||||
Advertising—Advertising costs are expensed as incurred and production costs are generally expensed when the advertising is first run. Total advertising, marketing and promotional costs reflected in ‘Selling, general, and administrative expenses’ on the consolidated statement of operations were $47.6 million, $39.8 million and $39.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||
Research and Development—Research and development costs are expensed as incurred. Research and development expenses amounted to $15.4 million, $12.0 million and $10.8 million for the years ended December 31, 2013, 2012 and 2011, respectively, and are included in ‘Selling, general, and administrative expenses’ in the consolidated statement of operations. | ||||
Foreign Currency Translation and Foreign Currency Transactions—Our reporting currency is the U.S. dollar. Assets and liabilities of foreign operations denominated in local currencies are translated at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the weighted average rate of exchange during the applicable period. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are included in the foreign currency translation adjustment, a component of accumulated other comprehensive income in stockholders’ equity. | ||||
Gains and losses generated by transactions denominated in currencies other than the local functional currencies are reflected in the consolidated statement of operations in the period in which they occur and are primarily associated with payables and receivables arising from intercompany transactions. | ||||
Derivative Foreign Currency Contracts—We are directly and indirectly affected by fluctuations in foreign currency rates which may adversely impact our financial performance. To mitigate the potential impact of foreign currency exchange rate risk, we may employ derivative financial instruments including forward contracts and option contracts. Forward contracts are agreements to buy or sell a quantity of a currency at a predetermined future date and at a predetermined rate. An option contract is an agreement that conveys the purchaser the right, but not the obligation, to buy or sell a quantity of a currency at a predetermined rate during a period or at a time in the future. These derivative financial instruments are viewed as risk management tools and are not used for trading or speculative purposes. We recognize derivative financial instruments as either assets or liabilities in the consolidated balance sheets and measure those instruments at fair value. Changes in the fair value of derivatives not designated or effective as hedges are recorded in ‘Foreign currency transaction (gains)/losses, net” in the consolidated statements of operations. We had no derivative instruments that qualified for hedge accounting during any of the periods presented. See Note 7—Fair Value Measurements and Financial Instruments for further discussion. | ||||
Income Taxes—Income taxes are accounted for using the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of other assets and liabilities. We provide for income taxes at the current and future enacted tax rates and laws applicable in each taxing jurisdiction. We use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. We recognize interest and penalties related to income tax matters in income tax expense in the consolidated statement of operations. See Note 11—Income Taxes for further discussion. | ||||
Taxes Assessed by Governmental Authorities—Taxes assessed by governmental authorities that are directly imposed on a revenue transaction, including value added tax, are recorded on a net basis and are therefore excluded from sales. | ||||
Application of Recent Accounting Pronouncements | ||||
Recently Adopted Accounting Pronouncements | ||||
In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-11 Balance Sheet (Topic 210) Disclosures about Offsetting Assets and Liabilities (“ASU No. 2011-11”). This pronouncement was issued to enhance disclosure requirements surrounding the nature of an entity’s right to offset and related arrangements associated with its financial instruments and derivative instruments. This new guidance requires companies to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to master netting arrangements. ASU No. 2011-11 was effective for us on January 1, 2013. The adoption of this pronouncement did not have a material impact to the Company’s consolidated financial position or results of operations. ASU No. 2011-11 was subsequently amended by ASU No. 2013-01. | ||||
In January 2013, the FASB issued ASU No. 2013-01 Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (“ASU No. 2013-01”). This pronouncement clarifies the scope of the offsetting disclosure requirements in ASU No. 2011-11. Under ASU No. 2013-01, the disclosure would apply to derivative instruments accounted for in accordance with ASC 815. ASU No. 2013-01 was effective for us January 1, 2013. The adoption of this pronouncement did not have a material impact to the Company’s consolidated financial position or results of operations. | ||||
In February 2013, the FASB issued ASU No. 2013-02 Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU No. 2013-02”). This pronouncement required entities to disclose the following additional information about items reclassified out of AOCI: | ||||
1) | Changes in AOCI balances by component, with separate presentation of reclassification adjustments and current period other comprehensive income (“OCI”). Both before-tax and net-of-tax presentations of the information are acceptable as long as an entity presents the income tax benefit or expense attributed to each component of OCI and reclassification adjustments in either the financial statements or the notes to the financial statements. | |||
2) | Significant items reclassified out of AOCI by component either on the face of the consolidated statements of operations or as a separate footnote to the financial statements. | |||
This pronouncement does not change the current U.S. GAAP requirements for interim financial statement reporting of comprehensive income. However, public entities also need to include information about (1) changes in AOCI balances by component and (2) significant items reclassified out of AOCI in interim reporting periods. This pronouncement was effective for us on January 1, 2013. The adoption of this pronouncement did not have a material impact to the Company’s consolidated financial position or results of operations. | ||||
In March 2013, the FASB issued ASU No. 2013-05 Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ASU No. 2013-05”). This pronouncement indicates that the entire amount of a cumulative translation adjustment (CTA) related to an entity’s investment in a foreign entity should be released when there has been a: | ||||
1) | Sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity. | |||
2) | Loss of a controlling financial interest in an investment in a foreign entity (i.e. deconsolidation) | |||
3) | Step acquisition for a foreign entity (i.e. when an entity has changed from applying the equity method for an investment in a foreign entity to consolidating the foreign entity). | |||
This ASU does not change the requirement to release a pro rata portion of the CTA of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. For all public entities, this pronouncement is effective for fiscal years beginning on or after December 15, 2013. As early adoption is permitted, the Company adopted this pronouncement on January 1, 2013. The adoption of this pronouncement did not have a material impact to the Company’s consolidated financial position or results of operations. | ||||
Recently Issued Accounting Pronouncements | ||||
In July 2013, the FASB issued ASU No. 2013-11 Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU No. 2013-11”). This pronouncement provides guidance on financial statement presentation of an unrecognized tax benefit (“UTB”) when a net operating loss (“NOL”) carryforward, a similar tax loss or a tax credit carryforward exists. Under the pronouncement, an entity must present a UTB, or a portion of the UTB, in the financial statements as a reduction to a deferred tax asset (“DTA”) for an NOL carryforward, a similar tax loss or a tax credit carryforward except when: | ||||
1) | An NOL carryforward, a similar tax loss or a tax credit carryforward is not available as of the reporting date under the governing tax law to settle that would result from the disallowance of the tax position. | |||
2) | The entity does not intend to use the DTA for this purpose (provided that the tax law permits a choice). | |||
If either of these conditions exists, an entity should present a UTB in the financial statements as a liability and should not net the UTB with a DTA. This amendment does not affect the amounts disclosed in the tabular reconciliation of the total amounts of UTBs because the tabular reconciliation presents gross amounts of UTBs. This pronouncement is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2013. The Company will adopt the provisions of ASU No. 2013-11 on January 1, 2014. We do not anticipate the provisions of ASU No. 2013-11 will have a material impact on to the Company’s consolidated financial position or results of operations. | ||||
Inventories
Inventories | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Inventories [Abstract] | ' | ||||||
Inventories | ' | ||||||
2. INVENTORIES | |||||||
The following table summarizes inventories by major classification as of December 31, 2013 and 2012: | |||||||
December 31, | |||||||
($ thousands) | 2013 | 2012 | |||||
Finished goods | $ | 154,272 | $ | 155,833 | |||
Work-in-progress | 685 | 911 | |||||
Raw materials | 7,384 | 8,060 | |||||
Inventories | $ | 162,341 | $ | 164,804 | |||
Inventory Write-down | |||||||
During the year ended December 31, 2013, we recorded approximately $3.4 million of inventory write-down charges related to obsolete inventory with a market value lower than cost. These charges were related to certain obsolete raw materials, footwear and accessories in the Americas segment and are reported in ‘Cost of sales’ in the consolidated statement of operations for the year ended December 31, 2013. We recorded no inventory write-down charges for the years ended December 31, 2012 and 2011. | |||||||
Charitable Contributions | |||||||
During the years ended December 31, 2013, 2012 and 2011, we donated certain inventory items to charitable organizations consisting primarily of end of life units. The contributions made were expensed at their fair value of $0.6 million, $1.7 million and $2.0 million, respectively. Also during the years ended December 31, 2013, 2012 and 2011, we recognized a gain of $0.1 million, $0.6 million and $0.7 million, respectively, and a net reduction of inventory of $0.5 million, $1.1 million and $1.3 million, respectively, as the fair value of the inventory contributed exceeded its carrying amount. | |||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Property And Equipment [Abstract] | ' | |||||||||||||||
Property And Equipment | ' | |||||||||||||||
3. PROPERTY AND EQUIPMENT | ||||||||||||||||
The following table summarizes property and equipment by major classification as of December 31, 2013 and 2012: | ||||||||||||||||
December 31, | ||||||||||||||||
($ thousands) | 2013 | 2012 | ||||||||||||||
Machinery and equipment | $ | 52,003 | $ | 68,713 | ||||||||||||
Leasehold improvements | 93,235 | 88,653 | ||||||||||||||
Furniture, fixtures and other | 23,653 | 20,827 | ||||||||||||||
Construction-in-progress | 16,231 | 8,766 | ||||||||||||||
Property and equipment, gross (1) | 185,122 | 186,959 | ||||||||||||||
Less: Accumulated depreciation (2) | -98,151 | -104,718 | ||||||||||||||
Property and equipment, net | $ | 86,971 | $ | 82,241 | ||||||||||||
(1)Includes $0.1 million of certain equipment held under capital leases and classified as equipment as of each of December 31, 2013 and 2012. | ||||||||||||||||
(2)Includes $0.1 million of accumulated depreciation related to certain equipment held under capital leases, as of each of December 31, 2013 and 2012, which are depreciated using the straight-line method over the lease term. | ||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011, we recorded $24.3 million, $23.1 million and $27.5 million, respectively, in depreciation expense of which $2.9 million, $4.6 million and $11.5 million, respectively, was recorded in ‘Cost of sales’, with the remaining amounts recorded in ‘Selling, general and administrative expenses’ on the consolidated statements of operations. | ||||||||||||||||
During the year ended December 31, 2013, we retired $19.5 million of fully depreciated shoe molds related to styles that we no longer intend on manufacturing. As such, we did not record a gain or loss associated with the disposal and the cost and accumulated depreciation previously classified as machinery and equipment were removed from the consolidated balance sheets. We did not retire a material amount of fully depreciated, long-lived assets during the year ended December 31, 2012. | ||||||||||||||||
We periodically evaluate all of our long-lived assets for impairment when events or circumstances would indicate the carrying value of a long-lived asset may not be fully recoverable. During the years ended December 31, 2013 and 2012, we recorded $10.6 million and $1.4 million, respectively, in impairment charges related to underperforming retail locations, respectively, that were unlikely to generate sufficient cash flows to fully recover the carrying value of the stores’ assets over their remaining economic life. In addition, during the year ended December 31, 2011, we recorded $0.5 million in impairment charges in our ‘Other business’ category, which primarily related to obsolete molds previously depreciated in ‘Cost of sales’. The following table summarizes asset impairment charges by reportable operating segment for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
($ thousands, except store count data) | Impairment charge | Number of stores | Impairment charge | Number of stores | Impairment charge | Number of stores | ||||||||||
Americas | $ | 3,861 | 23 | $ | 1,410 | 4 | $ | - | - | |||||||
Asia Pacific | 185 | 2 | - | - | - | - | ||||||||||
Japan | - | - | - | - | - | - | ||||||||||
Europe | 6,565 | 35 | - | - | - | - | ||||||||||
Asset impairment charges | $ | 10,611 | 60 | $ | 1,410 | 4 | $ | - | - | |||||||
Goodwill_Intangible_Assets
Goodwill & Intangible Assets | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Goodwill & Intangible Assets [Abstract] | ' | ||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||
4. GOODWILL & INTANGIBLE ASSETS | |||||||||||||||||||
The following table summarizes the goodwill and identifiable intangible assets as of December 31, 2013 and 2012: | |||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||
($ thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||
Capitalized software | $ | 118,940 | -1 | $ | -49,665 | -2 | $ | 69,275 | $ | 87,426 | -1 | $ | -33,933 | -2 | $ | 53,493 | |||
Customer relationships | 6,878 | -6,439 | 439 | 7,145 | -6,222 | 923 | |||||||||||||
Patents, copyrights, and trademarks | 6,501 | -4,272 | 2,229 | 6,161 | -3,522 | 2,639 | |||||||||||||
Core technology | 4,548 | -4,548 | - | 4,856 | -4,856 | - | |||||||||||||
Other | 983 | -709 | 274 | 670 | -636 | 34 | |||||||||||||
Total finite lived intangible assets | 137,850 | -65,633 | 72,217 | 106,258 | -49,169 | 57,089 | |||||||||||||
Indefinite lived intangible assets | 97 | - | 97 | 113 | - | 113 | |||||||||||||
Goodwill | 2,508 | - | 2,508 | 2,729 | - | 2,729 | |||||||||||||
Intangible assets | $ | 140,455 | $ | -65,633 | $ | 74,822 | $ | 109,100 | $ | -49,169 | $ | 59,931 | |||||||
(1)Includes $4.1 million of software held under a capital lease classified as capitalized software as of each of December 31, 2013 and 2012. | |||||||||||||||||||
(2)Includes $1.9 million and $1.3 million of accumulated amortization of software held under a capital lease as of December 31, 2013 and 2012, respectively, which is amortized using the straight-line method over the useful life. | |||||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011, amortization expense recorded for intangible assets with finite lives was $17.2 million, $13.6 million and $9.8 million, respectively, of which $6.0 million, $4.3 million and $2.9 million, respectively, was recorded in ‘Cost of sales’, with the remaining amounts recorded in ‘Selling, general and administrative expenses’ on the consolidated statements of operations. | |||||||||||||||||||
The following table summarizes estimated future annual amortization of intangible assets as of December 31, 2013: | |||||||||||||||||||
Amortization | |||||||||||||||||||
Fiscal years ending December 31, | ($ thousands) | ||||||||||||||||||
2014 | $ | 16,721 | |||||||||||||||||
2015 | 13,729 | ||||||||||||||||||
2016 | 13,935 | ||||||||||||||||||
2017 | 14,706 | ||||||||||||||||||
2018 | 7,198 | ||||||||||||||||||
Thereafter | 5,928 | ||||||||||||||||||
Total | $ | 72,217 | |||||||||||||||||
Goodwill Impairment | |||||||||||||||||||
We assess goodwill for impairment on an annual basis on the last day of the fourth quarter, or more frequently if events and circumstances indicate impairment may have occurred, at the reporting unit level. If the carrying value of the goodwill exceeds its implied fair value, we record an impairment loss equal to the difference. During the year ended December 31, 2013, we recorded $0.3 million of goodwill impairment related to the retail channel of our Crocs Benelux B.V. business purchased by our Crocs Stores B.V. subsidiary in July 2012. Goodwill and associated impairments are part of our Europe operating segment. During the years ended December 31, 2012 and 2011, we did not record any impairments related to goodwill. | |||||||||||||||||||
Accrued_Expenses_And_Other_Cur
Accrued Expenses And Other Current Liabilities | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Accrued Expenses And Other Current Liabilities [Abstract] | ' | ||||||
Accrued Expenses And Other Current Liabilities | ' | ||||||
5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||||||
The following table summarizes accrued expenses and other current liabilities as of December 31, 2013 and 2012: | |||||||
December 31, | |||||||
($ thousands) | 2013 | 2012 | |||||
Accrued compensation and benefits | $ | 26,903 | $ | 19,714 | |||
Professional services | 14,128 | 10,342 | |||||
Fulfillment, freight and duties | 12,565 | 8,621 | |||||
Accrued rent and occupancy | 12,198 | 10,226 | |||||
Sales/use and VAT tax payable | 9,142 | 12,444 | |||||
Accrued legal | 8,722 | 3,246 | |||||
Customer deposits | 6,940 | 2,593 | |||||
Entrusted loan payable (1) | - | 7,943 | |||||
Other (2) | 6,513 | 6,242 | |||||
Total accrued expenses and other current liabilities | $ | 97,111 | $ | 81,371 | |||
(1)A corresponding entrusted loan receivable of $7.9 million is recorded in ‘Other receivables’ as of December 31, 2012 as amounts are related to our subsidiaries in China. The entrusted loan was paid in full during the second quarter of 2013 and as such, the entrusted loan payable, and corresponding receivable, were removed from the consolidated balance sheets as of December 31, 2013. | |||||||
(2)The amounts in Other consist of various accrued expenses and no individual item accounted for more than 5% of the total balance at December 31, 2013 or December 31, 2012. | |||||||
Asset Retirement Obligations | |||||||
We record a liability equal to the fair value of the estimated future cost to retire an asset, if the liability’s fair value can be reasonably estimated. Our asset retirement obligation (“ARO”) liabilities are primarily associated with the disposal of property and equipment which we are contractually obligated to remove at the end of certain retail and office leases in order to restore the facilities back original condition as specified in the related lease agreements. We estimate the fair value of these liabilities based on current store closing costs and discount the costs back as if they were to be performed at the inception of the lease. At the inception of such leases, we record the ARO as a liability and also record a related asset in an amount equal to the estimated fair value of the obligation. The capitalized asset is then depreciated on a straight-line basis over the useful life of the asset. Upon retirement of the ARO liability, any difference between the actual retirement costs incurred and the previously recorded estimated ARO liability is recognized as a gain or loss in the consolidated statements of operations. Our ARO liability as of December 31, 2013 and 2012 was $2.0 million and $2.4 million, respectively. | |||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||
Fair Value Measurements | ' | ||||||||||||||
6. FAIR VALUE MEASUREMENTS | |||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||
The following tables summarize the financial instruments required to be measured at fair value on a recurring basis as of December 31, 2013 and 2012. See Note 1 – Organization & Summary of Significant Accounting Policies for additional detail regarding our fair value measurement determinations. | |||||||||||||||
Fair Value as of December 31, 2013 | |||||||||||||||
Quoted prices in | Significant | ||||||||||||||
active markets | other | Significant | |||||||||||||
for identical | observable | unobservable | |||||||||||||
assets or liabilities | inputs | inputs | |||||||||||||
($ thousands) | (Level 1) | (Level 2) | (Level 3) | Total | Balance Sheet Classification | ||||||||||
Cash equivalents | $ | 37,870 | $ | - | $ | - | $ | 37,870 | Cash and cash equivalents and other current assets | ||||||
Derivative assets: | |||||||||||||||
Foreign currency contracts | - | 13,501 | - | 13,501 | Prepaid expenses and other current assets and other assets | ||||||||||
Derivative liabilities: | |||||||||||||||
Foreign currency contracts | $ | - | $ | 984 | $ | - | $ | 984 | Accrued expense and other current liabilities | ||||||
Fair Value as of December 31, 2012 | |||||||||||||||
Quoted prices in | Significant | ||||||||||||||
active markets | other | Significant | |||||||||||||
for identical | observable | unobservable | |||||||||||||
assets or liabilities | inputs | inputs | |||||||||||||
($ thousands) | (Level 1) | (Level 2) | (Level 3) | Total | Balance Sheet Classification | ||||||||||
Cash equivalents | $ | 14,800 | $ | - | $ | - | $ | 14,800 | Cash and cash equivalents | ||||||
Derivative assets: | |||||||||||||||
Foreign currency contracts | - | 5,548 | - | 5,548 | Prepaid expenses and other current assets and other assets | ||||||||||
Derivative liabilities: | |||||||||||||||
Foreign currency contracts | $ | - | $ | 295 | $ | - | $ | 295 | Accrued expense and other current liabilities | ||||||
Non-Recurring Fair Value Measurements | |||||||||||||||
The majority of our non-financial instruments, which include inventories, property and equipment and intangible assets, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur such that a non-financial instrument is required to be evaluated for impairment and the carrying value is not recoverable, the carrying value would be adjusted to the lower of its cost or fair value and an impairment charge would be recorded. See Note 2 – Inventories, Note 3 – Property and Equipment and Note 4 – Goodwill & Intangible Assets for discussions on impairment charges recorded during the periods presented. | |||||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Derivative Financial Instruments [Abstract] | ' | |||||||||||
Derivative Financial Instruments | ' | |||||||||||
7. DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||
We transact business in various foreign countries and are therefore exposed to foreign currency exchange rate risk inherent in revenues, costs, and monetary assets and liabilities denominated in non-functional currencies. We have entered into foreign currency exchange forward contract and currency swap derivative instruments to selectively protect against volatility in the value of non-functional currency denominated monetary assets and liabilities, and of future cash flows caused by changes in foreign currency exchange rates. We do not designate these derivative instruments as hedging instruments under the accounting standards for derivatives and hedging. Accordingly, these instruments are recorded at fair value as a derivative asset or liability on the balance sheet with their corresponding change in fair value recognized in ‘Foreign currency transaction (gains) losses, net’ in our consolidated statements of operations. For purposes of the cash flow statement, we classify the cash flows at settlement from undesignated instruments in the same category as the cash flows from the related hedged items, generally within ‘Cash provided by operating activities’. See Note 6 — Fair Value Measurements for further details regarding the fair values of the corresponding derivative assets and liabilities. | ||||||||||||
The following table summarizes the notional amounts of the outstanding foreign currency exchange contracts at December 31, 2013 and 2012. The notional amounts of the derivative financial instruments shown below are denominated in their U.S. dollar equivalents and represent the amount of all contracts of the foreign currency specified. These notional values do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of our exposure to the foreign currency exchange risks. | ||||||||||||
December 31, | ||||||||||||
($ thousands) | 2013 | 2012 | ||||||||||
Foreign currency exchange forward contracts by currency: | ||||||||||||
Japanese Yen | $ | 68,707 | $ | 112,500 | ||||||||
Euro | 38,577 | 5,159 | ||||||||||
Singapore Dollar | 28,225 | - | ||||||||||
Mexican Peso | 18,350 | 11,400 | ||||||||||
Russian Ruble | 17,588 | - | ||||||||||
Pound Sterling | 15,487 | 8,742 | ||||||||||
South Korean Won | 12,100 | - | ||||||||||
Australian Dollar | 4,941 | 4,178 | ||||||||||
New Taiwan Dollar | 3,463 | - | ||||||||||
Canadian Dollar | 3,428 | - | ||||||||||
South African Rand | 3,076 | - | ||||||||||
Indian Rupee | 2,150 | - | ||||||||||
Hong Kong Dollar | 1,844 | - | ||||||||||
Swedish Krona | 1,615 | - | ||||||||||
New Zealand Dollar | 943 | 1,137 | ||||||||||
Total notional value, net | $ | 220,494 | $ | 143,116 | ||||||||
Latest maturity date | Dec-15 | Dec-15 | ||||||||||
The following table presents the amounts affecting the consolidated statements of operations from derivative instruments for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||
Year Ended December 31, | ||||||||||||
($ thousands) | 2013 | 2012 | 2011 | Location of Gain (Loss) Recognized in Income on Derivatives | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Foreign currency exchange forwards | $ | -13,002 | $ | -7,200 | $ | 540 | Foreign currency transaction (gains) losses, net | |||||
The account ‘Foreign currency transaction gains (losses), net’ on the consolidated statements of operations includes both realized and unrealized gains/losses from underlying foreign currency activity and derivative contracts. These gains and losses are reported on a net basis. For the year ended December 31, 2013, the net loss recognized of $4.7 million recorded on the consolidated statements of operations is comprised of a $17.7 million net loss associated with exposure from day-to-day business transactions in various foreign currencies partially offset by a $13.0 million net gain associated with our derivative instruments. For the year ended December 31, 2012, the net loss recognized of $2.5 million recorded on the consolidated statements of operations is comprised of a $9.7 million net loss associated with exposure from day-to-day business transactions in various foreign currencies partially offset by a $7.2 million net gain associated with our derivative instruments. For the year ended December 31, 2011, the net gain recognized of $4.9 million recorded on the consolidated statements of operations is comprised of a $5.4 million net gain associated with exposure from day-to-day business transactions in various foreign currencies partially offset by a $0.5 million net loss associated with our derivative instruments. | ||||||||||||
Revolving_Credit_Facitlity_Ban
Revolving Credit Facitlity & Bank Borrowings | 12 Months Ended | ||
Dec. 31, 2013 | |||
Debt Disclosure [Abstract] | ' | ||
Revolving Credit Facility & Bank Borrowings | ' | ||
8. REVOLVING CREDIT FACILITY & BANK BORROWINGS | |||
Revolving Credit Facility | |||
On September 25, 2009, we entered into a Revolving Credit and Security Agreement, as amended, with the lenders named therein and PNC Bank, National Association (“PNC”), as a lender and administrative agent for the lenders. On December 16, 2011, we entered into our first amendment to the Revolving Credit and Security Agreement (the “Amended and Restated Credit Agreement”). | |||
On December 27, 2013, we entered into the Third Amendment to Amended and Restated Credit Agreement (the “Third Amendment”), pursuant to which certain terms of the Amended and Restated Credit Agreement were amended. The Third Amendment, among other things, (i) allows for the payment of dividends on the Series A Convertible Preferred Stock (“Series A Preferred Stock”), (ii) permits the Company to have greater flexibility to repurchase its Common Stock, (iii) decreases the maximum leverage ratio from 3.50 to 1.00 to 3.25 to 1.00, and (iv) amends certain definitions of the financial covenants to become more favorable to the Company. See Note 17 – Subsequent Events for further details regarding the payment of dividends on the Series A Preferred Stock. | |||
The Credit Agreement enables us to borrow up to $100.0 million, with the ability to increase commitments to up to $125.0 million subject to certain conditions, and is currently set to mature on December 16, 2017. The Credit Agreement is available for working capital, capital expenditures, permitted acquisitions, reimbursement of drawings under letters of credit, and permitted dividends, distributions, purchases, redemptions and retirements of equity interests. Borrowings under the Credit Agreement are secured by all of our assets including all receivables, equipment, general intangibles, inventory, investment property, subsidiary stock and intellectual property. Borrowings under the Credit Agreement bear interest at a variable rate. For domestic rate loans, the interest rate is equal to the highest of (i) the daily federal funds open rate as quoted by ICAP North America, Inc. plus 0.5%, (ii) PNC’s prime rate and (iii) a daily LIBOR rate plus 1.0%, in each case there is an additional margin ranging from 0.25% to 1.00% based on certain conditions. For LIBOR rate loans, the interest rate is equal to a LIBOR rate plus a margin ranging from 1.25% to 2.00% based on certain conditions. The Credit Agreement requires monthly interest payments with respect to domestic rate loans and at the end of each interest period with respect to LIBOR rate loans. The Credit Agreement further provides for a limit on the issuance of letters of credit to a maximum of $20.0 million. The Credit Agreement contains provisions requiring us to maintain compliance with certain restrictive and financial covenants. | |||
As of December 31, 2013 and 2012, we had no outstanding borrowings under the Credit Agreement. As of each of December 31, 2013 and 2012, we had had issued and outstanding letters of credit of $7.2 million, which were reserved against the borrowing base under the terms of the Credit Agreement. During the years ended December 31, 2013, 2012 and 2011, we capitalized $0.1 million, $0.2 million and $0.4 million, respectively, in fees and third party costs which were incurred in connection with the Credit Agreement, as deferred financing costs. As of December 31, 2013, we were in compliance with all restrictive financial and other covenants under the Credit Agreement. | |||
Long-term Bank Borrowings | |||
On December 10, 2012, we entered into a Master Installment Payment Agreement (“Master IPA”) with PNC in which PNC finances the Company’s purchase of software and services, which may include but are not limited to third party costs to design, install and implement software systems, and associated hardware described in the schedules defined within the Master IPA. This agreement was entered into to finance our implementation of a new enterprise resource planning (“ERP”) system which began in October 2012 and is estimated to continue through late 2014. The terms of the agreement consist of variable interest rates and payment terms based on amounts borrowed and timing of activity throughout the implementation of the ERP system. | |||
As of December 31, 2013 and 2012, we had $16.8 million and $6.6 million, respectively, of long-term debt outstanding under five and one separate notes payable, respectively, of which $5.1 million and $2.0 million, respectively, represent current installments. As of December 31, 2013, the notes bear interest rates ranging from 2.45% to 2.79% and maturities ranging from September 2016 to September 2017. As this debt arrangement relates solely to the construction and implementation of an ERP system for use by the entity, all interest expense incurred under the arrangement has been capitalized to the consolidated balance sheets until the assets are ready for intended use and will be amortized over the useful life of the software upon that date. During the year ended December 31, 2013, we capitalized $0.3 million in interest expense related to this debt arrangement to the consolidated balance sheets. During the year ended December 31, 2012, we recorded no capitalized interest related to this debt arrangement to the consolidated balance sheets. Interest rates and payment terms are subject to changes as further financing occurs under the Master IPA. | |||
The aggregate maturities of long-term bank borrowings at December 31, 2013 are as follows (in thousands): | |||
Fiscal years ending December 31, | |||
2014 | $ | 5,135 | |
2015 | 5,271 | ||
2016 | 4,765 | ||
2017 | 1,607 | ||
2018 | - | ||
Thereafter | - | ||
Total principal debt maturities | $ | 16,778 | |
Equity
Equity | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Stock Based Compensation [Abstract] | ' | |||||||||
Equity | ' | |||||||||
9. EQUITY | ||||||||||
Equity Incentive Plans | ||||||||||
On August 15, 2005, we adopted the 2005 Equity Incentive Plan (the “2005 Plan”), which permitted the issuance of up to 14.0 million common shares in connection with the grant of non-qualified stock options, incentive stock options, and restricted stock to eligible employees, consultants and members of our board of directors. As of December 31, 2013 and 2012, 0.7 million and 0.9 million stock options, respectively, were outstanding under the 2005 Plan. Following the adoption of the 2007 Equity Incentive Plan (the “2007 Plan”), described below, no additional grants were made under the 2005 Plan. | ||||||||||
On July 9, 2007, we adopted and on June 28, 2011 we amended the 2007 Plan which increased the allowable number of shares of our common stock reserved for issuance under the 2007 Plan from 9.0 million to 15.3 million (subject to adjustment for future stock splits, stock dividends and similar changes in our capitalization) in connection with the grant of non-qualified stock options, incentive stock options, restricted stock, restricted stock units, stock appreciation rights, performance units, common stock or any other share-based award to eligible employees, consultants and members of our board of directors. As of December 31, 2013 and 2012, 3.6 million and 3.5 million shares of common stock, respectively, were issuable under the 2007 Plan pursuant to outstanding stock options and RSUs. As of December 31, 2013, 4.4 million shares were available for future issuance under the 2007 Plan. | ||||||||||
Restricted stock awards and units generally vest annually on a straight-line basis over three or four years depending on the terms of the award agreement. | ||||||||||
Stock Option Activity | ||||||||||
The following table summarizes stock option activity for the years ended December 31, 2013, 2012 and 2011: | ||||||||||
Weighted | ||||||||||
Average | ||||||||||
Weighted | Remaining | Aggregate | ||||||||
Average | Contractual | Intrinsic | ||||||||
Exercise | Life | Value | ||||||||
Shares | Price | (Years) | ($ thousands) | |||||||
Outstanding at December 31, 2010 | 5,007,337 | $ | 9.10 | 6.36 | $ | 47,009 | ||||
Granted | 468,000 | 19.81 | ||||||||
Exercised | -1,738,741 | 6.28 | ||||||||
Forfeited or expired | -405,565 | 10.46 | ||||||||
Outstanding at December 31, 2011 | 3,331,031 | 11.91 | 6.35 | 18,468 | ||||||
Granted | 208,400 | 16.84 | ||||||||
Exercised | -613,691 | 6.04 | ||||||||
Forfeited or expired | -304,054 | 17.55 | ||||||||
Outstanding at December 31, 2012 | 2,621,686 | 13.03 | 5.55 | 11,373 | ||||||
Granted | 177,000 | 15.62 | ||||||||
Exercised | -333,395 | 6.84 | ||||||||
Forfeited or expired | -360,139 | 18.18 | ||||||||
Outstanding at December 31, 2013 | 2,105,152 | $ | 13.34 | 4.86 | $ | 10,790 | ||||
Exercisable at December 31, 2013 | 1,732,398 | $ | 12.56 | 4.21 | $ | 10,621 | ||||
Vested and expected to vest at December 31, 2013 | 2,019,478 | $ | 13.22 | 4.72 | $ | 10,745 | ||||
During the years ended December 31, 2013, 2012 and 2011, options issued were valued using the Black Scholes option pricing model using the following assumptions: | ||||||||||
Year Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Expected volatility | 50 - 64% | 50 - 70% | 50 - 60% | |||||||
Dividend yield | - | - | - | |||||||
Risk-free interest rate | 0.81% - 1.62% | 0.62% - 1.20% | 0.87% - 2.31% | |||||||
Expected life (in years) | 4.00 | 4.00 - 4.27 | 4.35 - 4.89 | |||||||
The weighted average fair value of options granted during the years ended December 31, 2013, 2012 and 2011 was approximately $7.33, $7.76 and $9.19, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $2.8 million, $6.9 million and $27.3 million, respectively. During the years ended December 31, 2013 and 2012, we received $2.3 million and $3.7 million in cash in connection with the exercise of stock options with no income tax benefit due to our use of Accounting Standard Codification 740 – ‘Income Taxes’ (with-and-without approach) (“ASC 740”) ordering for purposes of determining when excess benefits have been realized (see Note 11—Income Taxes). The total grant date fair value of stock options vested during the years ended December 31, 2013, 2012 and 2011 was $1.2 million, $2.8 million and $2.7 million, respectively. | ||||||||||
As of December 31, 2013, we had $2.6 million of total unrecognized share-based compensation expense related to unvested options, net of expected forfeitures, which is expected to be amortized over the remaining weighted average period of 2.3 years. | ||||||||||
Stock options under both the 2005 Plan and the 2007 Plan generally vest ratably over four years with the first year vesting on a “cliff” basis followed by monthly vesting for the remaining three years. | ||||||||||
Restricted Stock Awards and Units | ||||||||||
From time to time, we grant restricted stock awards (RSAs) and restricted stock units (RSUs) to our employees. Unvested RSAs have the same rights as those of common shares including voting rights and non-forfeitable dividend rights. However, ownership of unvested RSAs cannot be transferred until they are vested. An unvested RSU is a contractual right to receive a share of common stock only upon its vesting. RSUs have dividend equivalent rights which accrue over the term of the award and are paid if and when the RSUs vest, but they have no voting rights. | ||||||||||
We typically grant time-based RSUs and performance-based RSUs. Time-based RSUs are typically granted on an annual basis to certain non-executive employees and vest in three annual installments on a straight-line basis beginning one year after the grant date. During the years ended December 31, 2013, 2012 and 2011, the board of directors approved grants of 0.4 million, 0.4 million and 0.2 million of RSUs to certain non-executives. Performance-based RSUs are typically granted on an annual basis to certain executive employees and consist of a time-based and performance-based component. The following represents the vesting schedule of performance-based RSUs granted during the years ended December 31, 2013, 2012 and 2011: | ||||||||||
Time Vested RSUs | Performance Vested RSUs (50% of Award) | |||||||||
(50% of Award) | ||||||||||
Vest in 3 annual installments beginning one year after the date of grant | Performance Goal | Potential Award | Further Time Vesting | |||||||
Achievement of at least 70% of a two-year cumulative earnings per share performance goal | Executive may earn from 50% to 200% of the target number of RSUs based on the level of achievement of the performance goal | Earned RSUs vest 50% upon satisfaction of performance goal and 50% one year later | ||||||||
During the years ended December 31, 2013, 2012 and 2011, the board of directors approved the grant of 0.9 million, 0.4 million and 0.4 million, respectively, of RSUs or RSAs to certain executives as part of a performance incentive program. | ||||||||||
The following table summarizes RSA and RSU activity during the years ended December 31, 2013, 2012 and 2011: | ||||||||||
Restricted Stock Awards | Restricted Stock Units | |||||||||
Weighted | Weighted | |||||||||
Average | Average | |||||||||
Grant Date | Grant Date | |||||||||
Shares | Fair Value | Units | Fair Value | |||||||
Unvested at December 31, 2010 | 953,423 | $ | 8.54 | 116,400 | $ | - | ||||
Granted | 118,520 | 19.10 | 651,791 | 24.89 | ||||||
Vested | -352,150 | -1 | 6.19 | -21,150 | -1 | 17.25 | ||||
Forfeited | -148,618 | 9.67 | -35,061 | 15.41 | ||||||
Unvested at December 31, 2011 | 571,175 | 11.87 | 711,980 | 23.43 | ||||||
Granted | 18,813 | 16.48 | 1,010,559 | 18.92 | ||||||
Vested | -191,779 | -1 | 9.22 | -133,555 | -1 | 23.25 | ||||
Forfeited | -42,700 | 13.25 | -174,323 | 20.64 | ||||||
Unvested at December 31, 2012 | 355,509 | 13.37 | 1,414,661 | 20.61 | ||||||
Granted | 21,590 | 16.56 | 1,637,114 | 14.96 | ||||||
Vested | -89,006 | -1 | 14.81 | -329,542 | -1 | 21.52 | ||||
Forfeited | -77,603 | 12.46 | -756,566 | 14.71 | ||||||
Unvested at December 31, 2013 | 210,490 | $ | 13.43 | 1,965,667 | $ | 16.50 | ||||
(1)The RSAs vested during the years ended December 31, 2013, 2012 and 2011 consisted entirely of time-based awards. The RSUs vested during the years ended December 31, 2013 consisted of 52,288 performance-based awards and 277,254 time-based awards. The RSUs vested during the years ended December 31, 2012 and 2011 consisted entirely of time-based awards. | ||||||||||
The total grant date fair value of RSAs vested during the years ended December 31, 2013, 2012 and 2011 was $1.3 million, $1.8 million and $2.2 million, respectively. At December 31, 2013, we had $1.0 million of total unrecognized share-based compensation expense related to non-vested restricted stock awards, net of expected forfeitures, of which $0.5 million is related to performance-based awards and $0.5 million is time-based awards. The unvested RSAs are expected to be amortized over the remaining weighted average period of 0.52 years, which consists of a remaining weighted average period of 0.45 years related to performance-based awards and a remaining weighted average period of 0.64 years related to time-based awards. | ||||||||||
The total grant date fair value of RSUs vested during the years ended December 31, 2013, 2012 and 2011 was $7.1 million, $3.1 million, and $0.4 million, respectively. At December 31, 2013, we had $15.6 million of total unrecognized share-based compensation expense related to unvested restricted stock units, net of expected forfeitures, of which $5.8 million is related to performance-based awards and $9.8 million is time-based awards. The unvested RSUs are expected to be amortized over the remaining weighted average period of 1.75 years, which consists of a remaining weighted average period of 1.77 years related to performance-based awards and a remaining weighted average period of 1.73 years related to time-based awards. | ||||||||||
Share-based Compensation | ||||||||||
During the years ended December 31, 2013, 2012 and 2011, we recorded $12.5 million, $11.3 million $8.6 million, respectively, of pre-tax share-based compensation expense of which $0.7 million, $0.0 million, and $0.0 million, respectively, related solely to the construction and implementation of our ERP system for use by the entity was capitalized to the consolidated balance sheets until assets are ready for intended use and will be amortized over the useful life of the software upon that date. | ||||||||||
Separation Agreements | ||||||||||
On December 27, 2013, John McCarvel resigned from his position as President, Chief Executive Officer (CEO) and director of the Company effective upon the earlier to occur of (i) April 30, 2014 or (ii) the Board’s appointment of his successor as CEO. Also on December 27, 2013, the Company and Mr. McCarvel entered into a separation agreement providing that the Company will pay Mr. McCarvel (i) a $1.1 million separation payment on the first regularly scheduled payroll date after the effectiveness of his resignation and (ii) a $1.0 million separation payment on the first anniversary of the effectiveness of his resignation. In accordance with ASC 420 – Exit or Disposal Cost Obligations, the Company will recognize first and second installment payments of $1.1 million and $1.0 million ratably from December 27, 2013 through April 30, 2014. If the separation date occurs prior to April 30, 2014 due to the appointment of a new CEO by the board of directors, the Company will consider the entire $2.1 million incurred and will expense the remaining portion on that date. Mr. McCarvel will also be entitled to receive any amount earned pursuant to the Company’s 2013 annual incentive program, in such form and at such time as is provided under the terms of such program. | ||||||||||
Mr. McCarvel also agreed to continue in a consulting capacity with the Company at his regular salary through April 30, 2014 if his successor is appointed prior to such date. Subject to continued service, Mr. McCarvel will be entitled to continued vesting through April 30, 2014 of the unvested portion of his existing restricted stock and restricted stock unit awards. Pursuant to the separation agreement, unvested share awards that are expected to vest through April 30, 2014 amounted to 58,840 shares. Additionally, pursuant to the terms of the separation agreement, Mr. McCarvel forfeited 388,745 share awards not expected to vest through April 30, 2014. The separation payments are conditioned upon the effectiveness of Mr. McCarvel’s release of claims in favor of the Company and his compliance with the non-competition, non-solicitation and confidentiality covenants contained in the separation agreement. | ||||||||||
Allowances
Allowances | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Sales Returns and Allowances, Goods [Abstract] | ' | ||||||||||||
Allowances | ' | ||||||||||||
10. ALLOWANCES | |||||||||||||
The changes in the allowance for doubtful accounts and reserve for sales returns and allowances for the years ended December 31, 2013, 2012 and 2011, are as follows: | |||||||||||||
($ thousands) | Balance at Beginning of Year | Charged to costs and expenses | Reversals and Write-offs | Balance at End of Year | |||||||||
Year ended December 31, 2011: | |||||||||||||
Allowance for doubtful accounts | $ | 4,642 | $ | -383 | $ | -579 | $ | 3,680 | |||||
Reserve for sales returns and allowances | 5,607 | 9,965 | -3,744 | 11,828 | |||||||||
Year ended December 31, 2012: | |||||||||||||
Allowance for doubtful accounts | 3,680 | 2,166 | -2,405 | 3,441 | |||||||||
Reserve for sales returns and allowances | 11,828 | 5,111 | -7,065 | 9,874 | |||||||||
Year ended December 31, 2013: | |||||||||||||
Allowance for doubtful accounts | $ | 3,441 | $ | 1,930 | $ | -1,715 | $ | 3,656 | |||||
Reserve for sales returns and allowances | 9,874 | 13,888 | -16,905 | 6,857 | |||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Income Taxes [Abstract] | ' | |||||||||
Income Taxes | ' | |||||||||
11. INCOME TAXES | ||||||||||
The following table sets forth income before taxes and the expense for income taxes for the years ended December 31, 2013, 2012 and 2011: | ||||||||||
December 31, | ||||||||||
($ thousands) | 2013 | 2012 | 2011 | |||||||
Income (loss) before taxes: | ||||||||||
U.S. | $ | -7,818 | $ | 12,060 | $ | -12,057 | ||||
Foreign | 67,777 | 133,488 | 148,747 | |||||||
Total income before taxes | 59,959 | 145,548 | 136,690 | |||||||
Income tax expense: | ||||||||||
Current income taxes | ||||||||||
U.S. federal | 3,311 | -6,364 | 4,798 | |||||||
U.S. state | 355 | 597 | 165 | |||||||
Foreign | 22,337 | 22,953 | 19,758 | |||||||
Total current income taxes | 26,003 | 17,186 | 24,721 | |||||||
Deferred income taxes: | ||||||||||
U.S. federal | 14,968 | -3,981 | -2,338 | |||||||
U.S. state | 3,639 | -4,016 | - | |||||||
Foreign | 4,929 | 5,016 | 1,519 | |||||||
Total deferred income taxes | 23,536 | -2,981 | -819 | |||||||
Total income tax expense | $ | 49,539 | $ | 14,205 | $ | 23,902 | ||||
The following table sets forth income reconciliations of the statutory federal income tax rate to our actual rates based on income or loss before income taxes as of December 31, 2013, 2012 and 2011: | ||||||||||
December 31, | ||||||||||
($ thousands) | 2013 | 2012 | 2011 | |||||||
Federal income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||||
State income tax rate, net of federal benefit | -0.6 | -2.7 | 0.3 | |||||||
Foreign income tax rate differential | -47.9 | -25 | -30.3 | |||||||
Non-deductible / Non-taxable items | 3.4 | 4.6 | 3.2 | |||||||
Change in valuation allowance | 35.6 | -8.4 | 3.6 | |||||||
U.S. tax on foreign earnings | 38.2 | 2.0 | - | |||||||
Uncertain tax positions | 6.8 | 3.5 | 8.7 | |||||||
Audit settlements | 5.1 | - | - | |||||||
Non-deductible write-off of intercompany debt | 1.9 | - | - | |||||||
Non-deductible impairment | 3.5 | - | - | |||||||
Other | 1.6 | 0.8 | -3 | |||||||
Effective income tax rate | 82.6 | % | 9.8 | % | 17.5 | % | ||||
The following table sets forth deferred income tax assets and liabilities as of December 31, 2013 and 2012: | ||||||||||
December 31, | ||||||||||
($ thousands) | 2013 | 2012 | ||||||||
Current deferred tax assets: | ||||||||||
Accrued expenses | $ | 13,108 | $ | 12,934 | ||||||
Unrealized loss on foreign currency | 10 | 2,026 | ||||||||
Other | 1,364 | 8 | ||||||||
Valuation allowance | -5,139 | -3,492 | ||||||||
Total current deferred tax assets | $ | 9,343 | $ | 11,476 | ||||||
Current deferred tax liabilities: | ||||||||||
Unremitted earnings of foreign subsidiary | $ | -16,102 | $ | -7,596 | ||||||
Total current deferred tax liabilities. | $ | -16,102 | $ | -7,596 | ||||||
Non-current deferred tax assets: | ||||||||||
Stock compensation expense | $ | 9,652 | $ | 8,865 | ||||||
Long-term accrued expenses | 3,811 | 3,067 | ||||||||
Net operating loss and charitable contribution carryovers | 24,517 | 23,255 | ||||||||
Intangible assets | 895 | - | ||||||||
Property and equipment | 8,527 | 8,994 | ||||||||
Future uncertain tax position offset | 1,804 | 3,780 | ||||||||
Unrealized loss on foreign currency | 639 | 921 | ||||||||
Foreign tax credit | 8,524 | 5,392 | ||||||||
Other | 1,755 | 1,767 | ||||||||
Valuation allowance | -41,745 | -22,406 | ||||||||
Total non-current deferred tax assets | $ | 18,379 | $ | 33,635 | ||||||
Non-current deferred tax liabilities: | ||||||||||
Intangible assets | $ | - | $ | -779 | ||||||
Total non-current deferred tax liabilities | $ | - | $ | -779 | ||||||
We do not provide for deferred taxes on the excess of the financial reporting basis over the tax basis in our investments in foreign subsidiaries that are essentially permanent in duration. In general, it is our practice and intention to reinvest the earnings of our foreign subsidiaries in those operations. Generally, the earnings of our foreign subsidiaries become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. Exceptions may be made on a year-by-year basis to repatriate current year earnings of certain foreign subsidiaries based on cash needs in the U.S. As of December 31, 2013, we have provided for deferred U.S. income tax of $16.1 million on $76.6 million of foreign subsidiary earnings. No withholding tax is due with respect to the repatriation of these earnings to the U.S. and none has been provided for. | ||||||||||
At December 31, 2013, U.S. income and foreign withholding taxes have not been provided on for approximately $474.2 million of unremitted earnings of subsidiaries operating outside of the U.S. These earnings are estimated to represent the excess of the financial reporting over the tax basis in our investments in those subsidiaries. These earnings, which are considered to be indefinitely reinvested, would become subject to U.S. income tax if they were remitted to the U.S. The amount of unrecognized deferred U.S. income tax liability on the unremitted earnings has not been determined because the hypothetical calculation is not practicable. | ||||||||||
We have deferred tax assets related to certain deductible temporary differences in various tax jurisdictions for which we have recorded a valuation allowance of $46.9 million against these deferred tax assets because we do not believe that it is more likely than not that we will be able to realize these deferred tax assets. The significant components of the deferred tax assets for which a valuation allowance has been applied consist of net operating losses in certain tax jurisdictions for which management believes there is not sufficient positive evidence that such net operating losses will be realized against future income and book expenses not deductible for tax purposes in the current year such as inventory impairment reserves, equity compensation and unrealized foreign exchange loss that would increase such net operating losses in the same jurisdictions. These temporary differences are amounts which arose in jurisdictions where (i) current losses exist, (ii) such losses are in excess of any loss carryback potential, (iii) any tax planning strategies exist with which to overcome such losses are cost prohibitive and (iv) no profits are projected for the following year. For these reasons it is determined that it is more likely than not that these deferred tax assets will not be realized and a valuation allowance has been provided with respect to these deferred tax assets. | ||||||||||
At December 31, 2013, we had U.S. federal net operating loss carryforwards of $1.0 million, state net operating loss carryforwards of $96.5 million, charitable contribution carryforwards of $20.4 million and foreign tax credits of $4.0 million which will expire at various dates between 2014 and 2034. We do not believe that it is more likely than not that the benefit from certain federal and state net operating losses, and charitable contribution carryforwards will be realized. Consequently, we have a valuation allowance of $12.1 million on the deferred tax assets relating to these tax attributes. | ||||||||||
At December 31, 2013, we have a foreign deferred tax asset of $16.0 million reflecting the benefit of $50.4 million in foreign net operating loss carryforwards, some of which have an indefinite life. We do not believe it is more likely than not that the benefit from certain foreign net operating loss carryforwards will be realized. Consequently, we have provided a valuation allowance of $14.5 million on the deferred tax assets relating to these foreign net operating loss carryforwards. | ||||||||||
We had approximately $11.6 million in net deferred tax assets at December 31, 2013. Approximately $7.6 million of the net deferred tax assets were located in foreign jurisdictions for which a sufficient history and expected future profits indicated that it is more likely than not that such deferred tax assets will be realized. Pre-tax profit of approximately $40.3 million is required to realize the net deferred tax assets. | ||||||||||
At December 31, 2013, approximately $1.8 million of net deferred tax assets consists of deferred tax assets related to estimated liabilities for uncertain tax positions that would be realized if such liabilities are actually incurred. The deferred tax assets represent primarily the reduction in tax expense that would occur upon an increase of intercompany royalty expense by various taxing authorities. Approximately $6.4 million of taxable income would have to be recognized to realize these deferred tax assets. | ||||||||||
As a result of certain accounting realization requirements, the table of deferred tax assets and liabilities shown above does not include certain deferred tax assets at December 31, 2013 that arose directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting. Equity will be increased by $11.5 million if and when such deferred tax assets are ultimately realized. We use ASC 740 with-and-without ordering for purposes of determining when excess tax benefits have been realized. | ||||||||||
The following table sets forth a reconciliation of the beginning and ending amount of unrecognized tax benefits during the years ended December 31, 2013, 2012 and 2011: | ||||||||||
($ thousands) | 2013 | 2012 | 2011 | |||||||
Unrecognized tax benefit—January 1 | $ | 31,900 | $ | 44,537 | $ | 33,042 | ||||
Gross increases—tax positions in prior period | 572 | - | 8,332 | |||||||
Gross decreases—tax positions in prior period | -2,086 | -425 | - | |||||||
Gross increases—tax positions in current period | 3,743 | 4,310 | 4,689 | |||||||
Settlements | -2,291 | -16,260 | -427 | |||||||
Lapse of statute of limitations | -222 | -262 | -1,099 | |||||||
Unrecognized tax benefit—December 31 | $ | 31,616 | $ | 31,900 | $ | 44,537 | ||||
Unrecognized tax benefits of $31.6 million, $31.9 million, and $44.5 million at December 31, 2013, 2012 and 2011, respectively, if recognized, would reduce our annual effective tax rate offset by deferred tax assets recorded for uncertain tax positions. | ||||||||||
Interest and penalties related to income tax liabilities are included in income tax expense in the consolidated statement of operations. As of December 31, 2013, 2012 and 2011, we recorded approximately $0.6 million, $0.6 million, and $1.0 million, respectively, of penalties and interest which resulted in a cumulative accrued balance of penalties and interest of $5.0 million, $4.4 million, and $3.9 million at December 31, 2013, 2012 and 2011, respectively. | ||||||||||
Unrecognized tax benefits consist primarily of tax positions related to intercompany transfer pricing in multiple international jurisdictions. The gross increase for tax positions in current and prior periods in 2013 of $4.3 million primarily includes specific transfer pricing exposures in various jurisdictions. We believe that it is reasonably possible that a decrease of approximately $11.3 million in unrecognized tax benefits will occur in the next twelve months. Only a portion of this amount will be recognized in our consolidated statements of operations due to balance sheet offsets. We do not believe we can reasonably estimate the effect of unrecognized tax benefits on our consolidated statements of operations. | ||||||||||
The following table sets forth the remaining tax years subject to examination for the major jurisdictions where we conduct business as of December 31, 2013: | ||||||||||
Netherlands | 2007 | to | 2013 | |||||||
Canada | 2007 | to | 2013 | |||||||
Japan | 2007 | to | 2013 | |||||||
China | 2007 | to | 2013 | |||||||
Singapore | 2009 | to | 2013 | |||||||
United States | 2010 | to | 2013 | |||||||
State income tax returns are generally subject to examination for a period of three to five years after filing of the respective return. The state impact of any federal changes remains subject to examination by various state jurisdictions for a period up to two years after formal notification to the states. | ||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Earnings (Loss) Per Share [Abstract] | ' | |||||||||
Earnings Per Share | ' | |||||||||
12. EARNINGS PER SHARE | ||||||||||
The following table illustrates the basic and diluted earnings per share (“EPS”) computations for the years ended December 31, 2013, 2012 and 2011. See Note 1 – Organization & Summary of Significant Accounting Policies for additional detail regarding our EPS calculations. | ||||||||||
Year Ended December 31, | ||||||||||
($ thousands, except share and per share data) | 2013 | 2012 | 2011 | |||||||
Numerator | ||||||||||
Net income attributable to common stockholders | $ | 10,420 | $ | 131,343 | $ | 112,788 | ||||
Less: income allocated to participating securities | -36 | -645 | -1,014 | |||||||
Net income attributable to common stockholders - basic and diluted | $ | 10,384 | $ | 130,698 | $ | 111,774 | ||||
Denominator | ||||||||||
Weighted average common shares outstanding - basic | 87,988,798 | 89,571,105 | 88,317,898 | |||||||
Plus: dilutive effect of stock options and unvested restricted stock units | 1,100,675 | 1,017,311 | 1,663,484 | |||||||
Weighted average common shares outstanding - diluted | 89,089,473 | 90,588,416 | 89,981,382 | |||||||
Net income attributable per common share: | ||||||||||
Basic | $ | 0.12 | $ | 1.46 | $ | 1.27 | ||||
Diluted | $ | 0.12 | $ | 1.44 | $ | 1.24 | ||||
For the years ended December 31, 2013, 2012 and 2011, 1.0 million, 1.4 million, and 1.1 million options and RSUs, respectively, were not included in the calculation of diluted EPS as their effect would have been anti-dilutive. | ||||||||||
Stock Repurchase Plan Authorizations | ||||||||||
We continue to evaluate options to maximize the returns on our cash and maintain an appropriate capital structure, including, among other alternatives, repurchases of our common stock. | ||||||||||
On December 26, 2013, the Board approved the repurchase of up to $350.0 million of our common stock. This authorization effectively replaced the Company’s previous stock repurchase authorizations. The number, price, structure and timing of the repurchases, if any, will be at the Company’s sole discretion and future repurchases will be evaluated by the Company depending on market conditions, liquidity needs and other factors. Share repurchases may be made in the open market or in privately negotiated transactions. The repurchase authorization does not have an expiration date and does not oblige us to acquire any particular amount of our common stock. The Board may suspend, modify or terminate the repurchase program at any time without prior notice. | ||||||||||
During the three months ended December 31, 2013, we did not repurchase any shares associated with a publicly-announced repurchase plan. During the year ended December 31, 2013, we repurchased approximately 0.8 million shares at an average price of $14.99 for an aggregate price of approximately $12.5 million excluding related commission charges, under a publicly-announced repurchase plan. | ||||||||||
As of December 31, 2013, subject to certain restrictions on repurchases under our revolving credit facility, we had $350.0 million of our common shares available for repurchase under previously announced repurchase authorizations. | ||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Commitments And Contingencies [Abstract] | ' | |||||||||
Commitments And Contingencies | ' | |||||||||
13. COMMITMENTS AND CONTINGENCIES | ||||||||||
Rental Commitments and Contingencies | ||||||||||
We rent space for our retail stores, offices, warehouses, vehicles, and equipment under operating leases expiring at various dates through 2033. Certain leases contain rent escalation clauses (step rents) that require additional rental amounts in the later years of the term. Rent expense for leases with step rents or rent holidays is recognized on a straight-line basis over the lease term beginning on the lease inception date. Deferred rent is included in the consolidated balance sheets in ‘Accrued expenses and other current liabilities.’ | ||||||||||
Future minimum annual rental commitments under non-cancelable operating leases for each of the five succeeding years as of December 31, 2013, are as follows (in thousands): | ||||||||||
Fiscal years ending December 31, | ||||||||||
2014 | $ | 83,831 | ||||||||
2015 | 67,722 | |||||||||
2016 | 51,939 | |||||||||
2017 | 40,090 | |||||||||
2018 | 32,222 | |||||||||
Thereafter | 136,630 | |||||||||
Total minimum lease payments (1) | $ | 412,434 | ||||||||
(1)Minimum lease payments have not been reduced by minimum sublease rentals of $0.4 million due in the future under non-cancelable subleases. They also do not include contingent rentals which may be paid under certain retail leases on a basis of percentage of sales in excess of stipulated amounts. | ||||||||||
The following table summarizes the composition of rent expense under operating leases for the years ended December 31, 2013, 2012 and 2011 (in thousands): | ||||||||||
Fiscal years ending December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Minimum rentals (1) | $ | 101,721 | $ | 84,671 | $ | 68,675 | ||||
Contingent rentals | 18,178 | 16,519 | 13,639 | |||||||
Less: Sublease rentals | -646 | -619 | -573 | |||||||
Total rent expense | $ | 119,253 | $ | 100,571 | $ | 81,741 | ||||
(1)Minimum rentals include all lease payments as well as fixed and variable common area maintenance (“CAM”), parking and storage fees, which were approximately $9.7 million, $8.5 million and $8.6 million during the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||
Purchase Commitments | ||||||||||
As of December 31, 2013, we had purchase commitments with certain third party manufacturers for $172.3 million. As of December 31, 2012, we had purchase commitments with certain third party manufacturers for $152.8 million, of which $5.9 million was for yet-to-be-received finished product where title passes to us upon receipt. | ||||||||||
In February 2011, we renewed and amended our supply agreement with Finproject S.r.l. which provides us the exclusive right to purchase certain raw materials used to manufacture our products. The agreement also provides that we meet minimum purchase requirements to maintain exclusivity throughout the term of the agreement, which expires December 31, 2014. Historically, the minimum purchase requirements have not been onerous and we do not expect them to become onerous in the future. Depending on the material purchased, pricing is either based on contracted price or is subject to quarterly reviews and fluctuates based on order volume, currency fluctuations and raw material prices. Pursuant to the agreement, we guarantee the payment for certain third party manufacturer purchases of these raw materials up to a maximum potential amount of €3.5 million (approximately $4.8 million as of December 31, 2013), through a letter of credit that was issued to Finproject S.r.l. | ||||||||||
Government Tax Audits | ||||||||||
We are regularly subject to, and are currently undergoing, audits by tax authorities in the United States and several foreign jurisdictions for prior tax years. | ||||||||||
In April 2013, the State of Sao Paulo, Brazil government (“Brazil”) assessed sales taxes, interest and penalties for the period April 2009 to May 2011. We had previously tendered these taxes using Brazil obligations purchased at a discount from third parties. On May 22, 2013, we applied for amnesty in order to receive a significant reduction in penalties and interest, agreed to amend our 2009 through 2012 tax returns to remove the Brazil obligations, and agreed to settle the assessment in cash to Brazil. In June 2013, cash payment was made to Brazil, in full satisfaction of the Brazil assessment. Brazil is making court-ordered payments to holders of the Brazil obligations along with accrued interest. The Company anticipates that the Brazil obligations (plus accrued interest) will be paid by Brazil in accordance with the court-orders. The Company is carrying the Brazil obligations at the original discounted cost to the Company and intends to hold the Brazil obligations until paid by Brazil. The net impact of the above is a $6.1 million charge to operating income recorded during the year ended December 31, 2013, and the carrying balance of the Brazil obligations as of December 31, 2013 is $3.5 million, which is recorded in ‘Other assets’ on the consolidated balance sheets. | ||||||||||
The Company is currently undergoing a tax audit in Canada. We recently received a notice of proposed adjustment on certain transfer pricing items from the Canadian tax authorities, which includes penalties and interest. The proposed adjustment, along with penalties and interest, is currently being reviewed by the Canada Transfer Pricing Review Committee with a decision expected by the end of the first quarter in 2014. We intend to defend our position through litigation if necessary; however, the final outcome of tax audits and related litigation, including the assessment of potentially significant penalties and interest, is inherently uncertain and could be materially different than that reflected in our historical income tax provisions and accruals and could have a material adverse impact on our financial position, results of operations or cash flows. | ||||||||||
See Note 15 – Legal Proceedings for further details regarding potential loss contingencies related to government tax audits and other current legal proceedings. | ||||||||||
Operating_Segments_and_Geograp
Operating Segments and Geographic Information | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Operating Segments And Geographic Information [Abstract] | ' | |||||||||
Operating Segments And Geographic Information | ' | |||||||||
14. OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION | ||||||||||
During the first quarter of 2013, we adjusted our operating segment structure for internal reports reviewed by the chief operating decision maker (“CODM”) by presenting Japan separate from the Asia Pacific segment. This change was made due to recurring amounts of substantial business activity as well as the macroeconomic environment within Japan, which resulted in the need for a regular review of Japan operating results by management and the CODM in order to better evaluate performance and allocate resources for the consolidated business. Segment information for all periods presented has been reclassified to conform to the fiscal 2013 presentation. | ||||||||||
As a result of the changes discussed above, we have four reportable operating segments based on the geographic nature of our operations: Americas, Asia Pacific, Japan and Europe. We also have an “Other businesses” category which aggregates insignificant operating segments that do not meet the reportable segment threshold and represent manufacturing operations located in Mexico, Italy and Asia. The composition of our reportable operating segments is consistent with that used by our CODM to evaluate performance and allocate resources. | ||||||||||
Each of our reportable operating segments derives its revenues from the sale of footwear, apparel and accessories to external customers as well as intersegment sales. Revenues of the “Other businesses” category are primarily made up of intersegment sales. The remaining revenues for the “Other businesses” represent non-footwear product sales to external customers. Intersegment sales are not included in the measurement of segment operating income or regularly reviewed by the CODM and are eliminated when deriving total consolidated revenues. | ||||||||||
The primary financial measure utilized by the CODM to evaluate performance and allocate resources is segment operating income. Segment performance evaluation is based primarily on segment results without allocating corporate expenses, or indirect general, administrative and other expenses. Segment profits or losses of our reportable operating segments include adjustments to eliminate intersegment profit or losses on intersegment sales. As such, reconciling items for segment operating income represent unallocated corporate and other expenses as well as intersegment eliminations. Segment assets consist of cash and cash equivalents, accounts receivable and inventory as these balances are regularly reviewed by the CODM. | ||||||||||
The following tables set forth information related to our reportable operating business segments as of and for the years ended December 31, 2013, 2012 and 2011 | ||||||||||
Year Ended December 31, | ||||||||||
($ thousands) | 2013 | 2012 | 2011 | |||||||
Revenues: | ||||||||||
Americas | $ | 498,552 | $ | 495,852 | $ | 448,077 | ||||
Asia Pacific | 342,752 | 292,846 | 226,961 | |||||||
Japan | 134,863 | 164,565 | 154,805 | |||||||
Europe | 216,259 | 169,464 | 170,869 | |||||||
Total segment revenues | 1,192,426 | 1,122,727 | 1,000,712 | |||||||
Other businesses | 254 | 574 | 191 | |||||||
Total consolidated revenues | $ | 1,192,680 | $ | 1,123,301 | $ | 1,000,903 | ||||
Operating income: | ||||||||||
Americas | $ | 61,894 | -1 | $ | 85,538 | -1 | $ | 70,532 | ||
Asia Pacific | 80,693 | -2 | 74,535 | 52,872 | ||||||
Japan | 37,560 | -3 | 66,293 | 71,046 | ||||||
Europe | 16,192 | 21,678 | 37,106 | |||||||
Total segment operating income | 196,339 | 248,044 | 231,556 | |||||||
Reconciliation of total segment operating income to income before income taxes: | ||||||||||
Other businesses | -20,811 | -10,805 | -14,128 | |||||||
Intersegment eliminations | 61 | 60 | 66 | |||||||
Unallocated corporate and other (4) | -112,494 | -91,125 | -86,415 | |||||||
Total consolidated operating income | 63,095 | 146,174 | 131,079 | |||||||
Foreign currency transaction (gains) losses, net | 4,678 | 2,500 | -4,886 | |||||||
Interest income | -2,432 | -1,697 | -957 | |||||||
Interest expense | 1,016 | 837 | 853 | |||||||
Other income, net | -126 | -1,014 | -621 | |||||||
Income before income taxes | $ | 59,959 | $ | 145,548 | $ | 136,690 | ||||
Depreciation and amortization: | ||||||||||
Americas | $ | 10,384 | $ | 9,849 | $ | 9,203 | ||||
Asia Pacific | 5,032 | 4,869 | 3,764 | |||||||
Japan | 1,454 | 2,053 | 2,320 | |||||||
Europe | 5,108 | 3,116 | 2,584 | |||||||
Total segment depreciation and amortization | 21,978 | 19,887 | 17,871 | |||||||
Other businesses | 8,002 | 7,003 | 11,657 | |||||||
Unallocated corporate and other (4) | 11,526 | 9,804 | 7,735 | |||||||
Total consolidated depreciation and amortization | $ | 41,506 | $ | 36,694 | $ | 37,263 | ||||
-1 | Includes $3.9 million and $1.4 million for the years ended December 31, 2013 and 2012, respectively, of asset impairment charges related to 23 and four underperforming retail locations, respectively. | |||||||||
-2 | Includes $0.2 million for the year ended December 31, 2013 of asset impairment charges related to two underperforming retail locations. | |||||||||
-3 | Includes $6.6 million for the year ended December 31, 2013 of asset impairment charges related to 35 underperforming retail locations. | |||||||||
-4 | Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, depreciation and amortization of corporate and other assets not allocated to operating segments and costs of the same nature related to certain corporate holding companies. | |||||||||
The following table sets forth asset information related to our reportable operating business segments as of December 31, 2013 and December 31, 2012: | ||||||||||
December 31, | December 31, | |||||||||
($ thousands) | 2013 | 2012 | ||||||||
Assets: | ||||||||||
Americas | $ | 139,855 | $ | 143,236 | ||||||
Asia Pacific | 177,343 | 170,426 | ||||||||
Japan | 51,155 | 111,785 | ||||||||
Europe | 137,701 | 85,756 | ||||||||
Total segment current assets | 506,054 | 511,203 | ||||||||
Other businesses | 14,093 | 14,489 | ||||||||
Unallocated corporate and other (1) | 63,743 | 25,738 | ||||||||
Deferred tax assets, net | 4,440 | 6,284 | ||||||||
Income tax receivable | 10,630 | 5,613 | ||||||||
Other receivables | 11,942 | 24,821 | ||||||||
Prepaid expenses and other current assets | 29,175 | 24,967 | ||||||||
Total current assets | 640,077 | 613,115 | ||||||||
Property and equipment, net | 86,971 | 82,241 | ||||||||
Intangible assets, net | 74,822 | 59,931 | ||||||||
Deferred tax assets, net | 19,628 | 34,112 | ||||||||
Other assets | 53,661 | 40,239 | ||||||||
Total consolidated assets | $ | 875,159 | $ | 829,638 | ||||||
(1)Corporate assets primarily consist of cash and equivalents. | ||||||||||
There were no customers who represented 10% or more of consolidated revenues during the years ended December 31, 2013, 2012 and 2011. The following table sets forth certain geographical and other information regarding our revenues during the years ended December 31, 2013, 2012 and 2011: | ||||||||||
Year Ended December 31, | ||||||||||
($ thousands) | 2013 | 2012 | 2011 | |||||||
Product: | ||||||||||
Footwear | $ | 1,155,377 | $ | 1,076,210 | $ | 956,816 | ||||
Other | 37,303 | 47,091 | 44,087 | |||||||
Total revenues | $ | 1,192,680 | $ | 1,123,301 | $ | 1,000,903 | ||||
Location: | ||||||||||
United States | $ | 401,948 | $ | 396,121 | $ | 355,560 | ||||
International | 790,732 | 727,180 | 645,343 | |||||||
Total revenues | $ | 1,192,680 | $ | 1,123,301 | $ | 1,000,903 | ||||
Foreign country revenues in excess of 10% of total revenues: | ||||||||||
Japan | $ | 134,863 | $ | 164,565 | $ | 154,805 | ||||
The following table sets forth geographical information regarding our property and equipment assets as of December 31, 2013 and 2012: | ||||||||||
December 31, | ||||||||||
($ thousands) | 2013 | 2012 | ||||||||
Location: | ||||||||||
United States | $ | 56,262 | $ | 47,587 | ||||||
International | 30,709 | 34,654 | ||||||||
Total long-lived assets(1) | $ | 86,971 | $ | 82,241 | ||||||
(1)Not more than 10% of our long-lived assets resided in any individual foreign country in 2013 or 2012. | ||||||||||
Legal_Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2013 | |
Legal Proceedings [Abstract] | ' |
Legal Proceedings | ' |
15. LEGAL PROCEEDINGS | |
We and certain current and former officers and directors have been named as defendants in complaints filed by investors in the United States District Court for the District of Colorado. The first complaint was filed in November 2007 and several other complaints were filed shortly thereafter. These actions were consolidated and, in September 2008, the district court appointed a lead plaintiff and counsel. An amended consolidated complaint was filed in December 2008. The amended complaint purports to state claims under Section 10(b), 20(a), and 20A of the Exchange Act on behalf of a class of all persons who purchased our common stock between April 2, 2007 and April 14, 2008 (the “Class Period”). The amended complaint also added our independent auditor as a defendant. The amended complaint alleges that, during the Class Period, the defendants made false and misleading public statements about us and our business and prospects and, as a result, the market price of our common stock was artificially inflated. The amended complaint also claims that certain current and former officers and directors traded in our common stock on the basis of material non-public information. The amended complaint seeks compensatory damages on behalf of the alleged class in an unspecified amount, including interest, and also added attorneys’ fees and costs of litigation. On February 28, 2011, the District Court granted motions to dismiss filed by the defendants and dismissed all claims. A final judgment was thereafter entered. Plaintiffs subsequently appealed to the United States Court of Appeals for the Tenth Circuit. We and those current and former officers and directors named as defendants have entered into a Stipulation of Settlement with the plaintiffs that would, if approved by the United States District Court for the District of Colorado, resolve all claims asserted against us by the plaintiffs on behalf of the putative class, and plaintiffs’ appeal would be dismissed. Our independent auditor is not a party to the Stipulation of Settlement. The Stipulation of Settlement received preliminary approval from the District Court on August 28, 2013. It remains subject to customary conditions, including final court approval following notice to stockholders. On February 13, 2014 a final settlement hearing took place and the parties are awaiting a ruling in conjunction with the same. If the settlement becomes final, all amounts required by the settlement will be paid by our insurers. There can be no assurance that the settlement will be finally approved by the District Court, or that approval by the District Court will, if challenged, be upheld by the Tenth Circuit. | |
On October 27, 2010, Spectrum Agencies (“Spectrum”) filed suit against our subsidiary, Crocs Europe B.V. (“Crocs Europe”), in the High Court of Justice, Queen’s Bench Division, Royal Courts of Justice in London, United Kingdom (“UK”). Spectrum acted as an agent for Crocs products in the UK from 2005 until Crocs Europe terminated the relationship on July 3, 2008 due to Spectrum’s breach of its duty to act in good faith towards Crocs Europe. Spectrum alleges that Crocs Europe unlawfully terminated the agency relationship and failed to pay certain sales commissions. A trial on the liability, not quantum (compensation and damages), was held at the High Court in London from November 30, 2011 to December 5, 2011. On December 16, 2011, the High Court of Justice issued a judgment that found that although Spectrum’s actions were a breach of its duty to act in good faith towards Crocs Europe the breach was not sufficiently severe to justify termination. We believe that the trial judge erred in his findings and subsequently appealed the judgment. On October 30, 2012, the Court of Appeal handed down its judgment confirming the trial judge’s findings. We submitted a request to the Supreme Court seeking permission to appeal. On April 24, 2013 the Supreme Court declined to grant permission to appeal. Given that to date the legal proceedings in this case have only addressed liability, there have been no findings in relation to the amount of compensation or damages other than with respect to legal fees. Under English law, the prevailing party is entitled to reimbursement of reasonable legal fees incurred in the proceedings. The trial of liability and quantum were split by the Court in the interests of case management. The alleged quantum of damages has not been fully pleaded out and will be assessed as part of the forthcoming damages phase. A trial and judgment on damages is expected in approximately 12 months. | |
We are currently subject to an audit by U.S. Customs & Border Protection (“CBP”) in respect of the period from 2006 to 2010. In the course of the audit, we identified certain valuation errors and tendered approximately $1.4 million in additional duties. Subsequently, we identified additional value errors which will require the payment of additional duties totaling approximately $0.7 million. The exact amount of this additional tender is subject to verification by CBP. In October 2013, CBP issued an audit report to which we filed comments and objections. CBP has projected unpaid duties totaling approximately $12.4 million in connection with various classification errors during the period under review. We have responded that these projections are erroneous and provided arguments that demonstrate the amount due in connection with this matter is considerably less than the amount projected. CBP is currently reviewing this response. It is not possible at this time to predict whether our arguments will be successful in eliminating or reducing the amount in dispute. At this time, it is not possible to determine when a formal notice of claim will be received from CBP. Likewise, it is not possible to predict whether CBP may seek to assert a claim for penalties in addition to any unpaid duties. | |
Mexico’s Federal Tax Authority (“SAT”) audited the period from January 2006 to July 2011. There were two phases to the audit, the first for capital equipment and finished goods and the second for raw materials. The first phase was completed and no major discrepancies were noted by the SAT. On January 9, 2013, Crocs received a notice for the second phase in which the SAT issued a tax assessment (taxes and penalties) of roughly 280.0 million pesos (approximately $22.0 million) based on the value of all of Crocs’ imported raw materials during the audit period. We believe that the proposed penalty amount is unfounded and without merit. With the help of local counsel we filed an appeal by the deadline of March 15, 2013. We have argued that the amount due in connection with the matter, if any, is substantially less than that proposed by the SAT. In connection with the appeal, the SAT required us to post an appeal surety bond in the amount of roughly 321.0 million pesos (approximately $26.0 million), which amount reflects estimated additional penalties and interest if we are not successful on our appeal. This amount will be adjusted on an annual basis. We are currently awaiting a ruling from the Mexican courts. It is not possible at this time to predict the outcome of this matter or reasonably estimate any potential loss. | |
As of December 31, 2013, we have accrued a total of $11.8 million relating to these litigation matters and other disputes. We estimate that the ultimate resolution of these litigation matters and other disputes could result in a loss that is reasonably possible between $0 and $10.6 million in the aggregate, in excess of the amount accrued. | |
Although we are subject to other litigation from time to time in the ordinary course of business, including employment, intellectual property and product liability claims, we are not party to any other pending legal proceedings that we believe will have a material adverse impact on our business, financial position, results of operations or cash flows. | |
Unaudited_Quarterly_Consolidat
Unaudited Quarterly Consolidated Financial Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Quarterly Consolidated Financial Information [Abstract] | ' | ||||||||||||
Unaudited Quarterly Consolidated Financial Information | ' | ||||||||||||
16. UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||
2013 | |||||||||||||
($ thousands, except per share data) | Quarter Ended March 31 | Quarter Ended June 30 | Quarter Ended September 30 | Quarter Ended December 31 | |||||||||
Revenues | $ | 311,656 | $ | 363,827 | $ | 288,524 | $ | 228,673 | |||||
Gross profit | 165,849 | 200,867 | 153,581 | 102,901 | |||||||||
Asset impairment charges | - | 202 | - | 10,747 | |||||||||
Income (loss) from operations | 37,650 | 50,419 | 17,907 | -42,881 | |||||||||
Net income (loss) | $ | 28,961 | $ | 35,356 | $ | 13,036 | $ | -66,933 | |||||
Basic income (loss) per common share | $ | 0.33 | $ | 0.40 | $ | 0.15 | $ | -0.76 | |||||
Diluted income (loss) per common share | $ | 0.33 | $ | 0.40 | $ | 0.15 | $ | -0.76 | |||||
2012 | |||||||||||||
($ thousands, except per share data) | Quarter Ended March 31 | Quarter Ended June 30 | Quarter Ended September 30 | Quarter Ended December 31 | |||||||||
Revenues | $ | 271,798 | $ | 330,942 | $ | 295,569 | $ | 224,992 | |||||
Gross profit | 144,799 | 196,085 | 160,743 | 106,350 | |||||||||
Asset impairment charges | 713 | 106 | - | 591 | |||||||||
Income (loss) from operations | 39,796 | 71,261 | 40,014 | -4,897 | |||||||||
Net income (loss) | $ | 28,346 | $ | 61,524 | $ | 45,080 | $ | -3,607 | |||||
Basic income (loss) per common share | $ | 0.32 | $ | 0.68 | $ | 0.50 | $ | -0.04 | |||||
Diluted income (loss) per common share | $ | 0.31 | $ | 0.68 | $ | 0.49 | $ | -0.04 | |||||
During the three months ended December 31, 2013, we recorded the following charges that affect the comparability of information between periods: | |||||||||||||
· | Tax expenses of $26.8 million related to our cash repatriation activities as well as a valuation allowance adjustment. See Note 11 – Income Taxes for further discussions regarding these charges. | ||||||||||||
· | Retail asset impairment charges of $10.4 million for certain underperforming locations in our Americas, Asia Pacific and Europe segments as well as $0.3 million in goodwill impairment charges. See Note 3 – Property & Equipment and Note 4 – Goodwill & Intangible Assets for further discussions regarding these charges. | ||||||||||||
· | Legal contingency accruals of $5.7 million recorded in selling, general and administrative expenses. See Note 15 – Legal Proceedings for further discussions regarding these charges. | ||||||||||||
· | Inventory write-down charges of $3.4 million related to obsolete inventory including raw materials, footwear and accessories. See Note 2 – Inventories for further discussions regarding these charges. | ||||||||||||
· | Professional services fees of $1.1 million associated with our recent investment agreement with Blackstone and cash repatriation activities. See Note 17 – Subsequent Events for further discussions regarding these charges. | ||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
17. SUBSEQUENT EVENTS | |
Accounting Standards Update No. 2010-09 to ASC Topic 855, Subsequent Events, requires the Company to disclose the date through which subsequent events have been evaluated. The Company has evaluated subsequent events through the date the financial statements were issued, and has determined there are no other subsequent events to be reported, other than as follows: | |
Issuance of Series A Convertible Preferred Stock to Blackstone | |
On January 27, 2014, we issued to Blackstone, and certain of its permitted transferees, 200,000 shares of our Series A Preferred Stock for an aggregate purchase price of $198.0 million, or $990 per share, pursuant to an Investment Agreement between us and Blackstone, dated December 28, 2013 (as amended, the “Investment Agreement”). In connection with the issuance of the Series A Preferred Stock (the “Closing”) and pursuant to the Investment Agreement, we paid Blackstone a closing fee of $2.0 million and reimbursed Blackstone’s transaction fees and expenses of approximately $4.0 million. | |
Prior to the Closing, we filed with the Secretary of State of the State of Delaware a Certificate of Designations of Series A Convertible Preferred Stock (the “Certificate of Designations”) creating the Series A Preferred Stock and establishing the designations, preferences, and other rights of the Series A Preferred Stock. The Certificate of Designations became effective upon filing. The Series A Preferred Stock ranks senior to our common stock with respect to dividend rights and rights on liquidation, winding-up and dissolution. The Series A Preferred Stock has a stated value of $1,000 per share, and holders of Series A Preferred Stock are entitled to cumulative dividends payable quarterly in cash at a rate of 6% per annum. If we fail to make timely dividend payments, the dividend rate will increase to 8% per annum until such time as all accrued but unpaid dividends have been paid in full. Holders of Series A Preferred Stock are entitled to receive dividends declared or paid on our common stock and are entitled to vote together with the holders of our common stock as a single class, in each case, on an as-converted basis. Holders of Series A Preferred Stock have certain limited special approval rights, including with respect to the issuance of pari passu or senior equity securities of the Company. | |
The Series A Preferred Stock is convertible at the option of the holders at any time after the Closing into shares of common stock at an implied conversion price of $14.50 per share, subject to adjustment. At our election, all or a portion of the Series A Preferred Stock will be convertible into the relevant number of shares of common stock on or after the third anniversary of the Closing, if the closing price of the common stock equals or exceeds $29.00 for 20 consecutive trading days. The conversion rate is subject to customary anti-dilution and other adjustments subject to certain share caps and other restrictions. | |
At any time after the eighth anniversary of the Closing, we will have the right to redeem and the holders of the Series A Preferred Stock will have the right to require us to repurchase, all or any portion of the Series A Preferred Stock at 100% of the stated value thereof plus all accrued but unpaid dividends. Upon certain change of control events involving us, the holders can require us to repurchase the Series A Preferred Stock at 101% of the stated value thereof plus all accrued but unpaid dividends. | |
The Investment Agreement grants Blackstone certain rights to designate directors to serve on our Board. For so long as Blackstone and its permitted transferees (i) beneficially own at least 95% of the Series A Preferred Stock or the as-converted common stock purchased pursuant to the Investment Agreement or (ii) maintain beneficial ownership of at least 12.5% of the our outstanding common stock (the “Two-Director Threshold”), Blackstone will have the right to designate for nomination two directors to our Board. For so long as Blackstone and its permitted transferees beneficially own shares of Series A Preferred Stock or the as-converted common stock purchased pursuant to the Investment Agreement that represent less than the Two-Director Threshold but more than 25% of the number of shares of the as-converted common stock purchased pursuant to the Investment Agreement, Blackstone will have the right to designate for nomination one director to our Board. The directors designated by Blackstone are entitled to serve on Board committees, subject to applicable law and stock exchange rules, and one of such directors must be appointed to the newly-formed committee tasked with identifying a new chief executive officer to fill the vacancy resulting from Mr. McCarvel’s resignation. | |
Pursuant to the Investment Agreement, Blackstone is subject to certain standstill restrictions which restrict Blackstone from acquiring more than 25% of our outstanding common stock until the date on which Blackstone is no longer entitled to designate any directors to the Board. In addition, subject to certain customary exceptions, Blackstone is restricted from transferring the Series A Preferred Stock until the second anniversary of the Closing and, for so long as any Series A Preferred Stock is outstanding, may not transfer the Series A Preferred Stock to certain of our competitors (as defined in the Investment Agreement) or holders of 25% or more of our common stock. Blackstone also has certain preemptive rights and information rights under the Investment Agreement, which are subject to certain conditions. | |
Registration Rights Agreement | |
On January 27, 2014, we and the Blackstone Purchasers entered into a Registration Rights Agreement (the “Registration Rights Agreement”), pursuant to which we have agreed to provide to the Blackstone Purchasers certain customary demand and piggyback registration rights in respect of the shares of Series A Preferred Stock and any shares of common stock issued upon conversion of the Series A Preferred Stock. The Registration Rights Agreement contains customary terms and conditions, including certain customary indemnification obligations. | |
Director Resignations and Appointments of New Directors | |
On January 24, 2014, Stephen Cannon and Jeffrey Margolis resigned from the Board, effective upon the Closing. Neither Mr. Cannon’s nor Mr. Margolis’s decision to resign was the result of any disagreement with us on any matter relating to our operations, policies or practices. | |
Effective upon the Closing, the Board appointed Prakash Melwani to serve as a Class III director and Gregg Ribatt to serve as a Class I director to fill the vacancies on the Board resulting from the resignations of Messrs. Cannon and Margolis. Messrs. Melwani and Ribatt were designated by Blackstone for election to the Board in accordance with the terms of the Investment Agreement. | |
Organization_Summary_of_Signif
Organization & Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Organization & Summary of Significant Accounting Policies [Abstract] | ' | |||
Basis of Consolidation | ' | |||
Basis of Consolidation—The consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of our wholly-owned subsidiaries as well as variable interest entities (“VIE”) for which we are the primary beneficiary after the elimination of intercompany accounts and transactions. The primary beneficiary of a VIE is the entity that has (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. | ||||
In 2007, we established a relationship with Shanghai Shengyiguan Trade, Ltd Co (“ST”) for the purpose of serving as a distributor of our products in the People’s Republic of China. We had previously determined that ST was a VIE for which we were the primary beneficiary and consequently it was consolidated as if a wholly-owned subsidiary. On March 15, 2012, we exercised an Equity Option Agreement that we had in place with ST and became the sole owner of ST. | ||||
In April 2011, we and an unrelated third party formed Crocs Gulf, LLC (“Crocs Gulf”) for the purpose of selling our products in the United Arab Emirates. We have determined that Crocs Gulf is a VIE for which we are the primary beneficiary due to our variable interest in Crocs Gulf’s equity and because we currently control all of the VIE’s business activities and will absorb all of its expected residual returns and expected losses. All voting and dividend rights have been assigned to us. As of December 31, 2013 and 2012, the consolidated financial statements included $2.4 million and $2.5 million in total assets of Crocs Gulf, respectively, which primarily consisted of cash and cash equivalents, inventory, property and equipment. The total assets as of each of December 31, 2013 and 2012 were partially offset by $0.2 million in total liabilities, which primarily consisted of accounts payable and accrued expenses, excluding liabilities related to the support provided by us. | ||||
Reclassifications | ' | |||
Reclassifications—Certain prior period amounts presented in the consolidated financial statements have been reclassified to conform to current period presentation as follows. | ||||
Management Estimates | ' | |||
Management Estimates—The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Management believes that the estimates, judgments and assumptions made when accounting for items and matters such as, but not limited to, the allowance for doubtful accounts, sales returns, impairment assessments and charges, recoverability of assets (including deferred tax assets), uncertain tax positions, share-based compensation expense, the assessment of lower of cost or market on inventory, useful lives assigned to long-lived assets, depreciation and provisions for contingencies are reasonable based on information available at the time they are made. Management also makes estimates in the assessments of potential losses in relation to tax and customs matters and threatened or pending legal proceedings (see Note 13—Commitments & Contingencies and Note 15—Legal Proceedings). Actual results could materially differ from these estimates. For matters not related to income taxes, if a loss is considered probable and the amount can be reasonably estimated, we recognize an expense for the estimated loss. If there is the potential to recover a portion of the estimated loss from a third party, we make a separate assessment of recoverability and reduce the estimated loss if recovery is deemed probable. | ||||
Accumulated Other Comprehensive Income | ' | |||
Accumulated Other Comprehensive Income—Activity within our accumulated other comprehensive income (“AOCI”) balance consists solely of gains and losses resulting from the translation of foreign subsidiary financial statements to our reporting currency. Foreign currency translation resulting in changes to other comprehensive income and related reclassification adjustments are presented net of tax effects on the consolidated statements of other comprehensive income. Foreign currency reclassification adjustments are included within the line item entitled ‘Foreign currency transaction gains (losses), net’ on the consolidated statements of operations. | ||||
Fair Value | ' | |||
Fair Value—Fair value is the price that would be received from the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, we consider the principal or most advantageous market in which a hypothetical sale or transfer would take place and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of non-performance. | ||||
The fair value hierarchy is made up of three levels of inputs which may be used to measure fair value: | ||||
Level 1—observable inputs such as quoted prices for identical instruments in active markets; | ||||
Level 2—observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model derived valuations in which all significant inputs are observable in active markets; and | ||||
Level 3—unobservable inputs for which there is little or no market data and which require us to develop our own assumptions. We categorize fair value measurements within the fair value hierarchy based upon the lowest level of the most significant inputs used to determine such fair value measurement. | ||||
Cash equivalents primarily include time deposits and certificates of deposit with original maturities of three months or less. Time deposits and certificates of deposit included in cash equivalents are valued at amortized cost, which approximates fair value. These investments have been classified as a Level 1 measurement. | ||||
Derivative financial instruments are required to be recorded at their fair value, on a recurring basis. The fair values of our derivative instruments are determined using a discounted cash flow valuation model. The significant inputs used in the model are readily available in public markets or can be derived from observable market transactions, and therefore, have been classified as Level 2. These inputs include the applicable exchange rates and forward rates, and discount rates based on the prevailing LIBOR deposit rates. | ||||
Our other financial instruments are not required to be carried at fair value on a recurring basis. The carrying value of these financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximates fair value due to their short maturities. Based on borrowing rates currently available to us, with similar terms, the carrying values of capital lease obligations and the line of credit approximate their fair values. | ||||
Inventories and long-lived assets such as property and equipment and intangible assets are also not required to be carried at fair value on a recurring basis. For a discussion of inventory estimated fair value see “Inventory Valuation” below. However, when determining impairment losses, the fair values of property and equipment and intangibles must be determined. For such determination, we generally use either an income approach with inputs that are mainly unobservable, such as expected future cash flows, or a market approach using observable inputs such as replacement cost or third party appraisals, as appropriate. Estimated future cash flows are based on management’s operating budgets and forecasts which take into consideration both observable and unobservable inputs including growth rates, pricing, new markets and other factors expected to affect the business, as well as management’s forecasts for inventory, receivables, capital spending, and other cash needs. We consider this type of estimate to be classified as a Level 3 measurement. See Note 6—Fair Value Measurements for further discussion related to fair value measurements. | ||||
Cash and Cash Equivalents | ' | |||
Cash and Cash Equivalents—Cash and cash equivalents represent cash and short-term, highly liquid investments with maturities of three months or less at the date of purchase. We consider receivables from credit card companies to be cash equivalents, if expected to be received within five days. | ||||
Accounts Receivable | ' | |||
Accounts Receivable—Accounts receivable represent amounts due from customers. Accounts receivable are recorded at invoiced amounts, net of reserves and allowances, are not collateralized and do not bear interest. We use our best estimate to determine the required allowance for doubtful accounts based on a variety of factors, including the length of time receivables are past due, economic trends and conditions affecting our customer base, significant non-recurring events and historical non-collection experience. Specific provisions are recorded for individual receivables when we become aware of a customer’s inability to meet its financial obligations. | ||||
Inventory Valuation | ' | |||
Inventory Valuation—Inventories are valued at the lower of cost or market. Inventory cost is determined using the moving average cost method. At least annually, or more frequently if events and circumstances indicate fair value is less than carrying value, we evaluate our inventory for possible impairment using standard categories to classify inventory based on the degree to which we believe that the products may need to be discounted below cost to sell within a reasonable period. We base inventory fair value on several subjective assumptions including estimated future demand and market conditions, as well as other observable factors such as current sell-through of our products, recent changes in demand for our products, global and regional economic conditions, historical experience selling through liquidation and price discounted channels and the amount of inventory on hand. If the estimated inventory fair value is less than its carrying value, the carrying value is adjusted to market value and the resulting impairment charge is recorded in ‘Cost of sales’ on the consolidated statements of operations. See Note 2—Inventories for further discussion related to inventories. | ||||
Property and Equipment | ' | |||
Property and Equipment—Property, equipment, furniture and fixtures are stated at cost and depreciation is computed using the straight-line method based on the estimated useful lives ranging from two to five years. Leasehold improvements are stated at cost and amortized on the straight-line basis over their estimated economic useful lives or the lease term, whichever is shorter. Depreciation of manufacturing assets is included in cost of sales on the consolidated statements of operations. Depreciation related to corporate, non-product and non-manufacturing assets is included in ‘Selling, general and administrative expenses’ on the consolidated statements of operations. | ||||
Impairment of Long-Lived Assets | ' | |||
Impairment of Long-Lived Assets—Long-lived assets to be held and used are evaluated for impairment when events or circumstances indicate the carrying value of a long-lived asset may not be fully recoverable. Events that may indicate the impairment of a long-lived asset (or asset group, as defined below) include (i) a significant decrease in its market price, (ii) a significant adverse change in the extent or manner in which it is being used or in its physical condition, (iii) a significant adverse change in legal factors or business climate that could affect its value, including an adverse action or assessment by a regulator, (iv) an accumulation of costs significantly in excess of the amount originally expected for its acquisition or construction, (v) its current period operating or cash flow losses combined with historical operating or cash flow losses or a forecast of its cash flows demonstrate continuing losses associated with its use, and (vi) a current expectation that, more likely than not, it will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. If such facts indicate a potential impairment of a long-lived asset (or asset group), we assess the recoverability by determining if its carrying value exceeds the sum of its projected undiscounted cash flows from its use and eventual disposition over its remaining economic life. If the asset is not supported on an undiscounted cash flow basis, the amount of impairment is measured as the difference between its carrying value and its estimated fair value. Assets held for sale are reported at the lower of the carrying amount or fair value less costs to sell. Assets to be abandoned or from which no further benefit is expected are written down to zero at the time that the determination is made and the assets are removed entirely from service. | ||||
An asset group is the lowest level of assets and liabilities for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For assets involved in our retail business, our asset group is at the retail store level. See Note 3 – Property and Equipment for a discussion of impairment losses recorded during the periods presented. | ||||
Goodwill & Intangible Assets | ' | |||
Intangible Assets—Intangible assets that are determined to have finite lives are amortized over their useful lives on a straight-line basis. Customer relationships are amortized on a straight-line basis or an accelerated basis. Indefinite lived intangible assets, such as trade names, are not amortized and are evaluated for impairment at least annually and when circumstances imply possible impairment. | ||||
Amortization of manufacturing intangible assets is included in cost of sales on the consolidated statements of operations. Amortization related to corporate, non-product and non-manufacturing assets such as our global information systems is included in selling, general and administrative expenses on the consolidated statements of operations. The following table sets forth our definite lived intangible assets and the periods over which they are amortized. | ||||
Intangible Asset Class | Weighted Average Amortization Period | |||
Patents................................................................. | 10 years | |||
Customer relationships......................................... | Estimated customer life | |||
Core technology................................................... | 5 years | |||
Non-competition agreement................................... | Contractual term | |||
Capitalized software............................................. | Shorter of 7 years or useful life | |||
Capitalized Software—We capitalize certain internal and external software acquisition and development costs, including the costs of employees and contractors devoting time to the software development projects and external direct costs for materials and services. Initial costs associated with internally-developed-and-used software are expensed until it is determined that the project has reached the application development stage. Once in its development stage, subsequent additions, modifications or upgrades to an internal-use software project are capitalized to the extent that they add functionality. Software maintenance and training costs are expensed in the period in which they are incurred. Capitalized software primarily consists of our enterprise resource system software, warehouse management software and point of sale software. At least annually, we consider the potential impairment of capitalized software by assessing the substantive service potential of the software, changes, if any, in the extent or manner in which the software is used or is expected to be used, and the actual cost of software development or modification compared to expected cost. See Note 4—Goodwill and Intangible Assets for further discussion. | ||||
Impairment of Intangible Assets—Intangible assets with indefinite lives are evaluated for impairment when events or changes in circumstances indicate that the carrying value may not be fully recoverable and at least annually. Intangible assets that are determined to have definite lives are amortized over their useful lives and are evaluated for impairment only when events or circumstances indicate a carrying value may not be fully recoverable. Recoverability is based on the estimated future undiscounted cash flows of the asset. If the asset is not supported on an undiscounted cash flow basis, the amount of impairment is measured as the difference between its carrying value and its estimated fair value. | ||||
Goodwill—Goodwill represents the excess purchase price paid over the fair value of assets acquired and liabilities assumed in acquisitions. Goodwill is considered an indefinite lived asset and therefore is not amortized. The Company assesses goodwill for impairment annually on the last day of the fourth quarter, or more frequently if events and circumstances indicate impairment may have occurred. If the carrying value of goodwill exceeds its implied fair value, the Company records an impairment loss equal to the difference. See Note 4—Goodwill and Intangible Assets for discussion of goodwill balances and discussion of impairment losses recorded during the periods presented. | ||||
Earnings per Share | ' | |||
Earnings per Share—Basic and diluted earnings per common share (“EPS”) is presented using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividend rights and participation rights in undistributed earnings. Under the two-class method, EPS is computed by dividing the sum of distributed and undistributed earnings attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. A participating security is an unvested share-based payment award containing non-forfeitable rights to dividends and must be included in the computation of earnings per share pursuant to the two-class method. Shares of the Company’s non-vested restricted stock awards are considered participating securities. Diluted EPS reflects the potential dilution from securities that could share in the earnings of the Company. Anti-dilutive securities are excluded from diluted EPS. See Note 12—Earnings per Share for further discussion. | ||||
Recognition of Revenues | ' | |||
Recognition of Revenues—Revenues are recognized when the customer takes title and assumes risk of loss, collection of related receivables is probable, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable. Title passes on shipment or on receipt by the customer depending on the country in which the sale occurs and the agreement terms with the customer. Allowances for estimated returns and discounts are recognized when the related revenue is earned. | ||||
Shipping and Handling Costs and Fees | ' | |||
Shipping and Handling Costs and Fees—Shipping and handling costs are expensed as incurred and included in cost of sales. Shipping and handling fees billed to customers are included in revenues. | ||||
Share-based Compensation | ' | |||
Share-based Compensation—We have share-based compensation plans in which certain officers, employees and members of the board of directors are participants and may be granted stock options, restricted stock and stock performance awards. Awards granted under these plans are fair valued and amortized, net of estimated forfeitures, over the vesting period using the straight-line method. The fair value of stock options is calculated by using the Black Scholes option pricing model that requires estimates for expected volatility, expected dividends, the risk-free interest rate and the term of the option. If any of the assumptions used in the Black Scholes model or the anticipated number of shares to be awarded change significantly, share-based compensation expense may differ materially in the future from that recorded in the current period. Share-based compensation expense associated with our manufacturing and retail employees is included in ‘Cost of sales’ in the consolidated statements of operations. Share-based compensation expense associated with selling, marketing and administrative employees is included ‘Selling, general and administrative expenses’ on the consolidated statements of operations. Share-based compensation directly associated with the construction or implementation of certain long-term projects for internal use are capitalized to the consolidated balance sheets until assets are ready for intended use and will be amortized over the useful life of the assets upon that date. See Note 9—Equity for additional information related to share-based compensation. | ||||
Defined Contribution Plans | ' | |||
Defined contribution plans—We have a 401(k) plan known as the Crocs, Inc. 401(k) Plan (the “Plan”). The Plan is available to employees on our U.S. payroll and provides employees with tax deferred salary deductions and alternative investment options. The Plan does not provide employees with the option to invest in our common stock. Employees may contribute up to 75.0% of their salary, subject to certain limitations. We match employees’ contributions to the Plan up to a maximum of 4.0% of eligible compensation. We expensed $6.8 million, $5.8 million and $4.6 million in the years ended December 31, 2013, 2012 and 2011, respectively, for our employee match contributions to the Plan. | ||||
Advertising | ' | |||
Advertising—Advertising costs are expensed as incurred and production costs are generally expensed when the advertising is first run. Total advertising, marketing and promotional costs reflected in ‘Selling, general, and administrative expenses’ on the consolidated statement of operations were $47.6 million, $39.8 million and $39.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||
Research and Development | ' | |||
Research and Development—Research and development costs are expensed as incurred. Research and development expenses amounted to $15.4 million, $12.0 million and $10.8 million for the years ended December 31, 2013, 2012 and 2011, respectively, and are included in ‘Selling, general, and administrative expenses’ in the consolidated statement of operations. | ||||
Foreign Currency Translation and Foreign Currency Transactions | ' | |||
Foreign Currency Translation and Foreign Currency Transactions—Our reporting currency is the U.S. dollar. Assets and liabilities of foreign operations denominated in local currencies are translated at the rate of exchange at the balance sheet date. Revenues and expenses are translated at the weighted average rate of exchange during the applicable period. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are included in the foreign currency translation adjustment, a component of accumulated other comprehensive income in stockholders’ equity. | ||||
Gains and losses generated by transactions denominated in currencies other than the local functional currencies are reflected in the consolidated statement of operations in the period in which they occur and are primarily associated with payables and receivables arising from intercompany transactions. | ||||
Derivative Foreign Currency Contracts | ' | |||
Derivative Foreign Currency Contracts—We are directly and indirectly affected by fluctuations in foreign currency rates which may adversely impact our financial performance. To mitigate the potential impact of foreign currency exchange rate risk, we may employ derivative financial instruments including forward contracts and option contracts. Forward contracts are agreements to buy or sell a quantity of a currency at a predetermined future date and at a predetermined rate. An option contract is an agreement that conveys the purchaser the right, but not the obligation, to buy or sell a quantity of a currency at a predetermined rate during a period or at a time in the future. These derivative financial instruments are viewed as risk management tools and are not used for trading or speculative purposes. We recognize derivative financial instruments as either assets or liabilities in the consolidated balance sheets and measure those instruments at fair value. Changes in the fair value of derivatives not designated or effective as hedges are recorded in ‘Foreign currency transaction (gains)/losses, net” in the consolidated statements of operations. We had no derivative instruments that qualified for hedge accounting during any of the periods presented. See Note 7—Fair Value Measurements and Financial Instruments for further discussion. | ||||
Income Taxes | ' | |||
Income Taxes—Income taxes are accounted for using the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of other assets and liabilities. We provide for income taxes at the current and future enacted tax rates and laws applicable in each taxing jurisdiction. We use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. We recognize interest and penalties related to income tax matters in income tax expense in the consolidated statement of operations. See Note 11—Income Taxes for further discussion. | ||||
Taxes Assessed by Government Authorities | ' | |||
Taxes Assessed by Governmental Authorities—Taxes assessed by governmental authorities that are directly imposed on a revenue transaction, including value added tax, are recorded on a net basis and are therefore excluded from sales. | ||||
Recently Adopted Accounting Pronouncements | ' | |||
Recently Adopted Accounting Pronouncements | ||||
In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-11 Balance Sheet (Topic 210) Disclosures about Offsetting Assets and Liabilities (“ASU No. 2011-11”). This pronouncement was issued to enhance disclosure requirements surrounding the nature of an entity’s right to offset and related arrangements associated with its financial instruments and derivative instruments. This new guidance requires companies to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to master netting arrangements. ASU No. 2011-11 was effective for us on January 1, 2013. The adoption of this pronouncement did not have a material impact to the Company’s consolidated financial position or results of operations. ASU No. 2011-11 was subsequently amended by ASU No. 2013-01. | ||||
In January 2013, the FASB issued ASU No. 2013-01 Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (“ASU No. 2013-01”). This pronouncement clarifies the scope of the offsetting disclosure requirements in ASU No. 2011-11. Under ASU No. 2013-01, the disclosure would apply to derivative instruments accounted for in accordance with ASC 815. ASU No. 2013-01 was effective for us January 1, 2013. The adoption of this pronouncement did not have a material impact to the Company’s consolidated financial position or results of operations. | ||||
In February 2013, the FASB issued ASU No. 2013-02 Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU No. 2013-02”). This pronouncement required entities to disclose the following additional information about items reclassified out of AOCI: | ||||
1) | Changes in AOCI balances by component, with separate presentation of reclassification adjustments and current period other comprehensive income (“OCI”). Both before-tax and net-of-tax presentations of the information are acceptable as long as an entity presents the income tax benefit or expense attributed to each component of OCI and reclassification adjustments in either the financial statements or the notes to the financial statements. | |||
2) | Significant items reclassified out of AOCI by component either on the face of the consolidated statements of operations or as a separate footnote to the financial statements. | |||
This pronouncement does not change the current U.S. GAAP requirements for interim financial statement reporting of comprehensive income. However, public entities also need to include information about (1) changes in AOCI balances by component and (2) significant items reclassified out of AOCI in interim reporting periods. This pronouncement was effective for us on January 1, 2013. The adoption of this pronouncement did not have a material impact to the Company’s consolidated financial position or results of operations. | ||||
In March 2013, the FASB issued ASU No. 2013-05 Foreign Currency Matters (Topic 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (“ASU No. 2013-05”). This pronouncement indicates that the entire amount of a cumulative translation adjustment (CTA) related to an entity’s investment in a foreign entity should be released when there has been a: | ||||
1) | Sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity. | |||
2) | Loss of a controlling financial interest in an investment in a foreign entity (i.e. deconsolidation) | |||
3) | Step acquisition for a foreign entity (i.e. when an entity has changed from applying the equity method for an investment in a foreign entity to consolidating the foreign entity). | |||
This ASU does not change the requirement to release a pro rata portion of the CTA of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. For all public entities, this pronouncement is effective for fiscal years beginning on or after December 15, 2013. As early adoption is permitted, the Company adopted this pronouncement on January 1, 2013. The adoption of this pronouncement did not have a material impact to the Company’s consolidated financial position or results of operations. | ||||
Recently Issued Accounting Pronouncements | ' | |||
Recently Issued Accounting Pronouncements | ||||
In July 2013, the FASB issued ASU No. 2013-11 Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU No. 2013-11”). This pronouncement provides guidance on financial statement presentation of an unrecognized tax benefit (“UTB”) when a net operating loss (“NOL”) carryforward, a similar tax loss or a tax credit carryforward exists. Under the pronouncement, an entity must present a UTB, or a portion of the UTB, in the financial statements as a reduction to a deferred tax asset (“DTA”) for an NOL carryforward, a similar tax loss or a tax credit carryforward except when: | ||||
1) | An NOL carryforward, a similar tax loss or a tax credit carryforward is not available as of the reporting date under the governing tax law to settle that would result from the disallowance of the tax position. | |||
2) | The entity does not intend to use the DTA for this purpose (provided that the tax law permits a choice). | |||
If either of these conditions exists, an entity should present a UTB in the financial statements as a liability and should not net the UTB with a DTA. This amendment does not affect the amounts disclosed in the tabular reconciliation of the total amounts of UTBs because the tabular reconciliation presents gross amounts of UTBs. This pronouncement is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2013. The Company will adopt the provisions of ASU No. 2013-11 on January 1, 2014. We do not anticipate the provisions of ASU No. 2013-11 will have a material impact on to the Company’s consolidated financial position or results of operations. | ||||
Recovered_Sheet1
Accrued Expenses and Other Current Liabilities (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Asset Retirement Obligation [Abstract] | ' |
Asset Retirement Obligation Policy | ' |
We record a liability equal to the fair value of the estimated future cost to retire an asset, if the liability’s fair value can be reasonably estimated. Our asset retirement obligation (“ARO”) liabilities are primarily associated with the disposal of property and equipment which we are contractually obligated to remove at the end of certain retail and office leases in order to restore the facilities back original condition as specified in the related lease agreements. We estimate the fair value of these liabilities based on current store closing costs and discount the costs back as if they were to be performed at the inception of the lease. At the inception of such leases, we record the ARO as a liability and also record a related asset in an amount equal to the estimated fair value of the obligation. The capitalized asset is then depreciated on a straight-line basis over the useful life of the asset. Upon retirement of the ARO liability, any difference between the actual retirement costs incurred and the previously recorded estimated ARO liability is recognized as a gain or loss in the consolidated statements of operations. | |
Organization_Summary_of_Signif1
Organization & Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |
Dec. 31, 2013 | ||
Organization & Summary of Significant Accounting Policies [Abstract] | ' | |
Schedule of Finite Lived Intangible Assets Useful Life | ' | |
Intangible Asset Class | Weighted Average Amortization Period | |
Patents................................................................. | 10 years | |
Customer relationships......................................... | Estimated customer life | |
Core technology................................................... | 5 years | |
Non-competition agreement................................... | Contractual term | |
Capitalized software............................................. | Shorter of 7 years or useful life | |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Inventories [Abstract] | ' | ||||||
Schedule of Inventory | ' | ||||||
December 31, | |||||||
($ thousands) | 2013 | 2012 | |||||
Finished goods | $ | 154,272 | $ | 155,833 | |||
Work-in-progress | 685 | 911 | |||||
Raw materials | 7,384 | 8,060 | |||||
Inventories | $ | 162,341 | $ | 164,804 | |||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Property And Equipment [Abstract] | ' | |||||||||||||||
Schedule of Property and Equipment | ' | |||||||||||||||
December 31, | ||||||||||||||||
($ thousands) | 2013 | 2012 | ||||||||||||||
Machinery and equipment | $ | 52,003 | $ | 68,713 | ||||||||||||
Leasehold improvements | 93,235 | 88,653 | ||||||||||||||
Furniture, fixtures and other | 23,653 | 20,827 | ||||||||||||||
Construction-in-progress | 16,231 | 8,766 | ||||||||||||||
Property and equipment, gross (1) | 185,122 | 186,959 | ||||||||||||||
Less: Accumulated depreciation (2) | -98,151 | -104,718 | ||||||||||||||
Property and equipment, net | $ | 86,971 | $ | 82,241 | ||||||||||||
Schedule of Asset Impairments by Segment | ' | |||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
($ thousands, except store count data) | Impairment charge | Number of stores | Impairment charge | Number of stores | Impairment charge | Number of stores | ||||||||||
Americas | $ | 3,861 | 23 | $ | 1,410 | 4 | $ | - | - | |||||||
Asia Pacific | 185 | 2 | - | - | - | - | ||||||||||
Japan | - | - | - | - | - | - | ||||||||||
Europe | 6,565 | 35 | - | - | - | - | ||||||||||
Asset impairment charges | $ | 10,611 | 60 | $ | 1,410 | 4 | $ | - | - | |||||||
Goodwill_Intangible_Assets_Tab
Goodwill & Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Goodwill & Intangible Assets [Abstract] | ' | |||||||||||||||||||
Schedule of Goodwill & Intangible Assets | ' | [1],[2] | ||||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||||||
($ thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||
Capitalized software | $ | 118,940 | -1 | $ | -49,665 | -2 | $ | 69,275 | $ | 87,426 | -1 | $ | -33,933 | -2 | $ | 53,493 | ||||
Customer relationships | 6,878 | -6,439 | 439 | 7,145 | -6,222 | 923 | ||||||||||||||
Patents, copyrights, and trademarks | 6,501 | -4,272 | 2,229 | 6,161 | -3,522 | 2,639 | ||||||||||||||
Core technology | 4,548 | -4,548 | - | 4,856 | -4,856 | - | ||||||||||||||
Other | 983 | -709 | 274 | 670 | -636 | 34 | ||||||||||||||
Total finite lived intangible assets | 137,850 | -65,633 | 72,217 | 106,258 | -49,169 | 57,089 | ||||||||||||||
Indefinite lived intangible assets | 97 | - | 97 | 113 | - | 113 | ||||||||||||||
Goodwill | 2,508 | - | 2,508 | 2,729 | - | 2,729 | ||||||||||||||
Intangible assets | $ | 140,455 | $ | -65,633 | $ | 74,822 | $ | 109,100 | $ | -49,169 | $ | 59,931 | ||||||||
Schedule of Future Amortization of Intangible Assets | ' | |||||||||||||||||||
Amortization | ||||||||||||||||||||
Fiscal years ending December 31, | ($ thousands) | |||||||||||||||||||
2014 | $ | 16,721 | ||||||||||||||||||
2015 | 13,729 | |||||||||||||||||||
2016 | 13,935 | |||||||||||||||||||
2017 | 14,706 | |||||||||||||||||||
2018 | 7,198 | |||||||||||||||||||
Thereafter | 5,928 | |||||||||||||||||||
Total | $ | 72,217 | ||||||||||||||||||
[1] | Includes $4.1 million of software held under a capital lease classified as capitalized software as of each of December 31, 2013 and 2012. | |||||||||||||||||||
[2] | Includes $1.9B million and $1.3B million of accumulated amortization of software held under a capital lease as of December 31, 2013 and 2012, respectively, which is amortized using the straight-line method over the useful life. |
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilies (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Accrued Expenses And Other Current Liabilities [Abstract] | ' | ||||||
Schedule of Accrued Expenses & Other Current Liabilities | ' | ||||||
December 31, | |||||||
($ thousands) | 2013 | 2012 | |||||
Accrued compensation and benefits | $ | 26,903 | $ | 19,714 | |||
Professional services | 14,128 | 10,342 | |||||
Fulfillment, freight and duties | 12,565 | 8,621 | |||||
Accrued rent and occupancy | 12,198 | 10,226 | |||||
Sales/use and VAT tax payable | 9,142 | 12,444 | |||||
Accrued legal | 8,722 | 3,246 | |||||
Customer deposits | 6,940 | 2,593 | |||||
Entrusted loan payable (1) | - | 7,943 | |||||
Other (2) | 6,513 | 6,242 | |||||
Total accrued expenses and other current liabilities | $ | 97,111 | $ | 81,371 | |||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||
Schedule of Fair Value Measurements on a Recurring Basis | ' | ||||||||||||||
Fair Value as of December 31, 2013 | |||||||||||||||
Quoted prices in | Significant | ||||||||||||||
active markets | other | Significant | |||||||||||||
for identical | observable | unobservable | |||||||||||||
assets or liabilities | inputs | inputs | |||||||||||||
($ thousands) | (Level 1) | (Level 2) | (Level 3) | Total | Balance Sheet Classification | ||||||||||
Cash equivalents | $ | 37,870 | $ | - | $ | - | $ | 37,870 | Cash and cash equivalents and other current assets | ||||||
Derivative assets: | |||||||||||||||
Foreign currency contracts | - | 13,501 | - | 13,501 | Prepaid expenses and other current assets and other assets | ||||||||||
Derivative liabilities: | |||||||||||||||
Foreign currency contracts | $ | - | $ | 984 | $ | - | $ | 984 | Accrued expense and other current liabilities | ||||||
Fair Value as of December 31, 2012 | |||||||||||||||
Quoted prices in | Significant | ||||||||||||||
active markets | other | Significant | |||||||||||||
for identical | observable | unobservable | |||||||||||||
assets or liabilities | inputs | inputs | |||||||||||||
($ thousands) | (Level 1) | (Level 2) | (Level 3) | Total | Balance Sheet Classification | ||||||||||
Cash equivalents | $ | 14,800 | $ | - | $ | - | $ | 14,800 | Cash and cash equivalents | ||||||
Derivative assets: | |||||||||||||||
Foreign currency contracts | - | 5,548 | - | 5,548 | Prepaid expenses and other current assets and other assets | ||||||||||
Derivative liabilities: | |||||||||||||||
Foreign currency contracts | $ | - | $ | 295 | $ | - | $ | 295 | Accrued expense and other current liabilities | ||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Derivative Financial Instruments [Abstract] | ' | |||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ' | |||||||||||
December 31, | ||||||||||||
($ thousands) | 2013 | 2012 | ||||||||||
Foreign currency exchange forward contracts by currency: | ||||||||||||
Japanese Yen | $ | 68,707 | $ | 112,500 | ||||||||
Euro | 38,577 | 5,159 | ||||||||||
Singapore Dollar | 28,225 | - | ||||||||||
Mexican Peso | 18,350 | 11,400 | ||||||||||
Russian Ruble | 17,588 | - | ||||||||||
Pound Sterling | 15,487 | 8,742 | ||||||||||
South Korean Won | 12,100 | - | ||||||||||
Australian Dollar | 4,941 | 4,178 | ||||||||||
New Taiwan Dollar | 3,463 | - | ||||||||||
Canadian Dollar | 3,428 | - | ||||||||||
South African Rand | 3,076 | - | ||||||||||
Indian Rupee | 2,150 | - | ||||||||||
Hong Kong Dollar | 1,844 | - | ||||||||||
Swedish Krona | 1,615 | - | ||||||||||
New Zealand Dollar | 943 | 1,137 | ||||||||||
Total notional value, net | $ | 220,494 | $ | 143,116 | ||||||||
Latest maturity date | Dec-15 | Dec-15 | ||||||||||
Schedule of Derivative Instrument Gain | ' | |||||||||||
Year Ended December 31, | ||||||||||||
($ thousands) | 2013 | 2012 | 2011 | Location of Gain (Loss) Recognized in Income on Derivatives | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Foreign currency exchange forwards | $ | -13,002 | $ | -7,200 | $ | 540 | Foreign currency transaction (gains) losses, net | |||||
Revolving_Credit_Facility_and_
Revolving Credit Facility and Bank Borrowings (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Debt Disclosure [Abstract] | ' | ||
Schedule of Maturities of Long-Term Debt | ' | ||
Fiscal years ending December 31, | |||
2014 | $ | 5,135 | |
2015 | 5,271 | ||
2016 | 4,765 | ||
2017 | 1,607 | ||
2018 | - | ||
Thereafter | - | ||
Total principal debt maturities | $ | 16,778 | |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Stock Based Compensation [Abstract] | ' | |||||||||
Schedule Of Stock Options | ' | |||||||||
Weighted | ||||||||||
Average | ||||||||||
Weighted | Remaining | Aggregate | ||||||||
Average | Contractual | Intrinsic | ||||||||
Exercise | Life | Value | ||||||||
Shares | Price | (Years) | ($ thousands) | |||||||
Outstanding at December 31, 2010 | 5,007,337 | $ | 9.10 | 6.36 | $ | 47,009 | ||||
Granted | 468,000 | 19.81 | ||||||||
Exercised | -1,738,741 | 6.28 | ||||||||
Forfeited or expired | -405,565 | 10.46 | ||||||||
Outstanding at December 31, 2011 | 3,331,031 | 11.91 | 6.35 | 18,468 | ||||||
Granted | 208,400 | 16.84 | ||||||||
Exercised | -613,691 | 6.04 | ||||||||
Forfeited or expired | -304,054 | 17.55 | ||||||||
Outstanding at December 31, 2012 | 2,621,686 | 13.03 | 5.55 | 11,373 | ||||||
Granted | 177,000 | 15.62 | ||||||||
Exercised | -333,395 | 6.84 | ||||||||
Forfeited or expired | -360,139 | 18.18 | ||||||||
Outstanding at December 31, 2013 | 2,105,152 | $ | 13.34 | 4.86 | $ | 10,790 | ||||
Exercisable at December 31, 2013 | 1,732,398 | $ | 12.56 | 4.21 | $ | 10,621 | ||||
Vested and expected to vest at December 31, 2013 | 2,019,478 | $ | 13.22 | 4.72 | $ | 10,745 | ||||
Schedule of Option Pricing Model | ' | |||||||||
Year Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Expected volatility | 50 - 64% | 50 - 70% | 50 - 60% | |||||||
Dividend yield | - | - | - | |||||||
Risk-free interest rate | 0.81% - 1.62% | 0.62% - 1.20% | 0.87% - 2.31% | |||||||
Expected life (in years) | 4.00 | 4.00 - 4.27 | 4.35 - 4.89 | |||||||
Schedule Of Restricted Stock Units | ' | |||||||||
Restricted Stock Awards | Restricted Stock Units | |||||||||
Weighted | Weighted | |||||||||
Average | Average | |||||||||
Grant Date | Grant Date | |||||||||
Shares | Fair Value | Units | Fair Value | |||||||
Unvested at December 31, 2010 | 953,423 | $ | 8.54 | 116,400 | $ | - | ||||
Granted | 118,520 | 19.10 | 651,791 | 24.89 | ||||||
Vested | -352,150 | -1 | 6.19 | -21,150 | -1 | 17.25 | ||||
Forfeited | -148,618 | 9.67 | -35,061 | 15.41 | ||||||
Unvested at December 31, 2011 | 571,175 | 11.87 | 711,980 | 23.43 | ||||||
Granted | 18,813 | 16.48 | 1,010,559 | 18.92 | ||||||
Vested | -191,779 | -1 | 9.22 | -133,555 | -1 | 23.25 | ||||
Forfeited | -42,700 | 13.25 | -174,323 | 20.64 | ||||||
Unvested at December 31, 2012 | 355,509 | 13.37 | 1,414,661 | 20.61 | ||||||
Granted | 21,590 | 16.56 | 1,637,114 | 14.96 | ||||||
Vested | -89,006 | -1 | 14.81 | -329,542 | -1 | 21.52 | ||||
Forfeited | -77,603 | 12.46 | -756,566 | 14.71 | ||||||
Unvested at December 31, 2013 | 210,490 | $ | 13.43 | 1,965,667 | $ | 16.50 | ||||
Allowances_Tables
Allowances (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Allowances For Doubtful Accounts and Sales Returns Tables | ' | ||||||||||||
Allowances Rollforward | ' | ||||||||||||
($ thousands) | Balance at Beginning of Year | Charged to costs and expenses | Reversals and Write-offs | Balance at End of Year | |||||||||
Year ended December 31, 2011: | |||||||||||||
Allowance for doubtful accounts | $ | 4,642 | $ | -383 | $ | -579 | $ | 3,680 | |||||
Reserve for sales returns and allowances | 5,607 | 9,965 | -3,744 | 11,828 | |||||||||
Year ended December 31, 2012: | |||||||||||||
Allowance for doubtful accounts | 3,680 | 2,166 | -2,405 | 3,441 | |||||||||
Reserve for sales returns and allowances | 11,828 | 5,111 | -7,065 | 9,874 | |||||||||
Year ended December 31, 2013: | |||||||||||||
Allowance for doubtful accounts | $ | 3,441 | $ | 1,930 | $ | -1,715 | $ | 3,656 | |||||
Reserve for sales returns and allowances | 9,874 | 13,888 | -16,905 | 6,857 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Income Taxes [Abstract] | ' | |||||||||
Schedule of Income Tax Expense/Benefit | ' | |||||||||
December 31, | ||||||||||
($ thousands) | 2013 | 2012 | 2011 | |||||||
Income (loss) before taxes: | ||||||||||
U.S. | $ | -7,818 | $ | 12,060 | $ | -12,057 | ||||
Foreign | 67,777 | 133,488 | 148,747 | |||||||
Total income before taxes | 59,959 | 145,548 | 136,690 | |||||||
Income tax expense: | ||||||||||
Current income taxes | ||||||||||
U.S. federal | 3,311 | -6,364 | 4,798 | |||||||
U.S. state | 355 | 597 | 165 | |||||||
Foreign | 22,337 | 22,953 | 19,758 | |||||||
Total current income taxes | 26,003 | 17,186 | 24,721 | |||||||
Deferred income taxes: | ||||||||||
U.S. federal | 14,968 | -3,981 | -2,338 | |||||||
U.S. state | 3,639 | -4,016 | - | |||||||
Foreign | 4,929 | 5,016 | 1,519 | |||||||
Total deferred income taxes | 23,536 | -2,981 | -819 | |||||||
Total income tax expense | $ | 49,539 | $ | 14,205 | $ | 23,902 | ||||
Effective Tax Rate Reconciliation | ' | |||||||||
December 31, | ||||||||||
($ thousands) | 2013 | 2012 | 2011 | |||||||
Federal income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||||
State income tax rate, net of federal benefit | -0.6 | -2.7 | 0.3 | |||||||
Foreign income tax rate differential | -47.9 | -25 | -30.3 | |||||||
Non-deductible / Non-taxable items | 3.4 | 4.6 | 3.2 | |||||||
Change in valuation allowance | 35.6 | -8.4 | 3.6 | |||||||
U.S. tax on foreign earnings | 38.2 | 2.0 | - | |||||||
Uncertain tax positions | 6.8 | 3.5 | 8.7 | |||||||
Audit settlements | 5.1 | - | - | |||||||
Non-deductible write-off of intercompany debt | 1.9 | - | - | |||||||
Non-deductible impairment | 3.5 | - | - | |||||||
Other | 1.6 | 0.8 | -3 | |||||||
Effective income tax rate | 82.6 | % | 9.8 | % | 17.5 | % | ||||
Deferred Income Tax Assets and Liabilities | ' | |||||||||
December 31, | ||||||||||
($ thousands) | 2013 | 2012 | ||||||||
Current deferred tax assets: | ||||||||||
Accrued expenses | $ | 13,108 | $ | 12,934 | ||||||
Unrealized loss on foreign currency | 10 | 2,026 | ||||||||
Other | 1,364 | 8 | ||||||||
Valuation allowance | -5,139 | -3,492 | ||||||||
Total current deferred tax assets | $ | 9,343 | $ | 11,476 | ||||||
Current deferred tax liabilities: | ||||||||||
Unremitted earnings of foreign subsidiary | $ | -16,102 | $ | -7,596 | ||||||
Total current deferred tax liabilities. | $ | -16,102 | $ | -7,596 | ||||||
Non-current deferred tax assets: | ||||||||||
Stock compensation expense | $ | 9,652 | $ | 8,865 | ||||||
Long-term accrued expenses | 3,811 | 3,067 | ||||||||
Net operating loss and charitable contribution carryovers | 24,517 | 23,255 | ||||||||
Intangible assets | 895 | - | ||||||||
Property and equipment | 8,527 | 8,994 | ||||||||
Future uncertain tax position offset | 1,804 | 3,780 | ||||||||
Unrealized loss on foreign currency | 639 | 921 | ||||||||
Foreign tax credit | 8,524 | 5,392 | ||||||||
Other | 1,755 | 1,767 | ||||||||
Valuation allowance | -41,745 | -22,406 | ||||||||
Total non-current deferred tax assets | $ | 18,379 | $ | 33,635 | ||||||
Non-current deferred tax liabilities: | ||||||||||
Intangible assets | $ | - | $ | -779 | ||||||
Total non-current deferred tax liabilities | $ | - | $ | -779 | ||||||
Unrecognized Tax Benefits Reconciliation | ' | |||||||||
($ thousands) | 2013 | 2012 | 2011 | |||||||
Unrecognized tax benefit—January 1 | $ | 31,900 | $ | 44,537 | $ | 33,042 | ||||
Gross increases—tax positions in prior period | 572 | - | 8,332 | |||||||
Gross decreases—tax positions in prior period | -2,086 | -425 | - | |||||||
Gross increases—tax positions in current period | 3,743 | 4,310 | 4,689 | |||||||
Settlements | -2,291 | -16,260 | -427 | |||||||
Lapse of statute of limitations | -222 | -262 | -1,099 | |||||||
Unrecognized tax benefit—December 31 | $ | 31,616 | $ | 31,900 | $ | 44,537 | ||||
Income Tax Examinations | ' | |||||||||
Netherlands | 2007 | to | 2013 | |||||||
Canada | 2007 | to | 2013 | |||||||
Japan | 2007 | to | 2013 | |||||||
China | 2007 | to | 2013 | |||||||
Singapore | 2009 | to | 2013 | |||||||
United States | 2010 | to | 2013 | |||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Earnings (Loss) Per Share [Abstract] | ' | |||||||||
Earnings Per Share Summary | ' | |||||||||
Year Ended December 31, | ||||||||||
($ thousands, except share and per share data) | 2013 | 2012 | 2011 | |||||||
Numerator | ||||||||||
Net income attributable to common stockholders | $ | 10,420 | $ | 131,343 | $ | 112,788 | ||||
Less: income allocated to participating securities | -36 | -645 | -1,014 | |||||||
Net income attributable to common stockholders - basic and diluted | $ | 10,384 | $ | 130,698 | $ | 111,774 | ||||
Denominator | ||||||||||
Weighted average common shares outstanding - basic | 87,988,798 | 89,571,105 | 88,317,898 | |||||||
Plus: dilutive effect of stock options and unvested restricted stock units | 1,100,675 | 1,017,311 | 1,663,484 | |||||||
Weighted average common shares outstanding - diluted | 89,089,473 | 90,588,416 | 89,981,382 | |||||||
Net income attributable per common share: | ||||||||||
Basic | $ | 0.12 | $ | 1.46 | $ | 1.27 | ||||
Diluted | $ | 0.12 | $ | 1.44 | $ | 1.24 | ||||
Commitments_Contingencies_Tabl
Commitments & Contingencies (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Commitments And Contingencies [Abstract] | ' | |||||||||
Future minimum annual rental commitments under non-cancelable operating leases | ' | |||||||||
Fiscal years ending December 31, | ||||||||||
2014 | $ | 83,831 | ||||||||
2015 | 67,722 | |||||||||
2016 | 51,939 | |||||||||
2017 | 40,090 | |||||||||
2018 | 32,222 | |||||||||
Thereafter | 136,630 | |||||||||
Total minimum lease payments (1) | $ | 412,434 | ||||||||
Schedule of rent expense | ' | |||||||||
Fiscal years ending December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Minimum rentals (1) | $ | 101,721 | $ | 84,671 | $ | 68,675 | ||||
Contingent rentals | 18,178 | 16,519 | 13,639 | |||||||
Less: Sublease rentals | -646 | -619 | -573 | |||||||
Total rent expense | $ | 119,253 | $ | 100,571 | $ | 81,741 | ||||
Operating_Segments_and_Geograp1
Operating Segments and Geographic Information (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Operating Segments And Geographic Information [Abstract] | ' | |||||||||
Schedule of Segment Income Statement | ' | |||||||||
Year Ended December 31, | ||||||||||
($ thousands) | 2013 | 2012 | 2011 | |||||||
Revenues: | ||||||||||
Americas | $ | 498,552 | $ | 495,852 | $ | 448,077 | ||||
Asia Pacific | 342,752 | 292,846 | 226,961 | |||||||
Japan | 134,863 | 164,565 | 154,805 | |||||||
Europe | 216,259 | 169,464 | 170,869 | |||||||
Total segment revenues | 1,192,426 | 1,122,727 | 1,000,712 | |||||||
Other businesses | 254 | 574 | 191 | |||||||
Total consolidated revenues | $ | 1,192,680 | $ | 1,123,301 | $ | 1,000,903 | ||||
Operating income: | ||||||||||
Americas | $ | 61,894 | -1 | $ | 85,538 | -1 | $ | 70,532 | ||
Asia Pacific | 80,693 | -2 | 74,535 | 52,872 | ||||||
Japan | 37,560 | -3 | 66,293 | 71,046 | ||||||
Europe | 16,192 | 21,678 | 37,106 | |||||||
Total segment operating income | 196,339 | 248,044 | 231,556 | |||||||
Reconciliation of total segment operating income to income before income taxes: | ||||||||||
Other businesses | -20,811 | -10,805 | -14,128 | |||||||
Intersegment eliminations | 61 | 60 | 66 | |||||||
Unallocated corporate and other (4) | -112,494 | -91,125 | -86,415 | |||||||
Total consolidated operating income | 63,095 | 146,174 | 131,079 | |||||||
Foreign currency transaction (gains) losses, net | 4,678 | 2,500 | -4,886 | |||||||
Interest income | -2,432 | -1,697 | -957 | |||||||
Interest expense | 1,016 | 837 | 853 | |||||||
Other income, net | -126 | -1,014 | -621 | |||||||
Income before income taxes | $ | 59,959 | $ | 145,548 | $ | 136,690 | ||||
Depreciation and amortization: | ||||||||||
Americas | $ | 10,384 | $ | 9,849 | $ | 9,203 | ||||
Asia Pacific | 5,032 | 4,869 | 3,764 | |||||||
Japan | 1,454 | 2,053 | 2,320 | |||||||
Europe | 5,108 | 3,116 | 2,584 | |||||||
Total segment depreciation and amortization | 21,978 | 19,887 | 17,871 | |||||||
Other businesses | 8,002 | 7,003 | 11,657 | |||||||
Unallocated corporate and other (4) | 11,526 | 9,804 | 7,735 | |||||||
Total consolidated depreciation and amortization | $ | 41,506 | $ | 36,694 | $ | 37,263 | ||||
Schedule of Segment Balance Sheet | ' | |||||||||
December 31, | December 31, | |||||||||
($ thousands) | 2013 | 2012 | ||||||||
Assets: | ||||||||||
Americas | $ | 139,855 | $ | 143,236 | ||||||
Asia Pacific | 177,343 | 170,426 | ||||||||
Japan | 51,155 | 111,785 | ||||||||
Europe | 137,701 | 85,756 | ||||||||
Total segment current assets | 506,054 | 511,203 | ||||||||
Other businesses | 14,093 | 14,489 | ||||||||
Unallocated corporate and other (1) | 63,743 | 25,738 | ||||||||
Deferred tax assets, net | 4,440 | 6,284 | ||||||||
Income tax receivable | 10,630 | 5,613 | ||||||||
Other receivables | 11,942 | 24,821 | ||||||||
Prepaid expenses and other current assets | 29,175 | 24,967 | ||||||||
Total current assets | 640,077 | 613,115 | ||||||||
Property and equipment, net | 86,971 | 82,241 | ||||||||
Intangible assets, net | 74,822 | 59,931 | ||||||||
Deferred tax assets, net | 19,628 | 34,112 | ||||||||
Other assets | 53,661 | 40,239 | ||||||||
Total consolidated assets | $ | 875,159 | $ | 829,638 | ||||||
Schedule of Geographical Revenue | ' | |||||||||
Year Ended December 31, | ||||||||||
($ thousands) | 2013 | 2012 | 2011 | |||||||
Product: | ||||||||||
Footwear | $ | 1,155,377 | $ | 1,076,210 | $ | 956,816 | ||||
Other | 37,303 | 47,091 | 44,087 | |||||||
Total revenues | $ | 1,192,680 | $ | 1,123,301 | $ | 1,000,903 | ||||
Location: | ||||||||||
United States | $ | 401,948 | $ | 396,121 | $ | 355,560 | ||||
International | 790,732 | 727,180 | 645,343 | |||||||
Total revenues | $ | 1,192,680 | $ | 1,123,301 | $ | 1,000,903 | ||||
Foreign country revenues in excess of 10% of total revenues: | ||||||||||
Japan | $ | 134,863 | $ | 164,565 | $ | 154,805 | ||||
Schedule of Geographical Long-Lived Assets | ' | |||||||||
December 31, | ||||||||||
($ thousands) | 2013 | 2012 | ||||||||
Location: | ||||||||||
United States | $ | 56,262 | $ | 47,587 | ||||||
International | 30,709 | 34,654 | ||||||||
Total long-lived assets(1) | $ | 86,971 | $ | 82,241 | ||||||
Unaudited_Quarterly_Consolidat1
Unaudited Quarterly Consolidated Financial Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Quarterly Consolidated Financial Information [Abstract] | ' | ||||||||||||
Schedule of Unaudited Quarterly Consolidated Financial Information | ' | ||||||||||||
2013 | |||||||||||||
($ thousands, except per share data) | Quarter Ended March 31 | Quarter Ended June 30 | Quarter Ended September 30 | Quarter Ended December 31 | |||||||||
Revenues | $ | 311,656 | $ | 363,827 | $ | 288,524 | $ | 228,673 | |||||
Gross profit | 165,849 | 200,867 | 153,581 | 102,901 | |||||||||
Asset impairment charges | - | 202 | - | 10,747 | |||||||||
Income (loss) from operations | 37,650 | 50,419 | 17,907 | -42,881 | |||||||||
Net income (loss) | $ | 28,961 | $ | 35,356 | $ | 13,036 | $ | -66,933 | |||||
Basic income (loss) per common share | $ | 0.33 | $ | 0.40 | $ | 0.15 | $ | -0.76 | |||||
Diluted income (loss) per common share | $ | 0.33 | $ | 0.40 | $ | 0.15 | $ | -0.76 | |||||
2012 | |||||||||||||
($ thousands, except per share data) | Quarter Ended March 31 | Quarter Ended June 30 | Quarter Ended September 30 | Quarter Ended December 31 | |||||||||
Revenues | $ | 271,798 | $ | 330,942 | $ | 295,569 | $ | 224,992 | |||||
Gross profit | 144,799 | 196,085 | 160,743 | 106,350 | |||||||||
Asset impairment charges | 713 | 106 | - | 591 | |||||||||
Income (loss) from operations | 39,796 | 71,261 | 40,014 | -4,897 | |||||||||
Net income (loss) | $ | 28,346 | $ | 61,524 | $ | 45,080 | $ | -3,607 | |||||
Basic income (loss) per common share | $ | 0.32 | $ | 0.68 | $ | 0.50 | $ | -0.04 | |||||
Diluted income (loss) per common share | $ | 0.31 | $ | 0.68 | $ | 0.49 | $ | -0.04 | |||||
During the three months ended December 31, 2013, we recorded the following charges that affect the comparability of information between periods: | |||||||||||||
· | Tax expenses of $26.8 million related to our cash repatriation activities as well as a valuation allowance adjustment. See Note 11 – Income Taxes for further discussions regarding these charges. | ||||||||||||
· | Retail asset impairment charges of $10.4 million for certain underperforming locations in our Americas, Asia Pacific and Europe segments as well as $0.3 million in goodwill impairment charges. See Note 3 – Property & Equipment and Note 4 – Goodwill & Intangible Assets for further discussions regarding these charges. | ||||||||||||
· | Legal contingency accruals of $5.7 million recorded in selling, general and administrative expenses. See Note 15 – Legal Proceedings for further discussions regarding these charges. | ||||||||||||
· | Inventory write-down charges of $3.4 million related to obsolete inventory including raw materials, footwear and accessories. See Note 2 – Inventories for further discussions regarding these charges. | ||||||||||||
Professional services fees of $1.1 million associated with our recent investment agreement with Blackstone and cash repatriation activities. See Note 17 – Subsequent Events for further discussions regarding these charges. | |||||||||||||
Organization_Summary_of_Signif2
Organization & Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Organization & Summary of Significant Accounting Policies [Abstract] | ' | ' | ' | ' |
VIE assets - Crocs Gulf | $2,400,000 | $2,500,000 | ' | ' |
VIE liabilities - Crocs Gulf | 200,000 | 200,000 | ' | ' |
Cash and cash equivalents held internationally | 252,300,000 | ' | ' | ' |
Cash and cash equivalents | 317,144,000 | 294,348,000 | 257,587,000 | 145,583,000 |
Cash and cash equivalents restricted internationally | 15,300,000 | ' | ' | ' |
Employer contribution percentage to defined contribution plan | 4.00% | ' | ' | ' |
Defined contribution plan expensed for employee match contributions | 6,800,000 | 5,800,000 | 4,600,000 | ' |
Advertising, marketing, and promotional expenses | 47,600,000 | 39,800,000 | 39,800,000 | ' |
Research and development expenses | $15,400,000 | $12,000,000 | $10,800,000 | ' |
Intangible_Assets_Useful_Lives
Intangible Assets Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Patents [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '10 years |
Unpatented Technology [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '5 years |
Capitalized Software [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Finite-Lived Intangible Asset, Useful Life | '7 years |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Inventories [Abstract] | ' | ' |
Finished goods | $154,272,000 | $155,833,000 |
Work-in-progress | 685,000 | 911,000 |
Raw materials | 7,384,000 | 8,060,000 |
Inventories | $162,341,000 | $164,804,000 |
Inventory_Narrative_Details
Inventory Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Inventories [Abstract] | ' | ' | ' | ' |
Inventory write-down charges | $3,400,000 | $3,419,000 | $0 | $0 |
Charitable contributions | ' | 600,000 | 1,700,000 | 2,000,000 |
Gain on charitable contributions | ' | 100,000 | 600,000 | 700,000 |
Net reduction of inventory after charitable contributions | $500,000 | $500,000 | $1,100,000 | $1,300,000 |
Summary_of_Property_Equipment_
Summary of Property & Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Property And Equipment [Abstract] | ' | ' | ||
Machinery and equipment | $52,003,000 | $68,713,000 | ||
Leashold improvements | 93,235,000 | 88,653,000 | ||
Furniture, fixtures, and other | 23,653,000 | 20,827,000 | ||
Construction-in-progress | 16,231,000 | 8,766,000 | ||
Property and equipment, gross | 185,122,000 | [1] | 186,959,000 | [1] |
Less: Accumulated depreciation | -98,151,000 | [2] | -104,718,000 | [2] |
Property and equipment, net | 86,971,000 | 82,241,000 | ||
Gross equipment held under capital leases | 100,000 | 100,000 | ||
Depreciation for equipment held under capital leases | $100,000 | $100,000 | ||
[1] | Includes $0.1 million of certain equipment held under capital leases and classified as equipment as of each of December 31, 2013 and 2012. | |||
[2] | Includes $0.1 million of accumulated depreciation related to certain equipment held under capital leases, as of each of December 31, 2013 and 2012, which are depreciated using the straight-line method over the lease term. |
Property_Equipment_Depreciatio
Property & Equipment Depreciation Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property And Equipment [Abstract] | ' | ' | ' |
Depreciation Expense | $24.30 | $23.10 | $27.50 |
Depreciation Expense Recorded in Cost of Sales | 2.9 | 4.6 | 11.5 |
Disposal of fully depreciated assets | $19.50 | ' | ' |
Asset_Impairment_Charges_Narra
Asset Impairment Charges Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property Plant And Equipment Impairment Or Disposal [Abstract] | ' | ' | ' | ' |
Asset impairment charges | $10.40 | $10.60 | $1.40 | $0.50 |
Asset_Impairment_Charges_Detai
Asset Impairment Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
store | store | |||
Asset impairment charges | $10,400,000 | $10,600,000 | $1,400,000 | $500,000 |
Number of Retail Stores with Asset Impairment Charges | ' | 60 | 4 | ' |
Americas [Member] | ' | ' | ' | ' |
Asset impairment charges | ' | 3,861,000 | 1,410,000 | ' |
Number of Retail Stores with Asset Impairment Charges | ' | 23 | 4 | ' |
Asia Pacific [Member] | ' | ' | ' | ' |
Asset impairment charges | ' | 185,000 | ' | ' |
Number of Retail Stores with Asset Impairment Charges | ' | 2 | ' | ' |
Europe [Member] | ' | ' | ' | ' |
Asset impairment charges | ' | $6,565,000 | ' | ' |
Number of Retail Stores with Asset Impairment Charges | ' | 35 | ' | ' |
Summary_Of_Goodwill_Intangible
Summary Of Goodwill & Intangible Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amount, Finite-Lived Intangible Assets | $137,850,000 | $106,258,000 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -65,633,000 | -49,169,000 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | 72,217,000 | 57,089,000 | ||
Indefinite lived intangible assets | 97,000 | 113,000 | ||
Goodwill | 2,508,000 | 2,729,000 | ||
Gross Carrying Amount, Total Intangible Assets | 140,455,000 | 109,100,000 | ||
Net Carrying Amount, Total Intangible Assets | 74,822,000 | 59,931,000 | ||
Gross Capitalized Software Held Under Capital Lease | 4,100,000 | 4,100,000 | ||
Amortization of Capitalized Software Held Under Capital Lease | 1,900,000 | 1,300,000 | ||
Capitalized Software [Member] | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amount, Finite-Lived Intangible Assets | 118,940,000 | [1] | 87,426,000 | [1] |
Accumulated Amortization, Finite-Lived Intangible Assets | -49,665,000 | [2] | -33,933,000 | [2] |
Net Carrying Amount, Finite-Lived Intangible Assets | 69,275,000 | 53,493,000 | ||
Customer Relationships [Member] | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amount, Finite-Lived Intangible Assets | 6,878,000 | 7,145,000 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -6,439,000 | -6,222,000 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | 439,000 | 923,000 | ||
Patents, copyrights and trademarks [Member] | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amount, Finite-Lived Intangible Assets | 6,501,000 | 6,161,000 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -4,272,000 | -3,522,000 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | 2,229,000 | 2,639,000 | ||
Core technology [Member] | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amount, Finite-Lived Intangible Assets | 4,548,000 | 4,856,000 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -4,548,000 | -4,856,000 | ||
Other [Member] | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amount, Finite-Lived Intangible Assets | 983,000 | 670,000 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -709,000 | -636,000 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | $274,000 | $34,000 | ||
[1] | Includes $4.1 million of software held under a capital lease classified as capitalized software as of each of December 31, 2013 and 2012. | |||
[2] | Includes $1.9B million and $1.3B million of accumulated amortization of software held under a capital lease as of December 31, 2013 and 2012, respectively, which is amortized using the straight-line method over the useful life. |
Intangible_Assets_Amortization
Intangible Assets Amortization Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill & Intangible Assets [Abstract] | ' | ' | ' |
Amortization Expense | $17.20 | $13.60 | $9.80 |
Amortization Expense Recorded in Cost of Sales | $6 | $4.30 | $2.90 |
Intangible_Assets_Future_Amort
Intangible Assets Future Amortization Schedule (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill & Intangible Assets [Abstract] | ' | ' |
2014 | $16,721 | ' |
2015 | 13,729 | ' |
2016 | 13,935 | ' |
2017 | 14,706 | ' |
2018 | 7,198 | ' |
Thereafter | 5,928 | ' |
Net Carrying Amount, Finite-Lived Intangible Assets | $72,217 | $57,089 |
Goodwill_Impairment_Details
Goodwill Impairment (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 |
Goodwill, Impaired [Abstract] | ' | ' |
Goodwill impairment charges | $0.30 | $0.30 |
Summary_of_Accrued_Expenses_an
Summary of Accrued Expenses and Other Current Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accrued Expenses And Other Current Liabilities [Abstract] | ' | ' | ||
Accrued compensation and benefits | $26,903,000 | $19,714,000 | ||
Professional services | 14,128,000 | 10,342,000 | ||
Fulfillment, freight, and duties | 12,565,000 | 8,621,000 | ||
Accrued rent and occupancy | 12,198,000 | 10,226,000 | ||
Sales/use and VAT tax payable | 9,142,000 | 12,444,000 | ||
Accrued legal | 8,722,000 | 3,246,000 | ||
Customer deposits | 6,940,000 | 2,593,000 | ||
Entrusted loan payable | ' | 7,943,000 | [1] | |
Other | 6,513,000 | [2] | 6,242,000 | [2] |
Total accrued expenses and other current liabilities | $97,111,000 | $81,371,000 | ||
[1] | A corresponding entrusted loan receivable of $7.9 million is recorded in bOther receivablesb as of December 31, 2012 as amounts are related to our subsidiaries in China. The entrusted loan was paid in full during the second quarter of 2013 and as such, the entrusted loan payable, and corresponding receivable, were removed from the consolidated balance sheets as of December 31, 2013. | |||
[2] | The amounts in Other consist of various accrued expenses and no individual item accounted for more than 5% of the total balance at December 31, 2013 or December 31, 2012. |
Summary_of_Accrued_Expenses_an1
Summary of Accrued Expenses and Other Current Liabilities Footnote (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued Expenses And Other Current Liabilities [Abstract] | ' | ' |
Entrusted Loan Receivable | ' | $7,900 |
Number of individual accrual items accounting for more than 5% of total balance | '0 | '0 |
Percent Of Decision Point On Reporting Individual Items In Accrued Expenses | 5.00% | 5.00% |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Asset Retirement Obligation [Abstract] | ' | ' |
Asset Retirement Obligation Liability | $2,000 | $2,400 |
Summary_of_Fair_Value_Measurem
Summary of Fair Value Measurements on a Recurring Basis (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Cash equivalents | $37,870 | $14,800 |
Derivative Assets | ' | ' |
Foreign currency contracts assets | 13,501 | 5,548 |
Derivative Liabilities | ' | ' |
Foreign currency contracts liabilities | 984 | 295 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Cash equivalents | 37,870 | 14,800 |
Level 2 [Member] | ' | ' |
Derivative Assets | ' | ' |
Foreign currency contracts assets | 13,501 | 5,548 |
Derivative Liabilities | ' | ' |
Foreign currency contracts liabilities | $984 | $295 |
Summary_of_Derivative_Financia
Summary of Derivative Financial Instruments Notional Amounts on Outstanding Positions (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | $220,494 | $143,116 |
Latest maturity date | 1-Dec-15 | 1-Dec-15 |
Japanese Yen [Member] | ' | ' |
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | 68,707 | 112,500 |
Euro [Member] | ' | ' |
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | 38,577 | 5,159 |
Singapore Dollar [Member] | ' | ' |
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | 28,225 | ' |
Mexican Peso [Member] | ' | ' |
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | 18,350 | 11,400 |
Russian Ruble [Member] | ' | ' |
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | 17,588 | ' |
Pound Sterling [Member] | ' | ' |
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | 15,487 | 8,742 |
South Korean Won [Member] | ' | ' |
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | 12,100 | ' |
Australian Dollar [Member] | ' | ' |
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | 4,941 | 4,178 |
New Taiwan Dollar [Member] | ' | ' |
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | 3,463 | ' |
Canadian Dollar [Member] | ' | ' |
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | 3,428 | ' |
South African Rand [Member] | ' | ' |
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | 3,076 | ' |
Indian Rupee [Member] | ' | ' |
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | 2,150 | ' |
Hong Kong Dollar [Member] | ' | ' |
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | 1,844 | ' |
Swedish Krona [Member] | ' | ' |
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | 1,615 | ' |
New Zealand Dollar [Member] | ' | ' |
Foreign currency exchange forward contracts by currency: | ' | ' |
Total notional value, net | $943 | $1,137 |
Summary_of_GainLoss_on_Derivat
Summary of Gain/Loss on Derivative Instruments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Derivative Financial Instruments [Abstract] | ' | ' | ' |
Foreign currency exchange forwards | ($13,002,000) | ($7,200,000) | $540,000 |
Foreign currency transaction gains/losses, gross | 17,700,000 | 9,700,000 | 5,400,000 |
Foreign currency transaction (gains) losses, net | $4,678,000 | $2,500,000 | ($4,886,000) |
Revolving_Credit_Facility_Deta
Revolving Credit Facility (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Line of Credit Facility [Abstract] | ' | ' | ' |
Current borrowing capacity | $100,000,000 | ' | ' |
Maximum borrowing capacity | 125,000,000 | ' | ' |
Maximum letter of credit borrowing capacity | 20,000,000 | ' | ' |
Amount outstanding | 0 | 0 | ' |
Outstanding letters of credit | 7,200,000 | 7,200,000 | ' |
Deferred financing costs | $100,000 | $200,000 | $400,000 |
Long_Term_Bank_Borrowings_Deta
Long Term Bank Borrowings (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Long-term Debt, Current and Noncurrent [Abstract] | ' | ' |
Long-term debt | $16,778 | $6,600 |
Current maturities of long-term debt | 5,100 | 2,000 |
Long-term debt minimum interest rate range | 2.45% | ' |
Long-term debt maximum interest rate range | 2.79% | ' |
Long-term debt earliest maturity date | 30-Sep-16 | ' |
Long-term debt latest maturity date | 30-Sep-17 | ' |
Interest costs capitalized | $300 | $0 |
Future_Minimum_Annual_Longterm
Future Minimum Annual Long-term Debt Obligations (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ' | ' |
FY 2014 | $5,135 | ' |
FY 2015 | 5,271 | ' |
FY 2016 | 4,765 | ' |
FY 2017 | 1,607 | ' |
Long-term debt | $16,778 | $6,600 |
Description_of_Equity_Incentiv
Description of Equity Incentive Plans (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 15, 2005 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 28, 2011 | Jul. 09, 2007 |
In Millions, unless otherwise specified | Equity Incentive Plan 2005 [Member] | Equity Incentive Plan 2005 [Member] | Equity Incentive Plan 2005 [Member] | Equity Incentive Plan 2007 [Member] | Equity Incentive Plan 2007 [Member] | Equity Incentive Plan 2007 [Member] | Equity Incentive Plan 2007 [Member] |
Equity Incentive Plans [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Awards authorized and reserved under plan | ' | ' | 14 | ' | ' | 15.3 | 9 |
Stock options outstanding under plan | 0.7 | 0.9 | ' | ' | ' | ' | ' |
Stock options, RSAs, and RSUs outstanding under plan | ' | ' | ' | 3.6 | 3.5 | ' | ' |
Shares available for future issuance under plan | ' | ' | ' | 4.4 | ' | ' | ' |
Stock_Option_Activity_Details
Stock Option Activity (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Share-based Arrangements with Employees and Nonemployees [Abstract] | ' | ' | ' | ' |
Shares outstanding at beginning of period | 2,621,686 | 3,331,031 | 5,007,337 | ' |
Shares granted | 177,000 | 208,400 | 468,000 | ' |
Shares exercised | -333,395 | -613,691 | -1,738,741 | ' |
Shares forfeited or expired | -360,139 | -304,054 | -405,565 | ' |
Shares outstanding at end of period | 2,105,152 | 2,621,686 | 3,331,031 | 5,007,337 |
Shares exercisable at December 31, 2013 | 1,732,398 | ' | ' | ' |
Shares vested and expected to vest at December 31, 2013 | 2,019,478 | ' | ' | ' |
Weighted average exercise price of options outstanding at beginning of period | $13.03 | $11.91 | $9.10 | ' |
Weighted average exercise price of options granted | $15.62 | $16.84 | $19.81 | ' |
Weighted average exercise price of options exercised | $6.84 | $6.04 | $6.28 | ' |
Weighted average exercise price of options forfeited or expired | $18.18 | $17.55 | $10.46 | ' |
Weighted average exercise price of options outstanding at end of period | $13.34 | $13.03 | $11.91 | $9.10 |
Weighted average exercise price of options exercisable at December 31, 2013 | $12.56 | ' | ' | ' |
Weighted average exercise price of options vested and expected to vest at December 31, 2013 | $13.22 | ' | ' | ' |
Weighted average remaining contractual life (years) outstanding | '4 years 10 months 10 days | '5 years 6 months 18 days | '6 years 4 months 6 days | '6 years 4 months 10 days |
Weighted average remaining contractual life (years) exercisable at December 31, 2013 | '4 years 2 months 16 days | ' | ' | ' |
Weighted average remaining contractual life (years) vested and expected to vest at December 31, 2013 | '4 years 8 months 19 days | ' | ' | ' |
Aggregate intrinsic value outstanding | $10,790 | $11,373 | $18,468 | $47,009 |
Aggregate intrinsic value exercisable at December 31, 2013 | 10,621 | ' | ' | ' |
Aggregate intrinsic value vested and expected to vest at December 31, 2013 | $10,745 | ' | ' | ' |
Schedule_of_Option_Pricing_Mod
Schedule of Option Pricing Model Assumptions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' |
Expected volatility rate minimum | 50.00% | 50.00% | 50.00% |
Expected volatility rate maximum | 64.00% | 70.00% | 60.00% |
Dividend yield | $0 | $0 | $0 |
Risk-free interest rate minimum | 0.81% | 0.62% | 0.87% |
Risk-free interest rate maximum | 1.62% | 1.20% | 2.31% |
Expected life minimum | ' | '4 years | '4 years 4 months 6 days |
Expected life maximum | '4 years | '4 years 3 months 7 days | '4 years 10 months 21 days |
Stock_Option_Activity_Narrativ
Stock Option Activity Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Tax benefit from the exercise of stock options | $0 | ' | ' |
Stock Options [Member] | ' | ' | ' |
Weighted average fair value of options granted per share | $7.33 | $7.76 | $9.19 |
Aggregate intrinsic value of options exercised | 2,800,000 | 6,900,000 | 27,300,000 |
Cash received from the exercise of stock options | 2,300,000 | 3,700,000 | ' |
Grant date fair value of options vested | 1,200,000 | 2,800,000 | 2,700,000 |
Unrecognized share-based compensation expense related to unvested options | $2,600,000 | ' | ' |
Weighted Average Period of Non-Vested Stock Awards | '2 years 3 months 18 days | ' | ' |
Restricted_Stock_Awards_and_Re
Restricted Stock Awards and Restricted Stock Units Description of Vesting (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' |
Share grants approved in period | 900 | 400 | 400 |
Time-Based Restricted Stock Units [Member] | ' | ' | ' |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' |
Vesting terms of RSUs | 'Time-based RSUs are typically granted on an annual basis to certain non-executive employees and vest in three annual installments on a straight-line basis beginning one year after the grant date. | ' | ' |
Share grants approved in period | 400 | 400 | 200 |
Performance-Based Restricted Stock Units [Member] | ' | ' | ' |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' |
Vesting terms of RSUs | 'Time Vested RSUs(50% of Award)Performance Vested RSUs (50% of Award)Vest in 3 annual installments beginning one year after the date of grantPerformanceB GoalPotentialB AwardFurther Time VestingAchievement of at least 70% of a two-year cumulative earnings per share performance goalExecutive may earn from 50% to 200% of the target number of RSUs based on the level of achievement of the performance goalEarned RSUs vest 50% upon satisfaction of performance goal and 50% one year later | ' | ' |
Schedule_Of_Restricted_Stock_A
Schedule Of Restricted Stock Award and Restricted Stock Unit Activity (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Restricted Stock Awards [Member] | ' | ' | ' | |||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' | |||
Nonvested beginning balance | 355,509 | 571,175 | 953,423 | |||
Granted | 21,590 | 18,813 | 118,520 | |||
Vested | -89,006 | [1] | -191,779 | [1] | -352,150 | [1] |
Forfeited or expired | -77,603 | -42,700 | -148,618 | |||
Nonvested ending balance | 210,490 | 355,509 | 571,175 | |||
Weighted average grant date fair value beginning balance | $13.37 | $11.87 | $8.54 | |||
Weighted average grant date fair value of granted | $16.56 | $16.48 | $19.10 | |||
Weighted average grant date fair value of vested | $14.81 | $9.22 | $6.19 | |||
Weighted average grant date fair value of forfeited or expired | $12.46 | $13.25 | $9.67 | |||
Weighted average grant date fair value ending balance | $13.43 | $13.37 | $11.87 | |||
Restricted Stock Units [Member] | ' | ' | ' | |||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' | |||
Nonvested beginning balance | 1,414,661 | 711,980 | 116,400 | |||
Granted | 1,637,114 | 1,010,559 | 651,791 | |||
Vested | -329,542 | [1] | -133,555 | [1] | -21,150 | [1] |
Forfeited or expired | -756,566 | -174,323 | -35,061 | |||
Nonvested ending balance | 1,965,667 | 1,414,661 | 711,980 | |||
Weighted average grant date fair value beginning balance | $20.61 | $23.43 | ' | |||
Weighted average grant date fair value of granted | $14.96 | $18.92 | $24.89 | |||
Weighted average grant date fair value of vested | $21.52 | $23.25 | $17.25 | |||
Weighted average grant date fair value of forfeited or expired | $14.71 | $20.64 | $15.41 | |||
Weighted average grant date fair value ending balance | $16.50 | $20.61 | $23.43 | |||
[1] | The RSAs vested during the years ended December 31, 2013, 2012 and 2011 consisted entirely of time-based awards. The RSUs vested during the years ended December 31, 2013 consisted of 52,288 performance-based awards and 277,254 time-based awards. The RSUs vested during the years ended December 31, 2012 and 2011 consisted entirely of time-based awards. |
Recovered_Sheet2
Schedule of Restricted Stock Award and Restricted Stock Unit Activity Footnote (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Time-Based Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vested | 277,254 |
Performance-Based Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vested | 52,288 |
Restricted_Stock_Awards_and_Re1
Restricted Stock Awards and Restricted Stock Units Activity Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock Awards [Member] | ' | ' | ' |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' |
Grant date fair value of vested awards | $1,300,000 | $1,800,000 | $2,200,000 |
Unrecognized share-based compensation expense related to unvested awards | 1,000,000 | ' | ' |
Weighted Average Period of Non-Vested Stock Awards | '6 months 7 days | ' | ' |
Restricted Stock Units [Member] | ' | ' | ' |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' |
Grant date fair value of vested awards | 7,100,000 | 3,100,000 | 400,000 |
Unrecognized share-based compensation expense related to unvested awards | 15,600,000 | ' | ' |
Weighted Average Period of Non-Vested Stock Awards | '1 year 9 months | ' | ' |
Time-Based Restricted Stock Awards [Member] | ' | ' | ' |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' |
Unrecognized share-based compensation expense related to unvested awards | 500,000 | ' | ' |
Weighted Average Period of Non-Vested Stock Awards | '7 months 21 days | ' | ' |
Perfromance-Based Restricted Stock Awards [Member] | ' | ' | ' |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' |
Unrecognized share-based compensation expense related to unvested awards | 500,000 | ' | ' |
Weighted Average Period of Non-Vested Stock Awards | '5 months 12 days | ' | ' |
Time-Based Restricted Stock Units [Member] | ' | ' | ' |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' |
Unrecognized share-based compensation expense related to unvested awards | 9,800,000 | ' | ' |
Weighted Average Period of Non-Vested Stock Awards | '1 year 8 months 23 days | ' | ' |
Performance-Based Restricted Stock Units [Member] | ' | ' | ' |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' |
Unrecognized share-based compensation expense related to unvested awards | $5,800,000 | ' | ' |
Weighted Average Period of Non-Vested Stock Awards | '1 year 9 months 7 days | ' | ' |
Separation_Agreements_Details
Separation Agreements (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | ' |
Separation payment first installment | $1,100,000 |
Separation payment second installment | 1,000,000 |
Separation payment total | 2,100,000 |
Awards expected to vest related to separation agreement | $58,840 |
Forfeited awards due to separation agreement | 388,745 |
ShareBased_Compensation_Expens
Share-Based Compensation Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Arrangements with Employees and Nonemployees [Abstract] | ' | ' | ' |
Share-based compensation expense | $12,500 | $11,300 | $8,600 |
Capitalized share-based compensation | $700 | $0 | $0 |
Allowances_Details
Allowances (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts [Member] | ' | ' | ' |
Allowances For Doubtful Accounts And Sales Returns [Line Items] | ' | ' | ' |
Beginning Balance | $3,441 | $3,680 | $4,642 |
Charged to costs and expenses | 1,930 | 2,166 | -383 |
Reversals and write-offs | -1,715 | -2,405 | -579 |
Ending Balance | 3,656 | 3,441 | 3,680 |
Allowance for Sales Returns [Member] | ' | ' | ' |
Allowances For Doubtful Accounts And Sales Returns [Line Items] | ' | ' | ' |
Beginning Balance | 9,874 | 11,828 | 5,607 |
Charged to costs and expenses | 13,888 | 5,111 | 9,965 |
Reversals and write-offs | -16,905 | -7,065 | -3,744 |
Ending Balance | $6,857 | $9,874 | $11,828 |
Income_Tax_Expense_Details
Income Tax Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Abstract] | ' | ' | ' |
U.S. | ($7,818) | $12,060 | ($12,057) |
Foreign | 67,777 | 133,488 | 148,747 |
Income before income taxes | 59,959 | 145,548 | 136,690 |
U.S. federal current | 3,311 | -6,364 | 4,798 |
U.S. state current | 355 | 597 | 165 |
Foreign current | 22,337 | 22,953 | 19,758 |
Total current income taxes | 26,003 | 17,186 | 24,721 |
U.S. federal deferred | 14,968 | -3,981 | -2,338 |
U.S. state deferred | 3,639 | -4,016 | ' |
Foreign deferred | 4,929 | 5,016 | 1,519 |
Total deferred income taxes | 23,536 | -2,981 | -819 |
Income tax expense | $49,539 | $14,205 | $23,902 |
Effective_Tax_Rate_Reconciliat
Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Effective Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | ' | ' | ' |
Federal income tax rate | 35.00% | 35.00% | 35.00% |
State income tax rate, net of federal benefit | -0.60% | -2.70% | 0.30% |
Foreign income tax rate differential | 47.90% | 25.00% | 30.30% |
Permanent items | 3.40% | 4.60% | 3.20% |
Change in valuation allowance | 35.60% | -8.40% | 3.60% |
U.S. tax on foreign earnings | 38.20% | 2.00% | ' |
Uncertain tax positions | 6.80% | 3.50% | 8.70% |
Audit settlements | 5.10% | ' | ' |
Non-deductible write-off of intercompany debt | 1.90% | ' | ' |
Non-deductible impairment | 3.50% | ' | ' |
Other | 1.60% | 0.80% | -3.00% |
Effective income tax rate | 82.60% | 9.80% | 17.50% |
Deferred_Income_Tax_Assets_and
Deferred Income Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current deferred tax assets: | ' | ' |
Accrued expenses | $13,108 | $12,934 |
Unrealized loss on foreign currency current | 10 | 2,026 |
Other current | 1,364 | 8 |
Valuaton allowance | -5,139 | -3,492 |
Total current deferred tax assets | 9,343 | 11,476 |
Current deferred tax liabilities: | ' | ' |
Deferred tax liability on unremitted earnings of foreign subsidiary | -16,102 | -7,596 |
Total current deferred tax liabilities | -16,102 | -7,596 |
Non-current deferred tax assets: | ' | ' |
Stock compensation expense | 9,652 | 8,865 |
Long-term accrued expesnes | 3,811 | 3,067 |
Net operating loss and charitable contribution carryovers | 24,517 | 23,255 |
Intangible assets | 895 | ' |
Property and equipment | 8,527 | 8,994 |
Future uncertain tax position offset | 1,804 | 3,780 |
Unrealized loss on foreign currency non-current | 639 | 921 |
Foreign tax credit | 8,524 | 5,392 |
Other non-current | 1,755 | 1,767 |
Valuation allowance | -41,745 | -22,406 |
Total non-current deferred tax assets | 18,379 | 33,635 |
Non-current deferred tax liabilities: | ' | ' |
Intangible assets deferred tax assets | ' | 779 |
Total non-current gross deferred tax liabilities | ' | $779 |
Deferred_Income_Tax_Assets_and1
Deferred Income Tax Assets and Liabilities Narrative (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ' | ' |
Deferred tax liability on unremitted earnings of foreign subsidiary | $16,102 | $7,596 |
Unremitted earnings of foreign subsidiaries | 76,600 | ' |
Unremitted Earnings Of Foreign Subsidiaries Related To Non Payment Of Withholding Taxes | 474,200 | ' |
Valuation allowance | 46,900 | ' |
US Federal Net Operating Loss Carryforwards | 1,000 | ' |
US Statutory Net Operating Loss Carryforwards | 96,500 | ' |
Charitable Contribution Carryforwards | 20,400 | ' |
Foreign tax credit carryforwards | 4,000 | ' |
Valuation allowance on operating loss carryforwards | 12,100 | ' |
Foreign Deferred Tax Assets On Foreign Net Operating Loss Carryforwards | 16,000 | ' |
Foreign Net Operating Loss Carryforwards | 50,400 | ' |
Valuation Allowance On Foreign Net Operating Loss Carryforwards | 14,500 | ' |
Net deferred tax assets | 11,600 | ' |
Amount Of Net Deferred Tax Assets Located In Foreign Jurisdictions | 7,600 | ' |
Pre Tax Profit Required To Realize Net Deferred Tax Assets | 40,300 | ' |
Amount of Net Deferred Tax Assets Related To Estimated Liabilities For Uncertain Tax Positions | 1,800 | ' |
Taxable Income Required To Realize Deferred Tax Assets Related To Estimated Liabilities For Uncertain Tax Positions | 6,400 | ' |
Equity Increase If Deferred Tax Assets Are Realized | $11,500 | ' |
Unrecognized_Tax_Benefits_Reco
Unrecognized Tax Benefits Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Unrecognized tax benefit - January 1 | $31,900 | $44,537 | $33,042 |
Gross increases - tax positions in prior period | 572 | ' | 8,332 |
Gross decreases - tax positions in prior period | -2,086 | -425 | ' |
Gross increases - tax positions in current period | 3,743 | 4,310 | 4,689 |
Settlements | -2,291 | -16,260 | -427 |
Lapse of statute of limitations | -222 | -262 | -1,099 |
Unrecognized tax benefit - December 31 | $31,616 | $31,900 | $44,537 |
Unrecognized_Tax_Benefits_Reco1
Unrecognized Tax Benefits Reconciliation Narrative (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' | ' |
Unrecognized tax benefit - December 31 | $31,616 | $31,900 | $44,537 | $33,042 |
Penalties and interest related to income tax examinations | 600 | 600 | 1,000 | ' |
Cumulative accrued balance of penalties and interest related to income tax examinations | 5,000 | 4,400 | 3,900 | ' |
Gross Increase In Tax Positions | 4,300 | ' | ' | ' |
Expected decrease in unrecognized tax beneits in the next twelve months | $11,300 | ' | ' | ' |
Income_Tax_Examination_Periods
Income Tax Examination Periods (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Income Tax Examination [Line Items] | ' |
Income Tax Examination Period Start | '2010 |
Income Tax Examination Period End | '2013 |
Netherlands [Member] | ' |
Income Tax Examination [Line Items] | ' |
Income Tax Examination Period Start | '2007 |
Income Tax Examination Period End | '2013 |
Canada [Member] | ' |
Income Tax Examination [Line Items] | ' |
Income Tax Examination Period Start | '2007 |
Income Tax Examination Period End | '2013 |
Japan [Member] | ' |
Income Tax Examination [Line Items] | ' |
Income Tax Examination Period Start | '2007 |
Income Tax Examination Period End | '2013 |
Singapore [Member] | ' |
Income Tax Examination [Line Items] | ' |
Income Tax Examination Period Start | '2007 |
Income Tax Examination Period End | '2013 |
China [Member] | ' |
Income Tax Examination [Line Items] | ' |
Income Tax Examination Period Start | '2009 |
Income Tax Examination Period End | '2013 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings (Loss) Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ($66,933) | $13,036 | $35,356 | $28,961 | ($3,607) | $45,080 | $61,524 | $28,346 | $10,420 | $131,343 | $112,788 |
Less: income allocated to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | -36 | -645 | -1,014 |
Net income attributable to common stockholders - basic and diluted | ' | ' | ' | ' | ' | ' | ' | ' | $10,384 | $130,698 | $111,774 |
Weighted average common shares outstanding - basic | ' | ' | ' | ' | ' | ' | ' | ' | 87,988,798 | 89,571,105 | 88,317,898 |
Plus: dilutive effect of stock options and unvested restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,675 | 1,017,311 | 1,663,484 |
Weighted average common shares outstanding - diluted | ' | ' | ' | ' | ' | ' | ' | ' | 89,089,473 | 90,588,416 | 89,981,382 |
Basic | ($0.76) | $0.15 | $0.40 | $0.33 | ($0.04) | $0.50 | $0.68 | $0.32 | $0.12 | $1.46 | $1.27 |
Diluted | ($0.76) | $0.15 | $0.40 | $0.33 | ($0.04) | $0.49 | $0.68 | $0.31 | $0.12 | $1.44 | $1.24 |
Anti-dilutive options and RSUs not included in the calculation of diluted income (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 1,400,000 | 1,100,000 |
Stock_Plan_Repurchase_Authoriz
Stock Plan Repurchase Authorizations (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Earnings (Loss) Per Share [Abstract] | ' |
Dollar amount authorized for share repurchase | $350,000 |
Shares Repurchased | 800 |
Weighted Average Price Of Shares Repurchased | $14.99 |
Fair Value Of Shares Repurchased | 12,500 |
Remaining dollar amount authorized for share repurchase | $350,000 |
Future_Minimum_Annual_Rental_C
Future Minimum Annual Rental Commitments Under Non-Cancelable Operating Leases (Details) (USD $) | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | ||
Future Minimum Annual Rental Commitments Under Non-Cancelable Operating Leases [Abstract] | ' | |
2014 Year | $83,831 | |
2015 Year | 67,722 | |
2016 Year | 51,939 | |
2017 Year | 40,090 | |
2018 Year | 32,222 | |
Years Thereafter | 136,630 | |
Total minimum lease payments | 412,434 | [1] |
Future minimum sublease rentals | $400 | |
[1] | Minimum lease payments have not been reduced by minimum sublease rentals of $0.4 million due in the future under non-cancelable subleases. They also do not include contingent rentals which may be paid under certain retail leases on a basis of percentage of sales in excess of stipulated amounts. |
Operating_Lease_Rental_Expense
Operating Lease Rental Expense (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Operating Leases Rent Expense [Abstract] | ' | ' | ' | |||
Rent expense | $101,721 | [1] | $84,671 | [1] | $68,675 | [1] |
Contingent rent expense | 18,178 | 16,519 | 13,639 | |||
Less: Sublease rentals | -646 | -619 | -573 | |||
Total rent expense | $119,253 | $100,571 | $81,741 | |||
[1] | Minimum rentals include all lease payments as well as fixed and variable common area maintenance (bCAMb), parking and storage fees, which were approximately $9.7 million, $8.5 million and $8.6 million during the years ended December 31, 2013, 2012 and 2011, respectively. |
Operating_Lease_Rental_Expense1
Operating Lease Rental Expense Footnote (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Leases Rent Expense [Abstract] | ' | ' | ' |
Common area maintenance, parking and storage fees | $9.70 | $8.50 | $8.60 |
Government_Tax_Audits_Details
Government Tax Audits (Details) (Brazilian Government [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Brazilian Government [Member] | ' |
Net Expense of Tax Examination | $6,100 |
Receivable related to Income Tax Examination | $3,500 |
Purchase_Commitments_Details
Purchase Commitments (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | EUR (€) | USD ($) | |
Commitments And Contingencies [Abstract] | ' | ' | ' |
Purchase commitments with third party manufacturers | $172,300,000 | ' | $152,800,000 |
Purchase commitments of finished goods yet-to-be received | ' | ' | 5,900,000 |
Maximum potential raw materials for purchase under supply agreement | $4,800,000 | € 3,500,000 | ' |
Operating_Segments_and_Geograp2
Operating Segments and Geographic Information General (Details) | 12 Months Ended |
Dec. 31, 2013 | |
segment | |
Operating Segments And Geographic Information [Abstract] | ' |
Number of Reportable Segments | 4 |
Operating_Segments_and_Geograp3
Operating Segments and Geographic Information Income Statement (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues | $228,673 | $288,524 | $363,827 | $311,656 | $224,992 | $295,569 | $330,942 | $271,798 | $1,192,680 | $1,123,301 | $1,000,903 | |||
Income from operations | -42,881 | 17,907 | 50,419 | 37,650 | -4,897 | 40,014 | 71,261 | 39,796 | 63,095 | 146,174 | 131,079 | |||
Foreign currency transaction (gains) losses, net | ' | ' | ' | ' | ' | ' | ' | ' | 4,678 | 2,500 | -4,886 | |||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | -2,432 | -1,697 | -957 | |||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,016 | 837 | 853 | |||
Other income, net | ' | ' | ' | ' | ' | ' | ' | ' | -126 | -1,014 | -621 | |||
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 59,959 | 145,548 | 136,690 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 41,506 | 36,694 | 37,263 | |||
Americas [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 498,552 | 495,852 | 448,077 | |||
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 61,894 | [1] | 85,538 | [1] | 70,532 | |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 10,384 | 9,849 | 9,203 | |||
Asia Pacific [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 342,752 | 292,846 | 226,961 | |||
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 80,693 | [2] | 74,535 | 52,872 | ||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 5,032 | 4,869 | 3,764 | |||
Japan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 134,863 | 164,565 | 154,805 | |||
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 37,560 | [3] | 66,293 | 71,046 | ||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 1,454 | 2,053 | 2,320 | |||
Europe [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 216,259 | 169,464 | 170,869 | |||
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 16,192 | 21,678 | 37,106 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 5,108 | 3,116 | 2,584 | |||
Total Segment Revenues [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,192,426 | 1,122,727 | 1,000,712 | |||
Total Segment Operating Income [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 196,339 | 248,044 | 231,556 | |||
Total Segment Depreciation And Amortization [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 21,978 | 19,887 | 17,871 | |||
Other businesses [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 254 | 574 | 191 | |||
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | -20,811 | -10,805 | -14,128 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 8,002 | 7,003 | 11,657 | |||
Intersegment eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | 61 | 60 | 66 | |||
Unallocated corporate and other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | -112,494 | [4] | -91,125 | [4] | -86,415 | [4] |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | $11,526 | [4] | $9,804 | [4] | $7,735 | [4] |
[1] | Includes $3.9 million and $1.4 million for the years ended December 31, 2013 and 2012, respectively, of asset impairment charges related to 23 and four underperforming retail locations, respectively. | |||||||||||||
[2] | Includes $0.2 million for the year ended December 31, 2013 of asset impairment charges related to two underperforming retail locations. | |||||||||||||
[3] | Includes $6.6 million for the year ended December 31, 2013 of asset impairment charges related to 35 underperforming retail locations. | |||||||||||||
[4] | Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, depreciation and amortization of corporate and other assets not allocated to operating segments and costs of the same nature related to certain corporate holding companies. |
Operating_Segments_and_Geograp4
Operating Segments and Geographic Information Income Statement Footnote (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
store | store | ||
Segment Reporting Information [Line Items] | ' | ' | ' |
Asset impairment charges | $10,949 | $1,410 | $528 |
Number of Retail Stores with Asset Impairment Charges | 60 | 4 | ' |
Americas [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Asset impairment charges | 3,900 | 1,400 | ' |
Number of Retail Stores with Asset Impairment Charges | 23 | 4 | ' |
Asia Pacific [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Asset impairment charges | 200 | ' | ' |
Number of Retail Stores with Asset Impairment Charges | 2 | ' | ' |
Europe [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Asset impairment charges | $6,600 | ' | ' |
Number of Retail Stores with Asset Impairment Charges | 35 | ' | ' |
Operating_Segments_and_Geograp5
Operating Segments and Geographic Information Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current deferred tax assets | $4,440 | $6,284 | ||
Income tax receivable | 10,630 | 5,613 | ||
Other receivables | 11,942 | 24,821 | ||
Prepaid expenses and other current assets | 29,175 | 24,967 | ||
Total current assets | 640,077 | 613,115 | ||
Property and equipment, net | 86,971 | 82,241 | ||
Intangible assets, net | 74,822 | 59,931 | ||
Total non-current deferred tax assets | 19,628 | 34,112 | ||
Other assets | 53,661 | 40,239 | ||
Total assets | 875,159 | 829,638 | ||
Americas [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current assets | 139,855 | 143,236 | ||
Asia Pacific [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current assets | 177,343 | 170,426 | ||
Japan [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current assets | 51,155 | 111,785 | ||
Europe [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current assets | 137,701 | 85,756 | ||
Total Segment Current Assets [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current assets | 506,054 | 511,203 | ||
Other businesses [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current assets | 14,093 | 14,489 | ||
Unallocated corporate and other [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current assets | $63,743 | [1] | $25,738 | [1] |
[1] | Corporate assets primarily consist of cash and equivalents. |
Operating_Segments_Revenue_Det
Operating Segments Revenue (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $228,673 | $288,524 | $363,827 | $311,656 | $224,992 | $295,569 | $330,942 | $271,798 | $1,192,680 | $1,123,301 | $1,000,903 |
Footwear [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,155,377 | 1,076,210 | 956,816 |
Other Revenue [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 37,303 | 47,091 | 44,087 |
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 401,948 | 396,121 | 355,560 |
International [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 790,732 | 727,180 | 645,343 |
Japan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $134,863 | $164,565 | $154,805 |
Operating_Segments_Property_an
Operating Segments Property and Equipment Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | $86,971 | $82,241 |
United States [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | 56,262 | 47,587 |
International [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Property and equipment, net | $30,709 | $34,654 |
Legal_Proceedings_Details
Legal Proceedings (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | Mexican Federal Tax Authority [Member] | Mexican Federal Tax Authority [Member] | U.S. Customs and Border Protection [Member] |
USD ($) | MXN | USD ($) | ||
Paid duties | ' | ' | ' | $1,400 |
Unpaid duties | ' | ' | ' | 700 |
Projected unpaid duties | ' | ' | ' | 12,400 |
Penalties and interest assessed | ' | 22,000 | 280,000 | ' |
Surety bond | ' | 26,000 | 321,000 | ' |
Legal Settlement Accrual | 11,800 | ' | ' | ' |
Minimum Reasonably Possible Loss | 0 | ' | ' | ' |
Maximum Reasonably Possible Loss | $10,600 | ' | ' | ' |
Unaudited_Quarterly_Consolidat2
Unaudited Quarterly Consolidated Financial Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Consolidated Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $228,673 | $288,524 | $363,827 | $311,656 | $224,992 | $295,569 | $330,942 | $271,798 | $1,192,680 | $1,123,301 | $1,000,903 |
Gross profit | 102,901 | 153,581 | 200,867 | 165,849 | 106,350 | 160,743 | 196,085 | 144,799 | 623,198 | 607,977 | 536,410 |
Asset impairment | 10,747 | ' | 202 | ' | 591 | ' | 106 | 713 | ' | ' | ' |
Income from operations | -42,881 | 17,907 | 50,419 | 37,650 | -4,897 | 40,014 | 71,261 | 39,796 | 63,095 | 146,174 | 131,079 |
Net income | ($66,933) | $13,036 | $35,356 | $28,961 | ($3,607) | $45,080 | $61,524 | $28,346 | $10,420 | $131,343 | $112,788 |
Basic income per common share | ($0.76) | $0.15 | $0.40 | $0.33 | ($0.04) | $0.50 | $0.68 | $0.32 | $0.12 | $1.46 | $1.27 |
Diluted income per common share | ($0.76) | $0.15 | $0.40 | $0.33 | ($0.04) | $0.49 | $0.68 | $0.31 | $0.12 | $1.44 | $1.24 |
Unaudited_Quarterly_Consolidat3
Unaudited Quarterly Consolidated Financial Information Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Quarterly Consolidated Financial Information [Abstract] | ' | ' | ' | ' |
Inventory write-down charges | $3,400,000 | $3,419,000 | $0 | $0 |
Asset impairment charges | 10,400,000 | 10,600,000 | 1,400,000 | 500,000 |
Goodwill impairment charges | 300,000 | 300,000 | ' | ' |
Legal contingency accruals | 5,700,000 | ' | ' | ' |
Professional services fees for Blackstone | 1,100,000 | ' | ' | ' |
Cash repatiration and valuation allowance adjustment tax expense | $26,800,000 | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Number of preferred shares sold | 200,000 |
Aggregate purchase price of preferred shares sold | $198,000,000 |
Aggregate purchase price per share of preferred shares sold | 990 |
Closing fees paid for preferred share sale | 2,000,000 |
Transaction fees and expenses paid for preferred share sale | 4,000,000 |
Stated value of preferred shares sold | 1,000 |
Dividend rate normal | 6 |
Dividend rate penalty | 8 |
Conversion price for holder | 14.5 |
Conversion price for company | $29 |