Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 30, 2015 | Jun. 30, 2014 |
Document And Entity Information[Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Registrant Name | Crocs, Inc. | ||
Entity Central Index Key | 1334036 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Common stock outstanding | 77,834,494 | ||
Entity Public Float | $1.30 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements Of Operations [Abstract] | |||
Revenues | $1,198,223 | $1,192,680 | $1,123,301 |
Cost of sales | 603,893 | 569,482 | 515,324 |
Restructuring charges (Note 6) | 3,985 | ||
Gross profit | 590,345 | 623,198 | 607,977 |
Selling, general and administrative expenses | 565,712 | 549,154 | 460,393 |
Restructuring charges (Note 6) | 20,532 | ||
Asset impairment charges (Note 3) | 8,827 | 10,949 | 1,410 |
Income from operations | -4,726 | 63,095 | 146,174 |
Foreign currency transaction losses, net | 4,885 | 4,678 | 2,500 |
Interest income | -1,664 | -2,432 | -1,697 |
Interest expense | 806 | 1,016 | 837 |
Other (income) expense, net | -204 | -126 | -1,014 |
Income (loss) before income taxes | -8,549 | 59,959 | 145,548 |
Income tax (benefit) expense | -3,623 | 49,539 | 14,205 |
Net income (loss) | -4,926 | 10,420 | 131,343 |
Dividends on Series A convertibles preferred shares (Note 14) | 11,301 | ||
Dividend equivalents on Series A convertible preferred shares related to redemption value accretion and beneficial conversion feature (Note 14) | 2,735 | ||
Net income (loss) attributable to common stockholders | ($18,962) | $10,420 | $131,343 |
Net income (loss) per common share (Note 13): | |||
Basic | ($0.22) | $0.12 | $1.46 |
Diluted | ($0.22) | $0.12 | $1.44 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | |||
Net income (loss) | ($4,926) | $10,420 | $131,343 |
Other comprehensive income (loss): | |||
Foreign currency translation | -33,004 | -5,335 | 5,525 |
Reclassification of cumulative foreign exchange translation adjustments to net income, net of tax of $0, $(3) and $7, respectively | 299 | -658 | |
Total comprehensive income (loss) | ($37,930) | $5,384 | $136,210 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | |||
Tax Effect of Foreign Currency Translation Adjustment | $0 | ($3) | $7 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $267,512 | $317,144 | ||
Accounts receivable, net of allowances of $32,392 and $10,513, respectively | 101,217 | 104,405 | ||
Inventories | 171,012 | 162,341 | ||
Deferred tax assets, net | 4,190 | 4,440 | ||
Income tax receivable | 9,332 | 10,630 | ||
Other receivables | 11,989 | 11,942 | ||
Prepaid expenses and other current assets | 30,156 | 29,175 | ||
Total current assets | 595,408 | 640,077 | ||
Property and equipment, net | 68,288 | [1] | 86,971 | [1] |
Intangible assets, net | 97,337 | 72,314 | ||
Goodwill | 2,044 | 2,508 | ||
Deferred tax assets, net | 17,886 | 19,628 | ||
Other assets | 25,968 | 53,661 | ||
Total assets | 806,931 | 875,159 | ||
Current liabilities: | ||||
Accounts payable | 42,923 | 57,450 | ||
Accrued expenses and other current liabilities | 80,216 | 97,111 | ||
Deferred tax liabilities, net | 11,869 | 11,199 | ||
Accrued restructuring | 4,511 | |||
Income taxes payable | 9,078 | 15,992 | ||
Current portion of long-term borrowings and capital lease obligations | 5,288 | 5,176 | ||
Total current liabilities | 153,885 | 186,928 | ||
Long term income tax payable | 8,843 | 36,616 | ||
Long-term borrowings and capital lease obligations | 6,381 | 11,670 | ||
Long-term accrued restructuring | 348 | |||
Other liabilities | 12,277 | 15,201 | ||
Total liabilities | 181,734 | 250,415 | ||
Commitments and contingencies (Note 15) | ||||
Series A convertible preferred shares, par value $0.001 per share, 1,000,000 shares authorized, 200,000 shares issued and outstanding, redemption amount and liquidation preference of $203,067 and $0 at December 31, 2014 and 2013, respectively (Note 14) | 172,679 | |||
Stockholders' equity: | ||||
Preferred stock, par value $0.001 per share, 4,000,000 shares authorized, none outstanding | ||||
Common stock, par value $0.001 per share, 250,000,000 shares authorized, 92,325,201 and 78,516,566 shares issued and outstanding, respectively, as of December 31, 2014 and 91,662,656 and 88,450,203 shares issued and outstanding, respectively, as of December 31, 2013 | 92 | 92 | ||
Treasury stock, at cost, 13,808,635 and 3,212,453 shares as of December 31, 2014 and 2013, respectively | -200,424 | -55,964 | ||
Additional paid-in capital | 345,732 | 321,532 | ||
Retained earnings | 325,470 | 344,432 | ||
Accumulated other comprehensive income (loss) | -18,352 | 14,652 | ||
Total stockholders' equity | 452,518 | 624,744 | ||
Total liabilities, commitments and contingencies and stockholders' equity | $806,931 | $875,159 | ||
[1] | Not more than 10% of our long-lived assets resided in any individual foreign country in 2014 or 2013. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ||
Allowances | $32,392 | $10,513 |
Series A preferred shares, par value | $0.00 | $0.00 |
Series A preferred shares, shares authorized | 1,000,000 | 1,000,000 |
Series A preferred shares, issued | 200,000 | 200,000 |
Series A preferred shares, outstanding | 200,000 | 200,000 |
Series A preferred shares, redemption amount | 203,067 | 0 |
Series A preferred shares, liquidation preference | $203,067 | $0 |
Preferred shares, par value | $0.00 | $0.00 |
Preferred shares, authorized | 4,000,000 | 4,000,000 |
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 | 92,325,201 | 91,662,656 |
Common shares, outstanding | 78,516,566 | 88,450,203 |
Treasury stock, shares | 13,808,635 | 3,212,453 |
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, 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 | 5,525 | ||||
Reclassification of cumulative foreign exchange translation adjustments to net income | -658 | -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 | -5,335 | ||||
Reclassification of cumulative foreign exchange translation adjustments to net income | 299 | 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 | ||||
Amortization of stock compensation | 14,896 | 14,896 | ||||
Forfeitures | -2,129 | -2,129 | ||||
Forfeitures (in shares) | -144 | |||||
Exercises of stock options and issuance of restricted stock awards | 2,185 | -843 | 1,342 | |||
Exercises of stock options and issuance of restricted stock awards (in shares) | 853 | -46 | ||||
Repurchase of common stock for tax withholding | -787 | -787 | ||||
Repurchase of common stock for tax withholding (in shares) | -53 | 53 | ||||
Purchase of treasury stock | -145,858 | -145,858 | ||||
Purchase of treasury stock (in shares) | -10,590 | 10,590 | ||||
Dividend - Series A preferred stock | -11,301 | -11,301 | ||||
Accretion - Series A preferred stock | -2,735 | -2,735 | ||||
Adjustment for beneficial conversion feature of Series A preferred stock | 12,276 | 12,276 | ||||
Net income (loss) | -4,926 | -4,926 | ||||
Foreign currency translation | -33,004 | -33,004 | ||||
BALANCE at Dec. 31, 2014 | $92 | ($200,424) | $345,732 | $325,470 | ($18,352) | $452,518 |
BALANCE (in shares) at Dec. 31, 2014 | 78,516 | 13,809 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income (loss) | ($4,926) | $10,420 | $131,343 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 37,413 | 41,506 | 36,694 |
Unrealized (gain) loss on foreign exchange, net | -11,100 | -6,420 | 13,928 |
Deferred income taxes | 829 | 23,536 | -2,981 |
Asset impairment charges | 8,827 | 10,949 | 1,410 |
Provision for doubtful accounts, net | 12,087 | 1,930 | 2,166 |
Share based compensation | 12,503 | 11,871 | 11,321 |
Inventory write-down charges | 7,490 | 3,419 | |
Non-cash restructuring charges | 6,413 | ||
Other non-cash items | 534 | 1,193 | 1,725 |
Changes in operating assets and liabilities: | |||
Accounts receivable | -15,288 | -17,166 | -9,475 |
Inventories | -31,251 | -5,274 | -35,493 |
Prepaid expenses and other assets | 21,698 | -4,225 | -25,490 |
Accounts payable | -12,106 | -5,740 | 99 |
Accrued expenses and other liabilities | -15,824 | 14,256 | 8,016 |
Accrued restructuring | 4,859 | ||
Income taxes | -33,809 | 3,209 | -4,907 |
Cash provided by (used in) operating activities | -11,651 | 83,464 | 128,356 |
Cash flows from investing activities: | |||
Cash paid for purchases of property and equipment | -15,991 | -40,424 | -39,762 |
Proceeds from disposal of property and equipment | 236 | 250 | 2,216 |
Cash paid for intangible assets | -41,035 | -28,404 | -21,074 |
Business acquisitions, net of cash | -5,169 | ||
Restricted cash | -1,202 | -1,180 | -2,154 |
Cash used in investing activities | -57,992 | -69,758 | -65,943 |
Cash flows from financing activities: | |||
Proceeds from preferred stock offering, net of issuance costs of $15.8 million and $0.0 million, respectively | 182,220 | ||
Dividends - Series A preferred stock | -8,234 | ||
Proceeds from bank borrowings | 23,375 | 96,086 | |
Repayment of bank borrowings and capital lease obligations | -5,177 | -13,160 | -90,625 |
Deferred debt issuance costs | -75 | -100 | -225 |
Deferred offering costs | 767 | ||
Issuances of common stock | 1,342 | 2,280 | 3,706 |
Purchase of treasury stock | -145,858 | -12,533 | -25,074 |
Repurchase of common stock for tax withholding | -787 | -256 | -493 |
Cash provided by (used in) financing activities | 23,431 | -1,161 | -16,625 |
Effect of exchange rate changes on cash | -3,420 | 10,251 | -9,027 |
Net increase in cash and cash equivalents | -49,632 | 22,796 | 36,761 |
Cash and cash equivalents - beginning of period | 317,144 | 294,348 | 257,587 |
Cash and cash equivalents - end of period | 267,512 | 317,144 | 294,348 |
Supplemental disclosure of cash flow information-cash paid during the period for: | |||
Interest, net of capitalized interest | 616 | 693 | 619 |
Income taxes | 33,655 | 20,274 | 29,385 |
Supplemental disclosure of non-cash, investing, and financing activities: | |||
Assets acquired under capitalized leases | 61 | 34 | |
Accrued purchases of property and equipment | 771 | 2,165 | 2,368 |
Accrued purchases of intangibles | 2,988 | 4,742 | 768 |
Intrinsic value of beneficial conversion feature - Series A preferred stock | 12,276 | ||
Accrued dividends | 3,067 | ||
Accretion of dividend equivalents | $2,735 |
Recovered_Sheet1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements Of Cash Flows [Abstract] | |||
Series A preferred share issuance costs | $15.80 | $0 | $0 |
Organization_Summary_Of_Signif
Organization & Summary Of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization & Summary Of Significant Accounting Policies [Abstract] | ||
Organization & Summary Of Significant Accounting Policies | 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 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, 2014 and 2013, the consolidated financial statements included $3.3 million and $2.4 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 December 31, 2014 and 2013 were partially offset by $0.4 million and $0.2 million in total liabilities, respectively, which primarily consisted of accounts payable and accrued expenses, excluding liabilities related to the support provided by us. | ||
Noncontrolling Interests—As of December 31, 2014, 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, 2014, we held $247.6 million of our total $267.5 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 $247.6 million held in international locations, $10.8 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 14—Series A Preferred Stock for further detail regarding the investment agreement. | ||
Accounts receivable—We have not experienced significant losses in such accounts in prior years, however, as of December 31, 2014, we recorded a reserve for doubtful accounts of $11.5 million in our Asia Pacific segment primarily as a result of delayed payments from our partner stores in China and Southeast Asia and a reserve for rebates on a consolidated basis of $11.6 million primarily related to our Asia Pacific region. As of December 31, 2013, our reserve for doubtful accounts was $3.7 million and the rebates reserve was $1.4 million. Generally, 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. See Note 11—Allowances for further detail. | ||
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. | ||
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, customer rebates, 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 15—Commitments & Contingencies and Note 17—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 any derivative instruments, should we enter into them, would be 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 7—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 11—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 a security that may participate in undistributed earnings with common stock had those earnings been distributed in any form. Our recently issued Series A convertible preferred stock (“Series A Preferred Stock”) represents participating securities as holders of the Series A Preferred Stock are entitled to receive any and all dividends declared or paid on common stock on an as-converted basis. In addition, shares of our non-vested restricted stock awards are considered participating securities as they represent unvested share-based payment awards containing non-forfeitable rights to dividends. As such, these participating securities must be included in the computation of EPS pursuant to the two-class method on a pro-rata, as-converted basis. Diluted EPS reflects the potential dilution from securities that could share in our earnings. In addition, the dilutive effect of each participating security is calculated using the more dilutive of the two-class method described above, which assumes that the securities remain in their current form, or the if-converted method, which assumes conversion to common stock as of the beginning of the reporting date. Anti-dilutive securities are excluded from diluted EPS. See Note 13—Earnings Per Share for further discussion. | ||
Beneficial conversion feature — The issuance of our Series A Preferred Stock generated a beneficial conversion feature, which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor or in the money at inception because the conversion option has an effective strike price that is less than the market price of the underlying stock at the commitment date. We recognized the beneficial conversion feature by allocating the intrinsic value of the conversion option, which is the number of shares of common stock available upon conversion multiplied by the difference between the effective conversion price per share and the fair value of common stock per share on the commitment date, to additional paid-in capital, resulting in a discount on the Series A Preferred Stock. We are accreting the discount over eight years from the date of issuance through the redemption date. Accretion expense will be recognized as dividend equivalents over the eight year period utilizing the effective interest method. | ||
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 Company’s Board of Directors (the “Board”) 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 10—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. Our expense related to the matching contributions to the Plan was $7.1 million, $6.8 million and $5.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Advertising—Advertising costs are expensed as incurred and production costs are 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 $44.7 million, $47.6 million and $39.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Research and Development—Research and development costs are expensed as incurred. Research and development expenses amounted to $16.7 million, $15.4 million and $12.0 million for the years ended December 31, 2014, 2013 and 2012, 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 12—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 | ||
Discontinued Operations | ||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08: Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends the definition of a discontinued operation in ASC 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. The FASB issued the ASU to provide more decision-useful information and to make it more difficult for a disposal transaction to qualify as a discontinued operation. Under the previous guidance, the results of operations of a component of an entity were classified as a discontinued operation if all of the following conditions were met: | ||
The component has been disposed of or is classified as held for sale. | ||
The operations and cash flows of the component have been (or will be) eliminated from the ongoing operations of the entity as a result of the disposal transaction. | ||
The entity will not have any significant continuing involvement in the operations of the component after the disposal transaction. | ||
The new guidance eliminates the second and third criteria above and instead requires discontinued operations treatment for disposals of a component or group of components that represents a strategic shift that has or will have a major impact on an entity’s operations or financial results. The ASU also expands the scope of ASC 205-20 to disposals of equity method investments and businesses that, upon initial acquisition, qualify as held for sale. In addition, the ASU requires entities to reclassify assets and liabilities of a discontinued operation for all comparative periods presented in the statement of financial position. Before these amendments, ASC 205-20 neither required nor prohibited such presentation. Regarding the statement of cash flows, an entity must disclose, in all periods presented, either (1) operating and investing cash flows or (2) depreciation and amortization, capital expenditures, and significant operating and investing noncash items related to the discontinued operation. This presentation requirement represents a significant change from previous guidance. This ASU is effective prospectively for all disposals or components initially classified as held for sale in periods beginning on or after December 15, 2014. Early adoption is permitted. The adoption of this pronouncement did not have a material impact to the Company’s consolidated financial statements. | ||
Income Taxes | ||
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 adopted this pronouncement on January 1, 2014. 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 | ||
Going Concern | ||
On August 27, 2014, the FASB issued ASU 2014-15, which provides guidance on determining when and how reporting entities must disclose going concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements (or within one year after the date on which the financial statements are available to be issued, when applicable). Further, an entity must provide certain disclosures if there is “substantial doubt about the entity’s ability to continue as a going concern.” | ||
The FASB believes that requiring management to perform the assessment will enhance the timeliness, clarity and consistency of related disclosures and improve convergence with IFRSs (which emphasize management’s responsibility for performing the going concern assessment). However, the time horizon for the assessment (look-forward period) and the disclosure thresholds under U.S. GAAP and IFRSs will continue to differ. This ASU is effective for annual periods ending after December 16, 2016, and interim periods thereafter; early adoption is permitted. The Company does not believe that this pronouncement will have a material impact on our financial statement disclosures. | ||
Share-Based Payment | ||
On June 19, 2014, the FASB issued ASU 2014-12 in response to the EITF consensus on Issue 13-D. The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. This ASU is effective for all entities for reporting periods (including interim periods) beginning after December 15, 2015. The Company does not believe that this pronouncement will have a material impact to the Company’s consolidated financial statements. | ||
Revenue Recognition | ||
In May 2014, the FASB issued their final standard on revenue from contracts with customers. The standard, issued as ASU No. 2014-09: Revenue from Contracts with Customers (Topic 606) by the FASB, outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In applying the revenue model to contracts within its scope, an entity: | ||
Identifies the contract(s) with a customer (Step 1) | ||
Identifies the performance obligations in the contract (Step 2) | ||
Determines the transaction price (Step 3) | ||
Allocates the transaction price to the performance obligations in the contract (Step 4) | ||
Recognizes revenue when (or as) the entity satisfies a performance obligation (Step 5) | ||
The ASU applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. Certain of the ASU’s provisions also apply to transfers of nonfinancial assets, including in-substance nonfinancial assets that are not an output of an entity’s ordinary activities (e.g., sales of property, plant, and equipment, real estate or intangible assets). Existing accounting guidance applicable to these transfers has been amended or superseded. Compared with current U.S. GAAP, the ASU also requires significantly expanded disclosures about revenue recognition. | ||
The ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early application is not permitted. The Company is currently evaluating the impact that this pronouncement will have on the Company’s consolidated financial statements. | ||
Inventories
Inventories | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Inventories [Abstract] | ||||||||||
Inventories | 2. INVENTORIES | |||||||||
The following table summarizes inventories by major classification as of December 31, 2014 and 2013: | ||||||||||
($ thousands) | 2014 | 2013 | ||||||||
Finished goods | $ | 167,515 | $ | 154,272 | ||||||
Work-in-progress | 703 | 685 | ||||||||
Raw materials | 2,794 | 7,384 | ||||||||
Inventories | $ | 171,012 | $ | 162,341 | ||||||
Inventory Write-down | ||||||||||
During the year ended December 31, 2014, we recorded approximately $11.5 million of inventory write-down charges related to obsolete inventory with a market value lower than cost, of which $4.0 million was reported in the ‘Restructuring charges’ included in gross margin with the remaining amounts reported in ‘Cost of sales’ in the consolidated statements of operations. 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. We recorded no inventory write-down charges for the year ended December 31, 2012. | ||||||||||
Charitable Contributions | ||||||||||
During the years ended December 31, 2014, 2013 and 2012, 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, $0.6 million and $1.7 million, respectively. Also during the years ended December 31, 2014, 2013 and 2012, we recognized a gain of $0.2 million, $0.1 million and $0.6 million, respectively, and a net reduction of inventory of $0.4 million, $0.5 million and $1.1 million, respectively, as the fair value of the inventory contributed exceeded its carrying amount. | ||||||||||
Property_And_Equipment
Property And Equipment | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Property And Equipment [Abstract] | |||||||||||||||||
Property And Equipment | 3. PROPERTY AND EQUIPMENT | ||||||||||||||||
The following table summarizes property and equipment by major classification as of December 31, 2014 and 2013: | |||||||||||||||||
December 31, | |||||||||||||||||
($ thousands) | 2014 | 2013 | |||||||||||||||
Machinery and equipment | $ | 48,989 | $ | 52,003 | |||||||||||||
Leasehold improvements | 91,962 | 93,235 | |||||||||||||||
Furniture, fixtures and other | 23,818 | 23,653 | |||||||||||||||
Construction-in-progress | 3,318 | 16,231 | |||||||||||||||
Property and equipment, gross (1) | 168,087 | 185,122 | |||||||||||||||
Less: Accumulated depreciation (2) | -99,799 | -98,151 | |||||||||||||||
Property and equipment, net | $ | 68,288 | $ | 86,971 | |||||||||||||
(1)Includes $0.2 million and $0.2 million of certain equipment held under capital leases and classified as equipment as of each of December 31, 2014 and 2013, respectively. | |||||||||||||||||
(2)Includes $0.1 million of accumulated depreciation related to certain equipment held under capital leases, as of each of December 31, 2014 and 2013, which are depreciated using the straight-line method over the lease term. During the year ended December 31, 2014, approximately $17.5 million of accumulated depreciation was related to assets that were written off or disposed. | |||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, we recorded $23.2 million, $24.3 million and $23.1 million and, respectively, in depreciation expense of which $1.7 million, $2.9 million and $4.6 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. | |||||||||||||||||
We retired approximately $28.5 million of long-lived assets during the year ended December 31, 2014 primarily related to assets no longer in service or impaired due to the closure of stores. During the years ended December 31, 2014 and 2013, we retired $1.6 million and $19.5 million of fully depreciated assets. The fully depreciated assets retired in 2013 were 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. | |||||||||||||||||
Asset Impairments | |||||||||||||||||
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, 2014, 2013 and 2012, we recorded $8.8 million, $10.6 million and $1.4 million, respectively, in impairment charges related to underperforming retail locations, respectively, that were unlikely to generate sufficient cash flows to fully recover the carrying value of the stores’ assets over their remaining economic life. The following table summarizes asset impairment charges by reportable operating segment for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
($ thousands, except store count data) | Impairment charge | Number of stores | Impairment charge | Number of stores | Impairment charge | Number of stores | |||||||||||
Americas | $ | 4,001 | 36 | $ | 3,861 | 23 | $ | 1,410 | 4 | ||||||||
Asia Pacific | 2,807 | 14 | 185 | 2 | - | - | |||||||||||
Japan | - | - | - | - | - | - | |||||||||||
Europe | 2,019 | 27 | 6,565 | 35 | - | - | |||||||||||
Asset impairment charges | $ | 8,827 | 77 | $ | 10,611 | 60 | $ | 1,410 | 4 | ||||||||
Goodwill_Intangible_Assets
Goodwill & Intangible Assets | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Goodwill & Intangible Assets [Abstract] | ||||||||||||||||||||||
Goodwill & Intangible Assets | 4. GOODWILL & INTANGIBLE ASSETS | |||||||||||||||||||||
The following table summarizes the goodwill and identifiable intangible assets as of December 31, 2014 and 2013: | ||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||
($ thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||
Capitalized software | $ | 157,615 | -1 | $ | -62,591 | -2 | $ | 95,024 | $ | 118,940 | -1 | $ | -49,665 | -2 | $ | 69,275 | ||||||
Customer relationships | 5,945 | -5,798 | 147 | 6,878 | -6,439 | 439 | ||||||||||||||||
Patents, copyrights, and trademarks | 6,702 | -4,931 | 1,771 | 6,501 | -4,272 | 2,229 | ||||||||||||||||
Core technology | 4,170 | -4,170 | - | 4,548 | -4,548 | - | ||||||||||||||||
Other | 698 | -636 | 62 | 983 | -709 | 274 | ||||||||||||||||
Total finite lived intangible assets | 175,130 | -78,126 | 97,004 | 137,850 | -65,633 | 72,217 | ||||||||||||||||
Indefinite lived intangible assets | 333 | - | 333 | 97 | - | 97 | ||||||||||||||||
Goodwill(3) | 2,044 | - | 2,044 | 2,508 | - | 2,508 | ||||||||||||||||
Goodwill and intangible assets | $ | 177,507 | $ | -78,126 | $ | 99,381 | $ | 140,455 | $ | -65,633 | $ | 74,822 | ||||||||||
(1)Includes $4.1 million of software held under a capital lease classified as capitalized software as of each of December 31, 2014 and 2013. During 2013, we began an implementation of a new enterprise resource planning, (“ERP”) system, and in 2014, we continued this implementation. Certain costs associated with the new ERP system were capitalized in both periods. The majority of the ERP system was placed into service during 2015. | ||||||||||||||||||||||
(2)Includes $2.5 million and $1.9 million of accumulated amortization of software held under a capital lease as of December 31, 2014 and 2013, respectively, which is amortized using the straight-line method over the useful life. | ||||||||||||||||||||||
(3)Change in goodwill relates entirely to foreign currency translation. | ||||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, amortization expense recorded for intangible assets with finite lives was $14.2 million, $17.2 million and $13.6 million, respectively, of which $4.9 million, $6.0 million and $4.3 million, respectively, was recorded in ‘Cost of sales’, with the remaining amounts recorded in ‘Selling, general and administrative expenses’ on the consolidated statements of operations. | ||||||||||||||||||||||
The following table summarizes estimated future annual amortization of intangible assets as of December 31, 2014: | ||||||||||||||||||||||
Amortization | ||||||||||||||||||||||
Fiscal years ending December 31, | ($ thousands) | |||||||||||||||||||||
2015 | $ | 20,198 | ||||||||||||||||||||
2016 | 19,376 | |||||||||||||||||||||
2017 | 13,825 | |||||||||||||||||||||
2018 | 12,334 | |||||||||||||||||||||
2019 | 10,844 | |||||||||||||||||||||
Thereafter | 20,427 | |||||||||||||||||||||
Total | $ | 97,004 | ||||||||||||||||||||
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 $0.3 million of goodwill impairment related to the retail channel of our Crocs Benelux B.V. business purchased by our Crocs Stores B.V. subsidiary in July 2012. Goodwill and associated impairments are part of our Europe operating segment. During the years ended December 31, 2014 and 2012, we did not record any impairments related to goodwill. | ||||||||||||||||||||||
Accrued_Expenses_And_Other_Cur
Accrued Expenses And Other Current Liabilities | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accrued Expenses And Other Current Liabilities [Abstract] | |||||||||||
Accrued Expenses And Other Current Liabilities | |||||||||||
5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||||||||||
The following table summarizes accrued expenses and other current liabilities as of December 31, 2014 and 2013: | |||||||||||
December 31, | |||||||||||
($ thousands) | 2014 | 2013 | |||||||||
Accrued compensation and benefits | $ | 23,824 | $ | 26,903 | |||||||
Professional services | 16,212 | 14,128 | |||||||||
Fulfillment, freight and duties | 12,110 | 12,565 | |||||||||
Sales/use and VAT tax payable | 5,897 | 9,142 | |||||||||
Accrued rent and occupancy | 9,675 | 12,198 | |||||||||
Customer deposits | 3,075 | 6,940 | |||||||||
Dividend payable | 3,067 | - | |||||||||
Accrued legal liabilities | 2,150 | 8,722 | |||||||||
Other (1) | 4,206 | 6,513 | |||||||||
Total accrued expenses and other current liabilities | $ | 80,216 | $ | 97,111 | |||||||
(1)The amounts in Other consist of various accrued expenses and no individual item accounted for more than 5% of the total balance as of December 31, 2014 or 2013. | |||||||||||
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, 2014 and 2013 was $2.2 million and $2.0 million, respectively. | |||||||||||
Restructuring_Activities
Restructuring Activities | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Restructuring Activities [Abstract] | ||||||||||||||||
Restructuring Activities | 6. RESTRUCTURING ACTIVITIES | |||||||||||||||
Restructuring | ||||||||||||||||
On July 21, 2014, we announced strategic plans for long-term improvement and growth of the business. These plans comprise four key initiatives including: (1) streamlining the global product and marketing portfolio, (2) reducing direct investment in smaller geographic markets, (3) creating a more efficient organizational structure including reducing duplicative and excess overhead which will also enhance the decision making process, and (4) closing or converting approximately 75 to 100 retail locations around the world. The initial effects of these plans were incurred in 2014 and are expected to continue through 2015. The Company recorded restructuring charges of $24.5 million during the year ended December 31, 2014, and closed 20 retail locations which were identified in the initial restructuring plan. During 2015, we currently estimate additional restructuring costs related to store closures and changes in organizational structure of approximately $5 million to $20 million, but can make no assurance that actual costs will not differ, as our restructuring plans are not yet complete. | ||||||||||||||||
The following table summarizes our restructuring activity during the years ended December 31, 2014 and 2013: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
($ thousands) | 2014 | 2013 | ||||||||||||||
Severance costs | $ | 12,500 | $ | - | ||||||||||||
Lease / contract exit and related costs | 4,251 | - | ||||||||||||||
Other (1) | 7,766 | - | ||||||||||||||
Total restructuring charges | $ | 24,517 | $ | - | ||||||||||||
(1)The amounts in ‘Other’ consist of various asset and inventory impairment charges prompted by the aforementioned restructuring plan, legal fees and facility maintenance fees. | ||||||||||||||||
The following table summarizes our total restructuring charges incurred during the years ended December 31, 2014 and 2013 as well as charges incurred to date by reportable segment: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
($ thousands) | 2014 | 2013 | ||||||||||||||
Americas | $ | 4,259 | $ | - | ||||||||||||
Asia Pacific | 6,816 | - | ||||||||||||||
Japan | 606 | |||||||||||||||
Europe | 3,934 | - | ||||||||||||||
Corporate | 8,902 | - | ||||||||||||||
Total restructuring charges | $ | 24,517 | $ | - | ||||||||||||
The following table summarizes our accrued restructuring balance and associated activity from December 31, 2013 through December 31, 2014: | ||||||||||||||||
Accrued | Accrued | |||||||||||||||
Restructuring as of | Restructuring as of | |||||||||||||||
($ thousands) | 31-Dec-13 | Additions | Cash payments | Adjustments (1) | 31-Dec-14 | |||||||||||
Severance | $ | - | $ | 13,287 | $ | -9,329 | $ | -804 | $ | 3,154 | ||||||
Lease / contract exit and related costs | - | 4,252 | -2,756 | -95 | 1,401 | |||||||||||
Other | - | 1,352 | -1,028 | -20 | 304 | |||||||||||
Total accrued restructuring | $ | - | $ | 18,891 | $ | -13,113 | $ | -919 | $ | 4,859 | ||||||
(1)Adjustments relate to a reversal of accrued expenses, differences resulting from the translation of the liability balance as of the balance sheet rate and restructuring expense translated at the weighted-average rate of exchange for the applicable period. | ||||||||||||||||
Retail Store Closings | ||||||||||||||||
As mentioned above, the Company plans to close additional retail locations around the globe. As such, we expect to incur certain exit costs specific to store closures including operating lease termination costs, rent obligations for leased facilities, net of expected sublease income, and other expenses in association with this plan, such as severance for retail and non-retail related positions. During the year ended December 31, 2014, we closed 20 company-operated retail locations which were identified in the initial restructuring plan, and were selected for closure by management based on historical and projected profitability levels, relocation plans, and other factors. As of December 31, 2014, we had a liability of approximately $4.9 million related to locations to be closed and other reductions in workforce in accrued restructuring on the consolidated balance sheet. No such accrual was made as of December 31, 2013. The calculation of accrued store closing reserves primarily includes future minimum lease payments from the date of closure to the end of the remaining lease term, net of contractual or estimated sublease income. We record the liability at fair value in the period in which the store is closed. | ||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||
Fair Value Measurements | 7. FAIR VALUE MEASUREMENTS | ||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||
The following tables summarize the financial instruments required to be measured at fair value on a recurring basis as of December 31, 2014 and 2013. See Note 1 – Organization & Summary of Significant Accounting Policies for additional detail regarding our fair value measurement determinations. | |||||||||||||||
Fair Value as of December 31, 2014 | |||||||||||||||
Quoted prices in | Significant | ||||||||||||||
active markets | other | Significant | |||||||||||||
for identical | observable | unobservable | |||||||||||||
assets or liabilities | inputs | inputs | |||||||||||||
($ thousands) | (Level 1) | (Level 2) | (Level 3) | Total | Balance Sheet Classification | ||||||||||
Cash equivalents | $ | 23,326 | $ | - | $ | - | $ | 23,326 | Cash and cash equivalents and other current assets | ||||||
Derivative assets: | |||||||||||||||
Foreign currency contracts | $ | - | $ | - | $ | - | $ | - | Prepaid expenses and other current assets | ||||||
Derivative liabilities: | |||||||||||||||
Foreign currency contracts | $ | - | $ | - | $ | - | $ | - | Accrued expense and other current liabilities | ||||||
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 | ||||||
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, 2014 | ||||||||||||||||||
Derivative Financial Instruments [Abstract] | ||||||||||||||||||
Derivative Financial Instruments | 8. 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 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 7 — 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, 2014 and 2013. 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) | 2014 | 2013 | ||||||||||||||||
Foreign currency exchange forward contracts by currency: | ||||||||||||||||||
Euro | $ | 134,755 | $ | 38,577 | ||||||||||||||
Singapore Dollar | 61,887 | 28,225 | ||||||||||||||||
Japanese Yen | 44,533 | 68,707 | ||||||||||||||||
British Pound Sterling | 17,230 | 15,487 | ||||||||||||||||
South Korean Won | 14,590 | 12,100 | ||||||||||||||||
Mexican Peso | 13,180 | 18,350 | ||||||||||||||||
Australian Dollar | 7,913 | 4,941 | ||||||||||||||||
Chinese Yuan Renminbi | 5,376 | - | ||||||||||||||||
South African Rand | 4,355 | 3,076 | ||||||||||||||||
Indian Rupee | 3,356 | 2,150 | ||||||||||||||||
New Taiwan Dollar | 3,229 | 3,463 | ||||||||||||||||
Canadian Dollar | 3,005 | 3,428 | ||||||||||||||||
Swedish Krona | 1,918 | 1,615 | ||||||||||||||||
Russian Ruble | 1,838 | 17,588 | ||||||||||||||||
Norwegian Krone | 917 | - | ||||||||||||||||
Hong Kong Dollar | 814 | 1,844 | ||||||||||||||||
New Zealand Dollar | 743 | 943 | ||||||||||||||||
Total notional value, net | $ | 319,639 | $ | 220,494 | ||||||||||||||
Latest maturity date | Jan-15 | Dec-15 | ||||||||||||||||
The following table presents the amounts affecting the consolidated statements of operations from derivative instruments for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
($ thousands) | 2014 | 2013 | 2012 | Location of Gain (Loss) Recognized in Income on Derivatives | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency exchange forwards | $ | 3,788 | $ | -13,002 | $ | -7,200 | Foreign currency transaction (gains) losses, net | |||||||||||
The account ‘Foreign currency transaction 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, 2014, the net loss recognized of $4.9 million recorded on the consolidated statements of operations is comprised of $3.8 million net loss associated with our derivative instruments and $1.1 million net loss associated with exposure from day-to-day business transactions in various foreign currencies. 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. | ||||||||||||||||||
Revolving_Credit_Facility_Bank
Revolving Credit Facility & Bank Borrowings | 12 Months Ended | ||
Dec. 31, 2014 | |||
Revolving Credit Facility & Bank Borrowings [Abstract] | |||
Revolving Credit Facility & Bank Borrowings | 9. 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 an Amended and Restated Credit Agreement (as amended, the “Credit Agreement”), and on December 27, 2013, we entered into the Third Amendment to Amended and Restated Credit Agreement (the "Third Amendment"). The Third Amendment, among other things, (i) allowed for the payment of dividends on the Series A Convertible Preferred Stock ("Series A Preferred Stock"), (ii) permitted the Company to have greater flexibility to repurchase its Common Stock, (iii) decreased the maximum leverage ratio from 3.50 to 1.00 to 3.25 to 1.00, and (iv) amended certain definitions of the financial covenants to become more favorable to the Company. See Note 14—Series A Preferred Stock for further details regarding the payment of dividends on the Series A Preferred Stock. On March 27, 2014, we entered into the Fourth Amendment to Amended and Restated Credit Agreement (the “Fourth Amendment”). The Fourth Amendment primarily (i) altered the minimum fixed charge coverage ratio from 1.25 to 1.00 to a scaled quarterly ratio of 1.15 to 1.00 in the first and second quarters of 2014, 1.20 to 1.00 in the third quarter of 2014, and (ii) amended certain definitions of the financial covenants to become more favorable to us. | |||
On September 26, 2014, we entered into the Fifth Amendment to Amended and Restated Credit Agreement (the “Fifth Amendment”), pursuant to which certain terms of the Credit Agreement were amended. The Fifth Amendment primarily (i) extended the minimum fixed charge coverage ratio of 1.15 to 1.00 through the second quarter of 2015 and will return to 1.25 to 1.00 for each quarter thereafter, and (ii) amended certain definitions of the financial covenants to become more favorable to us. | |||
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, 2014 and 2013, we had no outstanding borrowings under the Credit Agreement. As of December 31, 2014 and 2013, we had issued and outstanding letters of credit of $1.8 million and $7.2 million, respectively, which were reserved against the borrowing base under the terms of the Credit Agreement. During the years ended December 31, 2014, 2013 and 2012, we capitalized $0.1 million, $0.1 million and $0.5 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, 2014, 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 our 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. The Master IPA 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 early 2015. The terms of each note payable under the Master IPA 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, 2014 and 2013, we had $11.6 million and $16.8 million, respectively, of long-term debt outstanding under five separate notes payable, of which $5.3 million and $5.1 million, respectively, represent current installments. As of December 31, 2014, 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 years ended December 31, 2014 and 2013, we capitalized $0.4 million and $0.3 million, respectively, in interest expense 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, 2014 are as follows (in thousands): | |||
Fiscal years ending December 31, | |||
2015 | $ | 5,271 | |
2016 | 4,765 | ||
2017 | 1,610 | ||
2018 | - | ||
2019 | - | ||
Thereafter | - | ||
Total principal debt maturities | $ | 11,646 | |
Equity
Equity | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Equity [Abstract] | ||||||||||
Equity | 10. 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. As of December 31, 2014 and 2013, 0.6 million and 0.7 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. As of December 31, 2014 and 2013, 3.1 million and 3.6 million shares of common stock, respectively, were issuable under the 2007 Plan pursuant to outstanding stock options and RSUs. As of December 31, 2014, 3.7 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, 2014, 2013 and 2012: | ||||||||||
Weighted | ||||||||||
Average | ||||||||||
Weighted | Remaining | Aggregate | ||||||||
Average | Contractual | Intrinsic | ||||||||
Exercise | Life | Value | ||||||||
Shares | Price | (Years) | ($ thousands) | |||||||
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 | ||||||
Granted | 119,000 | 14.22 | ||||||||
Exercised | -265,675 | 5.05 | ||||||||
Forfeited or expired | -262,347 | 21.02 | ||||||||
Outstanding at December 31, 2014 | 1,696,130 | $ | 13.52 | 3.88 | $ | 4,435 | ||||
Exercisable at December 31, 2014 | 1,439,175 | $ | 13.15 | 3.15 | $ | 4,422 | ||||
Vested and expected to vest at December 31, 2014 | 1,629,270 | $ | 13.47 | 3.69 | $ | 4,429 | ||||
During the years ended December 31, 2014, 2013 and 2012, options issued were valued using the Black Scholes option pricing model using the following assumptions: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Expected volatility | 44% - 50% | 50% - 64% | 50% - 70% | |||||||
Dividend yield | - | - | - | |||||||
Risk-free interest rate | 1.41% - 1.71% | 0.81% - 1.62% | 0.62% - 1.20% | |||||||
Expected life (in years) | 4.00 | 4.00 | 4.00 - 4.27 | |||||||
The weighted-average fair value of options granted during the years ended December 31, 2014, 2013, and 2012 was approximately $5.35, $7.33 and $7.76, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2014, 2013 and 2012 was $2.7 million, $2.8 million and $6.9 million, respectively. During the years ended December 31, 2014 and 2013, we received $1.3 million and $2.3 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 12—Income Taxes). The total grant date fair value of stock options vested during the years ended December 31, 2014, 2013 and 2012 was $0.8 million, $1.2 million, $2.8 million, respectively. | ||||||||||
As of December 31, 2014, we had $1.5 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 2.5 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. RSAs and RSUs generally vest over three or four years, depending on the terms of the grant. 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, 2014, 2013 and 2012, the Board approved grants of 0.3 million, 0.4 million and 0.4 million 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, 2014: | ||||||||||
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 Goals - each weighted 50% | Potential Award | Further Time Vesting | |||||||
Achievement of at least 70% of a one-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% on the one-year anniversary of the end of the Performance Period. | ||||||||
Earned RSUs vest 50% upon satisfaction of performance goal and 50% on the one-year anniversary of the end of the Performance Period. | ||||||||||
Executive may earn from 50% to 200% of the target number of RSUs based on the level of achievement of the performance goal | ||||||||||
Achievement of at least 90% of a one-year revenue performance goal | ||||||||||
The following represents the vesting schedule of performance-based RSUs granted during the years ended December 31, 2013 and 2012: | ||||||||||
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, 2014, 2013 and 2012, the Board approved the grant of 0.9 million, 0.9 million and 0.4 million, respectively, 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, 2014, 2013 and 2012: | ||||||||||
Restricted Stock Awards | Restricted Stock Units | |||||||||
Weighted | Weighted | |||||||||
Average | Average | |||||||||
Grant Date | Grant Date | |||||||||
Shares | Fair Value | Units | Fair Value | |||||||
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 | ||||||
Granted | 9,973 | 15.04 | 1,749,993 | 16.05 | ||||||
Vested | -68,420 | -1 | 15.03 | -541,888 | -1 | 17.64 | ||||
Forfeited | -144,555 | 12.67 | -1,176,301 | 16.51 | ||||||
Unvested at December 31, 2014 | 7,488 | $ | 15.61 | 1,997,471 | $ | 15.78 | ||||
-1 | The RSAs vested during the years ended December 31, 2014, 2013 and 2012 consisted entirely of time-based awards. The RSUs vested during the year ended December 31, 2014 consisted of 30,946 performance-based awards and 510,942 time-based awards. The RSUs vested during the year ended December 31, 2013 consisted of 52,288 performance-based awards and 277,254 time-based awards. The RSUs vested during the year ended December 31, 2012 consisted entirely of time-based awards. | |||||||||
The total grant date fair value of RSAs vested during the years ended December 31, 2014, 2013 and 2012 was $1.0 million, $1.3 million and $1.8 million, respectively. As of December 31, 2014, we had $0.1 million of total unrecognized share-based compensation expense related to non-vested restricted stock awards, net of expected forfeitures, all of which was related to time-based awards. The unvested RSAs are expected to be amortized over the remaining weighted-average period of 0.36 years. | ||||||||||
The total grant date fair value of RSUs vested during the years ended December 31, 2014, 2013 and 2012 was $9.6 million, $7.1 million and $3.1 million, respectively. As of December 31, 2014, we had $13.0 million of total unrecognized share-based compensation expense related to unvested restricted stock units, net of expected forfeitures, of which $6.2 million is related to performance-based awards and $6.8 million is time-based awards. The unvested RSUs are expected to be amortized over the remaining weighted-average period of 1.49 years, which consists of a remaining weighted-average period of 1.15 years related to performance-based awards and a remaining weighted-average period of 1.78 years related to time-based awards. | ||||||||||
Share-based Compensation | ||||||||||
During the years ended December 31, 2014, 2013 and 2012, we recorded $12.7 million, $12.5 million and $11.3 million, respectively, of pre-tax share-based compensation expense of which $0.2 million, $0.7 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 April 30, 2014. 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 recognized the first and second installment payments of $1.1 million and $1.0 million ratably from December 27, 2013 through April 30, 2014. Mr. McCarvel was also 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. | ||||||||||
Pursuant to the separation agreement, unvested share awards that vested 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 which did not 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. | ||||||||||
Appointment of President and Interim CEO | ||||||||||
On May 13, 2014, the Board appointed Andrew Rees as President of the Company with principal responsibilities for the Crocs brand, effective June 9, 2014. In addition, the Board appointed Mr. Rees as principal executive officer to serve until such time as the Board appoints a Chief Executive Officer of the Company, which it did effective January 28, 2015. Upon commencement of his employment, Mr. Rees was granted an RSU award representing to right to receive shares of our common stock equal to $197,534, based on the closing price of our common stock on the date immediately prior to his start date, which vests in three annual installments beginning on the first anniversary of his start date, subject to his continued employment with us as of each vesting date. In addition, Mr. Rees was granted an RSU award representing the right to receive shares of our common stock equal to $3,500,000, based on a 30 day weighted-average stock price as of May 13, 2014, and such RSU award shall vest based on achievement of certain share price levels before the fourth anniversary of his start date, subject to his continued employment with us. For calendar years after 2014, Mr. Rees is also eligible to participate in the Company’s long-term incentive plan, with a target grant value of no less than $700,000, except that the target grant value in 2015 shall be $897,534. | ||||||||||
Appointment of CEO | ||||||||||
On December 12, 2014, Gregg Ribatt was appointed our Chief Executive Officer, effective January 28, 2015. In connection with his appointment as Chief Executive Officer, Mr. Ribatt was granted a sign-on time-vesting RSU award representing the right to receive shares of our common stock equal to $2,000,000, based on a 30-day weighted-average stock price as of December 15, 2014. This time-vesting RSU award will vest in three annual installments beginning on the first anniversary of his start date, subject to his continued employment with us as of each vesting date. In addition, Mr. Ribatt was granted a sign-on performance-vesting RSU award, subject to various vesting criteria, representing the right to receive shares of our common stock equal to $6,000,000, based on a 30-day weighted-average stock price as of December 15, 2014. Based on a Monte-Carlo valuation model, the fair value of the RSU was determined to be $2.4 million, or 46.0% of the grant price, which will be expensed on a straight-line basis over a derived service period of 2.5 years, beginning in 2015. | ||||||||||
Allowances
Allowances | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Allowances [Abstract] | |||||||||||||
Allowances | 11. ALLOWANCES | ||||||||||||
The changes in the allowance for doubtful accounts and reserve for sales returns and allowances for the years ended December 31, 2014, 2013 and 2012, are as follows: | |||||||||||||
($ thousands) | Balance at Beginning of Year | Charged to costs and expenses | Reversals and Write-offs | Balance at End of Year | |||||||||
Year ended December 31, 2014: | |||||||||||||
Allowance for doubtful accounts | $ | 3,656 | $ | 12,087 | $ | -2,134 | $ | 13,609 | |||||
Reserve for sales returns and allowances | 6,857 | 23,099 | -11,173 | 18,783 | |||||||||
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 | |||||||||
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 | |||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Income Taxes [Abstract] | ||||||||||||||||||
Income Taxes | 12. INCOME TAXES | |||||||||||||||||
The following table sets forth income before taxes and the expense for income taxes for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||
December 31, | ||||||||||||||||||
($ thousands) | 2014 | 2013 | 2012 | |||||||||||||||
Income (loss) before taxes: | ||||||||||||||||||
U.S. | $ | -34,622 | $ | -7,818 | $ | 12,060 | ||||||||||||
Foreign | 26,073 | 67,777 | 133,488 | |||||||||||||||
Total income (loss) before taxes | -8,549 | 59,959 | 145,548 | |||||||||||||||
Income tax expense: | ||||||||||||||||||
Current income taxes | ||||||||||||||||||
U.S. federal | -12,049 | 3,311 | -6,364 | |||||||||||||||
U.S. state | -23 | 355 | 597 | |||||||||||||||
Foreign | 7,620 | 22,337 | 22,953 | |||||||||||||||
Total current income taxes | -4,452 | 26,003 | 17,186 | |||||||||||||||
Deferred income taxes: | ||||||||||||||||||
U.S. federal | 400 | 14,968 | -3,981 | |||||||||||||||
U.S. state | 236 | 3,639 | -4,016 | |||||||||||||||
Foreign | 193 | 4,929 | 5,016 | |||||||||||||||
Total deferred income taxes | 829 | 23,536 | -2,981 | |||||||||||||||
Total income tax expense (benefit) | $ | -3,623 | $ | 49,539 | $ | 14,205 | ||||||||||||
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 for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||
December 31, | ||||||||||||||||||
($ thousands) | 2014 | 2013 | 2012 | |||||||||||||||
Federal income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||||||||||||
State income tax rate, net of federal benefit | -30.4 | -0.6 | -2.7 | |||||||||||||||
Effects of rates different than statutory & rate change | -62.2 | -47.9 | -25 | |||||||||||||||
Non-deductible / Non-taxable items | 115.8 | 3.4 | 4.6 | |||||||||||||||
Change in valuation allowance | -62.8 | 35.6 | -8.4 | |||||||||||||||
U.S. tax on foreign earnings | -77.4 | 38.2 | 2.0 | |||||||||||||||
Uncertain tax positions | 294.4 | 6.8 | 3.5 | |||||||||||||||
Audit settlements | -157.3 | 5.1 | - | |||||||||||||||
Non-deductible write-off of intercompany debt | - | 1.9 | - | |||||||||||||||
Non-deductible impairment | - | 3.5 | - | |||||||||||||||
Write-off of income tax receivable | -18.4 | - | - | |||||||||||||||
Other | 5.7 | 1.6 | 0.8 | |||||||||||||||
Effective income tax rate | 42.4 | % | 82.6 | % | 9.8 | % | ||||||||||||
The following table sets forth deferred income tax assets and liabilities as of December 31, 2014 and 2013: | ||||||||||||||||||
December 31, | ||||||||||||||||||
($ thousands) | 2014 | 2013 | ||||||||||||||||
Current deferred tax assets: | ||||||||||||||||||
Accrued expenses | $ | 13,217 | $ | 13,108 | ||||||||||||||
Unrealized loss on foreign currency | 342 | 10 | ||||||||||||||||
Other | - | 1,364 | ||||||||||||||||
Valuation allowance | -7,008 | -5,139 | ||||||||||||||||
Total current deferred tax assets | $ | 6,551 | $ | 9,343 | ||||||||||||||
Current deferred tax liabilities: | ||||||||||||||||||
Unremitted earnings of foreign subsidiary | $ | -14,186 | $ | -16,102 | ||||||||||||||
Other | -44 | - | ||||||||||||||||
Total current deferred tax liabilities. | $ | -14,230 | $ | -16,102 | ||||||||||||||
Non-current deferred tax assets: | ||||||||||||||||||
Stock compensation expense | $ | 9,760 | $ | 9,652 | ||||||||||||||
Long-term accrued expenses | 6,773 | 3,811 | ||||||||||||||||
Net operating loss | 20,047 | 24,517 | ||||||||||||||||
Intangible assets | 1,517 | 895 | ||||||||||||||||
Property and equipment | 12,097 | 8,527 | ||||||||||||||||
Future uncertain tax position offset | 445 | 1,804 | ||||||||||||||||
Unrealized loss on foreign currency | - | 639 | ||||||||||||||||
Foreign tax credit | 6,259 | 8,524 | ||||||||||||||||
Other | 1,207 | 1,755 | ||||||||||||||||
Valuation allowance | -40,273 | -41,745 | ||||||||||||||||
Total non-current deferred tax assets | $ | 17,832 | $ | 18,379 | ||||||||||||||
Non-current deferred tax liabilities: | ||||||||||||||||||
Intangible assets | $ | - | $ | - | ||||||||||||||
Total non-current deferred tax liabilities | $ | - | $ | - | ||||||||||||||
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, 2014, we have provided for deferred U.S. income tax of $14.2 million on $65.8 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. | ||||||||||||||||||
As of December 31, 2014, U.S. income and foreign withholding taxes have not been provided on for approximately $450.4 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 $47.3 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. | ||||||||||||||||||
As of December 31, 2014, we had U.S. federal net operating loss carryforwards of $1.3 million, state net operating loss carryforwards of $109.5 million and foreign tax credits of $1.1 million which will expire at various dates between 2025 and 2035. We do not believe that it is more likely than not that the benefit from certain federal and state net operating losses and foreign tax credits will be realized. Consequently, we have a valuation allowance of $6.8 million on the deferred tax assets relating to these tax attributes. | ||||||||||||||||||
As of December 31, 2014, we have a foreign deferred tax asset of $19.5 million reflecting the benefit of $54.2 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 $19.5 million on the deferred tax assets relating to these foreign net operating loss carryforwards. | ||||||||||||||||||
We had approximately $10.2 million in net deferred tax assets as of December 31, 2014. Approximately $8.2 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 $35.5 million is required to realize the net deferred tax assets. | ||||||||||||||||||
As of December 31, 2014, approximately $0.4 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 $2.2 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 as of December 31, 2014 that arose directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting. Equity will be increased by $16.8 million if and when such deferred tax assets are ultimately realized. We use ASC 740 with-and-without ordering for purposes of determining when excess tax benefits have been realized. | ||||||||||||||||||
The following table sets forth a reconciliation of the beginning and ending amount of unrecognized tax benefits during the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||
($ thousands) | 2014 | 2013 | 2012 | |||||||||||||||
Unrecognized tax benefit—January 1 | $ | 31,616 | $ | 31,900 | $ | 44,537 | ||||||||||||
Gross increases—tax positions in prior period | 7 | 572 | - | |||||||||||||||
Gross decreases—tax positions in prior period | -3,711 | -2,086 | -425 | |||||||||||||||
Gross increases—tax positions in current period | 904 | 3,743 | 4,310 | |||||||||||||||
Settlements | -20,210 | -2,291 | -16,260 | |||||||||||||||
Lapse of statute of limitations | -162 | -222 | -262 | |||||||||||||||
Unrecognized tax benefit—December 31 | $ | 8,444 | $ | 31,616 | $ | 31,900 | ||||||||||||
Unrecognized tax benefits of $8.4 million, $31.6 million and $31.9 million as of December 31, 2014, 2013 and 2012, 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. For the years ended December 31, 2014, 2013 and 2012, we recorded approximately $0.8 million, $0.6 million and $0.6 million, respectively, of penalties and interest. We released $4.9 million of interest from settlements, lapse of statutes and change in certainty. The cumulative accrued balance of penalties and interest was $0.9 million, $5.0 million and $4.4 million, as of December 31, 2014, 2013 and 2012, 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 2014 of $0.9 million primarily includes specific transfer pricing exposures in various jurisdictions. The gross decrease for tax positions for prior periods in 2014 of $24.1 million are mostly the result of audits in several major jurisdictions including the US and Canada which are effectively settled. Although the timing of the resolution, settlement, and closure of any audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. However, given the number of years remaining that are subject to examination, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $8.4 million. | ||||||||||||||||||
The following table sets forth the remaining tax years subject to examination for the major jurisdictions where we conduct business as of December 31, 2014: | ||||||||||||||||||
Netherlands | 2007 | to | 2014 | |||||||||||||||
Canada | 2007 | to | 2014 | |||||||||||||||
Japan | 2008 | to | 2014 | |||||||||||||||
China | 2007 | to | 2014 | |||||||||||||||
Singapore | 2009 | to | 2014 | |||||||||||||||
United States | 2011 | to | 2014 | |||||||||||||||
State income tax returns are generally subject to examination for a period of three to five years after filing of the respective return. The state impact of any federal changes remains subject to examination by various state jurisdictions for a period up to two years after formal notification to the states. | ||||||||||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Earnings Per Share [Abstract] | ||||||||||
Earnings Per Share | 13. EARNINGS PER SHARE | |||||||||
The following table illustrates the basic and diluted earnings (loss) per share (“EPS”) computations for the years ended December 31, 2014, 2013 and 2012. See Note 1 – Organization & Summary of Significant Accounting Policies for additional detail regarding our EPS calculations. | ||||||||||
Year Ended December 31, | ||||||||||
($ thousands, except per share data) | 2014 | 2013 | 2012 | |||||||
Numerator | ||||||||||
Net income (loss) attributable to common stockholders | $ | -18,962 | $ | 10,420 | $ | 131,343 | ||||
Less: adjustment for income allocated to participating securities | - | -36 | -645 | |||||||
Net income (loss) attributable to common stockholders - basic and diluted | $ | -18,962 | $ | 10,384 | $ | 130,698 | ||||
Denominator | ||||||||||
Weighted average common shares outstanding - basic | 85,140 | 87,989 | 89,571 | |||||||
Plus: dilutive effect of stock options and unvested restricted stock units | - | 1,100 | 1,017 | |||||||
Weighted average common shares outstanding - diluted | 85,140 | 89,089 | 90,588 | |||||||
Net income (loss) attributable per common share: | ||||||||||
Basic | $ | -0.22 | $ | 0.12 | $ | 1.46 | ||||
Diluted | $ | -0.22 | $ | 0.12 | $ | 1.44 | ||||
For the years ended December 31, 2014, 2013 and 2012, 2.0 million, 1.0 million and 1.4 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, our Board approved the repurchase of up to $350.0 million of our common stock. This authorization effectively replaced our previous stock repurchase authorizations. The number, price, structure and timing of the repurchases will be at our sole discretion and future repurchases will be evaluated by us 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. Our Board may suspend, modify or terminate the repurchase program at any time without prior notice. | ||||||||||
During the year ended December 31, 2014, we repurchased approximately 10.6 million shares at a weighted-average price of $13.75 per share for an aggregate price of approximately $145.6 million excluding related commission charges under our 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 our publicly-announced repurchase plan. | ||||||||||
As of December 31, 2014, subject to certain restrictions on repurchases under our revolving credit facility, we had $202.1 million of our common shares available for repurchase under previously announced repurchase authorizations. | ||||||||||
Series_A_Preferred_Stock
Series A Preferred Stock | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Series A Preferred Stock [Abstract] | ||||
Series A Preferred Stock | ||||
14. SERIES A PREFERRED STOCK | ||||
On January 27, 2014, we issued to Blackstone, together with the Blackstone Purchasers, 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”), we received proceeds of $182.2 million after deducting the issuance discount of $2.0 million and direct and incremental expenses of $15.8 million including financial advisory fees, closing costs, legal expenses and other offering-related expenses. | ||||
Participation Rights and Dividends | ||||
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. As of December 31, 2014, we have accrued dividends of $3.1 million on the consolidated balance sheets, which were paid in cash to holders of the Series A Preferred Stock on January 2, 2015. 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. | ||||
Conversion Features | ||||
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 Series A Preferred Stock is convertible into 13,793,100 shares of our common stock based on the conversion rate in place as of December 31, 2014. The conversion rate is subject to the following customary anti-dilution and other adjustments: | ||||
1) | The occurrence of common stock dividends or distributions, stock splits or combinations, and equity reclassifications. | |||
2) | The distribution of rights, options, or warrants to all holders of common stock entitling them to purchase shares of common stock at a price per share that is less than the closing price of the Company’s common stock. | |||
3) | Pursuant to a tender offer or exchange offer to purchase outstanding shares of common stock for consideration valued at an amount greater than the closing price of the Company’s common stock. | |||
4) | If the Company distributes evidences of its indebtedness, assets, other property or securities or rights, options or warrants to acquire its Capital Stock. | |||
5) | If the Company has any stockholder rights plan in effect with respect to the common stock on the date of conversion, upon conversion of the Series A Preferred Stock, the holder will also receive (in addition to the common stock pursuant to the conversion) the rights under such rights plan, unless those rights (a) become exercisable before the conversion of the Series A Preferred Stock, or (b) are separated from the common stock (each a “Trigger Event”). Upon the occurrence of a Trigger Event, the Series A Preferred Stock conversion rate will be adjusted in accordance with 1) or 2) described above. | |||
6) | If the Company issues shares of common stock (or other instruments convertible into common stock) for valuable consideration, the conversion price is adjusted if (a) the offering price is less than the conversion price and (b) if the offering is at a price less than the fair market value of the Company’s common stock on the date of issuance. | |||
Redemption Features | ||||
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. | ||||
In accordance with FASB ASC Topic 480-10-S99-3A, SEC Staff Announcement: Classification and Measurement of Redeemable Securities, redemption features which are not solely within the control of the issuer are required to be presented outside of permanent equity on the consolidated balance sheets. Under the Investment Agreement and as noted above, the holder has the option to redeem the Series A Preferred Stock any time after January 27, 2022 or upon a change in control. As such, the Series A Preferred Stock is presented in temporary or mezzanine equity on the consolidated balance sheets and will be accreted up to the stated redemption value of $203.1 million using an appropriate accretion method over a redemption period of eight years, as this represents the earliest probable date at which the Series A Preferred Stock will become redeemable. | ||||
Commitments_Contingencies
Commitments & Contingencies | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Commitments & Contingencies [Abstract] | ||||||||||||||||
Commitments & Contingencies | 15. 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, 2014, are as follows (in thousands): | ||||||||||||||||
Fiscal years ending December 31, | ||||||||||||||||
2015 | $ | 79,087 | ||||||||||||||
2016 | 56,688 | |||||||||||||||
2017 | 42,911 | |||||||||||||||
2018 | 34,473 | |||||||||||||||
2019 | 29,481 | |||||||||||||||
Thereafter | 115,071 | |||||||||||||||
Total minimum lease payments (1) | $ | 357,711 | ||||||||||||||
(1)Minimum lease payments have not been reduced by minimum sublease rentals of $1.0 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, 2014, 2013 and 2012 (in thousands): | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Minimum rentals (1) | $ | 108,466 | $ | 101,721 | $ | 84,671 | ||||||||||
Contingent rentals | 16,875 | 18,178 | 16,519 | |||||||||||||
Less: Sublease rentals | -868 | -646 | -619 | |||||||||||||
Total rent expense | $ | 124,473 | $ | 119,253 | $ | 100,571 | ||||||||||
(1)Minimum rentals include all lease payments as well as fixed and variable common area maintenance (“CAM”), parking and storage fees, which were approximately $9.6 million, $9.7 million and $8.5 million during the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||
Purchase Commitments | ||||||||||||||||
As of December 31, 2014 and 2013, we had firm purchase commitments with certain third-party manufacturers of $202.3 million and $172.3 million, respectively. | ||||||||||||||||
In December 2011, we renewed and amended our supply agreement with Finproject S.p.A. (formerly known as 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, 2016. 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 was either based on contracted price or was 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 $4.3 million as of December 31, 2014), through a letter of credit that was issued to Finproject S.p.A. | ||||||||||||||||
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, Brazil’s 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 and amended tax returns. Brazil is making court-ordered payments to holders of the Brazil obligations along with accrued interest. We anticipate that the Brazil obligations (plus accrued interest) will be paid by Brazil in accordance with the court-orders, however, during the year ended December 31, 2014, we reserved the entire carrying balance of the Brazil obligation. The net impact of the above is a $3.5 million charge to operating income recorded during the year ended December 31, 2014. As of December 31, 2013, the carrying balance of the Brazil obligations was $3.5 million, which was recorded in ‘Other assets’ on the consolidated balance sheets. The net impact of the above is a $6.1 million charge to operating income recorded during the year ended December 31, 2013. | ||||||||||||||||
In April 2014, we received a final notice of assessment on transfer pricing items from the Canadian tax authorities, which closed the ongoing audit of our Canada operations through 2011. The assessment, along with the estimated impact on certain Canadian provinces, was less than the amount of the uncertain tax benefits recorded, and therefore, resulted in a net tax benefit of approximately | ||||||||||||||||
$2.3 million in the quarter ended June 30, 2014. We have paid the assessment, which included tax and interest for the tax periods through December 31, 2011. | ||||||||||||||||
See Note 17 – Legal Proceedings for further details regarding potential loss contingencies related to government tax audits and other current legal proceedings. | ||||||||||||||||
Operating_Segments_Geographic_
Operating Segments & Geographic Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Operating Segments & Geographic Information [Abstract] | |||||||||||||||||
Operating Segments & Geographic Information | 16. OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION | ||||||||||||||||
For 2014, 2013 and 2012, we had 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 chief operating decision maker, (“CODM”) to evaluate performance and allocate resources. | |||||||||||||||||
During the first quarter of 2013, we adjusted our operating segment structure for internal reports reviewed by the CODM by presenting Japan separate from the Asia Pacific segment. This change was made due to the volatility of the Japanese yen and the macroeconomic environment within Japan as well as negative sales growth compared to the rest of the Asia Pacific segment, which resulted in the need for a regular review of the operating results of Japan by management and the CODM in order to better evaluate performance and allocate resources for the consolidated business. Results from operations for the year ended December 31, 2012 was restated for this change. | |||||||||||||||||
Subsequent to December 31, 2014, we have determined that for fiscal 2015, our internal reports reviewed by the CODM will revert back to include Japan in the Asia Pacific segment. This change is to align reporting to our new strategic model and management structure, as Japan and Asia Pacific will be managed and analyzed as one operating segment by management and the CODM, to better allocate resources. Therefore, there will be three reportable operating segments for 2015. | |||||||||||||||||
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, 2014, 2013 and 2012: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
($ thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Revenues: | |||||||||||||||||
Americas | $ | 489,915 | $ | 498,552 | $ | 495,852 | |||||||||||
Asia Pacific | 350,449 | 342,752 | 292,846 | ||||||||||||||
Japan | 123,461 | 134,863 | 164,565 | ||||||||||||||
Europe | 233,604 | 216,259 | 169,464 | ||||||||||||||
Total segment revenues | 1,197,429 | 1,192,426 | 1,122,727 | ||||||||||||||
Other businesses | 794 | 254 | 574 | ||||||||||||||
Total consolidated revenues | $ | 1,198,223 | $ | 1,192,680 | $ | 1,123,301 | |||||||||||
Operating income: | |||||||||||||||||
Americas | $ | 48,347 | -1 | $ | 61,894 | -1 | $ | 85,538 | -1 | ||||||||
Asia Pacific | 47,753 | -2 | 80,693 | -2 | 74,535 | ||||||||||||
Japan | 27,382 | -3 | 37,560 | -3 | 66,293 | ||||||||||||
Europe | 24,517 | -4 | 16,192 | 21,678 | |||||||||||||
Total segment operating income | 147,999 | 196,339 | 248,044 | ||||||||||||||
Reconciliation of total segment operating income to income before income taxes: | |||||||||||||||||
Other businesses | -19,400 | -20,811 | -10,805 | ||||||||||||||
Intersegment eliminations | -1,498 | 61 | 60 | ||||||||||||||
Unallocated corporate and other (5) | -131,827 | -112,494 | -91,125 | ||||||||||||||
Total consolidated operating income (loss) | -4,726 | 63,095 | 146,174 | ||||||||||||||
Foreign currency transaction gains, net | 4,885 | 4,678 | 2,500 | ||||||||||||||
Interest income | -1,664 | -2,432 | -1,697 | ||||||||||||||
Interest expense | 806 | 1,016 | 837 | ||||||||||||||
Other income, net | -204 | -126 | -1,014 | ||||||||||||||
Income (loss) before income taxes | $ | -8,549 | $ | 59,959 | $ | 145,548 | |||||||||||
Depreciation and amortization: | |||||||||||||||||
Americas | $ | 11,670 | $ | 10,384 | $ | 9,849 | |||||||||||
Asia Pacific | 5,186 | 5,032 | 4,869 | ||||||||||||||
Japan | 1,538 | 1,454 | 2,053 | ||||||||||||||
Europe | 3,761 | 5,108 | 3,116 | ||||||||||||||
Total segment depreciation and amortization | 22,155 | 21,978 | 19,887 | ||||||||||||||
Other businesses | 5,900 | 8,002 | 7,003 | ||||||||||||||
Unallocated corporate and other (5) | 9,358 | 11,526 | 9,804 | ||||||||||||||
Total consolidated depreciation and amortization | $ | 37,413 | $ | 41,506 | $ | 36,694 | |||||||||||
-1 | Includes $4.0 million, $3.9 million and $1.4 million for the years ended December 31, 2014, 2013 and 2012, respectively, of asset impairment charges related to 36, 23 and four underperforming retail locations, respectively. | ||||||||||||||||
-2 | Includes $2.8 million and $0.2 million for the year ended December 31, 2014 and 2013, respectively, of asset impairment charges related to 14 and two underperforming retail locations, respectively. | ||||||||||||||||
-3 | Includes $6.6 million for the year ended December 31, 2013 of asset impairment charges related to 35 underperforming retail locations. | ||||||||||||||||
-4 | Includes $2.0 million for the year ended December 31, 2014 of asset impairment charges related to 27 underperforming retail locations. | ||||||||||||||||
-5 | Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, restructuring, depreciation and amortization of corporate and other assets not allocated to operating segments and costs of the same nature related to certain corporate holding companies. See Note 6 – Restructuring for additional details. | ||||||||||||||||
The following table sets forth asset information related to our reportable operating business segments as of December 31, 2014 and December 31, 2013: | |||||||||||||||||
December 31, | |||||||||||||||||
($ thousands) | 2014 | 2013 | |||||||||||||||
Assets: | |||||||||||||||||
Americas | $ | 127,077 | $ | 139,855 | |||||||||||||
Asia Pacific | 166,878 | 177,343 | |||||||||||||||
Japan | 34,032 | 51,155 | |||||||||||||||
Europe | 166,285 | 137,701 | |||||||||||||||
Total segment current assets | 494,272 | 506,054 | |||||||||||||||
Other businesses | 18,132 | 14,093 | |||||||||||||||
Unallocated corporate and other(1) | 27,337 | 63,743 | |||||||||||||||
Deferred tax assets, net | 4,190 | 4,440 | |||||||||||||||
Income tax receivable | 9,332 | 10,630 | |||||||||||||||
Other receivables | 11,989 | 11,942 | |||||||||||||||
Prepaid expenses and other current assets | 30,156 | 29,175 | |||||||||||||||
Total current assets | 595,408 | 640,077 | |||||||||||||||
Property and equipment, net | 68,288 | 86,971 | |||||||||||||||
Intangible assets, net | 97,337 | 72,314 | |||||||||||||||
Goodwill | 2,044 | 2,508 | |||||||||||||||
Deferred tax assets, net | 17,886 | 19,628 | |||||||||||||||
Other assets | 25,968 | 53,661 | |||||||||||||||
Total consolidated assets | $ | 806,931 | $ | 875,159 | |||||||||||||
(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, 2014, 2013 and 2012. The following table sets forth certain geographical and other information regarding our revenues during the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
($ thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Product: | |||||||||||||||||
Footwear | $ | 1,169,247 | $ | 1,155,377 | $ | 1,076,210 | |||||||||||
Other | 28,976 | 37,303 | 47,091 | ||||||||||||||
Total revenues | $ | 1,198,223 | $ | 1,192,680 | $ | 1,123,301 | |||||||||||
Location: | |||||||||||||||||
United States | $ | 435,154 | $ | 401,948 | $ | 396,121 | |||||||||||
International | 763,069 | 790,732 | 727,180 | ||||||||||||||
Total revenues | $ | 1,198,223 | $ | 1,192,680 | $ | 1,123,301 | |||||||||||
Foreign country revenues in excess of 10% of total revenues: | |||||||||||||||||
Japan | $ | 123,461 | $ | 134,863 | $ | 164,565 | |||||||||||
The following table sets forth geographical information regarding our property and equipment assets as of December 31, 2014 and 2013: | |||||||||||||||||
December 31, | |||||||||||||||||
($ thousands) | 2014 | 2013 | |||||||||||||||
Location: | |||||||||||||||||
United States | $ | 45,046 | $ | 56,262 | |||||||||||||
International | 23,242 | 30,709 | |||||||||||||||
Total long-lived assets(1) | $ | 68,288 | $ | 86,971 | |||||||||||||
(1)Not more than 10% of our long-lived assets resided in any individual foreign country in 2014 or 2013. | |||||||||||||||||
Legal_Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2014 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | 17. LEGAL PROCEEDINGS |
We and certain current and former officers and directors were 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 purported to state claims under Sections 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 alleged 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 claimed that certain current and former officers and directors traded in our common stock on the basis of material non-public information. The amended complaint sought compensatory damages on behalf of the alleged class in an unspecified amount, including interest, and also sought 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 entered into a Stipulation of Settlement with the plaintiffs to resolve all claims asserted against us by the plaintiffs on behalf of the putative class. Our independent auditor was not a party to the Stipulation of Settlement. The Stipulation of Settlement received preliminary approval from the District Court on August 28, 2013. On September 18, 2014, the District Court entered an order of final approval of the settlement and, on September 19, 2014, the District Court entered final judgment dismissing the action against us and those current and former officers and directors named as defendants in its entirety with prejudice. The full settlement amount has been paid by our insurers. Since no notice of appeal was filed during the appeal period, this action is now terminated as to Crocs and its affiliated individuals. Crocs considers this matter closed. | |
We are currently subject to an audit by U.S. Customs & Border Protection (“CBP”) in respect of the period from 2006 to 2010. In October 2013, CBP issued the final audit report. In that report CBP projects that unpaid duties totaling approximately $12.4 million are due for the period under review and recommends collection of the duties due. We responded that these projections are erroneous and provided arguments that demonstrate the amount due in connection with this matter is considerably less than the projection. Additionally, on December 12, 2014, we made an offer to settle CBP’s potential claims and tendered $3.5 million. At this time, it is not possible to determine how long it will take CBP to evaluate our offer or to predict whether our offer will be accepted. Likewise, if a settlement cannot be reached, it is not possible to predict with any certainty whether CBP will seek to assert a claim for penalties in addition to any unpaid duties, but such an assertion is a possibility. | |
Mexico’s Federal Tax Authority (“SAT”) has audited the company’s records regarding imports and exports during 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. On November 27, 2014, the Superior Chamber of the Federal Tax Court ruled in favor of Crocs and annulled the tax assessment and the corresponding penalty. Crocs anticipates that the SAT will appeal this ruling. It is not possible at this time to predict the outcome of this matter or reasonably estimate any potential loss. | |
Crocs is currently subject to an audit by the Brazilian Federal Tax Authorities related to imports of footwear from China between 2010-2014. On January 13, 2015 Crocs was notified about the issuance of assessments totaling roughly $5.25 million for the period January 2010 through May 2011. Crocs has disputed these assessments and asserted defenses to the claims. On February 25, 2015, Crocs received additional assessments totaling roughly $11.54 million related to the remainder of the audit period. Crocs is in the process of reviewing these assessments, however, it expects to contest and file defenses to these claims as well. It is not possible at this time to predict the outcome of this matter. | |
As of December 31, 2014, we have accrued a total of $5.1 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 $0.0 million and $9.1 million in the aggregate, in excess of the amount accrued. | |
Although we are subject to other litigation from time to time in the ordinary course of business, including employment, intellectual property and product liability claims, we are not party to any other pending legal proceedings that we believe would reasonably have a material adverse impact on our business, financial position, results of operations or cash flows. | |
Unaudited_Quarterly_Consolidat
Unaudited Quarterly Consolidated Financial Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Unaudited Quarterly Consolidated Financial Information [Abstract] | |||||||||||||
Unaudited Quarterly Consolidated Financial Information | 18. UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL INFORMATION | ||||||||||||
For the Quarter Ended | |||||||||||||
($ thousands, except per share data) | 31-Mar-14 | 30-Jun-14 | 30-Sep-14 | 31-Dec-14 | |||||||||
Revenues | $ | 312,429 | $ | 376,920 | $ | 302,401 | $ | 206,473 | |||||
Gross profit | $ | 156,227 | $ | 202,571 | $ | 155,017 | $ | 76,530 | |||||
Restructuring | $ | 2,250 | $ | 4,060 | $ | 7,585 | $ | 6,637 | |||||
Asset impairment charges | $ | - | $ | 3,230 | $ | 2,600 | $ | 2,997 | |||||
Income (loss) from operations | $ | 16,822 | $ | 41,911 | $ | 1,113 | $ | -64,572 | |||||
Net income (loss) | $ | 9,124 | $ | 23,277 | $ | 15,767 | $ | -53,094 | |||||
Net income (loss) attributable to common stockholders | $ | 6,373 | $ | 19,523 | $ | 12,009 | $ | -56,867 | |||||
Basic income (loss) per common share | $ | 0.06 | $ | 0.19 | $ | 0.12 | $ | -0.7 | |||||
Diluted income (loss) per common share | $ | 0.06 | $ | 0.19 | $ | 0.12 | $ | -0.7 | |||||
For the Quarter Ended | |||||||||||||
($ thousands, except per share data) | 31-Mar-13 | 30-Jun-13 | 30-Sep-13 | 31-Dec-13 | |||||||||
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 | |||||
During the three months ended December 31, 2014, we recorded the following charges that affect the comparability of information between periods: | |||||||||||||
· | Inventory write-down charges of $10.0 million related to obsolete inventory including raw materials, footwear and accessories. See Note 2 – Inventories for further discussions regarding these charges. | ||||||||||||
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 12 – 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 17 – 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 19 – Subsequent Events for further discussions regarding these charges. | ||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | |
19. 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. | |
Recovered_Sheet2
Organization & Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
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 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, 2014 and 2013, the consolidated financial statements included $3.3 million and $2.4 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 December 31, 2014 and 2013 were partially offset by $0.4 million and $0.2 million in total liabilities, respectively, which primarily consisted of accounts payable and accrued expenses, excluding liabilities related to the support provided by us. | ||
Noncontrolling Interests | Noncontrolling Interests—As of December 31, 2014, all of our subsidiaries were, in substance, wholly owned. | |
Concentrations Of Risk | 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, 2014, we held $247.6 million of our total $267.5 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 $247.6 million held in international locations, $10.8 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 14—Series A Preferred Stock for further detail regarding the investment agreement. | ||
Accounts receivable—We have not experienced significant losses in such accounts in prior years, however, as of December 31, 2014, we recorded a reserve for doubtful accounts of $11.5 million in our Asia Pacific segment primarily as a result of delayed payments from our partner stores in China and Southeast Asia and a reserve for rebates on a consolidated basis of $11.6 million primarily related to our Asia Pacific region. As of December 31, 2013, our reserve for doubtful accounts was $3.7 million and the rebates reserve was $1.4 million. Generally, 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. See Note 11—Allowances for further detail. | ||
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. | ||
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, customer rebates, 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 15—Commitments & Contingencies and Note 17—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 any derivative instruments, should we enter into them, would be 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 7—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. See Note 11—Allowances for further discussion related to provisions for doubtful accounts and sale returns and allowances. | |
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. | ||
Intangible Assets & Goodwill | 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 policy | 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 a security that may participate in undistributed earnings with common stock had those earnings been distributed in any form. Our recently issued Series A convertible preferred stock (“Series A Preferred Stock”) represents participating securities as holders of the Series A Preferred Stock are entitled to receive any and all dividends declared or paid on common stock on an as-converted basis. In addition, shares of our non-vested restricted stock awards are considered participating securities as they represent unvested share-based payment awards containing non-forfeitable rights to dividends. As such, these participating securities must be included in the computation of EPS pursuant to the two-class method on a pro-rata, as-converted basis. Diluted EPS reflects the potential dilution from securities that could share in our earnings. In addition, the dilutive effect of each participating security is calculated using the more dilutive of the two-class method described above, which assumes that the securities remain in their current form, or the if-converted method, which assumes conversion to common stock as of the beginning of the reporting date. Anti-dilutive securities are excluded from diluted EPS. See Note 13—Earnings Per Share for further discussion. | |
Beneficial Conversion Feature | Beneficial conversion feature — The issuance of our Series A Preferred Stock generated a beneficial conversion feature, which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor or in the money at inception because the conversion option has an effective strike price that is less than the market price of the underlying stock at the commitment date. We recognized the beneficial conversion feature by allocating the intrinsic value of the conversion option, which is the number of shares of common stock available upon conversion multiplied by the difference between the effective conversion price per share and the fair value of common stock per share on the commitment date, to additional paid-in capital, resulting in a discount on the Series A Preferred Stock. We are accreting the discount over eight years from the date of issuance through the redemption date. Accretion expense will be recognized as dividend equivalents over the eight year period utilizing the effective interest method. | |
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 Company’s Board of Directors (the “Board”) 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 10—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. Our expense related to the matching contributions to the Plan was $7.1 million, $6.8 million and $5.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Advertising | Advertising—Advertising costs are expensed as incurred and production costs are 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 $44.7 million, $47.6 million and $39.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
Research and Development | Research and Development—Research and development costs are expensed as incurred. Research and development expenses amounted to $16.7 million, $15.4 million and $12.0 million for the years ended December 31, 2014, 2013 and 2012, 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 12—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 | |
Discontinued Operations | ||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08: Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends the definition of a discontinued operation in ASC 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. The FASB issued the ASU to provide more decision-useful information and to make it more difficult for a disposal transaction to qualify as a discontinued operation. Under the previous guidance, the results of operations of a component of an entity were classified as a discontinued operation if all of the following conditions were met: | ||
The component has been disposed of or is classified as held for sale. | ||
The operations and cash flows of the component have been (or will be) eliminated from the ongoing operations of the entity as a result of the disposal transaction. | ||
The entity will not have any significant continuing involvement in the operations of the component after the disposal transaction. | ||
The new guidance eliminates the second and third criteria above and instead requires discontinued operations treatment for disposals of a component or group of components that represents a strategic shift that has or will have a major impact on an entity’s operations or financial results. The ASU also expands the scope of ASC 205-20 to disposals of equity method investments and businesses that, upon initial acquisition, qualify as held for sale. In addition, the ASU requires entities to reclassify assets and liabilities of a discontinued operation for all comparative periods presented in the statement of financial position. Before these amendments, ASC 205-20 neither required nor prohibited such presentation. Regarding the statement of cash flows, an entity must disclose, in all periods presented, either (1) operating and investing cash flows or (2) depreciation and amortization, capital expenditures, and significant operating and investing noncash items related to the discontinued operation. This presentation requirement represents a significant change from previous guidance. This ASU is effective prospectively for all disposals or components initially classified as held for sale in periods beginning on or after December 15, 2014. Early adoption is permitted. The adoption of this pronouncement did not have a material impact to the Company’s consolidated financial statements. | ||
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements | |
Going Concern | ||
On August 27, 2014, the FASB issued ASU 2014-15, which provides guidance on determining when and how reporting entities must disclose going concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements (or within one year after the date on which the financial statements are available to be issued, when applicable). Further, an entity must provide certain disclosures if there is “substantial doubt about the entity’s ability to continue as a going concern.” | ||
The FASB believes that requiring management to perform the assessment will enhance the timeliness, clarity and consistency of related disclosures and improve convergence with IFRSs (which emphasize management’s responsibility for performing the going concern assessment). However, the time horizon for the assessment (look-forward period) and the disclosure thresholds under U.S. GAAP and IFRSs will continue to differ. This ASU is effective for annual periods ending after December 16, 2016, and interim periods thereafter; early adoption is permitted. The Company does not believe that this pronouncement will have a material impact on our financial statement disclosures. | ||
Share-Based Payment | ||
On June 19, 2014, the FASB issued ASU 2014-12 in response to the EITF consensus on Issue 13-D. The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. This ASU is effective for all entities for reporting periods (including interim periods) beginning after December 15, 2015. The Company does not believe that this pronouncement will have a material impact to the Company’s consolidated financial statements. | ||
Revenue Recognition | ||
In May 2014, the FASB issued their final standard on revenue from contracts with customers. The standard, issued as ASU No. 2014-09: Revenue from Contracts with Customers (Topic 606) by the FASB, outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In applying the revenue model to contracts within its scope, an entity: | ||
Identifies the contract(s) with a customer (Step 1) | ||
Identifies the performance obligations in the contract (Step 2) | ||
Determines the transaction price (Step 3) | ||
Allocates the transaction price to the performance obligations in the contract (Step 4) | ||
Recognizes revenue when (or as) the entity satisfies a performance obligation (Step 5) | ||
The ASU applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. Certain of the ASU’s provisions also apply to transfers of nonfinancial assets, including in-substance nonfinancial assets that are not an output of an entity’s ordinary activities (e.g., sales of property, plant, and equipment, real estate or intangible assets). Existing accounting guidance applicable to these transfers has been amended or superseded. Compared with current U.S. GAAP, the ASU also requires significantly expanded disclosures about revenue recognition. | ||
The ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early application is not permitted. The Company is currently evaluating the impact that this pronouncement will have on the Company’s consolidated financial statements. | ||
Recovered_Sheet3
Accrued Expenses and Other Current Liabilities (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
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, 2014 | ||
Organization & Summary Of Significant Accounting Policies [Abstract] | ||
Intangible Assets Useful Lives | 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, 2014 | ||||||||||
Inventories [Abstract] | ||||||||||
Schedule of Inventory | ||||||||||
($ thousands) | 2014 | 2013 | ||||||||
Finished goods | $ | 167,515 | $ | 154,272 | ||||||
Work-in-progress | 703 | 685 | ||||||||
Raw materials | 2,794 | 7,384 | ||||||||
Inventories | $ | 171,012 | $ | 162,341 | ||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Property And Equipment [Abstract] | |||||||||||||||||
Schedule of Property and Equipment | December 31, | ||||||||||||||||
($ thousands) | 2014 | 2013 | |||||||||||||||
Machinery and equipment | $ | 48,989 | $ | 52,003 | |||||||||||||
Leasehold improvements | 91,962 | 93,235 | |||||||||||||||
Furniture, fixtures and other | 23,818 | 23,653 | |||||||||||||||
Construction-in-progress | 3,318 | 16,231 | |||||||||||||||
Property and equipment, gross (1) | 168,087 | 185,122 | |||||||||||||||
Less: Accumulated depreciation (2) | -99,799 | -98,151 | |||||||||||||||
Property and equipment, net | $ | 68,288 | $ | 86,971 | |||||||||||||
(1)Includes $0.2 million and $0.2 million of certain equipment held under capital leases and classified as equipment as of each of December 31, 2014 and 2013, respectively. | |||||||||||||||||
(2)Includes $0.1 million of accumulated depreciation related to certain equipment held under capital leases, as of each of December 31, 2014 and 2013, which are depreciated using the straight-line method over the lease term. During the year ended December 31, 2014, approximately $17.5 million of accumulated depreciation was related to assets that were written off or disposed. | |||||||||||||||||
Schedule of Asset Impairments | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
($ thousands, except store count data) | Impairment charge | Number of stores | Impairment charge | Number of stores | Impairment charge | Number of stores | |||||||||||
Americas | $ | 4,001 | 36 | $ | 3,861 | 23 | $ | 1,410 | 4 | ||||||||
Asia Pacific | 2,807 | 14 | 185 | 2 | - | - | |||||||||||
Japan | - | - | - | - | - | - | |||||||||||
Europe | 2,019 | 27 | 6,565 | 35 | - | - | |||||||||||
Asset impairment charges | $ | 8,827 | 77 | $ | 10,611 | 60 | $ | 1,410 | 4 | ||||||||
Goodwill_Intangible_Assets_Tab
Goodwill & Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Goodwill & Intangible Assets [Abstract] | ||||||||||||||||||||||
Schedule of Goodwill & Intangible Assets | ||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||
($ thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||
Capitalized software | $ | 157,615 | -1 | $ | -62,591 | -2 | $ | 95,024 | $ | 118,940 | -1 | $ | -49,665 | -2 | $ | 69,275 | ||||||
Customer relationships | 5,945 | -5,798 | 147 | 6,878 | -6,439 | 439 | ||||||||||||||||
Patents, copyrights, and trademarks | 6,702 | -4,931 | 1,771 | 6,501 | -4,272 | 2,229 | ||||||||||||||||
Core technology | 4,170 | -4,170 | - | 4,548 | -4,548 | - | ||||||||||||||||
Other | 698 | -636 | 62 | 983 | -709 | 274 | ||||||||||||||||
Total finite lived intangible assets | 175,130 | -78,126 | 97,004 | 137,850 | -65,633 | 72,217 | ||||||||||||||||
Indefinite lived intangible assets | 333 | - | 333 | 97 | - | 97 | ||||||||||||||||
Goodwill(3) | 2,044 | - | 2,044 | 2,508 | - | 2,508 | ||||||||||||||||
Goodwill and intangible assets | $ | 177,507 | $ | -78,126 | $ | 99,381 | $ | 140,455 | $ | -65,633 | $ | 74,822 | ||||||||||
(1)Includes $4.1 million of software held under a capital lease classified as capitalized software as of each of December 31, 2014 and 2013. During 2013, we began an implementation of a new enterprise resource planning, (“ERP”) system, and in 2014, we continued this implementation. Certain costs associated with the new ERP system were capitalized in both periods. The majority of the ERP system was placed into service during 2015. | ||||||||||||||||||||||
(2)Includes $2.5 million and $1.9 million of accumulated amortization of software held under a capital lease as of December 31, 2014 and 2013, respectively, which is amortized using the straight-line method over the useful life. | ||||||||||||||||||||||
(3)Change in goodwill relates entirely to foreign currency translation. | ||||||||||||||||||||||
Schedule of Future Amortization of Intangible Assets | ||||||||||||||||||||||
Amortization | ||||||||||||||||||||||
Fiscal years ending December 31, | ($ thousands) | |||||||||||||||||||||
2015 | $ | 20,198 | ||||||||||||||||||||
2016 | 19,376 | |||||||||||||||||||||
2017 | 13,825 | |||||||||||||||||||||
2018 | 12,334 | |||||||||||||||||||||
2019 | 10,844 | |||||||||||||||||||||
Thereafter | 20,427 | |||||||||||||||||||||
Total | $ | 97,004 | ||||||||||||||||||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accrued Expenses And Other Current Liabilities [Abstract] | |||||||||||
Schedule of Accrued Expenses & Other Current Liabilities | |||||||||||
December 31, | |||||||||||
($ thousands) | 2014 | 2013 | |||||||||
Accrued compensation and benefits | $ | 23,824 | $ | 26,903 | |||||||
Professional services | 16,212 | 14,128 | |||||||||
Fulfillment, freight and duties | 12,110 | 12,565 | |||||||||
Sales/use and VAT tax payable | 5,897 | 9,142 | |||||||||
Accrued rent and occupancy | 9,675 | 12,198 | |||||||||
Customer deposits | 3,075 | 6,940 | |||||||||
Dividend payable | 3,067 | - | |||||||||
Accrued legal liabilities | 2,150 | 8,722 | |||||||||
Other (1) | 4,206 | 6,513 | |||||||||
Total accrued expenses and other current liabilities | $ | 80,216 | $ | 97,111 | |||||||
(1)The amounts in Other consist of various accrued expenses and no individual item accounted for more than 5% of the total balance as of December 31, 2014 or 2013. | |||||||||||
Restructuring_Activities_Table
Restructuring Activities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Restructuring Activities [Abstract] | ||||||||||||||||
Schedule of restructuring costs by type | Year Ended December 31, | |||||||||||||||
($ thousands) | 2014 | 2013 | ||||||||||||||
Severance costs | $ | 12,500 | $ | - | ||||||||||||
Lease / contract exit and related costs | 4,251 | - | ||||||||||||||
Other (1) | 7,766 | - | ||||||||||||||
Total restructuring charges | $ | 24,517 | $ | - | ||||||||||||
(1)The amounts in ‘Other’ consist of various asset and inventory impairment charges prompted by the aforementioned restructuring plan, legal fees and facility maintenance fees. | ||||||||||||||||
Schedule of restructuring costs by segment | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
($ thousands) | 2014 | 2013 | ||||||||||||||
Americas | $ | 4,259 | $ | - | ||||||||||||
Asia Pacific | 6,816 | - | ||||||||||||||
Japan | 606 | |||||||||||||||
Europe | 3,934 | - | ||||||||||||||
Corporate | 8,902 | - | ||||||||||||||
Total restructuring charges | $ | 24,517 | $ | - | ||||||||||||
Schedule of restructuring reserve by type | ||||||||||||||||
Accrued | Accrued | |||||||||||||||
Restructuring as of | Restructuring as of | |||||||||||||||
($ thousands) | 31-Dec-13 | Additions | Cash payments | Adjustments (1) | 31-Dec-14 | |||||||||||
Severance | $ | - | $ | 13,287 | $ | -9,329 | $ | -804 | $ | 3,154 | ||||||
Lease / contract exit and related costs | - | 4,252 | -2,756 | -95 | 1,401 | |||||||||||
Other | - | 1,352 | -1,028 | -20 | 304 | |||||||||||
Total accrued restructuring | $ | - | $ | 18,891 | $ | -13,113 | $ | -919 | $ | 4,859 | ||||||
(1)Adjustments relate to a reversal of accrued expenses, differences resulting from the translation of the liability balance as of the balance sheet rate and restructuring expense translated at the weighted-average rate of exchange for the applicable period. | ||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||
Schedule of Fair Value Measurements on a Recurring Basis | |||||||||||||||
Fair Value as of December 31, 2014 | |||||||||||||||
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 | $ | 23,326 | $ | - | $ | - | $ | 23,326 | Cash and cash equivalents and other current assets | ||||||
Derivative assets: | |||||||||||||||
Foreign currency contracts | $ | - | $ | - | $ | - | $ | - | Prepaid expenses and other current assets | ||||||
Derivative liabilities: | |||||||||||||||
Foreign currency contracts | $ | - | $ | - | $ | - | $ | - | Accrued expense and other current liabilities | ||||||
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 | ||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Derivative Financial Instruments [Abstract] | ||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ||||||||||||||||||
December 31, | ||||||||||||||||||
($ thousands) | 2014 | 2013 | ||||||||||||||||
Foreign currency exchange forward contracts by currency: | ||||||||||||||||||
Euro | $ | 134,755 | $ | 38,577 | ||||||||||||||
Singapore Dollar | 61,887 | 28,225 | ||||||||||||||||
Japanese Yen | 44,533 | 68,707 | ||||||||||||||||
British Pound Sterling | 17,230 | 15,487 | ||||||||||||||||
South Korean Won | 14,590 | 12,100 | ||||||||||||||||
Mexican Peso | 13,180 | 18,350 | ||||||||||||||||
Australian Dollar | 7,913 | 4,941 | ||||||||||||||||
Chinese Yuan Renminbi | 5,376 | - | ||||||||||||||||
South African Rand | 4,355 | 3,076 | ||||||||||||||||
Indian Rupee | 3,356 | 2,150 | ||||||||||||||||
New Taiwan Dollar | 3,229 | 3,463 | ||||||||||||||||
Canadian Dollar | 3,005 | 3,428 | ||||||||||||||||
Swedish Krona | 1,918 | 1,615 | ||||||||||||||||
Russian Ruble | 1,838 | 17,588 | ||||||||||||||||
Norwegian Krone | 917 | - | ||||||||||||||||
Hong Kong Dollar | 814 | 1,844 | ||||||||||||||||
New Zealand Dollar | 743 | 943 | ||||||||||||||||
Total notional value, net | $ | 319,639 | $ | 220,494 | ||||||||||||||
Latest maturity date | Jan-15 | Dec-15 | ||||||||||||||||
Schedule of Derivative Instrument Gain (Loss) | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
($ thousands) | 2014 | 2013 | 2012 | Location of Gain (Loss) Recognized in Income on Derivatives | ||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||
Foreign currency exchange forwards | $ | 3,788 | $ | -13,002 | $ | -7,200 | Foreign currency transaction (gains) losses, net | |||||||||||
Revolving_Credit_Facility_Bank1
Revolving Credit Facility & Bank Borrowings (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Revolving Credit Facility & Bank Borrowings [Abstract] | |||
Schedule of Maturities of Long-Term Debt | |||
Fiscal years ending December 31, | |||
2015 | $ | 5,271 | |
2016 | 4,765 | ||
2017 | 1,610 | ||
2018 | - | ||
2019 | - | ||
Thereafter | - | ||
Total principal debt maturities | $ | 11,646 | |
Equity_Tables
Equity (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Equity [Abstract] | ||||||||||
Schedule Of Stock Options | ||||||||||
Weighted | ||||||||||
Average | ||||||||||
Weighted | Remaining | Aggregate | ||||||||
Average | Contractual | Intrinsic | ||||||||
Exercise | Life | Value | ||||||||
Shares | Price | (Years) | ($ thousands) | |||||||
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 | ||||||
Granted | 119,000 | 14.22 | ||||||||
Exercised | -265,675 | 5.05 | ||||||||
Forfeited or expired | -262,347 | 21.02 | ||||||||
Outstanding at December 31, 2014 | 1,696,130 | $ | 13.52 | 3.88 | $ | 4,435 | ||||
Exercisable at December 31, 2014 | 1,439,175 | $ | 13.15 | 3.15 | $ | 4,422 | ||||
Vested and expected to vest at December 31, 2014 | 1,629,270 | $ | 13.47 | 3.69 | $ | 4,429 | ||||
Schedule of Option Pricing Model Assumptions | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Expected volatility | 44% - 50% | 50% - 64% | 50% - 70% | |||||||
Dividend yield | - | - | - | |||||||
Risk-free interest rate | 1.41% - 1.71% | 0.81% - 1.62% | 0.62% - 1.20% | |||||||
Expected life (in years) | 4.00 | 4.00 | 4.00 - 4.27 | |||||||
Schedule Of Preformance Based RSU Vesting Schedule | ||||||||||
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 Goals - each weighted 50% | Potential Award | Further Time Vesting | |||||||
Achievement of at least 70% of a one-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% on the one-year anniversary of the end of the Performance Period. | ||||||||
Earned RSUs vest 50% upon satisfaction of performance goal and 50% on the one-year anniversary of the end of the Performance Period. | ||||||||||
Executive may earn from 50% to 200% of the target number of RSUs based on the level of achievement of the performance goal | ||||||||||
Achievement of at least 90% of a one-year revenue performance goal | ||||||||||
The following represents the vesting schedule of performance-based RSUs granted during the years ended December 31, 2013 and 2012: | ||||||||||
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 | ||||||||
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, 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 | ||||||
Granted | 9,973 | 15.04 | 1,749,993 | 16.05 | ||||||
Vested | -68,420 | -1 | 15.03 | -541,888 | -1 | 17.64 | ||||
Forfeited | -144,555 | 12.67 | -1,176,301 | 16.51 | ||||||
Unvested at December 31, 2014 | 7,488 | $ | 15.61 | 1,997,471 | $ | 15.78 | ||||
-1 | The RSAs vested during the years ended December 31, 2014, 2013 and 2012 consisted entirely of time-based awards. The RSUs vested during the year ended December 31, 2014 consisted of 30,946 performance-based awards and 510,942 time-based awards. The RSUs vested during the year ended December 31, 2013 consisted of 52,288 performance-based awards and 277,254 time-based awards. The RSUs vested during the year ended December 31, 2012 consisted entirely of time-based awards. | |||||||||
Allowances_Tables
Allowances (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Allowances [Abstract] | |||||||||||||
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, 2014: | |||||||||||||
Allowance for doubtful accounts | $ | 3,656 | $ | 12,087 | $ | -2,134 | $ | 13,609 | |||||
Reserve for sales returns and allowances | 6,857 | 23,099 | -11,173 | 18,783 | |||||||||
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 | |||||||||
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 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Income Taxes [Abstract] | ||||||||||||||||||
Schedule of Income Tax Expense/Benefit | ||||||||||||||||||
December 31, | ||||||||||||||||||
($ thousands) | 2014 | 2013 | 2012 | |||||||||||||||
Income (loss) before taxes: | ||||||||||||||||||
U.S. | $ | -34,622 | $ | -7,818 | $ | 12,060 | ||||||||||||
Foreign | 26,073 | 67,777 | 133,488 | |||||||||||||||
Total income (loss) before taxes | -8,549 | 59,959 | 145,548 | |||||||||||||||
Income tax expense: | ||||||||||||||||||
Current income taxes | ||||||||||||||||||
U.S. federal | -12,049 | 3,311 | -6,364 | |||||||||||||||
U.S. state | -23 | 355 | 597 | |||||||||||||||
Foreign | 7,620 | 22,337 | 22,953 | |||||||||||||||
Total current income taxes | -4,452 | 26,003 | 17,186 | |||||||||||||||
Deferred income taxes: | ||||||||||||||||||
U.S. federal | 400 | 14,968 | -3,981 | |||||||||||||||
U.S. state | 236 | 3,639 | -4,016 | |||||||||||||||
Foreign | 193 | 4,929 | 5,016 | |||||||||||||||
Total deferred income taxes | 829 | 23,536 | -2,981 | |||||||||||||||
Total income tax expense (benefit) | $ | -3,623 | $ | 49,539 | $ | 14,205 | ||||||||||||
Effective Tax Rate Reconciliation | ||||||||||||||||||
December 31, | ||||||||||||||||||
($ thousands) | 2014 | 2013 | 2012 | |||||||||||||||
Federal income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||||||||||||
State income tax rate, net of federal benefit | -30.4 | -0.6 | -2.7 | |||||||||||||||
Effects of rates different than statutory & rate change | -62.2 | -47.9 | -25 | |||||||||||||||
Non-deductible / Non-taxable items | 115.8 | 3.4 | 4.6 | |||||||||||||||
Change in valuation allowance | -62.8 | 35.6 | -8.4 | |||||||||||||||
U.S. tax on foreign earnings | -77.4 | 38.2 | 2.0 | |||||||||||||||
Uncertain tax positions | 294.4 | 6.8 | 3.5 | |||||||||||||||
Audit settlements | -157.3 | 5.1 | - | |||||||||||||||
Non-deductible write-off of intercompany debt | - | 1.9 | - | |||||||||||||||
Non-deductible impairment | - | 3.5 | - | |||||||||||||||
Write-off of income tax receivable | -18.4 | - | - | |||||||||||||||
Other | 5.7 | 1.6 | 0.8 | |||||||||||||||
Effective income tax rate | 42.4 | % | 82.6 | % | 9.8 | % | ||||||||||||
Deferred Income Tax Assets and Liabilities | ||||||||||||||||||
December 31, | ||||||||||||||||||
($ thousands) | 2014 | 2013 | ||||||||||||||||
Current deferred tax assets: | ||||||||||||||||||
Accrued expenses | $ | 13,217 | $ | 13,108 | ||||||||||||||
Unrealized loss on foreign currency | 342 | 10 | ||||||||||||||||
Other | - | 1,364 | ||||||||||||||||
Valuation allowance | -7,008 | -5,139 | ||||||||||||||||
Total current deferred tax assets | $ | 6,551 | $ | 9,343 | ||||||||||||||
Current deferred tax liabilities: | ||||||||||||||||||
Unremitted earnings of foreign subsidiary | $ | -14,186 | $ | -16,102 | ||||||||||||||
Other | -44 | - | ||||||||||||||||
Total current deferred tax liabilities. | $ | -14,230 | $ | -16,102 | ||||||||||||||
Non-current deferred tax assets: | ||||||||||||||||||
Stock compensation expense | $ | 9,760 | $ | 9,652 | ||||||||||||||
Long-term accrued expenses | 6,773 | 3,811 | ||||||||||||||||
Net operating loss | 20,047 | 24,517 | ||||||||||||||||
Intangible assets | 1,517 | 895 | ||||||||||||||||
Property and equipment | 12,097 | 8,527 | ||||||||||||||||
Future uncertain tax position offset | 445 | 1,804 | ||||||||||||||||
Unrealized loss on foreign currency | - | 639 | ||||||||||||||||
Foreign tax credit | 6,259 | 8,524 | ||||||||||||||||
Other | 1,207 | 1,755 | ||||||||||||||||
Valuation allowance | -40,273 | -41,745 | ||||||||||||||||
Total non-current deferred tax assets | $ | 17,832 | $ | 18,379 | ||||||||||||||
Non-current deferred tax liabilities: | ||||||||||||||||||
Intangible assets | $ | - | $ | - | ||||||||||||||
Total non-current deferred tax liabilities | $ | - | $ | - | ||||||||||||||
Unrecognized Tax Benefits Reconciliation | ||||||||||||||||||
($ thousands) | 2014 | 2013 | 2012 | |||||||||||||||
Unrecognized tax benefit—January 1 | $ | 31,616 | $ | 31,900 | $ | 44,537 | ||||||||||||
Gross increases—tax positions in prior period | 7 | 572 | - | |||||||||||||||
Gross decreases—tax positions in prior period | -3,711 | -2,086 | -425 | |||||||||||||||
Gross increases—tax positions in current period | 904 | 3,743 | 4,310 | |||||||||||||||
Settlements | -20,210 | -2,291 | -16,260 | |||||||||||||||
Lapse of statute of limitations | -162 | -222 | -262 | |||||||||||||||
Unrecognized tax benefit—December 31 | $ | 8,444 | $ | 31,616 | $ | 31,900 | ||||||||||||
Income Tax Examinations | ||||||||||||||||||
Netherlands | 2007 | to | 2014 | |||||||||||||||
Canada | 2007 | to | 2014 | |||||||||||||||
Japan | 2008 | to | 2014 | |||||||||||||||
China | 2007 | to | 2014 | |||||||||||||||
Singapore | 2009 | to | 2014 | |||||||||||||||
United States | 2011 | to | 2014 | |||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Earnings Per Share [Abstract] | ||||||||||
Summary Of Basic And Diluted Earnings Per Share | ||||||||||
Year Ended December 31, | ||||||||||
($ thousands, except per share data) | 2014 | 2013 | 2012 | |||||||
Numerator | ||||||||||
Net income (loss) attributable to common stockholders | $ | -18,962 | $ | 10,420 | $ | 131,343 | ||||
Less: adjustment for income allocated to participating securities | - | -36 | -645 | |||||||
Net income (loss) attributable to common stockholders - basic and diluted | $ | -18,962 | $ | 10,384 | $ | 130,698 | ||||
Denominator | ||||||||||
Weighted average common shares outstanding - basic | 85,140 | 87,989 | 89,571 | |||||||
Plus: dilutive effect of stock options and unvested restricted stock units | - | 1,100 | 1,017 | |||||||
Weighted average common shares outstanding - diluted | 85,140 | 89,089 | 90,588 | |||||||
Net income (loss) attributable per common share: | ||||||||||
Basic | $ | -0.22 | $ | 0.12 | $ | 1.46 | ||||
Diluted | $ | -0.22 | $ | 0.12 | $ | 1.44 | ||||
Commitments_Contingencies_Tabl
Commitments & Contingencies (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Commitments & Contingencies [Abstract] | ||||||||||||||||
Future minimum annual rental commitments under non-cancelable operating leases | ||||||||||||||||
Fiscal years ending December 31, | ||||||||||||||||
2015 | $ | 79,087 | ||||||||||||||
2016 | 56,688 | |||||||||||||||
2017 | 42,911 | |||||||||||||||
2018 | 34,473 | |||||||||||||||
2019 | 29,481 | |||||||||||||||
Thereafter | 115,071 | |||||||||||||||
Total minimum lease payments (1) | $ | 357,711 | ||||||||||||||
(1)Minimum lease payments have not been reduced by minimum sublease rentals of $1.0 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. | ||||||||||||||||
Schedule of rent expense | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Minimum rentals (1) | $ | 108,466 | $ | 101,721 | $ | 84,671 | ||||||||||
Contingent rentals | 16,875 | 18,178 | 16,519 | |||||||||||||
Less: Sublease rentals | -868 | -646 | -619 | |||||||||||||
Total rent expense | $ | 124,473 | $ | 119,253 | $ | 100,571 | ||||||||||
(1)Minimum rentals include all lease payments as well as fixed and variable common area maintenance (“CAM”), parking and storage fees, which were approximately $9.6 million, $9.7 million and $8.5 million during the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||
Operating_Segments_Geographic_1
Operating Segments & Geographic Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Operating Segments & Geographic Information [Abstract] | |||||||||||||||||
Schedule of Segment Income Statement | Year Ended December 31, | ||||||||||||||||
($ thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Revenues: | |||||||||||||||||
Americas | $ | 489,915 | $ | 498,552 | $ | 495,852 | |||||||||||
Asia Pacific | 350,449 | 342,752 | 292,846 | ||||||||||||||
Japan | 123,461 | 134,863 | 164,565 | ||||||||||||||
Europe | 233,604 | 216,259 | 169,464 | ||||||||||||||
Total segment revenues | 1,197,429 | 1,192,426 | 1,122,727 | ||||||||||||||
Other businesses | 794 | 254 | 574 | ||||||||||||||
Total consolidated revenues | $ | 1,198,223 | $ | 1,192,680 | $ | 1,123,301 | |||||||||||
Operating income: | |||||||||||||||||
Americas | $ | 48,347 | -1 | $ | 61,894 | -1 | $ | 85,538 | -1 | ||||||||
Asia Pacific | 47,753 | -2 | 80,693 | -2 | 74,535 | ||||||||||||
Japan | 27,382 | -3 | 37,560 | -3 | 66,293 | ||||||||||||
Europe | 24,517 | -4 | 16,192 | 21,678 | |||||||||||||
Total segment operating income | 147,999 | 196,339 | 248,044 | ||||||||||||||
Reconciliation of total segment operating income to income before income taxes: | |||||||||||||||||
Other businesses | -19,400 | -20,811 | -10,805 | ||||||||||||||
Intersegment eliminations | -1,498 | 61 | 60 | ||||||||||||||
Unallocated corporate and other (5) | -131,827 | -112,494 | -91,125 | ||||||||||||||
Total consolidated operating income (loss) | -4,726 | 63,095 | 146,174 | ||||||||||||||
Foreign currency transaction gains, net | 4,885 | 4,678 | 2,500 | ||||||||||||||
Interest income | -1,664 | -2,432 | -1,697 | ||||||||||||||
Interest expense | 806 | 1,016 | 837 | ||||||||||||||
Other income, net | -204 | -126 | -1,014 | ||||||||||||||
Income (loss) before income taxes | $ | -8,549 | $ | 59,959 | $ | 145,548 | |||||||||||
Depreciation and amortization: | |||||||||||||||||
Americas | $ | 11,670 | $ | 10,384 | $ | 9,849 | |||||||||||
Asia Pacific | 5,186 | 5,032 | 4,869 | ||||||||||||||
Japan | 1,538 | 1,454 | 2,053 | ||||||||||||||
Europe | 3,761 | 5,108 | 3,116 | ||||||||||||||
Total segment depreciation and amortization | 22,155 | 21,978 | 19,887 | ||||||||||||||
Other businesses | 5,900 | 8,002 | 7,003 | ||||||||||||||
Unallocated corporate and other (5) | 9,358 | 11,526 | 9,804 | ||||||||||||||
Total consolidated depreciation and amortization | $ | 37,413 | $ | 41,506 | $ | 36,694 | |||||||||||
-1 | Includes $4.0 million, $3.9 million and $1.4 million for the years ended December 31, 2014, 2013 and 2012, respectively, of asset impairment charges related to 36, 23 and four underperforming retail locations, respectively. | ||||||||||||||||
-2 | Includes $2.8 million and $0.2 million for the year ended December 31, 2014 and 2013, respectively, of asset impairment charges related to 14 and two underperforming retail locations, respectively. | ||||||||||||||||
-3 | Includes $6.6 million for the year ended December 31, 2013 of asset impairment charges related to 35 underperforming retail locations. | ||||||||||||||||
-4 | Includes $2.0 million for the year ended December 31, 2014 of asset impairment charges related to 27 underperforming retail locations. | ||||||||||||||||
-5 | Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, restructuring, depreciation and amortization of corporate and other assets not allocated to operating segments and costs of the same nature related to certain corporate holding companies. See Note 6 – Restructuring for additional details. | ||||||||||||||||
Schedule of Segment Balance Sheet | |||||||||||||||||
December 31, | |||||||||||||||||
($ thousands) | 2014 | 2013 | |||||||||||||||
Assets: | |||||||||||||||||
Americas | $ | 127,077 | $ | 139,855 | |||||||||||||
Asia Pacific | 166,878 | 177,343 | |||||||||||||||
Japan | 34,032 | 51,155 | |||||||||||||||
Europe | 166,285 | 137,701 | |||||||||||||||
Total segment current assets | 494,272 | 506,054 | |||||||||||||||
Other businesses | 18,132 | 14,093 | |||||||||||||||
Unallocated corporate and other(1) | 27,337 | 63,743 | |||||||||||||||
Deferred tax assets, net | 4,190 | 4,440 | |||||||||||||||
Income tax receivable | 9,332 | 10,630 | |||||||||||||||
Other receivables | 11,989 | 11,942 | |||||||||||||||
Prepaid expenses and other current assets | 30,156 | 29,175 | |||||||||||||||
Total current assets | 595,408 | 640,077 | |||||||||||||||
Property and equipment, net | 68,288 | 86,971 | |||||||||||||||
Intangible assets, net | 97,337 | 72,314 | |||||||||||||||
Goodwill | 2,044 | 2,508 | |||||||||||||||
Deferred tax assets, net | 17,886 | 19,628 | |||||||||||||||
Other assets | 25,968 | 53,661 | |||||||||||||||
Total consolidated assets | $ | 806,931 | $ | 875,159 | |||||||||||||
(1)Corporate assets primarily consist of cash and equivalents. | |||||||||||||||||
Schedule of Geographical Revenue | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
($ thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Product: | |||||||||||||||||
Footwear | $ | 1,169,247 | $ | 1,155,377 | $ | 1,076,210 | |||||||||||
Other | 28,976 | 37,303 | 47,091 | ||||||||||||||
Total revenues | $ | 1,198,223 | $ | 1,192,680 | $ | 1,123,301 | |||||||||||
Location: | |||||||||||||||||
United States | $ | 435,154 | $ | 401,948 | $ | 396,121 | |||||||||||
International | 763,069 | 790,732 | 727,180 | ||||||||||||||
Total revenues | $ | 1,198,223 | $ | 1,192,680 | $ | 1,123,301 | |||||||||||
Foreign country revenues in excess of 10% of total revenues: | |||||||||||||||||
Japan | $ | 123,461 | $ | 134,863 | $ | 164,565 | |||||||||||
Schedule of Geographical Long-Lived Assets | |||||||||||||||||
December 31, | |||||||||||||||||
($ thousands) | 2014 | 2013 | |||||||||||||||
Location: | |||||||||||||||||
United States | $ | 45,046 | $ | 56,262 | |||||||||||||
International | 23,242 | 30,709 | |||||||||||||||
Total long-lived assets(1) | $ | 68,288 | $ | 86,971 | |||||||||||||
(1)Not more than 10% of our long-lived assets resided in any individual foreign country in 2014 or 2013. | |||||||||||||||||
Unaudited_Quarterly_Consolidat1
Unaudited Quarterly Consolidated Financial Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Unaudited Quarterly Consolidated Financial Information [Abstract] | |||||||||||||
Schedule of Unaudited Quarterly Consolidated Financial Information | |||||||||||||
For the Quarter Ended | |||||||||||||
($ thousands, except per share data) | 31-Mar-14 | 30-Jun-14 | 30-Sep-14 | 31-Dec-14 | |||||||||
Revenues | $ | 312,429 | $ | 376,920 | $ | 302,401 | $ | 206,473 | |||||
Gross profit | $ | 156,227 | $ | 202,571 | $ | 155,017 | $ | 76,530 | |||||
Restructuring | $ | 2,250 | $ | 4,060 | $ | 7,585 | $ | 6,637 | |||||
Asset impairment charges | $ | - | $ | 3,230 | $ | 2,600 | $ | 2,997 | |||||
Income (loss) from operations | $ | 16,822 | $ | 41,911 | $ | 1,113 | $ | -64,572 | |||||
Net income (loss) | $ | 9,124 | $ | 23,277 | $ | 15,767 | $ | -53,094 | |||||
Net income (loss) attributable to common stockholders | $ | 6,373 | $ | 19,523 | $ | 12,009 | $ | -56,867 | |||||
Basic income (loss) per common share | $ | 0.06 | $ | 0.19 | $ | 0.12 | $ | -0.7 | |||||
Diluted income (loss) per common share | $ | 0.06 | $ | 0.19 | $ | 0.12 | $ | -0.7 | |||||
For the Quarter Ended | |||||||||||||
($ thousands, except per share data) | 31-Mar-13 | 30-Jun-13 | 30-Sep-13 | 31-Dec-13 | |||||||||
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 | |||||
Organization_Summary_of_Signif2
Organization & Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||||
Jan. 27, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 27, 2014 | Dec. 31, 2011 | |
Organization & Summary of Significant Accounting Policies [Line Items] | ||||||
VIE assets - Crocs Gulf | $3,300,000 | $2,400,000 | ||||
VIE liabilities | 400,000 | 200,000 | ||||
Cash and cash equivalents | 267,512,000 | 317,144,000 | 294,348,000 | 257,587,000 | ||
Cash and cash equivalents held internationally | 247,600,000 | |||||
Cash and cash equivalents restricted internationally | 10,800,000 | |||||
Series A preferred shares, issued | 200,000 | 200,000 | 200,000 | 200,000 | ||
Net proceeds from sale of series A preferred stock | 182,200,000 | |||||
Reserve for doubtful accounts | 11,600,000 | 3,700,000 | ||||
Reserve for rebates | 1,400,000 | |||||
Preferred stock accretion period (in years) | 8 years | |||||
Employee contribution percentage | 75.00% | |||||
Employer contribution percentage to defined contribution plan | 4.00% | |||||
Defined contribution plan expensed for employee match contributions | 7,100,000 | 6,800,000 | 5,800,000 | |||
Advertising, marketing, and promotional expenses | 44,700,000 | 47,600,000 | 39,800,000 | |||
Research and development expenses | 16,700,000 | 15,400,000 | 12,000,000 | |||
Maximum [Member] | ||||||
Organization & Summary of Significant Accounting Policies [Line Items] | ||||||
Property and equipment estimated useful lives | 5 years | |||||
Minimum [Member] | ||||||
Organization & Summary of Significant Accounting Policies [Line Items] | ||||||
Property and equipment estimated useful lives | 2 years | |||||
Asia Pacific [Member] | ||||||
Organization & Summary of Significant Accounting Policies [Line Items] | ||||||
Reserve for doubtful accounts | $11,500,000 |
Organization_Summary_of_Signif3
Organization & Summary of Significant Accounting Policies (Intangible Assets Useful Lives) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average Amortization Period | 10 years | |
Core Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average Amortization Period | 5 years | |
Capitalized Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average Amortization Period | 7 years |
Inventories_Narrative_Details
Inventories (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Inventories [Abstract] | |||
Inventory write-down charges | $11,500,000 | $3,400,000 | |
Direct restructuring charges (Note 6) | 3,985,000 | ||
Charitable contributions | 600,000 | 600,000 | 1,700,000 |
Gain On Charitable Contributions | 200,000 | 100,000 | 600,000 |
Net Reduction of Inventory After Charitable Contributions | $400,000 | $500,000 | $1,100,000 |
Inventories_Schedule_of_Invent
Inventories (Schedule of Inventory) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Inventories [Abstract] | ||
Finished goods | $167,515,000 | $154,272,000 |
Work-in-progress | 703,000 | 685,000 |
Raw materials | 2,794,000 | 7,384,000 |
Inventories | $171,012,000 | $162,341,000 |
Property_And_Equipment_Summary
Property And Equipment (Summary of Property & Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Property And Equipment [Abstract] | ||||
Machinery and equipment | $48,989 | $52,003 | ||
Leasehold improvements | 91,962 | 93,235 | ||
Furniture, fixtures, and other | 23,818 | 23,653 | ||
Construction-in-progress | 3,318 | 16,231 | ||
Property and equipment, gross | 168,087 | [1] | 185,122 | [1] |
Less: Accumulated depreciation | -99,799 | [2] | -98,151 | [2] |
Property and equipment, net | $68,288 | [3] | $86,971 | [3] |
[1] | Includes $0.2 million and $0.2 million of certain equipment held under capital leases and classified as equipment as of each of December 31, 2014 and 2013, respectively. | |||
[2] | Includes $0.1 million of accumulated depreciation related to certain equipment held under capital leases, as of each of December 31, 2014 and 2013, which are depreciated using the straight-line method over the lease term. | |||
[3] | Not more than 10% of our long-lived assets resided in any individual foreign country in 2014 or 2013. |
Property_And_Equipment_Summary1
Property And Equipment (Summary of Property & Equipment Footnote) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property And Equipment [Abstract] | ||
Gross equipment held under capital leases | $0.20 | $0.20 |
Depreciation for equipment held under capital leases | 0.1 | 0.1 |
Accumulated depreciation related to assets that were written off or disposed | $17.50 |
Property_And_Equipment_Depreci
Property And Equipment (Depreciation Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation Expense | $23.20 | $24.30 | $23.10 |
Depreciation Expense Recorded in Cost of Sales | 1.7 | 2.9 | 4.6 |
Disposal of assets | 17.5 | ||
Long-Lived Assets [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Disposal of assets | 28.5 | ||
Fully Depreciated Assets [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Disposal of assets | $1.60 | $19.50 |
Property_And_Equipment_Asset_I
Property And Equipment (Asset Impairments) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
store | store | store | ||
Segment Reporting Information [Line Items] | ||||
Asset impairment charges | $10,400 | $8,827 | $10,611 | $1,410 |
Number of retail stores impaired | 77 | 60 | 4 | |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Asset impairment charges | 4,001 | 3,861 | 1,410 | |
Number of retail stores impaired | 36 | 23 | 4 | |
Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Asset impairment charges | 2,807 | 185 | ||
Number of retail stores impaired | 14 | 2 | ||
Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Asset impairment charges | $2,019 | $6,565 | ||
Number of retail stores impaired | 27 | 35 |
Goodwill_Intangible_Assets_Nar
Goodwill & Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill & Intangible Assets [Abstract] | ||||
Amortization Expense | $14.20 | $17.20 | $13.60 | |
Amortization Expense Recorded in Cost of Sales | 4.9 | 6 | 4.3 | |
Goodwill impairment | $0.30 | $0 | $0.30 | $0 |
Goodwill_Intangible_Assets_Sum
Goodwill & Intangible Assets (Summary Of Goodwill & Intangible Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | $175,130 | $137,850 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -78,126 | -65,633 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | 97,004 | 72,217 | ||
Indefinite lived intangible assets | 333 | 97 | ||
Goodwill | 2,044 | [1] | 2,508 | [1] |
Gross Carrying Amount, Total Intangible Assets | 177,507 | 140,455 | ||
Net Carrying Amount, Total Intangible Assets | 99,381 | 74,822 | ||
Capitalized Software [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | 157,615 | [2] | 118,940 | [2] |
Accumulated Amortization, Finite-Lived Intangible Assets | -62,591 | [3] | -49,665 | [3] |
Net Carrying Amount, Finite-Lived Intangible Assets | 95,024 | 69,275 | ||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | 5,945 | 6,878 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -5,798 | -6,439 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | 147 | 439 | ||
Patents, copyrights and trademarks [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | 6,702 | 6,501 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -4,931 | -4,272 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | 1,771 | 2,229 | ||
Core technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | 4,170 | 4,548 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -4,170 | -4,548 | ||
Other [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | 698 | 983 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -636 | -709 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | $62 | $274 | ||
[1] | Change in goodwill relates entirely to foreign currency translation. | |||
[2] | Includes $4.1 million of software held under a capital lease classified as capitalized software as of each of December 31, 2014 and 2013. During 2013, we began an implementation of a new enterprise resource planning, (bERPb) system, and in 2014, we continued this implementation. Certain costs associated with the new ERP system were capitalized in both periods. The majority of the ERP system was placed into service during 2015. | |||
[3] | Includes $2.5 million and $1.9B million of accumulated amortization of software held under a capital lease as of December 31, 2014 and 2013, respectively, which is amortized using the straight-line method over the useful life. |
Goodwill_Intangible_Assets_Sum1
Goodwill & Intangible Assets (Summary of Goodwill & Intangible Assets Footnote) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Goodwill & Intangible Assets [Abstract] | ||
Gross Capitalized Software Held Under Capital Lease | $4.10 | $4.10 |
Amortization of Capitalized Software Held Under Capital Lease | $2.50 | $1.90 |
Goodwill_Intangible_Assets_Fut
Goodwill & Intangible Assets (Future Amortization Schedule) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill & Intangible Assets [Abstract] | ||
2015 | $20,198 | |
2016 | 19,376 | |
2017 | 13,825 | |
2018 | 12,334 | |
2019 | 10,844 | |
Thereafter | 20,427 | |
Net Carrying Amount, Finite-Lived Intangible Assets | $97,004 | $72,217 |
Accrued_Expense_And_Other_Curr
Accrued Expense And Other Current Liabilities (Summary of Accrued Expenses and Other Current Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accrued Expenses And Other Current Liabilities [Abstract] | ||||
Accrued compensation and benefits | $23,824 | $26,903 | ||
Professional services | 16,212 | 14,128 | ||
Fulfillment, freight, and duties | 12,110 | 12,565 | ||
Sales/use and VAT tax payable | 5,897 | 9,142 | ||
Accrued rent and occupancy | 9,675 | 12,198 | ||
Customer deposits | 3,075 | 6,940 | ||
Dividend payable | 3,067 | |||
Accrued legal liabilities | 2,150 | 8,722 | ||
Other | 4,206 | [1] | 6,513 | [1] |
Total accrued expenses and other current liabilities | $80,216 | $97,111 | ||
[1] | The amounts in Other consist of various accrued expenses and no individual item accounted for more than 5% of the total balance as of December 31, 2014 or 2013. |
Accrued_Expense_And_Other_Curr1
Accrued Expense And Other Current Liabilities (Summary of Accrued Expenses and Other Current Liabilities Footnote) (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
item | item | |
Accrued Expenses And Other Current Liabilities [Abstract] | ||
Individual Items Accounting For More Than Five Percent Of Balance Of Accrued Expenses | 0 | 0 |
Percent Of Decision Point On Reporting Individual Items In Accrued Expenses | 5.00% | 5.00% |
Accrued_Expense_And_Other_Curr2
Accrued Expense And Other Current Liabilities (Asset Retirement Obligations) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Asset Retirement Obligation [Abstract] | ||
Asset Retirement Obligation Liability | $2,200 | $2,000 |
Restructuring_Activities_Narra
Restructuring Activities (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2015 |
store | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges total | $24,517 | |
Number of stores closed | 20 | |
Maximum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of stores to be closed | 100 | |
Minimum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of stores to be closed | 75 | |
Scenario, Forecast [Member] | Maximum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges total | 20,000 | |
Scenario, Forecast [Member] | Minimum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges total | $5,000 |
Restructuring_Activities_Restr
Restructuring Activities (Restructuring Costs by Type) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | |
Restructuring Activities [Abstract] | ||
Severance costs | $12,500 | |
Lease / contract exit and related costs | 4,251 | |
Other | 7,766 | [1] |
Total restructuring charges | $24,517 | |
[1] | The amounts in bOtherb consist of various asset and inventory impairment charges prompted by the aforementioned restructuring plan, legal fees and facility maintenance fees. |
Restructuring_Activities_Restr1
Restructuring Activities (Restructuring Costs by Segment) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | |
Total restructuring charges | $24,517 |
Americas [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Total restructuring charges | 4,259 |
Asia Pacific [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Total restructuring charges | 6,816 |
Japan [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Total restructuring charges | 606 |
Europe [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Total restructuring charges | 3,934 |
Corporate [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Total restructuring charges | $8,902 |
Restructuring_Activities_Restr2
Restructuring Activities (Restructuring Reserve Rollforward) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Additions | $6,637 | $7,585 | $4,060 | $2,250 | $20,532 | |
Employee Severance [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Additions | 13,287 | |||||
Cash payments | -9,329 | |||||
Adjustments | -804 | [1] | ||||
Accrued restructuring as of December 31, 2014 | 3,154 | 3,154 | ||||
Contract Termination [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Additions | 4,252 | |||||
Cash payments | -2,756 | |||||
Adjustments | -95 | [1] | ||||
Accrued restructuring as of December 31, 2014 | 1,401 | 1,401 | ||||
Other Restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Additions | 1,352 | |||||
Cash payments | -1,028 | |||||
Adjustments | -20 | [1] | ||||
Accrued restructuring as of December 31, 2014 | 304 | 304 | ||||
Total accrued restructuring [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Additions | 18,891 | |||||
Cash payments | -13,113 | |||||
Adjustments | -919 | [1] | ||||
Accrued restructuring as of December 31, 2014 | $4,859 | $4,859 | ||||
[1] | Adjustments relate to a reversal of accrued expenses, differences resulting from the translation of the liability balance as of the balance sheet rate and restructuring expense translated at the weighted-average rate of exchange for the applicable period. |
Restructuring_Activities_Retai
Restructuring Activities (Retail Store Closings) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
store | ||
Property And Equipment [Abstract] | ||
Number of stores closed | 20 | |
Accrued liability related to store closures | $4,900,000 | $0 |
Fair_Value_Measurements_Summar
Fair Value Measurements (Summary of Fair Value Measurements on a Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash equivalents | $23,326 | $37,870 |
Derivative Assets | ||
Foreign currency contracts assets | 13,501 | |
Derivative Liabilities | ||
Foreign currency contracts liabilities | 984 | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash equivalents | 23,326 | 37,870 |
Level 2 [Member] | ||
Derivative Assets | ||
Foreign currency contracts assets | 13,501 | |
Derivative Liabilities | ||
Foreign currency contracts liabilities | $984 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Summary of Derivative Financial Instruments Notional Amounts on Outstanding Positions) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | $319,639 | $220,494 |
Latest maturity date | 1-Jan-15 | 1-Dec-15 |
Euro [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 134,755 | 38,577 |
Singapore Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 61,887 | 28,225 |
Japanese Yen [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 44,533 | 68,707 |
British Pound Sterling [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 17,230 | 15,487 |
South Korean Won [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 14,590 | 12,100 |
Mexican Peso [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 13,180 | 18,350 |
Australian Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 7,913 | 4,941 |
Chinese Yuan Renminbi [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 5,376 | |
South African Rand [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 4,355 | 3,076 |
Indian Rupee [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 3,356 | 2,150 |
New Taiwan Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 3,229 | 3,463 |
Canadian Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 3,005 | 3,428 |
Swedish Krona [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 1,918 | 1,615 |
Russian Ruble [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 1,838 | 17,588 |
Norwegian Krone [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 917 | |
Hong Kong Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 814 | 1,844 |
New Zealand Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | $743 | $943 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Summary of Gain/Loss on Derivative Instruments) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative Financial Instruments [Abstract] | |||
Foreign currency exchange forwards | $3,788,000 | ($13,002,000) | ($7,200,000) |
Foreign currency transaction gains/losses, gross | 1,100,000 | 17,700,000 | 9,700,000 |
Foreign currency transaction losses, net | $4,885,000 | $4,678,000 | $2,500,000 |
Revolving_Credit_Facility_Bank2
Revolving Credit Facility & Bank Borrowings (Revolving Credit Facility) (Details) (USD $) | 12 Months Ended | |||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 26, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 24, 2009 | |
Line of Credit Facility [Line Items] | ||||||||
Minimum fixed charge coverage ratio | 1.20% | 1.15% | 1.15% | 1.25% | ||||
Expected Minimum Fixed Charge Coverage Ratio For First Half Of Next Year | 1.15% | |||||||
Expected Minimum Fixed Charge Coverage Ratio After First Half Of Next Year | 1.25% | |||||||
Leverage ratio | 3.25% | 3.50% | ||||||
Line of Credit Facility, Current Borrowing Capacity | $100,000,000 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 125,000,000 | |||||||
Maximum letter of credit borrowing capacity | 20,000,000 | |||||||
Revolving credit facility | 0 | 0 | ||||||
Outstanding letters of credit | 1,800,000 | 7,200,000 | ||||||
Deferred financing costs | $100,000 | $100,000 | $500,000 | |||||
Federal Funds Effective Swap Rate [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||
Maximum [Member] | Certain Conditions [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |||||||
Minimum [Member] | Certain Conditions [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% |
Revolving_Credit_Facility_Bank3
Revolving Credit Facility & Bank Borrowings (Long-Term Bank Borrowings) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
item | item | |
Revolving Credit Facility & Bank Borrowings [Abstract] | ||
Bank borrowings | $11,646,000 | $16,800,000 |
Number of notes payable outstanding | 5 | 5 |
Current maturities of long-term debt | 5,300,000 | 5,100,000 |
Minimum interest rate on long-term debt | 2.45% | |
Maximum interest rate on long-term debt | 2.79% | |
Earliest maturity on long-term debt | 30-Sep-16 | |
Latest maturity on long-term debt | 30-Sep-17 | |
Long-term debt interest capitalized | $400,000 | $300,000 |
Revolving_Credit_Facility_Bank4
Revolving Credit Facility & Bank Borrowings (Aggregate Maturities of Long-Term Bank Borrowings) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revolving Credit Facility & Bank Borrowings [Abstract] | ||
2015 | $5,271 | |
2016 | 4,765 | |
2017 | 1,610 | |
2018 | ||
2019 | ||
Thereafter | ||
Long-term debt | $11,646 | $16,800 |
Equity_Equity_Incentive_Plans_
Equity (Equity Incentive Plans) (Details) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 15, 2005 | Jun. 28, 2011 | Jul. 09, 2007 |
Maximum [Member] | |||||
Equity Incentive Plans [Line Items] | |||||
Vesting Period | 4 years | ||||
Minimum [Member] | |||||
Equity Incentive Plans [Line Items] | |||||
Vesting Period | 3 years | ||||
Equity Incentive Plan 2005 [Member] | |||||
Equity Incentive Plans [Line Items] | |||||
Awards authorized and reserved under plan | 14 | ||||
Stock options outstanding under plan | 0.6 | 0.7 | |||
Equity Incentive Plan 2007 [Member] | |||||
Equity Incentive Plans [Line Items] | |||||
Awards authorized and reserved under plan | 15.3 | 9 | |||
Stock options, RSAs, and RSUs outstanding under plan | 3.1 | 3.6 | |||
Shares available for future issuance under plan | 3.7 |
Equity_Stock_Option_Activity_D
Equity (Stock Option Activity) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Arrangements with Employees and Nonemployees [Abstract] | ||||
Shares outstanding at beginning of period | 2,105,152 | 2,621,686 | 3,331,031 | |
Shares granted | 119,000 | 177,000 | 208,400 | |
Shares exercised | -265,675 | -333,395 | -613,691 | |
Shares forfeited or expired | -262,347 | -360,139 | -304,054 | |
Shares outstanding at end of period | 1,696,130 | 2,105,152 | 2,621,686 | 3,331,031 |
Shares exercisable at December 31, 2014 | 1,439,175 | |||
Shares vested and expected to vest at December 31, 2014 | 1,629,270 | |||
Weighted average exercise price of options outstanding at beginning of period | $13.34 | $13.03 | $11.91 | |
Weighted average exercise price of options granted | $14.22 | $15.62 | $16.84 | |
Weighted average exercise price of options exercised | $5.05 | $6.84 | $6.04 | |
Weighted average exercise price of options forfeited or expired | $21.02 | $18.18 | $17.55 | |
Weighted average exercise price of options outstanding at end of period | $13.52 | $13.34 | $13.03 | $11.91 |
Weighted average exercise price of options exercisable at December 31, 2014 | $13.15 | |||
Weighted average exercise price of options vested and expected to vest at December 31, 2014 | $13.47 | |||
Weighted average remaining contractual life (years) outstanding | 3 years 10 months 17 days | 4 years 10 months 10 days | 5 years 6 months 18 days | 6 years 4 months 6 days |
Weighted average remaining contractual life (years) exercisable at December 31, 2014 | 3 years 1 month 24 days | |||
Weighted average remaining contractual life (years) vested and expected to vest at December 31, 2014 | 3 years 8 months 9 days | |||
Aggregate intrinsic value outstanding | $4,435 | $10,790 | $11,373 | $18,468 |
Aggregate intrinsic value exercisable at December 31, 2014 | 4,422 | |||
Aggregate intrinsic value vested and expected to vest at December 31, 2014 | $4,429 |
Equity_Schedule_of_Option_Pric
Equity (Schedule of Option Pricing Model Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility rate minimum | 44.00% | 50.00% | 50.00% |
Expected volatility rate maximum | 50.00% | 64.00% | 70.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate minimum | 1.41% | 0.81% | 0.62% |
Risk-free interest rate maximum | 1.71% | 1.62% | 1.20% |
Expected life | 4 years | 4 years | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 4 years 3 months 7 days | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 4 years |
Equity_Stock_Option_Activity_N
Equity (Stock Option Activity Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefit from the exercise of stock options | $0 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value of options granted per share | $5.35 | $7.33 | $7.76 |
Aggregate intrinsic value of options exercised | 2,700,000 | 2,800,000 | 6,900,000 |
Cash received from the exercise of stock options | 1,300,000 | 2,300,000 | |
Grant date fair value of options vested | 800,000 | 1,200,000 | 2,800,000 |
Unrecognized share-based compensation expense related to unvested options | $1,500,000 | ||
Weighted Average Period of Non-Vested Stock Awards | 2 years 6 months | ||
Vesting Period | 4 years | ||
Stock Options [Member] | First Year Vesting, Cliff [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting Period | 1 year | ||
Stock Options [Member] | Remaining Years, Monthly Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting Period | 3 years |
Equity_Schedule_Of_Preformance
Equity (Schedule Of Preformance Based RSU Vesting Schedule) (Details) (Restricted Stock Units [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | item | item | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of annual installments, vesting | 3 | 3 | 3 |
Beginning period of vesting | 1 year | 1 year | 1 year |
Performance goals percentage | 70.00% | 70.00% | |
Performance goals period | 2 years | 2 years | |
Percentage earned from performance goal and vesting period | 50.00% | 50.00% | |
Further Time Vesting, anniversary period | 1 year | 1 year | |
Vesting Scenario One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance goals percentage | 70.00% | ||
Performance goals period | 1 year | ||
Percentage earned from performance goal and vesting period | 50.00% | ||
Further Time Vesting, anniversary period | 1 year | ||
Vesting Scenario Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance goals percentage | 90.00% | ||
Performance goals period | 1 year | ||
Percentage earned from performance goal and vesting period | 50.00% | ||
Further Time Vesting, anniversary period | 1 year | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential award percentage | 200.00% | 200.00% | |
Maximum [Member] | Vesting Scenario One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential award percentage | 200.00% | ||
Maximum [Member] | Vesting Scenario Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential award percentage | 200.00% | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential award percentage | 50.00% | 50.00% | |
Minimum [Member] | Vesting Scenario One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential award percentage | 50.00% | ||
Minimum [Member] | Vesting Scenario Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Potential award percentage | 50.00% |
Equity_Schedule_Of_Restricted_
Equity (Schedule Of Restricted Stock Award and Restricted Stock Unit Activity) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Restricted Stock Awards [Member] | ||||||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ||||||
Nonvested beginning balance | 210,490 | 355,509 | 571,175 | |||
Granted | 9,973 | 21,590 | 18,813 | |||
Vested | -68,420 | [1] | -89,006 | [1] | -191,779 | [1] |
Forfeited or expired | -144,555 | -77,603 | -42,700 | |||
Nonvested ending balance | 7,488 | 210,490 | 355,509 | |||
Weighted average grant date fair value beginning balance | $13.43 | $13.37 | $11.87 | |||
Weighted average grant date fair value of granted | $15.04 | $16.56 | $16.48 | |||
Weighted average grant date fair value of vested | $15.03 | $14.81 | $9.22 | |||
Weighted average grant date fair value of forfeited or expired | $12.67 | $12.46 | $13.25 | |||
Weighted average grant date fair value ending balance | $15.61 | $13.43 | $13.37 | |||
Restricted Stock Units [Member] | ||||||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ||||||
Nonvested beginning balance | 1,965,667 | 1,414,661 | 711,980 | |||
Granted | 1,749,993 | 1,637,114 | 1,010,559 | |||
Vested | -541,888 | [1] | -329,542 | [1] | -133,555 | [1] |
Forfeited or expired | -1,176,301 | -756,566 | -174,323 | |||
Nonvested ending balance | 1,997,471 | 1,965,667 | 1,414,661 | |||
Weighted average grant date fair value beginning balance | $16.50 | $20.61 | $23.43 | |||
Weighted average grant date fair value of granted | $16.05 | $14.96 | $18.92 | |||
Weighted average grant date fair value of vested | $17.64 | $21.52 | $23.25 | |||
Weighted average grant date fair value of forfeited or expired | $16.51 | $14.71 | $20.64 | |||
Weighted average grant date fair value ending balance | $15.78 | $16.50 | $20.61 | |||
[1] | The RSAs vested during the years ended December 31, 2014, 2013 and 2012 consisted entirely of time-based awards. The RSUs vested during the year ended December 31, 2014 consisted of 30,946 performance-based awards and 510,942 time-based awards. The RSUs vested during the year ended December 31, 2013 consisted of 52,288 performance-based awards and 277,254 time-based awards. The RSUs vested during the year ended December 31, 2012 consisted entirely of time-based awards. |
Equity_Schedule_Of_Restricted_1
Equity (Schedule Of Restricted Stock Award and Restricted Stock Unit Activity Footnote) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Time-based Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested | 510,942 | 277,254 |
Performance-based Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vested | 30,946 | 52,288 |
Equity_Restricted_Stock_Awards
Equity (Restricted Stock Awards and Restricted Stock Units Activity, Share-Based Compensation) (Details) (USD $) | 12 Months Ended | ||
Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |||
Share grants approved in period | 900 | 900 | 400 |
Share-based compensation expense | $12,700,000 | $12,500,000 | $11,300,000 |
Capitalized share-based compensation | 200,000 | 700,000 | 0 |
Maximum [Member] | |||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |||
Stock Option Vesting Period | 4 years | ||
Minimum [Member] | |||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |||
Stock Option Vesting Period | 3 years | ||
Time-based Restricted Stock Units [Member] | |||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |||
Share grants approved in period | 300 | 400 | 400 |
Unrecognized share-based compensation expense related to unvested awards | 6,800,000 | ||
Weighted Average Period of Non-Vested Stock Awards | 1 year 9 months 11 days | ||
Restricted Stock And Restricted Units [Member] | Maximum [Member] | |||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |||
Stock Option Vesting Period | 4 years | ||
Restricted Stock And Restricted Units [Member] | Minimum [Member] | |||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |||
Stock Option Vesting Period | 3 years | ||
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 | 100,000 | ||
Weighted Average Period of Non-Vested Stock Awards | 4 months 10 days | ||
Grant date fair value of vested awards | 1,000,000 | 1,300,000 | 1,800,000 |
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 | 13,000,000 | ||
Weighted Average Period of Non-Vested Stock Awards | 1 year 5 months 27 days | ||
Grant date fair value of vested awards | 9,600,000 | 7,100,000 | 3,100,000 |
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 | $6,200,000 | ||
Weighted Average Period of Non-Vested Stock Awards | 1 year 1 month 24 days |
Equity_Separation_Agreements_A
Equity (Separation Agreements And Appointment of President And CEO) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 15, 2014 | 13-May-14 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Separation payment first installment | $1,100,000 | |||
Separation payment second installment | 1,000,000 | |||
Awards expected to vest related to separation agreement | 58,840 | |||
Forfeited awards due to separation agreement | 388,745 | |||
Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock granted, value | 2,000,000 | |||
Weighted average stock price period | 30 days | |||
President [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long-Term Incentive Plan Target Grant Value | 700,000 | |||
President [Member] | Scenario, Forecast [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Long-Term Incentive Plan Target Grant Value | 897,534 | |||
Restricted Stock Units [Member] | Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock granted, value | 6,000,000 | |||
Weighted average stock price period | 30 days | |||
Fair value of market-based award | 2,400,000 | |||
Percent of grant price | 46.00% | |||
Amortization period for award | 2 years 6 months | |||
Restricted Stock Units [Member] | President [Member] | Restricted Stock Unit Award, 1 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock granted, value | 197,534 | |||
Vesting Period | 3 years | |||
Restricted Stock Units [Member] | President [Member] | Restricted Stock Unit Award, 2 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock granted, value | $3,500,000 | |||
Weighted average stock price period | 30 days |
Allowances_Allowances_For_Doub
Allowances (Allowances For Doubtful Accounts & Sales Returns) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts [Member] | |||
Allowances For Doubtful Accounts And Sales Returns [Line Items] | |||
Balance at beginning of year | $3,656 | $3,441 | $3,680 |
Charged to costs and expenses | 12,087 | 1,930 | 2,166 |
Reversals and write-offs | -2,134 | -1,715 | -2,405 |
Balance at end of year | 13,609 | 3,656 | 3,441 |
Reserve for Sales Returns and Allowances [Member] | |||
Allowances For Doubtful Accounts And Sales Returns [Line Items] | |||
Balance at beginning of year | 6,857 | 9,874 | 11,828 |
Charged to costs and expenses | 23,099 | 13,888 | 5,111 |
Reversals and write-offs | -11,173 | -16,905 | -7,065 |
Balance at end of year | $18,783 | $6,857 | $9,874 |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income Tax Expense/Benefit) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
U.S. | ($34,622) | ($7,818) | $12,060 |
Foreign | 26,073 | 67,777 | 133,488 |
Income (loss) before income taxes | -8,549 | 59,959 | 145,548 |
U.S. federal current | -12,049 | 3,311 | -6,364 |
U.S. state current | -23 | 355 | 597 |
Foreign current | 7,620 | 22,337 | 22,953 |
Total current income taxes | -4,452 | 26,003 | 17,186 |
U.S. federal deferred | 400 | 14,968 | -3,981 |
U.S. state deferred | 236 | 3,639 | -4,016 |
Foreign deferred | 193 | 4,929 | 5,016 |
Total deferred income taxes | 829 | 23,536 | -2,981 |
Total income tax expense (benefit) | ($3,623) | $49,539 | $14,205 |
Income_Taxes_Effective_Tax_Rat
Income Taxes (Effective Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
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 | -30.40% | -0.60% | -2.70% |
Effects of rates different than statutory & rate change | -62.20% | -47.90% | -25.00% |
Non-deductible/Non-taxable items | 115.80% | 3.40% | 4.60% |
Change in valuation allowance | -62.80% | 35.60% | -8.40% |
U.S. tax on foreign earnings | -77.40% | 38.20% | 2.00% |
Uncertain tax positions | 294.40% | 6.80% | 3.50% |
Audit settlements | -157.30% | 5.10% | |
Non-deductible write-off of intercompany debt | 1.90% | ||
Non-deductible impairment | 3.50% | ||
Write-off of income tax receivable | -18.40% | ||
Other | 5.70% | 1.60% | 0.80% |
Effective income tax rate | 42.40% | 82.60% | 9.80% |
Income_Taxes_Deferred_Income_T
Income Taxes (Deferred Income Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current deferred tax assets: | ||
Accrued expenses | $13,217 | $13,108 |
Unrealized loss on foreign currency current | 342 | 10 |
Other | 1,364 | |
Valuaton allowance | -7,008 | -5,139 |
Total current deferred tax assets | 6,551 | 9,343 |
Current deferred tax liabilities: | ||
Unremitted earnings of foreign subsidiary | -14,186 | -16,102 |
Other | -44 | |
Total current deferred tax liabilities | -14,230 | -16,102 |
Non-current deferred tax assets: | ||
Stock compensation expense | 9,760 | 9,652 |
Long-term accrued expesnes | 6,773 | 3,811 |
Net operating loss | 20,047 | 24,517 |
Intangible assets | 1,517 | 895 |
Property and equipment | 12,097 | 8,527 |
Future uncertain tax position offset | 445 | 1,804 |
Unrealized loss on foreign currency | 639 | |
Foreign tax credit | 6,259 | 8,524 |
Other | 1,207 | 1,755 |
Valuation allowance | -40,273 | -41,745 |
Total non-current deferred tax assets | 17,832 | 18,379 |
Non-current deferred tax liabilities: | ||
Intangible assets deferred tax assets | ||
Total non-current gross deferred tax liabilities |
Income_Taxes_Deferred_Tax_Narr
Income Taxes (Deferred Tax Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | ||
Deferred tax liability on unremitted earnings of foreign subsidiary | $14,186,000 | $16,102,000 |
Foreign subsidiary earnings | 65,800,000 | |
Withholding tax due with respect to the repatriation of earnings to the U.S. | 0 | |
Unremitted Earnings Of Foreign Subsidiaries Related To Non Payment Of Withholding Taxes | 450,400,000 | |
US Federal Net Operating Loss Carryforwards | 1,300,000 | |
US Statutory Net Operating Loss Carryforwards | 109,500,000 | |
Foreign tax credit carryforwards | 1,100,000 | |
Foreign Deferred Tax Assets On Foreign Net Operating Loss Carryforwards | 19,500,000 | |
Foreign Net Operating Loss Carryforwards | 54,200,000 | |
Valuation Allowance On Foreign Net Operating Loss Carryforwards | 19,500,000 | |
Valuation allowance on operating loss carryforwards | 6,800,000 | |
Valuation allowance | 47,300,000 | |
Net deferred tax assets | 10,200,000 | |
Amount Of Net Deferred Tax Assets Located In Foreign Jurisdictions | 8,200,000 | |
Pre Tax Profit Required To Realize Net Deferred Tax Assets | 35,500,000 | |
Amount of Net Deferred Tax Assets Related To Estimated Liabilities For Uncertain Tax Positions | 400,000 | |
Taxable Income Required To Realize Deferred Tax Assets Related To Estimated Liabilities For Uncertain Tax Positions | 2,200,000 | |
Equity Increase If Deferred Tax Assets Are Realized | $16,800,000 |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefits Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit - January 1 | $31,616 | $31,900 | $44,537 |
Gross increases - tax positions in prior period | 7 | 572 | |
Gross decreases - tax positions in prior period | -3,711 | -2,086 | -425 |
Gross increases - tax positions in current period | 904 | 3,743 | 4,310 |
Settlements | -20,210 | -2,291 | -16,260 |
Lapse of statute of limitations | -162 | -222 | -262 |
Unrecognized tax benefit - December 31 | $8,444 | $31,616 | $31,900 |
Income_Taxes_Unrecognized_Tax_1
Income Taxes (Unrecognized Tax Benefits Reconciliation Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | $8,444,000 | $31,616,000 | $31,900,000 | $44,537,000 |
Penalties and interest related to income tax examinations | 800,000 | 600,000 | 600,000 | |
Interest released | -4,900,000 | |||
Cumulative accrued balance of penalties and interest related to income tax examinations | 900,000 | 5,000,000 | 4,400,000 | |
Gross Increase In Tax Positions | 900,000 | |||
Gross decreases - tax positions in prior period | 3,711,000 | 2,086,000 | 425,000 | |
Expected decrease in unrecognized tax benefits in the next twelve months | 8,400,000 | |||
United States And Canada [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Gross decreases - tax positions in prior period | $24,100,000 |
Income_Taxes_Examination_Perio
Income Taxes (Examination Periods) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Netherlands [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2014 |
Netherlands [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2007 |
Canada [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2014 |
Canada [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2007 |
Japan [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2014 |
Japan [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2008 |
China [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2014 |
China [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2007 |
Singapore [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2014 |
Singapore [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2009 |
United States [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2014 |
United States [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2011 |
Income_Taxes_Examination_Perio1
Income Taxes (Examination Periods Narrative) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Maximum [Member] | |
State income tax returns examination period after filing | 5 years |
Examination period of any federal changes after formal notification | 2 years |
Minimum [Member] | |
State income tax returns examination period after filing | 3 years |
Earnings_Per_Share_Summary_Of_
Earnings Per Share (Summary Of Basic And Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) attributable to common shareholders | ($56,867) | $12,009 | $19,523 | $6,373 | ($18,962) | $10,420 | $131,343 | ||||
Less: adjustment for income allocated to participating securities | -36 | -645 | |||||||||
Net income (loss) attributable to common stockholders - basic and diluted | ($18,962) | $10,384 | $130,698 | ||||||||
Weighted average common shares outstanding - basic | 85,140 | 87,989 | 89,571 | ||||||||
Plus: dilutive effect of stock options and unvested restricted stock units | 1,100 | 1,017 | |||||||||
Weighted average common shares outstanding - diluted | 85,140 | 89,089 | 90,588 | ||||||||
Basic | ($0.70) | $0.12 | $0.19 | $0.06 | ($0.76) | $0.15 | $0.40 | $0.33 | ($0.22) | $0.12 | $1.46 |
Diluted | ($0.70) | $0.12 | $0.19 | $0.06 | ($0.76) | $0.15 | $0.40 | $0.33 | ($0.22) | $0.12 | $1.44 |
Earnings_Per_Share_Stock_Repur
Earnings Per Share (Stock Repurchase Plan Authorizations) (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 26, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | ||||
Anti-dilutive options and RSUs not included in the calculation of diluted income (loss) per share | 2 | 1 | 1.4 | |
Amount authorized for repurchase under share repurchase authorization | $350,000,000 | |||
Number of shares repurchased | 10.6 | 0.8 | ||
Weighted Average Price Of Shares Repurchased | $13.75 | $14.99 | ||
Value for shares repurchased | 145,600,000 | 12,500,000 | ||
Amount remaining for repurchase under share repurchase authorization | $202,100,000 |
Series_A_Preferred_Stock_Detai
Series A Preferred Stock (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jan. 27, 2014 | Dec. 31, 2014 | Jan. 27, 2014 | Dec. 31, 2013 | |
Series A Preferred Stock [Abstract] | ||||
Series A preferred shares, issued | 200,000 | 200,000 | 200,000 | |
Gross purchase price | $198,000,000 | |||
Gross purchase price per share | $990 | |||
Net proceeds from sale of series A preferred stock | 182,200,000 | |||
Issuance discount | 2,000,000 | |||
Direct issuance expenses | 15,800,000 | |||
Stated value of preferred shares per share | $1,000 | |||
Dividend rate | 6.00% | |||
Penalty dividend rate | 8.00% | |||
Accrued dividends | 3,067,000 | |||
Conversion price per share at option of holder | $14.50 | |||
Conversion price per share at option of company | $29 | |||
Number of consecutive trading days | 20 days | |||
Anti-dilutive Series A preferred shares not included in the calculation of EPS | 13,793,100 | |||
Percent Of Stated Value | 100.00% | |||
Maximum percent of stated value | 101.00% | |||
Series A preferred shares, redemption value | $203,100,000 | |||
Preferred Stock, Redemption Period | 8 years |
Commitments_and_Contingencies_
Commitments and Contingencies (Future Minimum Annual Rental Commitments Under Non-Cancelable Operating Leases) (Details) (USD $) | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | ||
Future Minimum Annual Rental Commitments Under Non-Cancelable Operating Leases [Abstract] | ||
2015 | $79,087 | |
2016 | 56,688 | |
2017 | 42,911 | |
2018 | 34,473 | |
2019 | 29,481 | |
Thereafter | 115,071 | |
Total minimum lease payments | 357,711 | [1] |
Future minimum sublease rentals | $1,000 | |
[1] | Minimum lease payments have not been reduced by minimum sublease rentals of $1.0 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. |
Commitments_and_Contingencies_1
Commitments and Contingencies (Operating Lease Rental Expense) (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Operating Leases Rent Expense [Abstract] | ||||||
Minimum rentals | $108,466,000 | [1] | $101,721,000 | [1] | $84,671,000 | [1] |
Contingent rentals | 16,875,000 | 18,178,000 | 16,519,000 | |||
Less: Sublease rentals | -868,000 | -646,000 | -619,000 | |||
Total rent expense | 124,473,000 | 119,253,000 | 100,571,000 | |||
Common area maintenance, parking and storage. | $9,600,000 | $9,700,000 | $8,500,000 | |||
[1] | Minimum rentals include all lease payments as well as fixed and variable common area maintenance (bCAMb), parking and storage fees, which were approximately $9.6 million, $9.7 million and $8.5 million during the years ended December 31, 2014, 2013 and 2012, respectively. |
Commitments_and_Contingencies_2
Commitments and Contingencies (Purchase Commitments) (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | USD ($) | EUR (€) | USD ($) |
Commitments & Contingencies [Abstract] | |||
Purchase commitments with third party manufacturers | $202.30 | $172.30 | |
Maximum potential raw materials for purchase under supply agreement | $4.30 | € 3.50 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Government Tax Audits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
Income Tax Contingency [Line Items] | |||
Interest from settlements, lapse of statutes and change in certainty | $2.30 | ||
Brazil [Member] | |||
Income Tax Contingency [Line Items] | |||
Net Expense of Tax Examination | 3.5 | 6.1 | |
Receivable related to Income Tax Examination | $3.50 |
Operating_Segments_and_Geograp
Operating Segments and Geographic Information (Narrative) (Details) | 12 Months Ended | 2 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 02, 2015 | |
segment | segment | segment | segment | |
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | 4 | 4 | 4 | |
Subsequent Event [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | 3 |
Operating_Segments_and_Geograp1
Operating Segments and Geographic Information (Schedule of Segment Income Statement) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | $206,473 | $302,401 | $376,920 | $312,429 | $228,673 | $288,524 | $363,827 | $311,656 | $1,198,223 | $1,192,680 | $1,123,301 | |||
Income from operations | -64,572 | 1,113 | 41,911 | 16,822 | -42,881 | 17,907 | 50,419 | 37,650 | -4,726 | 63,095 | 146,174 | |||
Foreign currency transaction losses, net | 4,885 | 4,678 | 2,500 | |||||||||||
Interest income | -1,664 | -2,432 | -1,697 | |||||||||||
Interest expense | 806 | 1,016 | 837 | |||||||||||
Other (income) expense, net | -204 | -126 | -1,014 | |||||||||||
Income (loss) before income taxes | -8,549 | 59,959 | 145,548 | |||||||||||
Depreciation and amortization | 37,413 | 41,506 | 36,694 | |||||||||||
Operating Segments [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 1,197,429 | 1,192,426 | 1,122,727 | |||||||||||
Income from operations | 147,999 | 196,339 | 248,044 | |||||||||||
Depreciation and amortization | 22,155 | 21,978 | 19,887 | |||||||||||
Intersegment eliminations [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Income from operations | -1,498 | 61 | 60 | |||||||||||
Unallocated corporate and other [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Income from operations | -131,827 | [1] | -112,494 | [1] | -91,125 | [1] | ||||||||
Depreciation and amortization | 9,358 | [1] | 11,526 | [1] | 9,804 | [1] | ||||||||
Americas [Member] | Operating Segments [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 489,915 | 498,552 | 495,852 | |||||||||||
Income from operations | 48,347 | [2] | 61,894 | [2] | 85,538 | [2] | ||||||||
Depreciation and amortization | 11,670 | 10,384 | 9,849 | |||||||||||
Asia Pacific [Member] | Operating Segments [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 350,449 | 342,752 | 292,846 | |||||||||||
Income from operations | 47,753 | [3] | 80,693 | [3] | 74,535 | |||||||||
Depreciation and amortization | 5,186 | 5,032 | 4,869 | |||||||||||
Japan [Member] | Operating Segments [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 123,461 | 134,863 | 164,565 | |||||||||||
Income from operations | 27,382 | [4] | 37,560 | [4] | 66,293 | |||||||||
Depreciation and amortization | 1,538 | 1,454 | 2,053 | |||||||||||
Europe [Member] | Operating Segments [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 233,604 | 216,259 | 169,464 | |||||||||||
Income from operations | 24,517 | [5] | 16,192 | 21,678 | ||||||||||
Depreciation and amortization | 3,761 | 5,108 | 3,116 | |||||||||||
Other businesses [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Revenues | 794 | 254 | 574 | |||||||||||
Income from operations | -19,400 | -20,811 | -10,805 | |||||||||||
Depreciation and amortization | $5,900 | $8,002 | $7,003 | |||||||||||
[1] | Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, restructuring, 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. See Note 6 - Restructuring for additional details. | |||||||||||||
[2] | Includes $4.0 million, $3.9 million and $1.4 million for the years ended December 31, 2014, 2013 and 2012, respectively, of asset impairment charges related to 36, 23 and four underperforming retail locations, respectively. | |||||||||||||
[3] | Includes $2.8 million and $0.2 million for the year ended December 31, 2014 and 2013, respectively, of asset impairment charges related to 14 and two underperforming retail locations, respectively. | |||||||||||||
[4] | Includes $6.6 million for the year ended December 31, 2013 of asset impairment charges related to 35 underperforming retail locations. | |||||||||||||
[5] | Includes $2.0 million for the year ended December 31, 2014 of asset impairment charges related to 27 underperforming retail locations. |
Operating_Segments_and_Geograp2
Operating Segments and Geographic Information (Schedule of Segment Income Statement footnote) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Asset Impairment Charges | $8,827 | $10,949 | $1,410 |
Americas [Member] | |||
Segment Reporting Information [Line Items] | |||
Underperforming retail locations | 36 | 23 | 4 |
Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Underperforming retail locations | 14 | 2 | |
Japan [Member] | |||
Segment Reporting Information [Line Items] | |||
Asset Impairment Charges | $6,600 | ||
Underperforming retail locations | 35 | ||
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Underperforming retail locations | 27 |
Operating_Segments_and_Geograp3
Operating Segments and Geographic Information (Schedule of Segment Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ||||
Total current deferred tax assets | $4,190 | $4,440 | ||
Income tax receivable | 9,332 | 10,630 | ||
Other receivables | 11,989 | 11,942 | ||
Prepaid expenses and other current assets | 30,156 | 29,175 | ||
Total current assets | 595,408 | 640,077 | ||
Property and equipment, net | 68,288 | [1] | 86,971 | [1] |
Intangible assets, net | 97,337 | 72,314 | ||
Goodwill | 2,044 | 2,508 | ||
Total non-current deferred tax assets | 17,886 | 19,628 | ||
Other assets | 25,968 | 53,661 | ||
Total assets | 806,931 | 875,159 | ||
Other businesses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total current assets | 18,132 | 14,093 | ||
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total current assets | 494,272 | 506,054 | ||
Operating Segments [Member] | Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total current assets | 127,077 | 139,855 | ||
Operating Segments [Member] | Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total current assets | 166,878 | 177,343 | ||
Operating Segments [Member] | Japan [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total current assets | 34,032 | 51,155 | ||
Operating Segments [Member] | Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total current assets | 166,285 | 137,701 | ||
Unallocated corporate and other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total current assets | $27,337 | [2] | $63,743 | [2] |
[1] | Not more than 10% of our long-lived assets resided in any individual foreign country in 2014 or 2013. | |||
[2] | Corporate assets primarily consist of cash and equivalents. |
Operating_Segments_Geographic_2
Operating Segments & Geographic Information (Schedule of Geographical Revenue) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $206,473 | $302,401 | $376,920 | $312,429 | $228,673 | $288,524 | $363,827 | $311,656 | $1,198,223 | $1,192,680 | $1,123,301 |
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 435,154 | 401,948 | 396,121 | ||||||||
International [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 763,069 | 790,732 | 727,180 | ||||||||
Japan [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 123,461 | 134,863 | 164,565 | ||||||||
Footwear [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,169,247 | 1,155,377 | 1,076,210 | ||||||||
Other Revenue [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $28,976 | $37,303 | $47,091 |
Operating_Segments_Geographic_3
Operating Segments & Geographic Information (Schedule of Geographical Long-Lived Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property and equipment, net | $68,288 | [1] | $86,971 | [1] |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property and equipment, net | 45,046 | 56,262 | ||
International [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property and equipment, net | $23,242 | $30,709 | ||
[1] | Not more than 10% of our long-lived assets resided in any individual foreign country in 2014 or 2013. |
Legal_Proceedings_Legal_Tax_Pr
Legal Proceedings (Legal Tax Proceedings) (Details) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 15, 2013 | Mar. 15, 2013 | Jan. 09, 2013 | Jan. 09, 2013 | Dec. 12, 2014 | Dec. 31, 2014 | Feb. 25, 2015 | Jan. 13, 2015 |
Mexican Federal Tax Authority [Member] | Mexican Federal Tax Authority [Member] | Mexican Federal Tax Authority [Member] | Mexican Federal Tax Authority [Member] | U.S. Customs and Border Protection [Member] | U.S. Customs and Border Protection [Member] | Brazilian Federal Tax Authorities [Member] | Brazilian Federal Tax Authorities [Member] | |
USD ($) | MXN | USD ($) | MXN | USD ($) | USD ($) | Subsequent Event [Member] | Subsequent Event [Member] | |
USD ($) | USD ($) | |||||||
Income Tax Examination [Line Items] | ||||||||
Paid duties | $3.50 | |||||||
Initial assessment for unpaid duties | 11.54 | 5.25 | ||||||
Projected unpaid duties | 12.4 | |||||||
Penalties and interest assessed | 22 | 280 | ||||||
Surety bond | $26 | 321 |
Legal_Proceedings_Litigation_M
Legal Proceedings (Litigation Matters And Other Disputes) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Legal Proceedings [Abstract] | |
Legal Settlement Accrual | $5.10 |
Minimum Reasonably Possible Loss | 0 |
Maximum Reasonably Possible Loss | $9.10 |
Unaudited_Quarterly_Consolidat2
Unaudited Quarterly Consolidated Financial Information (Schedule of Unaudited Quarterly Consolidated Financial Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unaudited Quarterly Consolidated Financial Information [Abstract] | |||||||||||
Revenues | $206,473 | $302,401 | $376,920 | $312,429 | $228,673 | $288,524 | $363,827 | $311,656 | $1,198,223 | $1,192,680 | $1,123,301 |
Gross profit | 76,530 | 155,017 | 202,571 | 156,227 | 102,901 | 153,581 | 200,867 | 165,849 | 590,345 | 623,198 | 607,977 |
Restructuring charges | 6,637 | 7,585 | 4,060 | 2,250 | 20,532 | ||||||
Asset impairment | 2,997 | 2,600 | 3,230 | 10,747 | 202 | ||||||
Income (loss) from operations | -64,572 | 1,113 | 41,911 | 16,822 | -42,881 | 17,907 | 50,419 | 37,650 | -4,726 | 63,095 | 146,174 |
Net income (loss) | -53,094 | 15,767 | 23,277 | 9,124 | -66,933 | 13,036 | 35,356 | 28,961 | -4,926 | 10,420 | 131,343 |
Net income (loss) attributable to common shareholders | ($56,867) | $12,009 | $19,523 | $6,373 | ($18,962) | $10,420 | $131,343 | ||||
Basic income per common share | ($0.70) | $0.12 | $0.19 | $0.06 | ($0.76) | $0.15 | $0.40 | $0.33 | ($0.22) | $0.12 | $1.46 |
Diluted income per common share | ($0.70) | $0.12 | $0.19 | $0.06 | ($0.76) | $0.15 | $0.40 | $0.33 | ($0.22) | $0.12 | $1.44 |
Unaudited_Quarterly_Consolidat3
Unaudited Quarterly Consolidated Financial Information (Additional Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Unaudited Quarterly Consolidated Financial Information [Abstract] | |||||
Cash repatiration and valuation allowance adjustment tax expense | $26,800,000 | ||||
Asset impairment charges | 10,400,000 | 8,827,000 | 10,611,000 | 1,410,000 | |
Goodwill impairment | 300,000 | 0 | 300,000 | 0 | |
Legal contingency accruals | 5,700,000 | ||||
Inventory write-down charges | 10,000,000 | 3,400,000 | 7,490,000 | 3,419,000 | |
Professional service fees | $1,100,000 |