Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 22, 2016 | Jun. 30, 2015 | |
Document And Entity Information[Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Registrant Name | Crocs, Inc. | ||
Entity Central Index Key | 1,334,036 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Common stock outstanding | 73,010,000 | ||
Entity Public Float | $ 1.1 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Trading Symbol | crox |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Operations [Abstract] | |||
Revenues | $ 1,090,630 | $ 1,198,223 | $ 1,192,680 |
Cost of sales | 579,825 | 603,893 | 569,482 |
Restructuring charges | 3,985 | ||
Gross profit | 510,805 | 590,345 | 623,198 |
Selling, general and administrative expenses | 559,095 | 565,712 | 549,154 |
Restructuring charges | 8,728 | 20,532 | |
Asset impairment charges | 15,306 | 8,827 | 10,949 |
Income (loss) from operations | (72,324) | (4,726) | 63,095 |
Foreign currency transaction loss, net | (3,332) | (4,885) | (4,678) |
Interest income | 967 | 1,664 | 2,432 |
Interest expense | (969) | (806) | (1,016) |
Other income, net | 914 | 204 | 126 |
Income (loss) before income taxes | (74,744) | (8,549) | 59,959 |
Income tax benefit (expense) | (8,452) | 3,623 | (49,539) |
Net income (loss) | (83,196) | (4,926) | 10,420 |
Dividends on Series A convertibles preferred shares | (11,833) | (11,301) | |
Dividend equivalents on Series A convertible preferred shares related to redemption value accretion and beneficial conversion feature | (2,978) | (2,735) | |
Net income (loss) attributable to common stockholders | $ (98,007) | $ (18,962) | $ 10,420 |
Net income (loss) per common share: | |||
Basic | $ (1.30) | $ (0.22) | $ 0.12 |
Diluted | $ (1.30) | $ (0.22) | $ 0.12 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | |||
Net income (loss) | $ (83,196) | $ (4,926) | $ 10,420 |
Other comprehensive income (loss): | |||
Foreign currency translation gain (loss), net | (32,561) | (33,004) | (5,335) |
Reclassification of cumulative foreign exchange translation adjustments to net income (loss), net of tax of $0, $0 and $(3), respectively | 299 | ||
Total comprehensive income (loss) | $ (115,757) | $ (37,930) | $ 5,384 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | |||
Tax Effect of Foreign Currency Translation Adjustment | $ 0 | $ 0 | $ (3) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Current assets: | |||
Cash and cash equivalents | $ 143,341 | $ 267,512 | |
Accounts receivable, net of allowances of $49,364 and $32,392, respectively | 83,616 | 101,217 | |
Inventories | 168,192 | 171,012 | |
Deferred tax assets, net | 4,190 | ||
Income tax receivable | 10,233 | 9,332 | |
Other receivables | 14,233 | 11,989 | |
Prepaid expenses and other assets | 26,334 | 30,156 | |
Total current assets | 445,949 | 595,408 | |
Property and equipment, net | 49,490 | 68,288 | |
Intangible assets, net | 82,297 | 97,337 | |
Goodwill | [1] | 1,973 | 2,044 |
Deferred tax assets, net | 6,608 | 17,886 | |
Other assets | 21,703 | 25,968 | |
Total assets | 608,020 | 806,931 | |
Current liabilities: | |||
Accounts payable | 63,336 | 42,923 | |
Accrued expenses and other liabilities | 91,835 | 80,216 | |
Deferred tax liabilities, net | 11,869 | ||
Accrued restructuring | 738 | 4,511 | |
Income taxes payable | 6,416 | 9,078 | |
Current portion of long-term borrowings and capital lease obligations | [2] | 4,772 | 5,288 |
Total current liabilities | 167,097 | 153,885 | |
Long term income tax payable | 4,547 | 8,843 | |
Long-term borrowings and capital lease obligations | [2] | 1,627 | 6,381 |
Long-term accrued restructuring | 230 | 348 | |
Other liabilities | 12,890 | 12,277 | |
Total liabilities | $ 186,391 | $ 181,734 | |
Commitments and contingencies | |||
Series A convertible preferred stock, par value $0.001 per share, 1,000,000 shares authorized, 200,000 shares issued and outstanding, redemption amount and liquidation preference of $203,000 and $203,067 as of December 31, 2015 and December 31, 2014, respectively | $ 175,657 | $ 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, 93,101,007 and 72,851,418 shares issued and outstanding, respectively, as of December 31, 2015 and 92,325,201 and 78,516,566 shares issued and outstanding, respectively, as of December 31, 2014 | $ 94 | $ 92 | |
Treasury stock, at cost, 20,249,589 and 13,808,635 shares as of December 31, 2015 and December 31, 2014, respectively | (283,913) | (200,424) | |
Additional paid-in capital | 353,241 | 345,732 | |
Retained earnings | 227,463 | 325,470 | |
Accumulated other comprehensive loss | (50,913) | (18,352) | |
Total stockholders' equity | 245,972 | 452,518 | |
Total liabilities, commitments and contingencies and stockholders' equity | $ 608,020 | $ 806,931 | |
[1] | Changes in core technology, goodwill, and indefinite lived intangible assets relate entirely to the impact of foreign currency translation. | ||
[2] | As the interest rate of each credit agreement is variable, typically based on the daily LIBOR rates plus an additional margin, the estimated fair value of each debt instrument approximates its carrying value. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets [Abstract] | ||
Allowances | $ 49,364 | $ 32,392 |
Series A preferred shares, par value | $ 0.001 | $ 0.001 |
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 | $ 203,000 | $ 203,067 |
Series A preferred shares, liquidation preference | $ 203,000 | $ 203,067 |
Preferred shares, par value | $ 0.001 | $ 0.001 |
Preferred shares, authorized | 4,000,000 | 4,000,000 |
Preferred shares, outstanding | 0 | 0 |
Common shares, par value | $ 0.001 | $ 0.001 |
Common shares, authorized | 250,000,000 | 250,000,000 |
Common shares, issued | 93,101,007 | 92,325,201 |
Common shares, outstanding | 72,851,418 | 78,516,566 |
Treasury stock, shares | 20,249,589 | 13,808,635 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total |
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, net of tax | (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, net of tax | (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 | ||||
Amortization of stock compensation | 13,094 | 13,094 | ||||
Forfeitures | (1,908) | (1,908) | ||||
Tax shortfall from share-based plans | (2,841) | (2,841) | ||||
Exercises of stock options and issuance of restricted stock awards | $ 2 | $ 2,698 | (836) | 1,864 | ||
Exercises of stock options and issuance of restricted stock awards (in shares) | 832 | (56) | ||||
Repurchase of common stock for tax withholding | $ (261) | (261) | ||||
Repurchase of common stock for tax withholding (in shares) | (22) | 22 | ||||
Purchase of treasury stock | $ (85,926) | (85,926) | ||||
Purchase of treasury stock (in shares) | (6,475) | 6,475 | ||||
Dividend - Series A preferred stock | (11,833) | (11,833) | ||||
Accretion - Series A preferred stock | (2,978) | (2,978) | ||||
Net income (loss) | (83,196) | (83,196) | ||||
Foreign currency translation, net of tax | (32,561) | (32,561) | ||||
BALANCE at Dec. 31, 2015 | $ 94 | $ (283,913) | $ 353,241 | $ 227,463 | $ (50,913) | $ 245,972 |
BALANCE (in shares) at Dec. 31, 2015 | 72,851 | 20,250 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Cash flows from operating activities: | |||
Net income (loss) | $ (83,196) | $ (4,926) | $ 10,420 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 35,993 | 37,413 | 41,506 |
Unrealized (gain) loss on foreign exchange, net | (814) | (11,100) | (6,420) |
Deferred income taxes | 289 | 829 | 23,536 |
Asset impairment charges | 15,306 | 8,827 | 10,949 |
Provision for doubtful accounts, net | 25,997 | 12,087 | 1,930 |
Share-based compensation | 11,236 | 12,503 | 11,871 |
Inventory write-down charges | 3,108 | 7,490 | 3,419 |
Non-cash restructuring charges | 6,413 | ||
Other non-cash items | 4,029 | 534 | 1,193 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net of allowances | (15,604) | (15,288) | (17,166) |
Inventories | (8,586) | (31,251) | (5,274) |
Prepaid expenses and other assets | 1,755 | 21,698 | (4,225) |
Accounts payable | 23,260 | (12,106) | (5,740) |
Accrued expenses and other liabilities | 8,765 | (15,824) | 14,256 |
Accrued restructuring | (3,677) | 4,859 | |
Income taxes | (8,163) | (33,809) | 3,209 |
Cash provided by (used in) operating activities | 9,698 | (11,651) | 83,464 |
Cash flows from investing activities: | |||
Cash paid for purchases of property and equipment | (12,826) | (15,991) | (40,424) |
Proceeds from disposal of property and equipment | (2) | 236 | 250 |
Cash paid for intangible assets | (5,660) | (41,035) | (28,404) |
Change in restricted cash | (139) | (1,202) | (1,180) |
Cash used in investing activities | (18,627) | (57,992) | (69,758) |
Cash flows from financing activities: | |||
Proceeds from preferred stock offering, net of issuance costs of $0.0 million and $15.8 million, respectively | 182,220 | ||
Dividends - Series A preferred stock | (11,900) | (8,234) | |
Proceeds from bank borrowings | 23,375 | ||
Repayment of bank borrowings and capital lease obligations | (5,290) | (5,177) | (13,160) |
Deferred debt issuance costs | 191 | (75) | (100) |
Deferred offering costs | (767) | ||
Issuances of common stock | 1,864 | 1,342 | 2,280 |
Purchase of treasury stock, net of issuances | (85,926) | (145,858) | (12,533) |
Repurchase of common stock for tax withholding | (261) | (787) | (256) |
Excess tax benefit from share-based compensation | 62 | ||
Cash provided by (used in) financing activities | (101,260) | 23,431 | (1,161) |
Effect of exchange rate changes on cash | (13,982) | (3,420) | 10,251 |
Net increase (decrease) in cash and cash equivalents | (124,171) | (49,632) | 22,796 |
Cash and cash equivalents - beginning of period | 267,512 | 317,144 | 294,348 |
Cash and cash equivalents - end of period | 143,341 | 267,512 | 317,144 |
Supplemental disclosure of cash flow information-cash paid during the period for: | |||
Interest, net of capitalized interest | 917 | 616 | 693 |
Income taxes | 19,923 | 33,655 | 20,274 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Assets acquired under capitalized leases | 20 | 61 | |
Accrued purchases of property and equipment | 851 | 771 | 2,165 |
Accrued purchases of intangibles | 2,988 | $ 4,742 | |
Intrinsic value of beneficial conversion feature - Series A preferred stock | 12,276 | ||
Accrued dividends | 3,000 | 3,067 | |
Accretion of dividend equivalents | 2,978 | $ 2,735 | |
Change in assets held for sale | $ 1,595 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements Of Cash Flows [Abstract] | ||
Series A preferred share issuance costs | $ 0 | $ 15.8 |
Organization & Summary Of Signi
Organization & Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Organization & Summary Of Significant Accounting Policies [Abstract] | |
Organization & Summary Of Significant Accounting Policies | CROCS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATE MENTS 1. ORGANIZATION & SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Crocs, Inc. and its subsidiaries (collectively the “Company,” “Crocs,” “we,” “our” or “us”) are engaged in the design, development, manufacturing, marketing , and distribution of footwear and accessories for men, women , and children. Basis of Presentation 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 the Company’s wholly owned subsidiaries . In April 2011, Crocs and an unrelated third party formed Crocs Gulf, LLC (“Crocs Gulf”) for the purpose of selling the Company’s products in the United Arab Emirates. Crocs has acquired all voting and dividend rights associated with Crocs Gulf and has therefore determined that Crocs Gulf is a wholly owned subsidiary. Noncontrolling Interests As of December 31, 201 5, all of the Company’s subsidiaries were, in substance, wholly owned. Transactions with Affiliates The Company receives inventory count services from RGIS, a wholly owned subsidiary of Blackstone which currently owns all of the outstanding shares of Company’s Series A convertible preferred stock (“S eries A preferred stock”) , which is convertible into approximately 15.9% of the Company’s common stock. Crocs paid a total of $0.5 million to RGIS for services received during 2015. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 2. RECENT ACCOUNTING PRONOUNCEMENTS Financial Instruments In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01: Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The pronouncement requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These changes become effective for fiscal years beginning after December 15, 2017. The expected adoption method of ASU 2016-01 is being evaluated by the Company and the adoption is not expected to have a significant impact on the Company’s consolidated financial statements. Classification of Deferred Taxes In November 2015, the FASB issued ASU 201 5 -1 7 : Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities , which provides guidance to simplify the financial statement presentation of deferred income taxes. The new guidance requires an entity to present deferred tax assets and liabilities as non-current in a classified balance sheet. Prior to the issuance of this guidance, deferred tax liabilities and assets were required to be separately classified into a current amount and a non-current amount in the balance sheet. The new guidance represents a change in accounting principle and is effective for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company elected to early adopt this guidance as of December 31, 2015 and to apply it prospectively. Prior period information was not adjusted. Because the application of this guidance affects the balance sheet classification only, adoption of this guidance did not have a material impact on our consolidated financial statements. As a result, 2015 current deferred tax assets and liabilities have been adjusted by approximately $15.9 million and are now reflected as noncurrent under the new standard. Inventory In July 2015, the FASB issued ASU 2015-11: Simplifying the Measurement of Inventory , which modifies existing requirements regarding measuring inventory at the lower of cost or market. Specifically, this standard eliminates the need to determine and consider replacement cost or net realizable value less an approximately normal profit margin when measuring inventory. This standard is effective prospectively after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact that this pronouncement will have on its consolidated financial statements. Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03: Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 requires retrospective adoption and will be effective for fiscal years beginning after December 15, 2015 . Early adoption is permitted. Crocs does not expect this pronouncement will have a material impact on the consolidated financial statements. Share-Based Payments In June 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. Crocs does not expect this pronouncement will have a material impact on the 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 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.” ASU 2014-09 becomes effective for reporting periods (including interim periods) beginning after December 15, 2017. Early application is permitted for reporting periods (including interim periods) beginning after December 15, 2016. This new standard permits the use of either the retrospective or cumulative effect transition method. Crocs is currently evaluating the impact that this pronouncement will have on the condensed consolidated financial statements. Crocs has not yet selected a transition method or determined the effect of the standard on financial reporting once the standard is effective. Other new pronouncements issued but not effective until after December 31, 2015 are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 17—Commitments & Contingencies and Note 19—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, Crocs recognizes an expense for the estimated loss. If there is the potential to recover a portion of the estim ated loss from a third party, Crocs make s a separate assessment of recoverability and reduce s the estimated loss if recovery is deemed probable. Accumulated Other Comprehensive Income Activity within the accumulated other comprehensive income (“AOCI”) balance consists solely of gains and losses resulting from the translation of foreign subsid iary financial statements to the Company’s 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 loss, 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, Crocs consider s the principal or most advantageous market in which a hypothetical sale or transfer would take place and consider s 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 marke t data, which require Crocs to develop its own assumptions. Crocs categorize s 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 d erivative instruments, should Crocs 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 are based on the prevailing LIBOR deposit rates and include t he applicable exchange rates, forward rates, and discount rates. The Company’s 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. T he carrying values of capital lease obligations and the line of credit approximate their fair values b ased on borrowing rates currently available to Crocs, with similar terms . 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 values, see “Inventory Valuation” below. Crocs reviews the carrying amounts of property and equipment and intangible assets when events and circumstances indicate the carrying value of the asset may not be recoverable. For such determination, Crocs generally use s either an income approach with inputs that are mainly unobservable, such as expected future cash flows, or a market approach using observable inputs su ch 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. Crocs consider s this type of estimate to be classified as a Level 3 measurement. See Note 9 —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. Crocs consider s 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 allowanc es, and do not bear interest. Crocs use s its 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 tre nds and conditions affecting the Company’s customer base and historical collection experience. Specific provisions are recorded fo r individual receivables when the Company become s aware of a customer’s inability to meet its financial obligations. See Note 13—Allowances for further discussion related to provisions for doubtful accounts , sale returns and allowances, and reserve for unapplied rebates. 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, Crocs evaluate s its inventory for possible impairment . Crocs estimates inventory fair value based on several subjective assumptions including estimated future demand and market conditions, as well as other observable factors suc h as current sell-through of the Company’s products, recent changes in demand for Crocs 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 stat ements of operations. See Note 4 —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 bas ed on the assets estimated useful life, which typically ranges 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. Assets and Liabilities Held for Sale The Company classifies a disposal group to be sold as held for sale when management approves and commits to a formal plan to actively market a disposal group and expects the sale to close within twelve months. Upon classifying a disposal group as held for sale, the disposal group is recorded at the lower of its carrying amount or its estimated fair value, reduced for selling costs. In determining the fair value of a disposal group, the Company considers both the net book value of the disposal group as a whole and the impact of any related foreign currency translation adjustments recorded within stockholders’ equity. Any losses are recognized as asset impairment charges in the Consolidated Statement of Operations. Depreciation expense is no longer recorded for any assets within a disposal group that is classified as held for sale. The fair value of a disposal group less any selling costs is assessed each reporting period it remains classified as held for sale and any subsequent changes are reported as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the disposal group at the time it was initially classified as held for sale. 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), Crocs assess es 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 ’s carrying value is not supported , on an undiscounted cash flow basis, the amount of impairment is measure d as the difference between the asset’s 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 , or groups of assets, to be abandoned or from which no future benefit is expected , are written down to zero in the period it is determined the asset or asset groups will no longer be used, and the assets , or asset groups, 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 liabili ties. For assets involved in Crocs’ retail business, the asset group is at the retail store level. See Note 5 – 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 estimated useful lives on a straight-line basis and are evaluated for impairment when events or circumstances indicate a carrying value m a y not be fully recoverable. Customer relationships are amortized on a straight-line basis. Intangible assets that are determined to have indefinite lives, such as trade names, are not amortized and are evaluated for impairment at least annually, or more frequently when circumstances imply possible impairment. 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. 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 the Company’s global information systems , is included in selling, general , and administrative expenses on the consolidated statements of operations. Th e following table sets forth Crocs’ 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 Crocs capitalize s certain internal and external software acquisition and development costs, including the costs of employees and contractors devoting time to 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 so ftware primarily consists of Crocs’ enterprise resource system software, warehouse management software , and point of sale software. At least annually, Crocs consider s the potential impairment of capitalized software by assessing the substantive service potential of the software, as well as 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 6 —Goodwill and Intangible Assets for further discussion. 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 year , 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 6 —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. The Company’s Series A convertible preferred stock issued in 2014 represents participatin g securities as holders of the S eries 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 the Company’s non-vested restricted stock and restricted stock unit 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 the Company’s earnings. In addition, the dilutive effect of each participating security, if any, is calculated using the more dilutive of the two-class method described above. This method assumes the if-converted method, which assumes conversion to common stock as of the beginning of the reporting date for any security that is more dilutive upon conversion . Anti-dilutive securities are excluded from diluted EPS. See Note 15—Earnings Per S hare for further discussion. Beneficial Conversion F eature The issuance of the Company’s Series A preferred s tock 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. Crocs 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. Crocs is accreting the discount over eight years from the date of issuance through the redemption date. Accretion expense is 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 wh en the related revenue is recognized . Shipping and Handling Costs and Fees Shipping and handling costs are expensed as incurred and are included in ‘Co st of sales ’ in the consolidated statements of operation . Shipping and handling fees billed to customers are included in revenues. Share-based Compensation Crocs share-based compensation plans allows stock options, restricted stock, and stock performance awards to be granted to plan participants, which includes certain officers, employees and members of the Company’s Board of Director s (the “Board”). Awards granted under these plans are fair valued , and are 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 Monte Carlo simulation model and the Black Scholes option pricing model , both of which require estimates for expected volatility, expected dividends, the risk-free interest rate , and the term of the option. If any of the assumptions used in these model s 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 compensa tion expense associated with Crocs’ 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 and will be amortized over the useful life of the assets beginning on the date the asset is placed in service. See Note 12 —Equity for additional information related to share-based compensation. Defined C ontribution P lans Crocs has a 401(k) plan known as the Crocs, Inc. 401(k) Plan (the “Plan”). The Plan is available to Crocs U.S. employees and provides employees with tax deferred salary deductions and alternative investment options. The Plan does not provide employees w ith the option to invest in the Company’s common stock. Employees may contribute up to 75.0% of their salary, su bject to certain limitations. The Company match es employees’ contributions to the Plan up to a maximum of 4.0 % of eligible compensation. The Company’s expense related to the matching contributions to the Plan was $ 6.0 million, $ 7.1 million and $ 6.8 million for the years ended December 31, 201 5, 2014, and 201 3 , respectively. Advertising Advertising costs are expensed as incurred and production costs are expensed when the advertising is first run. Total advertising costs reflected in ‘Selling, general, and administrative expenses’ on the consolidated statement of operations were $ 58.2 million, $ 44.7 million and $ 47.6 million for the years ended December 31, 2015, 2014 , and 2013 , respectively. Research and Development Research and development costs are expensed as incurred. Research and development expenses were $ 14.0 million, $ 16.7 million and $ 15.4 million for the years ended December 31, 2015, 2014 , and 2013 , respectively, and are included in ‘Selling, general, and administrative expenses’ in the consolidated statement of operations. Foreign Currency Translation and Foreign Currency Transactions Crocs’ 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 Crocs is directly and indirectly affected by fluctuations in foreign currency rates , which may adversely impact its financial performance. To mitigate the potential impact of foreign currency exchange rate risk, Crocs 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 tra ding or speculative purposes. Crocs recognize s 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 loss, net’ in the consolidated stat ements of operations. Crocs had no derivative instruments that qualified for hedge accounting during any of the periods presented. See Note 9 —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. Crocs provide s for income taxes at the current and future enacted tax rates and laws applicable in each taxing jurisdiction. Crocs use s a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertai nties in income tax positions. Crocs recognize s interest and penalties related to income tax matters in income tax expense in the consolidated statement of operations. See Note 1 4 —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. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventories [Abstract] | |
Inventories | 4. INVENTORIES The following table summarizes inventories by major classification as of December 31, 2015 and 2014 : December 31, 2015 2014 (in thousands) Finished goods $ 162,341 $ 167,515 Work-in-progress 918 703 Raw materials 4,933 2,794 Total inventories, net $ 168,192 $ 171,012 Inventory Write-down During the year ended December 31, 2015, Crocs recorded approximately $3.1 million of inventory write-down charges related to inventory with a market value lower than cost , which are reported in ‘Cost of sales’ in the consolidated statement of operations . During the year ended December 31, 2014, Crocs 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, Crocs 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 and are reported in ‘Cost of sales’ in the consolidated statement of operations. |
Property And Equipment
Property And Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property And Equipment [Abstract] | |
Property And Equipment | 5 . PROPERTY AND EQUIPMENT The following table summarizes property and equipment by major classification as of December 31, 2015 and 201 4 : December 31, 2015 2014 (in thousands) Machinery and equipment $ 36,864 $ 48,989 Leasehold improvements 81,593 91,962 Furniture, fixtures and other 23,576 23,818 Assets held for sale (1) 1,595 - Construction-in-progress 3,512 3,318 Property and equipment, gross (2) 147,140 168,087 Less: Accumulated depreciation (3) (97,650) (99,799) Property and equipment, net $ 49,490 $ 68,288 (1) This amount represents the South Africa disposal group assets held for sale . (2) Includes $ 0.1 million and $0.2 million of certain equipment held under capital leases and classified as equipment as of December 31, 2015 and 2014, respectively . (3) Includes $0.0 million and $ 0.1 million of accumulated depreciation related to certain equipment held under capital leases as of December 31, 2015 and 2014 , which are depreciated using the straight-line method over the lease term. During the year ended December 31, 2015, approximately $11.0 million of accumulated depreciation was related to assets that were written off or disposed. During the years ended December 31, 2015, 2014, and 2013 , Crocs recorded $ 16.3 million, $ 23.2 million, and $ 24.3 million, respectively, of depreciation expense of which $ 1.8 million, $ 1.7 million, and $ 2.9 million, respectively, was recorded in ‘Cost of sales’, with the remaining amounts recorded in ‘Selling, general and administrative expenses’ on the consolidated statements of operations. The Company recognized a loss on disposals of property and equipment of $1.4 million for the year ended December 31, 2015, and $0.0 million for both years ended December 31, 2014 and 2013, which is included in the ‘other income, net’ line on the consolidated statement of operations. Property and Equipment Asset Impairments Crocs evaluates its long-lived assets for impairment whe n events or circumstances indicate the carrying value of a long-lived asset may not be fully recoverable. During the years ended December 31, 2015, 2014, and 201 3, Crocs recorded $9.6 million, $8.8 million , and $10.6 million, respectively, in impairment charges related to underperforming retail locations that were unlikely to generate sufficient cash flows to fully recover the assets’ carrying value over the remaining economic life. During the year ended December 31, 2015, Crocs recorded an additional $5.7 million of impairment charges associated with assets held for sale in South Africa. The following table summarizes these asset impairment charges , by reportable operating segment , for the years ended December 31, 201 5 , 201 4, and 201 3 : Year Ended December 31, 2015 2014 2013 Impairment Charge Number of Stores (1) Impairment Charge Number of Stores (1) Impairment Charge Number of Stores (1) (in thousands, except store count data) Americas $ 7,237 27 $ 4,001 36 $ 3,861 23 Asia Pacific 6,450 (2) 36 (2) 2,807 14 185 2 Europe 1,584 21 2,019 27 6,565 35 Total asset impairment $ 15,271 84 $ 8,827 77 $ 10,611 60 (1) Represents stores with partially and fully depreciated assets. (2) I ncludes $ 5.7 million of impairment related to assets held for sale in nine South Africa retail locations. Long-Lived Assets Held for Sale As of December 31, 2015, the Company reclassified its operations in South Africa as held for sale as management approved and committed to a formal plan to actively market the disposal group and expects the sale to close within the next twelve months. Upon classifying the South Africa disposal group as held for sale, the Company measured the disposal group at the lower of its carrying value or fair value less any costs to sell, resulting in an impairment loss of $5.7 million during the three months ended December 31, 2015. |
Goodwill & Intangible Assets
Goodwill & Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill & Intangible Assets [Abstract] | |
Goodwill & Intangible Assets | 6 . GOODWILL & INTANGIBLE ASSETS The following table summarizes the goodwill and identifiable intangible assets as of December 31, 201 5 and 201 4 : December 31, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) Capitalized software $ 162,700 (1) $ (82,596) (2) $ 80,104 $ 157,615 (1) $ (62,591) (2) $ 95,024 Customer relationships 4,016 (4,016) - 5,945 (5,798) 147 Patents, copyrights, and trademarks 6,892 (5,135) 1,757 6,702 (4,931) 1,771 Core technology (3) 3,498 (3,498) - 4,170 (4,170) - Other 776 (637) 139 698 (636) 62 Total finite lived intangible assets 177,882 (95,882) 82,000 175,130 (78,126) 97,004 Indefinite lived intangible assets (3) 297 - 297 333 - 333 Goodwill (3) 1,973 - 1,973 2,044 - 2,044 Goodwill and intangible assets $ 180,152 $ (95,882) $ 84,270 $ 177,507 $ (78,126) $ 99,381 (1) Includes $4.1 million of software held under a capital lease classified as capitalized software as of each of December 31, 2015 and 201 4. During 2013, Crocs began an implementation of a new enterprise resource planning, (“ERP”) system, which was placed into service in 2015. As of December 31, 2015 and 2014, Crocs capitalized $4.1 million and $36.1 million, respectively, for costs associated with the development of and added functionality to the ERP system. (2) Includes $ 3.1 million and $ 2.5 million of accumulated amortization of software held under a capital lease as of December 31, 2015 and 201 4, respectively, which is amortized using the straight-line method over the useful life. (3) Change s in core technology, goodwill , and indefinite lived intangible assets relate entirely to the impact of foreign currency translation. During the years ended December 31, 201 5 , 201 4, and 201 3 , amortization expense recorded for intangible assets with finite lives was $19.7 million, $ 14.2 million and $17.2 million, respectively, of which $ 5.8 million, $4.9 million and $6.0 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, 201 5 : Amortization Fiscal years ending December 31, (in thousands) 2016 $ 18,100 2017 16,397 2018 14,513 2019 12,983 2020 10,483 Thereafter 9,524 Total $ 82,000 Goodwill Impairment Crocs assess es goodwill for impairment at the reporting unit level on an annual basis on t he last day of the yea r, or more frequently if events and circumstances indicate impairment may have occurred . If the carrying value of the goodwill exceeds its implied fair value, Crocs records an impairment loss equal to the difference. During the years ended December 31, 2015 and 2014, Crocs did not record any impairments related to goodwill. During the year ended December 31, 2013, Crocs recorded $0.3 million of goodwill impairment related to the retail channel of the Crocs Benelux B.V. business purchased by Crocs Stores B.V. subsidiary in July 2012. Goodwill and associated impairments are part of the Europe segment. |
Accrued Expenses And Other Curr
Accrued Expenses And Other Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Expenses And Other Current Liabilities [Abstract] | |
Accrued Expenses And Other Current Liabilities | 7 . ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES The following table summarizes accrued expenses and other current liabilities as of December 31, 201 5 and 201 4 : December 31, 2015 2014 (in thousands) Accrued compensation and benefits $ 20,973 $ 23,824 Professional services 15,019 16,212 Fulfillment, freight and duties 14,776 12,110 Accrued rent and occupancy 7,639 9,675 Sales/use and VAT tax payable 7,018 5,897 Accrued loss on disposal group (1) 6,743 - Customer deposits 3,236 3,075 Dividend payable 3,000 3,067 Travel and entertainment liabilities 2,150 199 Accrued legal liabilities 1,971 2,150 Deferred revenue and royalties payable 1,430 2,005 Other (2) 7,880 2,002 Total accrued expenses and other current liabilities $ 91,835 $ 80,216 (1) This amount represents accrued losses related to the South Africa disposal group held for sale and is inclusive of $6.7 million in foreign currency translation adjustments recorded within stockholders’ equity. (2) The amounts in ‘Other’ consist of various accrued expenses , of which no individual item accounted for more than 5% of the total balance as of December 31, 2015 or 2014. Asset Retirement Obligations Crocs record s 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. Crocs’ asset retirement obligation (“ARO”) liabilities are primarily associated with the disposal of property and equipment that the Company is contractually obligated to remove at the end of certain retail and office leases in order to restore the facilities back to original condition as specified in the related lease agreements. Crocs estimate s the fair value of these liabilities based on current store closing costs and discount s the costs back as if they were to be performed at the inception of the lease. At the inception of such leases, Crocs record s the ARO as a liability and also record s 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. Crocs’ ARO liability as of December 31, 201 5 and 201 4 was $ 2.0 million and $ 2. 2 million, respectively. |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Activities [Abstract] | |
Restructuring Activities | 8. RESTRUCTURING ACTIVITIES Restructuring On July 21, 2014, Crocs 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 by reducing excess overhead and enhancing the decision making process, and (4) closing retail locations around the world. The initial effects of these plans were incurred in 2014 and were continued throughout 2015. During the years ended December 31, 2015 and 2014, t h e Company recorded restructuring charges of $8.7 million and $24.5 million , respectively . As of December 31, 2015, Crocs concluded its restructuring efforts. The following table summarizes restructuring activity during the years ended December 31, 2015 and 2014: Year Ended December 31, 2015 2014 (in thousands) Severance costs $ 5,472 $ 12,500 Lease / contract exit and related costs 2,623 4,251 Other (1) 633 7,766 Total restructuring charges $ 8,728 $ 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 the Company’s total restructuring charges incurred during the years ended December 31, 2015 and 2014 by reportable segment: Year Ended December 31, 2015 2014 (in thousands) Americas $ 890 $ 4,259 Asia Pacific 3,542 7,422 Europe 2,824 3,934 Corporate 1,472 8,902 Total restructuring charges $ 8,728 $ 24,517 The following table summarizes the Company’s accrued restructuring balance and associated activity from December 31, 2014 through December 31, 2015: December 31, 2014 Additions Cash Payments Adjustments (2) December 31, 2015 (in thousands) Severance costs $ 3,154 $ 5,472 $ (8,000) $ $ 626 Lease/ contract exit and related costs 1,401 2,623 (3,807) (217) - Other (1) 304 633 (595) 342 Total accrued restructuring $ 4,859 $ 8,728 $ (12,402) $ (217) $ 968 (1) Includes expenses related to exiting stores and legal fees. (2) Represents reversal of prior year accrual as a result of subleasing an exited facility at a better than anticipated rate. As of December 31, 2015 and 2014, Crocs had a liability of approximately $1.0 million and $4.9 million, respectively, related to locations already closed and reductions in workforce in accru ed restructuring on the consolidated balance sheet. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 9 . FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements GAAP provides for a fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. See Note 3 –Summary of Significant Accounting Policies for additional detail regarding Crocs’ fair value measurement determinations. As of December 31, 2015 and 2014, Crocs’ assets and liabilities subject to fair value measurements consisted of cash equivalents of $7.5 million and $23.3 million, respectively, which are Level 1 assets, and foreign currency derivative liabilities of $0.1 million and $0.0 million, respectively, which are Level 2 assets. The Company’s Level 1 assets are classified in the consolidated balance sheets as ‘Cash and cash equivalents’ and ‘Prepaid expenses and other assets’ and the Level 2 assets are classified in the consolidated balance sheets as ‘Accrued expenses and other liabilities’. Non-Recurring Fair Value Measurements The majority of the Company’s 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 5 – Property and Equipment and Note 6 – Goodwill & Intangible Assets for discussions on impairment charges recorded during the periods presented. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | 10 . DERIVATIVE FINANCIAL INSTRUMENTS Crocs transacts business in various foreign countries and is therefore exposed to foreign currency exchange rate risk inherent in revenues, costs, and monetary assets and liabilities denominated in non-functional currencies. In general, Crocs enters into foreign currency exchange forward contracts 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. As these derivative instruments do not qualify as hedging instruments under the accounting standards for derivatives and hedging, they 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 loss, net’ in the consolidated statements of operations. For purposes of the cash flow statement, Crocs classifies the cash flows from derivative instruments at settlement from undesignated instruments in the same category as the cash flows from the related hedged items, generally within ‘Cash provided by (used in) operating activities ’ . The following table summarizes the notional amounts of outstanding foreign currency exchange contracts as of December 31, 2015 and December 31, 2014. 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 the Company’s exposure to the foreign currency exchange risks. December 31, 2015 2014 (in thousands) Foreign currency exchange forward contracts by currency: Japanese Yen $ 98,390 $ 44,533 Euro 34,219 134,755 British Pound Sterling 21,859 17,230 South Korean Won 7,981 14,590 Mexican Peso 7,277 13,180 Australian Dollar 6,459 7,913 South African Rand 6,402 4,355 Indian Rupee 5,036 3,356 Canadian Dollar 1,980 3,005 New Taiwan Dollar 1,798 3,229 Swedish Krona 1,655 1,918 Hong Kong Dollar 668 814 Russian Ruble 667 1,838 Singapore Dollar - 61,887 Chinese Yuan Renminbi - 5,376 Norwegian Krone - 917 New Zealand Dollar - 743 Brazilian Real - - Total notional value, net $ 194,391 $ 319,639 Latest maturity date January 2016 January 2015 The following table presents the amounts affecting the condensed consolidated statements of operations from derivative instruments and exposure from day-to-day business transactions in various foreign currencies for the years ended December 31, 2015, 2014 , and 2013: Year Ended December 31, 2015 2014 2013 (in thousands) Foreign currency gain (loss) $ 3,980 $ (1,097) $ (17,680) Derivatives not designated as hedging instruments: Foreign currency exchange forwards gain (loss) (7,312) (3,788) 13,002 Foreign currency transaction loss, net $ (3,332) $ (4,885) $ (4,678) The line ‘Foreign currency transaction loss, 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. |
Revolving Credit Facility & Ban
Revolving Credit Facility & Bank Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Revolving Credit Facility & Bank Borrowings [Abstract] | |
Revolving Credit Facility & Bank Borrowings | 11. REVOLVING CREDIT FACILITY & BANK BORROWINGS Senior Revolving Credit Facility On December 16, 2011, Crocs entered into an Amended and Restated Credit Agreement (as amended, the “Credit Agreement”), with the lenders named therein and PNC Bank, National Association (“PNC”), as a lender and administrative agent for the lenders . On December 27, 2013, Crocs entered into the Third Amendment to Amended and Restated Credit Agreement (the "Third Amendment"). The Third Amendment, among other things, allowed for the payment of dividends on the Series A preferred stock and permitted the Company to have greater flexibility to repurchase its Common Stock. See Note 16—Series A Preferred Stock for further details regarding the payment of dividends on the Series A preferred stock. On April 2, 2015, Crocs entered into the Sixth Amendment to Amended and Restated Credit Agreement (the “Sixth Amendment”) pursuant to which certain terms of the Credit Agreement were amended. The Sixth Amendment primarily amended certain definitions of the financial covenants to be more favorable to Crocs including (i) setting the minimum fixed charge coverage ratio to 1.00 to 1.00 through December 31, 2015, 1.15 to 1.00 through March 31, 2016 and 1.25 to 1.00 for each quarter thereafter, (ii) setting the leverage ratio to 4.00 to 1.00 through March 31, 2016 and 3.75 to 1.00 for each quarter thereafter, and (iii) reducing the Company’s global cash requirement from $100.0 million to $50.0 million. On September 1, 2015, the Company entered into the Eighth Amendment to Amended and Restated Credit Agreement (the “Eighth Amendment”) pursuant to which certain terms of the Credit Agreement were amended. The Eighth Amendment primarily amended certain definitions of the financial covenants to become more favorable to the Company including (i) increasing the exclusion of cash and non-cash charges from the EBITDAR calculation up to $85.0 million, not to exceed $65.0 million with respect to cash charges, (ii) setting the minimum fixed charge coverage ratio to 0.95 to 1.00 for the period ended September 30, 2015, (iii) allowing up to $40.0 million in stock repurchases to be made during the quarter ended September 30, 2015, (iv) suspending stock repurchases if the fixed charge coverage ratio is less than 1.00 to 1.00, and (v) eliminating the administrative agent basket through December 31, 2015. On December 24, 2015, the Company entered into the Tenth Amendment to Amended and Restated Credit Agreement (the “Tenth Amendment”), pursuant to which certain terms of the Credit Agreement were amended. The Tenth Amendment primarily: (i) permitted $18.9 million in bad debt write-downs to be added back to EBITDAR, and (ii) increased the other EBITDAR add-back limit from $85.0 million (as permitted by Amendment Eight) to $100.0 million. On February 18, 2016, the Company entered into the Eleventh Amendment to the Amended and Restated Credit Agreement which primarily: (i) extended the maturity date to February, 2021, (ii) resized the borrowing capacity of the facility to $75.0 million, (iii) amended certain definitions of the financial covenants to become more favorable to the Company, (iv) set the minimum fixed charge coverage ratio to 1.00 to 1.00 for the period ended June 30, 2016 and 1.10 to 1.00 thereafter, (v) set the maximum leverage ratio to 2.50 to 1.00 for the period ended June 30, 2016 and 2.00 to 1.00 thereafter, (vi) allows up to $50.0 million in stock repurchases to be made each fiscal year, subject to certain restrictions, and (vii) limited certain capital expenditures and commitments to an aggregate of $50.0 million per year. The Eleventh Amendment also changed the variable lending rate. For domestic rate loans, including swing loans, the interest rate is equal to a daily base rate plus a margin ranging from 0.50% to 0.75% based on certain conditions. For LIBOR rate loans, the interest rate is equal to a LIBOR rate plus a margin ranging from 1.50% to 1.75% based on certain conditions. As of December 31, 2015, the Company was not in compliance with the fixed charge coverage ratio and the leverage ratio under the Credit Agreement. On February 18, 2016, the Company received a waiver from the lenders of the financial covenants as of December 31, 2015 and the Company entered into the Eleventh Amendment to Amended and Restated Credit Agreement. The Company anticipates it will be in compliance with its covenants as of March 31, 2016, however, there can be no assurance that the Company will be in compliance at that date. As of December 31, 2015 and December 31, 2014, the Company had no outstanding borrowings under the Credit Agreement. As of December 31, 2015 and December 31, 2014, the Company had outstanding letters of credit of $1.3 million and $1.8 million, respectively, which were reserved against the borrowing base under the terms of the Credit Agreement. During the years ended December 31, 2015, 2014, and 2013, Crocs capitalized $0.2 million, $0.1 million, and $0.1 million, respectively, in fees and third party costs which were incurred in connection with the Credit Agreement, as deferred financing costs. Asia Pacific Revolving Credit Facility On August 28, 2015, a Crocs subsidiary entered into a revolving credit facility agreement with HSBC Bank (China) Company Limited, Shanghai Branch (“HSBC”) as the lender. The revolving credit facility enables Crocs to borrow uncommitted dual currency revolving loan facilities up to RMB 40.0 million, or the USD equivalent, and import facilities up to RMB 60.0 million, or the USD equivalent, with a combined facility limit of RMB 60.0 million. This revolving credit facility supports possible future net working capital needs in China. For loans denominated in USD, the interest rate is 2.1% per annum plus LIBOR for three months or any other period as may be determined by HSBC at the end of each interest period. For loans denominated in RMB, interest equals the one year benchmark lending rate effective on the loan drawdown date set forth by the People’s Bank of China with a 10% mark-up and is payable on the maturity date of the related loan. The revolving credit facility is guaranteed by Crocs, Inc. and certain accounts receivables in China are pledged as security under the revolving credit facility. The revolving credit facility can be canceled or suspended at any time at the discretion of the lender and contains provisions requiring Crocs to maintain compliance with certain restrictive covenants. As of December 31, 2015, Crocs had no outstanding borrowings under the revolving credit facility. As of December 31, 2015, the Company has received notification from the lender that the revolving credit facility has been temporarily suspended. Long-term Bank Borrowings On December 10, 2012, Crocs entered into a Master Installment Payment Agreement (“Master IPA”) with PNC in which PNC financed the Company’s recent implementation of a new ERP system, which began in October 2012 and was substantially completed in early 2015. The terms of each note payable, under the Master IPA, consist of a fixed interest rate and payment terms based on the amount borrowed and the timing of activity throughout the implementation of the ERP system. The Master IPA is subject to cross-default, cross-termination, and is coterminous with the Credit Agreement. As of December 31, 2015 and 2014, Crocs had $6.4 million and $11.6 million, respectively, of debt outstanding under five separate notes payable, of which $4.8 million and $5.3 million, respectively, represents current installments. As of December 31, 2015, 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, interest expense was capitalized to the consolidated balance sheets and amortized over the life of the assets, starting on the January 1, 2015 in-service date. During the years ended December 31, 2015 and 2014, Crocs capitalized $0.0 million and $0.4 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. December 31, 2015 Unused Borrowing Capacity (2) Carrying Value (3) Weighted Average Interest Rate (1) Borrowing Currency U.S.D. Equivalent December 31, 2015 December 31, 2014 (in thousands) Debt obligations Senior revolving credit facility LIBOR plus 1.25% - 2.00% $ 75,000 (4) $ 75,000 (4) $ - $ - Asia Pacific revolving credit facility LIBOR plus 2.10% RMB - (5) - (5) - - Long-term bank borrowings 2.63% 6,375 11,646 Total $ 75,000 6,375 11,646 Capital lease obligations 24 23 Total debt and capital lease obligations $ 6,399 $ 11,669 Current maturities $ 4,772 $ 5,288 Long-term debt and capital lease obligations $ 1,627 $ 6,381 (1) Carrying value represents the weighted average interest rate in effect at December 31 , 2015 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin. The interest rates presented represent stated rates and do not include the impact of the derivative instruments, deferred financing costs, original issue premiums or discounts and commitm ent fees, all of which affect Crocs’ overall cost of borrowing. (2) Unused borrowing capacity represents the maximum available under the applicable facility at December 31 , 2015 without regard to covenant compliance calculations or other conditions precedent to borrowing. (3) As the interest rate of each credit agreement is variable, typically based on the daily LIBOR rates plus an additional margin, the estimated fair value of each debt instrument approximates its carrying value. (4) On February 18, 2016, the Company entered into the Eleventh Amendment to the Amended and Restated Credit Agreement, which extended the maturity date to February 2021, resized the borrowing capacity of the facility to $75.0 million, and amended certain definitions of the financial covenants to become more favorable to the Company. (5) As of December 31, 2015, Crocs received notification that the Asia Pacific revolving credit facility had been temporarily suspended. The maturities of the Company’s debt obligations as of December 31, 2015 are presented below: December 31, 2015 (in thousands) Maturities of debt and capital lease obligations 2016 $ 4,772 2017 1,616 2018 4 Thereafter 7 Total principal debt maturities $ 6,399 Current portion $ 4,772 Noncurrent portion $ 1,627 As of December 31, 2015 and 2014, the fair value of the Company’s debt instruments approximates their reported carrying amounts. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Equity | 1 2 . EQUITY Equity Incentive Plans On August 15, 2005, the Company 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 the Board. As of December 31, 2015 and 2014 , 0.5 million and 0.6 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, the Company adopted and on June 28, 2011 the Company amended the 2007 Plan , which increased the allowable number of shares of 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 divi dends, and similar changes in the Company’s 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, consultan ts, and members of the Board. As of December 31, 2015 and 2014 , 3.5 million and 3.1 million shares of common stock, respectively, were issuable under the 2007 Plan pursuant to outstanding stock options and RSUs. Following the adoption of the 2015 Equity Incentive Plan (the “2015 Plan”), described below, no additional grants will be made under the 2007 Equity Incentive Plan. On June 8, 2015, the Company adopted t he 2015 Plan. Shares reserved and authorized for issuance under the Plan consist of 7,000,00 0 shares, plus up to 1,192,777 s hares available for issuance under the Company’s 2007 Plan as of June 8, 2015, plus up to 4,916,835 s hares subject to outstanding awards under the 2007 Plan that are cancelled or forfeited after the effective date of the 2015 Plan. S hares in the 2015 Plan are subject to adjustment for future stock splits, stock divi dends, and similar changes in Crocs’ 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 the Board. 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, 2015, 2014 , and 2013 : Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding as of 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 as of 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 as of December 31, 2014 1,696,130 $ 13.52 3.88 $ 4,435 Granted 35,000 $ 13.52 Exercised (284,791) $ 6.54 Forfeited or expired (150,590) $ 21.82 Outstanding as of December 31, 2015 1,295,749 $ 14.09 2.83 $ 1,261 Exercisable at December 31, 2015 1,159,445 $ 14.06 2.21 $ 1,261 Vested and expected to vest at December 31, 2015 1,295,749 $ 14.09 2.78 $ 1,261 During the years ended December 31, 2015, 2014 , and 201 3 , options issued were valued using the Black Scholes option pricing model using the following assumptions: Year Ended December 31, 2015 2014 2013 Expected volatility 43% 44% - 50% 50 - 64% Dividend yield - - - Risk-free interest rate 1.50% -1.72% 1.41% -1.71% 0.81% -1.62% Expected life (in years) 4.00 4.00 4.00 The weighted average computed value of options granted during the years ended December 31, 2015, 2014, and 2013 was approximately $ 4.74 , $ 5.35, and $ 7.33 , respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2015, 2014 , and 2013 was $ 1.7 million, $ 2.7 million , and $ 2.8 million, respectively. During the years ended December 31, 2015 and 2014 , Crocs received $1.9 million and $1.3 million in cash in connection with the exercise of stock options with no income tax benefit due to the Company’s use of ASC 740 – ‘Income Taxes’ (with-and-without approach) (“ASC 740”) ordering for purposes of determining when excess benefits have been realized (see Note 14 - Income Taxes). The total grant date fair value of stock options vested during the years ended December 31, 2015, 2014 , and 201 3 was $ 0.7 million, $ 0.8 million, and $ 1.2 million, respectively. As of December 31, 201 5 , Crocs had $ 0.7 million of total unrecognized share-based compensation expense related to unvested options, net of expected forfeitures, which is expected to be amorti zed over the remaining weighted average period of 2.52 years. Stock options under both the 2005 Plan and the 2007 Plan generally vest ratably over four years with the first year vesting at the end of the first year, followed by monthly vesting for the remaining three years. Restricted Stock Awards and Units From time to time, Crocs grant s restricted stock awards ( “ RSAs ” ) and restricted stock units ( “ RSUs ”) to its 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. Crocs typically grant s 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, 201 5 , 201 4, and 201 3 , the Board approved grants of 0.4 million , 0.3 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 year ended December 31, 201 5 : Time Vested RSUs Performance Vested RSUs Vest in 3 annual installments beginning one year after the date of grant Performance Goals By Weight Potential Award Further Time Vesting Weight 50% - Achievement of at least 85% of a one -year Earnings Before Interest and Taxes (“EBIT”) performance target Weight 30% - Achievement of at least 85% of a one -year revenue performance target Weight 20% - Achievement of at least 80% of a one -year free cash flow performance target Executive may earn from 0% to 200% of the performance-based RSUs based on the level of achievement of the performance goal Executive may earn from 0% to 200% of the performance-based RSUs based on the level of achievement of the performance goal Executive may earn from 0% to 200% of the performance-based RSUs based on the level of achievement of the performance goal 1/3 of the earned RSUs vest upon certification of achievement by the Compensation Committee and 2/3 vest equally on the one- and two-year anniversary of the certification date 1/3 of the earned RSUs vest upon certification of achievement by the Compensation Committee and 2/3 vest equally on the one-and two-year anniversary of the certification date 1/3 of the earned RSUs vest upon certification of achievement by the Compensation Committee and 2/3 vest equally on the one- and two-year anniversary of the certification date The following represents the vesting schedule of performance-based RSUs granted during the year ended December 31, 2014: Time Vested RSUs (50% of Award) Performance Vested RSUs (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 Achievement of at least 90% of a one -year revenue 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 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 The following represents the vesting schedule of performance-based RSUs granted during the years ended December 31, 2013 : Time Vested RSUs (50% of Award) Performance Vested RSUs (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, 201 5 , 201 4, and 201 3 , the Board approved the grant of 1.5 million, 0.9 million , and 0.9 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, 2015, 2014 , and 2013: Restricted Stock Awards Restricted Stock Units Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Units Fair Value 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 Granted 15,987 $ 15.01 2,866,562 $ 10.14 Vested (15,480) (1) $ 15.30 (505,025) (1) $ 16.20 Forfeited (1,328) $ 15.00 (1,270,630) $ 14.14 Unvested at December 31, 2015 6,667 $ 15.00 3,088,378 $ 10.75 (1) The RSAs vested during the years ended December 31, 2015, 2014 , and 2013 consisted entirely of time-based awards. The RSUs vested during the year ended December 31, 2015 consisted of 67,893 performance-based awards and 437,132 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 total grant date fair value of RSAs vested during the years ended December 31, 2015, 2014 , and 2013 was $ 0.2 million, $ 1.0 million , and $ 1.3 million, respectively. As of December 31, 201 5 , Crocs 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. As of December 31, 2015, the unvested RSAs are expected to be amorti zed over the remaining weighted average period of 0.44 years . The total grant date fair value of RSUs vested during the years ended December 31, 2015, 2014 , and 2013 was $ 8.2 million, $ 9.6 million and $ 7.1 million, respectively. As of December 31, 201 5 , Crocs had $ 18.5 million of total unrecognized share -based compensation expense related to unvested restricte d stock units, net of expected forfeitures, of which $5.7 million is related to performance-based awards and $12.8 million is related to time-based awards . As of December 31, 2015, t he unvested RSUs are expected to be amorti zed over the remaining weighted average period of 1.84 years, which consists of a r emaining weighted average period of 1.73 years related to performance-based awards and a remaining weighted average period of 1.95 years related to time-based awards. Share-based Compensation During the years ended December 31, 2015 , 2014 , and 2013 , Crocs recorded $11.2 million , $12.7 million , and $ 12.5 million, respectively, of pre-tax share-based compensation expense of which $0.0 million, $0.2 million , and $0.7 million, respectively, related solely to the constr uction and implementation of the Company’s ERP, which was capitalized to the consolidated balance sheets and amortized over the useful life of the software beginning on the January 1, 2015 in-service date. Appointment of CFO On November 4, 2015, the Board appointed Carrie Teffner as Executive Vice President and Chief Financial Officer, effective December 16, 2015. In connection with her appointment, Ms. Teffner resigned as a member of the Board and now serves as the Company’s principal financial officer and principal accounting officer. Upon the commencement of her employment, Ms. Teffner was granted a time-vesting RSU award representing the right to receive shares of the Company’s common stock equal to $1,000,000 , based on a 30 -day weighted-average stock price as of the date Ms. Teffner’s appointment was publicly announced. RSUs will vest in three annual installments beginning on the first anniversary of her start date, subject to her continued employment with the Company as of each vesting date. In addition, Ms. Teffner was granted a performance-vesting RSU award, representing the right to receive shares of the Company’s common stock equal to $1,000,000 , based on a 30 -day weighted-average stock price as of the date Ms. Teffner’s appointment was publicly announced. The RSUs vest based on the achievement of certain share price levels on or before the fourth anniversary of her start date, subject to continued employment with the Company. |
Allowances
Allowances | 12 Months Ended |
Dec. 31, 2015 | |
Allowances [Abstract] | |
Allowances | 13 . ALLOWANCES The changes in the allowance for doubtful accounts , inclusive of unapplied rebate reserves, and reserve for sales returns and allowances for the years ended December 31, 2015, 2014, and 201 3 , are as follows: Consolidated reserves and allowances Allowance for doubtful accounts Reserve for sales returns and allowances Reserve for unapplied rebates Total (in thousands) Beginning balance at December 31, 2012 $ (3,441) $ (7,086) $ (2,788) $ (13,315) Reduction in revenue - (55,784) (5,420) (61,204) Expense (1,930) - - (1,930) Recoveries, applied amounts, and write-offs 1,715 57,460 6,761 65,936 Ending balance at December 31, 2013 (3,656) (5,410) (1,447) (10,513) Reduction in revenue - (69,834) (5,397) (75,231) Expense (12,087) - - (12,087) Recoveries, applied amounts, and write-offs 2,134 68,030 (4,725) 65,439 Ending balance at December 31, 2014 (13,609) (7,214) (11,569) (32,392) Reduction in revenue - (71,649) (11,106) (82,755) Expense (26,225) - - (26,225) Recoveries, applied amounts, and write-offs 3,466 74,224 14,318 92,008 Ending balance at December 31, 2015 $ (36,368) $ (4,639) $ (8,357) $ (49,364) During the year ended December 31, 2015, Crocs had multiple China distributors default on their payment obligations. As a result, the Company reassessed the collectability of its accounts receivable balances for its China operations and concluded that a significant increase in the allowance for doubtful accounts was required. Accordingly, Crocs has increased its China allowance for doubtful accounts by $23. 2 million, resulting in total allowances in China of $3 6.4 million and $21.1 million as of December 31, 2015 and 2014, respectively. The Company’s net accounts receivable balance for its China operations as of December 31, 2015 and 2014 wa s $ 5.1 million and $17.5 million, respectively. The changes in the allowance for doubtful accounts, inclusive of unapplied rebate reserves, and reserves for sale returns and allowances related to China operations for the years ended December 31, 2015, 2014, and 201 3 , are as follows: China reserves and allowances Allowance for doubtful accounts Reserve for sales returns and allowances Reserve for unapplied rebates Total (in thousands) Beginning balance at December 31, 2012 $ (77) $ (87) $ (2,865) $ (3,029) Reduction in revenue - (2,371) - (2,371) Expense 37 - - 37 Recoveries, applied amounts, and write-offs 16 2,233 1,814 4,063 Ending balance at December 31, 2013 (24) (225) (1,051) (1,300) Reduction in revenue - (6,921) - (6,921) Expense (8,552) - - (8,552) Recoveries, applied amounts, and write-offs 136 3,103 (7,572) (4,333) Ending balance at December 31, 2014 (8,440) (4,043) (8,623) (21,106) Reduction in revenue - (7,769) (3,511) (11,280) Expense (23,163) - - (23,163) Recoveries, applied amounts, and write-offs 1,315 11,618 6,172 19,105 Ending balance at December 31, 2015 $ (30,288) $ (194) $ (5,962) $ (36,444) As of December 31, 2015 and 2014, China operations accounted f or $4 1.6 million and $38.6 million, respectively, of the Company’s total gross accounts receivable balances, of which $38.2 million and $36.9 million, respectively, were past due. As of December 31, 2015 and 2014, China operations had total accounts receivable reserves of $36.4 million and $21.1 million, respectively, associated with these receivables. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 14. INCOME TAXES The following table sets forth income before taxes and the expense for income taxes for the years ended December 31, 2015, 2014, and 2013 : December 31, 2015 2014 2013 (in thousands) Income (loss) before taxes: U.S. $ (83,537) $ (34,622) $ (7,818) Foreign 8,793 26,073 67,777 Total income (loss) before taxes (74,744) (8,549) 59,959 Income tax expense: Current income taxes U.S. federal 480 (12,049) 3,311 U.S. state 195 (23) 355 Foreign 7,488 7,620 22,337 Total current income taxes 8,163 (4,452) 26,003 Deferred income taxes: U.S. federal (3,902) 400 14,968 U.S. state (118) 236 3,639 Foreign 4,309 193 4,929 Total deferred income taxes 289 829 23,536 Total income tax expense (benefit) $ 8,452 $ (3,623) $ 49,539 T he following table sets forth income reconciliations of the statutor y federal income tax rate to actual rates based on income or loss before income taxes for the years ended December 2015, 2014, and 2013: December 31, 2015 2014 2013 (in thousands) Federal income tax rate $ (26,160) 35.0 % $ (2,992) 35.0 % $ 20,781 35.0 % State income tax rate, net of federal benefit (543) 0.7 2,598 (30.4) (373) (0.6) Effect of rate differences (3,678) 4.9 5,317 (62.2) (28,671) (47.9) Non-deductible / Non-taxable items (2,181) 2.9 (9,904) 115.8 2,231 3.4 Change in valuation allowance 10,892 (14.5) 5,370 (62.8) 21,370 35.6 U.S. tax on foreign earnings 32,879 (43.9) 6,620 (77.4) 22,877 38.2 Uncertain tax positions (3,952) 5.3 (25,172) 294.4 4,091 6.8 Audit settlements 1,167 (1.6) 13,448 (157.3) 3,035 5.1 Non-deductible write-off of intercompany debt - - - - 1,114 1.9 Non-deductible impairment - - - - 2,118 3.5 Write-off of income tax receivable - - 1,577 (18.4) - - Other 28 (0.1) (485) 5.7 966 1.6 Effective income tax rate $ 8,452 (11.3) % $ (3,623) 42.4 % $ 49,539 82.6 % The following table sets forth deferred income tax assets and liabilities as of December 2015 and 2014: December 31, 2015 2014 (in thousands) Current deferred tax assets: Accrued expenses $ - $ 13,217 Unrealized loss on foreign currency - 342 Other - - Valuation allowance - (7,008) Total current deferred tax assets (1) $ - $ 6,551 Current deferred tax liabilities: Unremitted earnings of foreign subsidiary $ - $ (14,186) Other - (44) Total current deferred tax liabilities (1) $ - $ (14,230) Non-current deferred tax assets: Stock compensation expense $ 7,142 $ 9,760 Long-term accrued expenses 26,114 6,773 Net operating loss and charitable contribution carryovers 22,518 20,047 Intangible assets 4,725 1,517 Property and equipment - 12,097 Future uncertain tax position offset 456 445 Unrealized loss on foreign currency 466 - Foreign tax credit 27,109 6,259 Other 5,548 1,207 Valuation allowance (56,572) (40,273) Total non-current deferred tax assets $ 37,506 $ 17,832 Non-current deferred tax liabilities: Unremitted earnings of foreign subsidiary $ (24,572) $ - Property and equipment (6,432) - Total non-current deferred tax liabilities $ (31,004) $ - (1) In November 2015, the FASB issued guidance to simplify the financial statement presentation of deferred income taxes. The new guidance requires an entity to present deferred tax assets and liabilities as non-current in a classified balance sheet. Prior to the issuance of this guidance, deferred tax liabilities and assets were required to be separately classified into a current amount and a non-current amount in the balance sheet. The new guidance represents a change in accounting principle and is effective for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company elected to early adopt this guidance as of December 31, 2015 and to apply it prospectively. Prior period information was not adjusted. Because the application of this guidance affects the balance sheet classification only, adoption of this guidance did not have a material impact on our consolidated financial statements. As of December 31, 201 5 , U.S. income and foreign withholding taxes have not been provided on for approximately $249.3 million of unremitted earnings of subsidiaries operating outside of the U.S. These earnings are estimated to represent the excess of the financial rep orting over the tax basis in Crocs’ 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. Crocs maintains a valuation allowance of $56. 5 million on certain deferred tax assets in various tax jurisdictions for which the Company believes it is not more-likely-than-not to realize, and relate primarily to state and foreign net operation losses and other tax attributes across all jurisdictions. As a result of certain accounting realization requirements, the table of deferred tax assets and liabilities shown above does not includ e certain deferred tax assets as of December 31, 201 5 that arose directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting. Equity w ould be increased by $18.2 million if and when such deferred tax assets are ultimately realized. Crocs applies 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, 2015, 2014, and 2013: December 31, 2015 2014 2013 (in thousands) Unrecognized tax benefit—January 1 $ 8,444 $ 31,616 $ 31,900 Gross increases—tax positions in prior period 643 7 572 Gross decreases—tax positions in prior period (385) (3,711) (2,086) Gross increases—tax positions in current period 549 904 3,743 Settlements (4,126) (20,210) (2,291) Lapse of statute of limitations (168) (162) (222) Unrecognized tax benefit—December 31 $ 4,957 $ 8,444 $ 31,616 Unrecognized tax benefits of $ 5.0 million, $ 8.4 million and $31.6 million as of December 31, 201 5 , 201 4, and 201 3 , respectively, if recognized, would reduce the annual effective tax rate offset by deferred tax assets recorded for uncertain tax positions. The Company also recorded a net benefit of $2.8 million related to increases in 2015 unrecognized tax benefits, net of amounts effectively settled under audit in several major jurisdictions including Japan and Finland. 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, Crocs is unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. As it relates to the impact of Uncertain Tax Positions on the rate reconciliation, the primary impact includes audit settlements, net increases in position changes (both are noted as part of the tax position tabular disclosure), and accrued interest expense. The gross impact of positions effectively settled are disclosed separately as audit settlements. The net benefit related to audit settlements is not expected to recur in future periods. Note that the interest component, while carried as a liability on the balance sheet and recorded as a component of tax expense, is excluded from the tabular disclosure pursuant to the guidance under ASC 740-10-50. 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, 2015, 2014 and 201 3, Crocs recorded approximately $ 0. 2 million, $ 0. 8 million and $0.6 million, respectively, of penalties and interest. During the year ended December 31, 2015, Crocs released $0. 6 million of interest from settlements, lapse of statutes, and change in certainty. The cumulative accrued balance of penalties and interest was $ 0.5 million, $ 0.9 million and $ 5.0 million, as of December 31, 2015, 2014 and 201 3, respectively. The following table sets forth the tax years subject to examination for the major jurisdictions where the Company conducts business as of December 31, 2015: Netherlands 2008 to 2015 Canada 2008 to 2015 Japan 2009 to 2015 China 2007 to 2015 Singapore 2011 to 2015 United States 2011 to 2015 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, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 1 5 . EARNINGS PER SHARE The following table illustrates the basic and diluted earnings (loss) per share (“EPS”) computations for the years ended December 31, 2015, 2014, and 201 3 . See Note 3 – Summary of Significant Accounting Policies for additional detail regarding the Company’s EPS calculations. Year Ended December 31, 2015 2014 2013 (in thousands) Numerator Net income (loss) attributable to common stockholders $ (98,007) $ (18,962) $ 10,420 Less: adjustment for income allocated to participating securities - - (36) Net income (loss) attributable to common stockholders - basic and diluted $ (98,007) $ (18,962) $ 10,384 Denominator Weighted average common shares outstanding - basic 75,604 85,140 87,989 Plus: dilutive effect of stock options and unvested restricted stock units - - 1,100 Weighted average common shares outstanding - diluted 75,604 85,140 89,089 Net income (loss) attributable per common share: Basic $ (1.30) $ (0.22) $ 0.12 Diluted $ (1.30) $ (0.22) $ 0.12 Diluted EPS is calculated using the two-class method for options and RSUs and the if-converted method for Series A preferred stock. For the years ended December 31, 2015, 2014, and 2013 , 2.1 million, 2.0 million , and 1.0 million options and RSUs, respectively, were ex cluded in the calculation of diluted EPS under the two-class method because the effect would be anti-dilutive. The Series A preferred shares were excluded in the calculation of diluted EPS under the if-converted method because the effect would be anti-dilutive. If converted, Series A preferred stock would represent approximately 15.9% of the Company’s common stock outstanding or 13.8 million additional common shares, as of December 31, 2015. See Note 16 — Series A Preferred Stock for further details regarding the preferred share offering. Stock Repurchase Plan Authorizations Crocs continues to evaluate options to maximize the returns on its cash and maintain an appropriate capital structure, including, among other alternatives, repurchases of common stock. On December 26, 2013, Crocs’ Board approved the repurchase of up to $350.0 million of the Company’s common stock. The number, price, structure , and timing of the repurchases will be at the Company’s sole discretion and future repurchases will be evaluated by the Company depending on market conditions, liquidity needs , and other factors. Share repurchases may be made in the open market or in privately negotiated transactions. The repurchase authorization does not have an expiration date and does not obligate Crocs to acquire any particular amount of its common stock. The Board may suspend, modify or terminate the repurchase program at any time without prior notice. During the year ended December 31, 2015, Crocs repurchased approximately 6.5 million shares at a weighted average price of $13.24 per share for an aggregate price of approximately $85.9 million, in cluding related commission charges, under the publicly announced repurchase plan. During the year ended December 31, 2014, Crocs 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 . As of December 31, 2015, subject to certain restrictions on repurchases under the Company’s revolving credit facility, Crocs had $118.7 million remaining under the repurchase authorizations. |
Series A Preferred Stock
Series A Preferred Stock | 12 Months Ended |
Dec. 31, 2015 | |
Series A Preferred Stock [Abstract] | |
Series A Preferred Stock | 16. SERIES A PREFERRED STOCK On January 27, 2014, Crocs issued 200,000 shares of Series A preferred stock to Blackstone Capital Partners VI L.P. (“Blackstone”) and certain of its permitted transferees , for an aggregate purchase price of $198.0 million, or $990.00 per share, pursuant to an Investment Agreement between Crocs and Blackstone, dated December 28, 2013 (as amended, the “Investment Agreement”). In connection with the issuance of the Series A preferred stock, Crocs 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 the Company’s 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 Crocs fails 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 the Company’s common stock and are entitled to vote together with the holders of the Company’s common stock as a single class, in each case, on an as-converted basis. As of December 31, 201 5 and 2014 , Crocs had accrued dividends of $3.0 million and $ 3.1 million , respectively on the consolidated balance sheets, which were paid in cash to holders of the Series A preferred stock on January 4, 2016 and January 2, 2015 , respectively. 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 the Company’s 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 common stock based on the conversio n rate in place as of December 31, 2015. 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 eight h anniversary of the c losing, Crocs will have the right to redeem and the holders of the Series A preferred stock will have the right to require Crocs to repurchase all or any portion of the Series A preferred stock at 100% of the stated value thereof plus all accrued and unpaid dividends. Upon certain change of control events involving the Company, the holders can require Crocs to repurchase the Series A preferred stock at 101% of the stated value thereof plus all accrued and 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 $203.0 million using an appropriate accretion method over a redemption period of eight year s, as this represents the earliest probable date at which the Series A preferred stock will become redeemable. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 17 . COMMITMENTS AND CONTINGENCIES Rental Commitments and Contingencies Crocs rent s space for its 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.’ Fiscal years ending December 31, 2016 $ 77,127 2017 57,258 2018 46,928 2019 37,621 2020 33,587 Thereafter 105,310 Total minimum lease payments (1) $ 357,831 (1) Minimum lease payments have not been reduced by minimum sublease rentals of $0.2 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 s ales in excess of stipulated amo unts. The following table summarizes the composition of rent expense under operating leases for the years ended December 31, 2015, 2014 , and 2013: Year Ended December 31, 2015 2014 2013 (in thousands) Minimum rentals (1) $ 96,579 $ 108,466 $ 101,721 Contingent rentals 14,929 16,875 18,178 Less: Sublease rentals (322) (868) (646) Total rent expense $ 111,186 $ 124,473 $ 119,253 (1) Minimum rentals include all lease payments as well as fixed and variable common area maintenance, parking and storage fees, which were approximately $ 9.1 million, $9.6 million, and $9.7 million during the years ended December 31, 2015, 2014, and 2013, respectively. Purchase Commitments In December 2011, Crocs renewed and amended its supply agreement with Finproject S.p.A. (formerly known as Finproject s.r.l.), which provides Crocs the exclusive right to purchase certain raw materials used to manufacture its products. The agreement also provides that Crocs meet s minimum purchase requirements to maintain exclusivity throughout the term of the agreement, which expires December 31, 2016. Historically, the minimum purchase requireme nts have not been onerous and Crocs do es not expect them to become onerous in the future. Depending on the material purchased, pricing was based either on contracted price or was subject to quarterly reviews and fluctuates based on order volume, currency fluctuations , and raw material pric es. Pursuant to the agreement, Crocs guarantee s the payment for certain third-party manufacturer purchases of these raw materials up to a maximum potential amount of €3.5 million (approximately $3.8 million as of December 31, 2015 ) . As of December 31, 2015 and 2014, Crocs had firm purchase commitments with certain third-party manufacturers of $ 158.2 million and $ 202.3 million , respectively . Government Tax Audits Crocs is regularly subject to, and is currently undergoing, audits by tax authorities in the United States and several foreign jurisdictions for prior tax years. See Note 1 9 – 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, 2015 | |
Operating Segments & Geographic Information [Abstract] | |
Operating Segments & Geographic Information | 18 . OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION During 2013 and 2014, Crocs had four reportable operating segments based on the geographic nature of the Company’s operations: Americas, Asia Pacific, Japan, and Europe. Crocs’ ‘Other businesses’ category aggregates insignificant operating segments that do not meet the reportable segment threshold and includes manufacturing operations located in Mexico, Italy and Asia. The composition of the Company’s reportable operating segments is consistent with that used by Crocs’ chief operating decision maker, (“CODM”) to evaluate performance and allocate resources. Subsequent to December 31, 2014, Crocs’ internal reports reviewed by the CODM began consolidating Japan into the Asia Pacific segment. This change aligned the Company’s internal reporting to its new strategic model and management structure, as Japan and Asia Pacific are now managed and analyzed as one operating segment by management and the CODM. Accordingly, Crocs now has three reportable segments for 2015 as well as the ‘Other Businesses’ category and prior period segment results have been reclassified to reflect this change. Each of the reportable operating segments derives its revenues from the sale of footwear 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 ‘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. Segment performance is evaluated based on segment results without allocating corporate expenses, or indirect general, administrative, and other expenses. Segment profits or losses include adjustments to eliminate intersegment sales. As such, reconciling items for segment operating income represent unallocated corporate and other expenses as well as intersegment eliminations. Year Ended December 31, 2015 2014 2013 (in thousands) Revenues: Americas $ 476,210 $ 489,915 $ 498,552 Asia Pacific 424,491 473,910 477,615 Europe 188,833 233,604 216,259 Total segment revenues 1,089,534 1,197,429 1,192,426 Other businesses 1,096 794 254 Total consolidated revenues $ 1,090,630 $ 1,198,223 $ 1,192,680 Operating income: Americas $ 49,422 (1) $ 48,347 (1) $ 61,894 (1) Asia Pacific 48,447 (2) 75,135 (2) 118,253 (2) Europe 15,629 (3) 24,517 (3) 16,192 (3) Total segment operating income 113,498 147,999 196,339 Reconciliation of total segment operating income to income before income taxes: Other businesses (30,092) (19,400) (20,811) Intersegment eliminations - (1,498) 61 Unallocated corporate and other (4) (155,730) (131,827) (112,494) Total consolidated operating income (loss) (72,324) (4,726) 63,095 Foreign currency transaction loss, net (3,332) (4,885) (4,678) Interest income 967 1,664 2,432 Interest expense (969) (806) (1,016) Other income (expense), net 914 204 126 Income (loss) before income taxes $ (74,744) $ (8,549) $ 59,959 Depreciation and amortization: Americas $ 7,401 $ 11,670 $ 10,384 Asia Pacific 3,913 6,724 6,486 Europe 2,229 3,761 5,108 Total segment depreciation and amortization 13,543 22,155 21,978 Other businesses 7,634 5,900 8,002 Unallocated corporate and other (4) 14,816 9,358 11,526 Total consolidated depreciation and amortization $ 35,993 $ 37,413 $ 41,506 (1) Includes $ 7.2 million, $ 4 .0 million , and $ 3 .9 million for t he years ended December 31, 2015 , 201 4, and 201 3 , respectively, of asset impairment charges related to 27 , 3 6, and 2 3 underperforming retail locations, respectively. (2) Includes $0.7 million, $ 2.8 million, and $ 0.2 million for the year s ended December 31, 2015, 2014, and 2013, respectively, of asset impairment charges related to 27 , 14 , and two underperforming retail locations, respectively. Additionally in the year ended December 31, 2015, Crocs recorded $5.8 million in impairment charges related to South Africa assets, pertaining to 9 retail locations, classified as available for sale. (3) Includes $1.6 million, $2.0 million, and $ 6.6 million for the years ended December 31, 2015, 2014, and 2013 of asset impairment charges related to 21 , 27 , and 35 underperforming retail locations. (4) Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, 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. The following table sets forth asset information related to Crocs’ reportable operating business segments as of December 31, 2015 and December 31, 2014: December 31, 2015 2014 (in thousands) Assets (1): Americas $ 148,104 $ 127,077 Asia Pacific 169,865 200,910 Europe 46,137 166,285 Total segment current assets 364,106 494,272 Supply Chain 14,778 18,132 Corporate (2) 16,265 27,337 Deferred tax assets, net - 4,190 Income tax receivable 10,233 9,332 Other receivables 14,233 11,989 Prepaid expenses and other current assets 26,334 30,156 Total current assets 445,949 595,408 Property and Equipment, net 49,490 68,288 Intangible assets, net 82,297 97,337 Goodwill 1,973 2,044 Deferred tax assets, net 6,608 17,886 Other assets 21,703 25,968 Total consolidated assets $ 608,020 $ 806,931 (1) Assets by segment include cash and equivalents, net accounts receivable, and inventory. (2) 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, 2015, 2014 , and 201 3 . The following table sets forth certain geographical information regarding Crocs’ revenues during the years ended December 31, 2015, 2014, and 2013: Year Ended December 31, 2015 2014 2013 (in thousands) Location United States $ 392,463 $ 435,154 $ 401,948 International (1) 698,167 763,069 790,732 Total revenues $ 1,090,630 $ 1,198,223 $ 1,192,680 (1) Not more than 10% of international revenue was derived in any individual international country . The following table sets forth geogra phical information regarding property and equipment assets as of December 31, 2015 and 2014: December 31, 2015 2014 (in thousands) Location United States $ 32,954 $ 45,046 International 16,536 23,242 Total long-lived assets (1) $ 49,490 $ 68,288 (1) Not more than 10% of long-lived assets resided in any individual foreign country in 2015 or 2014. |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2015 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | 19. LEGAL PROCEEDINGS The Company is 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. Crocs 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, Crocs 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 Crocs’ offer or to predict whether Crocs’ 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. Crocs is currently subject to an audit by the Brazilian Federal Tax Authorities related to imports of footwear from China between 2010 and 2014. On January 13, 2015, Crocs was notified about the issuance of assessments totaling approximately $3.7 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 approximately $8.4 million related to the remainder of the audit period. Crocs has also disputed these assessments and asserted defenses and filed an appeal to these claims. It is anticipated that this matter will take up to several years to be resolved. It is not possible at this time to predict the outcome of this matter. On August 8, 2014, a purported class action lawsuit was filed in California State Court against a Crocs subsidiary, Crocs Retail, LLC (Zaydenberg v. Crocs Retail, LLC, Case No. BC554214). The lawsuit alleged various employment law violations related to overtime, meal and break periods, minimum wage, timely payment of wages, wage statements, payroll records and business expenses. Crocs filed an answer on February 6, 2015, denying the allegations and asserting several defenses. On June 3, 2015, a second purported class action lawsuit was filed in California State Court against Crocs Retail, LLC (Christopher S. Duree and Richard Morely v. Crocs, Inc., Case No. BC583875), making substantially the same allegations as in the Zaydenberg lawsuit. The parties attended a mediation on June 26, 2015, and reached a settlement for $1.5 million, which will release the claims in both lawsuits. On September 4, 2015, the California State Court granted preliminary approval of the settlement and set the final approval hearing for December 14, 2015. At the final approval hearing, the California State Court entered its final order approving the settlement and final judgement. Crocs considers this matter closed. As of December 31, 2015, Crocs estimates that the resolution of these litigation matters and other disputes could result in a loss that is reasonably possible between $0.0 million and $5.9 million in aggregate. The Company has accrued $5.6 million associated with our estimated obligation related to these legal claims, which is reported in the balance sheet in line ‘Accrued expenses and other liabilities’. Although Crocs is subject to other litigation from time to time in the ordinary course of business, including employment, intellectual property and product liability claims, Crocs is not party to any other pending legal proceedings that Crocs believes would reasonably have a material adverse impact on its business, financial position, results of operations or cash flows. |
Unaudited Quarterly Consolidate
Unaudited Quarterly Consolidated Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Unaudited Quarterly Consolidated Financial Information [Abstract] | |
Unaudited Quarterly Consolidated Financial Information | 20. UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL INFORMATION For the Quarter Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 (in thousands, except per share data) Revenues $ 262,193 $ 345,671 $ 274,088 $ 208,678 Gross profit $ 127,370 $ 189,870 $ 120,821 $ 72,744 Restructuring $ 3,663 $ 2,810 $ 981 $ 1,274 Asset impairment charges $ - $ 2,075 $ 5,460 $ 7,771 Income (loss) from operations $ (2,362) $ 16,349 $ (20,730) $ (65,581) Net income (loss) $ (2,425) $ 13,426 $ (24,024) $ (70,173) Net income (loss) attributable to common shareholders $ (5,979) $ 9,690 $ (27,776) $ (73,942) Basic income (loss) per common share $ (0.08) $ 0.11 $ (0.37) $ (1.01) Diluted income (loss) per common share $ (0.08) $ 0.11 $ (0.37) $ (1.01) For the Quarter Ended March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 (in thousands, except per share data) 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 shareholders $ 6,373 $ 19,523 $ 12,009 $ (56,867) Basic income (loss) per common share $ 0.06 $ 0.19 $ 0.12 $ (0.70) Diluted income (loss) per common share $ 0.06 $ 0.19 $ 0.12 $ (0.70) During the three months ended December 31, 2014, Crocs 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 4 – Inventories for further discussions regarding these charges. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21 . SUBSEQUENT EVENTS ASU 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 than those presented below . On January 19, 2016, the Company sold its operations in South Africa to and entered into a franchise agreement with the buyer. South Africa operations were presented as assets held for sale as of December 31, 2015 and during the three month period ended December 31, 2015, the carrying value of the entire asset group was written down to its estimated fair value less costs to sell. On February 18, 2016, the Company entered into the Eleventh Amendment to the Amended and Restated Credit Agreement. See Note 11 – Revolving Credit Facility & Bank Borrowings. |
Organization & Summary Of Sig31
Organization & Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization & Summary Of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation 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 the Company’s wholly owned subsidiaries . In April 2011, Crocs and an unrelated third party formed Crocs Gulf, LLC (“Crocs Gulf”) for the purpose of selling the Company’s products in the United Arab Emirates. Crocs has acquired all voting and dividend rights associated with Crocs Gulf and has therefore determined that Crocs Gulf is a wholly owned subsidiary. |
Noncontrolling Interests | Noncontrolling Interests As of December 31, 201 5, all of the Company’s subsidiaries were, in substance, wholly owned. |
Transactions with Affiliates | Transactions with Affiliates The Company receives inventory count services from RGIS, a wholly owned subsidiary of Blackstone which currently owns all of the outstanding shares of Company’s Series A convertible preferred stock (“S eries A preferred stock”) , which is convertible into approximately 15.9% of the Company’s common stock. Crocs paid a total of $0.5 million to RGIS for services received during 2015. |
Recent Accounting Pronounceme32
Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Recent Accounting Pronouncements [Abstract] | |
Recently Accounting Pronouncements | Financial Instruments In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-01: Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The pronouncement requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These changes become effective for fiscal years beginning after December 15, 2017. The expected adoption method of ASU 2016-01 is being evaluated by the Company and the adoption is not expected to have a significant impact on the Company’s consolidated financial statements. Classification of Deferred Taxes In November 2015, the FASB issued ASU 201 5 -1 7 : Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities , which provides guidance to simplify the financial statement presentation of deferred income taxes. The new guidance requires an entity to present deferred tax assets and liabilities as non-current in a classified balance sheet. Prior to the issuance of this guidance, deferred tax liabilities and assets were required to be separately classified into a current amount and a non-current amount in the balance sheet. The new guidance represents a change in accounting principle and is effective for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company elected to early adopt this guidance as of December 31, 2015 and to apply it prospectively. Prior period information was not adjusted. Because the application of this guidance affects the balance sheet classification only, adoption of this guidance did not have a material impact on our consolidated financial statements. As a result, 2015 current deferred tax assets and liabilities have been adjusted by approximately $15.9 million and are now reflected as noncurrent under the new standard. Inventory In July 2015, the FASB issued ASU 2015-11: Simplifying the Measurement of Inventory , which modifies existing requirements regarding measuring inventory at the lower of cost or market. Specifically, this standard eliminates the need to determine and consider replacement cost or net realizable value less an approximately normal profit margin when measuring inventory. This standard is effective prospectively after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact that this pronouncement will have on its consolidated financial statements. Debt Issuance Costs In April 2015, the FASB issued ASU 2015-03: Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 requires retrospective adoption and will be effective for fiscal years beginning after December 15, 2015 . Early adoption is permitted. Crocs does not expect this pronouncement will have a material impact on the consolidated financial statements. Share-Based Payments In June 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. Crocs does not expect this pronouncement will have a material impact on the 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 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.” ASU 2014-09 becomes effective for reporting periods (including interim periods) beginning after December 15, 2017. Early application is permitted for reporting periods (including interim periods) beginning after December 15, 2016. This new standard permits the use of either the retrospective or cumulative effect transition method. Crocs is currently evaluating the impact that this pronouncement will have on the condensed consolidated financial statements. Crocs has not yet selected a transition method or determined the effect of the standard on financial reporting once the standard is effective. Other new pronouncements issued but not effective until after December 31, 2015 are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
Summary Of Significant Accoun33
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary Of Significant Accounting Policies [Abstract] | |
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 17—Commitments & Contingencies and Note 19—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, Crocs recognizes an expense for the estimated loss. If there is the potential to recover a portion of the estim ated loss from a third party, Crocs make s a separate assessment of recoverability and reduce s the estimated loss if recovery is deemed probable. |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Activity within the accumulated other comprehensive income (“AOCI”) balance consists solely of gains and losses resulting from the translation of foreign subsid iary financial statements to the Company’s 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 loss, 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, Crocs consider s the principal or most advantageous market in which a hypothetical sale or transfer would take place and consider s 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 marke t data, which require Crocs to develop its own assumptions. Crocs categorize s 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 d erivative instruments, should Crocs 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 are based on the prevailing LIBOR deposit rates and include t he applicable exchange rates, forward rates, and discount rates. The Company’s 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. T he carrying values of capital lease obligations and the line of credit approximate their fair values b ased on borrowing rates currently available to Crocs, with similar terms . 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 values, see “Inventory Valuation” below. Crocs reviews the carrying amounts of property and equipment and intangible assets when events and circumstances indicate the carrying value of the asset may not be recoverable. For such determination, Crocs generally use s either an income approach with inputs that are mainly unobservable, such as expected future cash flows, or a market approach using observable inputs su ch 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. Crocs consider s this type of estimate to be classified as a Level 3 measurement. See Note 9 —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. Crocs consider s 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 allowanc es, and do not bear interest. Crocs use s its 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 tre nds and conditions affecting the Company’s customer base and historical collection experience. Specific provisions are recorded fo r individual receivables when the Company become s aware of a customer’s inability to meet its financial obligations. See Note 13—Allowances for further discussion related to provisions for doubtful accounts , sale returns and allowances, and reserve for unapplied rebates. |
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, Crocs evaluate s its inventory for possible impairment . Crocs estimates inventory fair value based on several subjective assumptions including estimated future demand and market conditions, as well as other observable factors suc h as current sell-through of the Company’s products, recent changes in demand for Crocs 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 stat ements of operations. See Note 4 —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 bas ed on the assets estimated useful life, which typically ranges 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. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale The Company classifies a disposal group to be sold as held for sale when management approves and commits to a formal plan to actively market a disposal group and expects the sale to close within twelve months. Upon classifying a disposal group as held for sale, the disposal group is recorded at the lower of its carrying amount or its estimated fair value, reduced for selling costs. In determining the fair value of a disposal group, the Company considers both the net book value of the disposal group as a whole and the impact of any related foreign currency translation adjustments recorded within stockholders’ equity. Any losses are recognized as asset impairment charges in the Consolidated Statement of Operations. Depreciation expense is no longer recorded for any assets within a disposal group that is classified as held for sale. The fair value of a disposal group less any selling costs is assessed each reporting period it remains classified as held for sale and any subsequent changes are reported as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the disposal group at the time it was initially classified as held for sale. |
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), Crocs assess es 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 ’s carrying value is not supported , on an undiscounted cash flow basis, the amount of impairment is measure d as the difference between the asset’s 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 , or groups of assets, to be abandoned or from which no future benefit is expected , are written down to zero in the period it is determined the asset or asset groups will no longer be used, and the assets , or asset groups, 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 liabili ties. For assets involved in Crocs’ retail business, the asset group is at the retail store level. See Note 5 – 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 estimated useful lives on a straight-line basis and are evaluated for impairment when events or circumstances indicate a carrying value m a y not be fully recoverable. Customer relationships are amortized on a straight-line basis. Intangible assets that are determined to have indefinite lives, such as trade names, are not amortized and are evaluated for impairment at least annually, or more frequently when circumstances imply possible impairment. 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. 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 the Company’s global information systems , is included in selling, general , and administrative expenses on the consolidated statements of operations. Th e following table sets forth Crocs’ 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 Crocs capitalize s certain internal and external software acquisition and development costs, including the costs of employees and contractors devoting time to 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 so ftware primarily consists of Crocs’ enterprise resource system software, warehouse management software , and point of sale software. At least annually, Crocs consider s the potential impairment of capitalized software by assessing the substantive service potential of the software, as well as 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 6 —Goodwill and Intangible Assets for further discussion. 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 year , 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 6 —Goodwill and Intangible Assets for discussion of goodwill balances and discussion of impairment losses recorded during the periods presented. |
Earnings per Share | Earnings per Share Basic and diluted earnings per common share (“EPS”) is presented using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividend rights and participation rights in undistributed earnings. Under the two-class method, EPS is computed by dividing the sum of distributed and undistributed earnings attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. A participating security is a security that may participate in undistributed earnings with common stock had those earnings been distributed in any form. The Company’s Series A convertible preferred stock issued in 2014 represents participatin g securities as holders of the S eries 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 the Company’s non-vested restricted stock and restricted stock unit 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 the Company’s earnings. In addition, the dilutive effect of each participating security, if any, is calculated using the more dilutive of the two-class method described above. This method assumes the if-converted method, which assumes conversion to common stock as of the beginning of the reporting date for any security that is more dilutive upon conversion . Anti-dilutive securities are excluded from diluted EPS. See Note 15—Earnings Per S hare for further discussion. |
Beneficial Conversion Feature | Beneficial Conversion F eature The issuance of the Company’s Series A preferred s tock 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. Crocs 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. Crocs is accreting the discount over eight years from the date of issuance through the redemption date. Accretion expense is 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 wh en the related revenue is recognized . |
Shipping and Handling Costs and Fees | Shipping and Handling Costs and Fees Shipping and handling costs are expensed as incurred and are included in ‘Co st of sales ’ in the consolidated statements of operation . Shipping and handling fees billed to customers are included in revenues. |
Share-based Compensation | Share-based Compensation Crocs share-based compensation plans allows stock options, restricted stock, and stock performance awards to be granted to plan participants, which includes certain officers, employees and members of the Company’s Board of Director s (the “Board”). Awards granted under these plans are fair valued , and are 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 Monte Carlo simulation model and the Black Scholes option pricing model , both of which require estimates for expected volatility, expected dividends, the risk-free interest rate , and the term of the option. If any of the assumptions used in these model s 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 compensa tion expense associated with Crocs’ 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 and will be amortized over the useful life of the assets beginning on the date the asset is placed in service. See Note 12 —Equity for additional information related to share-based compensation. |
Defined Contribution Plans | Defined C ontribution P lans Crocs has a 401(k) plan known as the Crocs, Inc. 401(k) Plan (the “Plan”). The Plan is available to Crocs U.S. employees and provides employees with tax deferred salary deductions and alternative investment options. The Plan does not provide employees w ith the option to invest in the Company’s common stock. Employees may contribute up to 75.0% of their salary, su bject to certain limitations. The Company match es employees’ contributions to the Plan up to a maximum of 4.0 % of eligible compensation. The Company’s expense related to the matching contributions to the Plan was $ 6.0 million, $ 7.1 million and $ 6.8 million for the years ended December 31, 201 5, 2014, and 201 3 , respectively. |
Advertising | Advertising Advertising costs are expensed as incurred and production costs are expensed when the advertising is first run. Total advertising costs reflected in ‘Selling, general, and administrative expenses’ on the consolidated statement of operations were $ 58.2 million, $ 44.7 million and $ 47.6 million for the years ended December 31, 2015, 2014 , and 2013 , respectively. |
Research and Development | Research and Development Research and development costs are expensed as incurred. Research and development expenses were $ 14.0 million, $ 16.7 million and $ 15.4 million for the years ended December 31, 2015, 2014 , and 2013 , 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 Crocs’ 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 Crocs is directly and indirectly affected by fluctuations in foreign currency rates , which may adversely impact its financial performance. To mitigate the potential impact of foreign currency exchange rate risk, Crocs 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 tra ding or speculative purposes. Crocs recognize s 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 loss, net’ in the consolidated stat ements of operations. Crocs had no derivative instruments that qualified for hedge accounting during any of the periods presented. See Note 9 —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. Crocs provide s for income taxes at the current and future enacted tax rates and laws applicable in each taxing jurisdiction. Crocs use s a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertai nties in income tax positions. Crocs recognize s interest and penalties related to income tax matters in income tax expense in the consolidated statement of operations. See Note 1 4 —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. |
Accrued Expenses And Other Cu34
Accrued Expenses And Other Current Liabilities (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligation Policy | Crocs record s 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. Crocs’ asset retirement obligation (“ARO”) liabilities are primarily associated with the disposal of property and equipment that the Company is contractually obligated to remove at the end of certain retail and office leases in order to restore the facilities back to original condition as specified in the related lease agreements. Crocs estimate s the fair value of these liabilities based on current store closing costs and discount s the costs back as if they were to be performed at the inception of the lease. At the inception of such leases, Crocs record s the ARO as a liability and also record s 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. |
Summary Of Significant Accoun35
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 | |
Inventories [Abstract] | |
Schedule of Inventories | December 31, 2015 2014 (in thousands) Finished goods $ 162,341 $ 167,515 Work-in-progress 918 703 Raw materials 4,933 2,794 Total inventories, net $ 168,192 $ 171,012 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property And Equipment [Abstract] | |
Schedule of Property and Equipment | December 31, 2015 2014 (in thousands) Machinery and equipment $ 36,864 $ 48,989 Leasehold improvements 81,593 91,962 Furniture, fixtures and other 23,576 23,818 Assets held for sale (1) 1,595 - Construction-in-progress 3,512 3,318 Property and equipment, gross (2) 147,140 168,087 Less: Accumulated depreciation (3) (97,650) (99,799) Property and equipment, net $ 49,490 $ 68,288 (1) This amount represents the South Africa disposal group assets held for sale . (2) Includes $ 0.1 million and $0.2 million of certain equipment held under capital leases and classified as equipment as of December 31, 2015 and 2014, respectively . (3) Includes $0.0 million and $ 0.1 million of accumulated depreciation related to certain equipment held under capital leases as of December 31, 2015 and 2014 , which are depreciated using the straight-line method over the lease term. During the year ended December 31, 2015, approximately $11.0 million of accumulated depreciation was related to assets that were written off or disposed. |
Schedule of Asset Impairments | Year Ended December 31, 2015 2014 2013 Impairment Charge Number of Stores (1) Impairment Charge Number of Stores (1) Impairment Charge Number of Stores (1) (in thousands, except store count data) Americas $ 7,237 27 $ 4,001 36 $ 3,861 23 Asia Pacific 6,450 (2) 36 (2) 2,807 14 185 2 Europe 1,584 21 2,019 27 6,565 35 Total asset impairment $ 15,271 84 $ 8,827 77 $ 10,611 60 (1) Represents stores with partially and fully depreciated assets. (2) I ncludes $ 5.7 million of impairment related to assets held for sale in nine South Africa retail locations. |
Goodwill & Intangible Assets (T
Goodwill & Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill & Intangible Assets [Abstract] | |
Schedule of Goodwill & Intangible Assets | December 31, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in thousands) Capitalized software $ 162,700 (1) $ (82,596) (2) $ 80,104 $ 157,615 (1) $ (62,591) (2) $ 95,024 Customer relationships 4,016 (4,016) - 5,945 (5,798) 147 Patents, copyrights, and trademarks 6,892 (5,135) 1,757 6,702 (4,931) 1,771 Core technology (3) 3,498 (3,498) - 4,170 (4,170) - Other 776 (637) 139 698 (636) 62 Total finite lived intangible assets 177,882 (95,882) 82,000 175,130 (78,126) 97,004 Indefinite lived intangible assets (3) 297 - 297 333 - 333 Goodwill (3) 1,973 - 1,973 2,044 - 2,044 Goodwill and intangible assets $ 180,152 $ (95,882) $ 84,270 $ 177,507 $ (78,126) $ 99,381 (1) Includes $4.1 million of software held under a capital lease classified as capitalized software as of each of December 31, 2015 and 201 4. During 2013, Crocs began an implementation of a new enterprise resource planning, (“ERP”) system, which was placed into service in 2015. As of December 31, 2015 and 2014, Crocs capitalized $4.1 million and $36.1 million, respectively, for costs associated with the development of and added functionality to the ERP system. (2) Includes $ 3.1 million and $ 2.5 million of accumulated amortization of software held under a capital lease as of December 31, 2015 and 201 4, respectively, which is amortized using the straight-line method over the useful life. (3) Change s in core technology, goodwill , and indefinite lived intangible assets relate entirely to the impact of foreign currency translation. |
Schedule of Future Amortization of Intangible Assets | Amortization Fiscal years ending December 31, (in thousands) 2016 $ 18,100 2017 16,397 2018 14,513 2019 12,983 2020 10,483 Thereafter 9,524 Total $ 82,000 |
Accrued Expenses And Other Cu39
Accrued Expenses And Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Expenses And Other Current Liabilities [Abstract] | |
Schedule of Accrued Expenses & Other Current Liabilities | December 31, 2015 2014 (in thousands) Accrued compensation and benefits $ 20,973 $ 23,824 Professional services 15,019 16,212 Fulfillment, freight and duties 14,776 12,110 Accrued rent and occupancy 7,639 9,675 Sales/use and VAT tax payable 7,018 5,897 Accrued loss on disposal group (1) 6,743 - Customer deposits 3,236 3,075 Dividend payable 3,000 3,067 Travel and entertainment liabilities 2,150 199 Accrued legal liabilities 1,971 2,150 Deferred revenue and royalties payable 1,430 2,005 Other (2) 7,880 2,002 Total accrued expenses and other current liabilities $ 91,835 $ 80,216 (1) This amount represents accrued losses related to the South Africa disposal group held for sale and is inclusive of $6.7 million in foreign currency translation adjustments recorded within stockholders’ equity. (2) The amounts in ‘Other’ consist of various accrued expenses , of which no individual item accounted for more than 5% of the total balance as of December 31, 2015 or 2014. |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Activities [Abstract] | |
Schedule of restructuring costs by type | Year Ended December 31, 2015 2014 (in thousands) Severance costs $ 5,472 $ 12,500 Lease / contract exit and related costs 2,623 4,251 Other (1) 633 7,766 Total restructuring charges $ 8,728 $ 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, 2015 2014 (in thousands) Americas $ 890 $ 4,259 Asia Pacific 3,542 7,422 Europe 2,824 3,934 Corporate 1,472 8,902 Total restructuring charges $ 8,728 $ 24,517 |
Schedule of restructuring reserve by type | December 31, 2014 Additions Cash Payments Adjustments (2) December 31, 2015 (in thousands) Severance costs $ 3,154 $ 5,472 $ (8,000) $ $ 626 Lease/ contract exit and related costs 1,401 2,623 (3,807) (217) - Other (1) 304 633 (595) 342 Total accrued restructuring $ 4,859 $ 8,728 $ (12,402) $ (217) $ 968 (1) Includes expenses related to exiting stores and legal fees. (2) Represents reversal of prior year accrual as a result of subleasing an exited facility at a better than anticipated rate. |
Derivative Financial Instrume41
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Financial Instruments [Abstract] | |
Summary of Derivative Financial Instruments Notional Amounts on Outstanding Positions | December 31, 2015 2014 (in thousands) Foreign currency exchange forward contracts by currency: Japanese Yen $ 98,390 $ 44,533 Euro 34,219 134,755 British Pound Sterling 21,859 17,230 South Korean Won 7,981 14,590 Mexican Peso 7,277 13,180 Australian Dollar 6,459 7,913 South African Rand 6,402 4,355 Indian Rupee 5,036 3,356 Canadian Dollar 1,980 3,005 New Taiwan Dollar 1,798 3,229 Swedish Krona 1,655 1,918 Hong Kong Dollar 668 814 Russian Ruble 667 1,838 Singapore Dollar - 61,887 Chinese Yuan Renminbi - 5,376 Norwegian Krone - 917 New Zealand Dollar - 743 Brazilian Real - - Total notional value, net $ 194,391 $ 319,639 Latest maturity date January 2016 January 2015 |
Summary of Gain/Loss on Derivative Instruments | Year Ended December 31, 2015 2014 2013 (in thousands) Foreign currency gain (loss) $ 3,980 $ (1,097) $ (17,680) Derivatives not designated as hedging instruments: Foreign currency exchange forwards gain (loss) (7,312) (3,788) 13,002 Foreign currency transaction loss, net $ (3,332) $ (4,885) $ (4,678) |
Revolving Credit Facility & B42
Revolving Credit Facility & Bank Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Revolving Credit Facility & Bank Borrowings [Abstract] | |
Components Of Our Consolidated Debt And Capital Lease Obligations | December 31, 2015 Unused Borrowing Capacity (2) Carrying Value (3) Weighted Average Interest Rate (1) Borrowing Currency U.S.D. Equivalent December 31, 2015 December 31, 2014 (in thousands) Debt obligations Senior revolving credit facility LIBOR plus 1.25% - 2.00% $ 75,000 (4) $ 75,000 (4) $ - $ - Asia Pacific revolving credit facility LIBOR plus 2.10% RMB - (5) - (5) - - Long-term bank borrowings 2.63% 6,375 11,646 Total $ 75,000 6,375 11,646 Capital lease obligations 24 23 Total debt and capital lease obligations $ 6,399 $ 11,669 Current maturities $ 4,772 $ 5,288 Long-term debt and capital lease obligations $ 1,627 $ 6,381 (1) Carrying value represents the weighted average interest rate in effect at December 31 , 2015 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin. The interest rates presented represent stated rates and do not include the impact of the derivative instruments, deferred financing costs, original issue premiums or discounts and commitm ent fees, all of which affect Crocs’ overall cost of borrowing. (2) Unused borrowing capacity represents the maximum available under the applicable facility at December 31 , 2015 without regard to covenant compliance calculations or other conditions precedent to borrowing. (3) As the interest rate of each credit agreement is variable, typically based on the daily LIBOR rates plus an additional margin, the estimated fair value of each debt instrument approximates its carrying value. (4) On February 18, 2016, the Company entered into the Eleventh Amendment to the Amended and Restated Credit Agreement, which extended the maturity date to February 2021, resized the borrowing capacity of the facility to $75.0 million, and amended certain definitions of the financial covenants to become more favorable to the Company. (5) As of December 31, 2015, Crocs received notification that the Asia Pacific revolving credit facility had been temporarily suspended. |
Maturities of Debt Obligation | December 31, 2015 (in thousands) Maturities of debt and capital lease obligations 2016 $ 4,772 2017 1,616 2018 4 Thereafter 7 Total principal debt maturities $ 6,399 Current portion $ 4,772 Noncurrent portion $ 1,627 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stock Option Activity | Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding as of 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 as of 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 as of December 31, 2014 1,696,130 $ 13.52 3.88 $ 4,435 Granted 35,000 $ 13.52 Exercised (284,791) $ 6.54 Forfeited or expired (150,590) $ 21.82 Outstanding as of December 31, 2015 1,295,749 $ 14.09 2.83 $ 1,261 Exercisable at December 31, 2015 1,159,445 $ 14.06 2.21 $ 1,261 Vested and expected to vest at December 31, 2015 1,295,749 $ 14.09 2.78 $ 1,261 |
Schedule of Option Pricing Model Assumptions | Year Ended December 31, 2015 2014 2013 Expected volatility 43% 44% - 50% 50 - 64% Dividend yield - - - Risk-free interest rate 1.50% -1.72% 1.41% -1.71% 0.81% -1.62% Expected life (in years) 4.00 4.00 4.00 |
Schedule Of Preformance Based RSU Vesting Schedule | Time Vested RSUs Performance Vested RSUs Vest in 3 annual installments beginning one year after the date of grant Performance Goals By Weight Potential Award Further Time Vesting Weight 50% - Achievement of at least 85% of a one -year Earnings Before Interest and Taxes (“EBIT”) performance target Weight 30% - Achievement of at least 85% of a one -year revenue performance target Weight 20% - Achievement of at least 80% of a one -year free cash flow performance target Executive may earn from 0% to 200% of the performance-based RSUs based on the level of achievement of the performance goal Executive may earn from 0% to 200% of the performance-based RSUs based on the level of achievement of the performance goal Executive may earn from 0% to 200% of the performance-based RSUs based on the level of achievement of the performance goal 1/3 of the earned RSUs vest upon certification of achievement by the Compensation Committee and 2/3 vest equally on the one- and two-year anniversary of the certification date 1/3 of the earned RSUs vest upon certification of achievement by the Compensation Committee and 2/3 vest equally on the one-and two-year anniversary of the certification date 1/3 of the earned RSUs vest upon certification of achievement by the Compensation Committee and 2/3 vest equally on the one- and two-year anniversary of the certification date The following represents the vesting schedule of performance-based RSUs granted during the year ended December 31, 2014: Time Vested RSUs (50% of Award) Performance Vested RSUs (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 Achievement of at least 90% of a one -year revenue 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 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 The following represents the vesting schedule of performance-based RSUs granted during the years ended December 31, 2013 : Time Vested RSUs (50% of Award) Performance Vested RSUs (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 |
Restricted Stock Awards and Restricted Stock Units Activity | Restricted Stock Awards Restricted Stock Units Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Units Fair Value 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 Granted 15,987 $ 15.01 2,866,562 $ 10.14 Vested (15,480) (1) $ 15.30 (505,025) (1) $ 16.20 Forfeited (1,328) $ 15.00 (1,270,630) $ 14.14 Unvested at December 31, 2015 6,667 $ 15.00 3,088,378 $ 10.75 (1) The RSAs vested during the years ended December 31, 2015, 2014 , and 2013 consisted entirely of time-based awards. The RSUs vested during the year ended December 31, 2015 consisted of 67,893 performance-based awards and 437,132 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. |
Allowances (Tables)
Allowances (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |
Schedule of Accounts Receivable Reserves | Allowance for doubtful accounts Reserve for sales returns and allowances Reserve for unapplied rebates Total (in thousands) Beginning balance at December 31, 2012 $ (3,441) $ (7,086) $ (2,788) $ (13,315) Reduction in revenue - (55,784) (5,420) (61,204) Expense (1,930) - - (1,930) Recoveries, applied amounts, and write-offs 1,715 57,460 6,761 65,936 Ending balance at December 31, 2013 (3,656) (5,410) (1,447) (10,513) Reduction in revenue - (69,834) (5,397) (75,231) Expense (12,087) - - (12,087) Recoveries, applied amounts, and write-offs 2,134 68,030 (4,725) 65,439 Ending balance at December 31, 2014 (13,609) (7,214) (11,569) (32,392) Reduction in revenue - (71,649) (11,106) (82,755) Expense (26,225) - - (26,225) Recoveries, applied amounts, and write-offs 3,466 74,224 14,318 92,008 Ending balance at December 31, 2015 $ (36,368) $ (4,639) $ (8,357) $ (49,364) |
China [Member] | |
Segment Reporting Information [Line Items] | |
Schedule of Accounts Receivable Reserves | Allowance for doubtful accounts Reserve for sales returns and allowances Reserve for unapplied rebates Total (in thousands) Beginning balance at December 31, 2012 $ (77) $ (87) $ (2,865) $ (3,029) Reduction in revenue - (2,371) - (2,371) Expense 37 - - 37 Recoveries, applied amounts, and write-offs 16 2,233 1,814 4,063 Ending balance at December 31, 2013 (24) (225) (1,051) (1,300) Reduction in revenue - (6,921) - (6,921) Expense (8,552) - - (8,552) Recoveries, applied amounts, and write-offs 136 3,103 (7,572) (4,333) Ending balance at December 31, 2014 (8,440) (4,043) (8,623) (21,106) Reduction in revenue - (7,769) (3,511) (11,280) Expense (23,163) - - (23,163) Recoveries, applied amounts, and write-offs 1,315 11,618 6,172 19,105 Ending balance at December 31, 2015 $ (30,288) $ (194) $ (5,962) $ (36,444) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule of Income Tax Expense/Benefit | December 31, 2015 2014 2013 (in thousands) Income (loss) before taxes: U.S. $ (83,537) $ (34,622) $ (7,818) Foreign 8,793 26,073 67,777 Total income (loss) before taxes (74,744) (8,549) 59,959 Income tax expense: Current income taxes U.S. federal 480 (12,049) 3,311 U.S. state 195 (23) 355 Foreign 7,488 7,620 22,337 Total current income taxes 8,163 (4,452) 26,003 Deferred income taxes: U.S. federal (3,902) 400 14,968 U.S. state (118) 236 3,639 Foreign 4,309 193 4,929 Total deferred income taxes 289 829 23,536 Total income tax expense (benefit) $ 8,452 $ (3,623) $ 49,539 |
Effective Tax Rate Reconciliation | December 31, 2015 2014 2013 (in thousands) Federal income tax rate $ (26,160) 35.0 % $ (2,992) 35.0 % $ 20,781 35.0 % State income tax rate, net of federal benefit (543) 0.7 2,598 (30.4) (373) (0.6) Effect of rate differences (3,678) 4.9 5,317 (62.2) (28,671) (47.9) Non-deductible / Non-taxable items (2,181) 2.9 (9,904) 115.8 2,231 3.4 Change in valuation allowance 10,892 (14.5) 5,370 (62.8) 21,370 35.6 U.S. tax on foreign earnings 32,879 (43.9) 6,620 (77.4) 22,877 38.2 Uncertain tax positions (3,952) 5.3 (25,172) 294.4 4,091 6.8 Audit settlements 1,167 (1.6) 13,448 (157.3) 3,035 5.1 Non-deductible write-off of intercompany debt - - - - 1,114 1.9 Non-deductible impairment - - - - 2,118 3.5 Write-off of income tax receivable - - 1,577 (18.4) - - Other 28 (0.1) (485) 5.7 966 1.6 Effective income tax rate $ 8,452 (11.3) % $ (3,623) 42.4 % $ 49,539 82.6 % |
Deferred Income Tax Assets and Liabilities | December 31, 2015 2014 (in thousands) Current deferred tax assets: Accrued expenses $ - $ 13,217 Unrealized loss on foreign currency - 342 Other - - Valuation allowance - (7,008) Total current deferred tax assets (1) $ - $ 6,551 Current deferred tax liabilities: Unremitted earnings of foreign subsidiary $ - $ (14,186) Other - (44) Total current deferred tax liabilities (1) $ - $ (14,230) Non-current deferred tax assets: Stock compensation expense $ 7,142 $ 9,760 Long-term accrued expenses 26,114 6,773 Net operating loss and charitable contribution carryovers 22,518 20,047 Intangible assets 4,725 1,517 Property and equipment - 12,097 Future uncertain tax position offset 456 445 Unrealized loss on foreign currency 466 - Foreign tax credit 27,109 6,259 Other 5,548 1,207 Valuation allowance (56,572) (40,273) Total non-current deferred tax assets $ 37,506 $ 17,832 Non-current deferred tax liabilities: Unremitted earnings of foreign subsidiary $ (24,572) $ - Property and equipment (6,432) - Total non-current deferred tax liabilities $ (31,004) $ - (1) In November 2015, the FASB issued guidance to simplify the financial statement presentation of deferred income taxes. The new guidance requires an entity to present deferred tax assets and liabilities as non-current in a classified balance sheet. Prior to the issuance of this guidance, deferred tax liabilities and assets were required to be separately classified into a current amount and a non-current amount in the balance sheet. The new guidance represents a change in accounting principle and is effective for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company elected to early adopt this guidance as of December 31, 2015 and to apply it prospectively. Prior period information was not adjusted. Because the application of this guidance affects the balance sheet classification only, adoption of this guidance did not have a material impact on our consolidated financial statements. |
Unrecognized Tax Benefits Reconciliation | December 31, 2015 2014 2013 (in thousands) Unrecognized tax benefit—January 1 $ 8,444 $ 31,616 $ 31,900 Gross increases—tax positions in prior period 643 7 572 Gross decreases—tax positions in prior period (385) (3,711) (2,086) Gross increases—tax positions in current period 549 904 3,743 Settlements (4,126) (20,210) (2,291) Lapse of statute of limitations (168) (162) (222) Unrecognized tax benefit—December 31 $ 4,957 $ 8,444 $ 31,616 |
Income Tax Examinations | Netherlands 2008 to 2015 Canada 2008 to 2015 Japan 2009 to 2015 China 2007 to 2015 Singapore 2011 to 2015 United States 2011 to 2015 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Summary Of Basic And Diluted Earnings Per Share | Year Ended December 31, 2015 2014 2013 (in thousands) Numerator Net income (loss) attributable to common stockholders $ (98,007) $ (18,962) $ 10,420 Less: adjustment for income allocated to participating securities - - (36) Net income (loss) attributable to common stockholders - basic and diluted $ (98,007) $ (18,962) $ 10,384 Denominator Weighted average common shares outstanding - basic 75,604 85,140 87,989 Plus: dilutive effect of stock options and unvested restricted stock units - - 1,100 Weighted average common shares outstanding - diluted 75,604 85,140 89,089 Net income (loss) attributable per common share: Basic $ (1.30) $ (0.22) $ 0.12 Diluted $ (1.30) $ (0.22) $ 0.12 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies [Abstract] | |
Future Minimum Annual Rental Commitments Under Non-Cancelable Operating Leases | Fiscal years ending December 31, 2016 $ 77,127 2017 57,258 2018 46,928 2019 37,621 2020 33,587 Thereafter 105,310 Total minimum lease payments (1) $ 357,831 (1) Minimum lease payments have not been reduced by minimum sublease rentals of $0.2 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 s ales in excess of stipulated amo unts. |
Operating Lease Rental Expense | Year Ended December 31, 2015 2014 2013 (in thousands) Minimum rentals (1) $ 96,579 $ 108,466 $ 101,721 Contingent rentals 14,929 16,875 18,178 Less: Sublease rentals (322) (868) (646) Total rent expense $ 111,186 $ 124,473 $ 119,253 (1) Minimum rentals include all lease payments as well as fixed and variable common area maintenance, parking and storage fees, which were approximately $ 9.1 million, $9.6 million, and $9.7 million during the years ended December 31, 2015, 2014, and 2013, respectively. |
Operating Segments & Geograph48
Operating Segments & Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Operating Segments & Geographic Information [Abstract] | |
Information Related to Reportable Operating Business Segments | Year Ended December 31, 2015 2014 2013 (in thousands) Revenues: Americas $ 476,210 $ 489,915 $ 498,552 Asia Pacific 424,491 473,910 477,615 Europe 188,833 233,604 216,259 Total segment revenues 1,089,534 1,197,429 1,192,426 Other businesses 1,096 794 254 Total consolidated revenues $ 1,090,630 $ 1,198,223 $ 1,192,680 Operating income: Americas $ 49,422 (1) $ 48,347 (1) $ 61,894 (1) Asia Pacific 48,447 (2) 75,135 (2) 118,253 (2) Europe 15,629 (3) 24,517 (3) 16,192 (3) Total segment operating income 113,498 147,999 196,339 Reconciliation of total segment operating income to income before income taxes: Other businesses (30,092) (19,400) (20,811) Intersegment eliminations - (1,498) 61 Unallocated corporate and other (4) (155,730) (131,827) (112,494) Total consolidated operating income (loss) (72,324) (4,726) 63,095 Foreign currency transaction loss, net (3,332) (4,885) (4,678) Interest income 967 1,664 2,432 Interest expense (969) (806) (1,016) Other income (expense), net 914 204 126 Income (loss) before income taxes $ (74,744) $ (8,549) $ 59,959 Depreciation and amortization: Americas $ 7,401 $ 11,670 $ 10,384 Asia Pacific 3,913 6,724 6,486 Europe 2,229 3,761 5,108 Total segment depreciation and amortization 13,543 22,155 21,978 Other businesses 7,634 5,900 8,002 Unallocated corporate and other (4) 14,816 9,358 11,526 Total consolidated depreciation and amortization $ 35,993 $ 37,413 $ 41,506 (1) Includes $ 7.2 million, $ 4 .0 million , and $ 3 .9 million for t he years ended December 31, 2015 , 201 4, and 201 3 , respectively, of asset impairment charges related to 27 , 3 6, and 2 3 underperforming retail locations, respectively. (2) Includes $0.7 million, $ 2.8 million, and $ 0.2 million for the year s ended December 31, 2015, 2014, and 2013, respectively, of asset impairment charges related to 27 , 14 , and two underperforming retail locations, respectively. Additionally in the year ended December 31, 2015, Crocs recorded $5.8 million in impairment charges related to South Africa assets, pertaining to 9 retail locations, classified as available for sale. (3) Includes $1.6 million, $2.0 million, and $ 6.6 million for the years ended December 31, 2015, 2014, and 2013 of asset impairment charges related to 21 , 27 , and 35 underperforming retail locations. (4) Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, 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. |
Schedule of Segment Balance Sheet | December 31, 2015 2014 (in thousands) Assets (1): Americas $ 148,104 $ 127,077 Asia Pacific 169,865 200,910 Europe 46,137 166,285 Total segment current assets 364,106 494,272 Supply Chain 14,778 18,132 Corporate (2) 16,265 27,337 Deferred tax assets, net - 4,190 Income tax receivable 10,233 9,332 Other receivables 14,233 11,989 Prepaid expenses and other current assets 26,334 30,156 Total current assets 445,949 595,408 Property and Equipment, net 49,490 68,288 Intangible assets, net 82,297 97,337 Goodwill 1,973 2,044 Deferred tax assets, net 6,608 17,886 Other assets 21,703 25,968 Total consolidated assets $ 608,020 $ 806,931 (1) Assets by segment include cash and equivalents, net accounts receivable, and inventory. (2) Corporate assets primarily consist of cash and equivalents . |
Schedule of Geographical Revenue | Year Ended December 31, 2015 2014 2013 (in thousands) Location United States $ 392,463 $ 435,154 $ 401,948 International (1) 698,167 763,069 790,732 Total revenues $ 1,090,630 $ 1,198,223 $ 1,192,680 (1) Not more than 10% of international revenue was derived in any individual international country . |
Schedule of Geographical Long-Lived Assets | December 31, 2015 2014 (in thousands) Location United States $ 32,954 $ 45,046 International 16,536 23,242 Total long-lived assets (1) $ 49,490 $ 68,288 (1) Not more than 10% of long-lived assets resided in any individual foreign country in 2015 or 2014. |
Unaudited Quarterly Consolida49
Unaudited Quarterly Consolidated Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Unaudited Quarterly Consolidated Financial Information [Abstract] | |
Schedule of Unaudited Quarterly Consolidated Financial Information | For the Quarter Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 (in thousands, except per share data) Revenues $ 262,193 $ 345,671 $ 274,088 $ 208,678 Gross profit $ 127,370 $ 189,870 $ 120,821 $ 72,744 Restructuring $ 3,663 $ 2,810 $ 981 $ 1,274 Asset impairment charges $ - $ 2,075 $ 5,460 $ 7,771 Income (loss) from operations $ (2,362) $ 16,349 $ (20,730) $ (65,581) Net income (loss) $ (2,425) $ 13,426 $ (24,024) $ (70,173) Net income (loss) attributable to common shareholders $ (5,979) $ 9,690 $ (27,776) $ (73,942) Basic income (loss) per common share $ (0.08) $ 0.11 $ (0.37) $ (1.01) Diluted income (loss) per common share $ (0.08) $ 0.11 $ (0.37) $ (1.01) For the Quarter Ended March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 (in thousands, except per share data) 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 shareholders $ 6,373 $ 19,523 $ 12,009 $ (56,867) Basic income (loss) per common share $ 0.06 $ 0.19 $ 0.12 $ (0.70) Diluted income (loss) per common share $ 0.06 $ 0.19 $ 0.12 $ (0.70) |
Organization And Basis Of Prese
Organization And Basis Of Presentation (Details) - RGIS [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Related Party Transaction [Line Items] | |
Percent of common stock, once convertible preferred stock are converted | 15.90% |
Paid for services received | $ 0.5 |
Summary Of Significant Accoun51
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Days within payment expected to be received by credit card companies to be bonsidered cash equivalents | 5 days | ||
Preferred stock accretion period (in years) | 8 years | ||
Employee contribution percentage | 75.00% | ||
Defined contribution plan expensed for employee match contributions | $ 6 | $ 7.1 | $ 6.8 |
Advertising, marketing, and promotional expenses | 58.2 | 44.7 | 47.6 |
Research and development expenses | $ 14 | $ 16.7 | $ 15.4 |
Number of derivative instruments | item | 0 | ||
Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment estimated useful lives | 5 years | ||
Employer contribution percentage to defined contribution plan | 4.00% | ||
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment estimated useful lives | 2 years |
Summary Of Significant Accoun52
Summary Of Significant Accounting Policies (Intangible Assets Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
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] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted-average Amortization Period | 7 years |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Inventories [Abstract] | |||
Inventory write-down charges | $ 11,500 | $ 3,100 | $ 3,400 |
Direct restructuring charges (Note 4) | $ 3,985 |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventories [Abstract] | ||
Finished goods | $ 162,341 | $ 167,515 |
Work-in-progress | 918 | 703 |
Raw materials | 4,933 | 2,794 |
Total inventories, net | $ 168,192 | $ 171,012 |
Property And Equipment (Summary
Property And Equipment (Summary Of Property & Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Property And Equipment [Abstract] | |||
Machinery and equipment | $ 36,864 | $ 48,989 | |
Leasehold improvements | 81,593 | 91,962 | |
Furniture, fixtures and other | 23,576 | 23,818 | |
Assets held for sale | [1] | 1,595 | |
Construction-in-progress | 3,512 | 3,318 | |
Property and equipment, gross | [2] | 147,140 | 168,087 |
Less: Accumulated depreciation | [3] | (97,650) | (99,799) |
Property and equipment, net | $ 49,490 | $ 68,288 | |
[1] | This amount represents the South Africa disposal group assets held for sale. | ||
[2] | Includes $0.1 million and $0.2 million of certain equipment held under capital leases and classified as equipment as of December 31, 2015 and 2014, respectively. | ||
[3] | Includes $0.0 million and $0.1 million of accumulated depreciation related to certain equipment held under capital leases as of December 31, 2015 and 2014, which are depreciated using the straight-line method over the lease term. During the year ended December 31, 2015, approximately $11.0 million of accumulated depreciation was related to assets that were written off or disposed. |
Property And Equipment (Summa56
Property And Equipment (Summary Of Property & Equipment Footnote) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property And Equipment [Abstract] | ||
Gross equipment held under capital leases | $ 0.1 | $ 0.2 |
Depreciation for equipment held under capital leases | 0 | $ 0.1 |
Accumulated depreciation related to assets that were written off or disposed | $ 11 |
Property And Equipment (Depreci
Property And Equipment (Depreciation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property And Equipment [Abstract] | |||
Depreciation Expense | $ 16.3 | $ 23.2 | $ 24.3 |
Depreciation Expense Recorded in Cost of Sales | 1.8 | 1.7 | 2.9 |
Disposal of assets | 11 | ||
Loss on disposal of property and equipment | $ (1.4) | $ 0 | $ 0 |
Property And Equipment (Asset I
Property And Equipment (Asset Impairments) (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015USD ($)store | Dec. 31, 2014USD ($)store | Dec. 31, 2013USD ($)store | |||
Segment Reporting Information [Line Items] | |||||
Asset impairment charges | $ 15,271 | $ 8,827 | $ 10,611 | ||
Number of retail stores impaired | store | [1] | 84 | 77 | 60 | |
Americas [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Asset impairment charges | $ 7,237 | $ 4,001 | $ 3,861 | ||
Number of retail stores impaired | store | [1] | 27 | 36 | 23 | |
Asia Pacific [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Asset impairment charges | $ 6,450 | [2] | $ 2,807 | $ 185 | |
Number of retail stores impaired | store | [1] | 36 | [2] | 14 | 2 |
Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Asset impairment charges | $ 1,584 | $ 2,019 | $ 6,565 | ||
Number of retail stores impaired | store | [1] | 21 | 27 | 35 | |
South Africa [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Asset impairment charges | $ 5,700 | ||||
Excluding South Africa [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Asset impairment charges | $ 9,600 | $ 8,800 | $ 10,600 | ||
[1] | Represents stores with partially and fully depreciated assets. | ||||
[2] | Includes $5.7 million of impairment related to assets held for sale in nine South Africa retail locations. |
Property And Equipment (Long-Li
Property And Equipment (Long-Lived Assets Held For Sale) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property And Equipment [Abstract] | |||
Impairment of Long-Lived Assets Held-for-use | $ 15,271 | $ 8,827 | $ 10,611 |
Goodwill & Intangible Assets (N
Goodwill & Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill & Intangible Assets [Abstract] | |||
Amortization Expense | $ 19.7 | $ 14.2 | $ 17.2 |
Amortization Expense Recorded in Cost of Sales | 5.8 | 4.9 | 6 |
Goodwill impairment | $ 0 | $ 0 | $ 0.3 |
Goodwill & Intangible Assets (S
Goodwill & Intangible Assets (Summary Of Goodwill & Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount, Finite-Lived Intangible Assets | $ 177,882 | $ 175,130 | |
Accumulated Amortization, Finite-Lived Intangible Assets | (95,882) | (78,126) | |
Net Carrying Amount, Finite-Lived Intangible Assets | 82,000 | 97,004 | |
Indefinite lived intangible assets | [1] | 297 | 333 |
Goodwill | [1] | 1,973 | 2,044 |
Gross Carrying Amount, Total Intangible Assets | 180,152 | 177,507 | |
Net Carrying Amount, Total Intangible Assets | 84,270 | 99,381 | |
Capitalized Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount, Finite-Lived Intangible Assets | [2] | 162,700 | 157,615 |
Accumulated Amortization, Finite-Lived Intangible Assets | [3] | (82,596) | (62,591) |
Net Carrying Amount, Finite-Lived Intangible Assets | 80,104 | 95,024 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount, Finite-Lived Intangible Assets | 4,016 | 5,945 | |
Accumulated Amortization, Finite-Lived Intangible Assets | (4,016) | (5,798) | |
Net Carrying Amount, Finite-Lived Intangible Assets | 147 | ||
Patents, Copyrights And Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount, Finite-Lived Intangible Assets | 6,892 | 6,702 | |
Accumulated Amortization, Finite-Lived Intangible Assets | (5,135) | (4,931) | |
Net Carrying Amount, Finite-Lived Intangible Assets | 1,757 | 1,771 | |
Core Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount, Finite-Lived Intangible Assets | [1] | 3,498 | 4,170 |
Accumulated Amortization, Finite-Lived Intangible Assets | [1] | (3,498) | (4,170) |
Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount, Finite-Lived Intangible Assets | 776 | 698 | |
Accumulated Amortization, Finite-Lived Intangible Assets | (637) | (636) | |
Net Carrying Amount, Finite-Lived Intangible Assets | $ 139 | $ 62 | |
[1] | Changes in core technology, goodwill, and indefinite lived intangible assets relate entirely to the impact of 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, 2015 and 2014. During 2013, Crocs began an implementation of a new enterprise resource planning, ("ERP") system, which was placed into service in 2015. As of December 31, 2015 and 2014, Crocs capitalized $4.1 million and $36.1 million, respectively, for costs associated with the development of and added functionality to the ERP system. | ||
[3] | Includes $3.1 million and $2.5 million of accumulated amortization of software held under a capital lease as of December 31, 2015 and 2014, respectively, which is amortized using the straight-line method over the useful life. |
Goodwill & Intangible Assets 62
Goodwill & Intangible Assets (Summary Of Goodwill & Intangible Assets Footnote) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill & Intangible Assets [Abstract] | ||
Gross Capitalized Software Held Under Capital Lease | $ 4.1 | $ 4.1 |
Capitalized Software Costs | 4.1 | 36.1 |
Amortization of Capitalized Software Held Under Capital Lease | $ 3.1 | $ 2.5 |
Goodwill & Intangible Assets 63
Goodwill & Intangible Assets (Schedule Of Future Amortization Of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill & Intangible Assets [Abstract] | ||
2,016 | $ 18,100 | |
2,017 | 16,397 | |
2,018 | 14,513 | |
2,019 | 12,983 | |
2,020 | 10,483 | |
Thereafter | 9,524 | |
Net Carrying Amount, Finite-Lived Intangible Assets | $ 82,000 | $ 97,004 |
Accrued Expenses And Other Cu64
Accrued Expenses And Other Current Liabilities (Schedule Of Accrued Expenses & Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Accrued Expenses And Other Current Liabilities [Abstract] | |||
Accrued compensation and benefits | $ 20,973 | $ 23,824 | |
Professional services | 15,019 | 16,212 | |
Fulfillment, freight and duties | 14,776 | 12,110 | |
Accrued rent and occupancy | 7,639 | 9,675 | |
Sales/use and VAT tax payable | 7,018 | 5,897 | |
Accrued loss on disposal group | [1] | 6,743 | |
Customer deposits | 3,236 | 3,075 | |
Dividend payable | 3,000 | 3,067 | |
Travel and entertainment liabilities | 2,150 | 199 | |
Accrued legal liabilities | 1,971 | 2,150 | |
Deferred revenue and royalties payable | 1,430 | 2,005 | |
Other | [2] | 7,880 | 2,002 |
Total accrued expenses and other current liabilities | $ 91,835 | $ 80,216 | |
[1] | This amount represents accrued losses related to the South Africa disposal group held for sale and is inclusive of $6.7 million in foreign currency translation adjustments recorded within stockholders' equity. | ||
[2] | The amounts in 'Other' consist of various accrued expenses, of which no individual item accounted for more than 5% of the total balance as of December 31, 2015 or 2014. |
Accrued Expenses And Other Cu65
Accrued Expenses And Other Current Liabilities (Schedule Of Accrued Expenses & Other Current Liabilities Footnote) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)item | Dec. 31, 2014item | |
Segment Reporting Information [Line Items] | ||
Individual Items Accounting For More Than Five Percent Of Balance Of Accrued Expenses | item | 0 | 0 |
Percent Of Decision Point On Reporting Individual Items In Accrued Expenses | 5.00% | 5.00% |
South Africa [Member] | ||
Segment Reporting Information [Line Items] | ||
Accrued loss on disposal associated with foreign currency translation adjustments | $ | $ 6.7 |
Accrued Expenses And Other Cu66
Accrued Expenses And Other Current Liabilities (Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Asset Retirement Obligation [Abstract] | ||
Asset Retirement Obligation Liability | $ 2,000 | $ 2,200 |
Restructuring Activities (Narra
Restructuring Activities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Activities [Abstract] | ||
Restructuring charges total | $ 8,728 | $ 24,517 |
Accrued liability related to store closures | $ 1,000 | $ 4,900 |
Restructuring Activities (Sched
Restructuring Activities (Schedule Of Restructuring Costs By Type) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Restructuring Activities [Abstract] | |||
Severance costs | $ 5,472 | $ 12,500 | |
Lease / contract exit and related costs | 2,623 | 4,251 | |
Other | [1] | 633 | 7,766 |
Total restructuring charges | $ 8,728 | $ 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. |
Restructuring Activities (Sch69
Restructuring Activities (Schedule Of Restructuring Costs By Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charges | $ 8,728 | $ 24,517 |
Corporate [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charges | 1,472 | 8,902 |
Americas [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charges | 890 | 4,259 |
Asia Pacific [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charges | 3,542 | 7,422 |
Europe [Member] | Operating Segments [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charges | $ 2,824 | $ 3,934 |
Restructuring Activities (Sch70
Restructuring Activities (Schedule Of Restructuring Reserve By Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Accrued restructuring as of December 31, 2014 | $ 4,859 | $ 4,859 | |||||||||
Additions | $ 1,274 | $ 981 | $ 2,810 | 3,663 | $ 6,637 | $ 7,585 | $ 4,060 | $ 2,250 | 8,728 | $ 20,532 | |
Cash payments | (12,402) | ||||||||||
Adjustments | [1] | (217) | |||||||||
Accrued restructuring as of December 31, 2015 | 968 | 4,859 | 968 | 4,859 | |||||||
Severance Costs [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Accrued restructuring as of December 31, 2014 | 3,154 | 3,154 | |||||||||
Additions | 5,472 | ||||||||||
Cash payments | (8,000) | ||||||||||
Accrued restructuring as of December 31, 2015 | 626 | 3,154 | 626 | 3,154 | |||||||
Lease/Contract Exit And Related Costs [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Accrued restructuring as of December 31, 2014 | 1,401 | 1,401 | |||||||||
Additions | 2,623 | ||||||||||
Cash payments | (3,807) | ||||||||||
Adjustments | [1] | (217) | |||||||||
Accrued restructuring as of December 31, 2015 | 1,401 | 1,401 | |||||||||
Other Restructuring [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Accrued restructuring as of December 31, 2014 | [2] | $ 304 | 304 | ||||||||
Additions | [2] | 633 | |||||||||
Cash payments | [2] | (595) | |||||||||
Accrued restructuring as of December 31, 2015 | [2] | $ 342 | $ 304 | $ 342 | $ 304 | ||||||
[1] | Represents reversal of prior year accrual as a result of subleasing an exited facility at a better than anticipated rate. | ||||||||||
[2] | Includes expenses related to exiting stores and legal fees. |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash equivalents | $ 7.5 | $ 23.3 |
Level 2 [Member] | ||
Derivative Liabilities | ||
Foreign currency contracts liabilities | $ 0.1 | $ 0 |
Derivative Financial Instrume72
Derivative Financial Instruments (Summary Of Derivative Financial Instruments Notional Amounts On Outstanding Positions) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | $ 194,391 | $ 319,639 |
Japanese Yen [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 98,390 | 44,533 |
Euro [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 34,219 | 134,755 |
British Pound Sterling [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 21,859 | 17,230 |
South Korean Won [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 7,981 | 14,590 |
Mexican Peso [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 7,277 | 13,180 |
Australian Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 6,459 | 7,913 |
South African Rand [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 6,402 | 4,355 |
Indian Rupee [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 5,036 | 3,356 |
Canadian Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 1,980 | 3,005 |
New Taiwan Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 1,798 | 3,229 |
Swedish Krona [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 1,655 | 1,918 |
Hong Kong Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 668 | 814 |
Russian Ruble [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | $ 667 | 1,838 |
Singapore Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 61,887 | |
Chinese Yuan Renminbi [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 5,376 | |
Norwegian Krone [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 917 | |
New Zealand Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | $ 743 |
Derivative Financial Instrume73
Derivative Financial Instruments (Summary Of Gain/Loss On Derivative Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Financial Instruments [Abstract] | |||
Foreign currency gain (loss) | $ 3,980 | $ (1,097) | $ (17,680) |
Foreign currency exchange forwards gain (loss) | (7,312) | (3,788) | 13,002 |
Foreign currency transaction loss, net | $ (3,332) | $ (4,885) | $ (4,678) |
Revolving Credit Facility & B74
Revolving Credit Facility & Bank Borrowings (Revolving Credit Facility) (Details) ¥ in Millions, $ in Millions | Feb. 18, 2016USD ($) | Dec. 24, 2015USD ($) | Sep. 01, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Apr. 01, 2015USD ($) | Dec. 26, 2013USD ($) |
Line of Credit Facility [Line Items] | |||||||||||
Amount allowed for repurchase under Amendment | $ 350 | ||||||||||
Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Minimum fixed charge coverage ratio | 1.00% | 1.00% | 0.95% | ||||||||
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% | 1.25% | |||||||||
Leverage ratio | 4.00% | 4.00% | |||||||||
Expected Leverage Ratio After One Year Period | 3.75% | 3.75% | |||||||||
Global Cash Requirement Under Credit Facility | $ 50 | $ 100 | |||||||||
Permitted amount of bad debt write-downs added back to EBITDAR | $ 18.9 | ||||||||||
Other EBITDAR | $ 85 | 100 | |||||||||
Revolving credit facility | $ 0 | 0 | |||||||||
Outstanding letters of credit | 1.8 | 1.3 | |||||||||
Capitalized fees and cost incurred | $ 0.2 | $ 0.1 | $ 0.1 | ||||||||
Increase to cash and non-cash charges | $ 85 | ||||||||||
Maximum amount of cash charges | $ 65 | ||||||||||
Amount allowed for repurchase under Amendment | $ 40 | ||||||||||
Asia Pacific Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.10% | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | ¥ | ¥ 60 | ||||||||||
Revolving credit facility | $ 0 | ||||||||||
Period of lending rate benchmark | 1 year | ||||||||||
Mark-up percentage | 10.00% | ||||||||||
Asia Pacific Revolving Credit Facility [Member] | Loan Facilities [Member] | Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of Credit Facility, Current Borrowing Capacity | ¥ | 40 | ||||||||||
Asia Pacific Revolving Credit Facility [Member] | Import Facilities [Member] | Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Line of Credit Facility, Current Borrowing Capacity | ¥ | ¥ 60 | ||||||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Minimum fixed charge coverage ratio | 1.00% | ||||||||||
Minimum fixed charge coverage ratio, thereafter | 1.10% | ||||||||||
Leverage ratio | 2.50% | ||||||||||
Expected leverage ratio, thereafter | 2.00% | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 75 | ||||||||||
Amount allowed for repurchase under Amendment | 50 | ||||||||||
Maximum capital expenditures and commitments | $ 50 | ||||||||||
London Interbank Offered Rate (LIBOR) [Member] | Asia Pacific Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility, interest rate | 2.10% | 2.10% | |||||||||
Certain Conditions [Member] | Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Minimum fixed charge coverage ratio | 1.00% | ||||||||||
Maximum [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||||||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||||
Minimum [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | Revolving Credit Facility [Member] | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Revolving Credit Facility & B75
Revolving Credit Facility & Bank Borrowings (Long-Term Bank Borrowings) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | ||
Debt outstanding | [1] | $ 6,375 | $ 11,646 |
Current maturities | [1] | $ 4,772 | 5,288 |
PNC [Member] | |||
Number of notes payable outstanding | item | 5 | ||
Minimum interest rate on long-term debt | 2.45% | ||
Maximum interest rate on long-term debt | 2.79% | ||
Long-term debt interest capitalized | $ 0 | $ 400 | |
[1] | As the interest rate of each credit agreement is variable, typically based on the daily LIBOR rates plus an additional margin, the estimated fair value of each debt instrument approximates its carrying value. |
Revolving Credit Facility & B76
Revolving Credit Facility & Bank Borrowings (Components Of Our Consolidated Debt And Capital Lease Obligations) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Debt Instrument [Line Items] | ||||
Unused Borrowing Capacity | [1] | $ 75,000 | ||
Total debt obligations | [2] | 6,375 | $ 11,646 | |
Capital Lease Obligations | [2] | 24 | 23 | |
Total bank borrowings and capital lease obligations | [2] | 6,399 | 11,669 | |
Current maturities | [2] | 4,772 | 5,288 | |
Long-term debt and capital lease obligations | [2] | 1,627 | 6,381 | |
Revolving Credit Facility [Member] | Senior Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Unused Borrowing Capacity | [1],[3] | $ 75,000 | ||
Debt Instrument, Description of Variable Rate Basis | [4] | LIBOR plus 1.25% - 2.00% | ||
Revolving Credit Facility [Member] | Asia Pacific Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Unused Borrowing Capacity | [1],[5] | |||
Debt Instrument, Description of Variable Rate Basis | [4] | LIBOR plus 2.10% | ||
Debt instrument, spread | 2.10% | |||
Revolving Credit Facility [Member] | Maximum [Member] | Senior Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, spread | 2.00% | |||
Revolving Credit Facility [Member] | Minimum [Member] | Senior Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, spread | 1.25% | |||
Bank Borrowings [Member] | ||||
Debt Instrument [Line Items] | ||||
Total debt obligations | [2] | $ 6,375 | $ 11,646 | |
Weighted Average Interest Rate | [4] | 2.63% | 2.63% | |
[1] | Unused borrowing capacity represents the maximum available under the applicable facility at December 31, 2015 without regard to covenant compliance calculations or other conditions precedent to borrowing. | |||
[2] | As the interest rate of each credit agreement is variable, typically based on the daily LIBOR rates plus an additional margin, the estimated fair value of each debt instrument approximates its carrying value. | |||
[3] | On February 18, 2016, the Company entered into the Eleventh Amendment to the Amended and Restated Credit Agreement, which extended the maturity date to February 2021, resized the borrowing capacity of the facility to $75.0 million, and amended certain definitions of the financial covenants to become more favorable to the Company. | |||
[4] | Carrying value represents the weighted average interest rate in effect at December 31, 2015 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin. The interest rates presented represent stated rates and do not include the impact of the derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect Crocs' overall cost of borrowing. | |||
[5] | As of December 31, 2015, Crocs received notification that the Asia Pacific revolving credit facility had been temporarily suspended. |
Revolving Credit Facility & B77
Revolving Credit Facility & Bank Borrowings (Maturities Of Debt Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Revolving Credit Facility & Bank Borrowings [Abstract] | |||
2,016 | $ 4,772 | ||
2,017 | 1,616 | ||
2,018 | 4 | ||
Thereafter | 7 | ||
Total bank borrowings and capital lease obligations | [1] | 6,399 | $ 11,669 |
Current maturities | [1] | 4,772 | 5,288 |
Noncurrent portion | [1] | $ 1,627 | $ 6,381 |
[1] | As the interest rate of each credit agreement is variable, typically based on the daily LIBOR rates plus an additional margin, the estimated fair value of each debt instrument approximates its carrying value. |
Equity (Equity Incentive Plans)
Equity (Equity Incentive Plans) (Details) - shares | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 28, 2011 | Jul. 09, 2007 | Aug. 15, 2005 | |
Equity Incentive Plans [Line Items] | ||||||
Shares are cancelled or forfeited after the effective date | 150,590 | 262,347 | 360,139 | |||
Shares available for future issuance under plan | 1,500,000 | 900,000 | 900,000 | |||
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 | 14,000,000 | |||||
Stock options outstanding under plan | 500,000 | 600,000 | ||||
Shares available for future issuance under plan | 0 | |||||
Equity Incentive Plan 2007 [Member] | ||||||
Equity Incentive Plans [Line Items] | ||||||
Awards authorized and reserved under plan | 1,192,777 | 15,300,000 | 9,000,000 | |||
Shares are cancelled or forfeited after the effective date | 4,916,835 | |||||
Stock options, RSAs, and RSUs outstanding under plan | 3,500,000 | 3,100,000 | ||||
Shares available for future issuance under plan | 0 | |||||
Equity Incentive Plan 2015 [Member] | ||||||
Equity Incentive Plans [Line Items] | ||||||
Awards authorized and reserved under plan | 7,000,000 |
Equity (Stock Option Activity)
Equity (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-Based Compensation [Abstract] | ||||
Shares outstanding at beginning of period | 1,696,130 | 2,105,152 | 2,621,686 | |
Shares granted | 35,000 | 119,000 | 177,000 | |
Shares exercised | (284,791) | (265,675) | (333,395) | |
Shares forfeited or expired | (150,590) | (262,347) | (360,139) | |
Shares outstanding at end of period | 1,295,749 | 1,696,130 | 2,105,152 | 2,621,686 |
Shares exercisable at December 31, 2015 | 1,159,445 | |||
Shares vested and expected to vest at December 31, 2015 | 1,295,749 | |||
Weighted average exercise price of options outstanding at beginning of period | $ 13.52 | $ 13.34 | $ 13.03 | |
Weighted average exercise price of options granted | 13.52 | 14.22 | 15.62 | |
Weighted average exercise price of options exercised | 6.54 | 5.05 | 6.84 | |
Weighted average exercise price of options forfeited or expired | 21.82 | 21.02 | 18.18 | |
Weighted average exercise price of options outstanding at end of period | 14.09 | $ 13.52 | $ 13.34 | $ 13.03 |
Weighted average exercise price of options exercisable at December 31, 2015 | 14.06 | |||
Weighted average exercise price of options vested and expected to vest at December 31, 2015 | $ 14.09 | |||
Weighted average remaining contractual life (years) outstanding | 2 years 9 months 29 days | 3 years 10 months 17 days | 4 years 10 months 10 days | 5 years 6 months 18 days |
Weighted average remaining contractual life (years) exercisable at December 31, 2015 | 2 years 2 months 16 days | |||
Weighted average remaining contractual life (years) vested and expected to vest at December 31, 2015 | 2 years 9 months 11 days | |||
Aggregate intrinsic value outstanding | $ 1,261 | $ 4,435 | $ 10,790 | $ 11,373 |
Aggregate intrinsic value exercisable at December 31, 2015 | 1,261 | |||
Aggregate intrinsic value vested and expected to vest at December 31, 2015 | $ 1,261 |
Equity (Schedule Of Option Pric
Equity (Schedule Of Option Pricing Model Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected volatility rate minimum | 44.00% | 50.00% | |
Expected volatility rate maximum | 50.00% | 64.00% | |
Expected volatility rate | 43.00% | ||
Risk-free interest rate minimum | 1.50% | 1.41% | 0.81% |
Risk-free interest rate maximum | 1.72% | 1.71% | 1.62% |
Expected life | 4 years | 4 years | 4 years |
Equity (Schedule Of Preformance
Equity (Schedule Of Preformance Based RSU Vesting Schedule) (Details) - Restricted Stock Units [Member] - item | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of annual installments, vesting | 3 | 3 | 3 | 3 |
Beginning period of vesting | 1 year | 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 | 85.00% | 70.00% | ||
Performance goals period | 1 year | 1 year | ||
Percentage earned from performance goal and vesting period | 50.00% | |||
Further Time Vesting, anniversary period | 1 year | |||
Percent of vesting upon certification of achievement | 33.00% | |||
Percent of vesting upon after first two years of anniversary | 66.00% | |||
Vesting Scenario Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance goals percentage | 85.00% | 90.00% | ||
Performance goals period | 1 year | 1 year | ||
Percentage earned from performance goal and vesting period | 50.00% | |||
Further Time Vesting, anniversary period | 1 year | |||
Percent of vesting upon certification of achievement | 33.00% | |||
Percent of vesting upon after first two years of anniversary | 66.00% | |||
Vesting Scenario Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance goals percentage | 80.00% | |||
Performance goals period | 1 year | |||
Percent of vesting upon certification of achievement | 33.00% | |||
Percent of vesting upon after first two years of anniversary | 66.00% | |||
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% | 200.00% | ||
Maximum [Member] | Vesting Scenario Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Potential award percentage | 200.00% | 200.00% | ||
Maximum [Member] | Vesting Scenario Three [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 | 0.00% | 50.00% | ||
Minimum [Member] | Vesting Scenario Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Potential award percentage | 0.00% | 50.00% | ||
Minimum [Member] | Vesting Scenario Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Potential award percentage | 0.00% |
Equity (Stock Option Activity N
Equity (Stock Option Activity Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ 4.74 | $ 5.35 | $ 7.33 |
Aggregate intrinsic value of options exercised | $ 1,700,000 | $ 2,700,000 | $ 2,800,000 |
Cash received from the exercise of stock options | 1,900,000 | 1,300,000 | |
Grant date fair value of options vested | $ 700,000 | $ 800,000 | $ 1,200,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Unrecognized share-based compensation expense related to unvested options | $ 700,000 | ||
Amortized over a weighted average period | 2 years 6 months 7 days | ||
Stock Options [Member] | First Year Vesting, Cliff [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Stock Options [Member] | Remaining Years, Monthly Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Equity (Schedule Of Restricted
Equity (Schedule Of Restricted Stock Award And Restricted Stock Unit Activity) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Restricted Stock Awards [Member] | ||||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ||||
Unvested beginning balance | 7,488 | 210,490 | 355,509 | |
Granted | 15,987 | 9,973 | 21,590 | |
Vested | [1] | (15,480) | (68,420) | (89,006) |
Forfeited | (1,328) | (144,555) | (77,603) | |
Unvested ending balance | 6,667 | 7,488 | 210,490 | |
Weighted average grant date fair value beginning balance | $ 15.61 | $ 13.43 | $ 13.37 | |
Weighted average grant date fair value of granted | 15.01 | 15.04 | 16.56 | |
Weighted average grant date fair value of vested | 15.30 | 15.03 | 14.81 | |
Weighted average grant date fair value of forfeited | 15 | 12.67 | 12.46 | |
Weighted average grant date fair value ending balance | $ 15 | $ 15.61 | $ 13.43 | |
Restricted Stock Units [Member] | ||||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ||||
Unvested beginning balance | 1,997,471 | 1,965,667 | 1,414,661 | |
Granted | 2,866,562 | 1,749,993 | 1,637,114 | |
Vested | [1] | (505,025) | (541,888) | (329,542) |
Forfeited | (1,270,630) | (1,176,301) | (756,566) | |
Unvested ending balance | 3,088,378 | 1,997,471 | 1,965,667 | |
Weighted average grant date fair value beginning balance | $ 15.78 | $ 16.50 | $ 20.61 | |
Weighted average grant date fair value of granted | 10.14 | 16.05 | 14.96 | |
Weighted average grant date fair value of vested | 16.20 | 17.64 | 21.52 | |
Weighted average grant date fair value of forfeited | 14.14 | 16.51 | 14.71 | |
Weighted average grant date fair value ending balance | $ 10.75 | $ 15.78 | $ 16.50 | |
[1] | The RSAs vested during the years ended December 31, 2015, 2014, and 2013 consisted entirely of time-based awards. The RSUs vested during the year ended December 31, 2015 consisted of 67,893 performance-based awards and 437,132 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. |
Equity (Schedule Of Restricte84
Equity (Schedule Of Restricted Stock Award And Restricted Stock Unit Activity Footnote) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Performance-based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested | 67,893 | 30,946 | 52,288 |
Time-based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested | 437,132 | 510,942 | 277,254 |
Equity (Restricted Stock Awards
Equity (Restricted Stock Awards And Restricted Stock Units Activity, Share-based Compensation) (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |||
Shares approved for grants | 1,500 | 900 | 900 |
Share-based compensation expense | $ 11.2 | $ 12.7 | $ 12.5 |
Capitalized share-based compensation expense | $ 0 | $ 0.2 | $ 0.7 |
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] | |||
Shares approved for grants | 400 | 300 | 400 |
Unrecognized share-based compensation expense related to unvested awards | $ 12.8 | ||
Amortized over a weighted average period | 1 year 11 months 12 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 | $ 0.1 | ||
Grant date fair value of vested awards | $ 0.2 | $ 1 | $ 1.3 |
Amortized over a weighted average period | 5 months 9 days | ||
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 | $ 18.5 | ||
Grant date fair value of vested awards | $ 8.2 | $ 9.6 | $ 7.1 |
Amortized over a weighted average period | 1 year 10 months 2 days | ||
Performance-based Restricted Stock Units [Member] | |||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |||
Unrecognized share-based compensation expense related to unvested awards | $ 5.7 | ||
Amortized over a weighted average period | 1 year 8 months 23 days |
Equity (Appointment Of Presiden
Equity (Appointment Of President And CEO) (Details) - Restricted Stock Units [Member] - Chief Financial Officer [Member] | 12 Months Ended |
Dec. 31, 2015USD ($)item | |
Time Vesting [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of installments vesting for units granted | item | 3 |
Award granted, value | $ 1,000,000 |
Weighted average stock price period | 30 days |
Performance Vesting [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award granted, value | $ 1,000,000 |
Weighted average stock price period | 30 days |
Allowances (Narrative) (Details
Allowances (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for Doubtful Accounts Receivable | $ 49,364 | $ 32,392 | $ 10,513 | $ 13,315 |
Accounts receivable, net | 83,616 | 101,217 | ||
China [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Increase in allowance for doubtful accounts reserves | 23,200 | |||
Allowance for Doubtful Accounts Receivable | 36,444 | 21,106 | $ 1,300 | $ 3,029 |
Accounts receivable, net | 17,500 | |||
Accounts receivable, gross | 41,600 | 38,600 | ||
China [Member] | Past Due [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable, gross | $ 38,200 | $ 36,900 |
Allowances (Schedule Of Account
Allowances (Schedule Of Accounts Receivable Reserves) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | $ (32,392) | $ (10,513) | $ (13,315) |
Reduction in revenue | (82,755) | (75,231) | (61,204) |
Expense | (26,225) | (12,087) | (1,930) |
Recoveries, applied amounts, and write-offs | 92,008 | 65,439 | 65,936 |
Ending Balance | (49,364) | (32,392) | (10,513) |
China [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | (21,106) | (1,300) | (3,029) |
Reduction in revenue | (11,280) | (6,921) | (2,371) |
Expense | (23,163) | (8,552) | 37 |
Recoveries, applied amounts, and write-offs | 19,105 | (4,333) | 4,063 |
Ending Balance | (36,444) | (21,106) | (1,300) |
Allowance for Doubtful Accounts [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | (13,609) | (3,656) | (3,441) |
Expense | (26,225) | (12,087) | (1,930) |
Recoveries, applied amounts, and write-offs | 3,466 | 2,134 | 1,715 |
Ending Balance | (36,368) | (13,609) | (3,656) |
Allowance for Doubtful Accounts [Member] | China [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | (8,440) | (24) | (77) |
Expense | (23,163) | (8,552) | 37 |
Recoveries, applied amounts, and write-offs | 1,315 | 136 | 16 |
Ending Balance | (30,288) | (8,440) | (24) |
Reserve for Sales Returns and Allowances [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | (7,214) | (5,410) | (7,086) |
Reduction in revenue | (71,649) | (69,834) | (55,784) |
Recoveries, applied amounts, and write-offs | 74,224 | 68,030 | 57,460 |
Ending Balance | (4,639) | (7,214) | (5,410) |
Reserve for Sales Returns and Allowances [Member] | China [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | (4,043) | (225) | (87) |
Reduction in revenue | (7,769) | (6,921) | (2,371) |
Recoveries, applied amounts, and write-offs | 11,618 | 3,103 | 2,233 |
Ending Balance | (194) | (4,043) | (225) |
Reserve For Unapplied Rebates [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | (11,569) | (1,447) | (2,788) |
Reduction in revenue | (11,106) | (5,397) | (5,420) |
Recoveries, applied amounts, and write-offs | 14,318 | (4,725) | 6,761 |
Ending Balance | (8,357) | (11,569) | (1,447) |
Reserve For Unapplied Rebates [Member] | China [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | (8,623) | (1,051) | (2,865) |
Reduction in revenue | (3,511) | ||
Recoveries, applied amounts, and write-offs | 6,172 | (7,572) | 1,814 |
Ending Balance | $ (5,962) | $ (8,623) | $ (1,051) |
Income Taxes (Schedule Of Incom
Income Taxes (Schedule Of Income Tax Expense/Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
U.S. | $ (83,537) | $ (34,622) | $ (7,818) |
Foreign | 8,793 | 26,073 | 67,777 |
Income (loss) before income taxes | (74,744) | (8,549) | 59,959 |
U.S. federal current | 480 | (12,049) | 3,311 |
U.S. state current | 195 | (23) | 355 |
Foreign current | 7,488 | 7,620 | 22,337 |
Total current income taxes | 8,163 | (4,452) | 26,003 |
U.S. federal deferred | (3,902) | 400 | 14,968 |
U.S. state deferred | (118) | 236 | 3,639 |
Foreign deferred | 4,309 | 193 | 4,929 |
Total deferred income taxes | 289 | 829 | 23,536 |
Total income tax expense (benefit) | $ 8,452 | $ (3,623) | $ 49,539 |
Income Taxes (Effective Tax Rat
Income Taxes (Effective Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
Federal income tax rate | 35.00% | 35.00% | 35.00% |
State income tax rate, net of federal benefit | 0.70% | (30.40%) | (0.60%) |
Effects of rates differences | 4.90% | (62.20%) | (47.90%) |
Non-deductible/Non-taxable items | 2.90% | 115.80% | 3.40% |
Change in valuation allowance | (14.50%) | (62.80%) | 35.60% |
U.S. tax on foreign earnings | (43.90%) | (77.40%) | 38.20% |
Uncertain tax positions | 5.30% | 294.40% | 6.80% |
Audit settlements | (1.60%) | (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 | (0.10%) | 5.70% | 1.60% |
Effective income tax rate | (11.30%) | 42.40% | 82.60% |
Federal income tax rate, Amount | $ (26,160) | $ (2,992) | $ 20,781 |
State income tax rate, net of federal benefit, Amount | (543) | 2,598 | (373) |
Effects of rates differences, Amount | (3,678) | 5,317 | (28,671) |
Non-deductible/Non-taxable items | (2,181) | (9,904) | 2,231 |
Change in valuation allowance, Amount | 10,892 | 5,370 | 21,370 |
U.S. tax on foreign earnings, Amount | 32,879 | 6,620 | 22,877 |
Uncertain tax positions, Amount | (3,952) | (25,172) | 4,091 |
Audit settlements, Amount | 1,167 | 13,448 | 3,035 |
Non-deductible write off of intercompany debt, Amount | 1,114 | ||
Non-deductible impairment, Amount | 2,118 | ||
Write-off of income tax receivable, Amount | 1,577 | ||
Other, Amount | 28 | (485) | 966 |
Total income tax expense (benefit) | $ 8,452 | $ (3,623) | $ 49,539 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Current deferred tax assets: | |||
Accrued expenses | $ 13,217 | ||
Unrealized loss on foreign currency | 342 | ||
Valuaton allowance | (7,008) | ||
Total current deferred tax assets | [1] | 6,551 | |
Current deferred tax liabilities: | |||
Unremitted earnings of foreign subsidiary | (14,186) | ||
Other | (44) | ||
Total current deferred tax liabilities | [1] | (14,230) | |
Non-current deferred tax assets: | |||
Stock compensation expense | $ 7,142 | 9,760 | |
Long-term accrued expesnes | 26,114 | 6,773 | |
Net operating loss and charitable contributions carryovers | 22,518 | 20,047 | |
Intangible assets | 4,725 | 1,517 | |
Property and equipment | 12,097 | ||
Future uncertain tax position offset | 456 | 445 | |
Unrealized loss on foreign currency | 466 | ||
Foreign tax credit | 27,109 | 6,259 | |
Other | 5,548 | 1,207 | |
Valuation allowance | (56,572) | (40,273) | |
Total non-current deferred tax assets | 37,506 | $ 17,832 | |
Non-current deferred tax liabilities: | |||
Unremitted earnings of foreign subsidiary | (24,572) | ||
Property and equipment | (6,432) | ||
Total non-current gross deferred tax liabilities | $ (31,004) | ||
[1] | In November 2015, the FASB issued guidance to simplify the financial statement presentation of deferred income taxes. The new guidance requires an entity to present deferred tax assets and liabilities as non-current in a classified balance sheet. Prior to the issuance of this guidance, deferred tax liabilities and assets were required to be separately classified into a current amount and a non-current amount in the balance sheet. The new guidance represents a change in accounting principle and is effective for annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company elected to early adopt this guidance as of December 31, 2015 and to apply it prospectively. Prior period information was not adjusted. Because the application of this guidance affects the balance sheet classification only, adoption of this guidance did not have a material impact on our consolidated financial statements. |
Income Taxes (Deferred Tax Narr
Income Taxes (Deferred Tax Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes [Abstract] | ||
Unremitted Earnings Of Foreign Subsidiaries Related To Non Payment Of Withholding Taxes | $ 249,300 | |
Valuation allowance non-current | 56,572 | $ 40,273 |
Equity Increase If Deferred Tax Assets Are Realized | $ 18,200 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit - January 1 | $ 8,444 | $ 31,616 | $ 31,900 |
Gross increases - tax positions in prior period | 643 | 7 | 572 |
Gross decreases - tax positions in prior period | (385) | (3,711) | (2,086) |
Gross increases - tax positions in current period | 549 | 904 | 3,743 |
Settlements | (4,126) | (20,210) | (2,291) |
Lapse of statute of limitations | (168) | (162) | (222) |
Unrecognized tax benefit - December 31 | $ 4,957 | $ 8,444 | $ 31,616 |
Income Taxes (Unrecognized Ta94
Income Taxes (Unrecognized Tax Benefits Reconciliation Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | 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 benefits | $ 4,957 | $ 8,444 | $ 31,616 | $ 31,900 |
Penalties and interest related to income tax examinations | 200 | 800 | 600 | |
Interest released | 600 | |||
Cumulative accrued balance of penalties and interest related to income tax examinations | 500 | $ 900 | $ 5,000 | |
Expected increase in unrecognized tax benefits in the next twelve months | $ 2,800 |
Income Taxes (Income Tax Examin
Income Taxes (Income Tax Examinations) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Netherlands [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,015 |
Netherlands [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,008 |
Canada [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,015 |
Canada [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,008 |
Japan [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,015 |
Japan [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,009 |
China [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,015 |
China [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,007 |
Singapore [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,015 |
Singapore [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,011 |
United States [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,015 |
United States [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Year under Examination | 2,011 |
Income Taxes (Examination Perio
Income Taxes (Examination Periods Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
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 ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) attributable to common stockholders | $ (73,942) | $ (27,776) | $ 9,690 | $ (5,979) | $ (56,867) | $ 12,009 | $ 19,523 | $ 6,373 | $ (98,007) | $ (18,962) | $ 10,420 |
Less: adjustment for income allocated to participating securities | (36) | ||||||||||
Net income (loss) attributable to common stockholders - basic and diluted | $ (98,007) | $ (18,962) | $ 10,384 | ||||||||
Weighted average common shares outstanding - basic | 75,604,000 | 85,140,000 | 87,989,000 | ||||||||
Plus: dilutive effect of stock options and unvested restricted stock units | 1,100,000 | ||||||||||
Weighted average common shares outstanding - diluted | 75,604,000 | 85,140,000 | 89,089,000 | ||||||||
Basic | $ (1.01) | $ (0.37) | $ 0.11 | $ (0.08) | $ (0.70) | $ 0.12 | $ 0.19 | $ 0.06 | $ (1.30) | $ (0.22) | $ 0.12 |
Diluted | $ (1.01) | $ (0.37) | $ 0.11 | $ (0.08) | $ (0.70) | $ 0.12 | $ 0.19 | $ 0.06 | $ (1.30) | $ (0.22) | $ 0.12 |
Anti-dilutive options and RSUs not included in the calculation of diluted income (loss) per share | 2,100,000 | 2,000,000 | 1,000,000 | ||||||||
Percentage of common stock if-converted Series A preferred stock | 15.90% | ||||||||||
Anti-dilutive Series A preferred shares not included in the calculation of EPS | 13,793,100 |
Earnings Per Share (Stock Repur
Earnings Per Share (Stock Repurchase Plan Authorizations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 26, 2013 | |
Earnings Per Share [Abstract] | |||
Amount authorized for repurchase under share repurchase authorization | $ 350 | ||
Number of shares repurchased | 6.5 | 10.6 | |
Weighted Average Price Of Shares Repurchased | $ 13.24 | $ 13.75 | |
Value for shares repurchased | $ 85.9 | $ 145.6 | |
Amount remaining for repurchase under share repurchase authorization | $ 118.7 |
Series A Preferred Stock (Detai
Series A Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 27, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Series A Preferred Stock [Abstract] | |||
Series A preferred shares, issued | 200,000 | 200,000 | 200,000 |
Anti-dilutive Series A preferred shares not included in the calculation of EPS | 13,793,100 | ||
Gross purchase price | $ 198,000 | ||
Gross purchase price per share | $ 990 | ||
Net proceeds from sale of series A preferred stock | $ 182,200 | ||
Issuance discount | 2,000 | ||
Direct issuance expenses | $ 15,800 | ||
Stated value of preferred shares per share | $ 1,000 | ||
Dividend rate | 6.00% | ||
Penalty dividend rate | 8.00% | ||
Accrued dividends | $ 3,000 | $ 3,067 | |
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 | ||
Percent Of Stated Value | 100.00% | ||
Series A preferred shares, redemption amount | $ 203,000 | $ 203,067 | |
Maximum percent of stated value | 101.00% | ||
Preferred Stock, Redemption Period | 8 years |
Commitments And Contingencie100
Commitments And Contingencies (Future Minimum Annual Rental Commitments Under Non-Cancelable Operating Leases) (Details) $ in Thousands | Dec. 31, 2015USD ($) | |
Future Minimum Annual Rental Commitments Under Non-Cancelable Operating Leases [Abstract] | ||
2,016 | $ 77,127 | |
2,017 | 57,258 | |
2,018 | 46,928 | |
2,019 | 37,621 | |
2,020 | 33,587 | |
Thereafter | 105,310 | |
Total minimum lease payments | 357,831 | [1] |
Future minimum sublease rentals | $ 200 | |
[1] | Minimum lease payments have not been reduced by minimum sublease rentals of $0.2 million due in the future under non-cancelable subleases. They also do not include contingent rentals, which may be paid under certain retail leases on a basis of percentage of sales in excess of stipulated amounts. |
Commitments And Contingencie101
Commitments And Contingencies (Operating Lease Rental Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Operating Leases Rent Expense [Abstract] | ||||
Minimum rentals | [1] | $ 96,579 | $ 108,466 | $ 101,721 |
Contingent rentals | 14,929 | 16,875 | 18,178 | |
Less: Sublease rentals | (322) | (868) | (646) | |
Total rent expense | 111,186 | 124,473 | 119,253 | |
Common area maintenance, parking and storage. | $ 9,100 | $ 9,600 | $ 9,700 | |
[1] | Minimum rentals include all lease payments as well as fixed and variable common area maintenance, parking and storage fees, which were approximately $9.1 million, $9.6 million, and $9.7 million during the years ended December 31, 2015, 2014, and 2013, respectively. |
Commitments And Contingencie102
Commitments And Contingencies (Purchase Commitments) (Details) € in Millions, $ in Millions | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Commitments And Contingencies [Abstract] | |||
Maximum potential raw materials for purchase under supply agreement | € 3.5 | $ 3.8 | |
Purchase commitments with third party manufacturers | $ 158.2 | $ 202.3 |
Commitments And Contingencie103
Commitments And Contingencies (Government Tax Audits) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Uncertainties [Abstract] | |||
Goodwill | [1] | $ 1,973 | $ 2,044 |
[1] | Changes in core technology, goodwill, and indefinite lived intangible assets relate entirely to the impact of foreign currency translation. |
Operating Segments And Geograph
Operating Segments And Geographic Information (Narrative) (Details) - segment | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Segments & Geographic Information [Abstract] | |||
Number of operating segments | 3 | 4 | 4 |
Number of customers who represent 10% or more | 0.00% | 0.00% | 0.00% |
Operating Segments And Geogr105
Operating Segments And Geographic Information (Information Related To Reportable Operating Business Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | $ 208,678 | $ 274,088 | $ 345,671 | $ 262,193 | $ 206,473 | $ 302,401 | $ 376,920 | $ 312,429 | $ 1,090,630 | $ 1,198,223 | $ 1,192,680 | |
Income from operations | $ (65,581) | $ (20,730) | $ 16,349 | $ (2,362) | $ (64,572) | $ 1,113 | $ 41,911 | $ 16,822 | (72,324) | (4,726) | 63,095 | |
Foreign currency transaction loss, net | (3,332) | (4,885) | (4,678) | |||||||||
Interest income | 967 | 1,664 | 2,432 | |||||||||
Interest expense | (969) | (806) | (1,016) | |||||||||
Other income (expense), net | 914 | 204 | 126 | |||||||||
Income (loss) before income taxes | (74,744) | (8,549) | 59,959 | |||||||||
Depreciation and amortization | 35,993 | 37,413 | 41,506 | |||||||||
Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 1,089,534 | 1,197,429 | 1,192,426 | |||||||||
Income from operations | 113,498 | 147,999 | 196,339 | |||||||||
Depreciation and amortization | 13,543 | 22,155 | 21,978 | |||||||||
Intersegment eliminations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Income from operations | (1,498) | 61 | ||||||||||
Unallocated corporate and other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Income from operations | [1] | (155,730) | (131,827) | (112,494) | ||||||||
Depreciation and amortization | [1] | 14,816 | 9,358 | 11,526 | ||||||||
Americas [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 476,210 | 489,915 | 498,552 | |||||||||
Income from operations | [2] | 49,422 | 48,347 | 61,894 | ||||||||
Depreciation and amortization | 7,401 | 11,670 | 10,384 | |||||||||
Asia Pacific [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 424,491 | 473,910 | 477,615 | |||||||||
Income from operations | [3] | 48,447 | 75,135 | 118,253 | ||||||||
Depreciation and amortization | 3,913 | 6,724 | 6,486 | |||||||||
Europe [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 188,833 | 233,604 | 216,259 | |||||||||
Income from operations | [4] | 15,629 | 24,517 | 16,192 | ||||||||
Depreciation and amortization | 2,229 | 3,761 | 5,108 | |||||||||
Other businesses [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenues | 1,096 | 794 | 254 | |||||||||
Income from operations | (30,092) | (19,400) | (20,811) | |||||||||
Depreciation and amortization | $ 7,634 | $ 5,900 | $ 8,002 | |||||||||
[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. | |||||||||||
[2] | Includes $7.2 million, $4.0 million, and $3.9 million for the years ended December 31, 2015, 2014, and 2013, respectively, of asset impairment charges related to 27, 36, and 23 underperforming retail locations, respectively. | |||||||||||
[3] | Includes $0.7 million, $2.8 million, and $0.2 million for the years ended December 31, 2015, 2014, and 2013, respectively, of asset impairment charges related to 27, 14, and two underperforming retail locations, respectively. Additionally in the year ended December 31, 2015, Crocs recorded $5.8 million in impairment charges related to South Africa assets, pertaining to 9 retail locations, classified as available for sale. | |||||||||||
[4] | Includes $1.6 million, $2.0 million, and $6.6 million for the years ended December 31, 2015, 2014, and 2013 of asset impairment charges related to 21, 27, and 35 underperforming retail locations. |
Operating Segments And Geogr106
Operating Segments And Geographic Information (Schedule Of Segment Income Statement Footnote) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2015USD ($)store | Dec. 31, 2014USD ($)store | Dec. 31, 2013USD ($)store | |
Segment Reporting Information [Line Items] | |||||||||
Asset Impairment Charges | $ 7,771 | $ 5,460 | $ 2,075 | $ 2,997 | $ 2,600 | $ 3,230 | $ 15,306 | $ 8,827 | $ 10,949 |
Americas [Member] | Operating Segments [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Underperforming retail locations | store | 27 | 36 | 23 | ||||||
Asset Impairment Charges | $ 7,200 | $ 4,000 | $ 3,900 | ||||||
Asia Pacific [Member] | Operating Segments [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Underperforming retail locations | store | 27 | 14 | 2 | ||||||
Asset Impairment Charges | $ 700 | $ 2,800 | $ 200 | ||||||
Europe [Member] | Operating Segments [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Underperforming retail locations | store | 21 | 27 | 35 | ||||||
Asset Impairment Charges | $ 1,600 | $ 2,000 | $ 6,600 | ||||||
South Africa [Member] | Operating Segments [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Underperforming retail locations | store | 9 | ||||||||
Asset Impairment Charges | $ 5,800 |
Operating Segments And Geogr107
Operating Segments And Geographic Information (Schedule Of Segment Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Deferred tax assets, net | $ 4,190 | ||
Income tax receivable | $ 10,233 | 9,332 | |
Other receivables | 14,233 | 11,989 | |
Prepaid expenses and other current assets | 26,334 | 30,156 | |
Total current assets | 445,949 | 595,408 | |
Property and equipment, net | 49,490 | 68,288 | |
Intangible assets, net | 82,297 | 97,337 | |
Goodwill | [1] | 1,973 | 2,044 |
Deferred tax assets, net | 6,608 | 17,886 | |
Other assets | 21,703 | 25,968 | |
Total assets | 608,020 | 806,931 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total current assets | [2] | 364,106 | 494,272 |
Operating Segments [Member] | Americas [Member] | |||
Segment Reporting Information [Line Items] | |||
Total current assets | [2] | 148,104 | 127,077 |
Operating Segments [Member] | Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Total current assets | [2] | 169,865 | 200,910 |
Operating Segments [Member] | Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Total current assets | [2] | 46,137 | 166,285 |
Supply Chain [Member] | |||
Segment Reporting Information [Line Items] | |||
Total current assets | 14,778 | 18,132 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Total current assets | [3] | $ 16,265 | $ 27,337 |
[1] | Changes in core technology, goodwill, and indefinite lived intangible assets relate entirely to the impact of foreign currency translation. | ||
[2] | Assets by segment include cash and equivalents, net accounts receivable, and inventory. | ||
[3] | Corporate assets primarily consist of cash and equivalents. |
Operating Segments And Geogr108
Operating Segments And Geographic Information (Schedule Of Geographical Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Revenues | $ 208,678 | $ 274,088 | $ 345,671 | $ 262,193 | $ 206,473 | $ 302,401 | $ 376,920 | $ 312,429 | $ 1,090,630 | $ 1,198,223 | $ 1,192,680 | |
United States [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Revenues | 392,463 | 435,154 | 401,948 | |||||||||
International [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Revenues | [1] | $ 698,167 | $ 763,069 | $ 790,732 | ||||||||
[1] | Not more than 10% of international revenue was derived in any individual international country. |
Operating Segments And Geogr109
Operating Segments And Geographic Information (Schedule Of Geographical Long-Lived Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | [1] | $ 49,490 | $ 68,288 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 32,954 | 45,046 | |
International [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 16,536 | $ 23,242 | |
[1] | Not more than 10% of long-lived assets resided in any individual foreign country in 2015 or 2014. |
Legal Proceedings (Legal Tax Pr
Legal Proceedings (Legal Tax Proceedings) (Details) - USD ($) $ in Millions | Dec. 12, 2014 | Feb. 25, 2015 | Jan. 13, 2015 | Oct. 31, 2013 |
U.S. Customs and Border Protection [Member] | ||||
Income Tax Examination [Line Items] | ||||
Paid duties | $ 3.5 | |||
Assessments of unpaid duties | $ 12.4 | |||
Brazilian Federal Tax Authorities [Member] | ||||
Income Tax Examination [Line Items] | ||||
Assessments of unpaid duties | $ 8.4 | $ 3.7 |
Legal Proceedings (Litigation M
Legal Proceedings (Litigation Matters And Other Disputes) (Details) - USD ($) $ in Millions | Jun. 26, 2015 | Dec. 31, 2015 |
Loss Contingencies [Line Items] | ||
Legal settlement accrual | $ 5.6 | |
Minimum reasonably possible loss | 0 | |
Maximum reasonably possible loss | $ 5.9 | |
Crocs Retail, LLC [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation settlement amount | $ 1.5 |
Unaudited Quarterly Consolid112
Unaudited Quarterly Consolidated Financial Information (Schedule Of Unaudited Quarterly Consolidated Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unaudited Quarterly Consolidated Financial Information [Abstract] | |||||||||||
Revenues | $ 208,678 | $ 274,088 | $ 345,671 | $ 262,193 | $ 206,473 | $ 302,401 | $ 376,920 | $ 312,429 | $ 1,090,630 | $ 1,198,223 | $ 1,192,680 |
Gross profit | 72,744 | 120,821 | 189,870 | 127,370 | 76,530 | 155,017 | 202,571 | 156,227 | 510,805 | 590,345 | 623,198 |
Restructuring | 1,274 | 981 | 2,810 | 3,663 | 6,637 | 7,585 | 4,060 | 2,250 | 8,728 | 20,532 | |
Asset impairment charges | 7,771 | 5,460 | 2,075 | 2,997 | 2,600 | 3,230 | 15,306 | 8,827 | 10,949 | ||
Income (loss) from operations | (65,581) | (20,730) | 16,349 | (2,362) | (64,572) | 1,113 | 41,911 | 16,822 | (72,324) | (4,726) | 63,095 |
Net income (loss) | (70,173) | (24,024) | 13,426 | (2,425) | (53,094) | 15,767 | 23,277 | 9,124 | (83,196) | (4,926) | 10,420 |
Net income (loss) attributable to common stockholders | $ (73,942) | $ (27,776) | $ 9,690 | $ (5,979) | $ (56,867) | $ 12,009 | $ 19,523 | $ 6,373 | $ (98,007) | $ (18,962) | $ 10,420 |
Basic income (loss) per common share | $ (1.01) | $ (0.37) | $ 0.11 | $ (0.08) | $ (0.70) | $ 0.12 | $ 0.19 | $ 0.06 | $ (1.30) | $ (0.22) | $ 0.12 |
Diluted income (loss) per common share | $ (1.01) | $ (0.37) | $ 0.11 | $ (0.08) | $ (0.70) | $ 0.12 | $ 0.19 | $ 0.06 | $ (1.30) | $ (0.22) | $ 0.12 |
Unaudited Quarterly Consolid113
Unaudited Quarterly Consolidated Financial Information (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Inventory [Line Items] | ||||
Inventory Write-down | $ 3,108 | $ 7,490 | $ 3,419 | |
Obsolete Inventory [Member] | ||||
Inventory [Line Items] | ||||
Inventory Write-down | $ 10,000 |