Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 25, 2013 | |
Document And Entity Information[Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2013 | |
Entity Registrant Name | Crocs, Inc. | |
Entity Central Index Key | 1334036 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Common stock outstanding | 88,435,783 | |
Trading Symbol | crox |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Statements Of Operations [Abstract] | ||||
Revenues | $288,524 | $295,569 | $964,007 | $898,309 |
Cost of sales | 134,943 | 134,826 | 443,710 | 396,682 |
Gross profit | 153,581 | 160,743 | 520,297 | 501,627 |
Selling, general and administrative expenses | 135,674 | 120,729 | 414,119 | 349,737 |
Asset impairment | 202 | 819 | ||
Income from operations | 17,907 | 40,014 | 105,976 | 151,071 |
Foreign currency transaction losses, net | 1,043 | 21 | 4,457 | 2,670 |
Interest income | -853 | -151 | -1,676 | -1,057 |
Interest expense | 44 | 377 | 519 | 556 |
Other (income) expense, net | 13 | 71 | 180 | -690 |
Income before taxes | 17,660 | 39,696 | 102,496 | 149,592 |
Income tax expense (benefit) | 4,624 | -5,384 | 25,143 | 14,642 |
Net income | $13,036 | $45,080 | $77,353 | $134,950 |
Net income per common share (Note 11): | ||||
Basic | $0.15 | $0.50 | $0.88 | $1.50 |
Diluted | $0.15 | $0.49 | $0.87 | $1.48 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||||
Net income | $13,036 | $45,080 | $77,353 | $134,950 |
Other comprehensive income (loss): | ||||
Foreign currency translation | 6,030 | 7,563 | -4,537 | 3,118 |
Reclassification Of Cumulative Foreign Exchange Translation Adjustments to Net Income | 299 | -658 | ||
Total comprehensive income | $19,066 | $52,643 | $73,115 | $137,410 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||||
Tax Effect of Foreign Currency Translation Adjustment | $0 | $0 | ($3) | $7 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $332,491 | $294,348 |
Accounts receivable, net of allowances of $14,626 and $13,315, respectively | 120,079 | 92,278 |
Inventories | 176,118 | 164,804 |
Deferred tax assets, net | 5,647 | 6,284 |
Income tax receivable | 16,666 | 5,613 |
Other receivables | 17,201 | 24,821 |
Prepaid expenses and other current assets | 30,869 | 24,967 |
Total current assets | 699,071 | 613,115 |
Property and equipment, net | 94,233 | 82,241 |
Intangible assets, net | 69,081 | 59,931 |
Deferred tax assets, net | 33,529 | 34,112 |
Other assets | 50,672 | 40,239 |
Total assets | 946,586 | 829,638 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 66,198 | 63,976 |
Accrued expenses and other current liabilities | 99,277 | 81,371 |
Deferred tax liabilities, net | 2,383 | 2,405 |
Income taxes payable | 27,868 | 8,147 |
Current portion of bank borrowings and capital lease obligations | 4,262 | 2,039 |
Total current liabilities | 199,988 | 157,938 |
Long term income tax payable | 32,457 | 36,343 |
Long-term borrowings and capital lease obligations | 9,345 | 4,596 |
Other liabilities | 14,571 | 13,361 |
Total liabilities | 256,361 | 212,238 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity: | ||
Preferred shares, par value $0.001 per share, 5,000,000 shares authorized, none outstanding | ||
Common shares, par value $0.001 per share, 250,000,000 shares authorized, 91,643,474 and 88,426,104 shares issued and outstanding, respectively, at September 30, 2013 and 91,047,297 and 88,662,845 shares issued and outstanding, respectively, at December 31, 2012 | 92 | 91 |
Treasury stock, at cost, 3,217,370 and 2,384,452 shares, respectively | -56,198 | -44,214 |
Additional paid-in capital | 319,516 | 307,823 |
Retained earnings | 411,365 | 334,012 |
Accumulated other comprehensive income | 15,450 | 19,688 |
Total stockholders' equity | 690,225 | 617,400 |
Total liabilities and stockholders' equity | $946,586 | $829,638 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ||
Allowances | $14,626 | $13,315 |
Preferred shares, par value | $0.00 | $0.00 |
Preferred shares, authorized | 5,000,000 | 5,000,000 |
Preferred shares, outstanding | 0 | 0 |
Common shares, par value | $0.00 | $0.00 |
Common shares, authorized | 250,000,000 | 250,000,000 |
Common shares, issued | 91,643,474 | 91,047,297 |
Common shares, outstanding | 88,426,104 | 88,662,845 |
Treasury stock, shares | 3,217,370 | 2,384,452 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ||
Net income | $77,353 | $134,950 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 31,167 | 26,815 |
Unrealized loss on foreign exchange, net | 761 | 5,530 |
Provision for doubtful accounts, net | 1,420 | 1,619 |
Share based compensation | 9,987 | 8,971 |
Other non-cash items | 1,067 | 2,158 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -31,783 | -34,568 |
Inventories | -15,030 | -57,180 |
Prepaid expenses and other assets | -8,645 | -19,791 |
Accounts payable | 2,388 | 6,619 |
Accrued expenses and other liabilities | 20,755 | 26,849 |
Income taxes | 4,869 | 5,294 |
Cash provided by operating activities | 94,309 | 107,266 |
Cash flows from investing activities: | ||
Purchases of marketable securities | -2,630 | |
Cash paid for purchases of property and equipment | -30,753 | -25,866 |
Proceeds from disposal of property and equipment | 551 | 855 |
Cash paid for intangible assets | -22,665 | -14,254 |
Business acquisitions, net of cash | -5,152 | |
Restricted cash | -1,187 | -1,858 |
Cash used in investing activities | -54,054 | -48,905 |
Cash flows from financing activities: | ||
Proceeds from bank borrowings | 18,568 | 89,505 |
Repayment of bank borrowings and capital lease obligations | -11,654 | -90,617 |
Issuances of common stock | 2,017 | 3,358 |
Purchase of treasury stock | -12,533 | |
Repurchase of common stock for tax withholding | -256 | -493 |
Cash provided by (used in) financing activities | -3,858 | 1,753 |
Effect of exchange rate changes on cash | 1,746 | -5,121 |
Net decrease in cash and cash equivalents | 38,143 | 54,993 |
Cash and cash equivalents - beginning of period | 294,348 | 257,587 |
Cash and cash equivalents - end of period | 332,491 | 312,580 |
Supplemental disclosure of cash flow information-cash paid during the period for: | ||
Interest | 719 | 542 |
Income taxes | 17,134 | 16,937 |
Supplemental disclosure of non-cash, investing, and financing activities: | ||
Assets acquired under capitalized leases | 61 | 35 |
Accrued purchases of property and equipment | 2,493 | 3,996 |
Accrued purchases of intangibles | $209 | $4,281 |
General
General | 9 Months Ended |
Sep. 30, 2013 | |
Organization & Summary of Significant Accounting Policies [Abstract] | |
General | 1. GENERAL |
Organization - Crocs, Inc. and its subsidiaries (collectively the “Company,” “we,” “our” or “us”) are engaged in the design, development, manufacturing, marketing and distribution of footwear, apparel and accessories for men, women and children. | |
Basis of Presentation & Summary of Significant Accounting Policies - The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting on Form 10-Q. Accordingly, these statements do not include all of the information and disclosures required by GAAP or SEC rules and regulations for complete financial statements. In the opinion of management, these financial statements reflect all adjustments (consisting solely of normal recurring matters) considered necessary for a fair presentation of the results for the interim periods presented. The results of operations for any interim period are not necessarily indicative of results for the full year. | |
These statements should be read in conjunction with the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 (the “2012 Form 10-K”). The accounting policies used in preparing these unaudited condensed consolidated financial statements are the same as those described in Note 1 – “Organization and Summary of Significant Accounting Policies” to the consolidated financial statements in the 2012 Form 10-K. | |
Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Management believes that the estimates, judgments and assumptions made when accounting for items and matters such as, but not limited to, the allowance for doubtful accounts, sales returns and discounts, impairment assessments and charges, recoverability of assets (including deferred tax assets), uncertain tax positions, share-based compensation expense, 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 threatened or pending legal and tax matters (see Note 12 – “Commitments & Contingencies” and Note 14 – “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, the Company recognizes an expense for the estimated loss. | |
Noncontrolling Interests - As of September 30, 2013, all of our subsidiaries were, in substance, wholly owned. | |
Accumulated Other Comprehensive Income - Activity within our accumulated other comprehensive income (“AOCI”) balance consists solely of gains and losses resulting from the translation of foreign subsidiary financial statements to our reporting currency. Foreign currency translation resulting in changes to other comprehensive income and related reclassification adjustments are presented net of tax effects on the condensed consolidated statements of other comprehensive income. Foreign currency reclassification adjustments are included within the line item entitled ‘Foreign currency transaction gains (losses), net’ on the condensed consolidated statements of income. | |
Recently Issued Accounting Standards | |
In July 2013, the FASB issued ASU No. 2013-11 Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU No. 2013-11”). This pronouncement provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This pronouncement is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2013. The Company will adopt the provisions of ASU No. 2013-11 on January 1, 2014. We do not anticipate the provisions of ASU No. 2013-11 to have a material impact on to the Company’s condensed consolidated financial statements. | |
Inventories
Inventories | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Inventories [Abstract] | |||||||
Inventories | |||||||
2. INVENTORIES | |||||||
The following table summarizes inventories by major classification as of September 30, 2013 and December 31, 2012: | |||||||
($ thousands) | 30-Sep-13 | 31-Dec-12 | |||||
Finished goods | $ | 165,468 | $ | 155,833 | |||
Work-in-progress | 853 | 911 | |||||
Raw materials | 9,797 | 8,060 | |||||
Inventories | $ | 176,118 | $ | 164,804 | |||
Property_and_Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2013 | |
Property And Equipment [Abstract] | |
Property And Equipment | 3. PROPERTY & EQUIPMENT |
During the nine months ended September 30, 2013, we incurred capital expenditures related to property and equipment of $30.9 million primarily due to the expansion of our retail channel through leasehold improvements and equipment. | |
During the three months ended September 30, 2013 and 2012, we recorded $6.2 million and $5.8 million, respectively, in depreciation expense of which $0.7 million and $1.1 million, respectively, was recorded in ‘Cost of sales’, with the remaining amounts recorded in ‘Selling, general and administrative expenses’ in the condensed consolidated statements of income. During the nine months ended September 30, 2013 and 2012, we recorded $18.2 million and $17.2 million, respectively, in depreciation expense of which $2.3 million and $3.7 million, respectively, was recorded in ‘Cost of sales’, with the remaining amounts recorded in ‘Selling, general and administrative expenses’ in the condensed consolidated statements of income. | |
We periodically evaluate all of our long-lived assets for impairment when events or circumstances would indicate the carrying value of a long-lived asset may not be fully recoverable. We recorded no asset impairment charges during the three months ended September 30, 2013 and 2012. During the nine months ended September 30, 2013 and 2012, we recorded $0.2 million and $0.8 million, respectively, of asset impairment charges related to certain underperforming domestic stores in the Americas segment that were unlikely to generate sufficient cash flows to fully recover the carrying value of the stores' assets over the remaining economic life of those assets. | |
Goodwill_Intangible_Assets
Goodwill & Intangible Assets | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Goodwill & Intangible Assets [Abstract] | |||||||||||||||||||
Goodwill and Intangible Assets | 4. GOODWILL & INTANGIBLE ASSETS | ||||||||||||||||||
The following table summarizes the goodwill and identifiable intangible assets as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||
($ thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||
Capitalized software | $ | 108,586 | -1 | $ | -45,840 | -2 | $ | 62,746 | $ | 87,426 | -1 | $ | -33,933 | -2 | $ | 53,493 | |||
Customer relationships | 6,930 | -6,372 | 558 | 7,145 | -6,222 | 923 | |||||||||||||
Patents, copyrights, and trademarks | 6,453 | -3,946 | 2,507 | 6,161 | -3,522 | 2,639 | |||||||||||||
Core technology | 4,698 | -4,698 | - | 4,856 | -4,856 | - | |||||||||||||
Other | 1,503 | -1,126 | 377 | 670 | -636 | 34 | |||||||||||||
Total finite lived intangible assets | 128,170 | -61,982 | 66,188 | 106,258 | -49,169 | 57,089 | |||||||||||||
Indefinite lived intangible assets | 102 | - | 102 | 113 | - | 113 | |||||||||||||
Goodwill | 2,791 | - | 2,791 | 2,729 | - | 2,729 | |||||||||||||
Intangible assets | $ | 131,063 | $ | -61,982 | $ | 69,081 | $ | 109,100 | $ | -49,169 | $ | 59,931 | |||||||
(1)Includes $4.1 million of software held under a capital lease classified as capitalized software as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||
(2)Includes $1.8 million and $1.3 million of accumulated amortization of software held under a capital lease as of September 30, 2013 and December 31, 2012, respectively, which is amortized using the straight-line method over the useful life. | |||||||||||||||||||
During the three months ended September 30, 2013 and 2012, amortization expense recorded for intangible assets with finite lives was $4.4 million and $3.8 million, respectively, of which $1.6 million and $1.0 million, respectively, was recorded in ‘Cost of sales’, with the remaining amounts recorded in ‘Selling, general and administrative expenses’ in the condensed consolidated statements of income. During the nine months ended September 30, 2013 and 2012, amortization expense recorded for intangible assets with finite lives was $13.0 million and $9.6 million, respectively, of which $4.7 million and $2.7 million, respectively, was recorded in ‘Cost of sales’, with the remaining amounts recorded in ‘Selling, general and administrative expenses’ in the condensed consolidated statements of income. | |||||||||||||||||||
The following table summarizes estimated future annual amortization of intangible assets as of September 30, 2013: | |||||||||||||||||||
Amortization | |||||||||||||||||||
Fiscal years ending December 31, | ($ thousands) | ||||||||||||||||||
Remainder of 2013 | $ | 8,814 | |||||||||||||||||
2014 | 12,899 | ||||||||||||||||||
2015 | 12,825 | ||||||||||||||||||
2016 | 12,781 | ||||||||||||||||||
2017 | 9,285 | ||||||||||||||||||
Thereafter | 9,584 | ||||||||||||||||||
Total | $ | 66,188 | |||||||||||||||||
Accrued_Expenses_And_Other_Cur
Accrued Expenses And Other Current Liabilities | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Accrued Expenses And Other Current Liabilities [Abstract] | |||||||
Accrued Expenses And Other Current Liabilities | |||||||
5. ACCRUED EXPENSES & OTHER CURRENT LIABILITIES | |||||||
The following table summarizes accrued expenses and other current liabilities as of September 30, 2013 and December 31, 2012: | |||||||
September 30, | December 31, | ||||||
($ thousands) | 2013 | 2012 | |||||
Accrued compensation and benefits | $ | 28,829 | $ | 19,714 | |||
Professional services | 16,653 | 13,588 | |||||
Sales/use and VAT tax payable | 15,051 | 12,444 | |||||
Fulfillment, freight and duties | 12,869 | 8,621 | |||||
Accrued rent and occupancy | 10,710 | 10,226 | |||||
Customer deposits | 6,222 | 2,593 | |||||
Entrusted loan payable(1) | - | 7,943 | |||||
Other(2) | 8,943 | 6,242 | |||||
Total accrued expenses and other current liabilities | $ | 99,277 | $ | 81,371 | |||
(1)A corresponding entrusted loan receivable of $7.9 million is recorded in ‘Other receivables’ as of December 31, 2012 as amounts are related to our subsidiaries in China. The entrusted loan was paid in full during the second quarter of 2013 and as such, the entrusted loan payable, and corresponding receivable, was removed from the condensed consolidated balance sheet as of September 30, 2013. | |||||||
(2)The amounts in ‘Other’ consist of various accrued expenses and no individual item accounted for more than 5% of the total current liabilities balance at September 30, 2013 or December 31, 2012. | |||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||
Fair Value Measurements | 6. FAIR VALUE MEASUREMENTS | ||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||
The following tables summarize the financial instruments required to be measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012: | |||||||||||||||
Fair Value as of September 30, 2013 | |||||||||||||||
Quoted prices in | Significant | ||||||||||||||
active markets | other | Significant | |||||||||||||
for identical | observable | unobservable | |||||||||||||
assets or liabilities | inputs | inputs | |||||||||||||
($ thousands) | (Level 1) | (Level 2) | (Level 3) | Total | Balance Sheet Classification | ||||||||||
Cash equivalents | $ | 121,052 | $ | - | $ | - | $ | 121,052 | Cash and cash equivalents and restricted cash | ||||||
Derivative assets: | |||||||||||||||
Foreign currency contracts | - | 11,071 | - | 11,071 | Prepaid expenses and other current assets and other assets | ||||||||||
Derivative liabilities: | |||||||||||||||
Foreign currency contracts | $ | - | $ | 1,199 | $ | - | $ | 1,199 | Accrued expense and other current liabilities | ||||||
Fair Value as of December 31, 2012 | |||||||||||||||
Quoted prices in | Significant | ||||||||||||||
active markets | other | Significant | |||||||||||||
for identical | observable | unobservable | |||||||||||||
assets or liabilities | inputs | inputs | |||||||||||||
($ thousands) | (Level 1) | (Level 2) | (Level 3) | Total | Balance Sheet Classification | ||||||||||
Cash equivalents | $ | 14,800 | $ | - | $ | - | $ | 14,800 | Cash and cash equivalents | ||||||
Derivative assets: | |||||||||||||||
Foreign currency contracts | - | 5,548 | - | 5,548 | Prepaid expenses and other current assets and other assets | ||||||||||
Derivative liabilities: | |||||||||||||||
Foreign currency contracts | $ | - | $ | 295 | $ | - | $ | 295 | Accrued expense and other current liabilities | ||||||
Non-Recurring Fair Value Measurements | |||||||||||||||
The majority of our non-financial instrument assets, 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. | |||||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Derivative Financial Instruments [Abstract] | |||||||||||||||
Derivative Financial Instruments | 7. DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
We transact business in various foreign countries and are therefore exposed to foreign currency exchange rate risk inherent in revenues, costs, and monetary assets and liabilities denominated in non-functional currencies. We have entered into foreign currency exchange forward 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. We do not designate these derivative instruments as hedging instruments under the accounting standards for derivatives and hedging. Accordingly, these instruments are recorded at fair value as a derivative asset or liability on the balance sheet with their corresponding change in fair value recognized in ‘Foreign currency transaction (gains) losses, net’ in our condensed consolidated statements of income. For purposes of the condensed consolidated statement of cash flows, we classify the cash flows at settlement from undesignated instruments in the same category as the cash flows from the related hedged items, generally within ‘Cash provided by (used in) operating activities’. See Note 6 – “Fair Value Measurements” for further details regarding the fair values of the corresponding derivative assets and liabilities. | |||||||||||||||
The following table summarizes the notional amounts of the outstanding foreign currency exchange contracts at September 30, 2013 and December 31, 2012. The notional amounts of the derivative financial instruments shown below are denominated in their U.S. dollar equivalents and represent the amount of all contracts of the foreign currency specified. These notional values do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of our exposure to the foreign currency exchange risks. | |||||||||||||||
September 30, | December 31, | ||||||||||||||
($ thousands) | 2013 | 2012 | |||||||||||||
Foreign currency exchange forward contracts by currency: | |||||||||||||||
Japanese Yen | $ | 73,584 | $ | 112,500 | |||||||||||
Euro | 48,063 | 5,159 | |||||||||||||
Pound Sterling | 24,653 | 8,742 | |||||||||||||
Singapore Dollar | 23,256 | - | |||||||||||||
Mexican Peso | 18,700 | 11,400 | |||||||||||||
Russian Ruble | 11,892 | - | |||||||||||||
Australian Dollar | 5,682 | 4,178 | |||||||||||||
New Taiwan Dollar | 4,353 | - | |||||||||||||
South African Rand | 3,250 | - | |||||||||||||
South Korean Won | 2,083 | - | |||||||||||||
Swedish Krona | 1,959 | - | |||||||||||||
Canadian Dollar | 1,698 | - | |||||||||||||
Indian Rupee | 1,600 | - | |||||||||||||
Hong Kong Dollar | 1,451 | - | |||||||||||||
New Zealand Dollar | 1,200 | 1,137 | |||||||||||||
Norwegian Krone | 551 | - | |||||||||||||
Total notional value, net | $ | 223,975 | $ | 143,116 | |||||||||||
Latest maturity date | Dec-15 | Dec-15 | |||||||||||||
The following table presents the amounts affecting the consolidated statements of income from derivative instruments for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
($ thousands) | 2013 | 2012 | 2013 | 2012 | Location of (Gain) Loss Recognized in Income on Derivatives | ||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign currency exchange forwards | $ | 2,588 | $ | 2,793 | $ | -8,064 | $ | 4,977 | Foreign currency transaction (gains) losses, net | ||||||
Foreign currency transaction gains and losses recognized on the condensed consolidated statements of income include both realized and unrealized gains/losses from underlying foreign currency activity and derivative contracts. These gains and losses are reported on a net basis. For the three months ended September 30, 2013, the net loss recognized of $1.0 million recorded on the condensed consolidated statements of income is comprised of a $2.6 million net loss associated with our derivative instruments partially offset by a $1.6 million net gain associated with exposure from day-to-day business transactions in various foreign currencies. For the three months ended September 30, 2012, the immaterial net loss recorded on the condensed consolidated statements of income is comprised of a $2.8 million net loss associated with our derivative instruments fully offset by a $2.8 million net gain associated with exposure from day-to-day business transactions in various foreign currencies. For the nine months ended September 30, 2013, the net loss recognized of $4.5 million recorded on the condensed consolidated statements of income is comprised of a $12.6 million net loss associated with exposure from day-to-day business transactions in various foreign currencies partially offset by a $8.1 million net gain associated with our derivative instruments. For the nine months ended September 30, 2012, the net loss recognized of $2.7 million recorded on the condensed consolidated statements of income is comprised of a $5.0 million net loss associated with our derivative instruments partially offset by a $2.3 million net gain associated with exposure from day-to-day business transactions in various foreign currencies. | |||||||||||||||
Bank_Borrowings_and_Capital_Le
Bank Borrowings and Capital Lease Obligations | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Bank Borrowings And Capital Lease Obligations [Abstract] | |||||||
Bank Borrowings And Capital Lease Obligations | 8. BANK BORROWINGS & CAPITAL LEASE OBLIGATIONS | ||||||
Bank borrowings and capital lease obligations as of September 30, 2013 and December 31, 2012 consist of the following: | |||||||
September 30, | December 31, | ||||||
($ thousands) | 2013 | 2012 | |||||
Bank borrowings(1) | $ | 13,529 | $ | 6,582 | |||
Capital lease obligations for equipment bearing interest rates ranging from 5.3% to 73.3% and maturities through 2016 | 78 | 53 | |||||
Total bank borrowings and capital lease obligations | $ | 13,607 | $ | 6,635 | |||
(1)Bank borrowings represent the outstanding debt balance related to four separate notes payable issued by PNC Equipment Finance, LLC (“PNC”) for our new ERP implementation. The notes bear interest rates ranging from 2.45% to 2.79% and maturities ranging from September 2016 to June 2017. Interest rates and payment terms are subject to change as further financing occurs. | |||||||
Revolving Credit Facility | |||||||
On June 12, 2013, we entered into a Second Amendment to Amended and Restated Credit Agreement (the “Second Amendment”) with the lenders named therein and PNC Bank, National Association (“PNC”), as a lender and administrative agent for the lenders, pursuant to which certain terms of the Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) dated December 16, 2011, were amended. The Second Amendment, among other things, amends certain restrictive covenants to be more favorable to the Company, including the leverage ratio. | |||||||
As of September 30, 2013 and December 31, 2012, we had no outstanding borrowings under the Credit Agreement. As of September 30, 2013 and December 31, 2012, we had issued and outstanding letters of credit of $7.2 million and $6.4 million, respectively, which were reserved against the borrowing base under the terms of the Credit Agreement. As of September 30, 2013, we were in compliance with all restrictive financial and other covenants under the Credit Agreement. | |||||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Stock Based Compensation [Abstract] | |||||||||||||||||||||
Stock-Based Compensation | 9. STOCK-BASED COMPENSATION | ||||||||||||||||||||
Options granted generally vest over four years with the first year vesting on a cliff basis followed by monthly vesting for the remaining three years. Restricted stock awards (“RSA”) and restricted stock units (“RSU”) granted generally vest over three or four years depending on the terms of the grant. Stock-based compensation expense is recognized on a straight-line basis over the applicable vesting period. During the three months ended September 30, 2013 and 2012, $3.0 million and $2.8 million, respectively, of stock-based compensation expense was recorded, of which $0.5 million and $0.0 million, respectively, was related to the implementation of our ERP system and capitalized to intangible assets. During the nine months ended September 30, 2013 and 2012, $10.5 million and $9.0 million, respectively, of stock-based compensation expense was recorded, of which $0.5 million and $0.0 million, respectively, was related to the implementation of our ERP system and capitalized to intangible assets. | |||||||||||||||||||||
Stock Options | |||||||||||||||||||||
The following table summarizes the stock option activity for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Options | Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | |||||||||||||
Outstanding at June 30, 2013 and 2012, respectively, and December 31, 2012 and 2011, respectively | 2,370,085 | $ | 13.42 | 2,974,613 | $ | 12.48 | 2,621,686 | $ | 13.03 | 3,331,031 | $ | 11.91 | |||||||||
Granted | 10,000 | 13.52 | 69,500 | 17.19 | 167,000 | 15.75 | 183,400 | 17.18 | |||||||||||||
Exercised | -87,730 | 6.59 | -257,570 | 7.10 | -291,820 | 6.91 | -543,014 | 6.18 | |||||||||||||
Forfeited or expired | -63,089 | 20.18 | -55,886 | 17.13 | -267,600 | 17.59 | -240,760 | 16.42 | |||||||||||||
Outstanding at September 30 | 2,229,266 | $ | 13.50 | 2,730,657 | $ | 13.01 | 2,229,266 | $ | 13.50 | 2,730,657 | $ | 13.01 | |||||||||
Restricted Stock Awards and Units | |||||||||||||||||||||
From time to time, we grant RSAs and RSUs to our employees. Unvested RSAs have the same rights as those of common shares including voting rights and non-forfeitable dividend rights. However, ownership of unvested RSAs cannot be transferred until they are vested. An unvested RSU is a contractual right to receive a share of common stock only upon its vesting. RSUs have dividend equivalent rights which accrue over the term of the award and are paid if and when the RSUs vest, but they have no voting rights. | |||||||||||||||||||||
During the three months ended September 30, 2013 and 2012, the Board of Directors approved an immaterial amount of RSU grants. During the nine months ended September 30, 2013 and 2012, the Board of Directors approved RSU grants of 1.6 million and 0.9 million, respectively, of which 0.7 million and 0.4 million, respectively, were granted to certain executives as part of our performance incentive program. Half of these performance incentive program grants vest ratably on each of the first three anniversaries of the grant date; 25% will vest upon achievement of certain performance metrics; and the remaining 25% will vest one year from the date upon which certain performance metrics are achieved. If actual performance metrics exceed the targeted performance metrics by a predetermined amount, the executives are eligible to receive up to 200% of the performance-based portion of their award. During the three months ended September 30, 2013 and 2012, $2.2 million and $1.9 million, respectively, of stock-based compensation expense related to RSUs were recorded. During the nine months ended September 30, 2013 and 2012, $8.1 million and $5.1 million, respectively, of stock-based compensation expense related to RSUs were recorded. | |||||||||||||||||||||
The following table summarizes the RSA activity for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Restricted Stock Awards | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||
Outstanding at June 30, 2013 and 2012, respectively, and December 31, 2012 and 2011, respectively | 288,087 | $ | 13.32 | 383,410 | $ | 13.53 | 355,509 | $ | 13.37 | 571,175 | $ | 11.87 | |||||||||
Granted | - | - | - | - | 21,590 | 16.56 | 18,813 | 16.48 | |||||||||||||
Vested | -5,396 | 16.56 | -7,600 | 16.77 | -83,608 | 14.70 | -187,078 | 9.04 | |||||||||||||
Forfeited or expired | -15,000 | 14.34 | -5,100 | 12.51 | -25,800 | 13.57 | -32,200 | 12.51 | |||||||||||||
Outstanding at September 30 | 267,691 | $ | 13.20 | 370,710 | $ | 13.47 | 267,691 | $ | 13.20 | 370,710 | $ | 13.47 | |||||||||
The following table summarizes the RSU activity for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Restricted Stock Units | Units | Weighted Average Grant Date Fair Value | Units | Weighted Average Grant Date Fair Value | Units | Weighted Average Grant Date Fair Value | Units | Weighted Average Grant Date Fair Value | |||||||||||||
Outstanding at June 30, 2013 and 2012, respectively, and December 31, 2012 and 2011, respectively | 2,456,014 | $ | 16.72 | 1,465,715 | $ | 21.00 | 1,414,661 | $ | 20.61 | 711,980 | $ | 23.43 | |||||||||
Granted | 26,500 | 13.52 | 59,500 | 17.19 | 1,589,614 | 15.01 | 948,059 | 19.28 | |||||||||||||
Vested | -8,231 | 24.17 | -7,984 | 26.81 | -295,215 | 22.32 | -113,225 | 24.65 | |||||||||||||
Forfeited or expired | -90,285 | 18.08 | -29,996 | 19.19 | -325,062 | 21.10 | -59,579 | 20.22 | |||||||||||||
Outstanding at September 30 | 2,383,998 | $ | 16.59 | 1,487,235 | $ | 20.86 | 2,383,998 | $ | 16.59 | 1,487,235 | $ | 20.86 | |||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes [Abstract] | |
Income Taxes | 10. INCOME TAXES |
During the three months ended September 30, 2013, we recognized an income tax expense of $4.6 million on pre-tax income of $17.7 million, representing an effective income tax rate of 26.2% compared to an income tax benefit of $5.4 million on pre-tax income of $39.7 million, representing an effective income tax rate of (13.6%) for the same period in 2012. During the nine months ended September 30, 2013, we recognized an income tax expense of $25.1 million on pre-tax income of $102.5 million, representing an effective income tax rate of 24.6% compared to an income tax expense of $14.6 million on pre-tax income of $149.6 million, representing an effective income tax rate of 9.8% for the same period in 2012. | |
The increase in effective tax rate for the three and nine months ended September 30, 2013 compared to the same period in 2012 is principally the result of the release of certain valuation allowances associated with deferred tax assets that occurred in 2012 and did not reoccur in 2013. Our effective tax rates for all periods presented also differ from the federal U.S. statutory rate due to differences between income tax rates between U.S. and foreign jurisdictions. We had unrecognized tax benefits of $28.0 million at September 30, 2013 and $31.9 million at December 31, 2012. | |
We are regularly subject to, and are currently undergoing, audits by tax authorities in the United States and foreign jurisdictions for prior tax years. Please refer to Note 12 – “Commitments & Contingencies” for further details regarding these audits. | |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | 11. EARNINGS PER SHARE | ||||||||||||
The following table illustrates the basic and diluted earnings per share (“EPS”) computations for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
($ thousands, except share and per share data) | 2013 | 2012 | 2013 | 2012 | |||||||||
Numerator | |||||||||||||
Net income attributable to common stockholders | $ | 13,036 | $ | 45,080 | $ | 77,353 | $ | 134,950 | |||||
Less: income allocated to participating securities | -41 | -188 | -276 | -702 | |||||||||
Net income attributable to common stockholders - basic and diluted | $ | 12,995 | $ | 44,892 | $ | 77,077 | $ | 134,248 | |||||
Denominator | |||||||||||||
Weighted average common shares outstanding - basic | 88,109,088 | 89,947,641 | 87,919,351 | 89,592,430 | |||||||||
Plus: dilutive effect of stock options and unvested restricted stock units | 798,725 | 902,313 | 970,970 | 1,079,586 | |||||||||
Weighted average common shares outstanding - diluted | 88,907,813 | 90,849,954 | 88,890,321 | 90,672,016 | |||||||||
Net income attributable per common share: | |||||||||||||
Basic | $ | 0.15 | $ | 0.50 | $ | 0.88 | $ | 1.50 | |||||
Diluted | $ | 0.15 | $ | 0.49 | $ | 0.87 | $ | 1.48 | |||||
For the three and nine months ended September 30, 2013, approximately 1.4 million options and RSUs in total were not included in the calculation of diluted EPS as their effect would have been anti-dilutive. For the three and nine months ended September 30, 2012, approximately 1.7 million and 1.5 million, respectively, options and RSUs in total were not included in the calculation of diluted EPS as their effect would have been anti-dilutive. | |||||||||||||
We continue to evaluate options to maximize the returns on our cash and maintain an appropriate capital structure, including, among other alternatives, repurchases of our common stock. As of September 30, 2013, we had approximately 2.8 million shares available for repurchase under previously announced repurchase authorizations. | |||||||||||||
On October 29, 2013, our Board of Directors authorized the repurchase of up to an additional 15.0 million shares of Company common stock under the Company’s previously announced stock repurchase authorization. This brings the total shares available for repurchase by the Company under the existing board authorization to approximately 17.8 million shares. The number, price and timing of the repurchases, if any, will be at the Company’s sole discretion and future repurchases will be evaluated depending on market conditions, liquidity needs and other factors. The Company’s Board of Directors may suspend, modify or terminate the program at any time without prior notice. | |||||||||||||
For the three months ended September 30, 2013, we did not repurchase any shares associated with a publicly-announced repurchase plan. For the nine months ended September 30, 2013, we repurchased approximately 0.8 million shares at an average price of $14.99 for an aggregate price of approximately $12.5 million excluding related commission charges, under a publicly-announced repurchase plan. | |||||||||||||
Commitments_Contingencies
Commitments & Contingencies | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Commitments & Contingencies [Abstract] | |||||||||||||
Commitments & Contingencies | 12. COMMITMENTS & CONTINGENCIES | ||||||||||||
Rental Commitments and Contingencies | |||||||||||||
We rent space for our retail stores, offices, warehouses, vehicles, and equipment under operating leases expiring at various dates through 2033. Certain leases contain rent escalation clauses (step rents) that require additional rental amounts in the later years of the term. Rent expense for leases with step rents or rent holidays is recognized on a straight-line basis over the lease term. Deferred rent is included in the condensed consolidated balance sheets in ‘Accrued expenses and other current liabilities.’ | |||||||||||||
The following table summarizes the composition of rent expense under operating leases for the three and nine months ended September 30, 2013 and 2012 (in thousands): | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Minimum rentals | $ | 26,047 | $ | 21,458 | $ | 75,093 | $ | 61,177 | |||||
Contingent rentals | 5,596 | 4,864 | 15,240 | 13,610 | |||||||||
Less: Sublease rentals | -158 | -228 | -469 | -667 | |||||||||
Total rent expense | $ | 31,485 | $ | 26,094 | $ | 89,864 | $ | 74,120 | |||||
Purchase Commitments | |||||||||||||
As of September 30, 2013, we had purchase commitments with certain third party manufacturers for $176.9 million, which includes an immaterial amount of yet-to-be-received finished product where title passes to us upon receipt. As of December 31, 2012, we had purchase commitments with certain third party manufacturers for $152.8 million, of which $5.9 million was for yet-to-be-received finished product where title passes to us upon receipt. | |||||||||||||
Government Tax Audits | |||||||||||||
We are regularly subject to, and are currently undergoing, audits by tax authorities in the United States and foreign jurisdictions for prior tax years. | |||||||||||||
In April 2013, the State of Sao Paulo, Brazil government (“Brazil”) assessed sales taxes, interest and penalties for the period April 2009 to May 2011. We had previously tendered these taxes using Brazil obligations purchased at a discount from third parties. On May 22, 2013, we applied for amnesty in order to receive a significant reduction in penalties and interest, agreed to amend our 2009 through 2012 tax returns to remove the Brazil obligations, and agreed to settle the assessment in cash to Brazil. In June 2013, cash payment was made to Brazil, in full satisfaction of the Brazil assessment. Brazil is making court-ordered payments to holders of the Brazil obligations along with accrued interest. The Company anticipates that the Brazil obligations (plus accrued interest) will be paid by Brazil in accordance with the court-orders. The Company is carrying the Brazil obligations at the original discounted cost to the Company and intends to hold the Brazil obligations until paid by Brazil. The net impact of the above is a $6.1 million charge to operating income, and the carrying balance of the Brazil obligations in investments is $3.5 million. | |||||||||||||
The Company is currently undergoing a tax audit in Canada. We recently received an economic report on certain transfer pricing items from the Canadian tax authorities. While the audit is in its preliminary stages, we believe the results of the economic report to be overstated and intend to assert that any amount due to the Canadian tax authorities is substantially less than reflected in the economic report provided. We expect the resolution of this matter to be long term in nature if assessments and appeals are necessary. We intend to defend our position through litigation if necessary, however, the final outcome of tax audits and related litigation, including the assessment of potentially significant penalties and interest, is inherently uncertain and could be materially different than that reflected in our historical income tax provisions and accruals and could have a material adverse impact on our financial position, results of operations or cash flows. | |||||||||||||
Operating_Segments_and_Geograp
Operating Segments and Geographic Information | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Operating Segments And Geographic Information [Abstract] | |||||||||||||
Operating Segments And Geographic Information | 13. OPERATING SEGMENTS & GEOGRAPHIC INFORMATION | ||||||||||||
During the first quarter of 2013, we adjusted our operating segment structure for internal reports reviewed by the chief operating decision maker (“CODM”) by presenting Japan separate from the Asia Pacific segment. This change was made due to recurring amounts of substantial business activity as well as the macroeconomic environment within Japan, which resulted in the need for a regular review of Japan operating results by management and the CODM in order to better evaluate performance and allocate resources for the consolidated business. Segment information for all periods presented has been reclassified to conform to the fiscal 2013 presentation. | |||||||||||||
As a result of the changes discussed above, we have four reportable operating segments based on the geographic nature of our operations: Americas, Asia Pacific, Japan and Europe. We also have an “Other businesses” category which aggregates insignificant operating segments that do not meet the reportable segment threshold and represent manufacturing operations located in Mexico, Italy and Asia. The composition of our reportable operating segments is consistent with that used by our CODM to evaluate performance and allocate resources. | |||||||||||||
Each of our reportable operating segments derives its revenues from the sale of footwear, apparel and accessories to external customers as well as intersegment sales. Revenues of the “Other businesses” category are primarily made up of intersegment sales. The remaining revenues for the “Other businesses” represent non-footwear product sales to external customers. Intersegment sales are not included in the measurement of segment operating income or regularly reviewed by the CODM and are eliminated when deriving total consolidated revenues. | |||||||||||||
The primary financial measure utilized by the CODM to evaluate performance and allocate resources is segment operating income. Segment performance evaluation is based primarily on segment results without allocating corporate expenses, or indirect general, administrative and other expenses. Segment profits or losses of our reportable operating segments include adjustments to eliminate intersegment profit or losses on intersegment sales. As such, reconciling items for segment operating income represent unallocated corporate and other expenses as well as intersegment eliminations. Segment assets consist of cash and cash equivalents, accounts receivable and inventory as these balances are regularly reviewed by the CODM. | |||||||||||||
The following table sets forth information related to our reportable operating business segments during the three and nine months ended September 30, 2013 and 2012: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
($ thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||
Revenues: | |||||||||||||
Americas | $ | 116,194 | $ | 131,948 | $ | 391,878 | $ | 383,866 | |||||
Asia Pacific | 79,406 | 72,964 | 281,695 | 232,240 | |||||||||
Japan | 38,984 | 50,731 | 114,815 | 140,336 | |||||||||
Europe | 53,903 | 39,765 | 175,419 | 141,534 | |||||||||
Total segment revenues | 288,487 | 295,408 | 963,807 | 897,976 | |||||||||
Other businesses | 37 | 161 | 200 | 333 | |||||||||
Total consolidated revenues | $ | 288,524 | $ | 295,569 | $ | 964,007 | $ | 898,309 | |||||
Operating income: | |||||||||||||
Americas(1) | $ | 17,969 | $ | 27,610 | $ | 61,787 | $ | 77,299 | |||||
Asia Pacific | 13,690 | 18,014 | 76,478 | 65,488 | |||||||||
Japan | 11,656 | 20,999 | 36,679 | 61,666 | |||||||||
Europe | 6,860 | 1,351 | 31,188 | 27,730 | |||||||||
Total segment operating income | 50,175 | 67,974 | 206,132 | 232,183 | |||||||||
Reconciliation of total segment operating income to income before income taxes: | |||||||||||||
Other businesses | -5,495 | -2,690 | -14,907 | -8,598 | |||||||||
Intersegment eliminations | 15 | 15 | 45 | 54 | |||||||||
Unallocated corporate and other(2) | -26,788 | -25,285 | -85,294 | -72,568 | |||||||||
Total consolidated operating income | 17,907 | 40,014 | 105,976 | 151,071 | |||||||||
Foreign currency transaction losses, net | 1,043 | 21 | 4,457 | 2,670 | |||||||||
Interest income | -853 | -151 | -1,676 | -1,057 | |||||||||
Interest expense | 44 | 377 | 519 | 556 | |||||||||
Other (income) expense, net | 13 | 71 | 180 | -690 | |||||||||
Income before income taxes | $ | 17,660 | $ | 39,696 | $ | 102,496 | $ | 149,592 | |||||
Depreciation and amortization: | |||||||||||||
Americas | $ | 2,690 | $ | 2,347 | $ | 7,663 | $ | 7,530 | |||||
Asia Pacific | 1,244 | 1,256 | 3,722 | 3,557 | |||||||||
Japan | 346 | 575 | 1,122 | 1,474 | |||||||||
Europe | 1,367 | 787 | 3,798 | 2,079 | |||||||||
Total segment depreciation and amortization | 5,647 | 4,965 | 16,305 | 14,640 | |||||||||
Other businesses | 2,045 | 1,704 | 6,285 | 4,765 | |||||||||
Unallocated corporate and other(2) | 2,953 | 2,890 | 8,577 | 7,410 | |||||||||
Total consolidated depreciation and amortization | $ | 10,645 | $ | 9,559 | $ | 31,167 | $ | 26,815 | |||||
(1)Includes $0.2 million and $0.8 million for the nine months ended September 30, 2013 and 2012, respectively, of asset impairment charges related to certain underperforming retail locations. | |||||||||||||
(2)Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, depreciation and amortization of corporate and other assets not allocated to operating segments and costs of the same nature related to certain corporate holding companies. | |||||||||||||
The following table sets forth asset information related to our reportable operating business segments as of September 30, 2013 and December 31, 2012: | |||||||||||||
September 30, | December 31, | ||||||||||||
($ thousands) | 2013 | 2012 | |||||||||||
Assets: | |||||||||||||
Americas | $ | 132,960 | $ | 143,236 | |||||||||
Asia Pacific | 211,789 | 170,426 | |||||||||||
Japan | 88,130 | 111,785 | |||||||||||
Europe | 165,013 | 85,756 | |||||||||||
Total segment current assets | 597,892 | 511,203 | |||||||||||
Other businesses | 16,977 | 14,489 | |||||||||||
Unallocated corporate and other(1) | 13,819 | 25,738 | |||||||||||
Deferred tax assets, net | 5,647 | 6,284 | |||||||||||
Income tax receivable | 16,666 | 5,613 | |||||||||||
Other receivables | 17,201 | 24,821 | |||||||||||
Prepaid expenses and other current assets | 30,869 | 24,967 | |||||||||||
Total current assets | 699,071 | 613,115 | |||||||||||
Property and equipment, net | 94,233 | 82,241 | |||||||||||
Intangible assets, net | 69,081 | 59,931 | |||||||||||
Deferred tax assets, net | 33,529 | 34,112 | |||||||||||
Other assets | 50,672 | 40,239 | |||||||||||
Total consolidated assets | $ | 946,586 | $ | 829,638 | |||||||||
(1)Corporate assets primarily consist of cash and equivalents. | |||||||||||||
Legal_Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2013 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | 14. LEGAL PROCEEDINGS |
We and certain current and former officers and directors have been named as defendants in complaints filed by investors in the United States District Court for the District of Colorado. The first complaint was filed in November 2007 and several other complaints were filed shortly thereafter. These actions were consolidated and, in September 2008, the district court appointed a lead plaintiff and counsel. An amended consolidated complaint was filed in December 2008. The amended complaint purports to state claims under Section 10(b), 20(a), and 20A of the Exchange Act on behalf of a class of all persons who purchased our common stock between April 2, 2007 and April 14, 2008 (the “Class Period”). The amended complaint also added our independent auditor as a defendant. The amended complaint alleges that, during the Class Period, the defendants made false and misleading public statements about us and our business and prospects and, as a result, the market price of our common stock was artificially inflated. The amended complaint also claims that certain current and former officers and directors traded in our common stock on the basis of material non-public information. The amended complaint seeks compensatory damages on behalf of the alleged class in an unspecified amount, including interest, and also added attorneys’ fees and costs of litigation. On February 28, 2011, the District Court granted motions to dismiss filed by the defendants and dismissed all claims. A final judgment was thereafter entered. Plaintiffs subsequently appealed to the United States Court of Appeals for the Tenth Circuit. We and those current and former officers and directors named as defendants have entered into a Stipulation of Settlement with the plaintiffs that would, if approved by the United States District Court for the District of Colorado, resolve all claims asserted against us by the plaintiffs on behalf of the putative class, and plaintiffs’ appeal would be dismissed. Our independent auditor is not a party to the Stipulation of Settlement. The Stipulation of Settlement received preliminary approval from the District Court on August 28, 2013. It remains subject to customary conditions, including final court approval following notice to stockholders. The District Court has scheduled a final settlement hearing for February 13, 2014. If the settlement becomes final, all amounts required by the settlement will be paid by our insurers. There can be no assurance that the settlement will be finally approved by the District Court, or that approval by the District Court will, if challenged, be upheld by the Tenth Circuit. | |
On October 27, 2010, Spectrum Agencies (“Spectrum”) filed suit against our subsidiary, Crocs Europe B.V. (“Crocs Europe”), in the High Court of Justice, Queen’s Bench Division, Royal Courts of Justice in London, United Kingdom (“UK”). Spectrum acted as an agent for Crocs products in the UK from 2005 until Crocs Europe terminated the relationship on July 3, 2008 due to Spectrum’s breach of its duty to act in good faith towards Crocs Europe. Spectrum alleges that Crocs Europe unlawfully terminated the agency relationship and failed to pay certain sales commissions. A trial on the liability, not quantum (compensation and damages), was held at the High Court in London from November 30, 2011 to December 5, 2011. On December 16, 2011, the High Court of Justice issued a judgment that found that although Spectrum’s actions were a breach of its duty to act in good faith towards Crocs Europe the breach was not sufficiently severe to justify termination. We believe that the trial judge erred in his findings and subsequently appealed the judgment. On October 30, 2012, the Court of Appeal handed down its judgment confirming the trial judge’s findings. We submitted a request to the Supreme Court seeking permission to appeal. On April 24, 2013 the Supreme Court declined to grant permission to appeal. Given that to date the legal proceedings in this case have only addressed liability, there have been no findings in relation to the amount of compensation or damages other than with respect to legal fees. Under English law, the prevailing party is entitled to reimbursement of reasonable legal fees incurred in the proceedings. We expect that Spectrum will now request to move to the damages phase via a case management conference, during which the Court will provide instructions and schedules leading up to the trial on damages. Spectrum has not formally filed a court claim for compensation and damages and the amount will be assessed later in the proceedings. A trial and judgment on damages could take up to 12 months. | |
We are currently subject to an audit by U.S. Customs & Border Protection (“CBP”) in respect of the period from 2006 to 2010. In August 2013, CBP issued a revised draft audit report to which we filed comments and objections. CBP has stated that a final report will be issued before the end of 2013. CBP has provided us with projections that reflect unpaid duties totaling approximately $12.4 million during the period under review (a reduction from $14.3 million in the preliminary draft report issued in 2012). We have responded that these projections are erroneous and provided arguments that demonstrate the amount due in connection with this matter is considerably less than the preliminary projection. CBP is currently reviewing this response. It is not possible at this time to predict whether our arguments will be successful in eliminating or reducing the amount in dispute. CBP has stated that the final report will recommend collection of the duties due. At this time, it is not possible to determine when a notice of claim will be received from CBP but currently we do not anticipate a notice of claim will be received prior to the first quarter of 2014. Likewise, it is not possible to predict whether CBP may seek to assert a claim for penalties in addition to any unpaid duties. | |
Mexico’s Federal Tax Authority (“SAT”) audited the period from January 2006 to July 2011. There were two phases to the audit, the first for capital equipment and finished goods and the second for raw materials. The first phase was completed and no major discrepancies were noted by the SAT. On January 9, 2013, Crocs received a notice for the second phase in which the SAT issued a tax assessment (taxes and penalties) of roughly 280.0 million pesos (approximately $22.0 million) based on the value of all of Crocs’ imported raw materials during the audit period. We believe that the proposed penalty amount is unfounded and without merit. With the help of local counsel we filed an appeal by the deadline of March 15, 2013. We have argued that the amount due in connection with the matter, if any, is substantially less than that proposed by the SAT. In connection with the appeal, the SAT required us to post an appeal surety bond in the amount of roughly 321.0 million pesos (approximately $26.0 million), which amount reflects estimated additional penalties and interest if we are not successful on our appeal. This amount will be adjusted on an annual basis. We expect it to take between two and three years for resolution of this matter in the Mexican courts. It is not possible at this time to predict the outcome of this matter or reasonably estimate any potential loss. | |
As of September 30, 2013, we have accrued a total of $6.0 million relating to these litigation matters and other disputes. We estimate that the ultimate resolution of these litigation matters and other disputes could result in a loss that is reasonably possible between $0 and $10.2 million in the aggregate, in excess of the amount accrued. | |
Although we are subject to other litigation from time to time in the ordinary course of business, including employment, intellectual property and product liability claims, we are not party to any other pending legal proceedings that we believe will have a material adverse impact on our business, financial position, results of operations or cash flows. | |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Inventories [Abstract] | |||||||
Schedule of Inventory | |||||||
($ thousands) | 30-Sep-13 | 31-Dec-12 | |||||
Finished goods | $ | 165,468 | $ | 155,833 | |||
Work-in-progress | 853 | 911 | |||||
Raw materials | 9,797 | 8,060 | |||||
Inventories | $ | 176,118 | $ | 164,804 | |||
Goodwill_Intangible_Assets_Tab
Goodwill & Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Goodwill & Intangible Assets [Abstract] | |||||||||||||||||||
Schedule of Goodwill & Intangible Assets | 30-Sep-13 | 31-Dec-12 | |||||||||||||||||
($ thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||
Capitalized software | $ | 108,586 | -1 | $ | -45,840 | -2 | $ | 62,746 | $ | 87,426 | -1 | $ | -33,933 | -2 | $ | 53,493 | |||
Customer relationships | 6,930 | -6,372 | 558 | 7,145 | -6,222 | 923 | |||||||||||||
Patents, copyrights, and trademarks | 6,453 | -3,946 | 2,507 | 6,161 | -3,522 | 2,639 | |||||||||||||
Core technology | 4,698 | -4,698 | - | 4,856 | -4,856 | - | |||||||||||||
Other | 1,503 | -1,126 | 377 | 670 | -636 | 34 | |||||||||||||
Total finite lived intangible assets | 128,170 | -61,982 | 66,188 | 106,258 | -49,169 | 57,089 | |||||||||||||
Indefinite lived intangible assets | 102 | - | 102 | 113 | - | 113 | |||||||||||||
Goodwill | 2,791 | - | 2,791 | 2,729 | - | 2,729 | |||||||||||||
Intangible assets | $ | 131,063 | $ | -61,982 | $ | 69,081 | $ | 109,100 | $ | -49,169 | $ | 59,931 | |||||||
(1)Includes $4.1 million of software held under a capital lease classified as capitalized software as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||
(2)Includes $1.8 million and $1.3 million of accumulated amortization of software held under a capital lease as of September 30, 2013 and December 31, 2012, respectively, which is amortized using the straight-line method over the useful life. | |||||||||||||||||||
Schedule of Future Amortization of Intangible Assets | |||||||||||||||||||
Amortization | |||||||||||||||||||
Fiscal years ending December 31, | ($ thousands) | ||||||||||||||||||
Remainder of 2013 | $ | 8,814 | |||||||||||||||||
2014 | 12,899 | ||||||||||||||||||
2015 | 12,825 | ||||||||||||||||||
2016 | 12,781 | ||||||||||||||||||
2017 | 9,285 | ||||||||||||||||||
Thereafter | 9,584 | ||||||||||||||||||
Total | $ | 66,188 | |||||||||||||||||
Recovered_Sheet1
Accrued Expenses and Other Current Liabilies (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Accrued Expenses And Other Current Liabilities [Abstract] | |||||||
Schedule of Accrued Expenses & Other Current Liabilities | September 30, | December 31, | |||||
($ thousands) | 2013 | 2012 | |||||
Accrued compensation and benefits | $ | 28,829 | $ | 19,714 | |||
Professional services | 16,653 | 13,588 | |||||
Sales/use and VAT tax payable | 15,051 | 12,444 | |||||
Fulfillment, freight and duties | 12,869 | 8,621 | |||||
Accrued rent and occupancy | 10,710 | 10,226 | |||||
Customer deposits | 6,222 | 2,593 | |||||
Entrusted loan payable(1) | - | 7,943 | |||||
Other(2) | 8,943 | 6,242 | |||||
Total accrued expenses and other current liabilities | $ | 99,277 | $ | 81,371 | |||
(1)A corresponding entrusted loan receivable of $7.9 million is recorded in ‘Other receivables’ as of December 31, 2012 as amounts are related to our subsidiaries in China. The entrusted loan was paid in full during the second quarter of 2013 and as such, the entrusted loan payable, and corresponding receivable, was removed from the condensed consolidated balance sheet as of September 30, 2013. | |||||||
(2)The amounts in ‘Other’ consist of various accrued expenses and no individual item accounted for more than 5% of the total current liabilities balance at September 30, 2013 or December 31, 2012. | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||
Schedule of Fair Value Measurements on a Recurring Basis | |||||||||||||||
Fair Value as of September 30, 2013 | |||||||||||||||
Quoted prices in | Significant | ||||||||||||||
active markets | other | Significant | |||||||||||||
for identical | observable | unobservable | |||||||||||||
assets or liabilities | inputs | inputs | |||||||||||||
($ thousands) | (Level 1) | (Level 2) | (Level 3) | Total | Balance Sheet Classification | ||||||||||
Cash equivalents | $ | 121,052 | $ | - | $ | - | $ | 121,052 | Cash and cash equivalents and restricted cash | ||||||
Derivative assets: | |||||||||||||||
Foreign currency contracts | - | 11,071 | - | 11,071 | Prepaid expenses and other current assets and other assets | ||||||||||
Derivative liabilities: | |||||||||||||||
Foreign currency contracts | $ | - | $ | 1,199 | $ | - | $ | 1,199 | Accrued expense and other current liabilities | ||||||
Fair Value as of December 31, 2012 | |||||||||||||||
Quoted prices in | Significant | ||||||||||||||
active markets | other | Significant | |||||||||||||
for identical | observable | unobservable | |||||||||||||
assets or liabilities | inputs | inputs | |||||||||||||
($ thousands) | (Level 1) | (Level 2) | (Level 3) | Total | Balance Sheet Classification | ||||||||||
Cash equivalents | $ | 14,800 | $ | - | $ | - | $ | 14,800 | Cash and cash equivalents | ||||||
Derivative assets: | |||||||||||||||
Foreign currency contracts | - | 5,548 | - | 5,548 | Prepaid expenses and other current assets and other assets | ||||||||||
Derivative liabilities: | |||||||||||||||
Foreign currency contracts | $ | - | $ | 295 | $ | - | $ | 295 | Accrued expense and other current liabilities | ||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Derivative Financial Instruments [Abstract] | |||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | |||||||||||||||
September 30, | December 31, | ||||||||||||||
($ thousands) | 2013 | 2012 | |||||||||||||
Foreign currency exchange forward contracts by currency: | |||||||||||||||
Japanese Yen | $ | 73,584 | $ | 112,500 | |||||||||||
Euro | 48,063 | 5,159 | |||||||||||||
Pound Sterling | 24,653 | 8,742 | |||||||||||||
Singapore Dollar | 23,256 | - | |||||||||||||
Mexican Peso | 18,700 | 11,400 | |||||||||||||
Russian Ruble | 11,892 | - | |||||||||||||
Australian Dollar | 5,682 | 4,178 | |||||||||||||
New Taiwan Dollar | 4,353 | - | |||||||||||||
South African Rand | 3,250 | - | |||||||||||||
South Korean Won | 2,083 | - | |||||||||||||
Swedish Krona | 1,959 | - | |||||||||||||
Canadian Dollar | 1,698 | - | |||||||||||||
Indian Rupee | 1,600 | - | |||||||||||||
Hong Kong Dollar | 1,451 | - | |||||||||||||
New Zealand Dollar | 1,200 | 1,137 | |||||||||||||
Norwegian Krone | 551 | - | |||||||||||||
Total notional value, net | $ | 223,975 | $ | 143,116 | |||||||||||
Latest maturity date | Dec-15 | Dec-15 | |||||||||||||
Schedule of Derivative Instrument Gain (Loss) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
($ thousands) | 2013 | 2012 | 2013 | 2012 | Location of (Gain) Loss Recognized in Income on Derivatives | ||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Foreign currency exchange forwards | $ | 2,588 | $ | 2,793 | $ | -8,064 | $ | 4,977 | Foreign currency transaction (gains) losses, net | ||||||
Bank_Borrowings_and_Capital_Le1
Bank Borrowings and Capital Lease Obligations (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Bank Borrowings And Capital Lease Obligations [Abstract] | |||||||
Bank Borrowings And Capital Lease Obligations | September 30, | December 31, | |||||
($ thousands) | 2013 | 2012 | |||||
Bank borrowings(1) | $ | 13,529 | $ | 6,582 | |||
Capital lease obligations for equipment bearing interest rates ranging from 5.3% to 73.3% and maturities through 2016 | 78 | 53 | |||||
Total bank borrowings and capital lease obligations | $ | 13,607 | $ | 6,635 | |||
(1)Bank borrowings represent the outstanding debt balance related to four separate notes payable issued by PNC Equipment Finance, LLC (“PNC”) for our new ERP implementation. The notes bear interest rates ranging from 2.45% to 2.79% and maturities ranging from September 2016 to June 2017. Interest rates and payment terms are subject to change as further financing occurs. | |||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Stock Based Compensation [Abstract] | |||||||||||||||||||||
Schedule Of Stock Options | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Options | Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | |||||||||||||
Outstanding at June 30, 2013 and 2012, respectively, and December 31, 2012 and 2011, respectively | 2,370,085 | $ | 13.42 | 2,974,613 | $ | 12.48 | 2,621,686 | $ | 13.03 | 3,331,031 | $ | 11.91 | |||||||||
Granted | 10,000 | 13.52 | 69,500 | 17.19 | 167,000 | 15.75 | 183,400 | 17.18 | |||||||||||||
Exercised | -87,730 | 6.59 | -257,570 | 7.10 | -291,820 | 6.91 | -543,014 | 6.18 | |||||||||||||
Forfeited or expired | -63,089 | 20.18 | -55,886 | 17.13 | -267,600 | 17.59 | -240,760 | 16.42 | |||||||||||||
Outstanding at September 30 | 2,229,266 | $ | 13.50 | 2,730,657 | $ | 13.01 | 2,229,266 | $ | 13.50 | 2,730,657 | $ | 13.01 | |||||||||
Schedule of Restricted Stock Awards | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Restricted Stock Awards | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||
Outstanding at June 30, 2013 and 2012, respectively, and December 31, 2012 and 2011, respectively | 288,087 | $ | 13.32 | 383,410 | $ | 13.53 | 355,509 | $ | 13.37 | 571,175 | $ | 11.87 | |||||||||
Granted | - | - | - | - | 21,590 | 16.56 | 18,813 | 16.48 | |||||||||||||
Vested | -5,396 | 16.56 | -7,600 | 16.77 | -83,608 | 14.70 | -187,078 | 9.04 | |||||||||||||
Forfeited or expired | -15,000 | 14.34 | -5,100 | 12.51 | -25,800 | 13.57 | -32,200 | 12.51 | |||||||||||||
Outstanding at September 30 | 267,691 | $ | 13.20 | 370,710 | $ | 13.47 | 267,691 | $ | 13.20 | 370,710 | $ | 13.47 | |||||||||
Schedule Of Restricted Stock Units | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Restricted Stock Units | Units | Weighted Average Grant Date Fair Value | Units | Weighted Average Grant Date Fair Value | Units | Weighted Average Grant Date Fair Value | Units | Weighted Average Grant Date Fair Value | |||||||||||||
Outstanding at June 30, 2013 and 2012, respectively, and December 31, 2012 and 2011, respectively | 2,456,014 | $ | 16.72 | 1,465,715 | $ | 21.00 | 1,414,661 | $ | 20.61 | 711,980 | $ | 23.43 | |||||||||
Granted | 26,500 | 13.52 | 59,500 | 17.19 | 1,589,614 | 15.01 | 948,059 | 19.28 | |||||||||||||
Vested | -8,231 | 24.17 | -7,984 | 26.81 | -295,215 | 22.32 | -113,225 | 24.65 | |||||||||||||
Forfeited or expired | -90,285 | 18.08 | -29,996 | 19.19 | -325,062 | 21.10 | -59,579 | 20.22 | |||||||||||||
Outstanding at September 30 | 2,383,998 | $ | 16.59 | 1,487,235 | $ | 20.86 | 2,383,998 | $ | 16.59 | 1,487,235 | $ | 20.86 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share Summary | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
($ thousands, except share and per share data) | 2013 | 2012 | 2013 | 2012 | |||||||||
Numerator | |||||||||||||
Net income attributable to common stockholders | $ | 13,036 | $ | 45,080 | $ | 77,353 | $ | 134,950 | |||||
Less: income allocated to participating securities | -41 | -188 | -276 | -702 | |||||||||
Net income attributable to common stockholders - basic and diluted | $ | 12,995 | $ | 44,892 | $ | 77,077 | $ | 134,248 | |||||
Denominator | |||||||||||||
Weighted average common shares outstanding - basic | 88,109,088 | 89,947,641 | 87,919,351 | 89,592,430 | |||||||||
Plus: dilutive effect of stock options and unvested restricted stock units | 798,725 | 902,313 | 970,970 | 1,079,586 | |||||||||
Weighted average common shares outstanding - diluted | 88,907,813 | 90,849,954 | 88,890,321 | 90,672,016 | |||||||||
Net income attributable per common share: | |||||||||||||
Basic | $ | 0.15 | $ | 0.50 | $ | 0.88 | $ | 1.50 | |||||
Diluted | $ | 0.15 | $ | 0.49 | $ | 0.87 | $ | 1.48 | |||||
Commitments_Contingencies_Tabl
Commitments & Contingencies (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Commitments & Contingencies [Abstract] | |||||||||||||
Schedule of rent expense | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Minimum rentals | $ | 26,047 | $ | 21,458 | $ | 75,093 | $ | 61,177 | |||||
Contingent rentals | 5,596 | 4,864 | 15,240 | 13,610 | |||||||||
Less: Sublease rentals | -158 | -228 | -469 | -667 | |||||||||
Total rent expense | $ | 31,485 | $ | 26,094 | $ | 89,864 | $ | 74,120 | |||||
Operating_Segments_and_Geograp1
Operating Segments and Geographic Information (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Operating Segments And Geographic Information [Abstract] | |||||||||||||
Schedule of Segment Income Statement | Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | ||||||||||||
($ thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||
Revenues: | |||||||||||||
Americas | $ | 116,194 | $ | 131,948 | $ | 391,878 | $ | 383,866 | |||||
Asia Pacific | 79,406 | 72,964 | 281,695 | 232,240 | |||||||||
Japan | 38,984 | 50,731 | 114,815 | 140,336 | |||||||||
Europe | 53,903 | 39,765 | 175,419 | 141,534 | |||||||||
Total segment revenues | 288,487 | 295,408 | 963,807 | 897,976 | |||||||||
Other businesses | 37 | 161 | 200 | 333 | |||||||||
Total consolidated revenues | $ | 288,524 | $ | 295,569 | $ | 964,007 | $ | 898,309 | |||||
Operating income: | |||||||||||||
Americas(1) | $ | 17,969 | $ | 27,610 | $ | 61,787 | $ | 77,299 | |||||
Asia Pacific | 13,690 | 18,014 | 76,478 | 65,488 | |||||||||
Japan | 11,656 | 20,999 | 36,679 | 61,666 | |||||||||
Europe | 6,860 | 1,351 | 31,188 | 27,730 | |||||||||
Total segment operating income | 50,175 | 67,974 | 206,132 | 232,183 | |||||||||
Reconciliation of total segment operating income to income before income taxes: | |||||||||||||
Other businesses | -5,495 | -2,690 | -14,907 | -8,598 | |||||||||
Intersegment eliminations | 15 | 15 | 45 | 54 | |||||||||
Unallocated corporate and other(2) | -26,788 | -25,285 | -85,294 | -72,568 | |||||||||
Total consolidated operating income | 17,907 | 40,014 | 105,976 | 151,071 | |||||||||
Foreign currency transaction losses, net | 1,043 | 21 | 4,457 | 2,670 | |||||||||
Interest income | -853 | -151 | -1,676 | -1,057 | |||||||||
Interest expense | 44 | 377 | 519 | 556 | |||||||||
Other (income) expense, net | 13 | 71 | 180 | -690 | |||||||||
Income before income taxes | $ | 17,660 | $ | 39,696 | $ | 102,496 | $ | 149,592 | |||||
Depreciation and amortization: | |||||||||||||
Americas | $ | 2,690 | $ | 2,347 | $ | 7,663 | $ | 7,530 | |||||
Asia Pacific | 1,244 | 1,256 | 3,722 | 3,557 | |||||||||
Japan | 346 | 575 | 1,122 | 1,474 | |||||||||
Europe | 1,367 | 787 | 3,798 | 2,079 | |||||||||
Total segment depreciation and amortization | 5,647 | 4,965 | 16,305 | 14,640 | |||||||||
Other businesses | 2,045 | 1,704 | 6,285 | 4,765 | |||||||||
Unallocated corporate and other(2) | 2,953 | 2,890 | 8,577 | 7,410 | |||||||||
Total consolidated depreciation and amortization | $ | 10,645 | $ | 9,559 | $ | 31,167 | $ | 26,815 | |||||
(1)Includes $0.2 million and $0.8 million for the nine months ended September 30, 2013 and 2012, respectively, of asset impairment charges related to certain underperforming retail locations. | |||||||||||||
(2)Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, depreciation and amortization of corporate and other assets not allocated to operating segments and costs of the same nature related to certain corporate holding companies. | |||||||||||||
Schedule of Segment Balance Sheet | September 30, | December 31, | |||||||||||
($ thousands) | 2013 | 2012 | |||||||||||
Assets: | |||||||||||||
Americas | $ | 132,960 | $ | 143,236 | |||||||||
Asia Pacific | 211,789 | 170,426 | |||||||||||
Japan | 88,130 | 111,785 | |||||||||||
Europe | 165,013 | 85,756 | |||||||||||
Total segment current assets | 597,892 | 511,203 | |||||||||||
Other businesses | 16,977 | 14,489 | |||||||||||
Unallocated corporate and other(1) | 13,819 | 25,738 | |||||||||||
Deferred tax assets, net | 5,647 | 6,284 | |||||||||||
Income tax receivable | 16,666 | 5,613 | |||||||||||
Other receivables | 17,201 | 24,821 | |||||||||||
Prepaid expenses and other current assets | 30,869 | 24,967 | |||||||||||
Total current assets | 699,071 | 613,115 | |||||||||||
Property and equipment, net | 94,233 | 82,241 | |||||||||||
Intangible assets, net | 69,081 | 59,931 | |||||||||||
Deferred tax assets, net | 33,529 | 34,112 | |||||||||||
Other assets | 50,672 | 40,239 | |||||||||||
Total consolidated assets | $ | 946,586 | $ | 829,638 | |||||||||
(1)Corporate assets primarily consist of cash and equivalents. | |||||||||||||
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ||
Finished goods | $165,468 | $155,833 |
Work-in-progress | 853 | 911 |
Raw materials | 9,797 | 8,060 |
Inventories | $176,118 | $164,804 |
Property_Equipment_Summary_Det
Property & Equipment Summary (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Property And Equipment [Abstract] | |
Gross capital expenditures related to property and equipment | $30.90 |
Property_Equipment_Depreciatio
Property & Equipment Depreciation Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Property And Equipment [Abstract] | ||||
Depreciation Expense | $6.20 | $5.80 | $18.20 | $17.20 |
Depreciation Expense Recorded in Cost of Sales | $0.70 | $1.10 | $2.30 | $3.70 |
Property_Equipment_Asset_Impai
Property & Equipment Asset Impairment (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Tangible Asset Impairmeent Charges [Abstract] | ||
Asset impairment | $202 | $819 |
Summary_Of_Goodwill_Intangible
Summary Of Goodwill & Intangible Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | $128,170,000 | $106,258,000 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -61,982,000 | -49,169,000 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | 66,188,000 | 57,089,000 | ||
Indefinite lived intangible assets | 102,000 | 113,000 | ||
Goodwill | 2,791,000 | 2,729,000 | ||
Gross Carrying Amount, Total Intangible Assets | 131,063,000 | 109,100,000 | ||
Net Carrying Amount, Total Intangible Assets | 69,081,000 | 59,931,000 | ||
Gross Capitalized Software Held Under Capital Lease | 4,100,000 | 4,100,000 | ||
Amortization of Capitalized Software Held Under Capital Lease | 1,800,000 | 1,300,000 | ||
Capitalized Software [Member] | ||||
Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | 108,586,000 | [1] | 87,426,000 | [1] |
Accumulated Amortization, Finite-Lived Intangible Assets | -45,840,000 | [2] | -33,933,000 | [2] |
Net Carrying Amount, Finite-Lived Intangible Assets | 62,746,000 | 53,493,000 | ||
Customer Relationships [Member] | ||||
Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | 6,930,000 | 7,145,000 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -6,372,000 | -6,222,000 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | 558,000 | 923,000 | ||
Patents, copyrights and trademarks [Member] | ||||
Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | 6,453,000 | 6,161,000 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -3,946,000 | -3,522,000 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | 2,507,000 | 2,639,000 | ||
Core technology [Member] | ||||
Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | 4,698,000 | 4,856,000 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -4,698,000 | -4,856,000 | ||
Other [Member] | ||||
Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | 1,503,000 | 670,000 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -1,126,000 | -636,000 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | $377,000 | $34,000 | ||
[1] | Includes $4.1B million of software held under a capital lease classified as capitalized software as of September 30, 2013 and December 31, 2012. | |||
[2] | Includes $1.8B million and $1.3B million of accumulated amortization of software held under a capital lease as of September 30, 2013 and December 31, 2012, respectively, which is amortized using the straight-line method over the useful life. |
Goodwill_Intangible_Assets_Amo
Goodwill & Intangible Assets Amortization Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill & Intangible Assets [Abstract] | ||||
Amortization Expense | $4.40 | $3.80 | $13 | $9.60 |
Amortization Expense Recorded in Cost of Sales | $1.60 | $1 | $4.70 | $2.70 |
Goodwill_Intangible_Assets_Fut
Goodwill & Intangible Assets Future Amortization Schedule (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill & Intangible Assets [Abstract] | ||
Remainder of 2013 | $8,814 | |
2014 | 12,899 | |
2015 | 12,825 | |
2016 | 12,781 | |
2017 | 9,285 | |
Thereafter | 9,584 | |
Net Carrying Amount, Finite-Lived Intangible Assets | $66,188 | $57,089 |
Summary_of_Accrued_Expenses_an
Summary of Accrued Expenses and Other Current Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Accrued Expenses And Other Current Liabilities [Abstract] | ||||
Accrued compensation and benefits | $28,829 | $19,714 | ||
Professional services | 16,653 | 13,588 | ||
Sales/use and VAT tax payable | 15,051 | 12,444 | ||
Fulfillment, freight, and duties | 12,869 | 8,621 | ||
Accrued rent and occupancy | 10,710 | 10,226 | ||
Customer deposits | 6,222 | 2,593 | ||
Entrusted loan payable | 7,943 | [1] | ||
Other | 8,943 | [2] | 6,242 | [2] |
Total accrued expenses and other current liabilities | $99,277 | $81,371 | ||
[1] | A corresponding entrusted loan receivable of $7.9 million is recorded in bOther receivablesb as of December 31, 2012 as amounts are related to our subsidiaries in China. The entrusted loan was paid in full during the second quarter of 2013 and as such, the entrusted loan payable, and corresponding receivable, was removed from the condensed consolidated balance sheet as of September 30, 2013. | |||
[2] | The amounts in bOtherb consist of various accrued expenses and no individual item accounted for more than 5% of the total current liabilities balance at September 30, 2013 or December 31, 2012. |
Summary_of_Accrued_Expenses_an1
Summary of Accrued Expenses and Other Current Liabilities Footnote (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | item | item |
Accrued Expenses And Other Current Liabilities [Abstract] | ||
Entrusted Loan Receivable | $7.90 | |
Individual Items Accounting For More Than Five Percent Of Balance Of Accrued Expenses | 0 | 0 |
Percent Of Decision Point On Reporting Individual Items In Accrued Expenses | 5.00% | 5.00% |
Summary_of_Fair_Value_Measurem
Summary of Fair Value Measurements on a Recurring Basis (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash equivalents | $121,052 | $14,800 |
Derivative Assets | ||
Foreign currency contracts assets | 11,071 | 5,548 |
Derivative Liabilities | ||
Foreign currency contracts liabilities | 1,199 | 295 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash equivalents | 121,052 | 14,800 |
Level 2 [Member] | ||
Derivative Assets | ||
Foreign currency contracts assets | 11,071 | 5,548 |
Derivative Liabilities | ||
Foreign currency contracts liabilities | 1,199 | 295 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Cash equivalents | ||
Derivative Assets | ||
Foreign currency contracts assets | ||
Derivative Liabilities | ||
Foreign currency contracts liabilities |
Summary_of_Derivative_Financia
Summary of Derivative Financial Instruments Notional Amounts on Outstanding Positions (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Notional Amount of Derivatives [Abstract] | ||
Latest maturity date | 1-Dec-15 | 1-Dec-15 |
Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 223,975 | 143,116 |
Japanese Yen [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 73,584 | 112,500 |
Euro [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 48,063 | 5,159 |
Pound Sterling [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 24,653 | 8,742 |
Singapore Dollar [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 23,256 | |
Mexican Peso [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 18,700 | 11,400 |
Russian Ruble [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 11,892 | |
Australian Dollar [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 5,682 | 4,178 |
New Taiwan Dollar [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 4,353 | |
South African Rand [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 3,250 | |
South Korean Won [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 2,083 | |
Swedish Krona [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 1,959 | |
Canadian Dollar [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 1,698 | |
Indian Rupee [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 1,600 | |
Hong Kong Dollar [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 1,451 | |
New Zealand Dollar [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 1,200 | 1,137 |
Norwegian Krone [Member] | Forward Contracts [Member] | ||
Notional Amount of Derivatives [Abstract] | ||
Notional value, net | 551 |
Summary_of_GainLoss_on_Derivat
Summary of Gain/Loss on Derivative Instruments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Derivative Financial Instruments [Abstract] | ||||
Foreign currency transaction losses, net | $1,043,000 | $21,000 | $4,457,000 | $2,670,000 |
Gain/loss associated with foreign currency exchange forwards | 2,588,000 | 2,793,000 | -8,064,000 | 4,977,000 |
Foreign currency transaction gains/losses, gross | $1,600,000 | $2,800,000 | $12,600,000 | $2,300,000 |
Summary_of_Bank_Borrowings_and
Summary of Bank Borrowings and Capital Lease Obligations (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Debt Disclosure [Abstract] | ||||
Bank borrowings | $13,529 | [1] | $6,582 | [1] |
Capital lease obligations for equipment bearing interest rates ranging from 5.3% to 73.3% and maturities through 2016 | 78 | 53 | ||
Total bank borrowings and capital lease obligations | $13,607 | $6,635 | ||
[1] | Bank borrowings represent the outstanding debt balance related to four separate notes payable issued by PNC Equipment Finance, LLC (bPNCb) for our new ERP implementation. The notes bear interest rates ranging from 2.45% to 2.79% and maturities ranging from September 2016 to June 2017. Interest rates and payment terms are subject to change as further financing occurs. |
Summary_of_Bank_Borrowings_and1
Summary of Bank Borrowings and Capital Lease Obligations Additional Information (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Bank Borrowings And Capital Lease Obligations [Abstract] | ||
Capital Lease Minimum Interest Rate | 5.30% | 5.30% |
Capital Lease Maximum Interest Rate | 73.30% | 73.30% |
Capital Lease Latest Maturity Date | 2016 | 2016 |
Revolving_Credit_Facility_Deta
Revolving Credit Facility (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Line of Credit Facility [Abstract] | ||
Revolving credit facility | $0 | $0 |
Outstanding letters of credit | $7,200,000 | $6,400,000 |
ShareBased_Compensation_Expens
Share-Based Compensation Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Arrangements with Employees and Nonemployees [Abstract] | ||||
Share-based compensation expense | $3 | $2.80 | $10.50 | $9 |
Capitalized share-based compensation expense | $0.50 | $0 | $0.50 | $0 |
Stock_Option_Activity_Details
Stock Option Activity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | ||||
Stock Option Vesting Period | 4 years | |||
Shares outstanding at beginning of period | 2,370,085 | 2,974,613 | 2,621,686 | 3,331,031 |
Shares granted | 10,000 | 69,500 | 167,000 | 183,400 |
Shares exercised | -87,730 | -257,570 | -291,820 | -543,014 |
Shares forfeited or expired | -63,089 | -55,886 | -267,600 | -240,760 |
Shares outstanding at end of period | 2,229,266 | 2,730,657 | 2,229,266 | 2,730,657 |
Weighted average exercise price of options outstanding at beginning of period | $13.42 | $12.48 | $13.03 | $11.91 |
Weighted average exercise price of options granted | $13.52 | $17.19 | $15.75 | $17.18 |
Weighted average exercise price of options exercised | $6.59 | $7.10 | $6.91 | $6.18 |
Weighted average exercise price of options forfeited or expired | $20.18 | $17.13 | $17.59 | $16.42 |
Weighted average exercise price of options outstanding at end of period | $13.50 | $13.01 | $13.50 | $13.01 |
Restricted_Stock_Awards_and_Re
Restricted Stock Awards and Restricted Stock Units Description of Performance Incentive Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ||||
Vesting Period | 4 years | |||
Restricted Stock Units [Member] | ||||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ||||
Share grants approved in period | 1.6 | 0.9 | ||
Performance shares granted | 0.7 | 0.4 | ||
Share Based Payment Expense for RSUs Expected to Vest | $2.20 | $1.90 | $8.10 | $5.10 |
Restricted Stock Awards and Restricted Stock Units [Member] | ||||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ||||
Vesting terms of RSUs and RSAs | Half of these performance incentive program grants vest ratably on each of the first three anniversaries of the grant date; 25% will vest upon achievement of certain performance metrics; and the remaining 25% will vest one year from the date upon which certain performance metrics are achieved. If actual performance metrics exceed the targeted performance metrics by a predetermined amount, the executives are eligible to receive up to 200% of the performance-based portion of their award. | |||
Minimum [Member] | ||||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ||||
Vesting Period | 3 years | |||
Maximum [Member] | ||||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ||||
Vesting Period | 4 years |
Schedule_Of_Restricted_Stock_A
Schedule Of Restricted Stock Award and Restricted Stock Unit Activity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Restricted Stock Awards [Member] | ||||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ||||
Nonvested beginning balance | 288,087 | 383,410 | 355,509 | 571,175 |
Granted | 21,590 | 18,813 | ||
Vested | -5,396 | -7,600 | -83,608 | -187,078 |
Forfeited or expired | -15,000 | -5,100 | -25,800 | -32,200 |
Nonvested ending balance | 267,691 | 370,710 | 267,691 | 370,710 |
Weighted average grant date fair value beginning balance | $13.32 | $13.53 | $13.37 | $11.87 |
Weighted average grant date fair value of granted | $16.56 | $16.48 | ||
Weighted average grant date fair value of vested | $16.56 | $16.77 | $14.70 | $9.04 |
Weighted average grant date fair value of forfeited or expired | $14.34 | $12.51 | $13.57 | $12.51 |
Weighted average grant date fair value ending balance | $13.20 | $13.47 | $13.20 | $13.47 |
Restricted Stock Units [Member] | ||||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ||||
Nonvested beginning balance | 2,456,014 | 1,465,715 | 1,414,661 | 711,980 |
Granted | 26,500 | 59,500 | 1,589,614 | 948,059 |
Vested | -8,231 | -7,984 | -295,215 | -113,225 |
Forfeited or expired | -90,285 | -29,996 | -325,062 | -59,579 |
Nonvested ending balance | 2,383,998 | 1,487,235 | 2,383,998 | 1,487,235 |
Weighted average grant date fair value beginning balance | $16.72 | $21 | $20.61 | $23.43 |
Weighted average grant date fair value of granted | $13.52 | $17.19 | $15.01 | $19.28 |
Weighted average grant date fair value of vested | $24.17 | $26.81 | $22.32 | $24.65 |
Weighted average grant date fair value of forfeited or expired | $18.08 | $19.19 | $21.10 | $20.22 |
Weighted average grant date fair value ending balance | $16.59 | $20.86 | $16.59 | $20.86 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Income Tax Expense (Benefit) [Abstract] | |||||
Income tax expense (benefit) | $4,624,000 | ($5,384,000) | $25,143,000 | $14,642,000 | |
Income before taxes | 17,660,000 | 39,696,000 | 102,496,000 | 149,592,000 | |
Effective income tax rate | 26.20% | -13.60% | 24.60% | 9.80% | |
Unrecognized tax benefits | $28,000,000 | $28,000,000 | $31,900,000 |
Earnings_Per_Share_Summary_Det
Earnings Per Share Summary (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ||||
Net income | $13,036 | $45,080 | $77,353 | $134,950 |
Less: income allocated to participating securities | -41 | -188 | -276 | -702 |
Net income attributable to common stockholders - basic and diluted | $12,995 | $44,892 | $77,077 | $134,248 |
Weighted average common shares outstanding - basic | 88,109,088 | 89,947,641 | 87,919,351 | 89,592,430 |
Plus: dilutive effect of stock options and unvested restricted stock units | 798,725 | 902,313 | 970,970 | 1,079,586 |
Weighted average common shares outstanding - diluted | 88,907,813 | 90,849,954 | 88,890,321 | 90,672,016 |
Basic | $0.15 | $0.50 | $0.88 | $1.50 |
Diluted | $0.15 | $0.49 | $0.87 | $1.48 |
Anti-dilutive options and RSUs not included in the calculation of diluted income (loss) per share | 1,400,000 | 1,700,000 | 1,400,000 | 1,500,000 |
Stock_Repurchase_Program_Detai
Stock Repurchase Program (Details) (USD $) | Oct. 29, 2013 | Sep. 30, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Earnings Per Share [Abstract] | ||
Shares authorized for repurchase | 15 | |
Shares Repurchased | 0.8 | |
Weighted Average Price Of Shares Repurchased | $14.99 | |
Fair Value Of Shares Repurchased | $12.50 | |
Shares remaining for repurchase | 17.8 | 2.8 |
Operating_Lease_Rental_Expense
Operating Lease Rental Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Leases Rent Expense [Abstract] | ||||
Minimum rentals | $26,047 | $21,458 | $75,093 | $61,177 |
Contingent rentals | 5,596 | 4,864 | 15,240 | 13,610 |
Less: Sublease rentals | -158 | -228 | -469 | -667 |
Total rent expense | $31,485 | $26,094 | $89,864 | $74,120 |
Purchase_Commitments_Details
Purchase Commitments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Commitments & Contingencies [Abstract] | ||
Purchase commitments with third party manufacturers | $176.90 | $152.80 |
Purchase commitments of finished goods yet-to-be received | $5.90 |
Government_Tax_Audit_Details
Government Tax Audit (Details) (Brazilian Government [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Brazilian Government [Member] | |
Net Expense of Tax Examination | $6.10 |
Receivable related to Income Tax Examination | $3.50 |
Operating_Segments_and_Geograp2
Operating Segments and Geographic Information Income Statement (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | $288,524 | $295,569 | $964,007 | $898,309 | ||||
Income from operations | 17,907 | 40,014 | 105,976 | 151,071 | ||||
Interest income | -853 | -151 | -1,676 | -1,057 | ||||
Interest expense | 44 | 377 | 519 | 556 | ||||
Foreign currency transaction losses, net | 1,043 | 21 | 4,457 | 2,670 | ||||
Other (income) expense, net | 13 | 71 | 180 | -690 | ||||
Income before taxes | 17,660 | 39,696 | 102,496 | 149,592 | ||||
Depreciation and amortization | 10,645 | 9,559 | 31,167 | 26,815 | ||||
Americas [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 116,194 | 131,948 | 391,878 | 383,866 | ||||
Income from operations | 17,969 | [1] | 27,610 | [1] | 61,787 | [1] | 77,299 | [1] |
Depreciation and amortization | 2,690 | 2,347 | 7,663 | 7,530 | ||||
Asia Pacific [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 79,406 | 72,964 | 281,695 | 232,240 | ||||
Income from operations | 13,690 | 18,014 | 76,478 | 65,488 | ||||
Depreciation and amortization | 1,244 | 1,256 | 3,722 | 3,557 | ||||
Japan [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 38,984 | 50,731 | 114,815 | 140,336 | ||||
Income from operations | 11,656 | 20,999 | 36,679 | 61,666 | ||||
Depreciation and amortization | 346 | 575 | 1,122 | 1,474 | ||||
Europe [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 53,903 | 39,765 | 175,419 | 141,534 | ||||
Income from operations | 6,860 | 1,351 | 31,188 | 27,730 | ||||
Depreciation and amortization | 1,367 | 787 | 3,798 | 2,079 | ||||
Total Segment Revenues [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 288,487 | 295,408 | 963,807 | 897,976 | ||||
Total Segment Operating Income [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Income from operations | 50,175 | 67,974 | 206,132 | 232,183 | ||||
Total Segment Depreciation And Amortization [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Depreciation and amortization | 5,647 | 4,965 | 16,305 | 14,640 | ||||
Other businesses [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 37 | 161 | 200 | 333 | ||||
Income from operations | -5,495 | -2,690 | -14,907 | -8,598 | ||||
Depreciation and amortization | 2,045 | 1,704 | 6,285 | 4,765 | ||||
Intersegment eliminations [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Income from operations | 15 | 15 | 45 | 54 | ||||
Unallocated corporate and other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Income from operations | -26,788 | [2] | -25,285 | [2] | -85,294 | [2] | -72,568 | [2] |
Depreciation and amortization | $2,953 | [2] | $2,890 | [2] | $8,577 | [2] | $7,410 | [2] |
[1] | Includes $0.2 million and $0.8 million for the nine months ended September 30, 2013 and 2012, respectively, of asset impairment charges related to certain underperforming retail locations. | |||||||
[2] | Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, depreciation and amortization of corporate and other assets not allocated to operating segments and costs of the same nature related to certain corporate holding companies. |
Operating_Segments_and_Geograp3
Operating Segments and Geographic Information Income Statement Footnote (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
Americas [Member] | Americas [Member] | |||
Segment Reporting Information [Line Items] | ||||
Asset impairment | $202 | $819 | $200 | $200 |
Operating_Segments_and_Geograp4
Operating Segments and Geographic Information Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ||||
Total current deferred tax assets | $5,647 | $6,284 | ||
Income tax receivable | 16,666 | 5,613 | ||
Other receivables | 17,201 | 24,821 | ||
Prepaid expenses and other current assets | 30,869 | 24,967 | ||
Total current assets | 699,071 | 613,115 | ||
Property and equipment, net | 94,233 | 82,241 | ||
Intangible assets, net | 69,081 | 59,931 | ||
Total non-current deferred tax assets | 33,529 | 34,112 | ||
Other assets | 50,672 | 40,239 | ||
Total assets | 946,586 | 829,638 | ||
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total current assets | 132,960 | 143,236 | ||
Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total current assets | 211,789 | 170,426 | ||
Japan [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total current assets | 88,130 | 111,785 | ||
Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total current assets | 165,013 | 85,756 | ||
Total Segment Current Assets [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total current assets | 597,892 | 511,203 | ||
Other businesses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total current assets | 16,977 | 14,489 | ||
Unallocated corporate and other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total current assets | $13,819 | [1] | $25,738 | [1] |
[1] | Corporate assets primarily consist of cash and equivalents. |
Operating_Segments_and_Geograp5
Operating Segments and Geographic Information General (Details) | 9 Months Ended |
Sep. 30, 2013 | |
segment | |
Operating Segments And Geographic Information [Abstract] | |
Number of Reportable Segments | 4 |
Legal_Tax_Proceedings_Details
Legal Tax Proceedings (Details) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Mexican Federal Tax Authority [Member] | Mexican Federal Tax Authority [Member] | U.S. Customs and Border Protection [Member] | |
USD ($) | MXN | USD ($) | |
Income Tax Examination [Line Items] | |||
Unpaid duties | $12.40 | ||
Preliminary unpaid duties | 14.3 | ||
Penalties and interest assessed | 22 | 280 | |
Surety bond | $26 | 321 |
Legal_Proceedings_Details
Legal Proceedings (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Legal Proceedings [Abstract] | |
Legal Settlement Accrual | $6 |
Minimum Reasonably Possible Loss | 0 |
Maximum Reasonably Possible Loss | $10.20 |