Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 24, 2014 | |
Document And Entity Information[Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
Entity Registrant Name | 'Crocs, Inc. | ' |
Entity Central Index Key | '0001334036 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Common stock outstanding | ' | 82,496,973 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Consolidated Statements of Income [Abstract] | ' | ' | ' | ' |
Revenues | $302,401 | $288,524 | $991,750 | $964,007 |
Cost of sales | 146,801 | 134,943 | 475,323 | 443,710 |
Restructuring charges (Note 6) | 583 | ' | 2,612 | ' |
Gross profit | 155,017 | 153,581 | 513,815 | 520,297 |
Selling, general and administrative expenses | 143,719 | 135,674 | 434,244 | 414,119 |
Restructuring charges (Note 6) | 7,585 | ' | 13,895 | ' |
Asset impairment charges (Note 3) | 2,600 | ' | 5,830 | 202 |
Income from operations | 1,113 | 17,907 | 59,846 | 105,976 |
Foreign currency transaction losses, net | 1,290 | 1,043 | 4,278 | 4,457 |
Interest income | -424 | -853 | -1,304 | -1,676 |
Interest expense | 366 | 44 | 685 | 519 |
Other (income) expense, net | -217 | 13 | -388 | 180 |
Income before income taxes | 98 | 17,660 | 56,575 | 102,496 |
Income tax (benefit) expense | -15,669 | 4,624 | 8,407 | 25,143 |
Net income | 15,767 | 13,036 | 48,168 | 77,353 |
Dividends on Series A convertibles preferred shares (Note 13) | 3,067 | ' | 8,233 | ' |
Dividend equivalents on Series A convertible preferred shares related to redemption value accretion and beneficial conversion feature (Note 13) | 691 | ' | 2,030 | ' |
Net income attributable to common stockholders | $12,009 | $13,036 | $37,905 | $77,353 |
Net income per common share (Note 12): | ' | ' | ' | ' |
Basic | $0.12 | $0.15 | $0.38 | $0.88 |
Diluted | $0.12 | $0.15 | $0.37 | $0.87 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ' | ' | ' | ' |
Net income | $15,767 | $13,036 | $48,168 | $77,353 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation | -18,891 | 6,030 | -19,650 | -4,537 |
Reclassification of cumulative foreign exchange translation adjustments to net income, net of tax of $0, $0, $0 and $(3), respectively | ' | ' | ' | 299 |
Total comprehensive income (loss) | ($3,124) | $19,066 | $28,518 | $73,115 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ' | ' | ' | ' |
Tax Effect of Foreign Currency Translation Adjustment | $0 | $0 | $0 | ($3) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $350,371 | $317,144 |
Accounts receivable, net of allowances of $21,001 and $10,513, respectively | 158,664 | 104,405 |
Inventories | 202,819 | 162,341 |
Deferred tax assets, net | 4,278 | 4,440 |
Income tax receivable | 19,677 | 10,630 |
Other receivables | 17,196 | 11,942 |
Prepaid expenses and other current assets | 36,717 | 29,175 |
Total current assets | 789,722 | 640,077 |
Property and equipment, net | 73,575 | 86,971 |
Intangible assets, net | 89,599 | 72,315 |
Goodwill | 2,235 | 2,507 |
Deferred tax assets, net | 17,581 | 19,628 |
Other assets | 34,220 | 53,661 |
Total assets | 1,006,932 | 875,159 |
Current liabilities: | ' | ' |
Accounts payable | 66,133 | 57,450 |
Accrued expenses and other current liabilities | 105,142 | 97,111 |
Deferred tax liabilities, net | 11,129 | 11,199 |
Acrrued restructuring | 3,435 | ' |
Income taxes payable | 29,218 | 15,992 |
Current portion of long-term borrowings and capital lease obligations | 5,259 | 5,176 |
Total current liabilities | 220,316 | 186,928 |
Long term income tax payable | 14,632 | 36,616 |
Long-term borrowings and capital lease obligations | 7,714 | 11,670 |
Long-term accrued restructuring | 310 | ' |
Other liabilities | 15,685 | 15,201 |
Total liabilities | 258,657 | 250,415 |
Commitments and contingencies (Note 14) | ' | ' |
Series A convertible preferred shares, par value $0.001 per share, 200,000 shares issued and outstanding, redemption amount and liquidation preference of $203,067 and $0 at September 30, 2014 and December 31, 2013, respectively (Note 13) | 171,973 | ' |
Stockholders' equity: | ' | ' |
Preferred stock, par value $0.001 per share, 5,000,000 shares authorized, none outstanding | ' | ' |
Common stock, par value $0.001 per share, 250,000,000 shares authorized, 92,282,045 and 82,964,597 shares issued and outstanding, respectively, at September 30, 2014 and 91,662,656 and 88,450,203 shares issued and outstanding, respectively, at December 31, 2013 | 93 | 92 |
Treasury stock, at cost, 9,317,448 and 3,212,453 shares, respectively | -144,898 | -55,964 |
Additional paid-in capital | 343,768 | 321,532 |
Retained earnings | 382,337 | 344,432 |
Accumulated other comprehensive income | -4,998 | 14,652 |
Total stockholders' equity | 576,302 | 624,744 |
Total liabilities and stockholders' equity | $1,006,932 | $875,159 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets [Abstract] | ' | ' |
Allowances | $21,001 | $10,513 |
Series A preferred shares, par value | $0.00 | $0.00 |
Series A preferred shares, issued and outstanding | 200,000 | 200,000 |
Series A preferred shares, redemption value and liquidation preference | $203,067 | $0 |
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 | 92,282,045 | 91,662,656 |
Common shares, outstanding | 82,964,597 | 88,450,203 |
Treasury stock, shares | 9,317,448 | 3,212,453 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $48,168 | $77,353 |
Depreciation and amortization | 31,344 | 31,167 |
Unrealized (gain) loss on foreign exchange, net | -9,019 | 761 |
Asset impairment charges | 5,830 | 202 |
Provision for doubtful accounts, net | 9,129 | 1,420 |
Share based compensation | 10,473 | 9,987 |
Inventory write-down charges | 896 | ' |
Non-cash restructuring charges | 4,064 | ' |
Other non-cash items | -170 | 865 |
Accounts receivable | -67,358 | -31,783 |
Inventories | -49,544 | -15,030 |
Prepaid expenses and other assets | 5,073 | -8,645 |
Accounts payable | 10,152 | 2,388 |
Accrued expenses and other liabilities | 8,981 | 20,755 |
Accrued restructuring | 3,745 | ' |
Income taxes | -17,059 | 4,869 |
Cash provided by (used in) operating activities | -5,295 | 94,309 |
Cash flows from investing activities: | ' | ' |
Cash paid for purchases of property and equipment | -13,891 | -30,753 |
Proceeds from disposal of property and equipment | 174 | 551 |
Cash paid for intangible assets | -29,457 | -22,665 |
Restricted cash | -1,655 | -1,187 |
Cash used in investing activities | -44,829 | -54,054 |
Cash flows from financing activities: | ' | ' |
Proceeds from preferred stock offering, net of issuance costs of $15.8 million and $0.0 million, respectively | 182,220 | ' |
Dividends paid | -5,166 | ' |
Proceeds from bank borrowings | ' | 18,568 |
Repayment of bank borrowings and capital lease obligations | -3,872 | -11,654 |
Deferred debt issuance costs | -75 | ' |
Issuances of common stock | 1,300 | 2,017 |
Purchase of treasury stock | -90,093 | -12,533 |
Repurchase of common stock for tax withholding | -787 | -256 |
Cash provided by (used in) financing activities | 83,527 | -3,858 |
Effect of exchange rate changes on cash | -176 | 1,746 |
Net increase in cash and cash equivalents | 33,227 | 38,143 |
Cash and cash equivalents - beginning of period | 317,144 | 294,348 |
Cash and cash equivalents - end of period | 350,371 | 332,491 |
Supplemental disclosure of cash flow information-cash paid during the period for: | ' | ' |
Interest | 358 | 719 |
Income taxes | 30,114 | 17,134 |
Supplemental disclosure of non-cash, investing, and financing activities: | ' | ' |
Assets acquired under capitalized leases | ' | 61 |
Accrued purchases of property and equipment | 663 | 2,493 |
Accrued purchases of intangibles | 6,050 | 209 |
Accrued dividends | 3,067 | ' |
Accretion of dividend equivalents | $2,030 | ' |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Consolidated Statements Of Cash Flows [Abstract] | ' | ' |
Series A preferred share issuance costs | $15.80 | $0 |
General
General | 9 Months Ended | |||
Sep. 30, 2014 | ||||
General [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 | ||||
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. The condensed consolidated balance sheet as of December 31, 2013 was derived from the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (the “2013 Form 10-K”). 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. | ||||
Reclassifications | ||||
Certain prior period amounts on the condensed consolidated financial statements have been reclassified to conform to current period presentation. We segregated $2.0 million in restructuring charges recorded to cost of sales on the condensed consolidated statements of income and inventory write-down charges on the condensed consolidated statements of cash flows during the three months ended June 30, 2014 to the restructuring charges line item in cost of sales on the condensed consolidated statements of income during the nine months ended September 30, 2014. In addition, we reclassified $0.2 million of asset impairment charges recorded to other non-cash items on the condensed consolidated statements of cash flows during the nine months ended September 30, 2013 to the asset impairment charges line item on the condensed consolidated statements of cash flows during the nine months ended September 30, 2013 to conform to the current year presentation. These reclassifications had no effect on income from operations or cash provided by (used in) operating activities. | ||||
Summary of Significant Accounting Policies | ||||
These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes included in the 2013 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 & Summary of Significant Accounting Policies to the consolidated financial statements in the 2013 Form 10-K. | ||||
Earnings per share - Basic and diluted earnings per common share (“EPS”) is presented using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividend rights and participation rights in undistributed earnings. Under the two-class method, EPS is computed by dividing the sum of distributed and undistributed earnings attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. A participating security is a security that may participate in undistributed earnings with common stock had those earnings been distributed in any form. Our recently issued Series A convertible preferred stock (“Series A preferred stock”) represents participating securities as holders of the Series A preferred stock are entitled to receive any and all dividends declared or paid on common stock on an as-converted basis. In addition, shares of our non-vested restricted stock awards are considered participating securities as they represent unvested share-based payment awards containing non-forfeitable rights to dividends. As such, these participating securities must be included in the computation of EPS pursuant to the two-class method on a pro-rata, as-converted basis. Diluted EPS reflects the potential dilution from securities that could share in our earnings. In addition, the dilutive effect of each participating security is calculated using the more dilutive of the two-class method described above, which assumes that the securities remain in their current form, or the if-converted method, which assumes conversion to common stock as of the beginning of the reporting date. Anti-dilutive securities are excluded from diluted EPS. See Note 12—Earnings Per Share for further discussion. | ||||
Beneficial conversion feature – The issuance of our Series A preferred stock generated a beneficial conversion feature, which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor or in the money at inception because the conversion option has an effective strike price that is less than the market price of the underlying stock at the commitment date. We recognized the beneficial conversion feature by allocating the intrinsic value of the conversion option, which is the number of shares of common stock available upon conversion multiplied by the difference between the effective conversion price per share and the fair value of common stock per share on the commitment date, to additional paid-in capital, resulting in a discount on the Series A preferred stock. We are accreting the discount over eight years from the date of issuance through the redemption date. Accretion expense will be recognized as dividend equivalents over the eight year period utilizing the effective interest method. | ||||
Recently Adopted Accounting Standards | ||||
Discontinued Operations | ||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08: Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends the definition of a discontinued operation in ASC 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. The FASB issued the ASU to provide more decision-useful information and to make it more difficult for a disposal transaction to qualify as a discontinued operation. Under the previous guidance, the results of operations of a component of an entity were classified as a discontinued operation if all of the following conditions were met: | ||||
· | The component has been disposed of or is classified as held for sale. | |||
· | The operations and cash flows of the component have been (or will be) eliminated from the ongoing operations of the entity as a result of the disposal transaction. | |||
· | The entity will not have any significant continuing involvement in the operations of the component after the disposal transaction. | |||
The new guidance eliminates the second and third criteria above and instead requires discontinued operations treatment for disposals of a component or group of components that represents a strategic shift that has or will have a major impact on an entity’s operations or financial results. The ASU also expands the scope of ASC 205-20 to disposals of equity method investments and businesses that, upon initial acquisition, qualify as held for sale. In addition, the ASU requires entities to reclassify assets and liabilities of a discontinued operation for all comparative periods presented in the statement of financial position. Before these amendments, ASC 205-20 neither required nor prohibited such presentation. Regarding the statement of cash flows, an entity must disclose, in all periods presented, either (1) operating and investing cash flows or (2) depreciation and amortization, capital expenditures, and significant operating and investing noncash items related to the discontinued operation. This presentation requirement represents a significant change from previous guidance. This ASU is effective prospectively for all disposals or components initially classified as held for sale in periods beginning on or after December 15, 2014. Early adoption is permitted. The adoption of this pronouncement did not have a material impact to the Company’s consolidated financial statements. | ||||
Recently Issued Accounting Standards | ||||
Going Concern | ||||
On August 27, 2014, the FASB issued ASU 2014-15, which provides guidance on determining when and how reporting entities must disclose going concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements (or within one year after the date on which the financial statements are available to be issued, when applicable). Further, an entity must provide certain disclosures if there is “substantial doubt about the entity’s ability to continue as a going concern. | ||||
The FASB believes that requiring management to perform the assessment will enhance the timeliness, clarity and consistency of related disclosures and improve convergence with IFRSs (which emphasize management’s responsibility for performing the going concern assessment). However, the time horizon for the assessment (look-forward period) and the disclosure thresholds under U.S. GAAP and IFRSs will continue to differ. This ASU is effective for annual periods ending after December 16, 2016, and interim periods thereafter; early adoption is permitted. The Company does not believe that this pronouncement will have a material impact to the Company’s consolidated financial statements. | ||||
Share-Based Payment | ||||
On June 19, 2014, the FASB issued ASU 2014-12 in response to the EITF consensus on Issue 13-D. The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. This ASU is effective for all entities for reporting periods (including interim periods) beginning after December 15, 2015. The Company does not believe that this pronouncement will have a material impact to the Company’s consolidated financial statements. | ||||
Revenue Recognition | ||||
In May 2014, the FASB issued their final standard on revenue from contracts with customers. The standard, issued as ASU No. 2014-09: Revenue from Contracts with Customers (Topic 606) by the FASB, outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In applying the revenue model to contracts within its scope, an entity: | ||||
· Identifies the contract(s) with a customer (Step 1) | ||||
· Identifies the performance obligations in the contract (Step 2) | ||||
· Determines the transaction price (Step 3) | ||||
· Allocates the transaction price to the performance obligations in the contract (Step 4) | ||||
· Recognizes revenue when (or as) the entity satisfies a performance obligation (Step 5) | ||||
The ASU applies to all contracts with customers except those that are within the scope of other topics in the FASB Accounting Standards Codification. Certain of the ASU’s provisions also apply to transfers of nonfinancial assets, including in-substance nonfinancial assets that are not an output of an entity’s ordinary activities (e.g., sales of property, plant, and equipment, real estate or intangible assets). Existing accounting guidance applicable to these transfers has been amended or superseded. Compared with current U.S. GAAP, the ASU also requires significantly expanded disclosures about revenue recognition. | ||||
The ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. Early application is not permitted. The Company is currently evaluating the impact that this pronouncement will have on the Company’s consolidated financial statements. | ||||
Inventories
Inventories | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Inventories [Abstract] | ' | ||||||
Inventories | ' | ||||||
2. INVENTORIES | |||||||
The following table summarizes inventories by major classification as of September 30, 2014 and December 31, 2013: | |||||||
($ thousands) | 30-Sep-14 | 31-Dec-13 | |||||
Finished goods | $ | 197,213 | $ | 154,272 | |||
Work-in-progress | 289 | 685 | |||||
Raw materials | 5,317 | 7,384 | |||||
Inventories | $ | 202,819 | $ | 162,341 | |||
Inventory Write-down | |||||||
During the three and nine months ended September 30, 2014, we recorded $1.5 million and $3.5 million, respectively, of inventory write-down charges related to obsolete inventory with a market value lower than cost, of which $0.6 million and $2.6 million, respectively, have been reported to restructuring charges, with the remaining amounts reported in cost of sales in the condensed consolidated statements of income. These charges were related to certain obsolete footwear in our Americas operating segment as well as Corporate. | |||||||
Property_Equipment
Property & Equipment | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Property & Equipment [Abstract] | ' | ||||||||||||||||||||
Property & Equipment | ' | ||||||||||||||||||||
3. PROPERTY & EQUIPMENT | |||||||||||||||||||||
The following table summarizes property and equipment by major classification as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||
($ thousands) | 2014 | 2013 | |||||||||||||||||||
Machinery and equipment | $ | 52,737 | $ | 52,003 | |||||||||||||||||
Leasehold improvements | 97,697 | 93,235 | |||||||||||||||||||
Furniture, fixtures and other | 26,396 | 23,653 | |||||||||||||||||||
Construction-in-progress | 4,012 | 16,231 | |||||||||||||||||||
Property and equipment, gross (1) | 180,842 | 185,122 | |||||||||||||||||||
Less: Accumulated depreciation (2) | -107,267 | -98,151 | |||||||||||||||||||
Property and equipment, net | $ | 73,575 | $ | 86,971 | |||||||||||||||||
(1)Includes $0.1 million and $0.1 million of certain equipment held under capital leases and classified as equipment as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||
(2)Includes $0.1 million and $0.1 million of accumulated depreciation related to certain equipment held under capital leases as of September 30, 2014 and December 31, 2013, respectively, which are depreciated using the straight-line method over the lease term. | |||||||||||||||||||||
During the three months ended September 30, 2014 and 2013, we recorded $6.4 million and $6.2 million, respectively, in depreciation expense of which $0.5 million and $0.7 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. | |||||||||||||||||||||
During the nine months ended September 30, 2014 and 2013, we recorded $18.1 million and $18.2 million, respectively, in depreciation expense of which $1.4 million and $2.3 million, respectively, was recorded in cost of sales, with the remaining amounts recorded in selling, general and administrative expenses in the condensed consolidated statements of income. | |||||||||||||||||||||
Asset Impairments | |||||||||||||||||||||
We periodically evaluate all of our long-lived assets for impairment when events or circumstances would indicate the carrying value of a long-lived asset may not be fully recoverable. The following table summarizes retail asset impairment charges by reportable operating segment for the three and nine months ended September 30, 2014 and 2013 related to certain underperforming stores that were unlikely to generate sufficient cash flows to fully recover the carrying value of the stores’ assets over the remaining economic life of those assets: | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
($ thousands, except store count data) | Impairment charge | Number of stores | Impairment charge | Number of stores | Impairment charge | Number of stores | Impairment charge | Number of stores | |||||||||||||
Americas | $ | 1,994 | 10 | $ | - | - | $ | 3,238 | 26 | $ | 202 | 1 | |||||||||
Asia Pacific | 372 | 2 | - | - | 817 | 14 | - | - | |||||||||||||
Japan | - | - | - | - | - | - | - | - | |||||||||||||
Europe | 234 | 8 | - | - | 1,775 | 17 | - | - | |||||||||||||
Asset impairment charges | $ | 2,600 | 20 | $ | - | - | $ | 5,830 | 57 | $ | 202 | 1 | |||||||||
Goodwill_Intangible_Assets
Goodwill & Intangible Assets | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Goodwill & Intangible Assets [Abstract] | ' | ||||||||||||||||||
Goodwill & Intangible Assets | ' | ||||||||||||||||||
4. GOODWILL & INTANGIBLE ASSETS | |||||||||||||||||||
The following table summarizes the goodwill and identifiable intangible assets as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||
($ thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||
Capitalized software | $ | 149,303 | -1 | $ | -62,001 | -2 | $ | 87,302 | $ | 118,940 | -1 | $ | -49,665 | -2 | $ | 69,275 | |||
Customer relationships | 6,589 | -6,389 | 200 | 6,878 | -6,439 | 439 | |||||||||||||
Patents, copyrights, and trademarks | 6,530 | -4,847 | 1,683 | 6,501 | -4,272 | 2,229 | |||||||||||||
Core technology | 4,337 | -4,337 | - | 4,548 | -4,548 | - | |||||||||||||
Other | 701 | -637 | 64 | 983 | -709 | 274 | |||||||||||||
Total finite lived intangible assets | 167,460 | -78,211 | 89,249 | 137,850 | -65,633 | 72,217 | |||||||||||||
Indefinite lived intangible assets | 350 | - | 350 | 97 | - | 97 | |||||||||||||
Goodwill | 2,235 | - | 2,235 | 2,508 | - | 2,508 | |||||||||||||
Goodwill and intangible assets | $ | 170,045 | $ | -78,211 | $ | 91,834 | $ | 140,455 | $ | -65,633 | $ | 74,822 | |||||||
(1)Includes $4.1 million of software held under a capital lease classified as capitalized software as of September 30, 2014 and December 31, 2013. | |||||||||||||||||||
(2)Includes $2.4 million and $1.9 million of accumulated amortization of software held under a capital lease as of September 30, 2014 and December 31, 2013, respectively, which is amortized using the straight-line method over the useful life. | |||||||||||||||||||
During the three months ended September 30, 2014 and 2013, amortization expense recorded for intangible assets with finite lives was $4.2 million and $4.4 million, respectively, of which $1.6 million and $1.6 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, 2014 and 2013, amortization expense recorded for intangible assets with finite lives was $13.2 million and $13.0 million, respectively, of which $4.7 million and $4.7 million, respectively, was recorded in cost of sales, with the remaining amounts recorded in selling, general and administrative expenses in the condensed consolidated statements of income. | |||||||||||||||||||
The following table summarizes estimated future annual amortization of intangible assets as of September 30, 2014: | |||||||||||||||||||
Amortization | |||||||||||||||||||
Fiscal years ending December 31, | ($ thousands) | ||||||||||||||||||
Remainder of 2014 | $ | 2,936 | |||||||||||||||||
2015 | 18,400 | ||||||||||||||||||
2016 | 16,649 | ||||||||||||||||||
2017 | 12,303 | ||||||||||||||||||
2018 | 10,725 | ||||||||||||||||||
Thereafter | 28,236 | ||||||||||||||||||
Total | $ | 89,249 | |||||||||||||||||
Accrued_Expenses_And_Other_Cur
Accrued Expenses And Other Current Liabilities | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
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, 2014 and December 31, 2013: | |||||||
September 30, | December 31, | ||||||
($ thousands) | 2014 | 2013 | |||||
Accrued compensation and benefits | $ | 29,399 | $ | 26,903 | |||
Professional services | 17,939 | 14,128 | |||||
Fulfillment, freight and duties | 15,839 | 12,565 | |||||
Sales/use and VAT tax payable | 13,558 | 9,142 | |||||
Accrued rent and occupancy | 9,512 | 12,198 | |||||
Customer deposits | 3,964 | 6,940 | |||||
Dividend payable | 3,067 | - | |||||
Accrued legal liabilities | 1,191 | 8,722 | |||||
Other (1) | 10,673 | 6,513 | |||||
Total accrued expenses and other current liabilities | $ | 105,142 | $ | 97,111 | |||
(1)The amounts in ‘Other’ consist of various accrued expenses and no individual item accounted for more than 5% of the total balance at September 30, 2014 or December 31, 2013. | |||||||
Restructuring_Activities
Restructuring Activities | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Restructuring Activities [Abstract] | ' | |||||||||||||||
Restructuring Activities | ' | |||||||||||||||
6. RESTRUCTURING ACTIVITIES | ||||||||||||||||
Restructuring | ||||||||||||||||
On July 21, 2014, we announced strategic plans for long-term improvement and growth of the business. These plans comprise four key initiatives including: (1) streamlining the global product and marketing portfolio, (2) reducing direct investment in smaller geographic markets, (3) creating a more efficient organizational structure including reducing duplicative and excess overhead which will also enhance the decision making process, and (4) closing or converting approximately 75 to 100 retail locations around the world. The initial effects of these plans were incurred in the first quarter of 2014 and are expected to continue through 2015. The Company recorded restructuring charges of $8.2 million and $16.5 million during the three and nine months ended September 30, 2014, respectively. We are unable in good faith to determine the type of costs we will incur in connection with this strategic restructuring plan or to estimate the total amount or range of amounts expected to be incurred in connection with this plan for each major type of cost associated with this strategic restructuring plan. | ||||||||||||||||
The following table summarizes our restructuring activity during the three and nine months ended September 30, 2014: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
($ thousands) | 30-Sep-14 | 30-Sep-14 | ||||||||||||||
Severance costs | $ | 5,358 | $ | 9,811 | ||||||||||||
Lease / contract exit and related costs | 1,034 | 2,212 | ||||||||||||||
Other (1) | 1,776 | 4,484 | ||||||||||||||
Total restructuring charges | $ | 8,168 | $ | 16,507 | ||||||||||||
(1)The amounts in ‘Other’ consist of various asset impairment charges prompted by the aforementioned restructuring plan, legal fees and facility maintenance fees. | ||||||||||||||||
The following table summarizes our total restructuring charges incurred during the three and nine months ended September 30, 2014 as well as charges incurred to date by reportable segment: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
($ thousands) | 30-Sep-14 | 30-Sep-14 | ||||||||||||||
Americas | $ | 2,058 | $ | 3,282 | ||||||||||||
Asia Pacific | 3,191 | 3,584 | ||||||||||||||
Europe | 400 | 1,382 | ||||||||||||||
Corporate | 2,519 | 8,259 | ||||||||||||||
Total restructuring charges | $ | 8,168 | $ | 16,507 | ||||||||||||
The following table summarizes our accrued restructuring balance and associated activity from December 31, 2013 through September 30, 2014: | ||||||||||||||||
Accrued | Accrued | |||||||||||||||
restructuring as of | restructuring as of | |||||||||||||||
($ thousands) | 31-Dec-13 | Additions | Cash payments | Adjustments (1) | 30-Sep-14 | |||||||||||
Severance | $ | - | $ | 9,806 | $ | -7,092 | $ | -2 | $ | 2,712 | ||||||
Lease / contract exit and related costs | - | 2,255 | -1,335 | -37 | 883 | |||||||||||
Other | - | 337 | -182 | -5 | 150 | |||||||||||
Total accrued restructuring | $ | - | $ | 12,398 | $ | -8,609 | $ | -44 | $ | 3,745 | ||||||
(1)Adjustments relate to differences resulting from the translation of the liability balance at the balance sheet rate and restructuring expense translated at the weighted-average rate of exchange for the applicable period. | ||||||||||||||||
Retail Store Closings | ||||||||||||||||
As mentioned above, the Company plans to close 75 to 100 retail locations around the globe. As such, we expect to incur certain exit costs specific to store closures including operating lease termination costs, rent obligations for leased facilities, net of expected sublease income, and other expenses in association with this plan. During the three and nine months ended September 30, 2014, we closed 26 and 36 company-operated retail locations, respectively, which were not scheduled to close until future periods and were selected for closure by management based on historical and projected profitability levels, relocation plans, and other factors. As of September 30, 2014, we recorded a liability of approximately $1.1 million related to these locations in accrued restructuring on the condensed consolidated balance sheet. The calculation of accrued store closing reserves primarily includes future minimum lease payments from the date of closure to the end of the remaining lease term, net of contractual or estimated sublease income. We record the liability at fair value in the period in which the store is closed. | ||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||
Fair Value Measurements | ' | ||||||||||||||
7. FAIR VALUE MEASUREMENTS | |||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||
The following tables summarize the financial instruments required to be measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013: | |||||||||||||||
Fair Value as of September 30, 2014 | |||||||||||||||
Quoted prices in | Significant | ||||||||||||||
active markets | other | Significant | |||||||||||||
for identical | observable | unobservable | |||||||||||||
assets or liabilities | inputs | inputs | |||||||||||||
($ thousands) | (Level 1) | (Level 2) | (Level 3) | Total | Balance Sheet Classification | ||||||||||
Cash equivalents | $ | 108,148 | $ | - | $ | - | $ | 108,148 | Cash and cash equivalents and other current assets | ||||||
Derivative assets: | |||||||||||||||
Foreign currency contracts | $ | - | $ | 493 | $ | - | $ | 493 | Prepaid expenses and other current assets | ||||||
Fair Value as of December 31, 2013 | |||||||||||||||
Quoted prices in | Significant | ||||||||||||||
active markets | other | Significant | |||||||||||||
for identical | observable | unobservable | |||||||||||||
assets or liabilities | inputs | inputs | |||||||||||||
($ thousands) | (Level 1) | (Level 2) | (Level 3) | Total | Balance Sheet Classification | ||||||||||
Cash equivalents | $ | 37,870 | $ | - | $ | - | $ | 37,870 | Cash and cash equivalents and other current assets | ||||||
Derivative assets: | |||||||||||||||
Foreign currency contracts | - | 13,501 | - | 13,501 | Prepaid expenses and other current assets and other assets | ||||||||||
Derivative liabilities: | |||||||||||||||
Foreign currency contracts | $ | - | $ | 984 | $ | - | $ | 984 | Accrued expense and other current liabilities | ||||||
Non-Recurring Fair Value Measurements | |||||||||||||||
The majority of our non-financial 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, 2014 | |||||||||||||||
Derivative Financial Instruments [Abstract] | ' | ||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||
8. DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||||
We transact business in various foreign countries and are therefore exposed to foreign currency exchange rate risk inherent in revenues, costs, and monetary assets and liabilities denominated in non-functional currencies. We have entered into foreign currency exchange forward 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 losses, net’ in our condensed consolidated statements of income. For purposes of the condensed consolidated statements 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 7 – Fair Value Measurements for further details regarding the fair values of the corresponding derivative assets and liabilities. | |||||||||||||||
The following table summarizes the notional amounts of the outstanding foreign currency exchange contracts at September 30, 2014 and December 31, 2013. The notional amounts of the derivative financial instruments shown below are denominated in their United States (“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) | 2014 | 2013 | |||||||||||||
Foreign currency exchange forward contracts by currency: | |||||||||||||||
Euro | $ | 34,253 | $ | 38,577 | |||||||||||
Singapore Dollar | 32,424 | 28,225 | |||||||||||||
British Pound Sterling | 18,426 | 15,487 | |||||||||||||
Mexican Peso | 11,321 | 18,350 | |||||||||||||
Australian Dollar | 6,736 | 4,941 | |||||||||||||
Chinese Yuan Renminbi | 5,421 | - | |||||||||||||
South African Rand | 5,158 | 3,076 | |||||||||||||
Japanese Yen | 5,148 | 68,707 | |||||||||||||
New Taiwan Dollar | 3,978 | 3,463 | |||||||||||||
South Korean Won | 3,888 | 12,100 | |||||||||||||
Canadian Dollar | 3,536 | 3,428 | |||||||||||||
Indian Rupee | 2,925 | 2,150 | |||||||||||||
Hong Kong Dollar | 2,451 | 1,844 | |||||||||||||
Swedish Krona | 2,071 | 1,615 | |||||||||||||
Russian Ruble | 1,025 | 17,588 | |||||||||||||
Norwegian Krone | 814 | - | |||||||||||||
New Zealand Dollar | 704 | 943 | |||||||||||||
Total notional value, net | $ | 140,279 | $ | 220,494 | |||||||||||
Latest maturity date | Oct-14 | Dec-15 | |||||||||||||
The following table presents the amounts affecting the condensed consolidated statements of income from derivative instruments for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
($ thousands) | 2014 | 2013 | 2014 | 2013 | Location of (Gain) Loss Recognized in Income on Derivatives | ||||||||||
Foreign currency exchange forwards | $ | -2,497 | $ | 2,588 | $ | 2,711 | $ | -8,064 | Foreign currency transaction losses, net | ||||||
The account foreign currency transaction losses, net on the condensed consolidated statements of income includes both realized and unrealized gains/losses from underlying foreign currency activity and derivative contracts. These gains and losses are reported on a net basis. | |||||||||||||||
For the three months ended September 30, 2014, the net losses recognized of $1.3 million recorded on the condensed consolidated statements of income is comprised of a $3.8 million net loss associated with exposure from day-to-day business transactions in various foreign currencies partially offset by the $2.5 million net gain, noted in the table above, which is associated with our derivative instruments. For the nine months ended September 30, 2014, the net losses recognized of $4.3 million recorded on the condensed consolidated statements of income is comprised of the $2.7 million net loss, noted in the table above, which is associated with our derivative instruments and a $1.6 million net loss associated with exposure from day-to-day business transactions in various foreign currencies. | |||||||||||||||
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, noted in the table above, which is 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 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, noted in the table above, which is associated with our derivative instruments. | |||||||||||||||
Bank_Borrowings_and_Capital_Le
Bank Borrowings and Capital Lease Obligations | 9 Months Ended | ||
Sep. 30, 2014 | |||
Bank Borrowings And Capital Lease Obligations [Abstract] | ' | ||
Bank Borrowings And Capital Lease Obligations | ' | ||
9. REVOLVING CREDIT FACILITY & BANK BORROWINGS | |||
Revolving Credit Facility | |||
On December 16, 2011, we entered into an Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) with the lenders named therein and PNC Bank, National Association (“PNC”), as a lender and administrative agent for the lenders. The Credit Agreement enables us to borrow up to $100.0 million, with the ability to increase commitments to up to $125.0 million, subject to certain conditions, and is currently set to mature in December 2017. The Credit Agreement is available for working capital, capital expenditures, permitted acquisitions, reimbursement of drawings under letters of credit, and permitted dividends, distributions, purchases, redemptions and retirements of equity interests. Borrowings under the Credit Agreement are secured by all of our assets. | |||
On September 26, 2014, we entered into the Fifth Amendment to Amended and Restated Credit Agreement (the “Fifth Amendment”), pursuant to which certain terms of the Credit Agreement were amended. The Fifth Amendment primarily (i) extends the minimum fixed charge coverage ratio of 1.15 to 1.00 through the second quarter of 2015 and will return to 1.25 to 1.00 for each quarter thereafter, and (ii) amends certain definitions of the financial covenants to become more favorable to us. | |||
As of September 30, 2014 and December 31, 2013, we had no outstanding borrowings under the Credit Agreement. As of September 30, 2014 and December 31, 2013, we had issued and outstanding letters of credit of $8.2 million and $7.2 million, respectively, which were reserved against the borrowing base under the terms of the Credit Agreement. As of September 30, 2014, we were in compliance with all restrictive and financial covenants under the Credit Agreement. | |||
Long-term Bank Borrowings | |||
On December 10, 2012, we entered into a Master Installment Payment Agreement (“Master IPA”) with PNC in which PNC finances our purchase of software and services, which may include but are not limited to third party costs to design, install and implement software systems, and associated hardware described in the schedules defined within the Master IPA. The Master IPA was entered into to finance our implementation of a new enterprise resource planning (“ERP”) system, which began in October 2012 and is estimated to continue through early 2015. The terms of each note payable under the Master IPA consist of variable interest rates and payment terms based on amounts borrowed and timing of activity throughout the implementation of the ERP system. | |||
As of September 30, 2014 and December 31, 2013, we had $12.9 million and $16.8 million, respectively, of debt outstanding under five separate notes payable under the Master IPA, of which $5.2 million and $5.1 million, respectively, represent current installments. As of September 30, 2014, the notes bear interest rates ranging from 2.45% to 2.79% and maturities ranging from September 2016 to September 2017. As this debt arrangement relates solely to the construction and implementation of an ERP system for use by the Company, all interest expense incurred under the arrangement has been capitalized to the condensed consolidated balance sheets until the assets are ready for intended use and will be amortized over the useful life of the software upon that date. | |||
During the three and nine months ended September 30, 2014, we capitalized $0.1 million and $0.3 million, respectively, in interest expense related to this debt arrangement to the condensed consolidated balance sheets. During the three and nine months ended September 30, 2013, we did not capitalize any interest expense related to this debt arrangement. | |||
The aggregate maturities of long-term bank borrowings at September 30, 2014 are as follows (in thousands): | |||
Fiscal years ending December 31, | |||
Remainder of 2014 | $ | 1,296 | |
2015 | 5,271 | ||
2016 | 4,765 | ||
2017 | 1,610 | ||
2018 | - | ||
Thereafter | - | ||
Total principal debt maturities | $ | 12,942 | |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||
10. STOCK-BASED COMPENSATION | |||||||||||||||||||||
Stock-based compensation expense is recognized on a straight-line basis over the applicable vesting period. During the three months ended September 30, 2014 and 2013, we recorded $2.0 million and $3.0 million, respectively, of stock-based compensation expense, of which $0.0 million and $0.5 million, respectively, related to the implementation of our ERP system, was capitalized to intangible assets on the condensed consolidated balance sheets. During the nine months ended September 30, 2014 and 2013, $10.5 million and $10.5 million, respectively, of stock-based compensation expense was recorded, of which $0.1 million and $0.5 million, respectively, related to the implementation of our ERP system, was capitalized to intangible assets on the condensed consolidated balance sheets. | |||||||||||||||||||||
Stock Options | |||||||||||||||||||||
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. | |||||||||||||||||||||
The following table summarizes the stock option activity for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
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, 2014 and 2013, respectively, and December 31, 2013 and 2012, respectively | 1,875,480 | $ | 14.01 | 2,370,085 | $ | 13.42 | 2,105,152 | $ | 13.34 | 2,621,686 | $ | 13.03 | |||||||||
Granted | 35,000 | 16.06 | 10,000 | 13.52 | 69,000 | 15.66 | 167,000 | 15.75 | |||||||||||||
Exercised | -64,294 | 5.68 | -87,730 | 6.59 | -255,353 | 5.09 | -291,820 | 6.91 | |||||||||||||
Forfeited or expired | -94,751 | 21.27 | -63,089 | 20.18 | -167,364 | 20.41 | -267,600 | 17.59 | |||||||||||||
Outstanding at September 30 | 1,751,435 | $ | 13.96 | 2,229,266 | $ | 13.50 | 1,751,435 | $ | 13.96 | 2,229,266 | $ | 13.50 | |||||||||
Restricted Stock Awards and Units | |||||||||||||||||||||
From time to time, we grant restricted stock awards (“RSA”) and restricted stock units (“RSU”) to our employees. RSAs and RSUs generally vest over three or four years depending on the terms of the grant. Unvested RSAs have the same rights as those of common shares including voting rights and non-forfeitable dividend rights. However, ownership of unvested RSAs cannot be transferred until they are vested. An unvested RSU is a contractual right to receive a share of common stock only upon its vesting. RSUs have dividend equivalent rights which accrue over the term of the award and are paid if and when the RSUs vest, but they have no voting rights. | |||||||||||||||||||||
We typically grant time-based RSUs and performance-based RSUs. Time-based RSUs are typically granted on an annual basis to certain non-executive employees and vest in three annual installments on a straight-line basis beginning one year after the grant date. During the three months ended September 30, 2014 and 2013, the board of directors did not approve the grant of a material amount of time-based RSUs to non-executives. During the nine months ended September 30, 2014 and 2013, the board of directors approved 0.3 million and 0.4 million, respectively, grants of time-based RSUs to non-executives. | |||||||||||||||||||||
Performance-based RSUs are typically granted on an annual basis to executives and consist of a time-based and performance-based component. During the three months ended September 30, 2014 and 2013, the board of directors did not approve any grants of RSUs to executives as part of a performance incentive program. During the nine months ended September 30, 2014 and 2013, the board of directors approved the grant of an aggregate of 1.0 million and 0.7 million, respectively, of RSUs to executives as part of a performance incentive program. | |||||||||||||||||||||
During the three months ended September 30, 2014 and 2013, we recorded $1.6 million and $2.2 million, respectively, of stock-based compensation expense related to RSUs. During the nine months ended September 30, 2014 and 2013, we recorded $8.1 million of stock-based compensation expense related to RSUs. The following represents the current vesting schedule of performance-based RSUs: | |||||||||||||||||||||
Time Vested RSUs | Performance Vested RSUs (50% of Award) | ||||||||||||||||||||
(50% of Award) | |||||||||||||||||||||
Vest in 3 annual installments beginning one year after the date of grant | Performance Goals (weighted equally) | Potential Award | Further Time Vesting | ||||||||||||||||||
Achievement of at least 70% of a one-year cumulative earnings per share performance goal. | Executive may earn from 50% to 200% of the target number of RSUs based on the level of achievement of the performance goal. | Earned RSUs vest 50% upon satisfaction of performance goal and 50% one year later. | |||||||||||||||||||
Achievement of at least 90% of 2014 revenue target. | |||||||||||||||||||||
The following table summarizes the RSA activity for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
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, 2014 and 2013, respectively, and December 31, 2013 and 2012, respectively | 14,973 | $ | 15.61 | 288,087 | $ | 13.32 | 210,490 | $ | 13.43 | 355,509 | $ | 13.37 | |||||||||
Granted | - | - | - | 9,973 | 15.04 | 21,590 | 16.56 | ||||||||||||||
Vested (1) | -2,492 | 15.04 | -5,396 | 16.56 | -65,927 | 15.03 | -83,608 | 14.70 | |||||||||||||
Forfeited or expired | -2,500 | 16.75 | -15,000 | 14.34 | -144,555 | 12.67 | -25,800 | 13.57 | |||||||||||||
Outstanding at September 30 | 9,981 | $ | 15.47 | 267,691 | $ | 13.20 | 9,981 | $ | 15.47 | 267,691 | $ | 13.20 | |||||||||
(1)The RSAs vested during the three and nine months ended September 30, 2014 and 2013 consisted entirely of time-based awards. | |||||||||||||||||||||
The following table summarizes the RSU activity for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
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, 2014 and 2013, respectively, and December 31, 2013 and 2012, respectively | 2,377,221 | $ | 15.93 | 2,456,014 | $ | 16.72 | 1,965,667 | $ | 16.50 | 1,414,661 | $ | 20.61 | |||||||||
Granted | 44,000 | 15.40 | 26,500 | 13.52 | 1,665,493 | 16.22 | 1,589,614 | 15.01 | |||||||||||||
Vested (1) | -16,165 | 20.79 | -8,231 | 24.17 | -504,054 | 17.90 | -295,215 | 22.32 | |||||||||||||
Forfeited or expired | -186,840 | 15.95 | -90,285 | 18.08 | -908,890 | 16.70 | -325,062 | 21.10 | |||||||||||||
Outstanding at September 30 | 2,218,216 | $ | 15.89 | 2,383,998 | $ | 16.59 | 2,218,216 | $ | 15.89 | 2,383,998 | $ | 16.59 | |||||||||
-1 | The RSUs vested during the three months ended September 30, 2014 and 2013 consisted entirely of time-based awards. The RSUs vested during the nine months ended September 30, 2014 consisted of 473,108 of time-based awards and 30,946 of performance-based awards. The RSUs vested during the nine months ended September 30, 2013 consisted of 242,927 of time-based awards and 52,288 of performance-based awards. | ||||||||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
11. INCOME TAXES | |
During the three months ended September 30, 2014, we recognized an income tax benefit of $15.7 million on pre-tax income of $0.1 million compared to an income tax expense of $4.6 million on pre-tax income of $17.7 million. During the nine months ended September 30, 2014, we recognized an income tax expense of $8.4 million on pre-tax income of $56.6 million compared to an income tax expense of $25.1 million on pre-tax income of $102.5 million. | |
The decrease in effective tax rate, compared to the same period in 2013, is primarily due to the release of approximately $10.6 million of unrecognized tax benefits as a result of settling the Company’s audit with the Internal Revenue Service. 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 and due to tax amounts recognized discretely in the quarter. We had unrecognized tax benefits of $12.2 million at September 30, 2014 and $31.6 million at December 31, 2013. | |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
12. EARNINGS PER SHARE | |||||||||||||
The following table illustrates the basic and diluted EPS computations for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
($ thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||
Numerator | |||||||||||||
Net income attributable to common stockholders | $ | 12,009 | $ | 13,036 | $ | 37,905 | $ | 77,353 | |||||
Less: adjustment for income allocated to participating securities | -1,684 | -41 | -5,229 | -276 | |||||||||
Net income attributable to common stockholders - basic and diluted | $ | 10,325 | $ | 12,995 | $ | 32,676 | $ | 77,077 | |||||
Denominator | |||||||||||||
Weighted average common shares outstanding - basic | 84,659 | 88,109 | 86,582 | 87,919 | |||||||||
Plus: dilutive effect of stock options and unvested restricted stock units | 778 | 799 | 1,137 | 971 | |||||||||
Weighted average common shares outstanding - diluted | 85,437 | 88,908 | 87,719 | 88,890 | |||||||||
Net income attributable per common share: | |||||||||||||
Basic | $ | 0.12 | $ | 0.15 | $ | 0.38 | $ | 0.88 | |||||
Diluted | $ | 0.12 | $ | 0.15 | $ | 0.37 | $ | 0.87 | |||||
For the three months ended September 30, 2014 and 2013, approximately 0.8 million and 1.4 million, respectively, options and RSUs in total were not included in the calculation of diluted EPS as their effect would have been anti-dilutive. For the nine months ended September 30, 2014 and 2013, approximately 1.1 million and 1.4 million, respectively, options and RSUs in total were not included in the calculation of diluted EPS as their effect would have been anti-dilutive. | |||||||||||||
In addition to the antidilutive effects of options and RSUs, we did not assume the conversion of the Series A preferred stock into common shares for purposes of calculating diluted EPS as the effects would have been anti-dilutive. If converted, as of September 30, 2014, the Series A preferred stock would represent approximately 14.3% of our common stock outstanding or 13.8 million additional common shares. See Note 13 – Series A Preferred Stock for further details regarding the preferred share offering. | |||||||||||||
Stock Repurchase Plan Authorizations | |||||||||||||
We continue to evaluate options to maximize the returns on our cash and maintain an appropriate capital structure, including, among other alternatives, repurchases of our common stock. Subject to certain restrictions on repurchases under our revolving credit facility, we are authorized to repurchase up to $350.0 million of our common stock. The number, price, structure and timing of the repurchases, if any, will be at our sole discretion and future repurchases will be evaluated by us depending on market conditions, liquidity needs and other factors. Share repurchases may be made in the open market or in privately negotiated transactions. The repurchase authorization does not have an expiration date and does not oblige us to acquire any particular amount of our common stock. The board of directors may suspend, modify or terminate the repurchase program at any time without prior notice. | |||||||||||||
During the three months ended September 30, 2014, we repurchased approximately 2.9 million shares at a weighted average price of $14.74 per share for an aggregate price of approximately $43.0 million excluding related commission charges under our publicly-announced repurchase plan. During the nine months ended September 30, 2014, we repurchased approximately 6.1 million shares at a weighted average price of $14.76 per share for an aggregate price of approximately $89.9 million excluding related commission charges under our publicly-announced repurchase plan. | |||||||||||||
Since September 30, 2014, we have repurchased approximately 0.5 million shares at a weighted average price of $12.15 per share for an aggregate price of approximately $5.7 million excluding related commission charges under our publicly-announced repurchase plan. | |||||||||||||
Series_A_Preferred_Stock
Series A Preferred Stock | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Series A Preferred Stock [Abstract] | ' | |||
Series A Preferred Stock | ' | |||
13. SERIES A PREFERRED STOCK | ||||
On January 27, 2014, we issued to Blackstone Capital Partners VI L.P. (“Blackstone”), and certain of its permitted transferees (together with Blackstone, the “Blackstone Purchasers”), 200,000 shares of our Series A preferred stock for an aggregate purchase price of $198.0 million, or $990 per share, pursuant to an Investment Agreement between us and Blackstone, dated December 28, 2013 (as amended, the “Investment Agreement”). In connection with the issuance of the Series A preferred stock (the “Closing”), we received proceeds of $182.2 million after deducting the issuance discount of $2.0 million and direct and incremental expenses of $15.8 million including financial advisory fees, closing costs, legal expenses and other offering-related expenses. | ||||
Participation Rights and Dividends | ||||
The Series A preferred stock ranks senior to our common stock with respect to dividend rights and rights on liquidation, winding-up and dissolution. The Series A preferred stock has a stated value of $1,000 per share, and holders of Series A preferred stock are entitled to cumulative dividends payable quarterly in cash at a rate of 6% per annum. If we fail to make timely dividend payments, the dividend rate will increase to 8% per annum until such time as all accrued but unpaid dividends have been paid in full. Holders of Series A preferred stock are entitled to receive dividends declared or paid on our common stock and are entitled to vote together with the holders of our common stock as a single class, in each case, on an as-converted basis. As of September 30, 2014, we have accrued dividends of $3.1 million on the condensed consolidated balance sheets, which were paid in cash to Blackstone on October 1, 2014. Holders of Series A preferred stock have certain limited special approval rights, including with respect to the issuance of pari passu or senior equity securities of the Company. | ||||
Conversion Features | ||||
The Series A preferred stock is convertible at the option of the holders at any time after the Closing into shares of common stock at an implied conversion price of $14.50 per share, subject to adjustment. At our election, all or a portion of the Series A preferred stock will be convertible into the relevant number of shares of common stock on or after the third anniversary of the Closing, if the closing price of the common stock equals or exceeds $29.00 for 20 consecutive trading days. The Series A preferred stock is convertible into 13,793,100 shares of our common stock based on the conversion rate in place as of September 30, 2014. The conversion rate is subject to the following customary anti-dilution and other adjustments: | ||||
1) | The occurrence of common stock dividends or distributions, stock splits or combinations, and equity reclassifications. | |||
2) | The distribution of rights, options, or warrants to all holders of common stock entitling them to purchase shares of common stock at a price per share that is less than the closing price of the Company’s common stock. | |||
3) | Pursuant to a tender offer or exchange offer to purchase outstanding shares of common stock for consideration valued at an amount greater than the closing price of the Company’s common stock. | |||
4) | If the Company distributes evidences of its indebtedness, assets, other property or securities or rights, options or warrants to acquire its Capital Stock. | |||
5) | If the Company has any stockholder rights plan in effect with respect to the common stock on the date of conversion, upon conversion of the Series A preferred stock, the holder will also receive (in addition to the common stock pursuant to the conversion) the rights under such rights plan, unless those rights (a) become exercisable before the conversion of the Series A preferred stock, or (b) are separated from the common stock (each a “Trigger Event”). Upon the occurrence of a Trigger Event, the Series A preferred stock conversion rate will be adjusted in accordance with 1) or 2) described above. | |||
6) | If the Company issues shares of common stock (or other instruments convertible into common stock) for valuable consideration, the conversion price is adjusted if (a) the offering price is less than the conversion price and (b) if the offering is at a price less than the fair market value of the Company’s common stock on the date of issuance. | |||
Redemption Features | ||||
At any time after the eighth anniversary of the Closing, we will have the right to redeem and the holders of the Series A preferred stock will have the right to require us to repurchase, all or any portion of the Series A preferred stock at 100% of the stated value thereof plus all accrued but unpaid dividends. Upon certain change of control events involving us, the holders can require us to repurchase the Series A preferred stock at 101% of the stated value thereof plus all accrued but unpaid dividends. | ||||
In accordance with FASB ASC Topic 480-10-S99-3A, SEC Staff Announcement: Classification and Measurement of Redeemable Securities, redemption features which are not solely within the control of the issuer are required to be presented outside of permanent equity on the condensed consolidated balance sheets. Under the Investment Agreement and as noted above, the holder has the option to redeem the Series A preferred stock any time after January 27, 2022 or upon a change in control. As such, the Series A preferred stock is presented in temporary or mezzanine equity on the condensed consolidated balance sheets and will be accreted up to the stated redemption value of $203.0 million using an appropriate accretion method over a redemption period of eight years, as this represents the earliest probable date at which the Series A preferred stock will become redeemable. | ||||
Commitments_Contingencies
Commitments & Contingencies | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Commitments & Contingencies [Abstract] | ' | ||||||||||||
Commitments & Contingencies | ' | ||||||||||||
14. COMMITMENTS & CONTINGENCIES | |||||||||||||
Rental Commitments and Contingencies | |||||||||||||
We rent space for certain of 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, 2014 and 2013 (in thousands): | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Minimum rentals (1) | $ | 26,629 | $ | 26,047 | $ | 82,307 | $ | 75,093 | |||||
Contingent rentals | 4,952 | 5,596 | 14,635 | 15,240 | |||||||||
Less: Sublease rentals | -261 | -158 | -736 | -469 | |||||||||
Total rent expense | $ | 31,320 | $ | 31,485 | $ | 96,206 | $ | 89,864 | |||||
(1)Minimum rentals include all lease payments as well as fixed and variable common area maintenance (“CAM”), parking and storage fees, which were approximately $2.3 million and $2.5 million during the three months ended September 30, 2014 and 2013, respectively, and $7.3 million and $7.4 million during the nine months ended September 30, 2014 and 2013, respectively. | |||||||||||||
Purchase Commitments | |||||||||||||
As of September 30, 2014, we had purchase commitments with certain third party manufacturers for $165.7 million. | |||||||||||||
Operating_Segments_Geographic_
Operating Segments & Geographic Information | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Operating Segments & Geographic Information [Abstract] | ' | ||||||||||||
Operating Segments & Geographic Information | ' | ||||||||||||
15. OPERATING SEGMENTS & GEOGRAPHIC INFORMATION | |||||||||||||
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 threshold and represent manufacturing operations located in Mexico, Italy and Asia. The composition of our reportable operating segments is consistent with that used by our Chief Operating Decision Maker (“CODM”) to evaluate performance and allocate resources. | |||||||||||||
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, 2014 and 2013: | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
($ thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||
Revenues: | |||||||||||||
Americas | $ | 127,475 | $ | 116,194 | $ | 386,163 | $ | 391,878 | |||||
Asia Pacific | 78,327 | 79,406 | 301,678 | 281,695 | |||||||||
Japan | 35,519 | 38,984 | 105,764 | 114,815 | |||||||||
Europe | 60,645 | 53,903 | 197,538 | 175,419 | |||||||||
Total segment revenues | 301,966 | 288,487 | 991,143 | 963,807 | |||||||||
Other businesses | 435 | 37 | 607 | 200 | |||||||||
Total consolidated revenues | $ | 302,401 | $ | 288,524 | $ | 991,750 | $ | 964,007 | |||||
Operating income: | |||||||||||||
Americas | $ | 15,094 | $ | 17,969 | $ | 53,451 | $ | 61,787 | |||||
Asia Pacific | 4,384 | 13,690 | 65,962 | 76,478 | |||||||||
Japan | 9,091 | 11,656 | 29,421 | 36,679 | |||||||||
Europe | 9,689 | 6,860 | 29,254 | 31,188 | |||||||||
Total segment operating income | 38,258 | 50,175 | 178,088 | 206,132 | |||||||||
Reconciliation of total segment operating income to income before income taxes: | |||||||||||||
Other businesses | -5,405 | -5,495 | -13,750 | -14,907 | |||||||||
Intersegment eliminations | 15 | 15 | 45 | 45 | |||||||||
Unallocated corporate and other (1) | -31,755 | -26,788 | -104,537 | -85,294 | |||||||||
Total consolidated operating income | 1,113 | 17,907 | 59,846 | 105,976 | |||||||||
Foreign currency transaction losses, net | 1,290 | 1,043 | 4,278 | 4,457 | |||||||||
Interest income | -424 | -853 | -1,304 | -1,676 | |||||||||
Interest expense | 366 | 44 | 685 | 519 | |||||||||
Other (income) expense, net | -217 | 13 | -388 | 180 | |||||||||
Income before income taxes | $ | 98 | $ | 17,660 | $ | 56,575 | $ | 102,496 | |||||
Depreciation and amortization: | |||||||||||||
Americas | $ | 3,439 | $ | 2,690 | $ | 9,126 | $ | 7,663 | |||||
Asia Pacific | 1,219 | 1,244 | 4,094 | 3,722 | |||||||||
Japan | 458 | 346 | 1,161 | 1,122 | |||||||||
Europe | 1,011 | 1,367 | 2,825 | 3,798 | |||||||||
Total segment depreciation and amortization | 6,127 | 5,647 | 17,206 | 16,305 | |||||||||
Other businesses | 1,857 | 2,045 | 5,591 | 6,285 | |||||||||
Unallocated corporate and other (1) | 2,609 | 2,953 | 8,547 | 8,577 | |||||||||
Total consolidated depreciation and amortization | $ | 10,593 | $ | 10,645 | $ | 31,344 | $ | 31,167 | |||||
(1)Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, 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, 2014 and December 31, 2013: | |||||||||||||
September 30, | December 31, | ||||||||||||
($ thousands) | 2014 | 2013 | |||||||||||
Assets: | |||||||||||||
Americas | $ | 174,999 | $ | 139,855 | |||||||||
Asia Pacific | 196,795 | 177,343 | |||||||||||
Japan | 45,825 | 51,155 | |||||||||||
Europe | 198,945 | 137,701 | |||||||||||
Total segment current assets | 616,564 | 506,054 | |||||||||||
Other businesses | 14,481 | 14,093 | |||||||||||
Unallocated corporate and other(1) | 80,809 | 63,743 | |||||||||||
Deferred tax assets, net | 4,278 | 4,440 | |||||||||||
Income tax receivable | 19,677 | 10,630 | |||||||||||
Other receivables | 17,196 | 11,942 | |||||||||||
Prepaid expenses and other current assets | 36,717 | 29,175 | |||||||||||
Total current assets | 789,722 | 640,077 | |||||||||||
Property and equipment, net | 73,575 | 86,971 | |||||||||||
Intangible assets, net | 89,599 | 72,315 | |||||||||||
Goodwill | 2,235 | 2,507 | |||||||||||
Deferred tax assets, net | 17,581 | 19,628 | |||||||||||
Other assets | 34,220 | 53,661 | |||||||||||
Total consolidated assets | $ | 1,006,932 | $ | 875,159 | |||||||||
(1)Corporate assets primarily consist of cash and equivalents which increased predominately due to net cash proceeds from our investment with Blackstone. See Note 13 – Series A Preferred Stock for further details regarding the preferred share offering. | |||||||||||||
Legal_Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2014 | |
Legal Proceedings [Abstract] | ' |
Legal Proceedings | ' |
16. LEGAL PROCEEDINGS | |
We and certain current and former officers and directors were named as defendants in complaints filed by investors in the United States District Court for the District of Colorado.The first complaint was filed in November 2007 and several other complaints were filed shortly thereafter. These actions were consolidated and, in September 2008, the district court appointed a lead plaintiff and counsel. An amended consolidated complaint was filed in December 2008. The amended complaint purported to state claims under Sections 10(b), 20(a), and 20A of the Exchange Act on behalf of a class of all persons who purchased our common stock between April 2, 2007 and April 14, 2008 (the "Class Period"). The amended complaint also added our independent auditor as a defendant. The amended complaint alleged that, during the Class Period, the defendants made false and misleading public statements about us and our business and prospects and, as a result, the market price of our common stock was artificially inflated. The amended complaint also claimed that certain current and former officers and directors traded in our common stock on the basis of material non-public information. The amended complaint sought compensatory damages on behalf of the alleged class in an unspecified amount, including interest, and also sought attorneys' fees and costs of litigation. On February 28, 2011, the District Court granted motions to dismiss filed by the defendants and dismissed all claims. A final judgment was thereafter entered. Plaintiffs subsequently appealed to the United States Court of Appeals for the Tenth Circuit. We and those current and former officers and directors named as defendants entered into a Stipulation of Settlement with the plaintiffs to resolve all claims asserted against us by the plaintiffs on behalf of the putative class. Our independent auditor was not a party to the Stipulation of Settlement. The Stipulation of Settlement received preliminary approval from the District Court on August 28, 2013. On September 18, 2014, the District Court entered an order of final approval of the settlement and, on September 19, 2014, the District Court entered final judgment dismissing the action against us and those current and former officers and directors named as defendants in its entirety with prejudice. The full settlement amount has been paid by our insurers. Since no notice of appeal was filed during the appeal period, the settlement will become final on or about October 30, 2014. | |
We are currently subject to an audit by U.S. Customs & Border Protection (“CBP”) in respect of the period from 2006 to 2010. In October 2013, CBP issued a revised final audit report. In that report CBP projects that unpaid duties totaling approximately $12.4 million are due for 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 projection. 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 precisely when a notice of claim will be received from CBP, but currently we anticipate a notice of claim could be received sometime in the first quarter of 2015. Likewise, it is not possible to predict with any certainty whether CBP will seek to assert a claim for penalties in addition to any unpaid duties, but such an assertion is a possibility. | |
Mexico’s Federal Tax Authority (“SAT”) 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, 2014, we have accrued a total of $4.2 million relating to these litigation matters and other disputes. We estimate that the ultimate resolution of these litigation matters and other disputes could result in a loss that is reasonably possible between $0.0 million and $9.6 million in the aggregate, in excess of the amount accrued. | |
Although we are subject to other litigation from time to time in the ordinary course of business, including employment, intellectual property and product liability claims, we are not party to any other pending legal proceedings that we believe would reasonably have a material adverse impact on our business, financial position, results of operations or cash flows. | |
Accounting_Policy_Changes_Poli
Accounting Policy Changes (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Policy Text Block [Abstract] | ' |
Earnings per share policy | ' |
Earnings per share - Basic and diluted earnings per common share (“EPS”) is presented using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividend rights and participation rights in undistributed earnings. Under the two-class method, EPS is computed by dividing the sum of distributed and undistributed earnings attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. A participating security is a security that may participate in undistributed earnings with common stock had those earnings been distributed in any form. Our recently issued Series A convertible preferred stock (“Series A preferred stock”) represents participating securities as holders of the Series A preferred stock are entitled to receive any and all dividends declared or paid on common stock on an as-converted basis. In addition, shares of our non-vested restricted stock awards are considered participating securities as they represent unvested share-based payment awards containing non-forfeitable rights to dividends. As such, these participating securities must be included in the computation of EPS pursuant to the two-class method on a pro-rata, as-converted basis. Diluted EPS reflects the potential dilution from securities that could share in our earnings. In addition, the dilutive effect of each participating security is calculated using the more dilutive of the two-class method described above, which assumes that the securities remain in their current form, or the if-converted method, which assumes conversion to common stock as of the beginning of the reporting date. Anti-dilutive securities are excluded from diluted EPS. See Note 12—Earnings Per Share for further discussion. | |
Beneficial conversion feature policy | ' |
Beneficial conversion feature – The issuance of our Series A preferred stock generated a beneficial conversion feature, which arises when a debt or equity security is issued with an embedded conversion option that is beneficial to the investor or in the money at inception because the conversion option has an effective strike price that is less than the market price of the underlying stock at the commitment date. We recognized the beneficial conversion feature by allocating the intrinsic value of the conversion option, which is the number of shares of common stock available upon conversion multiplied by the difference between the effective conversion price per share and the fair value of common stock per share on the commitment date, to additional paid-in capital, resulting in a discount on the Series A preferred stock. We are accreting the discount over eight years from the date of issuance through the redemption date. Accretion expense will be recognized as dividend equivalents over the eight year period utilizing the effective interest method. | |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Inventories [Abstract] | ' | ||||||
Schedule of Inventory | ' | ||||||
($ thousands) | 30-Sep-14 | 31-Dec-13 | |||||
Finished goods | $ | 197,213 | $ | 154,272 | |||
Work-in-progress | 289 | 685 | |||||
Raw materials | 5,317 | 7,384 | |||||
Inventories | $ | 202,819 | $ | 162,341 | |||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Property & Equipment [Abstract] | ' | ||||||||||||||||||||
Schedule of Property and Equipment | ' | ||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||
($ thousands) | 2014 | 2013 | |||||||||||||||||||
Machinery and equipment | $ | 52,737 | $ | 52,003 | |||||||||||||||||
Leasehold improvements | 97,697 | 93,235 | |||||||||||||||||||
Furniture, fixtures and other | 26,396 | 23,653 | |||||||||||||||||||
Construction-in-progress | 4,012 | 16,231 | |||||||||||||||||||
Property and equipment, gross (1) | 180,842 | 185,122 | |||||||||||||||||||
Less: Accumulated depreciation (2) | -107,267 | -98,151 | |||||||||||||||||||
Property and equipment, net | $ | 73,575 | $ | 86,971 | |||||||||||||||||
(1)Includes $0.1 million and $0.1 million of certain equipment held under capital leases and classified as equipment as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||
(2)Includes $0.1 million and $0.1 million of accumulated depreciation related to certain equipment held under capital leases as of September 30, 2014 and December 31, 2013, respectively, which are depreciated using the straight-line method over the lease term. | |||||||||||||||||||||
Schedule of Asset Impairments | ' | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
($ thousands, except store count data) | Impairment charge | Number of stores | Impairment charge | Number of stores | Impairment charge | Number of stores | Impairment charge | Number of stores | |||||||||||||
Americas | $ | 1,994 | 10 | $ | - | - | $ | 3,238 | 26 | $ | 202 | 1 | |||||||||
Asia Pacific | 372 | 2 | - | - | 817 | 14 | - | - | |||||||||||||
Japan | - | - | - | - | - | - | - | - | |||||||||||||
Europe | 234 | 8 | - | - | 1,775 | 17 | - | - | |||||||||||||
Asset impairment charges | $ | 2,600 | 20 | $ | - | - | $ | 5,830 | 57 | $ | 202 | 1 | |||||||||
Goodwill_Intangible_Assets_Tab
Goodwill & Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Goodwill & Intangible Assets [Abstract] | ' | ||||||||||||||||||
Schedule of Goodwill & Intangible Assets | ' | ||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||
($ thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||
Capitalized software | $ | 149,303 | -1 | $ | -62,001 | -2 | $ | 87,302 | $ | 118,940 | -1 | $ | -49,665 | -2 | $ | 69,275 | |||
Customer relationships | 6,589 | -6,389 | 200 | 6,878 | -6,439 | 439 | |||||||||||||
Patents, copyrights, and trademarks | 6,530 | -4,847 | 1,683 | 6,501 | -4,272 | 2,229 | |||||||||||||
Core technology | 4,337 | -4,337 | - | 4,548 | -4,548 | - | |||||||||||||
Other | 701 | -637 | 64 | 983 | -709 | 274 | |||||||||||||
Total finite lived intangible assets | 167,460 | -78,211 | 89,249 | 137,850 | -65,633 | 72,217 | |||||||||||||
Indefinite lived intangible assets | 350 | - | 350 | 97 | - | 97 | |||||||||||||
Goodwill | 2,235 | - | 2,235 | 2,508 | - | 2,508 | |||||||||||||
Goodwill and intangible assets | $ | 170,045 | $ | -78,211 | $ | 91,834 | $ | 140,455 | $ | -65,633 | $ | 74,822 | |||||||
(1)Includes $4.1 million of software held under a capital lease classified as capitalized software as of September 30, 2014 and December 31, 2013. | |||||||||||||||||||
(2)Includes $2.4 million and $1.9 million of accumulated amortization of software held under a capital lease as of September 30, 2014 and December 31, 2013, respectively, which is amortized using the straight-line method over the useful life. | |||||||||||||||||||
Schedule of Future Amortization of Intangible Assets | ' | ||||||||||||||||||
Amortization | |||||||||||||||||||
Fiscal years ending December 31, | ($ thousands) | ||||||||||||||||||
Remainder of 2014 | $ | 2,936 | |||||||||||||||||
2015 | 18,400 | ||||||||||||||||||
2016 | 16,649 | ||||||||||||||||||
2017 | 12,303 | ||||||||||||||||||
2018 | 10,725 | ||||||||||||||||||
Thereafter | 28,236 | ||||||||||||||||||
Total | $ | 89,249 | |||||||||||||||||
Recovered_Sheet1
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Accrued Expenses And Other Current Liabilities [Abstract] | ' | ||||||
Schedule of Accrued Expenses & Other Current Liabilities | ' | ||||||
September 30, | December 31, | ||||||
($ thousands) | 2014 | 2013 | |||||
Accrued compensation and benefits | $ | 29,399 | $ | 26,903 | |||
Professional services | 17,939 | 14,128 | |||||
Fulfillment, freight and duties | 15,839 | 12,565 | |||||
Sales/use and VAT tax payable | 13,558 | 9,142 | |||||
Accrued rent and occupancy | 9,512 | 12,198 | |||||
Customer deposits | 3,964 | 6,940 | |||||
Dividend payable | 3,067 | - | |||||
Accrued legal liabilities | 1,191 | 8,722 | |||||
Other (1) | 10,673 | 6,513 | |||||
Total accrued expenses and other current liabilities | $ | 105,142 | $ | 97,111 | |||
(1)The amounts in ‘Other’ consist of various accrued expenses and no individual item accounted for more than 5% of the total balance at September 30, 2014 or December 31, 2013. | |||||||
Restructuring_Activities_Table
Restructuring Activities (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Restructuring Activities [Abstract] | ' | |||||||||||||||
Schedule of restructuring costs by type | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
($ thousands) | 30-Sep-14 | 30-Sep-14 | ||||||||||||||
Severance costs | $ | 5,358 | $ | 9,811 | ||||||||||||
Lease / contract exit and related costs | 1,034 | 2,212 | ||||||||||||||
Other (1) | 1,776 | 4,484 | ||||||||||||||
Total restructuring charges | $ | 8,168 | $ | 16,507 | ||||||||||||
(1)The amounts in ‘Other’ consist of various asset impairment charges prompted by the aforementioned restructuring plan, legal fees and facility maintenance fees. | ||||||||||||||||
Schedule of restructuring costs by segment | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
($ thousands) | 30-Sep-14 | 30-Sep-14 | ||||||||||||||
Americas | $ | 2,058 | $ | 3,282 | ||||||||||||
Asia Pacific | 3,191 | 3,584 | ||||||||||||||
Europe | 400 | 1,382 | ||||||||||||||
Corporate | 2,519 | 8,259 | ||||||||||||||
Total restructuring charges | $ | 8,168 | $ | 16,507 | ||||||||||||
Schedule of restructuring reserve by type | ' | |||||||||||||||
Accrued | Accrued | |||||||||||||||
restructuring as of | restructuring as of | |||||||||||||||
($ thousands) | 31-Dec-13 | Additions | Cash payments | Adjustments (1) | 30-Sep-14 | |||||||||||
Severance | $ | - | $ | 9,806 | $ | -7,092 | $ | -2 | $ | 2,712 | ||||||
Lease / contract exit and related costs | - | 2,255 | -1,335 | -37 | 883 | |||||||||||
Other | - | 337 | -182 | -5 | 150 | |||||||||||
Total accrued restructuring | $ | - | $ | 12,398 | $ | -8,609 | $ | -44 | $ | 3,745 | ||||||
(1)Adjustments relate to differences resulting from the translation of the liability balance at the balance sheet rate and restructuring expense translated at the weighted-average rate of exchange for the applicable period. | ||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||
Schedule of Fair Value Measurements on a Recurring Basis | ' | ||||||||||||||
Fair Value as of September 30, 2014 | |||||||||||||||
Quoted prices in | Significant | ||||||||||||||
active markets | other | Significant | |||||||||||||
for identical | observable | unobservable | |||||||||||||
assets or liabilities | inputs | inputs | |||||||||||||
($ thousands) | (Level 1) | (Level 2) | (Level 3) | Total | Balance Sheet Classification | ||||||||||
Cash equivalents | $ | 108,148 | $ | - | $ | - | $ | 108,148 | Cash and cash equivalents and other current assets | ||||||
Derivative assets: | |||||||||||||||
Foreign currency contracts | $ | - | $ | 493 | $ | - | $ | 493 | Prepaid expenses and other current assets | ||||||
Fair Value as of December 31, 2013 | |||||||||||||||
Quoted prices in | Significant | ||||||||||||||
active markets | other | Significant | |||||||||||||
for identical | observable | unobservable | |||||||||||||
assets or liabilities | inputs | inputs | |||||||||||||
($ thousands) | (Level 1) | (Level 2) | (Level 3) | Total | Balance Sheet Classification | ||||||||||
Cash equivalents | $ | 37,870 | $ | - | $ | - | $ | 37,870 | Cash and cash equivalents and other current assets | ||||||
Derivative assets: | |||||||||||||||
Foreign currency contracts | - | 13,501 | - | 13,501 | Prepaid expenses and other current assets and other assets | ||||||||||
Derivative liabilities: | |||||||||||||||
Foreign currency contracts | $ | - | $ | 984 | $ | - | $ | 984 | Accrued expense and other current liabilities | ||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Derivative Financial Instruments [Abstract] | ' | ||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ' | ||||||||||||||
September 30, | December 31, | ||||||||||||||
($ thousands) | 2014 | 2013 | |||||||||||||
Foreign currency exchange forward contracts by currency: | |||||||||||||||
Euro | $ | 34,253 | $ | 38,577 | |||||||||||
Singapore Dollar | 32,424 | 28,225 | |||||||||||||
British Pound Sterling | 18,426 | 15,487 | |||||||||||||
Mexican Peso | 11,321 | 18,350 | |||||||||||||
Australian Dollar | 6,736 | 4,941 | |||||||||||||
Chinese Yuan Renminbi | 5,421 | - | |||||||||||||
South African Rand | 5,158 | 3,076 | |||||||||||||
Japanese Yen | 5,148 | 68,707 | |||||||||||||
New Taiwan Dollar | 3,978 | 3,463 | |||||||||||||
South Korean Won | 3,888 | 12,100 | |||||||||||||
Canadian Dollar | 3,536 | 3,428 | |||||||||||||
Indian Rupee | 2,925 | 2,150 | |||||||||||||
Hong Kong Dollar | 2,451 | 1,844 | |||||||||||||
Swedish Krona | 2,071 | 1,615 | |||||||||||||
Russian Ruble | 1,025 | 17,588 | |||||||||||||
Norwegian Krone | 814 | - | |||||||||||||
New Zealand Dollar | 704 | 943 | |||||||||||||
Total notional value, net | $ | 140,279 | $ | 220,494 | |||||||||||
Latest maturity date | Oct-14 | Dec-15 | |||||||||||||
Schedule of Derivative Instrument Gain (Loss) | ' | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
($ thousands) | 2014 | 2013 | 2014 | 2013 | Location of (Gain) Loss Recognized in Income on Derivatives | ||||||||||
Foreign currency exchange forwards | $ | -2,497 | $ | 2,588 | $ | 2,711 | $ | -8,064 | Foreign currency transaction losses, net | ||||||
Revolving_Credit_Facility_Bank
Revolving Credit Facility & Bank Borrowings (Tables) | 9 Months Ended | ||
Sep. 30, 2014 | |||
Debt Disclosure [Abstract] | ' | ||
Schedule of Maturities of Long-Term Debt | ' | ||
Fiscal years ending December 31, | |||
Remainder of 2014 | $ | 1,296 | |
2015 | 5,271 | ||
2016 | 4,765 | ||
2017 | 1,610 | ||
2018 | - | ||
Thereafter | - | ||
Total principal debt maturities | $ | 12,942 | |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||||||||||
Schedule Of Stock Options | ' | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
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, 2014 and 2013, respectively, and December 31, 2013 and 2012, respectively | 1,875,480 | $ | 14.01 | 2,370,085 | $ | 13.42 | 2,105,152 | $ | 13.34 | 2,621,686 | $ | 13.03 | |||||||||
Granted | 35,000 | 16.06 | 10,000 | 13.52 | 69,000 | 15.66 | 167,000 | 15.75 | |||||||||||||
Exercised | -64,294 | 5.68 | -87,730 | 6.59 | -255,353 | 5.09 | -291,820 | 6.91 | |||||||||||||
Forfeited or expired | -94,751 | 21.27 | -63,089 | 20.18 | -167,364 | 20.41 | -267,600 | 17.59 | |||||||||||||
Outstanding at September 30 | 1,751,435 | $ | 13.96 | 2,229,266 | $ | 13.50 | 1,751,435 | $ | 13.96 | 2,229,266 | $ | 13.50 | |||||||||
Schedule of Performance-based RSU Vesting Schedule | ' | ||||||||||||||||||||
Time Vested RSUs | Performance Vested RSUs (50% of Award) | ||||||||||||||||||||
(50% of Award) | |||||||||||||||||||||
Vest in 3 annual installments beginning one year after the date of grant | Performance Goals (weighted equally) | Potential Award | Further Time Vesting | ||||||||||||||||||
Achievement of at least 70% of a one-year cumulative earnings per share performance goal. | Executive may earn from 50% to 200% of the target number of RSUs based on the level of achievement of the performance goal. | Earned RSUs vest 50% upon satisfaction of performance goal and 50% one year later. | |||||||||||||||||||
Achievement of at least 90% of 2014 revenue target. | |||||||||||||||||||||
Schedule of Restricted Stock Awards | ' | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
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, 2014 and 2013, respectively, and December 31, 2013 and 2012, respectively | 14,973 | $ | 15.61 | 288,087 | $ | 13.32 | 210,490 | $ | 13.43 | 355,509 | $ | 13.37 | |||||||||
Granted | - | - | - | 9,973 | 15.04 | 21,590 | 16.56 | ||||||||||||||
Vested (1) | -2,492 | 15.04 | -5,396 | 16.56 | -65,927 | 15.03 | -83,608 | 14.70 | |||||||||||||
Forfeited or expired | -2,500 | 16.75 | -15,000 | 14.34 | -144,555 | 12.67 | -25,800 | 13.57 | |||||||||||||
Outstanding at September 30 | 9,981 | $ | 15.47 | 267,691 | $ | 13.20 | 9,981 | $ | 15.47 | 267,691 | $ | 13.20 | |||||||||
(1)The RSAs vested during the three and nine months ended September 30, 2014 and 2013 consisted entirely of time-based awards. | |||||||||||||||||||||
Schedule Of Restricted Stock Units | ' | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
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, 2014 and 2013, respectively, and December 31, 2013 and 2012, respectively | 2,377,221 | $ | 15.93 | 2,456,014 | $ | 16.72 | 1,965,667 | $ | 16.50 | 1,414,661 | $ | 20.61 | |||||||||
Granted | 44,000 | 15.40 | 26,500 | 13.52 | 1,665,493 | 16.22 | 1,589,614 | 15.01 | |||||||||||||
Vested (1) | -16,165 | 20.79 | -8,231 | 24.17 | -504,054 | 17.90 | -295,215 | 22.32 | |||||||||||||
Forfeited or expired | -186,840 | 15.95 | -90,285 | 18.08 | -908,890 | 16.70 | -325,062 | 21.10 | |||||||||||||
Outstanding at September 30 | 2,218,216 | $ | 15.89 | 2,383,998 | $ | 16.59 | 2,218,216 | $ | 15.89 | 2,383,998 | $ | 16.59 | |||||||||
The RSUs vested during the three months ended September 30, 2014 and 2013 consisted entirely of time-based awards. The RSUs vested during the nine months ended September 30, 2014 consisted of 473,108 of time-based awards and 30,946 of performance-based awards. The RSUs vested during the nine months ended September 30, 2013 consisted of 242,927 of time-based awards and 52,288 of performance-based awards. | |||||||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share Summary | ' | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
($ thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||
Numerator | |||||||||||||
Net income attributable to common stockholders | $ | 12,009 | $ | 13,036 | $ | 37,905 | $ | 77,353 | |||||
Less: adjustment for income allocated to participating securities | -1,684 | -41 | -5,229 | -276 | |||||||||
Net income attributable to common stockholders - basic and diluted | $ | 10,325 | $ | 12,995 | $ | 32,676 | $ | 77,077 | |||||
Denominator | |||||||||||||
Weighted average common shares outstanding - basic | 84,659 | 88,109 | 86,582 | 87,919 | |||||||||
Plus: dilutive effect of stock options and unvested restricted stock units | 778 | 799 | 1,137 | 971 | |||||||||
Weighted average common shares outstanding - diluted | 85,437 | 88,908 | 87,719 | 88,890 | |||||||||
Net income attributable per common share: | |||||||||||||
Basic | $ | 0.12 | $ | 0.15 | $ | 0.38 | $ | 0.88 | |||||
Diluted | $ | 0.12 | $ | 0.15 | $ | 0.37 | $ | 0.87 | |||||
Commitments_Contingencies_Tabl
Commitments & Contingencies (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Commitments & Contingencies [Abstract] | ' | ||||||||||||
Schedule of rent expense | ' | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Minimum rentals (1) | $ | 26,629 | $ | 26,047 | $ | 82,307 | $ | 75,093 | |||||
Contingent rentals | 4,952 | 5,596 | 14,635 | 15,240 | |||||||||
Less: Sublease rentals | -261 | -158 | -736 | -469 | |||||||||
Total rent expense | $ | 31,320 | $ | 31,485 | $ | 96,206 | $ | 89,864 | |||||
(1)Minimum rentals include all lease payments as well as fixed and variable common area maintenance (“CAM”), parking and storage fees, which were approximately $2.3 million and $2.5 million during the three months ended September 30, 2014 and 2013, respectively, and $7.3 million and $7.4 million during the nine months ended September 30, 2014 and 2013, respectively. | |||||||||||||
Operating_Segments_and_Geograp
Operating Segments and Geographic Information (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Operating Segments & Geographic Information [Abstract] | ' | ||||||||||||
Schedule of Segment Income Statement | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
($ thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||
Revenues: | |||||||||||||
Americas | $ | 127,475 | $ | 116,194 | $ | 386,163 | $ | 391,878 | |||||
Asia Pacific | 78,327 | 79,406 | 301,678 | 281,695 | |||||||||
Japan | 35,519 | 38,984 | 105,764 | 114,815 | |||||||||
Europe | 60,645 | 53,903 | 197,538 | 175,419 | |||||||||
Total segment revenues | 301,966 | 288,487 | 991,143 | 963,807 | |||||||||
Other businesses | 435 | 37 | 607 | 200 | |||||||||
Total consolidated revenues | $ | 302,401 | $ | 288,524 | $ | 991,750 | $ | 964,007 | |||||
Operating income: | |||||||||||||
Americas | $ | 15,094 | $ | 17,969 | $ | 53,451 | $ | 61,787 | |||||
Asia Pacific | 4,384 | 13,690 | 65,962 | 76,478 | |||||||||
Japan | 9,091 | 11,656 | 29,421 | 36,679 | |||||||||
Europe | 9,689 | 6,860 | 29,254 | 31,188 | |||||||||
Total segment operating income | 38,258 | 50,175 | 178,088 | 206,132 | |||||||||
Reconciliation of total segment operating income to income before income taxes: | |||||||||||||
Other businesses | -5,405 | -5,495 | -13,750 | -14,907 | |||||||||
Intersegment eliminations | 15 | 15 | 45 | 45 | |||||||||
Unallocated corporate and other (1) | -31,755 | -26,788 | -104,537 | -85,294 | |||||||||
Total consolidated operating income | 1,113 | 17,907 | 59,846 | 105,976 | |||||||||
Foreign currency transaction losses, net | 1,290 | 1,043 | 4,278 | 4,457 | |||||||||
Interest income | -424 | -853 | -1,304 | -1,676 | |||||||||
Interest expense | 366 | 44 | 685 | 519 | |||||||||
Other (income) expense, net | -217 | 13 | -388 | 180 | |||||||||
Income before income taxes | $ | 98 | $ | 17,660 | $ | 56,575 | $ | 102,496 | |||||
Depreciation and amortization: | |||||||||||||
Americas | $ | 3,439 | $ | 2,690 | $ | 9,126 | $ | 7,663 | |||||
Asia Pacific | 1,219 | 1,244 | 4,094 | 3,722 | |||||||||
Japan | 458 | 346 | 1,161 | 1,122 | |||||||||
Europe | 1,011 | 1,367 | 2,825 | 3,798 | |||||||||
Total segment depreciation and amortization | 6,127 | 5,647 | 17,206 | 16,305 | |||||||||
Other businesses | 1,857 | 2,045 | 5,591 | 6,285 | |||||||||
Unallocated corporate and other (1) | 2,609 | 2,953 | 8,547 | 8,577 | |||||||||
Total consolidated depreciation and amortization | $ | 10,593 | $ | 10,645 | $ | 31,344 | $ | 31,167 | |||||
(1)Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, 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) | 2014 | 2013 | |||||||||||
Assets: | |||||||||||||
Americas | $ | 174,999 | $ | 139,855 | |||||||||
Asia Pacific | 196,795 | 177,343 | |||||||||||
Japan | 45,825 | 51,155 | |||||||||||
Europe | 198,945 | 137,701 | |||||||||||
Total segment current assets | 616,564 | 506,054 | |||||||||||
Other businesses | 14,481 | 14,093 | |||||||||||
Unallocated corporate and other(1) | 80,809 | 63,743 | |||||||||||
Deferred tax assets, net | 4,278 | 4,440 | |||||||||||
Income tax receivable | 19,677 | 10,630 | |||||||||||
Other receivables | 17,196 | 11,942 | |||||||||||
Prepaid expenses and other current assets | 36,717 | 29,175 | |||||||||||
Total current assets | 789,722 | 640,077 | |||||||||||
Property and equipment, net | 73,575 | 86,971 | |||||||||||
Intangible assets, net | 89,599 | 72,315 | |||||||||||
Goodwill | 2,235 | 2,507 | |||||||||||
Deferred tax assets, net | 17,581 | 19,628 | |||||||||||
Other assets | 34,220 | 53,661 | |||||||||||
Total consolidated assets | $ | 1,006,932 | $ | 875,159 | |||||||||
(1)Corporate assets primarily consist of cash and equivalents which increased predominately due to net cash proceeds from our investment with Blackstone. See Note 13 – Series A Preferred Stock for further details regarding the preferred share offering. | |||||||||||||
General_Details
General (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
General [Abstract] | ' |
Inventory write-down reclassification | $2 |
Asset impairment charges reclassification | $0.20 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Finished goods | $197,213 | $154,272 |
Work-in-progress | 289 | 685 |
Raw materials | 5,317 | 7,384 |
Inventories | $202,819 | $162,341 |
Inventory_Narrative_Details
Inventory Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Inventories [Abstract] | ' | ' |
Inventory write-down charges | $1,500,000 | $3,500,000 |
Direct restructuring charges (Note 6) | $583,000 | $2,612,000 |
Summary_of_Property_Equipment_
Summary of Property & Equipment (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Property & Equipment [Abstract] | ' | ' | ||
Machinery and equipment | $52,737 | $52,003 | ||
Leasehold improvements | 97,697 | 93,235 | ||
Furniture, fixtures, and other | 26,396 | 23,653 | ||
Construction-in-progress | 4,012 | 16,231 | ||
Property and equipment, gross | 180,842 | [1] | 185,122 | [1] |
Less: Accumulated depreciation | -107,267 | [2] | -98,151 | [2] |
Property and equipment, net | $73,575 | $86,971 | ||
[1] | Includes $0.1 million and $0.1B million of certain equipment held under capital leases and classified as equipment as of September 30, 2014 and December 31, 2013, respectively. | |||
[2] | Includes $0.1 million and $0.1 million of accumulated depreciation related to certain equipment held under capital leases as of September 30, 2014 and December 31, 2013, respectively, which are depreciated using the straight-line method over the lease term. |
Summary_of_Property_Equipment_1
Summary of Property & Equipment Footnote (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property & Equipment [Abstract] | ' | ' |
Gross equipment held under capital leases | $0.10 | $0.10 |
Depreciation for equipment held under capital leases | $0.10 | $0.10 |
Property_Equipment_Depreciatio
Property & Equipment Depreciation Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Property & Equipment [Abstract] | ' | ' | ' | ' |
Depreciation Expense | $6.40 | $6.20 | $18.10 | $18.20 |
Depreciation Expense Recorded in Cost of Sales | $0.50 | $0.70 | $1.40 | $2.30 |
Asset_Impairments_Details
Asset Impairments (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
store | store | store | |
Asset impairment charges | $2,600 | $5,830 | $202 |
Number of retail stores impaired | 20 | 57 | 1 |
Americas [Member] | ' | ' | ' |
Asset impairment charges | 1,994 | 3,238 | 202 |
Number of retail stores impaired | 10 | 26 | 1 |
Asia Pacific [Member] | ' | ' | ' |
Asset impairment charges | 372 | 817 | ' |
Number of retail stores impaired | 2 | 14 | ' |
Europe [Member] | ' | ' | ' |
Asset impairment charges | $234 | $1,775 | ' |
Number of retail stores impaired | 8 | 17 | ' |
Summary_Of_Goodwill_Intangible
Summary Of Goodwill & Intangible Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amount, Finite-Lived Intangible Assets | $167,460 | $137,850 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -78,211 | -65,633 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | 89,249 | 72,217 | ||
Indefinite lived intangible assets | 350 | 97 | ||
Goodwill | 2,235 | 2,508 | ||
Gross Carrying Amount, Total Intangible Assets | 170,045 | 140,455 | ||
Net Carrying Amount, Total Intangible Assets | 91,834 | 74,822 | ||
Capitalized Software [Member] | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amount, Finite-Lived Intangible Assets | 149,303 | [1] | 118,940 | [1] |
Accumulated Amortization, Finite-Lived Intangible Assets | -62,001 | [2] | -49,665 | [2] |
Net Carrying Amount, Finite-Lived Intangible Assets | 87,302 | 69,275 | ||
Customer Relationships [Member] | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amount, Finite-Lived Intangible Assets | 6,589 | 6,878 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -6,389 | -6,439 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | 200 | 439 | ||
Patents, copyrights and trademarks [Member] | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amount, Finite-Lived Intangible Assets | 6,530 | 6,501 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -4,847 | -4,272 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | 1,683 | 2,229 | ||
Core technology [Member] | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amount, Finite-Lived Intangible Assets | 4,337 | 4,548 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -4,337 | -4,548 | ||
Other [Member] | ' | ' | ||
Intangible Assets [Line Items] | ' | ' | ||
Gross Carrying Amount, Finite-Lived Intangible Assets | 701 | 983 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -637 | -709 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | $64 | $274 | ||
[1] | Includes $4.1B million of software held under a capital lease classified as capitalized software as of September 30, 2014 and December 31, 2013. | |||
[2] | Includes $2.4B million and $1.9B million of accumulated amortization of software held under a capital lease as of September 30, 2014 and December 31, 2013, respectively, which is amortized using the straight-line method over the useful life. |
Recovered_Sheet2
Summary of Goodwill & Intangible Assets Footnote (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Goodwill & Intangible Assets [Abstract] | ' | ' |
Gross Capitalized Software Held Under Capital Lease | $4.10 | $4.10 |
Amortization of Capitalized Software Held Under Capital Lease | $2.40 | $1.90 |
Goodwill_Intangible_Assets_Amo
Goodwill & Intangible Assets Amortization Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Goodwill & Intangible Assets [Abstract] | ' | ' | ' | ' |
Amortization Expense | $4.20 | $4.40 | $13.20 | $13 |
Amortization Expense Recorded in Cost of Sales | $1.60 | $1.60 | $4.70 | $4.70 |
Goodwill_Intangible_Assets_Fut
Goodwill & Intangible Assets Future Amortization Schedule (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill & Intangible Assets [Abstract] | ' | ' |
Remainder of 2014 | $2,936 | ' |
2015 | 18,400 | ' |
2016 | 16,649 | ' |
2017 | 12,303 | ' |
2018 | 10,725 | ' |
Thereafter | 28,236 | ' |
Net Carrying Amount, Finite-Lived Intangible Assets | $89,249 | $72,217 |
Summary_of_Accrued_Expenses_an
Summary of Accrued Expenses and Other Current Liabilities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accrued Expenses And Other Current Liabilities [Abstract] | ' | ' | ||
Accrued compensation and benefits | $29,399 | $26,903 | ||
Professional services | 17,939 | 14,128 | ||
Fulfillment, freight, and duties | 15,839 | 12,565 | ||
Sales/use and VAT tax payable | 13,558 | 9,142 | ||
Accrued rent and occupancy | 9,512 | 12,198 | ||
Customer deposits | 3,964 | 6,940 | ||
Dividend payable | 3,067 | ' | ||
Accrued legal liabilities | 1,191 | 8,722 | ||
Other | 10,673 | [1] | 6,513 | [1] |
Total accrued expenses and other current liabilities | $105,142 | $97,111 | ||
[1] | The amounts in bOtherb consist of various accrued expenses and no individual item accounted for more than 5% of the total balance at September 30, 2014 or December 31, 2013. |
Summary_of_Accrued_Expenses_an1
Summary of Accrued Expenses and Other Current Liabilities Footnote (Details) | Sep. 30, 2014 | Dec. 31, 2013 |
item | item | |
Accrued Expenses And Other Current Liabilities [Abstract] | ' | ' |
Individual Items Accounting For More Than Five Percent Of Balance Of Accrued Expenses | 0 | 0 |
Percent Of Decision Point On Reporting Individual Items In Accrued Expenses | 5.00% | 5.00% |
Restructuring_Narrative_Detail
Restructuring Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
store | ||
Restructuring Activities [Abstract] | ' | ' |
Restructuring charges total | $8,168 | $16,507 |
Minimum number of stores to be closed | ' | 75 |
Maximum number of stores to be closed | ' | 100 |
Restructuring_Costs_by_Type_De
Restructuring Costs by Type (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | ||
Restructuring Activities [Abstract] | ' | ' | ||
Severance costs | $5,358 | $9,811 | ||
Lease / contract exit and related costs | 1,034 | 2,212 | ||
Other | 1,776 | [1] | 4,484 | [1] |
Total restructuring charges | $8,168 | $16,507 | ||
[1] | The amounts in bOtherb consist of various asset impairment charges prompted by the aforementioned restructuring plan, legal fees and facility maintenance fees. |
Restructuring_Costs_by_Segment
Restructuring Costs by Segment (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Total restructuring charges | $8,168 | $16,507 |
Americas [Member] | ' | ' |
Total restructuring charges | 2,058 | 3,282 |
Asia Pacific [Member] | ' | ' |
Total restructuring charges | 3,191 | 3,584 |
Europe [Member] | ' | ' |
Total restructuring charges | 400 | 1,382 |
Corporate Costs [Member] | ' | ' |
Total restructuring charges | $2,519 | $8,259 |
Restructuring_Reserve_Rollforw
Restructuring Reserve Rollforward (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | |
Restructuring charges | $7,585 | $13,895 | |
Employee Severance [Member] | ' | ' | |
Accrued restructuring as of December 31, 2013 | ' | ' | |
Restructuring charges | ' | 9,806 | |
Cash payments | ' | -7,092 | |
Adjustments | ' | -2 | [1] |
Accrued restructuring as of September 30, 2014 | 2,712 | 2,712 | |
Contract Termination [Member] | ' | ' | |
Accrued restructuring as of December 31, 2013 | ' | ' | |
Restructuring charges | ' | 2,255 | |
Cash payments | ' | -1,335 | |
Adjustments | ' | -37 | [1] |
Accrued restructuring as of September 30, 2014 | 883 | 883 | |
Other Restructuring [Member] | ' | ' | |
Accrued restructuring as of December 31, 2013 | ' | ' | |
Restructuring charges | ' | 337 | |
Cash payments | ' | -182 | |
Adjustments | ' | -5 | [1] |
Accrued restructuring as of September 30, 2014 | 150 | 150 | |
Total accrued restructuring [Member] | ' | ' | |
Accrued restructuring as of December 31, 2013 | ' | ' | |
Restructuring charges | ' | 12,398 | |
Cash payments | ' | -8,609 | |
Adjustments | ' | -44 | [1] |
Accrued restructuring as of September 30, 2014 | $3,745 | $3,745 | |
[1] | Adjustments relate to differences resulting from the translation of the liability balance at the balance sheet rate and restructuring expense translated at the weighted-average rate of exchange for the applicable period. |
Retail_Store_Closings_Details
Retail Store Closings (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Property & Equipment [Abstract] | ' |
Accrued liability related to store closures | $1.10 |
Summary_of_Fair_Value_Measurem
Summary of Fair Value Measurements on a Recurring Basis (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Cash equivalents | $108,148 | $37,870 |
Derivative Assets | ' | ' |
Foreign currency contracts assets | 493 | 13,501 |
Derivative Liabilities | ' | ' |
Foreign currency contracts liabilities | ' | 984 |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ' | ' |
Cash equivalents | 108,148 | 37,870 |
Level 2 [Member] | ' | ' |
Derivative Assets | ' | ' |
Foreign currency contracts assets | 493 | 13,501 |
Derivative Liabilities | ' | ' |
Foreign currency contracts liabilities | ' | $984 |
Summary_of_Derivative_Financia
Summary of Derivative Financial Instruments Notional Amounts on Outstanding Positions (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | $140,279 | $220,494 |
Latest maturity date | 1-Oct-14 | 1-Dec-15 |
British Pound Sterling [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 18,426 | 15,487 |
Japanese Yen [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 5,148 | 68,707 |
Singapore Dollar [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 32,424 | 28,225 |
Russian Ruble [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 1,025 | 17,588 |
Euro [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 34,253 | 38,577 |
Mexican Peso [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 11,321 | 18,350 |
Canadian Dollar [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 3,536 | 3,428 |
Australian Dollar [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 6,736 | 4,941 |
Chinese Yuan Renminbi [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 5,421 | ' |
South Korean Won [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 3,888 | 12,100 |
Hong Kong Dollar [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 2,451 | 1,844 |
South African Rand [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 5,158 | 3,076 |
New Taiwan Dollar [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 3,978 | 3,463 |
Indian Rupee [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 2,925 | 2,150 |
Swedish Krona [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 2,071 | 1,615 |
New Zealand Dollar [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | 704 | 943 |
Norwegian Krone [Member] | ' | ' |
Derivative Financial Instruments Notional Amounts [Line Items] | ' | ' |
Total notional value, net | $814 | ' |
Summary_of_GainLoss_on_Derivat
Summary of Gain/Loss on Derivative Instruments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Derivative Financial Instruments [Abstract] | ' | ' | ' | ' |
Foreign currency transaction losses, net | $1,290,000 | $1,043,000 | $4,278,000 | $4,457,000 |
Foreign currency exchange forwards | -2,497,000 | 2,588,000 | 2,711,000 | -8,064,000 |
Foreign currency transaction gains/losses, gross | $3,800,000 | $1,600,000 | $1,600,000 | $12,600,000 |
Revolving_Credit_Facility_Deta
Revolving Credit Facility (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Line of Credit Facility [Abstract] | ' | ' |
Line of Credit Facility, Current Borrowing Capacity | $100,000,000 | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 125,000,000 | ' |
Revolving credit facility | 0 | ' |
Outstanding letters of credit | $8,200,000 | $7,200,000 |
LongTerm_Bank_Borrowings_Narra
Long-Term Bank Borrowings Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Debt Disclosure [Abstract] | ' | ' | ' |
Bank borrowings | $12.90 | $12.90 | $16.80 |
Current maturities of long-term debt | 5.2 | 5.2 | 5.1 |
Minimum interest rate on long-term debt | ' | 2.45% | ' |
Maximum interest rate on long-term debt | ' | 2.79% | ' |
Earliest maturity on long-term debt | ' | 1-Sep-16 | ' |
Latest maturity on long-term debt | ' | 1-Sep-17 | ' |
Long-term debt interest capitalized | $0.10 | $0.30 | ' |
Aggregate_Maturities_of_LongTe
Aggregate Maturities of Long-Term Bank Borrowings (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Debt Disclosure [Abstract] | ' | ' |
Remainder of FY 2014 | $1,296,000 | ' |
FY 2015 | 5,271,000 | ' |
FY 2016 | 4,765,000 | ' |
FY 2017 | 1,610,000 | ' |
FY 2018 | ' | ' |
FY Thereafter | ' | ' |
Total principal debt maturities | $12,900,000 | $16,800,000 |
ShareBased_Compensation_Expens
Share-Based Compensation Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Arrangements with Employees and Nonemployees [Abstract] | ' | ' | ' | ' |
Share-based compensation expense | $2 | $3 | $10.50 | $10.50 |
Capitalized share-based compensation expense | $0 | $0.50 | $0.10 | $0.50 |
Stock_Option_Activity_Details
Stock Option Activity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | ' | ' | ' | ' |
Shares outstanding at beginning of period | 1,875,480 | 2,370,085 | 2,105,152 | 2,621,686 |
Shares granted | 35,000 | 10,000 | 69,000 | 167,000 |
Shares exercised | -64,294 | -87,730 | -255,353 | -291,820 |
Shares forfeited or expired | -94,751 | -63,089 | -167,364 | -267,600 |
Shares outstanding at end of period | 1,751,435 | 2,229,266 | 1,751,435 | 2,229,266 |
Weighted average exercise price of options outstanding at beginning of period | $14.01 | $13.42 | $13.34 | $13.03 |
Weighted average exercise price of options granted | $16.06 | $13.52 | $15.66 | $15.75 |
Weighted average exercise price of options exercised | $5.68 | $6.59 | $5.09 | $6.91 |
Weighted average exercise price of options forfeited or expired | $21.27 | $20.18 | $20.41 | $17.59 |
Weighted average exercise price of options outstanding at end of period | $13.96 | $13.50 | $13.96 | $13.50 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $2 | $3 | $10.50 | $10.50 |
Performance-based Restricted Stock Units [Member] | ' | ' | ' | ' |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' | ' |
Share grants approved in period | ' | ' | 1 | 0.7 |
Time-based Restricted Stock Units [Member] | ' | ' | ' | ' |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' | ' |
Share grants approved in period | ' | ' | 0.3 | 0.4 |
Restricted Stock Units [Member] | ' | ' | ' | ' |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $1.60 | $2.20 | $8.10 | $8.10 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||||
Restricted Stock Awards [Member] | ' | ' | ' | ' | ||||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' | ' | ||||
Nonvested beginning balance | 14,973 | 288,087 | 210,490 | 355,509 | ||||
Granted | ' | ' | 9,973 | 21,590 | ||||
Vested | -2,492 | [1] | -5,396 | [1] | -65,927 | [1] | -83,608 | [1] |
Forfeited or expired | -2,500 | -15,000 | -144,555 | -25,800 | ||||
Nonvested ending balance | 9,981 | 267,691 | 9,981 | 267,691 | ||||
Weighted average grant date fair value beginning balance | $15.61 | $13.32 | $13.43 | $13.37 | ||||
Weighted average grant date fair value of granted | ' | ' | $15.04 | $16.56 | ||||
Weighted average grant date fair value of vested | $15.04 | [1] | $16.56 | [1] | $15.03 | [1] | $14.70 | [1] |
Weighted average grant date fair value of forfeited or expired | $16.75 | $14.34 | $12.67 | $13.57 | ||||
Weighted average grant date fair value ending balance | $15.47 | $13.20 | $15.47 | $13.20 | ||||
Restricted Stock Units [Member] | ' | ' | ' | ' | ||||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | ' | ' | ' | ' | ||||
Nonvested beginning balance | 2,377,221 | 2,456,014 | 1,965,667 | 1,414,661 | ||||
Granted | 44,000 | 26,500 | 1,665,493 | 1,589,614 | ||||
Vested | -16,165 | [2] | -8,231 | [2] | -504,054 | [2] | -295,215 | [2] |
Forfeited or expired | -186,840 | -90,285 | -908,890 | -325,062 | ||||
Nonvested ending balance | 2,218,216 | 2,383,998 | 2,218,216 | 2,383,998 | ||||
Weighted average grant date fair value beginning balance | $15.93 | $16.72 | $16.50 | $20.61 | ||||
Weighted average grant date fair value of granted | $15.40 | $13.52 | $16.22 | $15.01 | ||||
Weighted average grant date fair value of vested | $20.79 | [2] | $24.17 | [2] | $17.90 | [2] | $22.32 | [2] |
Weighted average grant date fair value of forfeited or expired | $15.95 | $18.08 | $16.70 | $21.10 | ||||
Weighted average grant date fair value ending balance | $15.89 | $16.59 | $15.89 | $16.59 | ||||
[1] | The RSAs vested during the three and nine months ended September 30, 2014 and 2013 consisted entirely of time-based awards. | |||||||
[2] | The RSUs vested during the three months ended September 30, 2014 and 2013 consisted entirely of time-based awards. The RSUs vested during the nine months ended September 30, 2014 consisted of 473,108 of time-based awards and 30,946 of performance-based awards. The RSUs vested during the nine months ended September 30, 2013 consisted of 242,927 of time-based awards and 52,288 of performance-based awards. |
Schedule_Of_Restricted_Stock_A1
Schedule Of Restricted Stock Award and Restricted Stock Unit Activity Footnote (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||||
Restricted Stock Awards [Member] | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Vested | 2,492 | [1] | 5,396 | [1] | 65,927 | [1] | 83,608 | [1] |
Restricted Stock Units [Member] | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Vested | 16,165 | [2] | 8,231 | [2] | 504,054 | [2] | 295,215 | [2] |
Time-based Restricted Stock Units [Member] | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Vested | ' | ' | 473,108 | 242,927 | ||||
Performance-based Restricted Stock Units [Member] | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ||||
Vested | ' | ' | 30,946 | 52,288 | ||||
[1] | The RSAs vested during the three and nine months ended September 30, 2014 and 2013 consisted entirely of time-based awards. | |||||||
[2] | The RSUs vested during the three months ended September 30, 2014 and 2013 consisted entirely of time-based awards. The RSUs vested during the nine months ended September 30, 2014 consisted of 473,108 of time-based awards and 30,946 of performance-based awards. The RSUs vested during the nine months ended September 30, 2013 consisted of 242,927 of time-based awards and 52,288 of performance-based awards. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Income Taxes [Abstract] | ' | ' | ' | ' | ' |
Income tax (benefit) expense | ($15,669,000) | $4,624,000 | $8,407,000 | $25,143,000 | ' |
Income before taxes | 98,000 | 17,660,000 | 56,575,000 | 102,496,000 | ' |
Unrecognized tax benefits | $12,200,000 | ' | $12,200,000 | ' | $31,600,000 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income attributable to common shareholders | $12,009 | $13,036 | $37,905 | $77,353 |
Less: adjustment for income allocated to participating securities | -1,684 | -41 | -5,229 | -276 |
Net income attributable to common stockholders - basic and diluted | $10,325 | $12,995 | $32,676 | $77,077 |
Weighted average common shares outstanding - basic | 84,659 | 88,109 | 86,582 | 87,919 |
Plus: dilutive effect of stock options and unvested restricted stock units | 778 | 799 | 1,137 | 971 |
Weighted average common shares outstanding - diluted | 85,437 | 88,908 | 87,719 | 88,890 |
Basic | $0.12 | $0.15 | $0.38 | $0.88 |
Diluted | $0.12 | $0.15 | $0.37 | $0.87 |
Earnings_Per_Share_Summary_Nar
Earnings Per Share Summary Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Anti-dilutive options and RSUs not included in the calculation of diluted income (loss) per share | 800,000 | 1,400,000 | 1,100,000 | 1,400,000 |
Percentage of common stock if-converted Series A preferred stock | ' | ' | 14.30% | ' |
Anti-dilutive Series A preferred shares not included in the calculation of EPS | ' | ' | 13,793,100 | ' |
Stock_Repurchase_Plan_Authoriz
Stock Repurchase Plan Authorizations (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Earnings Per Share [Abstract] | ' | ' |
Amount authorized for repurchase under share repurchase authorization | ' | $350 |
Number of shares repurchased | 2.9 | 6.1 |
Weighted Average Price Of Shares Repurchased | $14.74 | $14.76 |
Value for shares repurchased | 43 | 89.9 |
Subsequent number of shares repurchased | ' | 0.5 |
Subsequent weighted average price of shares repurchased | ' | $12.15 |
Subsequent value for shares repurchased | ' | $5.70 |
Series_A_Preferred_Stock_Detai
Series A Preferred Stock (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Series A Preferred Stock [Abstract] | ' | ' |
Series A preferred shares, issued and outstanding | 200,000 | 200,000 |
Gross purchase price | $198,000,000 | ' |
Gross purchase price per share | $990 | ' |
Net proceeds from sale of series A preferred stock | 182,200,000 | ' |
Issuance discount | 2,000,000 | ' |
Direct issuance expenses | 15,800,000 | ' |
Stated value of preferred shares per share | $1,000 | ' |
Dividend rate | 6 | ' |
Penalty dividend rate | 8 | ' |
Accrued dividends | 3,067,000 | ' |
Conversion price per share at option of holder | $14.50 | ' |
Conversion price per share at option of company | $29 | ' |
Anti-dilutive Series A preferred shares not included in the calculation of EPS | 13,793,100 | ' |
Series A preferred shares, redemption value | $203,000,000 | ' |
Operating_Lease_Rental_Expense
Operating Lease Rental Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Operating Leases Rent Expense [Abstract] | ' | ' | ' | ' | ||||
Minimum rentals | $26,629 | [1] | $26,047 | [1] | $82,307 | [1] | $75,093 | [1] |
Contingent rentals | 4,952 | 5,596 | 14,635 | 15,240 | ||||
Less: Sublease rentals | -261 | -158 | -736 | -469 | ||||
Total rent expense | $31,320 | $31,485 | $96,206 | $89,864 | ||||
[1] | Minimum rentals include all lease payments as well as fixed and variable common area maintenance (bCAMb), parking and storage fees, which were approximately $2.3 million and $2.5 million during the three months ended September 30, 2014 and 2013, respectively, and $7.3 million and $7.4 million during the nine months ended September 30, 2014 and 2013, respectively. |
Operating_Lease_Rental_Expense1
Operating Lease Rental Expense Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Operating Leases Rent Expense [Abstract] | ' | ' | ' | ' |
CAM, parking and storage fees related to rent expense | $2.30 | $2.50 | $7.30 | $7.40 |
Purchase_Commitments_Details
Purchase Commitments (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Commitments & Contingencies [Abstract] | ' |
Purchase commitments with third party manufacturers | $165.70 |
Operating_Segments_and_Geograp1
Operating Segments and Geographic Information Income Statement (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | $302,401 | $288,524 | $991,750 | $964,007 | ||||
Income from operations | 1,113 | 17,907 | 59,846 | 105,976 | ||||
Interest income | -424 | -853 | -1,304 | -1,676 | ||||
Interest expense | 366 | 44 | 685 | 519 | ||||
Foreign currency transaction losses, net | 1,290 | 1,043 | 4,278 | 4,457 | ||||
Other (income) expense, net | -217 | 13 | -388 | 180 | ||||
Income before income taxes | 98 | 17,660 | 56,575 | 102,496 | ||||
Depreciation and amortization | 10,593 | 10,645 | 31,344 | 31,167 | ||||
Intersegment eliminations [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Income from operations | 15 | 15 | 45 | 45 | ||||
Significant Reconciling Items [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Income from operations | -31,755 | [1] | -26,788 | [1] | -104,537 | [1] | -85,294 | [1] |
Depreciation and amortization | 2,609 | [1] | 2,953 | [1] | 8,547 | [1] | 8,577 | [1] |
Americas [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 127,475 | 116,194 | 386,163 | 391,878 | ||||
Income from operations | 15,094 | 17,969 | 53,451 | 61,787 | ||||
Depreciation and amortization | 3,439 | 2,690 | 9,126 | 7,663 | ||||
Asia Pacific [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 78,327 | 79,406 | 301,678 | 281,695 | ||||
Income from operations | 4,384 | 13,690 | 65,962 | 76,478 | ||||
Depreciation and amortization | 1,219 | 1,244 | 4,094 | 3,722 | ||||
Japan [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 35,519 | 38,984 | 105,764 | 114,815 | ||||
Income from operations | 9,091 | 11,656 | 29,421 | 36,679 | ||||
Depreciation and amortization | 458 | 346 | 1,161 | 1,122 | ||||
Europe [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 60,645 | 53,903 | 197,538 | 175,419 | ||||
Income from operations | 9,689 | 6,860 | 29,254 | 31,188 | ||||
Depreciation and amortization | 1,011 | 1,367 | 2,825 | 3,798 | ||||
Total Segment Revenues [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 301,966 | 288,487 | 991,143 | 963,807 | ||||
Total Segment Operating Income [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Income from operations | 38,258 | 50,175 | 178,088 | 206,132 | ||||
Total Segment Depreciation And Amortization [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Depreciation and amortization | 6,127 | 5,647 | 17,206 | 16,305 | ||||
Other businesses [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Revenues | 435 | 37 | 607 | 200 | ||||
Income from operations | -5,405 | -5,495 | -13,750 | -14,907 | ||||
Depreciation and amortization | $1,857 | $2,045 | $5,591 | $6,285 | ||||
[1] | Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, 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_Geograp2
Operating Segments and Geographic Information Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current deferred tax assets | $4,278 | $4,440 | ||
Income tax receivable | 19,677 | 10,630 | ||
Other receivables | 17,196 | 11,942 | ||
Prepaid expenses and other current assets | 36,717 | 29,175 | ||
Total current assets | 789,722 | 640,077 | ||
Property and equipment, net | 73,575 | 86,971 | ||
Intangible assets, net | 89,599 | 72,315 | ||
Goodwill | 2,235 | 2,507 | ||
Total non-current deferred tax assets | 17,581 | 19,628 | ||
Other assets | 34,220 | 53,661 | ||
Total assets | 1,006,932 | 875,159 | ||
Americas [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current assets | 174,999 | 139,855 | ||
Asia Pacific [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current assets | 196,795 | 177,343 | ||
Japan [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current assets | 45,825 | 51,155 | ||
Europe [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current assets | 198,945 | 137,701 | ||
Total Segment Current Assets [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current assets | 616,564 | 506,054 | ||
Other businesses [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current assets | 14,481 | 14,093 | ||
Significant Reconciling Items [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Total current assets | $80,809 | [1] | $63,743 | [1] |
[1] | Corporate assets primarily consist of cash and equivalents which increased predominately due to net cash proceeds from our investment with Blackstone. See Note 13 - Series A Preferred Stock for further details regarding the preferred share offering. |
Operating_Segments_and_Geograp3
Operating Segments and Geographic Information General (Details) | 9 Months Ended |
Sep. 30, 2014 | |
segment | |
Operating Segments & Geographic Information [Abstract] | ' |
Number of Reportable Segments | 4 |
Legal_Proceedings_Details
Legal Proceedings (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Legal Proceedings [Abstract] | ' |
Legal Settlement Accrual | $4.20 |
Minimum Reasonably Possible Loss | 0 |
Maximum Reasonably Possible Loss | $9.60 |