Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document And Entity Information[Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 | |
Entity Registrant Name | Crocs, Inc. | |
Entity Central Index Key | 1334036 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Common stock outstanding | 76,982,807 | |
Trading Symbol | crox |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidated Statements Of Operations [Abstract] | ||
Revenues | $262,193 | $312,429 |
Cost of sales | 134,823 | 156,202 |
Gross profit | 127,370 | 156,227 |
Selling, general and administrative expenses | 126,069 | 137,155 |
Restructuring charges (Note 5) | 3,663 | 2,250 |
Income (loss) from operations | -2,362 | 16,822 |
Foreign currency transaction gain (loss), net | 494 | -2,768 |
Interest income | 288 | 477 |
Interest expense | -219 | -191 |
Other (income) expense, net | -331 | 141 |
Income (loss) before income taxes | -2,130 | 14,481 |
Income tax expense | -295 | -5,357 |
Net income (loss) | -2,425 | 9,124 |
Dividends on Series A convertibles preferred shares (Note 12) | -2,833 | -2,133 |
Dividend equivalents on Series A convertible preferred shares related to redemption value accretion and beneficial conversion feature (Note 12) | -721 | -618 |
Net income (loss) attributable to common stockholders | ($5,979) | $6,373 |
Net income (loss) per common share (Note 11): | ||
Basic | ($0.08) | $0.06 |
Diluted | ($0.08) | $0.06 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||
Net income (loss) | ($2,425) | $9,124 |
Other comprehensive income (loss): | ||
Loss on Foreign currency translation | -23,864 | -980 |
Total comprehensive income (loss) | ($26,289) | $8,144 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $180,698 | $267,512 | ||
Accounts receivable, net of allowances of $33,745 and $32,392, respectively | 174,099 | 101,217 | ||
Inventories | 184,720 | 171,012 | ||
Deferred tax assets, net | 3,971 | 4,190 | ||
Income tax receivable | 11,833 | 9,332 | ||
Other receivables | 11,775 | 11,989 | ||
Prepaid expenses and other current assets | 27,056 | 30,156 | ||
Total current assets | 594,152 | 595,408 | ||
Property and equipment, net | 68,277 | 68,288 | ||
Intangible assets, net | 89,384 | 97,337 | ||
Goodwill | 2,227 | [1] | 2,044 | [1] |
Deferred tax assets, net | 17,536 | 17,886 | ||
Other assets | 23,640 | 25,968 | ||
Total assets | 795,216 | 806,931 | ||
Current liabilities: | ||||
Accounts payable | 81,455 | 42,923 | ||
Accrued expenses and other current liabilities | 83,887 | 80,216 | ||
Deferred tax liabilities, net | 11,853 | 11,869 | ||
Accrued restructuring | 4,708 | 4,511 | ||
Income taxes payable | 6,186 | 9,078 | ||
Current portion of long-term borrowings and capital lease obligations | 5,284 | 5,288 | ||
Total current liabilities | 193,373 | 153,885 | ||
Long term income tax payable | 7,832 | 8,843 | ||
Long-term borrowings and capital lease obligations | 5,074 | 6,381 | ||
Long-term accrued restructuring | 244 | 348 | ||
Other liabilities | 9,753 | 12,277 | ||
Total liabilities | 216,276 | 181,734 | ||
Commitments and contingencies (Note 13) | ||||
Series A convertible preferred shares, par value $0.001 per share, 1,000,000 shares authorized, 200,000 shares issued and outstanding, redemption amount and liquidation preference of $202,833 and $203,067 as of March 31, 2015 and December 31, 2014, respectively (Note 12) | 173,400 | 172,679 | ||
Stockholders' equity: | ||||
Preferred stock, par value $0.001 per share, 4,000,000 shares authorized, none outstanding | ||||
Common stock, par value $0.001 per share, 250,000,000 shares authorized, 92,771,653 and 77,222,053 shares issued and outstanding, respectively, as of March 31, 2015 and 92,325,201 and 78,516,566 shares issued and outstanding, respectively, as of December 31, 2014 | 93 | 92 | ||
Treasury stock, at cost, 15,549,600 and 13,808,635 shares as of March 31, 2015 and December 31, 2014, respectively | -220,635 | -200,424 | ||
Additional paid-in capital | 348,807 | 345,732 | ||
Retained earnings | 319,491 | 325,470 | ||
Accumulated other comprehensive loss | -42,216 | -18,352 | ||
Total stockholders' equity | 405,540 | 452,518 | ||
Total liabilities, commitments and contingencies and stockholders' equity | $795,216 | $806,931 | ||
[1] | Change in goodwill relates entirely to foreign currency translation. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets [Abstract] | ||
Allowances | $33,745 | $32,392 |
Series A preferred shares, par value | $0.00 | $0.00 |
Series A preferred shares, shares authorized | 1,000,000 | 1,000,000 |
Series A preferred shares, issued and outstanding | 200,000 | 200,000 |
Series A preferred shares, redemption value and liquidation preference | $202,833 | $203,067 |
Preferred shares, par value | $0.00 | $0.00 |
Preferred shares, authorized | 4,000,000 | 4,000,000 |
Preferred shares, outstanding | 0 | 0 |
Common shares, par value | $0.00 | $0.00 |
Common shares, authorized | 250,000,000 | 250,000,000 |
Common shares, issued | 92,771,653 | 92,325,201 |
Common shares, outstanding | 77,222,053 | 78,516,566 |
Treasury stock, shares | 15,549,600 | 13,808,635 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income (loss) | ($2,425) | $9,124 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 9,719 | 9,373 |
Unrealized gain on foreign exchange, net | -1,751 | -5,708 |
Provision for doubtful accounts, net | 1,272 | 768 |
Share based compensation | 2,949 | 4,621 |
Other non-cash items | 219 | 49 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -78,436 | -103,188 |
Inventories | -18,955 | -30,484 |
Prepaid expenses and other assets | 2,541 | 2,514 |
Accounts payable | 42,783 | 31,675 |
Accrued expenses and other liabilities | 2,322 | 18,693 |
Accrued restructuring | 306 | 2,250 |
Income taxes | -7,256 | -2,425 |
Cash used in operating activities | -46,712 | -62,738 |
Cash flows from investing activities: | ||
Cash paid for purchases of property and equipment | -1,340 | -5,089 |
Cash paid for intangible assets | -5,145 | -10,247 |
Change in restricted cash | 272 | -583 |
Cash used in investing activities | -6,213 | -15,919 |
Cash flows from financing activities: | ||
Proceeds from preferred stock offering, net of issuance costs of $0.0 million and $15.8 million, respectively | 182,220 | |
Dividends - Series A preferred stock | -3,067 | |
Repayment of bank borrowings and capital lease obligations | -1,309 | -1,295 |
Issuances of common stock | 174 | 518 |
Purchase of treasury stock | -19,997 | -13,031 |
Repurchase of common stock for tax withholding | -261 | -669 |
Cash provided by (used in) financing activities | -24,460 | 167,743 |
Effect of exchange rate changes on cash | -9,429 | 5,576 |
Net increase (decrease) in cash and cash equivalents | -86,814 | 94,662 |
Cash and cash equivalents - beginning of period | 267,512 | 317,144 |
Cash and cash equivalents - end of period | 180,698 | 411,806 |
Supplemental disclosure of cash flow information-cash paid during the period for: | ||
Interest, net of capitalized interest | 616 | 152 |
Income taxes | 7,101 | 7,213 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Accrued purchases of property and equipment | 363 | 1,612 |
Accrued purchases of intangibles | 68 | 5,088 |
Accrued dividends | 2,833 | 2,133 |
Accretion of dividend equivalents | $721 | $618 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidated Statements Of Cash Flows [Abstract] | ||
Series A preferred share issuance costs | $0 | $15.80 |
Organization_Summary_Of_Signif
Organization & Summary Of Significant Accounting Policies | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Organization & Summary Of Significant Accounting Policies [Abstract] | ||||
Organization & Summary Of Significant Accounting Policies | 1 | ORGANIZATION & SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Organization—Crocs, Inc. and its subsidiaries (collectively the “Company,” “we,” “our” or “us”) are engaged in the design, development, manufacturing, marketing and distribution of footwear, apparel and accessories for men, women and children. | ||||
Basis of 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, 2014 was derived from the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 Form 10-K”) but does not include all disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements and these notes thereto should be read in conjunction with the 2014 Form 10-K. In the opinion of management, these financial statements reflect all adjustments (consisting solely of normal recurring matters) considered necessary for a fair statement 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 year amounts on the condensed consolidated financial statements have been reclassified to conform to current period presentation. We segregated certain restructuring charges recorded to selling, general and administrative expenses on the condensed consolidated statement of operations for the three months ended March 31, 2014 to the restructuring charges line item on the condensed consolidated statement of operations. In addition, we segregated certain accrued restructuring liabilities on the condensed consolidated statement of cash flows for the three months ended March 31, 2014 to the accrued restructuring line on the condensed consolidated statements of cash flows for the three months ended March 31, 2014. These reclassifications had no effect on income from operations, current liabilities or cash provided by (used in) operating activities. | ||||
Summary of Significant Accounting Policies | ||||
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 11—Earnings Per Share for further discussion. | ||||
Depreciation and Amortization | ||||
During the three months ended March 31, 2015 and 2014, we recorded $4.7 million and $5.4 million, respectively, in depreciation expense of which $0.6 million and $0.5 million, respectively, was recorded in ‘Cost of sales,’ with the remaining amounts recorded in ‘Selling, general and administrative expenses’ on the condensed consolidated statements of operations. As of March 31, 2015 and December 31, 2014, accumulated depreciation was $106.1 million and $99.8 million, respectively. | ||||
Recently Issued Accounting Pronouncements | ||||
Debt Issuance Costs | ||||
In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03 – Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU requires retrospective adoption and will be effective for us beginning in our first quarter of 2016. Early adoption is permitted. We do not expect that this pronouncement will have a material impact on our consolidated financial statements. | ||||
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.” This ASU is effective for annual periods ending after December 16, 2016, and interim periods thereafter. Early adoption is permitted. We do not expect that this pronouncement will have a material impact on our financial statement disclosures. | ||||
Share-Based Payment | ||||
On June 19, 2014, the FASB issued ASU 2014-12 in response to the EITF consensus on Issue 13-D. The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. This ASU is effective for all entities for reporting periods (including interim periods) beginning after December 15, 2015. We do not expect that this pronouncement will have a material impact on our 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 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. We are currently evaluating the impact that this pronouncement will have on our consolidated financial statements. | ||||
Inventories
Inventories | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Inventories [Abstract] | |||||||
Inventories | 2. INVENTORIES | ||||||
The following table summarizes inventories by major classification as of March 31, 2015 and December 31, 2014: | |||||||
As of | As of | ||||||
31-Mar-15 | 31-Dec-14 | ||||||
($ thousands) | |||||||
Finished goods | $ | 179,849 | $ | 167,515 | |||
Work-in-progress | 518 | 703 | |||||
Raw materials | 4,353 | 2,794 | |||||
Inventories | $ | 184,720 | $ | 171,012 | |||
Goodwill_Intangible_Assets
Goodwill & Intangible Assets | 3 Months Ended | |||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||||||
Goodwill & Intangible Assets [Abstract] | ||||||||||||||||||||||||||||||||||||
Goodwill & Intangible Assets | 3. GOODWILL & INTANGIBLE ASSETS | |||||||||||||||||||||||||||||||||||
The following table summarizes the goodwill and identifiable intangible assets as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||||||||||||||
($ thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
Capitalized software | $ | 159,357 | -1 | $ | -71,815 | -2 | $ | 87,542 | $ | 157,615 | -1 | $ | -62,591 | -2 | $ | 95,024 | ||||||||||||||||||||
Customer relationships | 5,026 | -5,026 | — | 5,945 | -5,798 | 147 | ||||||||||||||||||||||||||||||
Patents, copyrights, and trademarks | 6,114 | -4,713 | 1,401 | 6,702 | -4,931 | 1,771 | ||||||||||||||||||||||||||||||
Core technology | 4,170 | -4,170 | — | 4,170 | -4,170 | — | ||||||||||||||||||||||||||||||
Other | 434 | -290 | 144 | 698 | -636 | 62 | ||||||||||||||||||||||||||||||
Total finite lived intangible assets | 175,101 | -86,014 | 89,087 | 175,130 | -78,126 | 97,004 | ||||||||||||||||||||||||||||||
Indefinite lived intangible assets | 297 | — | 297 | 333 | — | 333 | ||||||||||||||||||||||||||||||
Goodwill(3) | 2,227 | — | 2,227 | 2,044 | — | 2,044 | ||||||||||||||||||||||||||||||
Goodwill and intangible assets | $ | 177,625 | $ | -86,014 | $ | 91,611 | $ | 177,507 | $ | -78,126 | $ | 99,381 | ||||||||||||||||||||||||
(1)Includes $4.1 million of software held under a capital lease classified as capitalized software as of each of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||||||||||||||
(2)Includes $2.6 million and $2.5 million of accumulated amortization of software held under a capital lease as of March 31, 2015 and December 31, 2014, respectively, which is amortized using the straight-line method over the useful life. | ||||||||||||||||||||||||||||||||||||
(3)Change in goodwill relates entirely to foreign currency translation. | ||||||||||||||||||||||||||||||||||||
The following table summarizes estimated future annual amortization of intangible assets as of March 31, 2015: | ||||||||||||||||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||||||||||||||
Fiscal years ending March 31, | ($ thousands) | |||||||||||||||||||||||||||||||||||
Remainder of 2015 | $ | 13,925 | ||||||||||||||||||||||||||||||||||
2016 | 17,144 | |||||||||||||||||||||||||||||||||||
2017 | 15,480 | |||||||||||||||||||||||||||||||||||
2018 | 13,361 | |||||||||||||||||||||||||||||||||||
2019 | 11,324 | |||||||||||||||||||||||||||||||||||
Thereafter | 17,853 | |||||||||||||||||||||||||||||||||||
Total | $ | 89,087 | ||||||||||||||||||||||||||||||||||
During the three months ended March 31, 2015 and 2014, amortization expense recorded for intangible assets with finite lives was $5.0 million and $4.0 million, respectively, of which $1.4 million and $1.3 million, respectively, was recorded in ‘Cost of sales,’ with the remaining amounts recorded in ‘Selling, general and administrative expenses’ on the condensed consolidated statements of operations. As of March 31, 2015 and December 31, 2014, accumulated amortization was $86.0 million and $78.1 million, respectively. | ||||||||||||||||||||||||||||||||||||
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Accrued Expenses And Other Current Liabilities [Abstract] | |||||||
Accrued Expenses And Other Current Liabilities | 4. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||||||
The following table summarizes accrued expenses and other current liabilities as of March 31, 2015 and December 31, 2014: | |||||||
As of | As of | ||||||
31-Mar-15 | 31-Dec-14 | ||||||
($ thousands) | |||||||
Accrued compensation and benefits | $ | 25,737 | $ | 23,824 | |||
Professional services | 13,373 | 16,212 | |||||
Fulfillment, freight and duties | 15,884 | 12,110 | |||||
Sales/use and VAT tax payable | 6,439 | 5,897 | |||||
Accrued rent and occupancy | 7,813 | 9,675 | |||||
Customer deposits | 3,545 | 3,075 | |||||
Deferred revenue and royalties payable | 3,155 | 2,005 | |||||
Dividend payable | 2,833 | 3,067 | |||||
Accrued legal liabilities | 629 | 2,150 | |||||
Other (1) | 4,479 | 2,201 | |||||
Total accrued expenses and other current liabilities | $ | 83,887 | $ | 80,216 | |||
-1 | The amounts in ‘Other’ consist of various accrued expenses and no individual item accounted for more than 5% of the total balance as of March 31, 2015 or December 31, 2014. | ||||||
Restructuring_Activities
Restructuring Activities | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Restructuring Activities [Abstract] | |||||||||||||||||
Restructuring Activities | 5. RESTRUCTURING ACTIVITIES | ||||||||||||||||
Restructuring | |||||||||||||||||
On July 21, 2014, we announced strategic plans for long-term improvement and growth of the business. These plans comprise four key initiatives including: (1) streamlining the global product and marketing portfolio, (2) reducing direct investment in smaller geographic markets, (3) creating a more efficient organizational structure including reducing duplicative and excess overhead which will also enhance the decision making process, and (4) closing or converting approximately 75 to 100 retail locations around the world. The initial effects of these plans were incurred in 2014 and are expected to continue throughout 2015. We recorded restructuring charges of $3.7 million during the three months ended March 31, 2015, and closed 9 retail locations which were identified in the initial restructuring plan. During 2015, we currently estimate additional restructuring costs related to store closures and changes in organizational structure of approximately $10 million to $20 million, but can make no assurance that actual costs will not differ, as our restructuring plans are not yet complete. | |||||||||||||||||
The following table summarizes our restructuring activity during the three months ended March 31, 2015 and 2014: | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
($ thousands) | |||||||||||||||||
Severance costs | $ | 2,074 | $ | 1,584 | |||||||||||||
Lease / contract exit and related costs | 1,399 | 606 | |||||||||||||||
Other (1) | 190 | 60 | |||||||||||||||
Total restructuring charges | $ | 3,663 | $ | 2,250 | |||||||||||||
(1)The amounts in ‘Other’ consist of various asset and inventory impairment charges prompted by the aforementioned restructuring plan, legal fees and facility maintenance fees. | |||||||||||||||||
The following table summarizes our restructuring activity during the three months ended March 31, 2015 and 2014 by reportable segment: | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
($ thousands) | |||||||||||||||||
Americas | $ | 456 | $ | — | |||||||||||||
Asia Pacific | 1,774 | — | |||||||||||||||
Europe | 1,141 | 675 | |||||||||||||||
Corporate | 292 | 1,575 | |||||||||||||||
Total restructuring charges | $ | 3,663 | $ | 2,250 | |||||||||||||
The following table summarizes our accrued restructuring balance and associated activity from December 31, 2014 through March 31, 2015 ($ thousands): | |||||||||||||||||
As of | Additions | Cash Payments | Adjustments (1) | As of | |||||||||||||
31-Dec-14 | 31-Mar-15 | ||||||||||||||||
Severance | $ | 3,154 | $ | 2,074 | $ | -1,904 | $ | — | $ | 3,324 | |||||||
Lease / contract exit and related costs | 1,401 | 1,399 | -1,590 | — | 1,210 | ||||||||||||
Other | 304 | 190 | -75 | -1 | 418 | ||||||||||||
Total accrued restructuring | $ | 4,859 | $ | 3,663 | $ | -3,569 | $ | -1 | $ | 4,952 | |||||||
(1)Adjustments relate to a reversal of accrued expenses, differences resulting from the translation of the liability balance as of the balance sheet rate and restructuring expense translated at the weighted-average rate of exchange for the applicable period. | |||||||||||||||||
Retail Store Closings | |||||||||||||||||
As mentioned above, the Company plans to close additional retail locations around the globe. As such, we expect to incur certain exit costs specific to store closures including operating lease termination costs, rent obligations for leased facilities, net of expected sublease income, and other expenses in association with this plan, such as severance for retail and non-retail related positions. During the three months ended March 31, 2015, we closed 9 company-operated retail locations which were identified in the initial restructuring plan, and were selected for closure by management based on historical and projected profitability levels, relocation plans, and other factors. As of March 31, 2015 and December 31, 2014, we had a liability of approximately $5.0 million and $4.9 million, respectively, related to locations to be closed and other reductions in workforce 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 | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 6. FAIR VALUE MEASUREMENTS |
Recurring Fair Value Measurements | |
As of March 31, 2015 and December 31, 2014, our assets subject to fair value measurements consisted solely of cash equivalents of $13.0 million and $23.3 million, respectively. | |
Non-Recurring Fair Value Measurements | |
The majority of our non-financial instruments, which include inventories, property and equipment and intangible assets, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur such that a non-financial instrument is required to be evaluated for impairment and the carrying value is not recoverable, the carrying value would be adjusted to the lower of its cost or fair value and an impairment charge would be recorded. No such charges were recorded for the three months ended March 31, 2015 or 2014. | |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Derivative Financial Instruments [Abstract] | |||||||||
Derivative Financial Instruments | |||||||||
7. DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||
We transact business in various foreign countries and are therefore exposed to foreign currency exchange rate risk inherent in revenues, costs, and monetary assets and liabilities denominated in non-functional currencies. We have entered into foreign currency exchange forward contract and currency swap derivative instruments to selectively protect against volatility in the value of non-functional currency denominated monetary assets and liabilities, and of future cash flows caused by changes in foreign currency exchange rates. We do not designate these derivative instruments as hedging instruments under the accounting standards for derivatives and hedging. Accordingly, these instruments are recorded at fair value as a derivative asset or liability on the balance sheet with their corresponding change in fair value recognized in ‘Foreign currency transaction gain (loss), net’ in our condensed consolidated statements of operations. For purposes of the cash flow statement, we classify the cash flows at settlement from undesignated instruments in the same category as the cash flows from the related hedged items, generally within ‘Cash provided by operating activities.’ | |||||||||
The following table summarizes the notional amounts of the outstanding foreign currency exchange contracts as of March 31, 2015 and December 31, 2014. The notional amounts of the derivative financial instruments shown below are denominated in their U.S. Dollar equivalents and represent the amount of all contracts of the foreign currency specified. These notional values do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of our exposure to the foreign currency exchange risks. | |||||||||
As of | As of | ||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Foreign currency exchange forward contracts by currency: | ($ thousands) | ||||||||
Japanese Yen | $ | 93,301 | $ | 44,533 | |||||
Singapore Dollar | 59,843 | 61,887 | |||||||
Euro | 26,924 | 134,755 | |||||||
South Korean Won | 25,223 | 14,590 | |||||||
British Pound Sterling | 20,931 | 17,230 | |||||||
Mexican Peso | 12,923 | 13,180 | |||||||
South African Rand | 7,023 | 4,355 | |||||||
Australian Dollar | 5,747 | 7,913 | |||||||
Indian Rupee | 4,919 | 3,356 | |||||||
Chinese Yuan Renminbi | 4,352 | 5,376 | |||||||
Canadian Dollar | 3,474 | 3,005 | |||||||
Russian Ruble | 2,876 | 1,838 | |||||||
New Taiwan Dollar | 2,494 | 3,229 | |||||||
Hong Kong Dollar | 1,892 | 814 | |||||||
Swedish Krona | 1,572 | 1,918 | |||||||
Brazilian Real | 1,005 | — | |||||||
New Zealand Dollar | 709 | 743 | |||||||
Norwegian Krone | — | 917 | |||||||
Total notional value, net | $ | 275,208 | $ | 319,639 | |||||
Latest maturity date | Apr-15 | Jan-15 | |||||||
The following table presents the amounts affecting the condensed consolidated statements of operations from derivative instruments for the three months ended March 31, 2015 and 2014: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | Location of Gain (Loss) Recognized in Income on Derivatives | |||||||
Derivatives not designated as hedging instruments: | ($ thousands) | ||||||||
Foreign currency exchange forwards | $ | 5,723 | $ | 1,838 | Foreign currency transaction (gains) losses, net | ||||
The account ‘Foreign currency transaction gain (loss), net’ on the condensed consolidated statements of operations includes both realized and unrealized gains/losses from underlying foreign currency activity and derivative contracts. These gains and losses are reported on a net basis. For the three months ended March 31, 2015, the net gain recognized of $0.5 million recorded on the condensed consolidated statements of operations was comprised of a $6.2 million net gain associated with exposure from day-to-day business transactions in various foreign currencies and a $5.7 million net loss associated with our derivative instruments. For the three months ended March 31, 2014, the net loss recognized of $2.8 million recorded on the condensed consolidated statements of operations was comprised of a $1.8 million net loss associated with our derivative instruments and a $1.0 million net loss associated with exposure from day-to-day business transactions in various foreign currencies. | |||||||||
Revolving_Credit_Facility_Bank
Revolving Credit Facility & Bank Borrowings | 3 Months Ended |
Mar. 31, 2015 | |
Revolving Credit Facility & Bank Borrowings [Abstract] | |
Revolving Credit Facility & Bank Borrowings | 8. REVOLVING CREDIT FACILITY & BANK BORROWINGS |
Revolving Credit Facility | |
On September 25, 2009, we entered into a Revolving Credit and Security Agreement (the “Credit Agreement”) with the lenders named therein and PNC Bank, National Association ("PNC"), as a lender and administrative agent for the lenders. | |
On April 2, 2015, we entered into the Sixth Amendment to Amended and Restated Credit Agreement (the “Sixth Amendment”), pursuant to which certain terms of the Credit Agreement were amended. The Sixth Amendment primarily amended certain definitions of the financial covenants to become more favorable to us including (i) setting the minimum fixed charge coverage ratio to 1.00 to 1.00 through December 31, 2015, 1.15 to 1.00 through March 31, 2016 and 1.25 to 1.00 for each quarter thereafter, (ii) setting the Leverage Ratio to 4.00 to 1.00 through March 31, 2016 and 3.75 to 1.00 for each quarter thereafter and (iii) reducing our global cash requirement from $100 million to $50 million. | |
The Credit Agreement enables us to borrow up to $100.0 million, with the ability to increase commitments 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 including all receivables, equipment, general intangibles, inventory, investment property, subsidiary stock and intellectual property. Borrowings under the Credit Agreement bear interest at a variable rate. For domestic rate loans, the interest rate is equal to the highest of (i) the daily federal funds open rate as quoted by ICAP North America, Inc. plus 0.5%, (ii) PNC's prime rate and (iii) a daily LIBOR rate plus 1.0%, in each case there is an additional margin ranging from 0.25% to 1.00% based on certain conditions. For LIBOR rate loans, the interest rate is equal to a LIBOR rate plus a margin ranging from 1.25% to 2.00% based on certain conditions. The Credit Agreement requires monthly interest payments with respect to domestic rate loans and at the end of each interest period with respect to LIBOR rate loans. The Credit Agreement further provides for a limit on the issuance of letters of credit to a maximum of $20.0 million. The Credit Agreement contains provisions requiring us to maintain compliance with certain restrictive and financial covenants. As of March 31, 2015 and December 31, 2014, the fair value of our debt instruments approximates their reported carrying amounts. | |
As of March 31, 2015 and December 31, 2014, we had no outstanding borrowings under the Credit Agreement. As of March 31, 2015 and December 31, 2014, we had issued and outstanding letters of credit of $1.7 million and $1.8 million, respectively, which were reserved against the borrowing base under the terms of the Credit Agreement. As of March 31, 2015, we were in compliance with all restrictive financial and other covenants under the Credit Agreement. | |
Long-term Bank Borrowings | |
On December 10, 2012, we entered into a Master Installment Payment Agreement (“Master IPA”) with PNC in which PNC finances our purchase of software and services, which may include but are not limited to third party costs to design, install and implement software systems, and associated hardware described in the schedules defined within the Master IPA. The Master IPA was entered into to finance our implementation of a new enterprise resource planning (“ERP”) system, which began in October 2012 and was substantially completed in 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 March 31, 2015 and December 31, 2014, we had $10.3 million and $11.6 million, respectively, of debt outstanding under five separate notes payable, of which $5.3 million represents current installments for both periods. As of March 31, 2015, the notes bear interest rates ranging from 2.45% to 2.79% and maturities ranging from September 2016 to September 2017. As this debt arrangement relates solely to the construction and implementation of an ERP system for use by the entity, interest expense was capitalized to the condensed consolidated balance sheets until the assets were placed into service on January 1, 2015. During the three months ended March 31, 2015, no interest was capitalized. During the three months ended March 31, 2014, we capitalized $0.1 million in interest expense related to this debt arrangement to the condensed consolidated balance sheets. Interest rates and payment terms are subject to changes as further financing occurs under the Master IPA. | |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Stock-Based Compensation [Abstract] | |||||||||||||||
Stock-Based Compensation | 9. STOCK-BASED COMPENSATION | ||||||||||||||
Stock-based compensation expense is based on the grant date fair value and is recognized on a straight-line basis over the applicable vesting period. During the three months ended March 31, 2015 and 2014, we recorded $2.9 million and $4.7 million, respectively, of pre-tax stock-based compensation expense. During the three months ended March 31, 2014, $0.1 million related solely to the construction and implementation of our ERP system for use by the entity, was capitalized to the condensed consolidated balance sheets. | |||||||||||||||
Stock Option Activity | |||||||||||||||
A summary of our stock option activity as of and for the three months ended March 31, 2015 is presented below: | |||||||||||||||
Stock Options | Weighted-Average | ||||||||||||||
Exercise Price | |||||||||||||||
Outstanding as of December 31, 2014 | 1,696,130 | $ | 13.52 | ||||||||||||
Granted | — | — | |||||||||||||
Exercised | -57,211 | 3.05 | |||||||||||||
Forfeited or expired | -45,691 | 26.83 | |||||||||||||
Outstanding as of March 31, 2015 | 1,593,228 | 13.51 | |||||||||||||
As of March 31, 2015, there was $1.1 million of unrecognized compensation cost related stock options. The cost is expected to be amortized over a weighted average period of 2.35 years. | |||||||||||||||
Restricted Stock Awards and Units Activity | |||||||||||||||
Restricted Stock Awards (“RSAs”) | Weighted-Average Grant-Date Fair Value | Restricted Stock Units (“RSUs”) | Weighted-Average Grant-Date Fair Value | ||||||||||||
Unvested as of December 31, 2014 | 7,488 | $ | 15.61 | 1,997,471 | $ | 15.78 | |||||||||
Granted | — | — | 2,317,434 | 10.99 | |||||||||||
Vested | -4,994 | 15.90 | -390,241 | 16.56 | |||||||||||
Forfeited or expired | — | — | -601,059 | 15.84 | |||||||||||
Unvested as of March 31, 2015 | 2,494 | 15.04 | 3,323,605 | 10.83 | |||||||||||
The total grant date fair value of RSAs vested during the three months ended March 31, 2015 was $0.1 million. As of March 31, 2015, we had $29.2 thousand of total unrecognized share-based compensation expense related to non-vested restricted stock awards, net of expected forfeitures, all of which was related to time-based awards. The unvested RSAs are expected to be amortized over the remaining weighted-average period of 0.19 years. | |||||||||||||||
The total grant date fair value of RSUs vested during the three months ended March 31, 2015 was $6.5 million. As of March 31, 2015, we had $20.3 million of total unrecognized share-based compensation expense related to unvested restricted stock units, net of expected forfeitures, of which $11.5 million is related to time-based awards and $8.8 million is related to performance-based awards. The unvested RSUs are expected to be amortized over the remaining weighted-average period of 2.42 years, which consists of a remaining weighted-average period of 2.47 years related to performance-based awards and a remaining weighted-average period of 2.20 years related to time-based awards. | |||||||||||||||
Appointment of CEO | |||||||||||||||
On December 12, 2014, Gregg Ribatt was appointed as our Chief Executive Officer, effective January 28, 2015. In connection with his appointment as Chief Executive Officer, Mr. Ribatt was granted a sign-on time-vesting RSU award representing the right to receive shares of our common stock equal to $2.0 million, based on a 30-day weighted-average stock price as of December 15, 2014. This time-vesting RSU award will vest in three annual installments beginning on the first anniversary of his start date, subject to his continued employment with us as of each vesting date. In addition, Mr. Ribatt was granted a sign-on performance-vesting RSU award, subject to various vesting criteria, representing the right to receive shares of our common stock equal to $6.0 million, based on a 30-day weighted-average stock price as of December 15, 2014. Based on a Monte-Carlo valuation model, the fair value of the RSU was determined to be $2.4 million, or 46.0% of the grant price, which will be expensed on a straight-line basis over a derived service period of 2.5 years, beginning in 2015. | |||||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 10. INCOME TAXES |
During the three months ended March 31, 2015, we recognized an income tax expense of $0.3 million on pre-tax loss of $2.1 million, representing an effective income tax rate of 13.9% compared to an income tax expense of $5.4 million on pre-tax income of $14.5 million, representing an effective tax rate of 37.0% for the three months ended March 31, 2014. | |
The decrease in effective tax rate, compared to the same period in 2014, is primarily due to the result of profits shifting from higher tax jurisdictions to lower tax jurisdictions and losses recorded in tax jurisdictions for which tax benefits are being recognized. 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 $7.7 million as of March 31, 2015 and $8.4 million as of December 31, 2014. | |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Earnings Per Share [Abstract] | |||||||
Earnings Per Share | 11. EARNINGS PER SHARE | ||||||
The following table illustrates the basic and diluted earnings (loss) per share (“EPS”) computations for the three months ended March 31, 2015 and 2014. | |||||||
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
($ thousands, except per share data) | |||||||
Numerator: | |||||||
Net income (loss) attributable to common stockholders | $ | -5,979 | $ | 6,373 | |||
Less: adjustment for income allocated to participating securities | — | -868 | |||||
Net income (loss) attributable to common stockholders - basic and diluted | $ | -5,979 | $ | 5,505 | |||
Denominator: | |||||||
Weighted average common shares outstanding - basic | 77,825 | 88,239 | |||||
Plus: dilutive effect of stock options and unvested restricted stock units | — | 1,300 | |||||
Weighted average common shares outstanding - diluted | 77,825 | 89,539 | |||||
Net income (loss) attributable per common share: | |||||||
Basic | $ | -0.08 | $ | 0.06 | |||
Diluted | $ | -0.08 | $ | 0.06 | |||
For the three months ended March 31, 2015 and 2014, approximately 2.3 million and 1.5 million options and RSUs, respectively, 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 March 31, 2015, the Series A preferred stock would represent approximately 15.2% of our common stock outstanding or 13.8 million additional common shares. See Note 12 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. On December 26, 2013, our board of directors (the “Board”) approved the repurchase of up to $350.0 million of our common stock. The number, price, structure and timing of the repurchases will be at our sole discretion and future repurchases will be evaluated by us depending on market conditions, liquidity needs and other factors. Share repurchases may be made in the open market or in privately negotiated transactions. The repurchase authorization does not have an expiration date and does not oblige us to acquire any particular amount of our common stock. Our Board may suspend, modify or terminate the repurchase program at any time without prior notice. | |||||||
During the three months ended March 31, 2015, we repurchased approximately 1.7 million shares at a weighted-average price of $11.60 per share for an aggregate price of approximately $20.0 million excluding related commission charges under our publicly-announced repurchase plan. During the three months ended March 31, 2014, we repurchased approximately 0.9 million shares at a weighted-average price of $14.94 for an aggregate price of approximately $13.0 million excluding related commission charges, under our publicly-announced repurchase plan. | |||||||
As of March 31, 2015, subject to certain restrictions on repurchases under our revolving credit facility, we had $182.1 million of our common shares available for repurchase under previously announced repurchase authorizations. | |||||||
Series_A_Preferred_Stock
Series A Preferred Stock | 3 Months Ended |
Mar. 31, 2015 | |
Series A Preferred Stock [Abstract] | |
Series A Preferred Stock | 12. SERIES A PREFERRED STOCK |
On January 27, 2014, we issued 200,000 shares of our Series A preferred stock to Blackstone Capital Partners VI L.P. (“Blackstone”) and certain of its permitted transferees, for an aggregate purchase price of $198.0 million, or $990 per share, pursuant to an Investment Agreement between us and Blackstone, dated December 28, 2013. In connection with the issuance of the Series A preferred stock, 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. As of March 31, 2015 and December 31, 2014, we had accrued dividends of $2.8 million and $3.1 million, respectively, on the condensed consolidated balance sheets, which were paid in cash to holders of the Series A preferred stock on April 1, 2015 and January 2, 2015, respectively. | |
Commitments_Contingencies
Commitments & Contingencies | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Commitments & Contingencies [Abstract] | ||||||||
Commitments & Contingencies | 13. COMMITMENTS AND CONTINGENCIES | |||||||
Rental Commitments and Contingencies | ||||||||
We rent space for our retail stores, offices, warehouses, vehicles, and equipment under operating leases expiring at various dates through 2033. Certain leases contain rent escalation clauses (step rents) that require additional rental amounts in the later years of the term. Rent expense for leases with step rents or rent holidays is recognized on a straight-line basis over the lease term beginning on the lease inception date. Deferred rent is included in the 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 months ended March 31, 2015 and 2014: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Minimum rentals (1) | $ | 24,812 | $ | 29,242 | ||||
Contingent rentals | 2,077 | 2,423 | ||||||
Less: Sublease rentals | -59 | -180 | ||||||
Total rent expense | $ | 26,830 | $ | 31,485 | ||||
(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 $2.4 million during the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Purchase Commitments | ||||||||
As of March 31, 2015 and December 31, 2014, we had firm purchase commitments with certain third-party manufacturers of $146.9 million and $202.3 million, respectively. | ||||||||
Government Tax Audits | ||||||||
We are regularly subject to, and are currently undergoing, audits by tax authorities in the United States and several foreign jurisdictions for prior tax years. | ||||||||
In April 2013, Brazil’s State of Sao Paulo, Brazil government (“Brazil”) assessed sales taxes, interest and penalties for the period April 2009 to May 2011. We had previously tendered these taxes using Brazil obligations purchased at a discount from third parties. On May 22, 2013, we applied for amnesty in order to receive a significant reduction in penalties and interest, agreed to amend our 2009 through 2012 tax returns to remove the Brazil obligations, and agreed to settle the assessment in cash to Brazil. In June 2013, we made a cash payment to Brazil, in full satisfaction of the Brazil assessment and amended tax returns. | ||||||||
While Brazil is currently making court-ordered payments to holders of the Brazil obligations, along with accrued interest, during the year ended December 31, 2014, we reserved the entire carrying balance of the Brazil obligation as we determined the ultimate collection of amounts due is not assured. | ||||||||
See Note 15 – Legal Proceedings for further details regarding potential loss contingencies related to government tax audits and other current legal proceedings. | ||||||||
Operating_Segments_Geographic_
Operating Segments & Geographic Information | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Operating Segments & Geographic Information [Abstract] | |||||||||
Operating Segments & Geographic Information | 14. OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION | ||||||||
During 2014, we had four reportable operating segments based on the geographic nature of our operations: Americas, Asia Pacific, Japan and Europe. We also had an “Other businesses” category which aggregates insignificant operating segments that do not meet the reportable segment threshold including our 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. | |||||||||
Subsequent to December 31, 2014, our internal reports reviewed by the CODM began consolidating Japan into the Asia Pacific segment. This change was to align our internal reporting to our new strategic model and management structure, as Japan and Asia Pacific are now managed and analyzed as one operating segment by management and the CODM. Accordingly, we now have three reportable segments for 2015 as well as our “Other Businesses” category. | |||||||||
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. | |||||||||
Segment performance is evaluated based on segment results without allocating corporate expenses, or indirect general, administrative and other expenses. Segment profits or losses include adjustments to eliminate intersegment sales. As such, reconciling items for segment operating income represent unallocated corporate and other expenses as well as intersegment eliminations. Our CODM evaluates the performance of our segments based on gross margin and direct operating profit excluding unallocated amounts. Our CODM is not regularly provided information on segment assets, nor is such information considered when evaluating the performance of our segments. Additionally, there was no material change in the amounts or methodology of assets allocated to segments, other than the inclusion of assets allocated to the Japan segment now included in the Asia segment. | |||||||||
The following tables set forth information related to our reportable operating business segments as of and for the three months ended March 31, 2015 and 2014: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
($ thousands) | |||||||||
Revenues: | |||||||||
Americas | $ | 105,769 | $ | 117,120 | |||||
Asia Pacific | 99,775 | 130,915 | |||||||
Europe | 56,424 | 64,136 | |||||||
Total segment revenues | 261,968 | 312,171 | |||||||
Other businesses | 225 | 258 | |||||||
Total consolidated revenues | $ | 262,193 | $ | 312,429 | |||||
Operating income: | |||||||||
Americas | $ | 15,378 | $ | 13,437 | |||||
Asia Pacific | 17,335 | 34,145 | |||||||
Europe | 8,238 | 7,539 | |||||||
Total segment operating income | 40,951 | 55,121 | |||||||
Reconciliation of total segment operating income (loss) to income (loss) before income taxes: | |||||||||
Other businesses | -5,403 | -3,756 | |||||||
Intersegment eliminations | — | 15 | |||||||
Unallocated corporate and other (1) | -37,910 | -34,558 | |||||||
Total consolidated operating income (loss) | -2,362 | 16,822 | |||||||
Foreign currency transaction gain (loss), net | 494 | -2,768 | |||||||
Interest income | 288 | 477 | |||||||
Interest expense | -219 | -191 | |||||||
Other income (expense), net | -331 | 141 | |||||||
Income (loss) before income taxes | $ | -2,130 | $ | 14,481 | |||||
Depreciation and amortization expense: | |||||||||
Americas | $ | 1,974 | $ | 2,448 | |||||
Asia Pacific | 1,213 | 1,740 | |||||||
Europe | 803 | 902 | |||||||
Total segment depreciation and amortization expense | 3,990 | 5,090 | |||||||
Other businesses | 1,987 | 1,599 | |||||||
Unallocated corporate and other (1) | 3,742 | 2,684 | |||||||
Total consolidated depreciation and amortization expense | $ | 9,719 | $ | 9,373 | |||||
-1 | Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, restructuring, depreciation and amortization of corporate and other assets not allocated to operating segments and costs of the same nature related to certain corporate holding companies. See Note 5–Restructuring for additional details. | ||||||||
Legal_Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2015 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | 15. LEGAL PROCEEDINGS |
We are currently subject to an audit by U.S. Customs & Border Protection (“CBP”) in respect of the period from 2006 to 2010. In October 2013, CBP issued the final audit report. In that report CBP projects that unpaid duties totaling approximately $12.4 million are due for the period under review and recommended collection of the duties due. We responded that these projections are erroneous and provided arguments that demonstrate the amount due in connection with this matter is considerably less than the projection. Additionally, on December 12, 2014, we made an offer to settle CBP’s potential claims and tendered $3.5 million. At this time, it is not possible to determine how long it will take CBP to evaluate our offer or to predict whether our offer will be accepted. Likewise, if a settlement cannot be reached, it is not possible to predict with any certainty whether CBP will seek to assert a claim for penalties in addition to any unpaid duties, but such an assertion is a possibility. | |
Mexico’s Federal Tax Authority (“SAT”) has audited our records regarding imports and exports during the period from January 2006 to July 2011. There were two phases to the audit, the first for capital equipment and finished goods and the second for raw materials. The first phase was completed and no major discrepancies were noted by the SAT. On January 9, 2013, Crocs received a notice for the second phase in which the SAT issued a tax assessment (taxes and penalties) of roughly 280.0 million pesos (approximately $22.0 million) based on the value of all of Crocs’ imported raw materials during the audit period. We believe that the proposed penalty amount is unfounded and without merit. With the help of local counsel we filed an appeal by the deadline of March 15, 2013. We have argued that the amount due in connection with the matter, if any, is substantially less than that proposed by the SAT. In connection with the appeal, the SAT required us to post an appeal surety bond in the amount of roughly 321.0 million pesos (approximately $26.0 million), which amount reflects estimated additional penalties and interest if we are not successful on our appeal. This amount will be adjusted on an annual basis. On November 27, 2014, the Superior Chamber of the Federal Tax Court ruled in favor of Crocs and annulled the tax assessment and the corresponding penalty. The SAT filed its appeal of the decision in Crocs’ favor on February 25, 2015. The parties are currently awaiting a ruling on the appeal. It is not possible at this time to predict the outcome of this matter or reasonably estimate any potential loss. | |
Crocs is currently subject to an audit by the Brazilian Federal Tax Authorities related to imports of footwear from China between 2010-2014. On January 13, 2015 Crocs was notified about the issuance of assessments totaling roughly $5.25 million for the period January 2010 through May 2011. Crocs has disputed these assessments and asserted defenses to the claims. On February 25, 2015, Crocs received additional assessments totaling roughly $11.54 million related to the remainder of the audit period. Crocs has also disputed these assessments and asserted defenses to these claims. It is not possible at this time to predict the outcome of this matter, therefore, we have no accrual for this matter as of March 31, 2015. | |
On August 8, 2014, a purported class action lawsuit was filed in California state court against our subsidiary, Crocs Retail, LLC, Zaydenberg v. Crocs Retail, LLC, Case No. BC554214. The lawsuit alleges various employment law violations related to overtime, meal and break periods, minimum wage, timely payment of wages, wage statements, payroll records and business expenses. We filed an answer on February 6, 2015, denying the allegations and asserting several defenses. The parties are exchanging documents and information relevant to the issue of class certification and plan to participate in mediation in June 2015. It is not possible at this time to predict the outcome of this matter or reasonably estimate any potential loss. | |
As of March 31, 2015, 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 $9.8 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. | |
Recovered_Sheet1
Organization & Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization & Summary Of Significant Accounting Policies [Abstract] | |
Basis of Presentation | 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, 2014 was derived from the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 Form 10-K”) but does not include all disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements and these notes thereto should be read in conjunction with the 2014 Form 10-K. In the opinion of management, these financial statements reflect all adjustments (consisting solely of normal recurring matters) considered necessary for a fair statement 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 | Reclassifications |
Certain prior year amounts on the condensed consolidated financial statements have been reclassified to conform to current period presentation. We segregated certain restructuring charges recorded to selling, general and administrative expenses on the condensed consolidated statement of operations for the three months ended March 31, 2014 to the restructuring charges line item on the condensed consolidated statement of operations. In addition, we segregated certain accrued restructuring liabilities on the condensed consolidated statement of cash flows for the three months ended March 31, 2014 to the accrued restructuring line on the condensed consolidated statements of cash flows for the three months ended March 31, 2014. These reclassifications had no effect on income from operations, current liabilities or cash provided by (used in) operating activities. | |
Earnings per Share | Earnings per Share |
Basic and diluted earnings per common share (“EPS”) is presented using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividend rights and participation rights in undistributed earnings. Under the two-class method, EPS is computed by dividing the sum of distributed and undistributed earnings attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. A participating security is a security that may participate in undistributed earnings with common stock had those earnings been distributed in any form. 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 11—Earnings Per Share for further discussion. | |
Depreciation and Amortization | Depreciation and Amortization |
During the three months ended March 31, 2015 and 2014, we recorded $4.7 million and $5.4 million, respectively, in depreciation expense of which $0.6 million and $0.5 million, respectively, was recorded in ‘Cost of sales,’ with the remaining amounts recorded in ‘Selling, general and administrative expenses’ on the condensed consolidated statements of operations. As of March 31, 2015 and December 31, 2014, accumulated depreciation was $106.1 million and $99.8 million, respectively. | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements |
Debt Issuance Costs | |
In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03 – Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU requires retrospective adoption and will be effective for us beginning in our first quarter of 2016. Early adoption is permitted. We do not expect that this pronouncement will have a material impact on our consolidated financial statements. | |
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.” This ASU is effective for annual periods ending after December 16, 2016, and interim periods thereafter. Early adoption is permitted. We do not expect that this pronouncement will have a material impact on our financial statement disclosures. | |
Share-Based Payment | |
On June 19, 2014, the FASB issued ASU 2014-12 in response to the EITF consensus on Issue 13-D. The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. This ASU is effective for all entities for reporting periods (including interim periods) beginning after December 15, 2015. We do not expect that this pronouncement will have a material impact on our 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 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. We are currently evaluating the impact that this pronouncement will have on our consolidated financial statements. | |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Inventories [Abstract] | |||||||
Schedule of Inventory | As of | As of | |||||
31-Mar-15 | 31-Dec-14 | ||||||
($ thousands) | |||||||
Finished goods | $ | 179,849 | $ | 167,515 | |||
Work-in-progress | 518 | 703 | |||||
Raw materials | 4,353 | 2,794 | |||||
Inventories | $ | 184,720 | $ | 171,012 | |||
Goodwill_Intangible_Assets_Tab
Goodwill & Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Goodwill & Intangible Assets [Abstract] | |||||||||||||||||||
Schedule of Goodwill & Intangible Assets | 31-Mar-15 | 31-Dec-14 | |||||||||||||||||
($ thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||
Capitalized software | $ | 159,357 | -1 | $ | -71,815 | -2 | $ | 87,542 | $ | 157,615 | -1 | $ | -62,591 | -2 | $ | 95,024 | |||
Customer relationships | 5,026 | -5,026 | — | 5,945 | -5,798 | 147 | |||||||||||||
Patents, copyrights, and trademarks | 6,114 | -4,713 | 1,401 | 6,702 | -4,931 | 1,771 | |||||||||||||
Core technology | 4,170 | -4,170 | — | 4,170 | -4,170 | — | |||||||||||||
Other | 434 | -290 | 144 | 698 | -636 | 62 | |||||||||||||
Total finite lived intangible assets | 175,101 | -86,014 | 89,087 | 175,130 | -78,126 | 97,004 | |||||||||||||
Indefinite lived intangible assets | 297 | — | 297 | 333 | — | 333 | |||||||||||||
Goodwill(3) | 2,227 | — | 2,227 | 2,044 | — | 2,044 | |||||||||||||
Goodwill and intangible assets | $ | 177,625 | $ | -86,014 | $ | 91,611 | $ | 177,507 | $ | -78,126 | $ | 99,381 | |||||||
(1)Includes $4.1 million of software held under a capital lease classified as capitalized software as of each of March 31, 2015 and December 31, 2014. | |||||||||||||||||||
(2)Includes $2.6 million and $2.5 million of accumulated amortization of software held under a capital lease as of March 31, 2015 and December 31, 2014, respectively, which is amortized using the straight-line method over the useful life. | |||||||||||||||||||
(3)Change in goodwill relates entirely to foreign currency translation. | |||||||||||||||||||
Schedule of Future Amortization of Intangible Assets | |||||||||||||||||||
Amortization | |||||||||||||||||||
Fiscal years ending March 31, | ($ thousands) | ||||||||||||||||||
Remainder of 2015 | $ | 13,925 | |||||||||||||||||
2016 | 17,144 | ||||||||||||||||||
2017 | 15,480 | ||||||||||||||||||
2018 | 13,361 | ||||||||||||||||||
2019 | 11,324 | ||||||||||||||||||
Thereafter | 17,853 | ||||||||||||||||||
Total | $ | 89,087 | |||||||||||||||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Accrued Expenses And Other Current Liabilities [Abstract] | |||||||
Schedule of Accrued Expenses & Other Current Liabilities | |||||||
As of | As of | ||||||
31-Mar-15 | 31-Dec-14 | ||||||
($ thousands) | |||||||
Accrued compensation and benefits | $ | 25,737 | $ | 23,824 | |||
Professional services | 13,373 | 16,212 | |||||
Fulfillment, freight and duties | 15,884 | 12,110 | |||||
Sales/use and VAT tax payable | 6,439 | 5,897 | |||||
Accrued rent and occupancy | 7,813 | 9,675 | |||||
Customer deposits | 3,545 | 3,075 | |||||
Deferred revenue and royalties payable | 3,155 | 2,005 | |||||
Dividend payable | 2,833 | 3,067 | |||||
Accrued legal liabilities | 629 | 2,150 | |||||
Other (1) | 4,479 | 2,201 | |||||
Total accrued expenses and other current liabilities | $ | 83,887 | $ | 80,216 | |||
-1 | The amounts in ‘Other’ consist of various accrued expenses and no individual item accounted for more than 5% of the total balance as of March 31, 2015 or December 31, 2014. | ||||||
Restructuring_Activities_Table
Restructuring Activities (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Restructuring Activities [Abstract] | |||||||||||||||||
Schedule of restructuring costs by type | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
($ thousands) | |||||||||||||||||
Severance costs | $ | 2,074 | $ | 1,584 | |||||||||||||
Lease / contract exit and related costs | 1,399 | 606 | |||||||||||||||
Other (1) | 190 | 60 | |||||||||||||||
Total restructuring charges | $ | 3,663 | $ | 2,250 | |||||||||||||
(1)The amounts in ‘Other’ consist of various asset and inventory impairment charges prompted by the aforementioned restructuring plan, legal fees and facility maintenance fees. | |||||||||||||||||
Schedule of restructuring costs by segment | Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
($ thousands) | |||||||||||||||||
Americas | $ | 456 | $ | — | |||||||||||||
Asia Pacific | 1,774 | — | |||||||||||||||
Europe | 1,141 | 675 | |||||||||||||||
Corporate | 292 | 1,575 | |||||||||||||||
Total restructuring charges | $ | 3,663 | $ | 2,250 | |||||||||||||
Schedule of restructuring reserve by type | |||||||||||||||||
As of | Additions | Cash Payments | Adjustments (1) | As of | |||||||||||||
31-Dec-14 | 31-Mar-15 | ||||||||||||||||
Severance | $ | 3,154 | $ | 2,074 | $ | -1,904 | $ | — | $ | 3,324 | |||||||
Lease / contract exit and related costs | 1,401 | 1,399 | -1,590 | — | 1,210 | ||||||||||||
Other | 304 | 190 | -75 | -1 | 418 | ||||||||||||
Total accrued restructuring | $ | 4,859 | $ | 3,663 | $ | -3,569 | $ | -1 | $ | 4,952 | |||||||
(1)Adjustments relate to a reversal of accrued expenses, differences resulting from the translation of the liability balance as of the balance sheet rate and restructuring expense translated at the weighted-average rate of exchange for the applicable period. | |||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Derivative Financial Instruments [Abstract] | |||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | As of | As of | |||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Foreign currency exchange forward contracts by currency: | ($ thousands) | ||||||||
Japanese Yen | $ | 93,301 | $ | 44,533 | |||||
Singapore Dollar | 59,843 | 61,887 | |||||||
Euro | 26,924 | 134,755 | |||||||
South Korean Won | 25,223 | 14,590 | |||||||
British Pound Sterling | 20,931 | 17,230 | |||||||
Mexican Peso | 12,923 | 13,180 | |||||||
South African Rand | 7,023 | 4,355 | |||||||
Australian Dollar | 5,747 | 7,913 | |||||||
Indian Rupee | 4,919 | 3,356 | |||||||
Chinese Yuan Renminbi | 4,352 | 5,376 | |||||||
Canadian Dollar | 3,474 | 3,005 | |||||||
Russian Ruble | 2,876 | 1,838 | |||||||
New Taiwan Dollar | 2,494 | 3,229 | |||||||
Hong Kong Dollar | 1,892 | 814 | |||||||
Swedish Krona | 1,572 | 1,918 | |||||||
Brazilian Real | 1,005 | — | |||||||
New Zealand Dollar | 709 | 743 | |||||||
Norwegian Krone | — | 917 | |||||||
Total notional value, net | $ | 275,208 | $ | 319,639 | |||||
Latest maturity date | Apr-15 | Jan-15 | |||||||
Schedule of Derivative Instrument Gain (Loss) | Three Months Ended March 31, | ||||||||
2015 | 2014 | Location of Gain (Loss) Recognized in Income on Derivatives | |||||||
Derivatives not designated as hedging instruments: | ($ thousands) | ||||||||
Foreign currency exchange forwards | $ | 5,723 | $ | 1,838 | Foreign currency transaction (gains) losses, net | ||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Stock-Based Compensation [Abstract] | |||||||||||||||
Schedule Of Stock Options | Stock Options | Weighted-Average | |||||||||||||
Exercise Price | |||||||||||||||
Outstanding as of December 31, 2014 | 1,696,130 | $ | 13.52 | ||||||||||||
Granted | — | — | |||||||||||||
Exercised | -57,211 | 3.05 | |||||||||||||
Forfeited or expired | -45,691 | 26.83 | |||||||||||||
Outstanding as of March 31, 2015 | 1,593,228 | 13.51 | |||||||||||||
Schedule of Restricted Stock Awards | Restricted Stock Awards (“RSAs”) | Weighted-Average Grant-Date Fair Value | Restricted Stock Units (“RSUs”) | Weighted-Average Grant-Date Fair Value | |||||||||||
Unvested as of December 31, 2014 | 7,488 | $ | 15.61 | 1,997,471 | $ | 15.78 | |||||||||
Granted | — | — | 2,317,434 | 10.99 | |||||||||||
Vested | -4,994 | 15.90 | -390,241 | 16.56 | |||||||||||
Forfeited or expired | — | — | -601,059 | 15.84 | |||||||||||
Unvested as of March 31, 2015 | 2,494 | 15.04 | 3,323,605 | 10.83 | |||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Earnings Per Share [Abstract] | |||||||
Summary Of Basic And Diluted Earnings Per Share | Three Months Ended March 31, | ||||||
2015 | 2014 | ||||||
($ thousands, except per share data) | |||||||
Numerator: | |||||||
Net income (loss) attributable to common stockholders | $ | -5,979 | $ | 6,373 | |||
Less: adjustment for income allocated to participating securities | — | -868 | |||||
Net income (loss) attributable to common stockholders - basic and diluted | $ | -5,979 | $ | 5,505 | |||
Denominator: | |||||||
Weighted average common shares outstanding - basic | 77,825 | 88,239 | |||||
Plus: dilutive effect of stock options and unvested restricted stock units | — | 1,300 | |||||
Weighted average common shares outstanding - diluted | 77,825 | 89,539 | |||||
Net income (loss) attributable per common share: | |||||||
Basic | $ | -0.08 | $ | 0.06 | |||
Diluted | $ | -0.08 | $ | 0.06 | |||
Commitments_Contingencies_Tabl
Commitments & Contingencies (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Commitments & Contingencies [Abstract] | ||||||||
Schedule of rent expense | Three Months Ended March 31, | |||||||
2015 | 2014 | |||||||
(in thousands) | ||||||||
Minimum rentals (1) | $ | 24,812 | $ | 29,242 | ||||
Contingent rentals | 2,077 | 2,423 | ||||||
Less: Sublease rentals | -59 | -180 | ||||||
Total rent expense | $ | 26,830 | $ | 31,485 | ||||
(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 $2.4 million during the three months ended March 31, 2015 and 2014, respectively. | ||||||||
Operating_Segments_Geographic_1
Operating Segments & Geographic Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Operating Segments & Geographic Information [Abstract] | |||||||||
Information Related to Reportable Operating Business Segments | Three Months Ended March 31, | ||||||||
2015 | 2014 | ||||||||
($ thousands) | |||||||||
Revenues: | |||||||||
Americas | $ | 105,769 | $ | 117,120 | |||||
Asia Pacific | 99,775 | 130,915 | |||||||
Europe | 56,424 | 64,136 | |||||||
Total segment revenues | 261,968 | 312,171 | |||||||
Other businesses | 225 | 258 | |||||||
Total consolidated revenues | $ | 262,193 | $ | 312,429 | |||||
Operating income: | |||||||||
Americas | $ | 15,378 | $ | 13,437 | |||||
Asia Pacific | 17,335 | 34,145 | |||||||
Europe | 8,238 | 7,539 | |||||||
Total segment operating income | 40,951 | 55,121 | |||||||
Reconciliation of total segment operating income (loss) to income (loss) before income taxes: | |||||||||
Other businesses | -5,403 | -3,756 | |||||||
Intersegment eliminations | — | 15 | |||||||
Unallocated corporate and other (1) | -37,910 | -34,558 | |||||||
Total consolidated operating income (loss) | -2,362 | 16,822 | |||||||
Foreign currency transaction gain (loss), net | 494 | -2,768 | |||||||
Interest income | 288 | 477 | |||||||
Interest expense | -219 | -191 | |||||||
Other income (expense), net | -331 | 141 | |||||||
Income (loss) before income taxes | $ | -2,130 | $ | 14,481 | |||||
Depreciation and amortization expense: | |||||||||
Americas | $ | 1,974 | $ | 2,448 | |||||
Asia Pacific | 1,213 | 1,740 | |||||||
Europe | 803 | 902 | |||||||
Total segment depreciation and amortization expense | 3,990 | 5,090 | |||||||
Other businesses | 1,987 | 1,599 | |||||||
Unallocated corporate and other (1) | 3,742 | 2,684 | |||||||
Total consolidated depreciation and amortization expense | $ | 9,719 | $ | 9,373 | |||||
-1 | Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, restructuring, depreciation and amortization of corporate and other assets not allocated to operating segments and costs of the same nature related to certain corporate holding companies. See Note 5–Restructuring for additional details. | ||||||||
Organization_Summary_Of_Signif1
Organization & Summary Of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Organization & Summary Of Significant Accounting Policies [Abstract] | |||
Depreciation Expense | $4.70 | $5.40 | |
Cost of Sales, Depreciation | 0.6 | 0.5 | |
Accumulated depreciation | $106.10 | $99.80 |
Inventories_Schedule_of_Invent
Inventories (Schedule of Inventory) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ||
Finished goods | $179,849 | $167,515 |
Work-in-progress | 518 | 703 |
Raw materials | 4,353 | 2,794 |
Inventories | $184,720 | $171,012 |
Goodwill_Intangible_Assets_Nar
Goodwill & Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Goodwill & Intangible Assets [Abstract] | |||
Amortization Expense | $5,000,000 | $4,000,000 | |
Amortization Expense Recorded in Cost of Sales | 1,400,000 | 1,300,000 | |
Accumulated Amortization | $86,014,000 | $78,126,000 |
Goodwill_Intangible_Assets_Sum
Goodwill & Intangible Assets (Summary Of Goodwill & Intangible Assets) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | $175,101 | $175,130 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -86,014 | -78,126 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | 89,087 | 97,004 | ||
Indefinite lived intangible assets | 297 | 333 | ||
Goodwill | 2,227 | [1] | 2,044 | [1] |
Gross Carrying Amount, Total Intangible Assets | 177,625 | 177,507 | ||
Net Carrying Amount, Total Intangible Assets | 91,611 | 99,381 | ||
Capitalized Software [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | 159,357 | [2] | 157,615 | [2] |
Accumulated Amortization, Finite-Lived Intangible Assets | -71,815 | [3] | -62,591 | [3] |
Net Carrying Amount, Finite-Lived Intangible Assets | 87,542 | 95,024 | ||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | 5,026 | 5,945 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -5,026 | -5,798 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | 147 | |||
Patents, Copyrights And Trademarks [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | 6,114 | 6,702 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -4,713 | -4,931 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | 1,401 | 1,771 | ||
Core Technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | 4,170 | 4,170 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -4,170 | -4,170 | ||
Other [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount, Finite-Lived Intangible Assets | 434 | 698 | ||
Accumulated Amortization, Finite-Lived Intangible Assets | -290 | -636 | ||
Net Carrying Amount, Finite-Lived Intangible Assets | $144 | $62 | ||
[1] | Change in goodwill relates entirely to foreign currency translation. | |||
[2] | Includes $4.1 million of software held under a capital lease classified as capitalized software as of each of March 31, 2015 and December 31, 2014. | |||
[3] | Includes $2.6 million and $2.5B million of accumulated amortization of software held under a capital lease as of March 31, 2015 and December 31, 2014, respectively, which is amortized using the straight-line method over the useful life. |
Goodwill_Intangible_Assets_Sum1
Goodwill & Intangible Assets (Summary of Goodwill & Intangible Assets Footnote) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Goodwill & Intangible Assets [Abstract] | ||
Gross Capitalized Software Held Under Capital Lease | $4.10 | |
Amortization of Capitalized Software Held Under Capital Lease | $2.60 | $2.50 |
Goodwill_Intangible_Assets_Fut
Goodwill & Intangible Assets (Future Amortization Schedule) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill & Intangible Assets [Abstract] | ||
Net Carrying Amount, Finite-Lived Intangible Assets | $89,087 | $97,004 |
Recovered_Sheet2
Accrued Expenses And Other Current Liabilities (Summary of Accrued Expenses and Other Current Liabilities) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||
In Thousands, unless otherwise specified | |||||
Accrued Expenses And Other Current Liabilities [Abstract] | |||||
Accrued compensation and benefits | $25,737 | $23,824 | |||
Professional services | 13,373 | 16,212 | |||
Fulfillment, freight and duties | 15,884 | 12,110 | |||
Sales/use and VAT tax payable | 6,439 | 5,897 | |||
Accrued rent and occupancy | 7,813 | 9,675 | |||
Customer deposits | 3,545 | 3,075 | |||
Deferred revenue and royalties payable | 3,155 | 2,005 | |||
Dividend payable | 2,833 | 3,067 | 2,133 | ||
Accrued legal liabilities | 629 | 2,150 | |||
Other | 4,479 | [1] | 2,201 | [1] | |
Total accrued expenses and other current liabilities | $83,887 | $80,216 | |||
[1] | The amounts in bOtherb consist of various accrued expenses and no individual item accounted for more than 5% of the total balance as of March 31, 2015 or December 31, 2014 |
Recovered_Sheet3
Accrued Expenses And Other Current Liabilities (Summary of Accrued Expenses and Other Current Liabilities Footnote) (Details) | Mar. 31, 2015 | Dec. 31, 2014 |
Accrued Expenses And Other Current Liabilities [Abstract] | ||
Individual Items Accounting For More Than Five Percent Of Balance Of Accrued Expenses | 5.00% | 5.00% |
Restructuring_Activities_Narra
Restructuring Activities (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
store | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges total | $3,663 | $2,250 |
Number of stores to be closed | 9 | |
Number of stores closed | 9 | |
Maximum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges total | $20,000 | |
Number of stores to be closed | 100 | |
Minimum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of stores to be closed | 75 |
Restructuring_Activities_Restr
Restructuring Activities (Restructuring Costs by Type) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Restructuring Activities [Abstract] | ||||
Severance costs | $2,074 | $1,584 | ||
Lease / contract exit and related costs | 1,399 | 606 | ||
Other | 190 | [1] | 60 | [1] |
Total restructuring charges | $3,663 | $2,250 | ||
[1] | The amounts in bOtherb consist of various asset and inventory impairment charges prompted by the aforementioned restructuring plan, legal fees and facility maintenance fees. |
Restructuring_Activities_Restr1
Restructuring Activities (Restructuring Costs by Segment) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charges | $3,663 | $2,250 |
Corporate [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charges | 292 | 1,575 |
Americas [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charges | 456 | |
Asia Pacific [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charges | 1,774 | |
Europe [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring charges | $1,141 | $675 |
Restructuring_Activities_Restr2
Restructuring Activities (Restructuring Reserve Rollforward) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Additions | $3,663 | $2,250 | |
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued restructuring as of December 31, 2014 | 3,154 | ||
Additions | 2,074 | ||
Cash payments | -1,904 | ||
Accrued restructuring as of March 31, 2015 | 3,324 | ||
Contract Termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued restructuring as of December 31, 2014 | 1,401 | ||
Additions | 1,399 | ||
Cash payments | -1,590 | ||
Accrued restructuring as of March 31, 2015 | 1,210 | ||
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued restructuring as of December 31, 2014 | 304 | ||
Additions | 190 | ||
Cash payments | -75 | ||
Adjustments | -1 | [1] | |
Accrued restructuring as of March 31, 2015 | 418 | ||
Total accrued restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued restructuring as of December 31, 2014 | 4,859 | ||
Additions | 3,663 | ||
Cash payments | -3,569 | ||
Adjustments | -1 | [1] | |
Accrued restructuring as of March 31, 2015 | $4,952 | ||
[1] | Adjustments relate to a reversal of accrued expenses, differences resulting from the translation of the liability balance as of the balance sheet rate and restructuring expense translated at the weighted-average rate of exchange for the applicable period. |
Restructuring_Activities_Retai
Restructuring Activities (Retail Store Closings) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
store | ||
Property And Equipment [Abstract] | ||
Number of stores closed | 9 | |
Accrued liability related to store closures | $5 | $4.90 |
Fair_Value_Measurements_Summar
Fair Value Measurements (Summary of Fair Value Measurements on a Recurring Basis) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Cash equivalents | $13 | $23.30 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Asset impairment charges | $0 | $0 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Summary of Derivative Financial Instruments Notional Amounts on Outstanding Positions) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | $275,208 | $319,639 |
Latest maturity date | 1-Apr-15 | 1-Jan-15 |
Japanese Yen [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 93,301 | 44,533 |
Singapore Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 59,843 | 61,887 |
Euro [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 26,924 | 134,755 |
South Korean Won [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 25,223 | 14,590 |
British Pound Sterling [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 20,931 | 17,230 |
Mexican Peso [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 12,923 | 13,180 |
South African Rand [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 7,023 | 4,355 |
Australian Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 5,747 | 7,913 |
Indian Rupee [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 4,919 | 3,356 |
Chinese Yuan Renminbi [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 4,352 | 5,376 |
Canadian Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 3,474 | 3,005 |
Russian Ruble [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 2,876 | 1,838 |
New Taiwan Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 2,494 | 3,229 |
Hong Kong Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 1,892 | 814 |
Swedish Krona [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 1,572 | 1,918 |
Brazilian Real [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 1,005 | |
New Zealand Dollar [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | 709 | 743 |
Norwegian Krone [Member] | ||
Derivative Financial Instruments Notional Amounts [Line Items] | ||
Total notional value, net | $917 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Summary of Gain/Loss on Derivative Instruments) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Derivative Financial Instruments [Abstract] | ||
Foreign currency exchange forwards | $5,723,000 | $1,838,000 |
Foreign currency transaction gains/losses, gross | 6,200,000 | 1,000,000 |
Foreign currency transaction gain (loss), net | ($494,000) | $2,768,000 |
Revolving_Credit_Facility_Bank1
Revolving Credit Facility & Bank Borrowings (Revolving Credit Facility) (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Apr. 02, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |
Line of Credit Facility [Line Items] | ||||
Global Cash Requirement Under Credit Facility | $100,000,000 | |||
Debt Instrument, Maturity Date | 1-Dec-17 | |||
Line of Credit Facility, Current Borrowing Capacity | 100,000,000 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 125,000,000 | |||
Maximum letter of credit borrowing capacity | 20,000,000 | |||
Revolving credit facility | 0 | 0 | ||
Outstanding letters of credit | 1,700,000 | 1,800,000 | ||
Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Minimum fixed charge coverage ratio | 1.00% | |||
Expected Minimum Fixed Charge Coverage Ratio For First Half Of Next Year | 1.15% | |||
Expected Minimum Fixed Charge Coverage Ratio After First Half Of Next Year | 1.25% | |||
Leverage ratio | 4.00% | |||
Expected Leverage Ratio After One Year Period | 3.75% | |||
Global Cash Requirement Under Credit Facility | $50,000,000 | |||
Federal Funds Effective Swap Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
London Interbank Offered Rate (LIBOR) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||
Maximum [Member] | Certain Conditions [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |||
Minimum [Member] | Certain Conditions [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% |
Revolving_Credit_Facility_Bank2
Revolving Credit Facility & Bank Borrowings (Long-Term Bank Borrowings) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
item | |||
Revolving Credit Facility & Bank Borrowings [Abstract] | |||
Bank borrowings | $10,300,000 | $11,600,000 | |
Number of notes payable outstanding | 5 | ||
Current maturities of long-term debt | 5,300,000 | 5,300,000 | |
Minimum interest rate on long-term debt | 2.45% | ||
Maximum interest rate on long-term debt | 2.79% | ||
Earliest maturity on long-term debt | 1-Sep-16 | ||
Latest maturity on long-term debt | 1-Sep-17 | ||
Long-term debt interest capitalized | $0 | $100,000 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-Based Compensation [Abstract] | ||
Share-based compensation expense | $2.90 | $4.70 |
Capitalized share-based compensation expense | $0.10 |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Option Activity) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Share-Based Compensation [Abstract] | |
Shares outstanding at beginning of period | 1,696,130 |
Shares exercised | -57,211 |
Shares forfeited or expired | -45,691 |
Shares outstanding at end of period | 1,593,228 |
Weighted average exercise price of options outstanding at beginning of period | $13.52 |
Weighted average exercise price of options exercised | $3.05 |
Weighted average exercise price of options forfeited or expired | $26.83 |
Weighted average exercise price of options outstanding at end of period | $13.51 |
StockBased_Compensation_Stock_1
Stock-Based Compensation (Stock Option Activity Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Share-Based Compensation [Abstract] | |
Unrecognized share-based compensation expense related to unvested options | $1.10 |
Amortized over a weighted average period | 2 years 4 months 6 days |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule Of Restricted Stock Award and Restricted Stock Unit Activity) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Restricted Stock Awards [Member] | |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |
Nonvested beginning balance | 7,488 |
Vested | -4,994 |
Nonvested ending balance | 2,494 |
Weighted average grant date fair value beginning balance | $15.61 |
Weighted average grant date fair value of vested | $15.90 |
Weighted average grant date fair value ending balance | $15.04 |
Restricted Stock Units [Member] | |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |
Nonvested beginning balance | 1,997,471 |
Granted | 2,317,434 |
Vested | -390,241 |
Forfeited or expired | -601,059 |
Nonvested ending balance | 3,323,605 |
Weighted average grant date fair value beginning balance | $15.78 |
Weighted average grant date fair value of granted | $10.99 |
Weighted average grant date fair value of vested | $16.56 |
Weighted average grant date fair value of forfeited or expired | $15.84 |
Weighted average grant date fair value ending balance | $10.83 |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock Awards and Restricted Stock Units Activity, Share-Based Compensation) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |
Unrecognized share-based compensation expense related to unvested awards | $1.10 |
Amortized over a weighted average period | 2 years 4 months 6 days |
Time-based Restricted Stock Units [Member] | |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |
Unrecognized share-based compensation expense related to unvested awards | 11.5 |
Amortized over a weighted average period | 2 years 2 months 12 days |
Restricted Stock Awards [Member] | |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |
Stock Option Vesting Period | 2 months 9 days |
Unrecognized share-based compensation expense related to unvested awards | 29.2 |
Grant date fair value of vested awards | 0.1 |
Restricted Stock Units [Member] | |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |
Unrecognized share-based compensation expense related to unvested awards | 20.3 |
Amortized over a weighted average period | 2 years 5 months 1 day |
Grant date fair value of vested awards | 6.5 |
Performance-based Restricted Stock Units [Member] | |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |
Unrecognized share-based compensation expense related to unvested awards | $8.80 |
Amortized over a weighted average period | 2 years 5 months 19 days |
StockBased_Compensation_Separa
Stock-Based Compensation (Separation Agreements And Appointment of President And CEO) (Details) (Chief Executive Officer [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 15, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock granted, value | $2 | |
Weighted average stock price period | 30 days | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock granted, value | 6 | |
Weighted average stock price period | 30 days | |
Fair value of market-based award | 2.4 | |
Percent of grant price | 46.00% | |
Amortization period for award | 2 years 6 months |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Income tax expense (benefit) | $295,000 | $5,357,000 | |
Income before income taxes | -2,130,000 | 14,481,000 | |
Effective income tax rate | 13.90% | 37.00% | |
Unrecognized Tax Benefits | $7,700,000 | $8,400,000 |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Anti-dilutive options and RSUs not included in the calculation of diluted income (loss) per share | 2.3 | 1.5 |
Percentage of common stock if-converted Series A preferred stock | 15.20% | |
Anti-dilutive Series A preferred shares not included in the calculation of EPS | 13.8 |
Earnings_Per_Share_Summary_Of_
Earnings Per Share (Summary Of Basic And Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net income (loss) attributable to common stockholders | ($5,979) | $6,373 |
Less: adjustment for income allocated to participating securities | -868 | |
Net income (loss) attributable to common stockholders - basic and diluted | ($5,979) | $5,505 |
Weighted average common shares outstanding - basic | 77,825 | 88,239 |
Plus: dilutive effect of stock options and unvested restricted stock units | 1,300 | |
Weighted average common shares outstanding - diluted | 77,825 | 89,539 |
Basic | ($0.08) | $0.06 |
Diluted | ($0.08) | $0.06 |
Earnings_Per_Share_Stock_Repur
Earnings Per Share (Stock Repurchase Plan Authorizations) (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Amount authorized for repurchase under share repurchase authorization | $350 | |
Amount remaining for repurchase under share repurchase authorization | 182.1 | |
Subsequent number of shares repurchased | 1.7 | 0.9 |
Subsequent weighted average price of shares repurchased | $11.60 | $14.94 |
Subsequent value for shares repurchased | $20 | $13 |
Series_A_Preferred_Stock_Detai
Series A Preferred Stock (Details) (USD $) | 0 Months Ended | 3 Months Ended | |||
Jan. 27, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Jan. 27, 2014 | |
Series A Preferred Stock [Abstract] | |||||
Series A preferred shares, issued | 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 | ||||
Accrued dividends | $2,833,000 | $3,067,000 | $2,133,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Operating Lease Rental Expense) (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | |||
Operating Leases Rent Expense [Abstract] | ||||
Minimum rentals | $24,812,000 | [1] | $29,242,000 | [1] |
Contingent rentals | 2,077,000 | 2,423,000 | ||
Less: Sublease rentals | -59,000 | -180,000 | ||
Total rent expense | 26,830,000 | 31,485,000 | ||
Common area maintenance, parking and storage. | $2,300,000 | $2,400,000 | ||
[1] | Minimum rentals include all lease payments as well as fixed and variable common area maintenance (bCAMb), parking and storage fees, which were approximately $2.3 million and $2.4 million during the three months ended March 31, 2015 and 2014, respectively |
Commitments_and_Contingencies_1
Commitments and Contingencies (Purchase Commitments) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Commitments & Contingencies [Abstract] | ||
Purchase commitments with third party manufacturers | $146.90 | $202.30 |
Operating_Segments_and_Geograp
Operating Segments and Geographic Information (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
segment | segment | |
Operating Segments & Geographic Information [Abstract] | ||
Number of operating segments | 3 | 4 |
Operating_Segments_and_Geograp1
Operating Segments and Geographic Information (Information Related to Reportable Operating Business Segments) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Revenues | $262,193 | $312,429 | ||
Income from operations | -2,362 | 16,822 | ||
Foreign currency transaction gain (loss), net | 494 | -2,768 | ||
Interest income | 288 | 477 | ||
Interest expense | -219 | -191 | ||
Other income (expense), net | -331 | 141 | ||
Income (loss) before income taxes | -2,130 | 14,481 | ||
Depreciation and amortization | 9,719 | 9,373 | ||
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 261,968 | 312,171 | ||
Income from operations | 40,951 | 55,121 | ||
Depreciation and amortization | 3,990 | 5,090 | ||
Intersegment eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 15 | |||
Unallocated corporate and other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | -37,910 | [1] | -34,558 | [1] |
Depreciation and amortization | 3,742 | [1] | 2,684 | [1] |
Americas [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 105,769 | 117,120 | ||
Income from operations | 15,378 | 13,437 | ||
Depreciation and amortization | 1,974 | 2,448 | ||
Asia Pacific [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 99,775 | 130,915 | ||
Income from operations | 17,335 | 34,145 | ||
Depreciation and amortization | 1,213 | 1,740 | ||
Europe [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 56,424 | 64,136 | ||
Income from operations | 8,238 | 7,539 | ||
Depreciation and amortization | 803 | 902 | ||
Other businesses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 225 | 258 | ||
Income from operations | -5,403 | -3,756 | ||
Depreciation and amortization | $1,987 | $1,599 | ||
[1] | Includes a corporate component consisting primarily of corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, restructuring, depreciation and amortization of corporate and other assets not allocated to operating segments and costs of the same nature related to certain corporate holding companies. See Note 5-Restructuring for additional details. |
Legal_Proceedings_Legal_Tax_Pr
Legal Proceedings (Legal Tax Proceedings) (Details) | 0 Months Ended | 0 Months Ended | 3 Months Ended | ||||||
Feb. 25, 2015 | Jan. 13, 2015 | Mar. 31, 2015 | Mar. 15, 2013 | Mar. 15, 2013 | Jan. 09, 2013 | Jan. 09, 2013 | Dec. 12, 2014 | Mar. 31, 2015 | |
USD ($) | USD ($) | USD ($) | Mexican Federal Tax Authority [Member] | Mexican Federal Tax Authority [Member] | Mexican Federal Tax Authority [Member] | Mexican Federal Tax Authority [Member] | U.S. Customs and Border Protection [Member] | U.S. Customs and Border Protection [Member] | |
USD ($) | MXN | USD ($) | MXN | USD ($) | USD ($) | ||||
Income Tax Examination [Line Items] | |||||||||
Unpaid duties | $12,400,000 | ||||||||
Offer to settle claims | 3,500,000 | ||||||||
Initial assessment for unpaid duties | 11,540,000 | 5,250,000 | |||||||
Penalties and interest assessed | 22,000,000 | 280,000,000 | |||||||
Surety bond | 26,000,000 | 321,000,000 | |||||||
Legal accrual | $0 |
Legal_Proceedings_Litigation_M
Legal Proceedings (Litigation Matters And Other Disputes) (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Legal Proceedings [Abstract] | |
Legal Settlement Accrual | $4.20 |
Minimum Reasonably Possible Loss | 0 |
Maximum Reasonably Possible Loss | $9.80 |