Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 20, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 0-51754 | ||
Entity Registrant Name | CROCS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-2164234 | ||
Entity Address, Address Line One | 7477 East Dry Creek Parkway | ||
Entity Address, City or Town | Niwot | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80503 | ||
City Area Code | 303 | ||
Local Phone Number | 848-7000 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | CROX | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 879.4 | ||
Common stock outstanding (shares) | 68,268,347 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Part III incorporates certain information by reference from the registrant’s proxy statement for the 2020 annual meeting of stockholders to be filed no later than 120 days after the end of the registrant’s fiscal year ended December 31, 2019. | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Entity Central Index Key | 0001334036 | ||
Current Fiscal Year End Date | --12-31 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Income Statement [Abstract] | |||||
Revenues | $ 1,230,593 | $ 1,088,205 | $ 1,023,513 | ||
Cost of sales | 613,537 | 528,051 | 506,292 | ||
Gross profit | 617,056 | 560,154 | 517,221 | ||
Selling, general and administrative expenses | 488,407 | 495,028 | 494,601 | ||
Asset impairments | 0 | 2,182 | 5,284 | ||
Income from operations | 128,649 | 62,944 | 17,336 | ||
Foreign currency gains (losses), net | (1,323) | 1,318 | 563 | ||
Interest income | 601 | 1,281 | 870 | ||
Interest expense | (8,636) | (955) | (869) | ||
Other income, net | 31 | 569 | 280 | ||
Income before income taxes | 119,322 | 65,157 | 18,180 | ||
Income tax expense (benefit) | (175) | 14,720 | 7,942 | ||
Net income | 119,497 | 50,437 | 10,238 | ||
Dividends on Series A convertible preferred stock | [1] | 0 | (108,224) | (12,000) | |
Dividend equivalents on Series A convertible preferred shares related to redemption value accretion and beneficial conversion feature | 0 | [1] | (11,429) | (3,532) | |
Net income (loss) attributable to common stockholders | $ 119,497 | $ (69,216) | $ (5,294) | ||
Net income (loss) per common share: | |||||
Basic (in dollars per share) | $ 1.70 | $ (1.01) | $ (0.07) | ||
Diluted (in dollars per share) | $ 1.66 | $ (1.01) | $ (0.07) | ||
Weighted average common shares outstanding: | |||||
Basic (shares) | 70,357 | 68,421 | 72,255 | ||
Diluted (shares) | 71,771 | 68,421 | 72,255 | ||
[1] | On December 5, 2018, all issued and outstanding shares of Series A Convertible Preferred Stock were repurchased in exchange for cash or converted to common stock. As a result, amounts reported for the year ended December 31, 2018, include amounts resulting from the repurchase and conversion, in addition to dividends, payments to induce conversion, and accretion of dividend equivalents prior to December 5, 2018. |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 119,497 | $ 50,437 | $ 10,238 | |
Other comprehensive income: | ||||
Foreign currency gains (losses), net | (3,659) | (6,846) | 12,202 | |
Reclassification of foreign currency translation loss to income | [1] | (68) | (4,412) | 0 |
Total comprehensive income | $ 115,770 | $ 39,179 | $ 22,440 | |
[1] | Represents the reclassification of cumulative foreign currency translation adjustment upon liquidation of foreign subsidiaries during the year ended December 31, 2019 and upon closure of manufacturing operations during the year ended December 31, 2018, both of which are presented within ‘Selling, general and administrative expenses’ in the consolidated statements of operations. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 108,253 | $ 123,367 |
Accounts receivable, net of allowances of $18,797 and $20,477, respectively | 108,199 | 97,627 |
Inventories | 172,028 | 124,491 |
Income taxes receivable | 1,341 | 3,041 |
Other receivables | 8,711 | 7,703 |
Restricted cash — current | 1,500 | 1,946 |
Prepaid expenses and other assets | 25,350 | 22,123 |
Total current assets | 425,382 | 380,298 |
Property and equipment, net | 47,405 | 22,211 |
Intangible assets, net | 47,095 | 45,690 |
Goodwill | 1,578 | 1,614 |
Deferred tax assets, net | 24,747 | 8,663 |
Restricted cash | 2,292 | 2,217 |
Right-of-use assets | 182,228 | |
Other assets | 8,075 | 8,208 |
Total assets | 738,802 | 468,901 |
Current liabilities: | ||
Accounts payable | 95,754 | 77,231 |
Accrued expenses and other liabilities | 108,677 | 102,171 |
Income taxes payable | 4,207 | 5,089 |
Current operating lease liabilities | 48,585 | |
Total current liabilities | 257,223 | 184,491 |
Long-term income taxes payable | 4,522 | 4,656 |
Long-term borrowings | 205,000 | 120,000 |
Long-term operating lease liabilities | 140,148 | |
Other liabilities | 4 | 9,446 |
Total liabilities | 606,897 | 318,593 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, par value $0.001 per share, 104.0 million and 103.0 million issued, 68.2 million and 73.3 million shares outstanding, respectively | 104 | 103 |
Treasury stock, at cost, 35.8 million and 29.7 million shares, respectively | (546,208) | (397,491) |
Additional paid-in capital | 495,903 | 481,133 |
Retained earnings | 240,485 | 121,215 |
Accumulated other comprehensive loss | (58,379) | (54,652) |
Total stockholders’ equity | 131,905 | 150,308 |
Total liabilities and stockholders’ equity | $ 738,802 | $ 468,901 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands, shares in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowances | $ 18,797 | $ 20,477 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock issued (shares) | 104 | 103 |
Common shares outstanding (shares) | 68.2 | 73.3 |
Treasury stock (shares) | 35.8 | 29.7 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) | |
Beginning balance (shares) at Dec. 31, 2016 | 73,600 | 20,287 | |||||
Stockholders' equity - beginning balance at Dec. 31, 2016 | $ 220,383 | $ 94 | $ (284,237) | $ 364,397 | $ 195,725 | $ (55,596) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation | 11,619 | 11,619 | |||||
Exercises of stock options and issuance of restricted stock awards (shares) | 850 | 41 | |||||
Exercises of stock options and issuance of restricted stock awards | (3,045) | $ 1 | $ (75) | (2,971) | |||
Repurchases of common stock (shares) | (5,659) | 5,659 | |||||
Repurchases of common stock | (50,000) | $ (50,000) | |||||
Series A preferred dividends | (12,000) | (12,000) | |||||
Series A preferred accretion, net | (3,532) | (3,532) | |||||
Net income | 10,238 | 10,238 | |||||
Other comprehensive income (loss) | 12,202 | 12,202 | |||||
Ending balance (shares) at Dec. 31, 2017 | 68,791 | 25,987 | |||||
Stockholders' equity - ending balance at Dec. 31, 2017 | 185,865 | $ 95 | $ (334,312) | 373,045 | 190,431 | (43,394) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation | 13,732 | 13,732 | |||||
Exercises of stock options and issuance of restricted stock awards (shares) | 1,238 | 49 | |||||
Exercises of stock options and issuance of restricted stock awards | (772) | $ 1 | $ (48) | (725) | |||
Repurchases of common stock (shares) | (3,620) | 3,620 | |||||
Repurchases of common stock | (63,131) | $ (63,131) | |||||
Series A preferred repurchase | [1] | (84,224) | (84,224) | ||||
Series A preferred conversion (shares) | [2] | 6,897 | |||||
Series A preferred conversion | [2] | 100,000 | $ 7 | 99,993 | 0 | ||
Series A preferred dividends | [3] | (24,000) | (24,000) | ||||
Series A preferred accretion, net | [4] | (17,567) | (6,138) | (11,429) | |||
Net income | 50,437 | 50,437 | |||||
Other comprehensive income (loss) | (11,258) | (11,258) | |||||
Other | 1,226 | 1,226 | |||||
Ending balance (shares) at Dec. 31, 2018 | 73,306 | 29,656 | |||||
Stockholders' equity - ending balance at Dec. 31, 2018 | 150,308 | $ 103 | $ (397,491) | 481,133 | 121,215 | (54,652) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation | 14,412 | 14,412 | |||||
Exercises of stock options and issuance of restricted stock awards (shares) | 1,008 | 58 | |||||
Exercises of stock options and issuance of restricted stock awards | (1,168) | $ 1 | $ (1,527) | 358 | |||
Repurchases of common stock (shares) | (6,082) | 6,082 | |||||
Repurchases of common stock | (147,190) | $ (147,190) | |||||
Net income | 119,497 | 119,497 | |||||
Other comprehensive income (loss) | (3,727) | (3,727) | |||||
Ending balance (shares) at Dec. 31, 2019 | 68,232 | 35,796 | |||||
Stockholders' equity - ending balance at Dec. 31, 2019 | $ 131,905 | $ 104 | $ (546,208) | $ 495,903 | $ 240,485 | $ (58,379) | |
[1] | Represents a repurchase premium, which is the difference between cash paid and the carrying value of 100,000 shares of Series A Convertible Preferred Stock repurchased, including other costs associated with the transaction. | ||||||
[2] | Represents the issuance of common stock upon conversion of 100,000 shares of Series A Convertible Preferred Stock. | ||||||
[3] | Represents Series A Convertible Preferred Stock cash dividends declared and paid of $9.0 million, and $15.0 million of payments paid and payable to induce conversion. | ||||||
[4] | Represents total accretion of $17.6 million, net of $6.1 million acquired value of beneficial conversion feature attributable to repurchased Series A Convertible Preferred Stock. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)shares | ||
Statement of Stockholders' Equity [Abstract] | ||
Shares repurchased (shares) | shares | 100,000 | |
Preferred shares converted into common stock (shares) | shares | 100,000 | |
Cash dividends declared and paid | $ 9,000 | |
Inducements paid | 12,000 | |
Convertible preferred stock accretion of beneficial conversion feature | 17,567 | [1] |
Acquired value of beneficial conversion feature | 6,100 | |
Series A Convertible Preferred Stock | ||
Cash dividends declared and paid | 9,000 | |
Inducements paid | $ 15,000 | |
[1] | Represents total accretion of $17.6 million, net of $6.1 million acquired value of beneficial conversion feature attributable to repurchased Series A Convertible Preferred Stock. |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities: | ||||
Net income | $ 119,497 | $ 50,437 | $ 10,238 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 24,213 | 29,250 | 33,130 | |
Unrealized foreign currency loss (gain), net | (1,140) | (1,455) | 1,025 | |
Loss (gain) on disposals of assets | (213) | 5,019 | (842) | |
Share-based compensation | 14,412 | 13,105 | 9,773 | |
Asset impairments | 0 | 2,182 | 5,284 | |
Operating lease cost | 60,142 | |||
Provision (recovery) for doubtful accounts, net | 1,566 | 711 | (589) | |
Deferred taxes | (16,259) | 959 | (3,093) | |
Other non-cash items | (963) | 1,994 | (1,564) | |
Changes in operating assets and liabilities: | ||||
Accounts receivable, net of allowances | (15,015) | (24,623) | 620 | |
Inventories | (48,156) | (1,987) | 23,319 | |
Prepaid expenses and other assets | (4,012) | 9,703 | 18,907 | |
Accounts payable | 6,032 | 12,953 | (2,714) | |
Accrued expenses and other liabilities | 13,265 | 18,065 | 5,489 | |
Operating lease liabilities | (64,313) | |||
Income taxes | 902 | (2,151) | (719) | |
Cash provided by operating activities | 89,958 | 114,162 | 98,264 | |
Cash flows from investing activities: | ||||
Purchases of property, equipment, and software | (36,576) | (11,979) | (13,117) | |
Proceeds from disposal of property and equipment | 616 | 1,856 | 1,579 | |
Other | (276) | 13 | 0 | |
Cash used in investing activities | (36,236) | (10,110) | (11,538) | |
Cash flows from financing activities: | ||||
Proceeds from borrowings | 315,000 | 120,000 | 5,500 | |
Repayments of borrowings | (230,000) | (662) | (8,611) | |
Series A preferred stock repurchase | 0 | (183,724) | 0 | |
Dividends — Series A convertible preferred stock | [1] | (2,985) | (21,015) | (12,000) |
Repurchases of common stock | (147,190) | (63,131) | (50,000) | |
Other | (3,463) | (270) | (259) | |
Cash used in financing activities | (68,638) | (148,802) | (65,370) | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (569) | (4,775) | 3,053 | |
Net change in cash, cash equivalents, and restricted cash | (15,485) | (49,525) | 24,409 | |
Cash, cash equivalents, and restricted cash — beginning of year | 127,530 | 177,055 | 152,646 | |
Cash, cash equivalents, and restricted cash — end of year | 112,045 | 127,530 | 177,055 | |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||||
Cash paid for interest | 7,519 | 462 | 434 | |
Cash paid for income taxes | $ 16,050 | $ 18,633 | $ 13,208 | |
[1] | Represents $3.0 million paid to induce conversion of Series A Convertible Preferred Stock to common stock during the year ended December 31, 2019 and Series A Convertible Preferred Stock cash dividends declared and paid of $9.0 million and $12.0 million paid to induce conversion during the year ended December 31, 2018. |
Consolidated Statements Of Ca_2
Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Millions | Dec. 05, 2018 | Jan. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Cash Flows [Abstract] | |||||
Inducements paid | $ 12 | $ 3 | $ 15 | $ 3 | $ 12 |
Cash dividends declared and paid | $ 9 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Unless otherwise noted in this report, any description of the “Company,” “Crocs,” “we,” “us,” or “our” includes Crocs, Inc. and its consolidated subsidiaries within our reportable operating segments and corporate operations. We are engaged in the design, development, worldwide marketing, distribution, and sale of casual lifestyle footwear and accessories for men, women, and children. We strive to be the global leader in the sale of molded footwear characterized by functionality, comfort, color, and lightweight design. Our reportable operating segments include: the Americas, operating in North and South America; Asia Pacific, operating throughout Asia, Australia, and New Zealand; and Europe, Middle East, and Africa (“EMEA”), operating throughout Europe, Russia, the Middle East, and Africa. Basis of Presentation and Consolidation Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries, and reflect all adjustments which are necessary for a fair statement of financial position, results of operations, and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates Our consolidated financial statements are prepared in accordance with U.S. GAAP. These accounting principles require us to make certain estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions used to determine certain amounts that affect the financial statements are reasonable, based on information available at the time they are made. Management believes that the estimates, judgments, and assumptions made when accounting for items and matters such as, but not limited to, the allowance for doubtful accounts, customer rebates, sales returns, impairment assessments and charges, recoverability of long-lived assets, deferred tax assets, uncertain tax positions, income tax expense, share-based compensation expense, the assessment of lower of cost or net realizable value on inventory, useful lives assigned to long-lived assets, and depreciation and amortization. Additionally, we are periodically exposed to various contingencies in the ordinary course of conducting our business, including certain litigation, contractual disputes, employee relations matters, various tax or other governmental audits, and trademark and intellectual property matters and disputes. We record a liability for such contingencies to the extent that we conclude their occurrence is probable and the related losses are estimable. If it is reasonably possible that an unfavorable settlement of a contingency could exceed the established liability, we disclose the estimated impact on our liquidity, financial condition, and results of operations, if practicable. As the ultimate resolution of contingencies is inherently unpredictable, these assessments can involve a series of complex judgments about future events including, but not limited to, court rulings, negotiations between affected parties, and governmental actions. As a result, the accounting for loss contingencies relies heavily on management’s judgment in developing the related estimates and assumptions. See Note 17 — Legal Proceedings for additional information regarding our contingencies and legal proceedings. To the extent there are differences between these estimates and actual results, our consolidated financial statements may be materially affected. Reclassifications We have reclassified certain amounts in Note 13 — Income Taxes to conform to current period presentation. Transactions with Affiliates During the year ended December 31, 2019, we received services from three affiliates of Blackstone Capital Partners VI L.P. (“Blackstone”). Blackstone and certain of its permitted transferees beneficially owned 6,899,027 shares of our common stock until Blackstone sold 6,864,545 shares of common stock held directly by Blackstone and its affiliates on November 4, 2019 in an underwritten public offering. The other 34,482 shares of common stock were held by Gregg S. Ribatt, our former Chief Executive Officer and former member of our Board of Directors, which Blackstone may have been deemed to beneficially own, and were sold by Mr. Ribatt in October 2019. We incurred expenses to Blackstone’s legal counsel of $0.3 million in relation to this transaction. Certain Blackstone affiliates provide various services to us, including inventory count services, cybersecurity and consulting, and workforce management services. We incurred expenses for services from these affiliates of $2.2 million through November 4, 2019, and $0.8 million and $0.7 million in the years ended December 31, 2018 and 2017, respectively. Expenses related to these services are reported in ‘Selling, general and administrative expenses’ in the consolidated statements of operations. Revenue Recognition See Note 11 — Revenues for a summary of our revenue recognition policy. Shipping and Handling Costs and Fees Shipping and handling costs are expensed as incurred and are included in ‘Cost of sales’ in the consolidated statements of operations. Shipping and handling fees billed to customers are included in revenues. Taxes Assessed by Governmental Authorities Taxes assessed by governmental authorities that are directly imposed on a revenue transaction, including value added tax, are recorded on a net basis and are therefore excluded from revenues. Cost of Sales Our cost of sales includes costs incurred to design, produce, procure, and ship our footwear. These costs include our raw materials, both direct and indirect labor, shipping and handling including freight costs, utilities, maintenance costs, depreciation, packaging, and other manufacturing overhead and costs. Research, Design, and Development Expenses We continue to dedicate significant resources to product design and development based on opportunities we identify in the marketplace. We incurred expenses of $11.8 million, $14.1 million, and $13.4 million in research, design, and development activities for the years ended December 31, 2019, 2018, and 2017, respectively, which are expensed as incurred and are reported in ‘Selling, general and administrative expenses’ in the consolidated statements of operations. Selling, General and Administrative Expenses Our selling, general and administrative expenses include media advertising (television, radio, print, social, digital), tactical advertising (signs, banners, point-of-sale materials) and promotional costs. Advertising production costs are expensed when the advertising is first run. Advertising communication costs are expensed in the periods that the communications occur. Certain of our promotional expenses result from payments under endorsement contracts. Expenses under endorsement contracts are recognized as performance is received over the term of each endorsement agreement. Total marketing expenses, inclusive of advertising, production, promotion, and agency expenses, including variable marketing expenses, were $83.2 million, $68.6 million, and $59.1 million for the years ended December 31, 2019, 2018, and 2017, respectively. Prepaid advertising and promotional endorsement expenses of $11.6 million and $7.5 million, were included in ‘Prepaid expenses and other assets’ in the consolidated balance sheets at December 31, 2019 and 2018, respectively. Selling, general and administrative expenses consist primarily of labor and outside services, rent expense, bad debt expense, legal costs, amortization of intangible assets, as well as certain depreciation costs related to corporate and non-product assets and share-based compensation. Selling, general and administrative expenses also include costs for our marketing and sales organizations, and other functions including finance, legal, human resources, and information technology. Other Income, Net Other income, net primarily includes gains and losses associated with activities not directly related to making and selling footwear, as well as certain gains or losses on sales of non-operating assets. Foreign Currency Gains (Losses), Net Foreign currency gains (losses), net includes realized and unrealized foreign exchange gains and losses resulting from remeasurement and settlement of foreign-currency transactions denominated in a currency other than the functional currency of an entity, and realized and unrealized gains and losses on forward foreign currency exchange derivative contracts. Realized foreign exchange gains and losses are reported in the operating segment in which they occur. Foreign exchange gains and losses on intercompany balances and forward foreign exchange derivative contracts are reported within corporate operations. Other Comprehensive Income Our foreign subsidiaries use their foreign currency as their functional currency. Functional currency assets and liabilities are translated into U.S. Dollars using exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates during the period. Resulting translation gains and losses are reported in other comprehensive income (loss), until the substantial disposition of a subsidiary, at which time accumulated translation gains or losses are reclassified into net income. Income Taxes Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of other assets and liabilities. We provide for income taxes at the current and future enacted tax rates and laws applicable in each taxing jurisdiction. We account for the tax effects of global intangible low-taxed income (“GILTI”) as a component of income tax expense in the period the tax arises, to the extent applicable. We use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. We recognize interest and penalties related to income tax matters in income tax expense in the consolidated statement of operations. See Note 13 — Income Taxes for further discussion. Cash and Cash Equivalents Cash and cash equivalents represent cash and short-term, highly-liquid investments with maturities of three months or less at the date of purchase. We report receivables from credit card companies, if expected to be received within five days, in cash and cash equivalents. Restricted Cash Restricted cash primarily consists of funds to secure certain retail store leases, certain customs requirements, and other contractual arrangements. Accounts Receivable, Net Accounts receivable are recorded at invoiced amounts, net of reserves and allowances. We reduce the carrying value for estimated uncollectible accounts based on a variety of factors including the length of time receivables are past due, economic trends and conditions affecting our customer base, and historical collection experience. Specific provisions are recorded for individual receivables when we become aware of a customer’s inability to meet its financial obligations. We write off accounts receivable to the reserves when they are deemed uncollectible or, in certain jurisdictions, when legally able to do so. See Schedule II in Part IV - Item 15. Exhibits, Financial Statement Schedule for more information. Inventories Inventories are comprised of finished goods and are stated at the lower of cost or net realizable value. Effective January 1, 2018, we completed implementation of a new inventory costing system for approximately 95% of our inventories. In connection with the implementation, we changed our method of inventory costing from a moving average cost method to a first-in-first-out method. We believe this change in accounting principle is preferable because it results in more precision and consistency in global and regional inventory costs, more efficient analysis, and better matching of inventory costs with revenues, it better matches the physical flow of inventories, and it improves comparability with industry peers. The change from our former inventory cost method did not have a material effect on inventory or cost of sales, and, as a result, prior comparative financial statements have not been restated. We estimate the market value of inventory based on an analysis of historical sales trends of our individual product lines, the impact of market trends and economic conditions, and a forecast of future demand, giving consideration to the value of current orders in-house for future sales of inventory, as well as plans to sell discontinued or end-of-life inventory through our outlet stores, among other off-price channels. Estimates may differ from actual results due to the quantity, quality, and mix of products in inventory, consumer and retailer preferences, and market conditions. If the estimated market value is less than its carrying value, the carrying value is adjusted to the market value and the difference is recorded in ‘Cost of sales’ in our consolidated statements of operations. Reserves for the risk of physical loss of inventory are estimated based on historical experience and are adjusted based upon physical inventory counts, and recorded within ‘Cost of sales’ in our consolidated statements of operations. Property and Equipment, Net Property, equipment, furniture, and fixtures are stated at original cost, less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful asset lives, which are reviewed periodically and have the following ranges: machinery and equipment: 2 to 10 years; furniture, fixtures, and other: 2 to 10 years. Leasehold improvements are stated at cost and amortized on a straight-line basis over their estimated economic useful lives or the lease term, whichever is shorter. Costs of enhancements or modifications that substantially extend the capacity or useful life of an asset are capitalized and depreciated accordingly. Ordinary repairs and maintenance are expensed as incurred. Depreciation of warehouse- and distribution-related assets is included in cost of sales in our consolidated statements of operations. In 2017 and through the third quarter of 2018, when all manufacturing was transferred to third-party manufacturers, cost of sales also included depreciation related to manufacturing assets. Depreciation related to corporate, non-product, and non-manufacturing assets is included in ‘Selling, general and administrative expenses’ in our consolidated statements of operations. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from our consolidated balance sheets and the resulting gain or loss, if any, is reflected in ‘Income from operations’ in the consolidated statements of operations. Goodwill and Other Intangible Assets, Net We evaluate the carrying value of our goodwill and indefinite-lived intangible assets for impairment at the reporting unit level at least annually or when an interim triggering event has occurred indicating potential impairment. Our annual test is performed as of the last day of our fiscal fourth quarter. We continuously monitor the performance of our definite-lived intangible assets and evaluate for impairment when evidence exists that certain events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Significant judgments and assumptions are required in such impairment evaluations. Definite-lived intangible assets are stated at cost, less accumulated amortization. Amortization is recorded using the straight-line method over the estimated lives of the assets. Direct costs of acquiring or developing internal-use computer software, including costs of employees, are capitalized and classified within intangible assets. Software maintenance and training costs are expensed in the period incurred. Initial costs associated with internally-developed-and-used software are expensed until it is determined that the project has reached the application development stage, after which subsequent additions, modifications, or upgrades are capitalized to the extent that they add functionality. Our capitalized software consists primarily of enterprise resource system software, warehouse management software, and point of sale software. Amortization for software is provided using the straight-line method over the estimated useful asset lives, which are reviewed periodically and range from 2 to 8 years. Amortization of capitalized software used in warehouse- and distribution-related activities is included in ‘Cost of sales’ in the consolidated statements of operations. In 2017 and through the third quarter of 2018, when all manufacturing was transferred to third-party manufacturers, cost of sales also included amortization related to capitalized software used in manufacturing. Amortization related to corporate, non-product, and non-manufacturing assets, such as our global information systems, is included in ‘Selling, general, and administrative expenses’ in the consolidated statements of operations. Amortization for patents, copyrights, and trademarks is provided using the straight-line method over the estimated useful asset lives, which are reviewed periodically and range from 7 to 25 years. Impairment of Long-Lived Assets Long-lived assets to be held and used are evaluated for impairment when events or circumstances indicate the carrying value of a long-lived asset or asset group is less than the undiscounted cash flows from its use and eventual disposition over its remaining economic life. We assess recoverability by comparing the sum of projected undiscounted cash flows from the use and eventual disposition over the remaining economic life of a long-lived asset or asset group to its carrying value, and record a loss from impairment if the carrying value is more than its undiscounted cash flows. For assets involved in Crocs’ retail business, the asset group is at the retail store level. As retail store performance will vary in new and existing markets due to many factors, including maturity of the market and brand recognition, we periodically evaluate the fixed assets, leasehold improvements, and right-of-use assets related to our retail locations for impairment. Assets or asset groups to be abandoned or from which no future benefit is expected are written down to zero in the period it is determined they will no longer be used and are removed entirely from service. See Note 3 — Property and Equipment, Net for a discussion of impairment losses recorded during the periods presented. Share-Based Compensation Stock Options Stock options are granted with exercise prices equal to the fair market value of our common stock on the date of grant. We use the Black-Scholes option-pricing model to estimate the grant date fair value of stock options, which requires the use of assumptions, including the expected term of the option, expected volatility of our stock price, our expected dividend yield, and the risk-free interest rate, among others. These assumptions reflect our best estimates, however; they involve inherent uncertainties including market conditions and employee behavior that are generally outside of our control. We expense all share-based compensation awarded based on the grant date fair value of the awards using the straight-line method over the requisite service period, adjusted for forfeitures as they occur. Restricted Stock Awards (“RSAs”) and Restricted Stock Units (“RSUs”) We grant RSAs, service-condition RSUs, performance-condition RSUs, and market-condition RSUs. The grant date fair values of RSAs, service-condition RSUs, and performance-condition RSUs are based on the closing market price of our common stock on the grant date; the grant date fair value and derived service period of market-condition RSUs is estimated using a Monte Carlo simulation valuation model. Our service-condition RSUs vest based on continued service; our performance-condition RSUs vest based on achievement of multiple weighted performance goals, certification of performance achievement by the Compensation Committee of the Board of Directors, and continued service; our market-condition RSUs vest based on the market price of our stock. Compensation expense, net of forfeitures, is recognized on a straight-line basis over the requisite service period. For performance-condition RSUs, compensation expense is updated for our expected performance level against performance goals at the end of each reporting period, which involves judgment as to achievement of certain performance metrics. See Note 12 — Share-Based Compensation for additional information related to share-based compensation. Earnings per Share Basic and diluted earnings per common share (“EPS”) is presented using the treasury stock method. Diluted EPS reflects the potential dilution to common shareholders from securities that could share in our earnings and is calculated by adjusting weighted average outstanding shares, assuming conversion of all potentially dilutive stock options and awards. Anti-dilutive securities are excluded from diluted EPS. See Note 14 — Earnings per Share for additional information. Derivative Foreign Currency Contracts We enter into forward foreign currency exchange contracts to mitigate the potential impact of foreign currency exchange rate risk. By policy, we do not enter into these contracts for trading purposes or speculation. The fair value of these contracts is reported either as an asset or liability in our consolidated balance sheets. Changes in the fair value of these contracts are recorded in ‘Foreign currency gains (losses), net’ in our consolidated statements of operations. We did not designate any derivative instruments for hedge accounting during any of the periods presented. See Note 8 — Derivative Financial Instruments for further information. Fair Value U.S. GAAP for fair value establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). We utilize a combination of market and income approaches to value derivative instruments. Our financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels of the hierarchy and the related inputs are as follows: Level Inputs 1 Unadjusted quoted prices in active markets for identical assets and liabilities. 2 Unadjusted quoted prices in active markets for similar assets and liabilities; Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or Inputs other than quoted prices that are observable for the asset or liability. 3 Unobservable inputs for the asset or liability. We categorize fair value measurements within the fair value hierarchy based upon the lowest level of the most significant inputs used to determine fair value. Our non-financial assets, which primarily consist of property and equipment, goodwill, and other intangible assets, are not required to be carried at fair value on a recurring basis and are reported at carrying value. However, on a periodic basis or whenever events or changes in circumstances indicate that their carrying value may not be fully recoverable (and at least annually for goodwill and indefinite-lived intangible assets), non-financial instruments are assessed for impairment and, if applicable, written down to and recorded at fair value. See Note 7 — Fair Value Measurements for further discussion related to estimated fair value measurements. Consolidated Statements of Cash Flows - Supplemental Schedule of Non-Cash Investing and Financing Activities Year Ended December 31, 2019 2018 2017 (in thousands) Accrued purchases of property, equipment, and software $ 15,206 $ 1,141 $ 2,195 Series A preferred stock conversion — 100,000 — Series A preferred stock accretion, net (1) — 17,567 3,532 Vendor financed insurance premiums — — 1,450 (1) Represents total accretion of $17.6 million, net of $6.1 million acquired value of beneficial conversion feature attributable to repurchased Series A Convertible Preferred Stock for the year ended December 31, 2018. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS New Accounting Pronouncement Adopted Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance that permits reclassification of the income tax effects of the U.S. Tax Cuts and Job Act (“Tax Act”) on accumulated other comprehensive income (“AOCI”) to retained earnings. This guidance may be adopted retrospectively to each period (or periods) in which the income tax effects of the Tax Act related to items remaining in AOCI are recognized, or at the beginning of the period of adoption. The guidance became effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. This guidance became effective during the first quarter of 2019; however, we did not elect to make the optional reclassification. Our policy is to release stranded tax effects from AOCI using either a specific identification approach or portfolio approach based on the nature of the underlying item. Leases In February 2016, the FASB issued authoritative guidance related to accounting for leases. On January 1, 2019, we adopted the guidance using the modified retrospective method applied as of the date of adoption. The comparative information presented in the consolidated financial statements was not restated and is reported under the accounting standards in effect for the periods presented. We have elected all of the available transition practical expedients, including the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We have elected not to apply ‘hindsight’ when adopting the standard for determining the reasonably certain lease term and in assessing impairments. We have elected the short-term lease exemption, which means we have not and will not recognize a right-of-use asset or liability for leases that qualify for the short-term exemption and will recognize those lease expenses on a straight-line basis over the lease term in our consolidated statements of operations. Further, we have elected to combine lease and non-lease components for all of our leases. Adoption of the new standard resulted in the recognition of right-of-use assets and liabilities of approximately $176.1 million and $187.4 million, respectively, as of January 1, 2019, with additional adjustments to ‘Prepaid expenses and other assets’, ‘Accrued expenses and other liabilities’, and ‘Retained earnings’. As a result of the adoption of new lease accounting standards, we assessed the initial right-of-use assets for impairment and recorded non-cash impairments of $0.2 million within ‘Retained earnings’ in our consolidated balance sheet. The adoption of this guidance did not have a significant impact on the consolidated statements of operations or cash flows. New Accounting Pronouncements Not Yet Adopted Measurement of Credit Losses In June 2016, and through subsequent amendments, the FASB issued guidance that requires the measurement and recognition of expected credit losses for financial assets. This new model replaces the existing “current incurred loss” model with a forward-looking “current expected credit loss” model. This guidance becomes effective for annual reporting periods beginning after December 15, 2019, including interim periods within those periods. At this time, based on the nature of our financial instruments included within the scope of this standard, which are primarily trade and other receivables, and our initial analyses, we do not expect this standard to have a material impact on our consolidated financial statements. Implementation Costs Incurred in Cloud Computing Arrangements In August 2018, the FASB issued authoritative guidance related to the treatment of implementation costs incurred in a hosting arrangement that is considered a service contract. This guidance becomes effective for annual reporting periods beginning after December 15, 2019, including interim periods within those periods, with early adoption permitted, and will be applied prospectively to all implementation costs incurred after the date of adoption. Upon adoption, we do not expect this standard to have a material impact on our consolidated financial statements. Simplifying Accounting for Income Taxes In December 2019, the FASB issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The standard will be effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those periods. We are currently evaluating the impact of adopting this new accounting guidance on our consolidated financial statements. Other Pronouncements Other new pronouncements issued but not effective until after December 31, 2019 are not expected to have a material impact on our consolidated financial statements. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET ‘Property and equipment, net’ consists of the following: December 31, 2019 2018 (in thousands) Leasehold improvements $ 64,540 $ 63,702 Machinery and equipment 39,011 20,054 Furniture, fixtures, and other 19,761 16,779 Construction-in-progress 3,697 2,632 Property and equipment 127,009 103,167 Less: Accumulated depreciation and amortization (79,604) (80,956) Property and equipment, net $ 47,405 $ 22,211 Asset Retirement Obligations We are contractually obligated, under certain of our lease agreements, to restore certain retail and office facilities back to their original condition. At lease inception, the estimated fair value of these liabilities is recorded along with a related asset. Asset retirement obligations were not material to the consolidated balance sheets in the years ended December 31, 2019 or 2018. Depreciation and Amortization Expense Depreciation and amortization expense related to property and equipment, reported in ‘Cost of sales’ and ‘Selling, general and administrative expenses’ was: Year Ended December 31, 2019 2018 2017 (in thousands) Cost of sales $ 1,711 $ 1,422 $ 2,278 Selling, general and administrative expenses 7,174 11,180 12,723 Total depreciation and amortization expense $ 8,885 $ 12,602 $ 15,001 Disposals of Property and Equipment and Intangible Assets We recognized net gains on disposals of property and equipment and intangible assets of $0.2 million and $0.8 million, respectively, for the years ended December 31, 2019 and 2017, and net losses on disposals of property and equipment and intangible assets of $4.8 million for the year ended December 31, 2018, which are included in ‘Selling, general and administrative expenses’ in the consolidated statement of operations. Asset Impairments We recorded no asset impairments during the year ended December 31, 2019. During the years ended December 31, 2018 and 2017, we recorded impairments of $0.9 million and $0.5 million, respectively, for underperforming retail stores. Impairments for retail stores by reportable operating segment, were: Year Ended December 31, 2018 2017 Asset Impairment Number of Asset Impairment Number of (in thousands, except store count data) Americas $ 138 1 $ 455 3 Asia Pacific 760 12 — — EMEA — — 75 1 Total $ 898 13 $ 530 4 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill All of our goodwill is in the EMEA segment. The changes in goodwill for the years ended December 31, 2019 and 2018 were: Goodwill (in thousands) Balance at December 31, 2017 $ 1,688 Foreign currency translation (74) Balance at December 31, 2018 1,614 Foreign currency translation (36) Balance at December 31, 2019 $ 1,578 Accumulated goodwill impairment at December 31, 2019 was $0.8 million. Intangible Assets, Net ‘Intangible assets, net’ reported in the consolidated balance sheets consist of the following: December 31, 2019 December 31, 2018 Gross Accum. Amortiz. Net Gross Accum. Amortiz. Net (in thousands) Intangible assets subject to amortization: Capitalized software $ 120,620 $ (78,387) $ 42,233 $ 138,857 $ (97,900) $ 40,957 Patents, copyrights, and trademarks 4,988 (4,373) 615 5,338 (4,588) 750 Intangible assets not subject to amortization: In progress 4,170 — 4,170 3,906 — 3,906 Trademarks and other 77 — 77 77 — 77 Total $ 129,855 $ (82,760) $ 47,095 $ 148,178 $ (102,488) $ 45,690 At December 31, 2019, the weighted average remaining useful life of intangibles subject to amortization was approximately 6.3 years. Amortization Expense Amortization expense related to definite-lived intangible assets, reported in ‘Cost of sales’ and ‘Selling, general and administrative expenses’ was: Year Ended December 31, 2019 2018 2017 (in thousands) Cost of sales $ 3,398 $ 3,889 $ 4,550 Selling, general and administrative expenses 11,930 12,759 13,579 Total amortization expense $ 15,328 $ 16,648 $ 18,129 Estimated future annual amortization expense of intangible assets is: As of December 31, 2019 (in thousands) 2020 $ 15,284 2021 14,941 2022 4,303 2023 3,658 2024 2,620 Thereafter 2,042 Total $ 42,848 |
Accrued Expenses And Other Liab
Accrued Expenses And Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses And Other Liabilities | ACCRUED EXPENSES AND OTHER LIABILITIES Amounts reported in ‘Accrued expenses and other liabilities’ in the consolidated balance sheets were: December 31, 2019 2018 (in thousands) Accrued compensation and benefits $ 42,460 $ 43,970 Fulfillment, freight, and duties 20,110 12,234 Professional services 13,361 11,124 Accrued rent and occupancy (1) 4,682 6,956 Return liabilities 7,090 6,429 Sales/use and value added taxes payable 6,843 5,601 Royalties payable and deferred revenue 3,740 3,356 Other (2) 10,391 12,501 Total accrued expenses and other liabilities $ 108,677 $ 102,171 (1) At December 31, 2019, includes accrued rent and occupancy costs for leases with original terms of one year or less, which are excluded from recognition under the new lease accounting guidance adopted as of January 1, 2019. See Note 2 — Recent Accounting Pronouncements for more information. (2) At December 31, 2018, includes accrued payments of $3.0 million to induce the conversion of Series A Convertible Preferred Stock into shares of common stock. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES We adopted authoritative guidance related to leases effective January 1, 2019 using the modified retrospective method. The comparative information presented in the consolidated financial statements was not restated and is reported under the accounting standards in effect for the periods presented. See ‘Leases’ in Note 2 — Recent Accounting Pronouncements for a discussion of the significant changes resulting from adoption of the guidance. Our lease portfolio consists primarily of real estate assets, which includes retail, warehouse, distribution center, and office spaces, under operating leases expiring at various dates through 2033. Leases with an original term of twelve months or less are not reported in the consolidated balance sheet; expense for these short-term leases is recognized on a straight-line basis over the lease term. Many leases include one or more options to renew, with renewal terms that, if exercised by us, may extend the lease term. The exercise of these renewal options is at our discretion. When assessing the likelihood of a renewal or termination, we consider the significance of leasehold improvements, availability of alternative locations, and the cost of relocation or replacement, among other considerations. The depreciable lives of leasehold improvements are the shorter of the useful lives of the improvements or the expected lease term. We determine the lease term for each lease based on the terms of each contract and factor in renewal and early termination options if such options are reasonably certain to be exercised. Due to our centralized treasury function, we utilize a portfolio approach to discount our lease obligations. We assess the expected lease term at lease inception, and discount the lease using a fully-secured annual incremental borrowing rate, adjusted for time value corresponding with the expected lease term. Certain of our retail store leases include rental payments based upon a percentage of retail sales in excess of a minimum fixed rental. In some cases, there is no fixed minimum rental and the entire rental payment is based upon a percentage of sales. Certain of our warehouse leases have rental payments that vary based upon the volume of product placed in storage. In addition, certain leases include rental payments adjusted periodically for changes in price level indexes. We recognize expense for these types of payments as incurred and report them as variable lease expense. Right-of-Use Assets and Operating Lease Liabilities Amounts reported in the consolidated balance sheet were: December 31, 2019 (in thousands) Assets: Right-of-use assets $ 182,228 Liabilities: Current operating lease liabilities $ 48,585 Long-term operating lease liabilities 140,148 Total operating lease liabilities $ 188,733 Lease Costs and Other Information Lease-related costs, reported within ‘Cost of sales’ and ‘Selling, general and administrative expenses’, were: Year Ended December 31, 2019 (in thousands) Operating lease cost $ 60,142 Short-term lease cost 3,771 Variable lease cost 16,936 Total lease costs $ 80,849 Other information related to leases, including supplemental cash flow information, consists of: Year Ended December 31, 2019 (in thousands) Cash paid for operating leases $ 63,241 Right-of-use assets obtained in exchange for operating lease liabilities (1) 233,437 (1) Includes $176.1 million for operating leases existing on January 1, 2019 and a net $57.3 million for operating leases that commenced or were modified in the year ended December 31, 2019. As of December 31, 2019 Weighted average remaining lease term (in years) 5.9 Weighted average discount rate 4.8 % Maturities The maturities of our operating lease liabilities were: As of December 31, 2019 (in thousands) 2020 $ 52,434 2021 47,607 2022 33,138 2023 23,943 2024 14,228 Thereafter 48,996 Total future minimum lease payments 220,346 Less: imputed interest (31,613) Total operating lease liabilities $ 188,733 Leases That Have Not Yet Commenced As of December 31, 2019, we had significant obligations for leases that have not yet commenced related to our office relocation and new EMEA distribution center projects. In the first quarter of 2019, we entered into a lease for our new corporate headquarters and regional office in Broomfield, Colorado. The contractual commitment related to this lease, with payments beginning in March 2020 and continuing through August 2030, is approximately $20.4 million, with expected net capital investments totaling $7.0 million. In the fourth quarter of 2019, we entered into a lease for a new distribution center in Dordrecht, the Netherlands, which is expected to replace our existing distribution center in Rotterdam by the end of 2021. The contractual commitment related to this lease, with payments expected to begin in January 2021 and continuing through December 2030, is approximately €21.9 million, or $24.6 million, with expected total capital investments of approximately €20.0 million, or $22.4 million. Comparative Information as Reported Under Previous Accounting Standards The following comparative information is reported based upon previous accounting standards in effect for the periods presented. Future minimum lease payments under operating leases were: As of (in thousands) 2019 $ 42,455 2020 36,299 2021 29,714 2022 20,721 2023 15,334 Thereafter 54,149 Total minimum lease payments (1) $ 198,672 (1) Includes future minimum lease payments of $25.4 million related to the new distribution center in Dayton, Ohio. Rent expense for operating leases was: Year Ended December 31, 2018 2017 (in thousands) Minimum rentals (1) $ 66,049 $ 78,779 Contingent rentals 14,297 14,294 Total rent expense $ 80,346 $ 93,073 (1) Minimum rentals include all lease payments as well as fixed and variable common area maintenance, parking, and storage fees, which were approximately $9.3 million and $10.0 million for the years ended December 31, 2018 and 2017, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements The financial assets and liabilities that are measured and recorded at fair value on a recurring basis consist of our derivative instruments. Our derivative instruments are forward foreign currency exchange contracts. We manage credit risk of our derivative instruments on the basis of our net exposure with our counterparty. All of our derivative instruments are classified as Level 2 of the fair value hierarchy and are reported in the consolidated balance sheets within either ‘Prepaid expenses and other assets’ or ‘Accrued expenses and other liabilities’ at December 31, 2019 and 2018. The fair values of our derivative instruments were an asset of $0.1 million and a liability of $1.3 million at December 31, 2019 and 2018, respectively. See Note 8 — Derivative Financial Instruments for more information. The carrying amounts of our cash, cash equivalents, and restricted cash, accounts receivable, accounts payable, and current accrued expenses and other liabilities approximate their fair value as recorded due to the short-term maturity of these instruments. Our borrowing instruments are recorded at their carrying values in the consolidated balance sheets, which may differ from their respective fair values. The fair values of our outstanding borrowings approximate their carrying values at December 31, 2019 and 2018, based on interest rates currently available to us for similar borrowings and were: December 31, 2019 December 31, 2018 Carrying Value Fair Carrying Value Fair (in thousands) Borrowings $ 205,000 $ 205,000 $ 120,000 $ 120,000 Non-Financial Assets and Liabilities Our non-financial assets, which primarily consist of property and equipment, goodwill, and other intangible assets, are not required to be carried at fair value on a recurring basis and are reported at carrying value. The fair values of these assets were determined based on Level 3 measurements, including estimates of the amount and timing of future cash flows based upon historical experience, expected market conditions, and management’s plans. We recorded impairments as follows: Year Ended December 31, 2018 2017 (in thousands) Supply chain assets impairment $ 1,284 $ — Retail store assets impairment 898 530 Discontinued project — 4,754 Total asset impairments $ 2,182 $ 5,284 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS We transact business in various foreign countries and are therefore exposed to foreign currency exchange rate risk that impacts the reported U.S. Dollar amounts of revenues, expenses, and certain foreign currency monetary assets and liabilities. In order to manage exposure to fluctuations in foreign currency and to reduce the volatility in earnings caused by fluctuations in foreign exchange rates, we enter into forward contracts to buy and sell foreign currency. By policy, we do not enter into these contracts for trading purposes or speculation. Counterparty default risk is considered low because the forward contracts we enter into are over-the-counter instruments transacted with highly-rated financial institutions. We were not required to and did not post collateral as of December 31, 2019 or 2018. Our derivative instruments are recorded at fair value as a derivative asset or liability in the consolidated balance sheets. We report derivative instruments with the same counterparty on a net basis when a master netting arrangement is in place. Changes in fair value are recognized within ‘Foreign currency gains (losses), net’ in the consolidated statements of operations. For the consolidated statements of cash flows, we classify cash flows from derivative instruments at settlement in the same category as the cash flows from the related hedged items within ‘Cash provided by operating activities.’ Results of Derivative Activities The fair values of derivative assets and liabilities, net, all of which are classified as Level 2, reported within either ‘Prepaid expenses and other assets’ or ‘Accrued expenses and other liabilities’ in the consolidated balance sheets were: December 31, 2019 December 31, 2018 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities (in thousands) Forward foreign currency exchange contracts $ 535 $ (424) $ 943 $ (2,256) Netting of counterparty contracts (424) 424 (943) 943 Foreign currency forward contract derivatives $ 111 $ — $ — $ (1,313) The notional amounts of outstanding forward foreign currency exchange contracts shown below report the total U.S. Dollar equivalent position and the net contract fair values for each foreign currency position. December 31, 2019 December 31, 2018 Notional Fair Value Notional Fair Value (in thousands) Euro $ 46,757 $ 36 $ 34,959 $ (92) Singapore Dollar 31,255 344 34,584 254 Japanese Yen 11,823 63 25,561 (178) South Korean Won 10,328 (82) 9,408 63 British Pound Sterling 9,155 (104) 22,185 183 Other currencies 24,969 (146) 67,885 (1,543) Total $ 134,287 $ 111 $ 194,582 $ (1,313) Latest maturity date January 2020 January 2019 Amounts reported in ‘Foreign currency gains (losses), net’ in the consolidated statements of operations include both realized and unrealized gains (losses) from foreign currency transactions and derivative contracts and were as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Foreign currency transaction gains (losses) $ (356) $ 552 $ 2,284 Foreign currency forward exchange contracts gains (losses) (967) 766 (1,721) Foreign currency gains (losses), net $ (1,323) $ 1,318 $ 563 |
Revolving Credit Facility and B
Revolving Credit Facility and Bank Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility and Bank Borrowings | REVOLVING CREDIT FACILITY AND BANK BORROWINGS Our borrowings were as follows: December 31, 2019 2018 (in thousands) Revolving credit facilities $ 205,000 $ 120,000 Less: Current portion of borrowings — — Total long-term borrowings $ 205,000 $ 120,000 The weighted average interest rate on outstanding borrowings as of December 31, 2019 and 2018 was 3.96% and 4.69%, respectively. Senior Revolving Credit Facility In July 2019, Crocs, Inc. and certain of its subsidiaries (the “Borrowers”) entered into a Second Amended and Restated Credit Agreement (as amended, the “Credit Agreement”), with the lenders named therein and PNC Bank, National Association, as a lender and administrative agent for the lenders, which provides for a revolving credit facility of $450.0 million, which can be increased by an additional $150.0 million subject to certain conditions (the “Facility”). Borrowings under the Credit Agreement allow for us to borrow at either a variable rate based on a domestic base rate, defined as the highest of (i) the Federal Funds open rate, plus 0.25%, (ii) the Prime Rate, and (iii) the Daily LIBOR rate, plus 1%, or at a LIBOR rate, plus an applicable margin ranging from 1.00% to 1.875% based on our leverage ratio. Borrowings under the Credit Agreement are secured by all of the assets of the Borrowers, and guaranteed by certain other subsidiaries of the Borrowers. The Credit Agreement requires us to maintain a minimum interest coverage ratio of 4.00 to 1.00, and a maximum leverage ratio of (i) 3.50 to 1.00 from September 30, 2019 to September 30, 2020, and (ii) 3.25 to 1.00 from December 31, 2020 and thereafter (subject to an increase to 4.00 to 1.00 in the event of certain permitted acquisitions or stock repurchases). The Credit Agreement permits (i) stock repurchases so long as after giving effect to such stock repurchases, the maximum leverage ratio does not exceed the applicable maximum leverage ratio, less 0.25; and (ii) certain acquisitions so long as there is borrowing availability under the Credit Agreement of at least $40.0 million. As of December 31, 2019, we were in compliance with all financial covenants under the Credit Agreement. As of December 31, 2019, the total commitments available from the lenders under the Facility were $450.0 million. At December 31, 2019, we had $205.0 million in outstanding borrowings, which are due when the Facility matures in July 2024, and $4.6 million in outstanding letters of credit under the Facility, which reduces amounts available for borrowing under the Facility. As of December 31, 2019 and 2018, we had $240.4 million and $129.4 million, respectively, of available borrowing capacity under the Facility. We also have a suspended revolving credit facility in Asia, under which we had no borrowings during the years ended December 31, 2019 and 2018 or outstanding at December 31, 2019 or 2018. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | EQUITY Common Stock We have one class of common stock with a par value of $0.001 per share. There are 250.0 million shares of common stock authorized for issuance. Holders of common stock are entitled to one vote per share on all matters presented to common stockholders. Common Stock Repurchase Program On February 20, 2018, the Board of Directors approved and authorized a program to repurchase up to $500.0 million of our common stock, and on May 5, 2019, the Board approved an increase to the repurchase authorization of an additional $500.0 million of our common stock. The number, price, structure, and timing of the repurchases are at our sole discretion and may be made depending on market conditions, liquidity needs, restrictions under our revolving credit facility, and other factors. The Board of Directors may suspend, modify, or terminate the program at any time without prior notice. Share repurchases may be made in the open market or in privately negotiated transactions. The repurchase authorization does not have an expiration date and does not obligate us to acquire any amount of our common stock. Under Delaware state law, these shares are not retired, and the issuer has the right to resell any of the shares repurchased. We repurchased 6.1 million shares of our common stock at a cost of $147.2 million, including commissions during the year ended December 31, 2019. We repurchased 3.6 million shares of our common stock at a cost of $63.1 million, including commissions, during the year ended December 31, 2018. We repurchased 5.7 million shares of our common stock at a cost of $50.0 million during the year ended December 31, 2017. As of December 31, 2019, we had remaining authorization to repurchase approximately $508.6 million of our common stock, subject to restrictions under our Credit Agreement. Preferred Stock We have authorized and available for issuance 5.0 million shares of preferred stock. Of these preferred shares, 1.0 million were authorized as Series A Convertible Preferred Stock with a par value of $0.001 per share and none were issued and outstanding as of December 31, 2019. 2018 Repurchase and Conversion On December 5, 2018, all of the outstanding Series A Preferred shares were repurchased or converted to common stock. As a result, we recognized the remaining unamortized original issue discount and beneficial conversion feature accretion of $14.7 million, and settled the beneficial conversion feature related to the repurchased Series A Preferred of $6.1 million, resulting in a net increase of $8.6 million in ‘Dividend equivalents on Series A convertible preferred stock related to redemption value accretion and beneficial conversion feature’ in the consolidated statement of operations. We repurchased 100,000 shares of Series A Preferred with a carrying value of $100.0 million in exchange for a cash payment of $183.7 million. The repurchase payment in excess of the carrying value of $83.7 million is reported within ‘Dividends on Series A convertible preferred stock’ in the consolidated statement of operations for the year ended December 31, 2018. The remaining 100,000 shares of Series A Preferred were converted to 6,896,548 shares common stock. In connection with the conversion, we paid $15.0 million in cash to induce conversion, of which $12.0 million was paid at closing, with the remaining $3.0 million paid in January 2019. In addition, we paid other costs associated with this transaction of $0.5 million. The $15.0 million inducement dividend and the $0.5 million of other costs are reported within ‘Dividends on Series A convertible preferred stock’ in the consolidated statement of operations for the year ended December 31, 2018. Subsequently, in November 2019, Blackstone sold all shares of its common stock in an underwritten public offering. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES We adopted authoritative guidance related to the recognition of revenue from contracts with customers effective January 1, 2018 using the modified retrospective method. The 2017 comparative information presented in the consolidated financial statements was not restated and is reported under the accounting standards in effect for the periods presented. Revenues by reportable operating segment and by channel were: Year Ended December 31, 2019 Americas Asia Pacific EMEA Other Businesses Total (in thousands) Channel: Wholesale $ 275,284 $ 207,405 $ 173,480 $ 58 $ 656,227 Retail 241,694 74,793 30,875 — 347,362 E-commerce 123,537 65,874 37,593 — 227,004 Total revenues $ 640,515 $ 348,072 $ 241,948 $ 58 $ 1,230,593 Year Ended December 31, 2018 Americas Asia Pacific EMEA Other Businesses Total (in thousands) Channel: Wholesale $ 216,797 $ 203,110 $ 154,992 $ 3,145 $ 578,044 Retail 204,806 87,264 35,358 — 327,428 E-commerce 98,589 54,224 29,920 — 182,733 Total revenues $ 520,192 $ 344,598 $ 220,270 $ 3,145 $ 1,088,205 Revenues are recognized in the amount expected to be received in exchange when control of the products transfers to customers, and excludes various forms of promotions, which range from contractually-fixed percentage price reductions to sales returns, discounts, rebates, and other incentives that may vary in amount, must be estimated, and are reported as a reduction in revenues. Variable amounts are estimated based on an analysis of historical experience and adjusted as better estimates become available. During the year ended December 31, 2019, we recognized a net increase of $0.4 million to wholesale revenues and a decrease of $0.1 million to e-commerce revenues due to changes in estimates related to products transferred to customers in prior periods. During the year ended December 31, 2018, we recognized a net increase of $0.8 million to wholesale revenues and no change to e-commerce revenues due to changes in estimates related to products transferred to customers in prior periods. There were no changes to estimates in retail channels during the years ended December 31, 2019 and 2018. We elected to exclude from revenues taxes assessed by governmental authorities, including value-added and other sales-related taxes, that are imposed on and concurrent with revenue-producing activities, and as a result there is no change in presentation from prior comparative periods. We also elected to expense incremental costs to obtain customer contracts, consisting primarily of commission incentives, when incurred because the related amortization period is short-term. These costs are reported within ‘Selling, general and administrative expenses’ in our consolidated statement of operations. The following is a description of our principal revenue-generating activities by distribution channel. We have three reportable operating segments and sell our products using three primary distribution channels. For more detailed information about reportable operating segments, see Note 16 — Operating Segments and Geographic Information. Wholesale Channel For the majority of wholesale customers, control transfers and revenues are recognized when the product is shipped or delivered from a manufacturing facility or distribution center to the wholesale customer. In certain cases, control of the product transfers and revenues are recognized when the customer receives the product at the designated delivery point. For certain customers, primarily in the Asia Pacific region, cash payment from customers is required in advance of delivery and revenues are recognized upon the later of cash receipt or delivery of the product. For a small number of customers in the Asia Pacific region, products are sold on consignment and revenues are recognized on a sell-through basis. Wholesale customers are invoiced when products are shipped or delivered. We have arrangements that grant certain wholesale customers exclusive licenses, concurrent with the terms of the related distribution agreements, to use our intellectual property in exchange for a sales-based royalty. Sales-based royalty revenues are recognized over the terms of the related license agreements as sales are made by the wholesalers. Retail Channel We transfer control of products and recognize revenues at Company-operated retail stores at the point of sale, in exchange for cash or other payment, primarily debit or credit card. A portion of the transaction price charged to our customers is variable, primarily due to promotional discounts or allowances, and terms that permit retail customers to exchange or return products for a full refund within a limited period of time. When recognizing revenues, the amount of revenues associated with expected sales returns is estimated based on historical experience, and adjustments to our estimates are made when the most likely amount of consideration we expect to receive changes. E-commerce Channel In the e-commerce channel, we transfer control and recognize revenues when the product is shipped from the distribution centers. Payment from customers is primarily through debit and credit card and is made at the time the customer order is shipped. Similar to the retail channel, a portion of the amount of revenue is variable, primarily due to sales returns, discounts, and other promotional allowances offered to our customers. When recognizing revenues, the amount of revenues associated with expected sales returns is estimated based on historical experience, and adjustments are made when the most likely amount of consideration changes. Contract Liabilities Contract liabilities consist of advance cash deposits received from wholesale customers to secure product orders in connection with selling seasons, and payments received in advance of delivery. As products are shipped and control transfers, we recognize the deferred revenue in ‘Revenues’ in the consolidated statements of operations. At December 31, 2019 and 2018, $1.2 million and $1.6 million, respectively, of deferred revenues associated with advance customer deposits were reported in ‘Accrued expenses and other liabilities’ in the consolidated balance sheets. Deferred revenues of $2.0 million, including the balance recorded at December 31, 2018 of $1.6 million, were recognized in revenues during the year ended December 31, 2019. The deferred revenues at December 31, 2019 are expected to be recognized in revenues during the first quarter of 2020 as products are shipped or delivered. Refund Liabilities Refund liabilities, primarily associated with product sales returns, retrospective volume rebates, and early payment discounts are estimated based on an analysis of historical experience, and adjustments to revenues made when the most likely amount of consideration expected changes. At December 31, 2019 and 2018, $7.1 million and $6.4 million, respectively, of refund liabilities, primarily associated with product returns, were reported in ‘Accrued expenses and other liabilities’ in the consolidated balance sheets. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | SHARE-BASED COMPENSATION Our share-based compensation awards are issued under the 2015 Equity Incentive Plan (“2015 Plan”) and predecessor plan, the 2007 Equity Incentive Plan (“2007 Plan”). Any awards that expire or are forfeited under the 2007 Plan become available for issuance under the 2015 Plan. We account for forfeitures as they occur when calculating share-based compensation expense. The aforementioned plans provide for the issuance of previously unissued common stock in connection with the exercise of stock options and conversion of other share-based awards. As of December 31, 2019, 2.4 million shares of common stock remained available for future issuance under all plans, subject to adjustment for future stock splits, stock dividends, and similar changes in capitalization. Share-Based Compensation Expense Pre-tax share-based compensation expense reported in the consolidated statements of operations was: Year Ended December 31, 2019 2018 2017 (in thousands) Cost of sales $ 580 $ 362 $ 379 Selling, general and administrative expenses 13,832 12,743 9,394 Total share-based compensation expense $ 14,412 $ 13,105 $ 9,773 Stock Option Activity Stock option activity during the year ended December 31, 2019 was: Number of Options Weighted Average Exercise Price Weighted Average Contractual Life (Years) Aggregate Intrinsic Value (in thousands, except exercise price and years) Outstanding as of December 31, 2018 362 $ 11.05 5.68 $ 5,407 Granted — — Exercised (27) 13.25 Forfeited or expired (20) 17.54 Outstanding as of December 31, 2019 315 $ 10.45 5.28 $ 9,904 Exercisable at December 31, 2019 248 $ 11.38 4.71 $ 7,577 Vested and expected to vest at December 31, 2019 315 $ 10.45 5.28 $ 9,904 No stock options were granted during 2019 or 2018. During the year ended December 31, 2017, stock options were valued using a Black Scholes option pricing model using the following assumptions. Year Ended December 31, 2017 Expected volatility 40.7% Dividend yield — Risk-free interest rate 1.76% Expected life (in years) 4.0 The weighted average grant date fair value of stock options granted during the year ended December 31, 2017 was approximately $2.37 per share. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2019, 2018, and 2017 was $0.4 million, $1.7 million, and $0.1 million, respectively. During the years ended December 31, 2019, 2018, and 2017, we received $0.4 million, $1.3 million, and $0.1 million cash in connection with the exercise of stock options. As of December 31, 2019, we had $0.1 million of total unrecognized share-based compensation expense related to unvested options, which is expected to be amortized over the remaining weighted average period of 0.4 years. Stock options under the 2015 Plan and 2007 Plan generally vest ratably over four years with the first vesting occurring one year from the date of grant, followed by monthly vesting for the remaining three years, and expire ten years after the date of grant. Restricted Stock Awards and Restricted Stock Units Activity From time to time, we grant RSAs and RSUs. RSAs and RSUs generally vest over three years, depending on the terms of the grant. Holders of unvested RSAs have the same rights as those of common stockholders including voting rights and non-forfeitable dividend rights. However, ownership of unvested RSAs cannot be transferred until vested. Holders of unvested RSUs have a contractual right to receive a share of common stock upon vesting. RSUs have dividend equivalent rights, which accrue over the term of the award and are paid if and when the RSUs vest, but RSU holders have no voting rights. We grant service-condition RSUs, performance-condition RSUs, and market-condition RSUs. Service-condition RSUs are typically granted on an annual basis and vest over time in three equal annual installments, beginning one year after the grant date. During the years ended December 31, 2019, 2018, and 2017, we granted 0.3 million, 0.4 million, and 1.1 million service-condition RSUs, respectively. Performance-condition RSUs are typically granted on an annual basis and consist of a performance-based and service-based component. The performance targets and vesting conditions for performance-condition RSUs are based on achievement of multiple weighted performance goals. The number of performance-condition RSUs ultimately awarded may be between 0% and 200%, based on performance. These RSUs vest in three equal annual installments beginning one year after the grant date, pending certification of performance achievement by the Compensation Committee and continued service. The fair value of performance-condition awards is based on the closing market price of our common stock on the grant date. Compensation expense, net of forfeitures, is updated for our expected performance level against performance goals at the end of each reporting period. We also periodically grant market-condition RSUs to certain executives. The grant date fair value and derived service period for market-condition RSUs are estimated using a Monte Carlo simulation valuation model. During the years ended December 31, 2019, 2018, and 2017, we granted 0.5 million, 1.0 million, and 1.3 million performance- and market-condition RSUs, respectively. RSA and RSU activity during the year ended December 31, 2019 was: Restricted Stock Awards Restricted Stock Units Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value (in thousands, except fair value data) Unvested at December 31, 2018 6 $ 18.61 2,752 $ 11.58 Granted 12 20.53 817 25.37 Vested (13) 20.00 (997) 9.92 Forfeited — — (645) 11.79 Unvested at December 31, 2019 5 $ 19.39 1,927 $ 17.77 The weighted average grant date fair value of RSAs granted during the years ended December 31, 2019, 2018, and 2017 was $20.53, $18.61, and $6.84 per share. RSAs vested during the years ended December 31, 2019, 2018, and 2017 consisted entirely of service-based awards. The total grant date fair value of RSAs vested was $0.2 million in each of the years ended December 31, 2019, 2018, and 2017. As of December 31, 2019, unrecognized share-based compensation expense for RSAs was $0.1 million, which is expected to amortize over a remaining weighted average period of 0.4 years. The weighted average grant date fair value of RSUs granted during the years ended December 31, 2019, 2018, and 2017 was $25.37, $14.34, and $6.84 per share. RSUs vested during the year ended December 31, 2019 consisted of 0.6 million service-condition awards and 0.4 million performance- and market-condition awards. RSUs vested during the year ended December 31, 2018 consisted of 0.9 million service-condition awards and 0.2 million performance- and market-condition awards. RSUs vested during the year ended December 31, 2017 consisted of 0.7 million service-condition awards and 0.1 million performance- and market-condition awards. The total grant date fair value of RSUs vested during the years ended December 31, 2019, 2018, and 2017 was $9.9 million, $9.7 million and $8.3 million, respectively. As of December 31, 2019, unrecognized share-based compensation expenses for service-condition RSUs were $8.5 million and for performance- and market-condition RSUs were $5.0 million, and are expected to amortize over remaining weighted average periods of 1.3 years and 1.6 years, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES During the year ended December 31, 2017, as a result of the Tax Act, we recorded provisional estimates related to the revaluation of our net deferred tax assets at the lower U.S. corporate income tax rate and the additional tax expense associated with the deemed repatriation tax. During the year ended December 31, 2018, we recorded measurement period adjustments related to the provisional estimates. While we consider our accounting for the Tax Act to be complete, we continue to evaluate new guidance and legislation as it is issued. We have not changed our indefinite reinvestment assertion, and we have elected to account for the impact of global intangible low tax income based on the period cost method. The following table sets forth income before taxes and the expense for income taxes: Year Ended December 31, 2019 2018 2017 (in thousands) Income (loss) before taxes: U.S. $ 58,822 $ 10,088 $ (34,406) Foreign 60,500 55,069 52,586 Total income (loss) before taxes $ 119,322 $ 65,157 $ 18,180 Income tax expense (benefit): Current income taxes: U.S. federal $ 1,284 $ 1,156 $ 1,383 U.S. state 1,427 246 127 Foreign 13,373 12,359 9,525 Total current income taxes 16,084 13,761 11,035 Deferred income taxes: U.S. federal (10,249) 276 1,300 U.S. state (3,579) — — Foreign (2,431) 683 (4,393) Total deferred income taxes (16,259) 959 (3,093) Total income tax expense (benefit) $ (175) $ 14,720 $ 7,942 The following table sets forth income reconciliations of the statutory federal income tax rate to actual rates based on income or loss before income taxes: Year Ended December 31, 2019 2018 2017 (in thousands) Income tax expense and rate attributable to: Federal income tax rate $ 25,058 21.0 % $ 13,683 21.0 % $ 6,363 35.0 % State income tax rate, net of federal benefit 5,983 5.0 % 1,271 2.0 % 53 0.3 % Foreign income tax rate differential 1,994 1.7 % 7,630 11.6 % (11,768) (64.7) % Enacted changes in tax law 634 0.5 % 495 0.8 % 17,645 97.1 % GILTI, net 7,585 6.4 % 3,443 5.3 % — — % Non-deductible / non-taxable items 6,727 5.7 % 3,602 5.5 % 6,006 33.0 % Change in valuation allowance (33,691) (28.2) % (5,304) (8.1) % 24,400 134.2 % U.S. tax on foreign earnings — — % — — % (32,427) (178.4) % Foreign tax credits (12,541) (10.5) % (7,709) (11.9) % (7,980) (43.9) % Uncertain tax positions 278 0.2 % (1,696) (2.6) % 1,054 5.8 % Audit settlements 391 0.3 % 183 0.3 % 354 1.9 % Share-based compensation (2,715) (2.3) % 764 1.2 % 882 4.9 % Deferred income tax account adjustments — — % (25) — % 2,679 14.7 % Other 122 0.1 % (1,617) (2.5) % 681 3.8 % Effective income tax expense and rate $ (175) (0.1) % $ 14,720 22.6 % $ 7,942 43.7 % Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table sets forth deferred income tax assets and liabilities as of the date shown: December 31, 2019 2018 (in thousands) Non-current deferred tax assets: Share-based compensation expense $ 2,218 $ 2,051 Accruals, reserves, and other expenses 13,726 18,734 Net operating loss 29,997 37,727 Intangible assets 990 1,363 Foreign tax credit 64,355 66,321 Operating lease liabilities (1) 36,996 — Other 4,467 3,611 Valuation allowance (79,023) (113,237) Total non-current deferred tax assets $ 73,726 $ 16,570 Non-current deferred tax liabilities: Unrealized gain on foreign currency $ (529) $ (164) Property and equipment (13,713) (7,332) Right-of-use assets (1) (34,470) — Other (267) (411) Total non-current deferred tax liabilities $ (48,979) $ (7,907) (1) Adoption of new lease accounting guidance as of January 1, 2019, as described in Note 2 — Recent Accounting Pronouncements, resulted in the recognition of a right-of-use asset deferred tax liability and an operating lease liability deferred tax asset. These temporary differences will reverse over the life of the leases. During 2019, valuation allowances recorded against deferred tax assets decreased by $34.2 million. The change in the valuation allowance includes $33.7 million related to income tax expense and $0.5 million, which does not impact the tax provision because this amount reflects the cumulative impact of unrecorded tax attributes related to changes in cumulative translation adjustment. During 2018, valuation allowances decreased by $6.3 million. The change in the valuation allowance includes $5.3 million related to income tax expense and $1.0 million which does not impact the tax provision because this amount reflects the impact of unrecorded tax attributes related to changes in cumulative translation adjustment. Our valuation allowances are primarily the result of uncertainties regarding the future realization of tax attributes recorded in various jurisdictions. The measurement of deferred tax assets is reduced by a valuation allowance if, based upon available evidence, it is more likely than not the deferred tax assets will not be realized. We have evaluated the realizability of our deferred tax assets in each jurisdiction by assessing the adequacy of expected taxable income, including the reversal of existing temporary differences, historical and projected operating results and the availability of prudent and feasible tax planning strategies. In assessing our valuation allowance we considered all available evidence, including the magnitude of recent and current operating results, the duration of statutory carryforward periods, our historical experience utilizing tax attributes prior to their expiration dates, the historical volatility of operating results of these jurisdictions and our assessment regarding the sustainability of their profitability. The weight we give to any particular item is, in part, dependent upon the degree to which it can be objectively verified. As of December 31, 2019, certain jurisdictions, for which we have historically recorded significant valuation allowances, have sufficient history of sustained profitability. As a result, valuation allowances recorded against deferred tax assets decreased by $34.2 million. In certain other jurisdictions, we recorded additional attributes, primarily driven by operational losses recognized based on local tax accounting requirements. These carryforwards were generated in jurisdictions where results indicate it is not more likely than not the deferred tax assets would be realized. We maintain a valuation allowance against the majority of these deferred tax assets. We have recorded deferred tax assets related to U.S. federal tax carryforwards, including foreign tax credits and other tax credits, which expire at various dates between 2024 and 2039 of $39.7 million and $46.6 million as of December 31, 2019 and 2018, respectively. We recorded deferred tax assets related to U.S. state tax net operating loss carryforwards which expire at various dates between 2020 and those which do not expire of $6.7 million and $11.1 million at December 31, 2019 and 2018, respectively. We recorded deferred tax assets related to foreign tax carryforwards, including foreign tax credits and net operating losses, which expire starting in 2020 and those which do not expire of $48.0 million and $47.7 million as of December 31, 2019 and 2018, respectively. The valuation allowance maintained against our U.S. deferred tax assets as of December 31, 2019 primarily relates to foreign tax credits and state net operating losses carryforwards that have a limited carryforward period and are not anticipated to be utilized prior to expiration. We also maintain a valuation allowance against a portion of the foreign carryforwards. The transition tax in the Tax Act imposed a tax on undistributed and previously untaxed foreign earnings at various tax rates. This tax largely eliminated the differences between the financial reporting and income tax basis of foreign undistributed earnings. Furthermore, as of December 31, 2019, foreign withholding taxes have not been provided on unremitted earnings of subsidiaries operating outside of the U.S. as these amounts are considered to be indefinitely reinvested. The following table sets forth a reconciliation of the beginning and ending amount of unrecognized tax benefits: Year Ended December 31, 2019 2018 2017 (in thousands) Unrecognized tax benefit as of January 1 $ 4,511 $ 6,204 $ 4,750 Additions in tax positions taken in prior period 631 250 683 Reductions in tax positions taken in prior period (1,532) (690) — Additions in tax positions taken in current period 1,786 461 966 Settlements (391) (621) (123) Lapse of statute of limitations (368) (1,045) (414) Cumulative foreign currency translation adjustment (24) (48) 342 Unrecognized tax benefit as of December 31 $ 4,613 $ 4,511 $ 6,204 We recorded a net expense of $0.3 million related to increases in 2019 unrecognized tax benefits combined with amounts effectively settled under audit. Unrecognized tax benefits as of December 31, 2019 relate to tax years that are currently open under the statute of limitation. The primary impact of uncertain tax benefits on the rate reconciliation includes audit settlements, net increases in position changes, and accrued interest expense. Interest and penalties related to income tax liabilities are included in ‘Income tax expense (benefit)’ in the consolidated statements of operations. For the years ended December 31, 2019, 2018, and 2017, we recorded approximately $0.4 million, $0.2 million, and $0.2 million, respectively, of penalties and interest. During the year ended December 31, 2019, we released $0.2 million of interest from settlements, lapse of statutes, and change in certainty. The cumulative accrued balance of penalties and interest was $0.7 million, $0.6 million, and $0.7 million, as of December 31, 2019, 2018, and 2017, respectively. Unrecognized tax benefits of $4.0 million, $4.5 million and $6.2 million as of December 31, 2019, 2018, and 2017, respectively, if recognized, would reduce the annual effective tax rate offset by deferred tax assets recorded for uncertain tax positions. The following table sets forth the tax years subject to examination for the major jurisdictions where we conduct business as of December 31, 2019: The Netherlands 2005 to 2019 Canada 2011 to 2019 Japan 2012 to 2019 China 2009 to 2019 Singapore 2014 to 2019 United States 2010 to 2019 We are currently under audit in Japan and Taiwan. U.S. state tax returns are generally subject to examination for a period of three to five years after filing of the respective return. The state impact of any federal changes remains subject to examination by various state jurisdictions for a period up to two years after formal notification to the states. As such, U.S. state income tax returns for us are generally subject to examination for the years 2014 to 2019. Although the timing of income tax audit |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic and diluted EPS for the years ended December 31, 2019, 2018, and 2017 were as follows: Year Ended December 31, 2019 2018 2017 (in thousands, except per share data) Numerator: Net income (loss) attributable to common stockholders (1) $ 119,497 $ (69,216) $ (5,294) Denominator: Weighted average common shares outstanding - basic 70,357 68,421 72,255 Plus: dilutive effect of stock options and unvested restricted stock units 1,414 — — Weighted average common shares outstanding - diluted 71,771 68,421 72,255 Net income (loss) per common share: Basic $ 1.70 $ (1.01) $ (0.07) Diluted $ 1.66 $ (1.01) $ (0.07) (1) Net loss attributable to common stockholders for the year ended December 31, 2018 reflects the repurchase and conversion of Series A Convertible Preferred Stock. For the year ended December 31, 2019, no outstanding shares issued under share-based compensation awards were anti-dilutive and, therefore, excluded from the calculation of diluted EPS. For the years ended December 31, 2018 and 2017, all outstanding shares issued under share-based compensation awards were excluded from the calculation of diluted EPS because the effect was anti-dilutive. Additionally, for the year ended December 31, 2017, all potentially convertible Series A Preferred shares were excluded from the calculation of diluted EPS because the effect was anti-dilutive. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Purchase Commitments As of December 31, 2019 and 2018, we had purchase commitments to our third-party manufacturers, primarily for materials and supplies used in the manufacture of our products, for an aggregate of $155.5 million and $165.3 million, respectively. We expect to fulfill our commitments under these agreements in the normal course of business, and as such, no liability has been recorded. Other We are regularly subject to, and is currently undergoing, audits by various tax authorities in the U.S. and several foreign jurisdictions, including customs duties, import and other taxes for prior tax years. During our normal course of business, we may make certain indemnities, commitments, and guarantees under which it may be required to make payments in relation to certain matters. We cannot determine a range of estimated future payments and has not recorded any liability for such payments in the accompanying consolidated balance sheets. See Note 17 — Legal Proceedings for further details regarding potential loss contingencies related to government tax audits and other current legal proceedings. |
Operating Segments and Geograph
Operating Segments and Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Operating Segments and Geographic Information | OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION We have three reportable operating segments: the Americas, Asia Pacific, and Europe, Middle East, and Africa (“EMEA”). ‘Other businesses’ aggregates insignificant operating segments that do not meet the reportable segment threshold, including corporate operations and, in 2018 and 2017, company-operated manufacturing facilities, which substantially ceased operations in the third quarter of 2018. Each of the reportable operating segments derives its revenues from the sale of footwear and accessories to external customers. Revenues for ‘Other businesses’ include non-footwear and accessories product sales to external customers that are excluded from the measurement of segment operating revenues and income. 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 inter-segment sales. Reconciling items between segment income from operations and income from operations consist of other businesses and unallocated corporate expenses, as well as inter-segment eliminations. We do not report asset information by segment because that information is not used to evaluate performance or allocate resources between segments. The following tables set forth information related to reportable operating segments: Year Ended December 31, 2019 2018 2017 (in thousands) Revenues: Americas $ 640,515 $ 520,192 $ 480,146 Asia Pacific 348,072 344,598 336,073 EMEA 241,948 220,270 206,424 Segment revenues 1,230,535 1,085,060 1,022,643 Other businesses 58 3,145 870 Total consolidated revenues $ 1,230,593 $ 1,088,205 $ 1,023,513 Income from operations: Americas $ 204,868 $ 138,940 $ 96,740 Asia Pacific 80,645 82,780 72,950 EMEA 70,326 59,539 37,185 Segment income from operations 355,839 281,259 206,875 Reconciliation of segment income from operations to income before income taxes: Other businesses (54,936) (55,583) (22,861) Unallocated corporate (1) (172,254) (162,732) (166,678) Total consolidated income from operations 128,649 62,944 17,336 Foreign currency gains (losses), net (1,323) 1,318 563 Interest income 601 1,281 870 Interest expense (8,636) (955) (869) Other income 31 569 280 Income before income taxes $ 119,322 $ 65,157 $ 18,180 Depreciation and amortization: Americas $ 3,593 $ 4,640 $ 5,473 Asia Pacific 963 2,049 3,405 EMEA 793 1,252 1,937 Total segment depreciation and amortization 5,349 7,941 10,815 Other businesses 5,234 5,256 6,748 Unallocated corporate 13,630 16,053 15,567 Total consolidated depreciation and amortization $ 24,213 $ 29,250 $ 33,130 (1) Includes corporate support and administrative functions, costs associated with share-based compensation, research and development, marketing, legal, depreciation and amortization of corporate and other assets not allocated to operating segments, and intersegment eliminations. There were no customers who represented 10% or more of consolidated revenues during the years ended December 31, 2019, 2018 and 2017. The following table sets forth certain geographical information regarding Crocs’ revenues for the periods as shown: Year Ended December 31, 2019 2018 2017 (in thousands) Location: United States $ 563,473 $ 442,544 $ 388,847 International 667,120 645,661 634,666 Total revenues $ 1,230,593 $ 1,088,205 $ 1,023,513 The following table sets forth geographical information regarding property and equipment assets as of the dates shown: December 31, 2019 2018 (in thousands) Location: United States $ 41,745 $ 17,489 International 5,660 4,722 Total property and equipment, net $ 47,405 $ 22,211 |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | LEGAL PROCEEDINGS We were subjected to an audit by the Brazilian Federal Tax Authorities related to imports of footwear from China between 2010 and 2014. On January 13, 2015, we were notified about the issuance of assessments totaling 14.4 million Brazilian Real (“BRL”), or approximately $3.6 million, plus interest and penalties, for the period January 2010 through May 2011. We have disputed these assessments and asserted defenses to the claims. On February 25, 2015, we received additional assessments totaling 33.3 million BRL, or approximately $8.3 million, plus interest and penalties, related to the remainder of the audit period. We also disputed these assessments and asserted defenses to these claims in administrative appeals. On August 29, 2017, we received a favorable ruling on our appeal of the first assessment, which dismissed all fines, penalties, and interest. The tax authorities have appealed that decision and we have challenged the appeal on both the merits and procedure. Additionally, the second appeal for the remaining assessments was heard on March 22, 2018. That decision was partially favorable for Crocs and resulted in an approximately 38% reduction in principal, penalties, and interest, leaving approximately $5.1 million, plus interest and penalties, at risk for those assessments. The tax authorities have appealed that decision and Crocs has filed a response to the tax authorities’ appeal as well as a separate appeal against the unfavorable portion of the ruling. Should the Brazilian Tax Authority prevail in this final administrative appeal, we may still challenge the assessments through the court system, which would likely require the posting of a bond. We have not recorded these items within the consolidated financial statements as it is not possible at this time to predict the timing or outcome of this matter or to estimate a potential amount of loss, if any. For all other claims and disputes, we have accrued estimated losses of $0.2 million within ‘Accrued expenses and other liabilities’ in our consolidated balance sheet as of December 31, 2019. As we are able, we estimate reasonably possible losses or a range of reasonably possible losses for claims and other disputes. As of December 31, 2019, reasonably possible losses could potentially exceed amounts accrued by up to $1.4 million. 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, other than as set forth above, we are not party to any other pending legal proceedings that it believes would reasonably have a material adverse impact on our business, financial results, and cash flows. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | EMPLOYEE BENEFIT PLAN Defined Contribution Plan We sponsor a qualified defined contribution benefit plan (the “Plan”), covering substantially all of our U.S. employees. The Plan includes a savings plan feature under Section 401(k) of the Internal Revenue Code. We make matching contributions to the plans equal to 100% of the first 3%, and up to 50% of the next 2% of salary contributed by an eligible employee. Participants |
Unaudited Quarterly Consolidate
Unaudited Quarterly Consolidated Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Consolidated Financial Information | UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL INFORMATION For the Quarter Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 (in thousands, except per share data) Revenues (1) $ 295,949 $ 358,899 $ 312,766 $ 262,979 Gross profit 137,615 189,379 163,824 126,238 Income from operations 32,578 47,831 39,884 8,356 Net income (2) 24,710 39,198 35,676 19,913 Net income attributable to common shareholders (2) 24,710 39,198 35,676 19,913 Basic income per common share (3) $ 0.34 $ 0.55 $ 0.52 $ 0.29 Diluted income per common share (3) $ 0.33 $ 0.55 $ 0.51 $ 0.29 (1) Due to the seasonal nature of our products, we experience decreased revenues in the fourth quarter of the year relative to the other quarters. (2) During the three months ended December 31, 2019, we reduced a portion of the valuation allowance recorded against certain deferred tax assets, resulting in a tax benefit. See Note 13 — Income Taxes for more information. (3) Basic and diluted income per common share are computed independently for each of the quarters presented. Therefore, the sum of the quarters may not equal the annual amounts presented in the consolidated statements of operations. For the Quarter Ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 (in thousands, except per share data) Revenues (1) $ 283,148 $ 328,004 $ 261,064 $ 215,989 Gross profit 139,873 181,400 139,059 99,822 Income (loss) from operations 25,922 37,064 13,895 (13,937) Net income (loss) 16,454 34,377 10,492 (10,886) Net income (loss) attributable to common shareholders (2) 12,523 30,426 6,520 (118,685) Basic income (loss) per common share $ 0.15 $ 0.37 $ 0.08 $ (1.72) Diluted income (loss) per common share $ 0.15 $ 0.35 $ 0.07 $ (1.72) (1) Due to the seasonal nature of our products, we experience decreased revenues in the fourth quarter of the year relative to the other quarters. (2) The balance in ‘Net income (loss) attributable to common shareholders’ for the three months ended December 31, 2018 was impacted by the repurchase and conversion of Series A Convertible Preferred Stock. See Note 10 — Equity and the consolidated statement of operations for more information. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS CROCS, INC. AND SUBSIDIARIES Balance at Beginning of Period Charged to Costs and Expenses Deductions (1) Balance at End of Period (in thousands) Year Ended December 31, 2019 Allowance for doubtful accounts $ 10,959 $ 1,566 $ (4,249) $ 8,276 Reserve for sales returns and allowances 2,741 73,027 (70,507) 5,261 Reserve for unapplied rebates 6,777 6,837 (8,354) 5,260 Total $ 20,477 $ 81,430 $ (83,110) $ 18,797 Year Ended December 31, 2018 Allowance for doubtful accounts $ 18,325 $ 711 $ (8,077) $ 10,959 Reserve for sales returns and allowances 4,983 71,865 (74,107) 2,741 Reserve for unapplied rebates 8,081 8,604 (9,908) 6,777 Total $ 31,389 $ 81,180 $ (92,092) $ 20,477 Year Ended December 31, 2017 Allowance for doubtful accounts $ 32,856 $ 1,235 $ (15,766) $ 18,325 Reserve for sales returns and allowances 6,121 65,562 (66,700) 4,983 Reserve for unapplied rebates 9,161 9,318 (10,398) 8,081 Total $ 48,138 $ 76,115 $ (92,864) $ 31,389 (1) Deductions include accounts written off, net of recoveries, and the effects of foreign currency translation. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries, and reflect all adjustments which are necessary for a fair statement of financial position, results of operations, and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Basis of Consolidation | All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates Our consolidated financial statements are prepared in accordance with U.S. GAAP. These accounting principles require us to make certain estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions used to determine certain amounts that affect the financial statements are reasonable, based on information available at the time they are made. Management believes that the estimates, judgments, and assumptions made when accounting for items and matters such as, but not limited to, the allowance for doubtful accounts, customer rebates, sales returns, impairment assessments and charges, recoverability of long-lived assets, deferred tax assets, uncertain tax positions, income tax expense, share-based compensation expense, the assessment of lower of cost or net realizable value on inventory, useful lives assigned to long-lived assets, and depreciation and amortization. Additionally, we are periodically exposed to various contingencies in the ordinary course of conducting our business, including certain litigation, contractual disputes, employee relations matters, various tax or other governmental audits, and trademark and intellectual property matters and disputes. We record a liability for such contingencies to the extent that we conclude their occurrence is probable and the related losses are estimable. If it is reasonably possible that an unfavorable settlement of a contingency could exceed the established liability, we disclose the estimated impact on our liquidity, financial condition, and results of operations, if practicable. As the ultimate resolution of contingencies is inherently unpredictable, these assessments can involve a series of complex judgments about future events including, but not limited to, court rulings, negotiations between affected parties, and governmental actions. As a result, the accounting for loss contingencies relies heavily on management’s judgment in developing the related estimates and assumptions. See Note 17 — Legal Proceedings for additional information regarding our contingencies and legal proceedings. To the extent there are differences between these estimates and actual results, our consolidated financial statements may be materially affected. |
Reclassifications | Reclassifications We have reclassified certain amounts in Note 13 — Income Taxes to conform to current period presentation. |
Revenue Recognition, Shipping and Handling Costs and Fees and Cost of Sales | Revenue Recognition See Note 11 — Revenues for a summary of our revenue recognition policy. Shipping and Handling Costs and Fees Shipping and handling costs are expensed as incurred and are included in ‘Cost of sales’ in the consolidated statements of operations. Shipping and handling fees billed to customers are included in revenues. Cost of Sales Our cost of sales includes costs incurred to design, produce, procure, and ship our footwear. These costs include our raw materials, both direct and indirect labor, shipping and handling including freight costs, utilities, maintenance costs, depreciation, packaging, and other manufacturing overhead and costs. |
Taxes Assessed by Governmental Authorities | Taxes Assessed by Governmental Authorities Taxes assessed by governmental authorities that are directly imposed on a revenue transaction, including value added tax, are recorded on a net basis and are therefore excluded from revenues. |
Research, Design and Development Expenses | Research, Design, and Development Expenses We continue to dedicate significant resources to product design and development based on opportunities we identify in the marketplace. We incurred expenses of $11.8 million, $14.1 million, and $13.4 million in research, design, and development activities for the years ended December 31, 2019, 2018, and 2017, respectively, which are expensed as incurred and are reported in ‘Selling, general and administrative expenses’ in the consolidated statements of operations. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Our selling, general and administrative expenses include media advertising (television, radio, print, social, digital), tactical advertising (signs, banners, point-of-sale materials) and promotional costs. Advertising production costs are expensed when the advertising is first run. Advertising communication costs are expensed in the periods that the communications occur. Certain of our promotional expenses result from payments under endorsement contracts. Expenses under endorsement contracts are recognized as performance is received over the term of each endorsement agreement. Total marketing expenses, inclusive of advertising, production, promotion, and agency expenses, including variable marketing expenses, were $83.2 million, $68.6 million, and $59.1 million for the years ended December 31, 2019, 2018, and 2017, respectively. Prepaid advertising and promotional endorsement expenses of $11.6 million and $7.5 million, were included in ‘Prepaid expenses and other assets’ in the consolidated balance sheets at December 31, 2019 and 2018, respectively. Selling, general and administrative expenses consist primarily of labor and outside services, rent expense, bad debt expense, legal costs, amortization of intangible assets, as well as certain depreciation costs related to corporate and non-product assets and share-based compensation. Selling, general and administrative expenses also include costs for our marketing and sales organizations, and other functions including finance, legal, human resources, and information technology. |
Other Income, Net | Other Income, NetOther income, net primarily includes gains and losses associated with activities not directly related to making and selling footwear, as well as certain gains or losses on sales of non-operating assets. |
Foreign Currency Gains (Losses), Net | Foreign Currency Gains (Losses), Net Foreign currency gains (losses), net includes realized and unrealized foreign exchange gains and losses resulting from remeasurement and settlement of foreign-currency transactions denominated in a currency other than the functional currency of |
Other Comprehensive Income | Other Comprehensive Income Our foreign subsidiaries use their foreign currency as their functional currency. Functional currency assets and liabilities are translated into U.S. Dollars using exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates during the period. Resulting translation gains and losses are reported in other comprehensive income (loss), until the substantial disposition of a subsidiary, at which time accumulated translation gains or losses are reclassified into net income. |
Income Taxes | Income TaxesIncome taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of other assets and liabilities. We provide for income taxes at the current and future enacted tax rates and laws applicable in each taxing jurisdiction. We account for the tax effects of global intangible low-taxed income (“GILTI”) as a component of income tax expense in the period the tax arises, to the extent applicable. We use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. We recognize interest and penalties related to income tax matters in income tax expense in the consolidated statement of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent cash and short-term, highly-liquid investments with maturities of three months or less at the date of purchase. We report receivables from credit card companies, if expected to be received within five days, in cash and cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash primarily consists of funds to secure certain retail store leases, certain customs requirements, and other contractual arrangements. |
Accounts Receivable, net | Accounts Receivable, NetAccounts receivable are recorded at invoiced amounts, net of reserves and allowances. We reduce the carrying value for estimated uncollectible accounts based on a variety of factors including the length of time receivables are past due, economic trends and conditions affecting our customer base, and historical collection experience. Specific provisions are recorded for individual receivables when we become aware of a customer’s inability to meet its financial obligations. We write off accounts receivable to the reserves when they are deemed uncollectible or, in certain jurisdictions, when legally able to do so. |
Inventories | Inventories Inventories are comprised of finished goods and are stated at the lower of cost or net realizable value. Effective January 1, 2018, we completed implementation of a new inventory costing system for approximately 95% of our inventories. In connection with the implementation, we changed our method of inventory costing from a moving average cost method to a first-in-first-out method. We believe this change in accounting principle is preferable because it results in more precision and consistency in global and regional inventory costs, more efficient analysis, and better matching of inventory costs with revenues, it better matches the physical flow of inventories, and it improves comparability with industry peers. The change from our former inventory cost method did not have a material effect on inventory or cost of sales, and, as a result, prior comparative financial statements have not been restated. We estimate the market value of inventory based on an analysis of historical sales trends of our individual product lines, the impact of market trends and economic conditions, and a forecast of future demand, giving consideration to the value of current orders in-house for future sales of inventory, as well as plans to sell discontinued or end-of-life inventory through our outlet stores, among other off-price channels. Estimates may differ from actual results due to the quantity, quality, and mix of products in inventory, consumer and retailer preferences, and market conditions. If the estimated market value is less than its carrying value, the carrying value is adjusted to the market value and the difference is recorded in ‘Cost of sales’ in our consolidated statements of operations. Reserves for the risk of physical loss of inventory are estimated based on historical experience and are adjusted based upon physical inventory counts, and recorded within ‘Cost of sales’ in our consolidated statements of operations. |
Property and Equipment, Net | Property and Equipment, Net Property, equipment, furniture, and fixtures are stated at original cost, less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful asset lives, which are reviewed periodically and have the following ranges: machinery and equipment: 2 to 10 years; furniture, fixtures, and other: 2 to 10 years. Leasehold improvements are stated at cost and amortized on a straight-line basis over their estimated economic useful lives or the lease term, whichever is shorter. Costs of enhancements or modifications that substantially extend the capacity or useful life of an asset are capitalized and depreciated accordingly. Ordinary repairs and maintenance are expensed as incurred. Depreciation of warehouse- and distribution-related assets is included in cost of sales in our consolidated statements of operations. In 2017 and through the third quarter of 2018, when all manufacturing was transferred to third-party manufacturers, cost of sales also included depreciation related to manufacturing assets. Depreciation related to corporate, non-product, and non-manufacturing assets is included in ‘Selling, general and administrative expenses’ in our consolidated statements of operations. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from our consolidated balance sheets and the resulting gain or loss, if any, is reflected in ‘Income from operations’ in the consolidated statements of operations. |
Goodwill and Other Intangible Assets, Net | Goodwill and Other Intangible Assets, Net We evaluate the carrying value of our goodwill and indefinite-lived intangible assets for impairment at the reporting unit level at least annually or when an interim triggering event has occurred indicating potential impairment. Our annual test is performed as of the last day of our fiscal fourth quarter. We continuously monitor the performance of our definite-lived intangible assets and evaluate for impairment when evidence exists that certain events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Significant judgments and assumptions are required in such impairment evaluations. Definite-lived intangible assets are stated at cost, less accumulated amortization. Amortization is recorded using the straight-line method over the estimated lives of the assets. Direct costs of acquiring or developing internal-use computer software, including costs of employees, are capitalized and classified within intangible assets. Software maintenance and training costs are expensed in the period incurred. Initial costs associated with internally-developed-and-used software are expensed until it is determined that the project has reached the application development stage, after which subsequent additions, modifications, or upgrades are capitalized to the extent that they add functionality. Our capitalized software consists primarily of enterprise resource system software, warehouse management software, and point of sale software. Amortization for software is provided using the straight-line method over the estimated useful asset lives, which are reviewed periodically and range from 2 to 8 years. Amortization of capitalized software used in warehouse- and distribution-related activities is included in ‘Cost of sales’ in the consolidated statements of operations. In 2017 and through the third quarter of 2018, when all manufacturing was transferred to third-party manufacturers, cost of sales also included amortization related to capitalized software used in manufacturing. Amortization related to corporate, non-product, and non-manufacturing assets, such as our global information systems, is included in ‘Selling, general, and administrative expenses’ in the consolidated statements of operations. Amortization for patents, copyrights, and trademarks is provided using the straight-line method over the estimated useful asset lives, which are reviewed periodically and range from 7 to 25 years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets to be held and used are evaluated for impairment when events or circumstances indicate the carrying value of a long-lived asset or asset group is less than the undiscounted cash flows from its use and eventual disposition over its remaining economic life. We assess recoverability by comparing the sum of projected undiscounted cash flows from the use and eventual disposition over the remaining economic life of a long-lived asset or asset group to its carrying value, and record a loss from impairment if the carrying value is more than its undiscounted cash flows. For assets involved in Crocs’ retail business, the asset group is at the retail store level. As retail store performance will vary in new and existing markets due to many factors, including maturity of the market and brand recognition, we periodically evaluate the fixed assets, leasehold improvements, and right-of-use assets related to our retail locations for impairment. Assets or asset groups to be abandoned or from which no future benefit is expected are written down to zero in the period it is determined they will no longer be used and |
Share-Based Compensation | Share-Based Compensation Stock Options Stock options are granted with exercise prices equal to the fair market value of our common stock on the date of grant. We use the Black-Scholes option-pricing model to estimate the grant date fair value of stock options, which requires the use of assumptions, including the expected term of the option, expected volatility of our stock price, our expected dividend yield, and the risk-free interest rate, among others. These assumptions reflect our best estimates, however; they involve inherent uncertainties including market conditions and employee behavior that are generally outside of our control. We expense all share-based compensation awarded based on the grant date fair value of the awards using the straight-line method over the requisite service period, adjusted for forfeitures as they occur. Restricted Stock Awards (“RSAs”) and Restricted Stock Units (“RSUs”) We grant RSAs, service-condition RSUs, performance-condition RSUs, and market-condition RSUs. The grant date fair values of RSAs, service-condition RSUs, and performance-condition RSUs are based on the closing market price of our common stock on the grant date; the grant date fair value and derived service period of market-condition RSUs is estimated using a Monte Carlo simulation valuation model. Our service-condition RSUs vest based on continued service; our performance-condition RSUs vest based on achievement of multiple weighted performance goals, certification of performance achievement by the Compensation Committee of the Board of Directors, and continued service; our market-condition RSUs vest based on the market price of our stock. Compensation expense, net of forfeitures, is recognized on a straight-line basis over the requisite service period. For performance-condition RSUs, compensation expense is updated for our expected performance level against performance goals at the end of each reporting period, which involves judgment as to achievement of certain performance metrics. |
Earnings per Share | Earnings per ShareBasic and diluted earnings per common share (“EPS”) is presented using the treasury stock method. Diluted EPS reflects the potential dilution to common shareholders from securities that could share in our earnings and is calculated by adjusting weighted average outstanding shares, assuming conversion of all potentially dilutive stock options and awards. Anti-dilutive securities are excluded from diluted EPS. |
Derivative Foreign Currency Contracts | Derivative Foreign Currency ContractsWe enter into forward foreign currency exchange contracts to mitigate the potential impact of foreign currency exchange rate risk. By policy, we do not enter into these contracts for trading purposes or speculation. The fair value of these contracts is reported either as an asset or liability in our consolidated balance sheets. Changes in the fair value of these contracts are recorded in ‘Foreign currency gains (losses), net’ in our consolidated statements of operations. We did not designate any derivative instruments for hedge accounting during any of the periods presented.Our derivative instruments are recorded at fair value as a derivative asset or liability in the consolidated balance sheets. We report derivative instruments with the same counterparty on a net basis when a master netting arrangement is in place. Changes in fair value are recognized within ‘Foreign currency gains (losses), net’ in the consolidated statements of operations. For the consolidated statements of cash flows, we classify cash flows from derivative instruments at settlement in the same category as the cash flows from the related hedged items within ‘Cash provided by operating activities. |
Fair Value | Fair Value U.S. GAAP for fair value establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). We utilize a combination of market and income approaches to value derivative instruments. Our financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels of the hierarchy and the related inputs are as follows: Level Inputs 1 Unadjusted quoted prices in active markets for identical assets and liabilities. 2 Unadjusted quoted prices in active markets for similar assets and liabilities; Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or Inputs other than quoted prices that are observable for the asset or liability. 3 Unobservable inputs for the asset or liability. We categorize fair value measurements within the fair value hierarchy based upon the lowest level of the most significant inputs used to determine fair value. |
Recent Accounting Pronouncements | New Accounting Pronouncement Adopted Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance that permits reclassification of the income tax effects of the U.S. Tax Cuts and Job Act (“Tax Act”) on accumulated other comprehensive income (“AOCI”) to retained earnings. This guidance may be adopted retrospectively to each period (or periods) in which the income tax effects of the Tax Act related to items remaining in AOCI are recognized, or at the beginning of the period of adoption. The guidance became effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. This guidance became effective during the first quarter of 2019; however, we did not elect to make the optional reclassification. Our policy is to release stranded tax effects from AOCI using either a specific identification approach or portfolio approach based on the nature of the underlying item. Leases In February 2016, the FASB issued authoritative guidance related to accounting for leases. On January 1, 2019, we adopted the guidance using the modified retrospective method applied as of the date of adoption. The comparative information presented in the consolidated financial statements was not restated and is reported under the accounting standards in effect for the periods presented. We have elected all of the available transition practical expedients, including the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We have elected not to apply ‘hindsight’ when adopting the standard for determining the reasonably certain lease term and in assessing impairments. We have elected the short-term lease exemption, which means we have not and will not recognize a right-of-use asset or liability for leases that qualify for the short-term exemption and will recognize those lease expenses on a straight-line basis over the lease term in our consolidated statements of operations. Further, we have elected to combine lease and non-lease components for all of our leases. Adoption of the new standard resulted in the recognition of right-of-use assets and liabilities of approximately $176.1 million and $187.4 million, respectively, as of January 1, 2019, with additional adjustments to ‘Prepaid expenses and other assets’, ‘Accrued expenses and other liabilities’, and ‘Retained earnings’. As a result of the adoption of new lease accounting standards, we assessed the initial right-of-use assets for impairment and recorded non-cash impairments of $0.2 million within ‘Retained earnings’ in our consolidated balance sheet. The adoption of this guidance did not have a significant impact on the consolidated statements of operations or cash flows. New Accounting Pronouncements Not Yet Adopted Measurement of Credit Losses In June 2016, and through subsequent amendments, the FASB issued guidance that requires the measurement and recognition of expected credit losses for financial assets. This new model replaces the existing “current incurred loss” model with a forward-looking “current expected credit loss” model. This guidance becomes effective for annual reporting periods beginning after December 15, 2019, including interim periods within those periods. At this time, based on the nature of our financial instruments included within the scope of this standard, which are primarily trade and other receivables, and our initial analyses, we do not expect this standard to have a material impact on our consolidated financial statements. Implementation Costs Incurred in Cloud Computing Arrangements In August 2018, the FASB issued authoritative guidance related to the treatment of implementation costs incurred in a hosting arrangement that is considered a service contract. This guidance becomes effective for annual reporting periods beginning after December 15, 2019, including interim periods within those periods, with early adoption permitted, and will be applied prospectively to all implementation costs incurred after the date of adoption. Upon adoption, we do not expect this standard to have a material impact on our consolidated financial statements. Simplifying Accounting for Income Taxes In December 2019, the FASB issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The standard will be effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those periods. We are currently evaluating the impact of adopting this new accounting guidance on our consolidated financial statements. Other Pronouncements Other new pronouncements issued but not effective until after December 31, 2019 are not expected to have a material impact on our consolidated financial statements. |
Leases | Our lease portfolio consists primarily of real estate assets, which includes retail, warehouse, distribution center, and office spaces, under operating leases expiring at various dates through 2033. Leases with an original term of twelve months or less are not reported in the consolidated balance sheet; expense for these short-term leases is recognized on a straight-line basis over the lease term. Many leases include one or more options to renew, with renewal terms that, if exercised by us, may extend the lease term. The exercise of these renewal options is at our discretion. When assessing the likelihood of a renewal or termination, we consider the significance of leasehold improvements, availability of alternative locations, and the cost of relocation or replacement, among other considerations. The depreciable lives of leasehold improvements are the shorter of the useful lives of the improvements or the expected lease term. We determine the lease term for each lease based on the terms of each contract and factor in renewal and early termination options if such options are reasonably certain to be exercised. Due to our centralized treasury function, we utilize a portfolio approach to discount our lease obligations. We assess the expected lease term at lease inception, and discount the lease using a fully-secured annual incremental borrowing rate, adjusted for time value corresponding with the expected lease term. Certain of our retail store leases include rental payments based upon a percentage of retail sales in excess of a minimum fixed rental. In some cases, there is no fixed minimum rental and the entire rental payment is based upon a percentage of sales. Certain of our warehouse leases have rental payments that vary based upon the volume of product placed in storage. In addition, certain leases include rental payments adjusted periodically for changes in price level indexes. We recognize expense for these types of payments as incurred and report them as variable lease expense. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fair Value Measurements, Valuation Techniques | The three levels of the hierarchy and the related inputs are as follows: Level Inputs 1 Unadjusted quoted prices in active markets for identical assets and liabilities. 2 Unadjusted quoted prices in active markets for similar assets and liabilities; Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or Inputs other than quoted prices that are observable for the asset or liability. 3 Unobservable inputs for the asset or liability. |
Supplemental Schedule of Non-Cash Investing and Financing Activities | Consolidated Statements of Cash Flows - Supplemental Schedule of Non-Cash Investing and Financing Activities Year Ended December 31, 2019 2018 2017 (in thousands) Accrued purchases of property, equipment, and software $ 15,206 $ 1,141 $ 2,195 Series A preferred stock conversion — 100,000 — Series A preferred stock accretion, net (1) — 17,567 3,532 Vendor financed insurance premiums — — 1,450 (1) Represents total accretion of $17.6 million, net of $6.1 million acquired value of beneficial conversion feature attributable to repurchased Series A Convertible Preferred Stock for the year ended December 31, 2018. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment and Depreciation Expense | Property and equipment, net’ consists of the following: December 31, 2019 2018 (in thousands) Leasehold improvements $ 64,540 $ 63,702 Machinery and equipment 39,011 20,054 Furniture, fixtures, and other 19,761 16,779 Construction-in-progress 3,697 2,632 Property and equipment 127,009 103,167 Less: Accumulated depreciation and amortization (79,604) (80,956) Property and equipment, net $ 47,405 $ 22,211 Depreciation and amortization expense related to property and equipment, reported in ‘Cost of sales’ and ‘Selling, general and administrative expenses’ was: Year Ended December 31, 2019 2018 2017 (in thousands) Cost of sales $ 1,711 $ 1,422 $ 2,278 Selling, general and administrative expenses 7,174 11,180 12,723 Total depreciation and amortization expense $ 8,885 $ 12,602 $ 15,001 |
Schedule of Long-lived Asset Impairments | Impairments for retail stores by reportable operating segment, were: Year Ended December 31, 2018 2017 Asset Impairment Number of Asset Impairment Number of (in thousands, except store count data) Americas $ 138 1 $ 455 3 Asia Pacific 760 12 — — EMEA — — 75 1 Total $ 898 13 $ 530 4 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | All of our goodwill is in the EMEA segment. The changes in goodwill for the years ended December 31, 2019 and 2018 were: Goodwill (in thousands) Balance at December 31, 2017 $ 1,688 Foreign currency translation (74) Balance at December 31, 2018 1,614 Foreign currency translation (36) Balance at December 31, 2019 $ 1,578 |
Schedule of Intangible Assets, net | ‘Intangible assets, net’ reported in the consolidated balance sheets consist of the following: December 31, 2019 December 31, 2018 Gross Accum. Amortiz. Net Gross Accum. Amortiz. Net (in thousands) Intangible assets subject to amortization: Capitalized software $ 120,620 $ (78,387) $ 42,233 $ 138,857 $ (97,900) $ 40,957 Patents, copyrights, and trademarks 4,988 (4,373) 615 5,338 (4,588) 750 Intangible assets not subject to amortization: In progress 4,170 — 4,170 3,906 — 3,906 Trademarks and other 77 — 77 77 — 77 Total $ 129,855 $ (82,760) $ 47,095 $ 148,178 $ (102,488) $ 45,690 |
Schedule of Intangible Asset Amortization Expense | Amortization expense related to definite-lived intangible assets, reported in ‘Cost of sales’ and ‘Selling, general and administrative expenses’ was: Year Ended December 31, 2019 2018 2017 (in thousands) Cost of sales $ 3,398 $ 3,889 $ 4,550 Selling, general and administrative expenses 11,930 12,759 13,579 Total amortization expense $ 15,328 $ 16,648 $ 18,129 |
Schedule of Future Amortization of Intangible Assets | Estimated future annual amortization expense of intangible assets is: As of December 31, 2019 (in thousands) 2020 $ 15,284 2021 14,941 2022 4,303 2023 3,658 2024 2,620 Thereafter 2,042 Total $ 42,848 |
Accrued Expenses And Other Li_2
Accrued Expenses And Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Liabilities | Amounts reported in ‘Accrued expenses and other liabilities’ in the consolidated balance sheets were: December 31, 2019 2018 (in thousands) Accrued compensation and benefits $ 42,460 $ 43,970 Fulfillment, freight, and duties 20,110 12,234 Professional services 13,361 11,124 Accrued rent and occupancy (1) 4,682 6,956 Return liabilities 7,090 6,429 Sales/use and value added taxes payable 6,843 5,601 Royalties payable and deferred revenue 3,740 3,356 Other (2) 10,391 12,501 Total accrued expenses and other liabilities $ 108,677 $ 102,171 (1) At December 31, 2019, includes accrued rent and occupancy costs for leases with original terms of one year or less, which are excluded from recognition under the new lease accounting guidance adopted as of January 1, 2019. See Note 2 — Recent Accounting Pronouncements for more information. (2) At December 31, 2018, includes accrued payments of $3.0 million to induce the conversion of Series A Convertible Preferred Stock into shares of common stock. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Rights-of-use Assets and Operating Lease Liabilities | Amounts reported in the consolidated balance sheet were: December 31, 2019 (in thousands) Assets: Right-of-use assets $ 182,228 Liabilities: Current operating lease liabilities $ 48,585 Long-term operating lease liabilities 140,148 Total operating lease liabilities $ 188,733 |
Schedule of Lease Costs and Other Information | Lease-related costs, reported within ‘Cost of sales’ and ‘Selling, general and administrative expenses’, were: Year Ended December 31, 2019 (in thousands) Operating lease cost $ 60,142 Short-term lease cost 3,771 Variable lease cost 16,936 Total lease costs $ 80,849 Other information related to leases, including supplemental cash flow information, consists of: Year Ended December 31, 2019 (in thousands) Cash paid for operating leases $ 63,241 Right-of-use assets obtained in exchange for operating lease liabilities (1) 233,437 (1) Includes $176.1 million for operating leases existing on January 1, 2019 and a net $57.3 million for operating leases that commenced or were modified in the year ended December 31, 2019. As of December 31, 2019 Weighted average remaining lease term (in years) 5.9 Weighted average discount rate 4.8 % |
Schedule of Maturities of Operating Lease Liabilities | The maturities of our operating lease liabilities were: As of December 31, 2019 (in thousands) 2020 $ 52,434 2021 47,607 2022 33,138 2023 23,943 2024 14,228 Thereafter 48,996 Total future minimum lease payments 220,346 Less: imputed interest (31,613) Total operating lease liabilities $ 188,733 |
Future Minimum Lease Payments Under Operating Leases | Future minimum lease payments under operating leases were: As of (in thousands) 2019 $ 42,455 2020 36,299 2021 29,714 2022 20,721 2023 15,334 Thereafter 54,149 Total minimum lease payments (1) $ 198,672 (1) Includes future minimum lease payments of $25.4 million related to the new distribution center in Dayton, Ohio. |
Schedule of Rent Expense based on Guidance Previously in Effect | Rent expense for operating leases was: Year Ended December 31, 2018 2017 (in thousands) Minimum rentals (1) $ 66,049 $ 78,779 Contingent rentals 14,297 14,294 Total rent expense $ 80,346 $ 93,073 (1) Minimum rentals include all lease payments as well as fixed and variable common area maintenance, parking, and storage fees, which were approximately $9.3 million and $10.0 million for the years ended December 31, 2018 and 2017, respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Company's Notes Payable | The fair values of our outstanding borrowings approximate their carrying values at December 31, 2019 and 2018, based on interest rates currently available to us for similar borrowings and were: December 31, 2019 December 31, 2018 Carrying Value Fair Carrying Value Fair (in thousands) Borrowings $ 205,000 $ 205,000 $ 120,000 $ 120,000 |
Fair Value of Company's Non-financial Assets | The fair values of these assets were determined based on Level 3 measurements, including estimates of the amount and timing of future cash flows based upon historical experience, expected market conditions, and management’s plans. We recorded impairments as follows: Year Ended December 31, 2018 2017 (in thousands) Supply chain assets impairment $ 1,284 $ — Retail store assets impairment 898 530 Discontinued project — 4,754 Total asset impairments $ 2,182 $ 5,284 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Assets and Liabilities | The fair values of derivative assets and liabilities, net, all of which are classified as Level 2, reported within either ‘Prepaid expenses and other assets’ or ‘Accrued expenses and other liabilities’ in the consolidated balance sheets were: December 31, 2019 December 31, 2018 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities (in thousands) Forward foreign currency exchange contracts $ 535 $ (424) $ 943 $ (2,256) Netting of counterparty contracts (424) 424 (943) 943 Foreign currency forward contract derivatives $ 111 $ — $ — $ (1,313) |
Summary of Derivative Financial Instruments Notional Amounts on Outstanding Positions | The notional amounts of outstanding forward foreign currency exchange contracts shown below report the total U.S. Dollar equivalent position and the net contract fair values for each foreign currency position. December 31, 2019 December 31, 2018 Notional Fair Value Notional Fair Value (in thousands) Euro $ 46,757 $ 36 $ 34,959 $ (92) Singapore Dollar 31,255 344 34,584 254 Japanese Yen 11,823 63 25,561 (178) South Korean Won 10,328 (82) 9,408 63 British Pound Sterling 9,155 (104) 22,185 183 Other currencies 24,969 (146) 67,885 (1,543) Total $ 134,287 $ 111 $ 194,582 $ (1,313) Latest maturity date January 2020 January 2019 |
Schedule of Gains / Losses from Foreign Currency Transactions and Derivative Contracts | Amounts reported in ‘Foreign currency gains (losses), net’ in the consolidated statements of operations include both realized and unrealized gains (losses) from foreign currency transactions and derivative contracts and were as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Foreign currency transaction gains (losses) $ (356) $ 552 $ 2,284 Foreign currency forward exchange contracts gains (losses) (967) 766 (1,721) Foreign currency gains (losses), net $ (1,323) $ 1,318 $ 563 |
Revolving Credit Facility and_2
Revolving Credit Facility and Bank Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Components Of Our Consolidated Debt | Our borrowings were as follows: December 31, 2019 2018 (in thousands) Revolving credit facilities $ 205,000 $ 120,000 Less: Current portion of borrowings — — Total long-term borrowings $ 205,000 $ 120,000 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenues by Reportable Operating Segment and by Channel | Revenues by reportable operating segment and by channel were: Year Ended December 31, 2019 Americas Asia Pacific EMEA Other Businesses Total (in thousands) Channel: Wholesale $ 275,284 $ 207,405 $ 173,480 $ 58 $ 656,227 Retail 241,694 74,793 30,875 — 347,362 E-commerce 123,537 65,874 37,593 — 227,004 Total revenues $ 640,515 $ 348,072 $ 241,948 $ 58 $ 1,230,593 Year Ended December 31, 2018 Americas Asia Pacific EMEA Other Businesses Total (in thousands) Channel: Wholesale $ 216,797 $ 203,110 $ 154,992 $ 3,145 $ 578,044 Retail 204,806 87,264 35,358 — 327,428 E-commerce 98,589 54,224 29,920 — 182,733 Total revenues $ 520,192 $ 344,598 $ 220,270 $ 3,145 $ 1,088,205 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | Pre-tax share-based compensation expense reported in the consolidated statements of operations was: Year Ended December 31, 2019 2018 2017 (in thousands) Cost of sales $ 580 $ 362 $ 379 Selling, general and administrative expenses 13,832 12,743 9,394 Total share-based compensation expense $ 14,412 $ 13,105 $ 9,773 |
Stock Option Activity | Stock option activity during the year ended December 31, 2019 was: Number of Options Weighted Average Exercise Price Weighted Average Contractual Life (Years) Aggregate Intrinsic Value (in thousands, except exercise price and years) Outstanding as of December 31, 2018 362 $ 11.05 5.68 $ 5,407 Granted — — Exercised (27) 13.25 Forfeited or expired (20) 17.54 Outstanding as of December 31, 2019 315 $ 10.45 5.28 $ 9,904 Exercisable at December 31, 2019 248 $ 11.38 4.71 $ 7,577 Vested and expected to vest at December 31, 2019 315 $ 10.45 5.28 $ 9,904 |
Schedule of Pricing Model Assumptions | During the year ended December 31, 2017, stock options were valued using a Black Scholes option pricing model using the following assumptions. Year Ended December 31, 2017 Expected volatility 40.7% Dividend yield — Risk-free interest rate 1.76% Expected life (in years) 4.0 |
Schedule Of Restricted Stock Award And Restricted Stock Unit Activity | RSA and RSU activity during the year ended December 31, 2019 was: Restricted Stock Awards Restricted Stock Units Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value (in thousands, except fair value data) Unvested at December 31, 2018 6 $ 18.61 2,752 $ 11.58 Granted 12 20.53 817 25.37 Vested (13) 20.00 (997) 9.92 Forfeited — — (645) 11.79 Unvested at December 31, 2019 5 $ 19.39 1,927 $ 17.77 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table sets forth income before taxes and the expense for income taxes: Year Ended December 31, 2019 2018 2017 (in thousands) Income (loss) before taxes: U.S. $ 58,822 $ 10,088 $ (34,406) Foreign 60,500 55,069 52,586 Total income (loss) before taxes $ 119,322 $ 65,157 $ 18,180 Income tax expense (benefit): Current income taxes: U.S. federal $ 1,284 $ 1,156 $ 1,383 U.S. state 1,427 246 127 Foreign 13,373 12,359 9,525 Total current income taxes 16,084 13,761 11,035 Deferred income taxes: U.S. federal (10,249) 276 1,300 U.S. state (3,579) — — Foreign (2,431) 683 (4,393) Total deferred income taxes (16,259) 959 (3,093) Total income tax expense (benefit) $ (175) $ 14,720 $ 7,942 |
Summary of Tax Expense and Effective Tax Rates | The following table sets forth income reconciliations of the statutory federal income tax rate to actual rates based on income or loss before income taxes: Year Ended December 31, 2019 2018 2017 (in thousands) Income tax expense and rate attributable to: Federal income tax rate $ 25,058 21.0 % $ 13,683 21.0 % $ 6,363 35.0 % State income tax rate, net of federal benefit 5,983 5.0 % 1,271 2.0 % 53 0.3 % Foreign income tax rate differential 1,994 1.7 % 7,630 11.6 % (11,768) (64.7) % Enacted changes in tax law 634 0.5 % 495 0.8 % 17,645 97.1 % GILTI, net 7,585 6.4 % 3,443 5.3 % — — % Non-deductible / non-taxable items 6,727 5.7 % 3,602 5.5 % 6,006 33.0 % Change in valuation allowance (33,691) (28.2) % (5,304) (8.1) % 24,400 134.2 % U.S. tax on foreign earnings — — % — — % (32,427) (178.4) % Foreign tax credits (12,541) (10.5) % (7,709) (11.9) % (7,980) (43.9) % Uncertain tax positions 278 0.2 % (1,696) (2.6) % 1,054 5.8 % Audit settlements 391 0.3 % 183 0.3 % 354 1.9 % Share-based compensation (2,715) (2.3) % 764 1.2 % 882 4.9 % Deferred income tax account adjustments — — % (25) — % 2,679 14.7 % Other 122 0.1 % (1,617) (2.5) % 681 3.8 % Effective income tax expense and rate $ (175) (0.1) % $ 14,720 22.6 % $ 7,942 43.7 % |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table sets forth deferred income tax assets and liabilities as of the date shown: December 31, 2019 2018 (in thousands) Non-current deferred tax assets: Share-based compensation expense $ 2,218 $ 2,051 Accruals, reserves, and other expenses 13,726 18,734 Net operating loss 29,997 37,727 Intangible assets 990 1,363 Foreign tax credit 64,355 66,321 Operating lease liabilities (1) 36,996 — Other 4,467 3,611 Valuation allowance (79,023) (113,237) Total non-current deferred tax assets $ 73,726 $ 16,570 Non-current deferred tax liabilities: Unrealized gain on foreign currency $ (529) $ (164) Property and equipment (13,713) (7,332) Right-of-use assets (1) (34,470) — Other (267) (411) Total non-current deferred tax liabilities $ (48,979) $ (7,907) (1) Adoption of new lease accounting guidance as of January 1, 2019, as described in Note 2 — Recent Accounting Pronouncements, resulted in the recognition of a right-of-use asset deferred tax liability and an operating lease liability deferred tax asset. These temporary differences will reverse over the life of the leases. |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table sets forth a reconciliation of the beginning and ending amount of unrecognized tax benefits: Year Ended December 31, 2019 2018 2017 (in thousands) Unrecognized tax benefit as of January 1 $ 4,511 $ 6,204 $ 4,750 Additions in tax positions taken in prior period 631 250 683 Reductions in tax positions taken in prior period (1,532) (690) — Additions in tax positions taken in current period 1,786 461 966 Settlements (391) (621) (123) Lapse of statute of limitations (368) (1,045) (414) Cumulative foreign currency translation adjustment (24) (48) 342 Unrecognized tax benefit as of December 31 $ 4,613 $ 4,511 $ 6,204 |
Summary of Income Tax Examinations | The following table sets forth the tax years subject to examination for the major jurisdictions where we conduct business as of December 31, 2019: The Netherlands 2005 to 2019 Canada 2011 to 2019 Japan 2012 to 2019 China 2009 to 2019 Singapore 2014 to 2019 United States 2010 to 2019 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary Of Basic And Diluted Earnings Per Share | Basic and diluted EPS for the years ended December 31, 2019, 2018, and 2017 were as follows: Year Ended December 31, 2019 2018 2017 (in thousands, except per share data) Numerator: Net income (loss) attributable to common stockholders (1) $ 119,497 $ (69,216) $ (5,294) Denominator: Weighted average common shares outstanding - basic 70,357 68,421 72,255 Plus: dilutive effect of stock options and unvested restricted stock units 1,414 — — Weighted average common shares outstanding - diluted 71,771 68,421 72,255 Net income (loss) per common share: Basic $ 1.70 $ (1.01) $ (0.07) Diluted $ 1.66 $ (1.01) $ (0.07) |
Operating Segments and Geogra_2
Operating Segments and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Information Related to Reportable Operating Segments | The following tables set forth information related to reportable operating segments: Year Ended December 31, 2019 2018 2017 (in thousands) Revenues: Americas $ 640,515 $ 520,192 $ 480,146 Asia Pacific 348,072 344,598 336,073 EMEA 241,948 220,270 206,424 Segment revenues 1,230,535 1,085,060 1,022,643 Other businesses 58 3,145 870 Total consolidated revenues $ 1,230,593 $ 1,088,205 $ 1,023,513 Income from operations: Americas $ 204,868 $ 138,940 $ 96,740 Asia Pacific 80,645 82,780 72,950 EMEA 70,326 59,539 37,185 Segment income from operations 355,839 281,259 206,875 Reconciliation of segment income from operations to income before income taxes: Other businesses (54,936) (55,583) (22,861) Unallocated corporate (1) (172,254) (162,732) (166,678) Total consolidated income from operations 128,649 62,944 17,336 Foreign currency gains (losses), net (1,323) 1,318 563 Interest income 601 1,281 870 Interest expense (8,636) (955) (869) Other income 31 569 280 Income before income taxes $ 119,322 $ 65,157 $ 18,180 Depreciation and amortization: Americas $ 3,593 $ 4,640 $ 5,473 Asia Pacific 963 2,049 3,405 EMEA 793 1,252 1,937 Total segment depreciation and amortization 5,349 7,941 10,815 Other businesses 5,234 5,256 6,748 Unallocated corporate 13,630 16,053 15,567 Total consolidated depreciation and amortization $ 24,213 $ 29,250 $ 33,130 (1) Includes corporate support and administrative functions, costs associated with share-based compensation, research and development, marketing, legal, depreciation and amortization of corporate and other assets not allocated to operating segments, and intersegment eliminations. There were no customers who represented 10% or more of consolidated revenues during the years ended December 31, 2019, 2018 and 2017. The following table sets forth certain geographical information regarding Crocs’ revenues for the periods as shown: Year Ended December 31, 2019 2018 2017 (in thousands) Location: United States $ 563,473 $ 442,544 $ 388,847 International 667,120 645,661 634,666 Total revenues $ 1,230,593 $ 1,088,205 $ 1,023,513 The following table sets forth geographical information regarding property and equipment assets as of the dates shown: December 31, 2019 2018 (in thousands) Location: United States $ 41,745 $ 17,489 International 5,660 4,722 Total property and equipment, net $ 47,405 $ 22,211 |
Unaudited Quarterly Consolida_2
Unaudited Quarterly Consolidated Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Consolidated Financial Information | For the Quarter Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 (in thousands, except per share data) Revenues (1) $ 295,949 $ 358,899 $ 312,766 $ 262,979 Gross profit 137,615 189,379 163,824 126,238 Income from operations 32,578 47,831 39,884 8,356 Net income (2) 24,710 39,198 35,676 19,913 Net income attributable to common shareholders (2) 24,710 39,198 35,676 19,913 Basic income per common share (3) $ 0.34 $ 0.55 $ 0.52 $ 0.29 Diluted income per common share (3) $ 0.33 $ 0.55 $ 0.51 $ 0.29 (1) Due to the seasonal nature of our products, we experience decreased revenues in the fourth quarter of the year relative to the other quarters. (2) During the three months ended December 31, 2019, we reduced a portion of the valuation allowance recorded against certain deferred tax assets, resulting in a tax benefit. See Note 13 — Income Taxes for more information. (3) Basic and diluted income per common share are computed independently for each of the quarters presented. Therefore, the sum of the quarters may not equal the annual amounts presented in the consolidated statements of operations. For the Quarter Ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 (in thousands, except per share data) Revenues (1) $ 283,148 $ 328,004 $ 261,064 $ 215,989 Gross profit 139,873 181,400 139,059 99,822 Income (loss) from operations 25,922 37,064 13,895 (13,937) Net income (loss) 16,454 34,377 10,492 (10,886) Net income (loss) attributable to common shareholders (2) 12,523 30,426 6,520 (118,685) Basic income (loss) per common share $ 0.15 $ 0.37 $ 0.08 $ (1.72) Diluted income (loss) per common share $ 0.15 $ 0.35 $ 0.07 $ (1.72) (1) Due to the seasonal nature of our products, we experience decreased revenues in the fourth quarter of the year relative to the other quarters. (2) The balance in ‘Net income (loss) attributable to common shareholders’ for the three months ended December 31, 2018 was impacted by the repurchase and conversion of Series A Convertible Preferred Stock. See Note 10 — Equity and the consolidated statement of operations for more information. |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Thousands | Nov. 04, 2019shares | Nov. 04, 2019USD ($) | Dec. 31, 2019USD ($)affiliate | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Nov. 03, 2019shares | Jan. 01, 2018 | |
Related Party Transaction [Line Items] | ||||||||
Number of affiliates that provided services | affiliate | 3 | |||||||
Research, design and development expense | $ 11,800 | $ 14,100 | $ 13,400 | |||||
Marketing expenses, including advertising, production, promotion, and agency expenses | 83,200 | 68,600 | 59,100 | |||||
Prepaid advertising and promotional endorsement costs | 11,600 | 7,500 | ||||||
Percentage of inventory covered under new inventory system | 95.00% | |||||||
Convertible preferred stock accretion of beneficial conversion feature | 17,567 | [1] | 3,532 | |||||
Acquired value of beneficial conversion feature | 6,100 | |||||||
Blackstone | ||||||||
Related Party Transaction [Line Items] | ||||||||
Paid for services received | $ 2,200 | $ 800 | $ 700 | |||||
Blackstone | Legal Costs For Blackstone Affiliates Public Offering Transaction | ||||||||
Related Party Transaction [Line Items] | ||||||||
Paid for services received | $ 300 | |||||||
Blackstone Capital Partners VI LP. | Blackstone | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares owned (shares) | shares | 6,899,027 | |||||||
Number of shares sold (shares) | shares | 6,864,545 | |||||||
Gregg S. Ribatt | Blackstone | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares sold (shares) | shares | 34,482 | |||||||
Minimum | Machinery and Equipment | ||||||||
Related Party Transaction [Line Items] | ||||||||
Property and equipment useful life | 2 years | |||||||
Minimum | Furniture, Fixtures and Other | ||||||||
Related Party Transaction [Line Items] | ||||||||
Property and equipment useful life | 2 years | |||||||
Maximum | Machinery and Equipment | ||||||||
Related Party Transaction [Line Items] | ||||||||
Property and equipment useful life | 10 years | |||||||
Maximum | Furniture, Fixtures and Other | ||||||||
Related Party Transaction [Line Items] | ||||||||
Property and equipment useful life | 10 years | |||||||
Capitalized software | Minimum | ||||||||
Related Party Transaction [Line Items] | ||||||||
Intangible asset useful life | 2 years | |||||||
Capitalized software | Maximum | ||||||||
Related Party Transaction [Line Items] | ||||||||
Intangible asset useful life | 8 years | |||||||
Patents, copyrights, and trademarks | Minimum | ||||||||
Related Party Transaction [Line Items] | ||||||||
Intangible asset useful life | 7 years | |||||||
Patents, copyrights, and trademarks | Maximum | ||||||||
Related Party Transaction [Line Items] | ||||||||
Intangible asset useful life | 25 years | |||||||
[1] | Represents total accretion of $17.6 million, net of $6.1 million acquired value of beneficial conversion feature attributable to repurchased Series A Convertible Preferred Stock. |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Supplemental Schedule of Noncash Investing and Financing Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||||
Accrued purchases of property, equipment, and software | $ 15,206 | $ 1,141 | $ 2,195 | |
Series A preferred stock conversion | 0 | 100,000 | 0 | |
Series A preferred stock accretion, net | 0 | 17,567 | 3,532 | |
Vendor financed insurance premiums | $ 0 | 0 | 1,450 | |
Convertible preferred stock accretion of beneficial conversion feature | 17,567 | [1] | $ 3,532 | |
Acquired value of beneficial conversion feature | $ 6,100 | |||
[1] | Represents total accretion of $17.6 million, net of $6.1 million acquired value of beneficial conversion feature attributable to repurchased Series A Convertible Preferred Stock. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use assets | $ 182,228 | ||
Lease liabilities | 188,733 | ||
Retained earnings | $ (240,485) | $ (121,215) | |
2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use assets | $ 176,100 | ||
Lease liabilities | 187,400 | ||
Retained earnings | $ 200 |
Property and Equipment, Net (Sc
Property and Equipment, Net (Schedule of Property and Equipment) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Leasehold improvements | $ 64,540,000 | $ 63,702,000 |
Machinery and equipment | 39,011,000 | 20,054,000 |
Furniture, fixtures, and other | 19,761,000 | 16,779,000 |
Construction-in-progress | 3,697,000 | 2,632,000 |
Property and equipment | 127,009,000 | 103,167,000 |
Less: Accumulated depreciation and amortization | (79,604,000) | (80,956,000) |
Property and equipment, net | 47,405,000 | $ 22,211,000 |
Retail store assets impairment | $ 0 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, plant and equipment [Line Items] | |||
Net gain (loss) on disposal of property and equipment and intangible assets | $ 200,000 | $ (4,800,000) | $ 800,000 |
Retail store assets impairment | $ 0 | ||
Supply chain assets impairment | 1,300,000 | ||
Underperforming Retail Stores | |||
Property, plant and equipment [Line Items] | |||
Retail store assets impairment | $ 898,000 | $ 530,000 |
Property and Equipment, Net (_2
Property and Equipment, Net (Schedule of Depreciation and Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, plant and equipment [Line Items] | |||
Depreciation | $ 8,885 | $ 12,602 | $ 15,001 |
Cost of sales | |||
Property, plant and equipment [Line Items] | |||
Depreciation | 1,711 | 1,422 | 2,278 |
Selling, general and administrative expenses | |||
Property, plant and equipment [Line Items] | |||
Depreciation | $ 7,174 | $ 11,180 | $ 12,723 |
Property and Equipment, Net (_3
Property and Equipment, Net (Schedule of Property Impairments) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)store | Dec. 31, 2017USD ($)store | |
Property, plant and equipment [Line Items] | |||
Retail store assets impairment | $ 0 | ||
Underperforming Retail Stores | |||
Property, plant and equipment [Line Items] | |||
Retail store assets impairment | $ 898,000 | $ 530,000 | |
Number of retail stores impaired | store | 13 | 4 | |
Underperforming Retail Stores | Americas | |||
Property, plant and equipment [Line Items] | |||
Retail store assets impairment | $ 138,000 | $ 455,000 | |
Number of retail stores impaired | store | 1 | 3 | |
Underperforming Retail Stores | Asia Pacific | |||
Property, plant and equipment [Line Items] | |||
Retail store assets impairment | $ 760,000 | $ 0 | |
Number of retail stores impaired | store | 12 | 0 | |
Underperforming Retail Stores | EMEA | |||
Property, plant and equipment [Line Items] | |||
Retail store assets impairment | $ 0 | $ 75,000 | |
Number of retail stores impaired | store | 0 | 1 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net (Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, net - beginning balance | $ 1,614 | $ 1,688 |
Foreign currency translation | (36) | (74) |
Goodwill, net - ending balance | 1,578 | $ 1,614 |
Accumulated goodwill impairment | $ 800 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net (Summary of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (82,760) | $ (102,488) |
Total | 42,848 | |
Intangible assets, gross | 129,855 | 148,178 |
Intangible assets, net | $ 47,095 | 45,690 |
Weighted average remaining useful life of intangible assets | 6 years 3 months 18 days | |
In progress | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 4,170 | 3,906 |
Trademarks and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 77 | 77 |
Capitalized software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount of finite-lived intangible assets | 120,620 | 138,857 |
Accumulated amortization | (78,387) | (97,900) |
Total | 42,233 | 40,957 |
Patents, copyrights, and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount of finite-lived intangible assets | 4,988 | 5,338 |
Accumulated amortization | (4,373) | (4,588) |
Total | $ 615 | $ 750 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net (Schedule of Intangible Asset Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 15,328 | $ 16,648 | $ 18,129 |
Cost of sales | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 3,398 | 3,889 | 4,550 |
Selling, general and administrative expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 11,930 | $ 12,759 | $ 13,579 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net (Schedule Of Future Amortization Of Intangible Assets) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 15,284 |
2021 | 14,941 |
2022 | 4,303 |
2023 | 3,658 |
2024 | 2,620 |
Thereafter | 2,042 |
Total | $ 42,848 |
Accrued Expenses And Other Li_3
Accrued Expenses And Other Liabilities (Schedule Of Accrued Expenses & Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 42,460 | $ 43,970 |
Fulfillment, freight, and duties | 20,110 | 12,234 |
Professional services | 13,361 | 11,124 |
Accrued rent and occupancy | 4,682 | 6,956 |
Return liabilities | 7,090 | 6,429 |
Sales/use and value added taxes payable | 6,843 | 5,601 |
Royalties payable and deferred revenue | 3,740 | 3,356 |
Other | 10,391 | 12,501 |
Total accrued expenses and other liabilities | $ 108,677 | 102,171 |
Accrued payments to induce conversion | $ 3,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands, € in Millions | Jan. 01, 2019USD ($) | Dec. 31, 2019USD ($)renewal_option | Dec. 31, 2019EUR (€)renewal_option | Dec. 31, 2018USD ($) |
Lessee, Lease, Description [Line Items] | ||||
Number of renewal options (or more) | renewal_option | 1 | 1 | ||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 233,437 | |||
Operating lease liability | $ 198,672 | |||
Operating leases existing at January 1, 2019 Existing at Beginning of Period | ||||
Lessee, Lease, Description [Line Items] | ||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 176,100 | |||
Operating leases commenced during the quarter | ||||
Lessee, Lease, Description [Line Items] | ||||
Right-of-use assets obtained in exchange for operating lease liabilities | 57,300 | |||
Corporate Headquarters and Regional Office in Broomfield, Colorado | ||||
Lessee, Lease, Description [Line Items] | ||||
Expected payments on leases not yet commenced | 20,400 | |||
Expected total capital investments on leases not yet commenced | 7,000 | |||
New Distribution Center in Dordrecht | ||||
Lessee, Lease, Description [Line Items] | ||||
Expected payments on leases not yet commenced | 24,600 | € 21.9 | ||
Expected total capital investments on leases not yet commenced | $ 22,400 | € 20 | ||
New Distribution Center in Dayton, Ohio | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease liability | $ 25,400 |
Leases (Right-of-Use Assets and
Leases (Right-of-Use Assets and Operating Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Right-of-use assets | $ 182,228 |
Current operating lease liabilities | 48,585 |
Long-term operating lease liabilities | 140,148 |
Total operating lease liabilities | $ 188,733 |
Leases (Lease Costs and Other I
Leases (Lease Costs and Other Information) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 60,142 |
Short-term lease cost | 3,771 |
Variable lease cost | 16,936 |
Total lease costs | 80,849 |
Cash paid for operating leases | 63,241 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 233,437 |
Weighted average remaining lease term (in years) | 5 years 10 months 24 days |
Weighted average discount rate (percent) | 4.80% |
Leases (Maturities of Company's
Leases (Maturities of Company's Operating Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 52,434 |
2021 | 47,607 |
2022 | 33,138 |
2023 | 23,943 |
2024 | 14,228 |
Thereafter | 48,996 |
Total future minimum lease payments | 220,346 |
Less: imputed interest | (31,613) |
Total operating lease liabilities | $ 188,733 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 42,455 |
2020 | 36,299 |
2021 | 29,714 |
2022 | 20,721 |
2023 | 15,334 |
Thereafter | 54,149 |
Total minimum lease payments | $ 198,672 |
Leases (Comparative Information
Leases (Comparative Information Based on Prior Accounting Guidance in Effect) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | ||
Minimum rentals | $ 66,049 | $ 78,779 |
Contingent rentals | 14,297 | 14,294 |
Total rent expense | 80,346 | 93,073 |
Common area maintenance, parking and storage fees | $ 9,300 | $ 10,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Assets and Liabilities at Fair Value) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items] | |||
Supply chain assets impairment | $ 1,300,000 | ||
Retail store assets impairment | $ 0 | ||
Total asset impairments | 0 | 2,182,000 | $ 5,284,000 |
Recurring | |||
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items] | |||
Fair value of Company's derivative asset | 100,000 | ||
Fair value of Company's derivative liability | 1,300,000 | ||
Carrying Value | |||
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items] | |||
Borrowings | 205,000,000 | 120,000,000 | |
Fair Value | Recurring | |||
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items] | |||
Borrowings | $ 205,000,000 | 120,000,000 | |
Fair Value | Nonrecurring | Level 3 | |||
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items] | |||
Supply chain assets impairment | 1,284,000 | 0 | |
Retail store assets impairment | 898,000 | 530,000 | |
Discontinued project | 0 | 4,754,000 | |
Total asset impairments | $ 2,182,000 | $ 5,284,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Fair Value of Derivative Assets and Liabilities) (Details) - Level 2 - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Foreign Currency Derivatives [Abstract] | ||
Derivative assets - Forward foreign currency exchange contracts | $ 535 | $ 943 |
Derivative assets - Netting of counterparty contracts | (424) | (943) |
Derivative assets - Foreign currency forward contract derivatives | 111 | 0 |
Derivative liabilities - Forward foreign currency exchange contracts | (424) | (2,256) |
Derivative liabilities - Netting of counterparty contracts | 424 | 943 |
Derivative liabilities - Foreign currency forward contract derivatives | $ 0 | $ (1,313) |
Derivative Financial Instrume_4
Derivative Financial Instruments (Summary Of Derivative Financial Instruments Notional Amounts On Outstanding Positions) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Notional | $ 134,287 | $ 194,582 |
Fair Value | 111 | (1,313) |
Euro | ||
Derivatives, Fair Value [Line Items] | ||
Notional | 46,757 | 34,959 |
Fair Value | 36 | (92) |
Singapore Dollar | ||
Derivatives, Fair Value [Line Items] | ||
Notional | 31,255 | 34,584 |
Fair Value | 344 | 254 |
Japanese Yen | ||
Derivatives, Fair Value [Line Items] | ||
Notional | 11,823 | 25,561 |
Fair Value | 63 | (178) |
South Korean Won | ||
Derivatives, Fair Value [Line Items] | ||
Notional | 10,328 | 9,408 |
Fair Value | (82) | 63 |
British Pound Sterling | ||
Derivatives, Fair Value [Line Items] | ||
Notional | 9,155 | 22,185 |
Fair Value | (104) | 183 |
Other currencies | ||
Derivatives, Fair Value [Line Items] | ||
Notional | 24,969 | 67,885 |
Fair Value | $ (146) | $ (1,543) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Gains / Losses on Foreign Currency Derivatives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Foreign currency transaction gains (losses) | $ (356) | $ 552 | $ 2,284 |
Foreign currency forward exchange contracts gains (losses) | (967) | 766 | (1,721) |
Foreign currency gains (losses), net | $ (1,323) | $ 1,318 | $ 563 |
Revolving Credit Facility and_3
Revolving Credit Facility and Bank Borrowings (Components Of Our Consolidated Debt And Capital Lease Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Less: Current portion of borrowings | $ 0 | $ 0 |
Total long-term borrowings | 205,000 | 120,000 |
Revolving credit facilities | ||
Debt Instrument [Line Items] | ||
Revolving credit facilities | $ 205,000 | $ 120,000 |
Revolving Credit Facility and_4
Revolving Credit Facility and Bank Borrowings (Revolving Credit Facilities and Notes Payable) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jul. 31, 2019USD ($) | |
Line of Credit Facility [Line Items] | |||
Borrowings under credit facility | $ 0 | $ 0 | |
Revolving credit facilities | |||
Line of Credit Facility [Line Items] | |||
Weighted average interest rate (percent) | 3.96% | 4.69% | |
Revolving credit facilities | Senior Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Current borrowing capacity | $ 450,000,000 | $ 450,000,000 | |
Additional borrowing capacity available under revolving credit facility | $ 150,000,000 | ||
Minimum interest coverage ratio | 4 | ||
Minimum borrowing capacity available for certain acquisitions | 40,000,000 | ||
Outstanding borrowings on the Facility | 205,000,000 | ||
Available borrowing capacity | $ 240,400,000 | $ 129,400,000 | |
Revolving credit facilities | Senior Revolving Credit Facility | From September 30, 2019 to September 30, 2020 | |||
Line of Credit Facility [Line Items] | |||
Maximum coverage ratio | 3.50 | ||
Revolving credit facilities | Senior Revolving Credit Facility | From December 31, 2020 and thereafter | |||
Line of Credit Facility [Line Items] | |||
Maximum coverage ratio | 3.25 | ||
Revolving credit facilities | Senior Revolving Credit Facility | In event of certain permitted acquisitions | |||
Line of Credit Facility [Line Items] | |||
Maximum coverage ratio | 4 | ||
Revolving credit facilities | Senior Revolving Credit Facility | In event of stock repurchases | |||
Line of Credit Facility [Line Items] | |||
Aggregate stock permitted | 0.25 | ||
Revolving credit facilities | Senior Revolving Credit Facility | Federal funds rate | |||
Line of Credit Facility [Line Items] | |||
Margin on variable rate (percent) | 0.25% | ||
Revolving credit facilities | Senior Revolving Credit Facility | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Margin on variable rate (percent) | 1.00% | ||
Revolving credit facilities | Senior Revolving Credit Facility | LIBOR | Minimum | |||
Line of Credit Facility [Line Items] | |||
Margin on variable rate (percent) | 1.00% | ||
Revolving credit facilities | Senior Revolving Credit Facility | LIBOR | Maximum | |||
Line of Credit Facility [Line Items] | |||
Margin on variable rate (percent) | 1.875% | ||
Revolving credit facilities | Asia Pacific Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Outstanding borrowings on the Facility | $ 0 | $ 0 | |
Letters of credit | Senior Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Outstanding borrowings on the Facility | $ 4,600,000 |
Equity (Details)
Equity (Details) | Dec. 05, 2018USD ($)shares | Jan. 31, 2019USD ($) | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2019USD ($)class_of_stockvote$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | May 05, 2019USD ($) | Feb. 20, 2018USD ($) | |||
Class of Stock [Line Items] | |||||||||||
Number of classes of stock | class_of_stock | 1 | ||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||
Common stock authorized (shares) | shares | 250,000,000 | ||||||||||
Number of votes entitled to for each common share | vote | 1 | ||||||||||
Preferred stock authorized (shares) | shares | 5,000,000 | ||||||||||
Preferred stock issued (shares) | shares | 0 | ||||||||||
Preferred stock outstanding (shares) | shares | 0 | ||||||||||
Accretion of unamortized discount and beneficial conversion feature | $ 17,567,000 | [1] | $ 3,532,000 | ||||||||
Net increase in dividend equivalents on Series A convertible preferred shares | $ 0 | [2] | $ 11,429,000 | 3,532,000 | |||||||
Shares repurchased (shares) | shares | 100,000 | ||||||||||
Cash payment to repurchase Series A Preferred shares | 0 | $ 183,724,000 | 0 | ||||||||
Excess over carrying value | [2] | 0 | $ 108,224,000 | $ 12,000,000 | |||||||
Preferred shares converted into common stock (shares) | shares | 100,000 | 100,000 | |||||||||
Inducements paid | $ 12,000,000 | $ 3,000,000 | $ 15,000,000 | $ 3,000,000 | $ 12,000,000 | ||||||
Other costs | $ 500,000 | ||||||||||
Series A Convertible Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock authorized (shares) | shares | 1,000,000 | ||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||||||||
Preferred stock issued (shares) | shares | 0 | ||||||||||
Preferred stock outstanding (shares) | shares | 0 | ||||||||||
Accretion of unamortized discount and beneficial conversion feature | 14,700,000 | ||||||||||
Settlement of beneficial conversion feature | 6,100,000 | ||||||||||
Net increase in dividend equivalents on Series A convertible preferred shares | $ 8,600,000 | ||||||||||
Shares repurchased (shares) | shares | 100,000 | ||||||||||
Carrying value of preferred stock | $ 100,000,000 | ||||||||||
Cash payment to repurchase Series A Preferred shares | 183,700,000 | ||||||||||
Excess over carrying value | $ 83,700,000 | ||||||||||
Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock authorized for repurchase | $ 500,000,000 | ||||||||||
Increase in amounts authorized for repurchase | $ 500,000,000 | ||||||||||
Stock repurchased during period (shares) | shares | 6,100,000 | 3,600,000 | 5,700,000 | ||||||||
Stock repurchased during period | $ 147,200,000 | $ 63,100,000 | $ 50,000,000 | ||||||||
Remaining authorization to repurchase | $ 508,600,000 | ||||||||||
Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Number of shares issued upon conversion (shares) | shares | 6,896,548 | 6,897,000 | [3] | ||||||||
[1] | Represents total accretion of $17.6 million, net of $6.1 million acquired value of beneficial conversion feature attributable to repurchased Series A Convertible Preferred Stock. | ||||||||||
[2] | On December 5, 2018, all issued and outstanding shares of Series A Convertible Preferred Stock were repurchased in exchange for cash or converted to common stock. As a result, amounts reported for the year ended December 31, 2018, include amounts resulting from the repurchase and conversion, in addition to dividends, payments to induce conversion, and accretion of dividend equivalents prior to December 5, 2018. | ||||||||||
[3] | Represents the issuance of common stock upon conversion of 100,000 shares of Series A Convertible Preferred Stock. |
Revenues - Revenue by Reportabl
Revenues - Revenue by Reportable Operating Segment and by Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 262,979 | $ 312,766 | $ 358,899 | $ 295,949 | $ 215,989 | $ 261,064 | $ 328,004 | $ 283,148 | $ 1,230,593 | $ 1,088,205 | $ 1,023,513 |
Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 656,227 | 578,044 | |||||||||
Retail | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 347,362 | 327,428 | |||||||||
E-commerce | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 227,004 | 182,733 | |||||||||
Americas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 640,515 | 520,192 | |||||||||
Americas | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 275,284 | 216,797 | |||||||||
Americas | Retail | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 241,694 | 204,806 | |||||||||
Americas | E-commerce | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 123,537 | 98,589 | |||||||||
Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 348,072 | 344,598 | |||||||||
Asia Pacific | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 207,405 | 203,110 | |||||||||
Asia Pacific | Retail | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 74,793 | 87,264 | |||||||||
Asia Pacific | E-commerce | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 65,874 | 54,224 | |||||||||
EMEA | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 241,948 | 220,270 | |||||||||
EMEA | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 173,480 | 154,992 | |||||||||
EMEA | Retail | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 30,875 | 35,358 | |||||||||
EMEA | E-commerce | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 37,593 | 29,920 | |||||||||
Other Businesses | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 58 | 3,145 | |||||||||
Other Businesses | Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 58 | 3,145 | |||||||||
Other Businesses | Retail | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | |||||||||
Other Businesses | E-commerce | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 0 | $ 0 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)segmentsdistribution_channel | Dec. 31, 2018USD ($) | |
Revenue from External Customer [Line Items] | ||
Number of reportable segments | segments | 3 | |
Number of distribution channels | distribution_channel | 3 | |
Change in Estimate of Product Transfers | Wholesale | ||
Revenue from External Customer [Line Items] | ||
Increase (decrease) in revenues | $ 400,000 | $ 800,000 |
Change in Estimate of Product Transfers | E-commerce | ||
Revenue from External Customer [Line Items] | ||
Increase (decrease) in revenues | (100,000) | 0 |
Change in Estimate of Product Transfers | Retail | ||
Revenue from External Customer [Line Items] | ||
Increase (decrease) in revenues | 0 | 0 |
Advance customer deposits | ||
Revenue from External Customer [Line Items] | ||
Deferred revenues | 1,200,000 | 1,600,000 |
Deferred revenues recognized in revenue | 2,000,000 | |
Refund liabilities | ||
Revenue from External Customer [Line Items] | ||
Deferred revenues | $ 7,100,000 | $ 6,400,000 |
Share-based Compensation (Narra
Share-based Compensation (Narrative) (Details) shares in Millions | Dec. 31, 2019shares |
Share-based Payment Arrangement [Abstract] | |
Shares available for future issuance (shares) | 2.4 |
Share-based Compensation (Sched
Share-based Compensation (Schedule of Share-based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 14,412 | $ 13,105 | $ 9,773 |
Cost of sales | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 580 | 362 | 379 |
Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 13,832 | $ 12,743 | $ 9,394 |
Share-based Compensation (Stock
Share-based Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Options | ||
Options outstanding at beginning of period (shares) | 362,000 | |
Granted (shares) | 0 | 0 |
Exercised (shares) | (27,000) | |
Forfeited or expired (shares) | (20,000) | |
Options outstanding at end of period (shares) | 315,000 | 362,000 |
Options exercisable at end of period (shares) | 248,000 | |
Weighted Average Exercise Price | ||
Options outstanding, Weighted average exercise price at beginning of period (in dollars per share) | $ 11.05 | |
Options granted, Weighted average exercise price (in dollars per share) | 0 | |
Options exercised, Weighted average exercise price (in dollars per share) | 13.25 | |
Options forfeited or expired, Weighted average exercise price (in dollars per share) | 17.54 | |
Options outstanding, Weighted average exercise price at end of period (in dollars per share) | 10.45 | $ 11.05 |
Options exercisable, Weighted average exercise price at end of period (in dollars per share) | $ 11.38 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options outstanding, Weighted average remaining contractual life at beginning of period | 5 years 3 months 10 days | 5 years 8 months 4 days |
Options exercisable, Weighted average remaining contractual life at end of period | 4 years 8 months 15 days | |
Aggregate Intrinsic Value, Outstanding | $ 9,904 | $ 5,407 |
Options exercisable, Aggregate intrinsic value at end of period | $ 7,577 | |
Vested and expected to vest at December 31, 2019 | ||
Vested and expected to vest at end of period (shares) | 315,000 | |
Vested and expected to vest, Weighted average exercise price at end of period (in dollars per share) | $ 10.45 | |
Vested and expected to vest, Weighted average remaining contractual life at end of period | 5 years 3 months 10 days | |
Vested and expected to vest, Aggregate intrinsic value at end of period | $ 9,904 |
Share-based Compensation (Prici
Share-based Compensation (Pricing Model Assumptions) (Details) - Stock options | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 40.70% |
Dividend yield | 0.00% |
Risk-free interest rate (percent) | 1.76% |
Expected life (in years) | 4 years |
Share-based Compensation (Sto_2
Share-based Compensation (Stock Option Activity Narrative) (Details) - Stock options - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value of granted (in dollars per share) | $ 2.37 | ||
Aggregate intrinsic value of options exercised | $ 0.4 | $ 1.7 | $ 0.1 |
Proceeds from options exercised | 0.4 | $ 1.3 | $ 0.1 |
Unrecognized share-based compensation expense related to unvested options | $ 0.1 | ||
Amortized over a weighted average period | 4 months 24 days | ||
Options vesting period | 4 years | ||
Options expiration period | 10 years | ||
Remaining Years Monthly Vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting period | 3 years |
Share-based Compensation (Sch_2
Share-based Compensation (Schedule Of Restricted Stock Award And Restricted Stock Unit Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Awards | |||
Shares | |||
Unvested beginning balance (shares) | 6 | ||
Granted (shares) | 12 | ||
Vested (shares) | (13) | ||
Forfeited (shares) | 0 | ||
Unvested ending balance (shares) | 5 | 6 | |
Weighted Average Grant Date Fair Value | |||
Weighted average grant date fair value beginning balance (in dollars per share) | $ 18.61 | ||
Weighted average grant date fair value of granted (in dollars per share) | 20.53 | $ 18.61 | $ 6.84 |
Weighted average grant date fair value of vested (in dollars per share) | 20 | ||
Weighted average grant date fair value of forfeited (in dollars per share) | 0 | ||
Weighted average grant date fair value ending balance (in dollars per share) | $ 19.39 | $ 18.61 | |
Restricted Stock Units | |||
Shares | |||
Unvested beginning balance (shares) | 2,752 | ||
Granted (shares) | 817 | ||
Vested (shares) | (997) | ||
Forfeited (shares) | (645) | ||
Unvested ending balance (shares) | 1,927 | 2,752 | |
Weighted Average Grant Date Fair Value | |||
Weighted average grant date fair value beginning balance (in dollars per share) | $ 11.58 | ||
Weighted average grant date fair value of granted (in dollars per share) | 25.37 | $ 14.34 | $ 6.84 |
Weighted average grant date fair value of vested (in dollars per share) | 9.92 | ||
Weighted average grant date fair value of forfeited (in dollars per share) | 11.79 | ||
Weighted average grant date fair value ending balance (in dollars per share) | $ 17.77 | $ 11.58 |
Share-based Compensation (Restr
Share-based Compensation (Restricted Stock Awards And Restricted Stock Units Activity Narrative) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)vesting_installment$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | |
Restricted Stock Awards | |||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |||
RSAs and RSUs general vesting period | 3 years | ||
Shares granted in period (shares) | 12 | ||
Weighted average grant date fair value of granted (in dollars per share) | $ / shares | $ 20.53 | $ 18.61 | $ 6.84 |
Grant date fair value of awards | $ | $ 0.2 | $ 0.2 | $ 0.2 |
Unrecognized share-based compensation expense related to unvested awards | $ | $ 0.1 | ||
Amortized over a weighted average period | 4 months 24 days | ||
Awards vested in period (shares) | 13 | ||
Restricted Stock Units | |||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |||
Shares granted in period (shares) | 817 | ||
Weighted average grant date fair value of granted (in dollars per share) | $ / shares | $ 25.37 | $ 14.34 | $ 6.84 |
Grant date fair value of awards | $ | $ 9.9 | $ 9.7 | $ 8.3 |
Awards vested in period (shares) | 997 | ||
Time-based RSUs | |||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |||
Number of annual vesting installments | vesting_installment | 3 | ||
Shares granted in period (shares) | 300 | 400 | 1,100 |
Unrecognized share-based compensation expense related to unvested awards | $ | $ 8.5 | ||
Amortized over a weighted average period | 1 year 3 months 18 days | ||
Awards vested in period (shares) | 600 | 900 | 700 |
Performance-based RSUs | |||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |||
Number of annual vesting installments | vesting_installment | 3 | ||
Shares granted in period (shares) | 500 | 1,000 | 1,300 |
Unrecognized share-based compensation expense related to unvested awards | $ | $ 5 | ||
Amortized over a weighted average period | 1 year 7 months 6 days | ||
Awards vested in period (shares) | 400 | 200 | 100 |
Minimum | Performance-based RSUs | |||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |||
Percentage of performance range of RSUs that may be awarded (percent) | 0.00% | ||
Maximum | Performance-based RSUs | |||
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |||
Percentage of performance range of RSUs that may be awarded (percent) | 200.00% |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income (loss) before taxes: | |||
U.S. | $ 58,822 | $ 10,088 | $ (34,406) |
Foreign | 60,500 | 55,069 | 52,586 |
Income before income taxes | 119,322 | 65,157 | 18,180 |
Current income taxes: | |||
U.S. federal | 1,284 | 1,156 | 1,383 |
U.S. state | 1,427 | 246 | 127 |
Foreign | 13,373 | 12,359 | 9,525 |
Total current income taxes | 16,084 | 13,761 | 11,035 |
Deferred income taxes: | |||
U.S. federal | (10,249) | 276 | 1,300 |
U.S. state | (3,579) | 0 | 0 |
Foreign | (2,431) | 683 | (4,393) |
Total deferred income taxes | (16,259) | 959 | (3,093) |
Total income tax expense (benefit) | $ (175) | $ 14,720 | $ 7,942 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax expense and rate attributable to: | |||
Federal income tax rate | $ 25,058 | $ 13,683 | $ 6,363 |
State income tax rate, net of federal benefit | 5,983 | 1,271 | 53 |
Foreign income tax rate differential | 1,994 | 7,630 | (11,768) |
Enacted changes in tax law | 634 | 495 | 17,645 |
GILTI, net | 7,585 | 3,443 | 0 |
Non-deductible / non-taxable items | 6,727 | 3,602 | 6,006 |
Change in valuation allowance | (33,691) | (5,304) | 24,400 |
U.S. tax on foreign earnings | 0 | 0 | (32,427) |
Foreign tax credits | (12,541) | (7,709) | (7,980) |
Uncertain tax positions | 278 | (1,696) | 1,054 |
Audit settlements | 391 | 183 | 354 |
Share-based compensation | (2,715) | 764 | 882 |
Deferred income tax account adjustments | 0 | (25) | 2,679 |
Other | 122 | (1,617) | 681 |
Total income tax expense (benefit) | $ (175) | $ 14,720 | $ 7,942 |
Income tax expense and rate attributable to (percent): | |||
Federal income tax rate (percent) | 21.00% | 21.00% | 35.00% |
State income tax rate, net of federal benefit (percent) | 5.00% | 2.00% | 0.30% |
Foreign differential (percent) | 1.70% | 11.60% | (64.70%) |
Enacted changes in tax law (percent) | 0.50% | 0.80% | 97.10% |
GILTI, net (percent) | 6.40% | 5.30% | 0.00% |
Non-deductible / non-taxable items (percent) | 5.70% | 5.50% | 33.00% |
Change in valuation allowance (percent) | (28.20%) | (8.10%) | 134.20% |
U.S. tax on foreign earnings (percent) | 0.00% | 0.00% | (178.40%) |
Foreign tax credits (percent) | (10.50%) | (11.90%) | (43.90%) |
Uncertain tax positions (percent) | 0.20% | (2.60%) | 5.80% |
Audit settlements (percent) | 0.30% | 0.30% | 1.90% |
Share-based compensation (percent) | (2.30%) | 1.20% | 4.90% |
Deferred income tax account adjustments (percent) | 0.00% | 0.00% | 14.70% |
Other (percent) | 0.10% | (2.50%) | 3.80% |
Effective tax rate (percent) | (0.10%) | 22.60% | 43.70% |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Non-current deferred tax assets: | ||
Share-based compensation expense | $ 2,218 | $ 2,051 |
Accruals, reserves, and other expenses | 13,726 | 18,734 |
Net operating loss | 29,997 | 37,727 |
Intangible assets | 990 | 1,363 |
Foreign tax credit | 64,355 | 66,321 |
Operating lease liabilities | 36,996 | 0 |
Other | 4,467 | 3,611 |
Valuation allowance | (79,023) | (113,237) |
Total non-current deferred tax assets | 73,726 | 16,570 |
Non-current deferred tax liabilities: | ||
Unrealized gain on foreign currency | (529) | (164) |
Property and equipment | (13,713) | (7,332) |
Right-of-use assets | (34,470) | 0 |
Other | (267) | (411) |
Total non-current deferred tax liabilities | $ (48,979) | $ (7,907) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Net increase (decrease) in deferred tax asset valuation allowance | $ (34.2) | $ (6.3) | |
Net expense related to increase in unrecognized tax benefits | 0.3 | ||
Income tax penalties and interest | 0.4 | 0.2 | $ 0.2 |
Interest from settlements, lapse of statutes, and change in certainty released | 0.2 | ||
Cumulative accrued balance of penalties and interest | 0.7 | 0.6 | 0.7 |
Unrecognized tax benefits that would impact effective tax rate | 4 | 4.5 | $ 6.2 |
U.S federal taxing authority | |||
Operating Loss Carryforwards [Line Items] | |||
Aggregate tax loss carryforward | 39.7 | 46.6 | |
U.S. state tax | |||
Operating Loss Carryforwards [Line Items] | |||
Aggregate tax loss carryforward | 6.7 | 11.1 | |
Foreign taxing authority | |||
Operating Loss Carryforwards [Line Items] | |||
Aggregate tax loss carryforward | 48 | 47.7 | |
Valuation Allowance Related To Income Tax Expense | |||
Operating Loss Carryforwards [Line Items] | |||
Net increase (decrease) in deferred tax asset valuation allowance | (33.7) | (5.3) | |
Impact of Unrecorded Tax Attributes Related to Changes in Cumulative Translation Adjustments | |||
Operating Loss Carryforwards [Line Items] | |||
Net increase (decrease) in deferred tax asset valuation allowance | $ (0.5) | $ (1) |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit as of January 1 | $ 4,511 | $ 6,204 | $ 4,750 |
Additions in tax positions taken in prior period | 631 | 250 | 683 |
Reductions in tax positions taken in prior period | (1,532) | (690) | 0 |
Additions in tax positions taken in current period | 1,786 | 461 | 966 |
Settlements | (391) | (621) | (123) |
Lapse of statute of limitations | (368) | (1,045) | (414) |
Cumulative foreign currency translation adjustment | (24) | (48) | |
Cumulative foreign currency translation adjustment | 342 | ||
Unrecognized tax benefit as of December 31 | $ 4,613 | $ 4,511 | $ 6,204 |
Earnings Per Share (Summary Of
Earnings Per Share (Summary Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) attributable to common stockholders | $ 19,913 | $ 35,676 | $ 39,198 | $ 24,710 | $ (118,685) | $ 6,520 | $ 30,426 | $ 12,523 | $ 119,497 | $ (69,216) | $ (5,294) |
Weighted average common shares outstanding - basic (shares) | 70,357,000 | 68,421,000 | 72,255,000 | ||||||||
Plus: dilutive effect of stock options and unvested restricted stock units (shares) | 1,414,000 | 0 | 0 | ||||||||
Weighted average common shares outstanding - diluted (shares) | 71,771,000 | 68,421,000 | 72,255,000 | ||||||||
Basic (in dollars per share) | $ 0.29 | $ 0.52 | $ 0.55 | $ 0.34 | $ (1.72) | $ 0.08 | $ 0.37 | $ 0.15 | $ 1.70 | $ (1.01) | $ (0.07) |
Diluted (in dollars per share) | $ 0.29 | $ 0.51 | $ 0.55 | $ 0.33 | $ (1.72) | $ 0.07 | $ 0.35 | $ 0.15 | $ 1.66 | $ (1.01) | $ (0.07) |
Outstanding shares issued under share-based compensation awards excluded from computation of diluted EPS (shares) | 0 |
Commitments And Contingencies (
Commitments And Contingencies (Purchase Commitments) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Purchase commitment | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Purchase commitments with third party manufacturers | $ 155.5 | $ 165.3 |
Operating Segments and Geogra_3
Operating Segments and Geographic Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019segments | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Operating Segments and Geogra_4
Operating Segments and Geographic Information (Information Related To Reportable Operating Business Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Total consolidated revenues | $ 262,979 | $ 312,766 | $ 358,899 | $ 295,949 | $ 215,989 | $ 261,064 | $ 328,004 | $ 283,148 | $ 1,230,593 | $ 1,088,205 | $ 1,023,513 |
Income (loss) from operations | 8,356 | $ 39,884 | $ 47,831 | $ 32,578 | (13,937) | $ 13,895 | $ 37,064 | $ 25,922 | 128,649 | 62,944 | 17,336 |
Foreign currency gains (losses), net | (1,323) | 1,318 | 563 | ||||||||
Interest income | 601 | 1,281 | 870 | ||||||||
Interest expense | (8,636) | (955) | (869) | ||||||||
Other income, net | 31 | 569 | 280 | ||||||||
Income before income taxes | 119,322 | 65,157 | 18,180 | ||||||||
Total consolidated depreciation and amortization | 24,213 | 29,250 | 33,130 | ||||||||
Total property and equipment, net | 47,405 | 22,211 | 47,405 | 22,211 | |||||||
Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total consolidated revenues | 640,515 | 520,192 | |||||||||
Asia Pacific | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total consolidated revenues | 348,072 | 344,598 | |||||||||
EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total consolidated revenues | 241,948 | 220,270 | |||||||||
Other businesses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total consolidated revenues | 58 | 3,145 | |||||||||
Reportable Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total consolidated revenues | 1,230,535 | 1,085,060 | 1,022,643 | ||||||||
Income (loss) from operations | 355,839 | 281,259 | 206,875 | ||||||||
Total consolidated depreciation and amortization | 5,349 | 7,941 | 10,815 | ||||||||
Reportable Operating Segments | Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total consolidated revenues | 640,515 | 520,192 | 480,146 | ||||||||
Income (loss) from operations | 204,868 | 138,940 | 96,740 | ||||||||
Total consolidated depreciation and amortization | 3,593 | 4,640 | 5,473 | ||||||||
Reportable Operating Segments | Asia Pacific | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total consolidated revenues | 348,072 | 344,598 | 336,073 | ||||||||
Income (loss) from operations | 80,645 | 82,780 | 72,950 | ||||||||
Total consolidated depreciation and amortization | 963 | 2,049 | 3,405 | ||||||||
Reportable Operating Segments | EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total consolidated revenues | 241,948 | 220,270 | 206,424 | ||||||||
Income (loss) from operations | 70,326 | 59,539 | 37,185 | ||||||||
Total consolidated depreciation and amortization | 793 | 1,252 | 1,937 | ||||||||
Reportable Operating Segments | Other businesses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total consolidated revenues | 58 | 3,145 | 870 | ||||||||
Income (loss) from operations | (54,936) | (55,583) | (22,861) | ||||||||
Total consolidated depreciation and amortization | 5,234 | 5,256 | 6,748 | ||||||||
Unallocated corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income (loss) from operations | (172,254) | (162,732) | (166,678) | ||||||||
Total consolidated depreciation and amortization | 13,630 | 16,053 | 15,567 | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total consolidated revenues | 563,473 | 442,544 | 388,847 | ||||||||
Total property and equipment, net | 41,745 | 17,489 | 41,745 | 17,489 | |||||||
International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total consolidated revenues | 667,120 | 645,661 | $ 634,666 | ||||||||
Total property and equipment, net | $ 5,660 | $ 4,722 | $ 5,660 | $ 4,722 |
Legal Proceedings (Details)
Legal Proceedings (Details) R$ in Millions, $ in Millions | Mar. 22, 2018USD ($) | Feb. 25, 2015BRL (R$) | Feb. 25, 2015USD ($) | Jan. 13, 2015BRL (R$) | Jan. 13, 2015USD ($) |
Loss Contingency [Abstract] | |||||
Assessments sought again entity | R$ | R$ 33.3 | R$ 14.4 | |||
Brazilian Federal Tax Authorities | |||||
Loss Contingency [Abstract] | |||||
Assessments sought again entity | $ 5.1 | ||||
Reduction in principal, penalties and interest (percent) | 38.00% | ||||
Pending Litigation | Brazilian Federal Tax Authorities | |||||
Loss Contingency [Abstract] | |||||
Assessments sought again entity | $ 8.3 | $ 3.6 |
Legal Proceedings - Accrued Est
Legal Proceedings - Accrued Estimated Losses (Details) $ in Millions | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Accrued estimated losses | $ 0.2 |
Possible loss in excess of accrued amounts | $ 1.4 |
Employee Benefit Plan (Narrativ
Employee Benefit Plan (Narrative) (Details) - Defined Contribution Plan - Defined Contribution Benefit Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employees' vesting percentage in matching contributions (percent) | 100.00% | ||
Contributions made by the Company under the Plan | $ 5.1 | $ 5.4 | $ 5.5 |
Tranches One | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution (percent) | 100.00% | ||
Employee's salary contribution (percent) | 3.00% | ||
Tranches Two | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution (percent) | 50.00% | ||
Employee's salary contribution (percent) | 2.00% |
Unaudited Quarterly Consolida_3
Unaudited Quarterly Consolidated Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 262,979 | $ 312,766 | $ 358,899 | $ 295,949 | $ 215,989 | $ 261,064 | $ 328,004 | $ 283,148 | $ 1,230,593 | $ 1,088,205 | $ 1,023,513 |
Gross profit | 126,238 | 163,824 | 189,379 | 137,615 | 99,822 | 139,059 | 181,400 | 139,873 | 617,056 | 560,154 | 517,221 |
Income (loss) from operations | 8,356 | 39,884 | 47,831 | 32,578 | (13,937) | 13,895 | 37,064 | 25,922 | 128,649 | 62,944 | 17,336 |
Net income (loss) | 19,913 | 35,676 | 39,198 | 24,710 | (10,886) | 10,492 | 34,377 | 16,454 | 119,497 | 50,437 | 10,238 |
Net income (loss) attributable to common stockholders | $ 19,913 | $ 35,676 | $ 39,198 | $ 24,710 | $ (118,685) | $ 6,520 | $ 30,426 | $ 12,523 | $ 119,497 | $ (69,216) | $ (5,294) |
Basic income (loss) per common shares (in dollars per share) | $ 0.29 | $ 0.52 | $ 0.55 | $ 0.34 | $ (1.72) | $ 0.08 | $ 0.37 | $ 0.15 | $ 1.70 | $ (1.01) | $ (0.07) |
Diluted income (loss) per common share (in dollars per share) | $ 0.29 | $ 0.51 | $ 0.55 | $ 0.33 | $ (1.72) | $ 0.07 | $ 0.35 | $ 0.15 | $ 1.66 | $ (1.01) | $ (0.07) |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 20,477 | $ 31,389 | $ 48,138 |
Charged to Costs and Expenses | 81,430 | 81,180 | 76,115 |
Deductions | (83,110) | (92,092) | (92,864) |
Balance at End of Period | 18,797 | 20,477 | 31,389 |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 10,959 | 18,325 | 32,856 |
Charged to Costs and Expenses | 1,566 | 711 | 1,235 |
Deductions | (4,249) | (8,077) | (15,766) |
Balance at End of Period | 8,276 | 10,959 | 18,325 |
Reserve for sales returns and allowances | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 2,741 | 4,983 | 6,121 |
Charged to Costs and Expenses | 73,027 | 71,865 | 65,562 |
Deductions | (70,507) | (74,107) | (66,700) |
Balance at End of Period | 5,261 | 2,741 | 4,983 |
Reserve for unapplied rebates | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 6,777 | 8,081 | 9,161 |
Charged to Costs and Expenses | 6,837 | 8,604 | 9,318 |
Deductions | (8,354) | (9,908) | (10,398) |
Balance at End of Period | $ 5,260 | $ 6,777 | $ 8,081 |
Uncategorized Items - crox-2019
Label | Element | Value | [1] |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (227,000) | |
Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (227,000) | |
[1] | The decrease to beginning retained earnings is as a result of the adoption of new lease accounting standards as of January 1, 2019, as discussed in Note 2 — Recent Accounting Pronouncements. |