Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 16, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-51754 | |
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 $0.001 per share | |
Trading Symbol | CROX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001334036 | |
Entity Common Stock, Shares Outstanding | 67,374,960 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Revenues | $ 281,160 | $ 295,949 |
Cost of sales | 146,998 | 158,334 |
Gross profit | 134,162 | 137,615 |
Selling, general and administrative expenses | 113,350 | 105,037 |
Income from operations | 20,812 | 32,578 |
Foreign currency losses, net | (231) | (1,217) |
Interest income | 97 | 195 |
Interest expense | (1,921) | (1,817) |
Other income, net | 21 | 590 |
Income before income taxes | 18,778 | 30,329 |
Income tax expense | 7,687 | 5,619 |
Net income | $ 11,091 | $ 24,710 |
Net income per common share: | ||
Basic (in dollars per share) | $ 0.16 | $ 0.34 |
Diluted (in dollars per share) | $ 0.16 | $ 0.33 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 67,931 | 73,009 |
Diluted (in shares) | 69,218 | 74,875 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 11,091 | $ 24,710 | |
Other comprehensive income (loss): | |||
Foreign currency translation losses, net | (11,366) | (941) | |
Reclassification of foreign currency translation loss to income | [1] | (164) | 0 |
Total comprehensive income (loss) | $ (439) | $ 23,769 | |
[1] | Represents the reclassification of cumulative foreign currency translation adjustment upon liquidation of foreign subsidiaries during the quarter ended March 31, 2020 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 107,038 | $ 108,253 |
Accounts receivable, net of allowances of $19,922 and $18,797, respectively | 172,398 | 108,199 |
Inventories | 195,755 | 172,028 |
Income taxes receivable | 3,174 | 1,341 |
Other receivables | 12,533 | 8,711 |
Restricted cash - current | 1,595 | 1,500 |
Prepaid expenses and other assets | 21,508 | 25,350 |
Total current assets | 514,001 | 425,382 |
Property and equipment, net of accumulated depreciation and amortization of $81,127 and $79,604, respectively | 47,019 | 47,405 |
Intangible assets, net of accumulated amortization of $86,722 and $82,760, respectively | 46,393 | 47,095 |
Goodwill | 1,552 | 1,578 |
Deferred tax assets, net | 24,108 | 24,747 |
Restricted cash | 1,959 | 2,292 |
Right-of-use assets | 193,070 | 182,228 |
Other assets | 8,138 | 8,075 |
Total assets | 836,240 | 738,802 |
Current liabilities: | ||
Accounts payable | 104,893 | 95,754 |
Accrued expenses and other liabilities | 71,309 | 108,677 |
Income taxes payable | 9,803 | 4,207 |
Current operating lease liabilities | 50,026 | 48,585 |
Total current liabilities | 236,031 | 257,223 |
Long-term income taxes payable | 4,039 | 4,522 |
Long-term borrowings | 350,000 | 205,000 |
Long-term operating lease liabilities | 152,139 | 140,148 |
Other liabilities | 2 | 4 |
Total liabilities | 742,211 | 606,897 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.001 per share, 5.0 million shares authorized including 1.0 million authorized as Series A Convertible Preferred Stock, none outstanding | 0 | 0 |
Common stock, par value $0.001 per share, 250.0 million shares authorized, 104.8 million and 104.0 million issued, 67.4 million and 68.2 million outstanding, respectively | 105 | 104 |
Treasury stock, at cost, 37.5 million and 35.8 million shares, respectively | (587,940) | (546,208) |
Additional paid-in capital | 500,197 | 495,903 |
Retained earnings | 251,576 | 240,485 |
Accumulated other comprehensive loss | (69,909) | (58,379) |
Total stockholders’ equity | 94,029 | 131,905 |
Total liabilities and stockholders’ equity | $ 836,240 | $ 738,802 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Allowances | $ 19,922 | $ 18,797 |
Accumulated Depreciation | 81,127 | 79,604 |
Intangible assets, accumulated amortization | $ 86,722 | $ 82,760 |
Preferred stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock issued (in shares) | 104,800,000 | 104,000,000 |
Common stock outstanding (in shares) | 67,400,000 | 68,200,000 |
Treasury stock (in shares) | 37,500,000 | 35,800,000 |
Series A convertible preferred stock | ||
Preferred stock authorized (in shares) | 1,000,000 | 1,000,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED 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 (in shares) at Dec. 31, 2018 | 73,306 | 29,656 | ||||
Beginning 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 | 3,634 | 3,634 | ||||
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units (in shares) | 836 | 49 | ||||
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units | (1,061) | $ 1 | $ (1,227) | 165 | ||
Repurchases of common stock (in shares) | (2,133) | 2,133 | ||||
Repurchases of common stock | (53,478) | $ (53,478) | ||||
Net income | 24,710 | 24,710 | ||||
Other comprehensive loss | (941) | (941) | ||||
Ending balance (in shares) at Mar. 31, 2019 | 72,009 | 31,838 | ||||
Ending balance at Mar. 31, 2019 | 122,945 | $ 104 | $ (452,196) | 484,932 | 145,698 | (55,593) |
Beginning balance (in shares) at Dec. 31, 2019 | 68,232 | 35,796 | ||||
Beginning balance at Dec. 31, 2019 | 131,905 | $ 104 | $ (546,208) | 495,903 | 240,485 | (58,379) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 3,964 | 3,964 | ||||
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units (in shares) | 702 | 115 | ||||
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units | (2,242) | $ 1 | $ (2,573) | 330 | ||
Repurchases of common stock (in shares) | (1,559) | 1,559 | ||||
Repurchases of common stock | (39,159) | $ (39,159) | ||||
Net income | 11,091 | 11,091 | ||||
Other comprehensive loss | (11,530) | (11,530) | ||||
Ending balance (in shares) at Mar. 31, 2020 | 67,375 | 37,470 | ||||
Ending balance at Mar. 31, 2020 | $ 94,029 | $ 105 | $ (587,940) | $ 500,197 | $ 251,576 | $ (69,909) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Cash flows from operating activities: | |||
Net income | $ 11,091 | $ 24,710 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 6,907 | 6,136 | |
Operating lease cost | 14,994 | 14,930 | |
Share-based compensation | 3,964 | 3,634 | |
Other non-cash items | 5,877 | (911) | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net of allowances | (73,232) | (80,722) | |
Inventories | (29,268) | (15,099) | |
Prepaid expenses and other assets | 3,294 | 6,875 | |
Accounts payable, accrued expenses and other liabilities | (16,218) | (3,658) | |
Operating lease liabilities | (12,323) | (19,610) | |
Cash used in operating activities | (84,914) | (63,715) | |
Cash flows from investing activities: | |||
Purchases of property, equipment, and software | (16,076) | (10,553) | |
Proceeds from disposal of property and equipment | 25 | 225 | |
Other | (116) | 0 | |
Cash used in investing activities | (16,167) | (10,328) | |
Cash flows from financing activities: | |||
Proceeds from bank borrowings | 145,000 | 95,000 | |
Dividends—Series A convertible preferred stock | [1] | 0 | (2,985) |
Repurchases of common stock | (39,159) | (53,478) | |
Other | (2,717) | (1,662) | |
Cash provided by financing activities | 103,124 | 36,875 | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (3,496) | (22) | |
Net change in cash, cash equivalents, and restricted cash | (1,453) | (37,190) | |
Cash, cash equivalents, and restricted cash—beginning of period | 112,045 | 127,530 | |
Cash, cash equivalents, and restricted cash—end of period | $ 110,592 | $ 90,340 | |
[1] | For the three months ended March 31, 2019, represents $3.0 million paid to induce conversion of Series A Convertible Preferred Stock to common stock. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Statement of Cash Flows [Abstract] | |
Payments to induce conversion of Series A Convertible Preferred Stock to common stock | $ 3 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2020 | |
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 our 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. See Note 14 — Operating Segments and Geographic Information for additional information. The accompanying unaudited condensed consolidated interim financial statements include our accounts and those of our wholly-owned subsidiaries, and reflect all adjustments which are necessary for a fair statement of the 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”). Such unaudited condensed consolidated interim financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. These unaudited condensed consolidated interim financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2019 (“Annual Report”), and have been prepared on a consistent basis with the accounting policies described in Note 1 of the Notes to the Audited Consolidated Financial Statements included in our Annual Report. Our accounting policies did not change during the three months ended March 31, 2020, other than with respect to the new accounting pronouncements adopted as described in Note 2 — Recent Accounting Pronouncements. Use of Estimates U.S. GAAP requires 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, are reasonable based on information available at the time they are made. Additionally, the full impact of COVID-19 is unknown and cannot be reasonably estimated. However, we have made appropriate accounting estimates based on the facts and circumstances available as of the reporting date. To the extent there are differences between these estimates and actual results, our consolidated financial statements may be materially affected. Seasonality of Business Due to the seasonal nature of our footwear, which is more heavily focused on styles suitable for warm weather, revenues generated during our fourth quarter, when the northern hemisphere is experiencing cooler weather, are typically less than revenues generated during our first three quarters. Our quarterly results of operations may also fluctuate significantly as a result of a variety of other factors, including the timing of new model introductions, general economic conditions, and consumer confidence. Accordingly, results of operations and cash flows for any one quarter are not necessarily indicative of expected results for any other quarter or for any other year. Transactions with Affiliates In 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 in an underwritten public offering on November 4, 2019. 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 offering. 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 $0.7 million for the three months ended March 31, 2019. Expenses related to these services are reported in ‘Selling, general and administrative expenses’ in the condensed consolidated statements of operations. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS New Accounting Pronouncement 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. On January 1, 2020, we adopted this guidance on a modified retrospective basis. Based on the nature of our financial instruments included within the scope of this standard, which are primarily trade and other receivables, the adoption did not have a material effect on our condensed 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. On January 1, 2020, we adopted this guidance on a prospective basis. The adoption did not have a material effect on our condensed consolidated financial statements. New Accounting Pronouncements Not Yet Adopted 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 condensed consolidated financial statements. Reference Rate Reform In March 2020, the FASB issued optional guidance related to reference rate reform, which provides practical expedients for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. This guidance is applicable for our borrowing instruments, which use LIBOR as a reference rate, and is effective immediately, but is only available through December 31, 2022. We are currently evaluating the potential impact of this standard on our condensed consolidated financial statements. Other Pronouncements Other new pronouncements issued but not effective until after March 31, 2020 are not expected to have a material impact on our condensed consolidated financial statements. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | ACCRUED EXPENSES AND OTHER LIABILITIES Amounts reported in ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheets were: March 31, December 31, (in thousands) Accrued compensation and benefits $ 16,464 $ 42,460 Fulfillment, freight, and duties 18,122 20,110 Professional services 10,584 13,361 Accrued rent and occupancy 3,757 4,682 Return liabilities 3,469 7,090 Sales/use and value added taxes payable 5,624 6,843 Royalties payable and deferred revenue 2,913 3,740 Other 10,376 10,391 Total accrued expenses and other liabilities $ 71,309 $ 108,677 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASES Right-of-Use Assets and Operating Lease Liabilities Amounts reported in the condensed consolidated balance sheet were: March 31, 2020 December 31, 2019 (in thousands) Assets: Right-of-use assets $ 193,070 $ 182,228 Liabilities: Current operating lease liabilities $ 50,026 $ 48,585 Long-term operating lease liabilities 152,139 140,148 Total operating lease liabilities $ 202,165 $ 188,733 Lease Costs and Other Information Lease-related costs reported within ‘Cost of sales’ and ‘Selling, general and administrative expenses’ in our condensed consolidated statement of operations were: Three Months Ended 2020 2019 (in thousands) Operating lease cost $ 14,994 $ 14,930 Short-term lease cost 1,325 1,360 Variable lease cost 1,500 2,989 Total lease costs $ 17,819 $ 19,279 Other information related to leases, including supplemental cash flow information, consists of: Three Months Ended 2020 2019 (in thousands) Cash paid for operating leases $ 12,293 $ 18,574 Right-of-use assets obtained in exchange for operating lease liabilities (1) 24,790 177,509 (1) In the three months ended March 31, 2019, we implemented ASC 842, Leases. The previously reported amount includes $176.1 million for operating leases existing on January 1, 2019 and $1.4 million for operating leases that commenced in the first quarter of 2019. The weighted average remaining lease term and discount rate related to our lease liabilities as of March 31, 2020 were 6.3 years and 4.7%, respectively. As of March 31, 2019, the weighted average remaining lease term and discount rate related to our lease liabilities were 5.7 years and 4.7%, respectively. Maturities The maturities of our operating lease liabilities were: As of March 31, 2020 (in thousands) 2020 (remainder of year) $ 42,343 2021 50,196 2022 35,832 2023 26,650 2024 17,013 Thereafter 65,102 Total future minimum lease payments 237,136 Less: imputed interest (34,971) Total operating lease liabilities $ 202,165 Lease Commencements In the first quarter of 2020, the lease for our new corporate headquarters and regional office commenced, the impact of which is included in the above lease disclosures. We are currently evaluating when to physically relocate our headquarters, in consideration of the continuing impacts of the COVID-19 pandemic. Leases That Have Not Yet Commenced As of March 31, 2020, we had significant obligations for a lease that has not yet commenced related to our new EMEA distribution center. 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 total 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 $24.2 million, with expected total capital investments of approximately €20.0 million, or $22.1 million, through 2021. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements All of our derivative instruments are classified as Level 2 of the fair value hierarchy and are reported in the condensed consolidated balance sheets within ‘Accrued expenses and other liabilities’ at March 31, 2020 and within ‘Prepaid expenses and other assets’ at December 31, 2019. The fair values of our derivative instruments were a liability of $1.0 million and an asset of $0.1 million at March 31, 2020 and December 31, 2019, respectively. See Note 6 — 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 condensed consolidated balance sheets, which may differ from their respective fair values. The fair values of our outstanding borrowings approximate their carrying values at March 31, 2020 and December 31, 2019, based on interest rates currently available to us for similar borrowings and were: March 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Borrowings $ 350,000 $ 350,000 $ 205,000 $ 205,000 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 are 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. Impairment expense is reported in ‘Selling, general and administrative expenses’ in our condensed consolidated statements of operations. We did not record impairment expense in the three months ended March 31, 2020 or 2019. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2020 | |
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 that 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 March 31, 2020 or December 31, 2019. Our derivative instruments are recorded at fair value as a derivative asset or liability in the condensed 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 condensed consolidated statements of operations. For the condensed 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 ‘Accrued expenses and other liabilities’ or ‘Prepaid expenses and other assets’ in the condensed consolidated balance sheets were: March 31, 2020 December 31, 2019 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities (in thousands) Forward foreign currency exchange contracts $ 1,990 $ (2,983) $ 535 $ (424) Netting of counterparty contracts (1,990) 1,990 (424) 424 Foreign currency forward contract derivatives $ — $ (993) $ 111 $ — The notional amounts of outstanding foreign currency forward exchange contracts presented below report the total U.S. Dollar equivalent position and the net contract fair values for each foreign currency position. March 31, 2020 December 31, 2019 Notional Fair Value Notional Fair Value (in thousands) Euro $ 27,818 $ (82) $ 46,757 $ 36 Singapore Dollar 37,416 (1,730) 31,255 344 Japanese Yen 28,022 (517) 11,823 63 South Korean Won 22,453 458 10,328 (82) British Pound Sterling 4,816 192 9,155 (104) Other currencies 23,219 686 24,969 (146) Total $ 143,744 $ (993) $ 134,287 $ 111 Latest maturity date April 2020 January 2020 Amounts reported in ‘Foreign currency losses, net’ in the condensed consolidated statements of operations include both realized and unrealized gains (losses) from foreign currency transactions and derivative contracts, and were: Three Months Ended 2020 2019 (in thousands) Foreign currency transaction gains (losses) $ 1,027 $ (1,433) Foreign currency forward exchange contracts gains (losses) (1,258) 216 Foreign currency losses, net $ (231) $ (1,217) |
REVOLVING CREDIT FACILITIES AND
REVOLVING CREDIT FACILITIES AND BANK BORROWINGS | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
REVOLVING CREDIT FACILITIES AND BANK BORROWINGS | REVOLVING CREDIT FACILITIES AND BANK BORROWINGS Our borrowings were as follows: March 31, December 31, (in thousands) Revolving credit facilities $ 350,000 $ 205,000 Less: Current portion of borrowings — — Total long-term borrowings $ 350,000 $ 205,000 Senior Revolving Credit Facility In July 2019, the Company and certain of our 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 provided for a revolving credit facility of $450.0 million. In March 2020, we amended the Credit Agreement to, among other things, increase the total commitments under the Credit Agreement by $50.0 million, resulting in total commitments of $500.0 million, which can be increased by an additional $100.0 million subject to certain conditions (the “Facility”). Borrowings under the Credit Agreement bear interest at a variable rate based on (A) 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 1.00%), plus an applicable margin ranging from 0.25% to 0.875% based on our leverage ratio, or (B) a LIBOR rate, plus an applicable margin ranging from 1.25% 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) 4.00 to 1.00 until September 30, 2020, (ii) 3.50 to 1.00 from December 31, 2020 to December 31, 2021, and (iii) 3.25 to 1.00 from March 31, 2022 and thereafter (subject to adjustment in certain circumstances). The Credit Agreement permits (i) stock repurchases subject to certain restrictions, including after giving effect to such stock repurchases, the maximum leverage ratio does not exceed certain levels; and (ii) certain acquisitions so long as there is borrowing availability under the Credit Agreement of at least $40.0 million. As of March 31, 2020, we were in compliance with all financial covenants under the Credit Agreement. As of March 31, 2020, the total commitments available from the lenders under the Facility were $500.0 million. At March 31, 2020, we had $350.0 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 March 31, 2020 and December 31, 2019, we had $145.4 million and $240.4 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 three months ended March 31, 2020 and year ended December 31, 2019 or borrowings outstanding at March 31, 2020 and December 31, 2019. |
COMMON STOCK REPURCHASE PROGRAM
COMMON STOCK REPURCHASE PROGRAM | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
COMMON STOCK REPURCHASE PROGRAM | COMMON STOCK REPURCHASE PROGRAM During the three months ended March 31, 2020, we repurchased 1.6 million shares of our common stock at a cost of $39.2 million, including commissions. During the three months ended March 31, 2019, we repurchased 2.1 million shares of our common stock at a cost of $53.5 million, including commissions. As of March 31, 2020, we had remaining authorization to repurchase approximately $469.5 million of our common stock, subject to restrictions under our Credit Agreement, and we have suspended share repurchases to preserve maximum liquidity and flexibility. |
REVENUES
REVENUES | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Revenues by reportable operating segment and by channel were: Fiscal Year 2020 Three Months Ended March 31, 2020 Americas Asia Pacific EMEA Other Businesses Total (in thousands) Channel: Wholesale $ 90,805 $ 45,580 $ 56,711 $ 76 $ 193,172 Retail 34,618 10,187 3,994 — 48,799 E-commerce 22,300 9,693 7,196 — 39,189 Total revenues $ 147,723 $ 65,460 $ 67,901 $ 76 $ 281,160 Fiscal Year 2019 Three Months Ended March 31, 2019 Americas Asia Pacific EMEA Other Businesses Total (in thousands) Channel: Wholesale $ 71,229 $ 68,950 $ 64,491 $ 52 $ 204,722 Retail 38,076 13,903 5,417 — 57,396 E-commerce 19,821 8,194 5,816 — 33,831 Total revenues $ 129,126 $ 91,047 $ 75,724 $ 52 $ 295,949 During the three months ended March 31, 2020 and 2019, we recognized increases of $0.5 million and less than $0.1 million, respectively, to wholesale revenues due to changes in estimates related to products transferred to customers in prior periods. There were no changes to estimates for retail or e-commerce revenues during the three months ended March 31, 2020 or 2019. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
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. Pre-tax share-based compensation expense reported in our condensed consolidated statements of operations was: Three Months Ended 2020 2019 (in thousands) Cost of sales $ 146 $ 88 Selling, general and administrative expenses 3,818 3,546 Total share-based compensation expense $ 3,964 $ 3,634 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense and effective tax rates were: Three Months Ended 2020 2019 (in thousands, except effective tax rate) Income before income taxes $ 18,778 $ 30,329 Income tax expense 7,687 5,619 Effective tax rate 40.9 % 18.5 % The increase in the effective tax rate for the three months ended March 31, 2020, compared to the same period in 2019, was driven primarily by tax expense recorded in profitable jurisdictions and by operating losses in certain jurisdictions where we have determined that it is not more likely than not to realize the associated tax benefits. Our effective income tax rate, for each period presented, also differs from the federal U.S. statutory rate primarily due to differences in income tax rates between U.S. and foreign jurisdictions. There were no significant or unusual discrete tax items during the three months ended March 31, 2020. We had unrecognized tax benefits of $4.3 million and $4.6 million at March 31, 2020 and December 31, 2019, respectively, and we do not expect any significant changes in tax benefits in the next twelve months. Our tax rate is volatile and may increase or decrease with changes in, among other things, the amount of income or loss by jurisdiction, our ability to utilize net operating losses and foreign tax credits, changes in tax laws, and the movement of liabilities established pursuant to accounting guidance for uncertain tax positions as statutes of limitations expire, positions are effectively settled, or when additional information becomes available. There are proposed or pending tax law changes in various jurisdictions and other changes to regulatory environments in countries in which we do business that, if enacted, may have an impact on our effective tax rate. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic and diluted earnings per common share (“EPS”) for the three months ended March 31, 2020 and 2019 were: Three Months Ended 2020 2019 (in thousands, except per share data) Numerator: Net income $ 11,091 $ 24,710 Denominator: Weighted average common shares outstanding - basic 67,931 73,009 Plus: Dilutive effect of stock options and unvested restricted stock units 1,287 1,866 Weighted average common shares outstanding - diluted 69,218 74,875 Net income per common share: Basic $ 0.16 $ 0.34 Diluted $ 0.16 $ 0.33 For the three months ended March 31, 2020, less than 0.1 million options and restricted stock units (“RSUs”) were excluded from the calculation of diluted EPS because the effect was anti-dilutive. For the three months ended March 31, 2019, no options or RSUs were excluded from the calculation of diluted EPS because the effect was anti-dilutive. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Purchase Commitments As of March 31, 2020, we had purchase commitments to third-party manufacturers, primarily for materials and supplies used in the manufacture of our products, for an aggregate of $57.4 million. 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 are currently undergoing, audits by various tax authorities in the United States 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 we may be required to make payments. We cannot determine a range of estimated future payments and have not recorded any liability for indemnities, commitments, and guarantees in the accompanying condensed consolidated balance sheets. See Note 15 — 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 | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION | OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION We have three reportable operating segments based on the geographic nature of our operations: Americas, Asia Pacific, and EMEA. In addition, the ‘Other businesses’ category aggregates insignificant operating segments that do not meet the reportable segment threshold, including corporate and supply chain operations. 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 and other 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: Three Months Ended 2020 2019 (in thousands) Revenues: Americas $ 147,723 $ 129,126 Asia Pacific 65,460 91,047 EMEA 67,901 75,724 Total segment revenues 281,084 295,897 Other businesses 76 52 Total consolidated revenues $ 281,160 $ 295,949 Income from operations: Americas $ 46,662 $ 33,609 Asia Pacific 9,424 26,681 EMEA 17,645 25,044 Total segment income from operations 73,731 85,334 Reconciliation of total segment income from operations to income before income taxes: Other businesses (13,924) (16,337) Unallocated corporate and other (1) (38,995) (36,419) Income from operations 20,812 32,578 Foreign currency losses, net (231) (1,217) Interest income 97 195 Interest expense (1,921) (1,817) Other income, net 21 590 Income before income taxes $ 18,778 $ 30,329 Depreciation and amortization: Americas $ 854 $ 909 Asia Pacific 279 224 EMEA 176 221 Total segment depreciation and amortization 1,309 1,354 Other businesses 2,051 1,323 Unallocated corporate and other (1) 3,547 3,459 Total consolidated depreciation and amortization $ 6,907 $ 6,136 (1) Unallocated corporate and other includes corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, and depreciation and amortization of corporate and other assets not allocated to operating segments. |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 3 Months Ended |
Mar. 31, 2020 | |
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 $2.8 million at current exchange rates, plus interest and penalties, for the period January 2010 through May 2011. We disputed these assessments and asserted defenses to the claims. On February 25, 2015, we received additional assessments totaling 33.3 million BRL, or approximately $6.4 million at current exchange rates, 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 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 us and resulted in an approximately 38% reduction in principal, penalties, and interest, leaving approximately $4.0 million at current exchange rates, plus interest and penalties, at risk for those assessments. The tax authorities have appealed that decision, and we 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 challenge the assessments through the court system, which would likely require the posting of a bond. We have not recorded these items within the condensed 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, as we are able, we estimate reasonably possible losses or a range of reasonably possible losses. As of March 31, 2020, we estimate that reasonably possible losses associated with these claims and other disputes 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 we believe would reasonably have a material adverse impact on our business, financial results, and cash flows. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSIn April 2020, in response to the COVID-19 pandemic, we eliminated select corporate and regional roles, placed certain employees on temporary unpaid leave, and asked some employees to shift to a reduced work day. As a result, we expect to record employee separation benefit costs in the three months ended June 30, 2020. We do not expect these changes to have a material impact on our operations or internal controls. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Unless otherwise noted in this report, any description of the “Company,” “Crocs,” “we,” “us,” or “our” includes Crocs, Inc. and our 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. |
Segment Reporting | 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. See Note 14 — Operating Segments and Geographic Information for additional information. |
Principles of Consolidation | The accompanying unaudited condensed consolidated interim financial statements include our accounts and those of our wholly-owned subsidiaries, and reflect all adjustments which are necessary for a fair statement of the 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”). Such unaudited condensed consolidated interim financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP.These unaudited condensed consolidated interim financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2019 (“Annual Report”), and have been prepared on a consistent basis with the accounting policies described in Note 1 of the Notes to the Audited Consolidated Financial Statements included in our Annual Report. |
Use of Estimates | Use of Estimates U.S. GAAP requires 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, are reasonable based on information available at the time they are made. Additionally, the full impact of COVID-19 is unknown and cannot be reasonably estimated. However, we have made appropriate accounting estimates based on the facts and circumstances available as of the reporting date. To the extent there are differences between these estimates and actual results, our consolidated financial statements may be materially affected. |
Seasonality of Business | Seasonality of Business Due to the seasonal nature of our footwear, which is more heavily focused on styles suitable for warm weather, revenues generated during our fourth quarter, when the northern hemisphere is experiencing cooler weather, are typically less than revenues generated during our first three quarters. Our quarterly results of operations may also fluctuate significantly as a result of a variety of other factors, including the timing of new model introductions, general economic conditions, and consumer confidence. Accordingly, results of operations and cash flows for any one quarter are not necessarily indicative of expected results for any other quarter or for any other year. |
Recent Accounting Pronouncements | New Accounting Pronouncement 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. On January 1, 2020, we adopted this guidance on a modified retrospective basis. Based on the nature of our financial instruments included within the scope of this standard, which are primarily trade and other receivables, the adoption did not have a material effect on our condensed 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. On January 1, 2020, we adopted this guidance on a prospective basis. The adoption did not have a material effect on our condensed consolidated financial statements. New Accounting Pronouncements Not Yet Adopted 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 condensed consolidated financial statements. Reference Rate Reform In March 2020, the FASB issued optional guidance related to reference rate reform, which provides practical expedients for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. This guidance is applicable for our borrowing instruments, which use LIBOR as a reference rate, and is effective immediately, but is only available through December 31, 2022. We are currently evaluating the potential impact of this standard on our condensed consolidated financial statements. Other Pronouncements Other new pronouncements issued but not effective until after March 31, 2020 are not expected to have a material impact on our condensed consolidated financial statements. |
Fair Value of 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 are 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. Impairment expense is reported in ‘Selling, general and administrative expenses’ in our condensed consolidated statements of operations. |
Derivatives Financial Instruments | Our derivative instruments are recorded at fair value as a derivative asset or liability in the condensed 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 condensed consolidated statements of operations. For the condensed 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.’ |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses & Other Liabilities | Amounts reported in ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheets were: March 31, December 31, (in thousands) Accrued compensation and benefits $ 16,464 $ 42,460 Fulfillment, freight, and duties 18,122 20,110 Professional services 10,584 13,361 Accrued rent and occupancy 3,757 4,682 Return liabilities 3,469 7,090 Sales/use and value added taxes payable 5,624 6,843 Royalties payable and deferred revenue 2,913 3,740 Other 10,376 10,391 Total accrued expenses and other liabilities $ 71,309 $ 108,677 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of Rights-of-use Assets and Operating Lease Liabilities | Amounts reported in the condensed consolidated balance sheet were: March 31, 2020 December 31, 2019 (in thousands) Assets: Right-of-use assets $ 193,070 $ 182,228 Liabilities: Current operating lease liabilities $ 50,026 $ 48,585 Long-term operating lease liabilities 152,139 140,148 Total operating lease liabilities $ 202,165 $ 188,733 |
Schedule of Lease Costs and Other Information | Lease-related costs reported within ‘Cost of sales’ and ‘Selling, general and administrative expenses’ in our condensed consolidated statement of operations were: Three Months Ended 2020 2019 (in thousands) Operating lease cost $ 14,994 $ 14,930 Short-term lease cost 1,325 1,360 Variable lease cost 1,500 2,989 Total lease costs $ 17,819 $ 19,279 Other information related to leases, including supplemental cash flow information, consists of: Three Months Ended 2020 2019 (in thousands) Cash paid for operating leases $ 12,293 $ 18,574 Right-of-use assets obtained in exchange for operating lease liabilities (1) 24,790 177,509 (1) In the three months ended March 31, 2019, we implemented ASC 842, Leases. The previously reported amount includes $176.1 million for operating leases existing on January 1, 2019 and $1.4 million for operating leases that commenced in the first quarter of 2019. |
Schedule of Maturities of Operating Lease Liabilities | The maturities of our operating lease liabilities were: As of March 31, 2020 (in thousands) 2020 (remainder of year) $ 42,343 2021 50,196 2022 35,832 2023 26,650 2024 17,013 Thereafter 65,102 Total future minimum lease payments 237,136 Less: imputed interest (34,971) Total operating lease liabilities $ 202,165 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of the Company's Outstanding Borrowings | The fair values of our outstanding borrowings approximate their carrying values at March 31, 2020 and December 31, 2019, based on interest rates currently available to us for similar borrowings and were: March 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Borrowings $ 350,000 $ 350,000 $ 205,000 $ 205,000 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 ‘Accrued expenses and other liabilities’ or ‘Prepaid expenses and other assets’ in the condensed consolidated balance sheets were: March 31, 2020 December 31, 2019 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities (in thousands) Forward foreign currency exchange contracts $ 1,990 $ (2,983) $ 535 $ (424) Netting of counterparty contracts (1,990) 1,990 (424) 424 Foreign currency forward contract derivatives $ — $ (993) $ 111 $ — |
Summary of Derivative Financial Instruments Notional Amounts on Outstanding Positions | The notional amounts of outstanding foreign currency forward exchange contracts presented below report the total U.S. Dollar equivalent position and the net contract fair values for each foreign currency position. March 31, 2020 December 31, 2019 Notional Fair Value Notional Fair Value (in thousands) Euro $ 27,818 $ (82) $ 46,757 $ 36 Singapore Dollar 37,416 (1,730) 31,255 344 Japanese Yen 28,022 (517) 11,823 63 South Korean Won 22,453 458 10,328 (82) British Pound Sterling 4,816 192 9,155 (104) Other currencies 23,219 686 24,969 (146) Total $ 143,744 $ (993) $ 134,287 $ 111 Latest maturity date April 2020 January 2020 |
Schedule of Gains / Losses from Foreign Currency Transactions and Derivative Contracts | Amounts reported in ‘Foreign currency losses, net’ in the condensed consolidated statements of operations include both realized and unrealized gains (losses) from foreign currency transactions and derivative contracts, and were: Three Months Ended 2020 2019 (in thousands) Foreign currency transaction gains (losses) $ 1,027 $ (1,433) Foreign currency forward exchange contracts gains (losses) (1,258) 216 Foreign currency losses, net $ (231) $ (1,217) |
REVOLVING CREDIT FACILITIES A_2
REVOLVING CREDIT FACILITIES AND BANK BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Components Of Company's Borrowings | Our borrowings were as follows: March 31, December 31, (in thousands) Revolving credit facilities $ 350,000 $ 205,000 Less: Current portion of borrowings — — Total long-term borrowings $ 350,000 $ 205,000 |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues Disaggregated by Region and by Channel | Revenues by reportable operating segment and by channel were: Fiscal Year 2020 Three Months Ended March 31, 2020 Americas Asia Pacific EMEA Other Businesses Total (in thousands) Channel: Wholesale $ 90,805 $ 45,580 $ 56,711 $ 76 $ 193,172 Retail 34,618 10,187 3,994 — 48,799 E-commerce 22,300 9,693 7,196 — 39,189 Total revenues $ 147,723 $ 65,460 $ 67,901 $ 76 $ 281,160 Fiscal Year 2019 Three Months Ended March 31, 2019 Americas Asia Pacific EMEA Other Businesses Total (in thousands) Channel: Wholesale $ 71,229 $ 68,950 $ 64,491 $ 52 $ 204,722 Retail 38,076 13,903 5,417 — 57,396 E-commerce 19,821 8,194 5,816 — 33,831 Total revenues $ 129,126 $ 91,047 $ 75,724 $ 52 $ 295,949 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | Pre-tax share-based compensation expense reported in our condensed consolidated statements of operations was: Three Months Ended 2020 2019 (in thousands) Cost of sales $ 146 $ 88 Selling, general and administrative expenses 3,818 3,546 Total share-based compensation expense $ 3,964 $ 3,634 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense and Effective Tax Rates | Income tax expense and effective tax rates were: Three Months Ended 2020 2019 (in thousands, except effective tax rate) Income before income taxes $ 18,778 $ 30,329 Income tax expense 7,687 5,619 Effective tax rate 40.9 % 18.5 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Summary Of Basic And Diluted Earnings Per Share | Basic and diluted earnings per common share (“EPS”) for the three months ended March 31, 2020 and 2019 were: Three Months Ended 2020 2019 (in thousands, except per share data) Numerator: Net income $ 11,091 $ 24,710 Denominator: Weighted average common shares outstanding - basic 67,931 73,009 Plus: Dilutive effect of stock options and unvested restricted stock units 1,287 1,866 Weighted average common shares outstanding - diluted 69,218 74,875 Net income per common share: Basic $ 0.16 $ 0.34 Diluted $ 0.16 $ 0.33 |
OPERATING SEGMENTS AND GEOGRA_2
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Information Related to Reportable Operating Segments | The following tables set forth information related to reportable operating segments: Three Months Ended 2020 2019 (in thousands) Revenues: Americas $ 147,723 $ 129,126 Asia Pacific 65,460 91,047 EMEA 67,901 75,724 Total segment revenues 281,084 295,897 Other businesses 76 52 Total consolidated revenues $ 281,160 $ 295,949 Income from operations: Americas $ 46,662 $ 33,609 Asia Pacific 9,424 26,681 EMEA 17,645 25,044 Total segment income from operations 73,731 85,334 Reconciliation of total segment income from operations to income before income taxes: Other businesses (13,924) (16,337) Unallocated corporate and other (1) (38,995) (36,419) Income from operations 20,812 32,578 Foreign currency losses, net (231) (1,217) Interest income 97 195 Interest expense (1,921) (1,817) Other income, net 21 590 Income before income taxes $ 18,778 $ 30,329 Depreciation and amortization: Americas $ 854 $ 909 Asia Pacific 279 224 EMEA 176 221 Total segment depreciation and amortization 1,309 1,354 Other businesses 2,051 1,323 Unallocated corporate and other (1) 3,547 3,459 Total consolidated depreciation and amortization $ 6,907 $ 6,136 (1) Unallocated corporate and other includes corporate support and administrative functions, costs associated with share-based compensation, research and development, brand marketing, legal, and depreciation and amortization of corporate and other assets not allocated to operating segments. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | Nov. 04, 2019shares | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)affiliate | Nov. 03, 2019shares |
Transactions with Affiliates | ||||
Number of affiliates | affiliate | 3 | |||
Blackstone | ||||
Transactions with Affiliates | ||||
Expenses incurred for services from subsidiaries | $ | $ 0.7 | |||
Blackstone | Legal Costs For Blackstone Affiliates Public Offering Transaction [Member] | ||||
Transactions with Affiliates | ||||
Expenses incurred for services from subsidiaries | $ | $ 0.3 | |||
Blackstone | Blackstone | ||||
Transactions with Affiliates | ||||
Beneficial ownership (shares) | 6,899,027 | |||
Number of shares of common stock sold (shares) | 6,864,545 | |||
Blackstone | Gregg S. Ribatt | ||||
Transactions with Affiliates | ||||
Number of shares of common stock sold (shares) | 34,482 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Schedule Of Accrued Expenses & Other Current Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 16,464 | $ 42,460 |
Fulfillment, freight, and duties | 18,122 | 20,110 |
Professional services | 10,584 | 13,361 |
Accrued rent and occupancy | 3,757 | 4,682 |
Return liabilities | 3,469 | 7,090 |
Sales/use and value added taxes payable | 5,624 | 6,843 |
Royalties payable and deferred revenue | 2,913 | 3,740 |
Other | 10,376 | 10,391 |
Total accrued expenses and other liabilities | $ 71,309 | $ 108,677 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) $ in Thousands, € in Millions | Jan. 01, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020EUR (€) | |
Lessee, Lease, Description [Line Items] | |||||
Right-of-use assets obtained in exchange for operating lease liabilities | [1] | $ 24,790 | $ 177,509 | ||
New Distribution Center In Dordrecht | |||||
Lessee, Lease, Description [Line Items] | |||||
Expected payments on leases not yet commenced | 24,200 | € 21.9 | |||
Expected total capital investments on leases not yet commenced | $ 22,100 | € 20 | |||
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 | $ 1,400 | ||||
[1] | For the three months ended March 31, 2019, we implemented ASC 842, Leases. |
LEASES (Right-of-Use Assets and
LEASES (Right-of-Use Assets and Operating Lease Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Right-of-use assets | $ 193,070 | $ 182,228 |
Current operating lease liabilities | 50,026 | 48,585 |
Long-term operating lease liabilities | 152,139 | 140,148 |
Total operating lease liabilities | $ 202,165 | $ 188,733 |
LEASES (Lease Costs and Other I
LEASES (Lease Costs and Other Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Leases [Abstract] | |||
Operating lease cost | $ 14,994 | $ 14,930 | |
Short-term lease cost | 1,325 | 1,360 | |
Variable lease cost | 1,500 | 2,989 | |
Total lease costs | 17,819 | 19,279 | |
Cash paid for operating leases | 12,293 | 18,574 | |
Right-of-use assets obtained in exchange for operating lease liabilities | [1] | $ 24,790 | $ 177,509 |
Weighted average remaining lease term | 6 years 3 months 18 days | 5 years 8 months 12 days | |
Weighted average discount rate (percent) | 4.70% | 4.70% | |
[1] | For the three months ended March 31, 2019, we implemented ASC 842, Leases. |
LEASES (Maturities of Company's
LEASES (Maturities of Company's Operating Lease Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 (remainder of year) | $ 42,343 | |
2021 | 50,196 | |
2022 | 35,832 | |
2023 | 26,650 | |
2024 | 17,013 | |
Thereafter | 65,102 | |
Total future minimum lease payments | 237,136 | |
Less: imputed interest | (34,971) | |
Total operating lease liabilities | $ 202,165 | $ 188,733 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Assets and Liabilities at Fair Value) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Fair Value Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Company's derivative liability | $ 1,000,000 | ||
Fair value of Company's derivative asset | $ 100,000 | ||
Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Borrowings | 350,000,000 | 205,000,000 | |
Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Borrowings | 350,000,000 | $ 205,000,000 | |
Fair Value | Fair Value Measurements, Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment expense | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Fair Value of Derivative Assets and Liabilities) (Details) - Level 2 - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Foreign Currency Derivatives [Abstract] | ||
Derivative asset, gross forward foreign currency exchange contracts | $ 1,990 | $ 535 |
Derivative asset, netting of counterparty contracts | (1,990) | (424) |
Derivative asset, net foreign currency forward contract derivatives | 0 | 111 |
Derivative liability, gross forward foreign currency exchange contracts | (2,983) | (424) |
Derivative liability, netting of counterparty contracts | 1,990 | 424 |
Derivative liability, net foreign currency forward contract derivatives | $ (993) | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Summary Of Derivative Financial Instruments Notional Amounts On Outstanding Positions) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives - Fair Value [Line Items] | ||
Notional | $ 143,744 | $ 134,287 |
Fair Value | (993) | 111 |
Euro | ||
Derivatives - Fair Value [Line Items] | ||
Notional | 27,818 | 46,757 |
Fair Value | (82) | 36 |
Singapore Dollar | ||
Derivatives - Fair Value [Line Items] | ||
Notional | 37,416 | 31,255 |
Fair Value | (1,730) | 344 |
Japanese Yen | ||
Derivatives - Fair Value [Line Items] | ||
Notional | 28,022 | 11,823 |
Fair Value | (517) | 63 |
South Korean Won | ||
Derivatives - Fair Value [Line Items] | ||
Notional | 22,453 | 10,328 |
Fair Value | 458 | (82) |
British Pound Sterling | ||
Derivatives - Fair Value [Line Items] | ||
Notional | 4,816 | 9,155 |
Fair Value | 192 | (104) |
Other currencies | ||
Derivatives - Fair Value [Line Items] | ||
Notional | 23,219 | 24,969 |
Fair Value | $ 686 | $ (146) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS (Gains / Losses on Foreign Currency Derivatives) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Foreign currency transaction gains (losses) | $ 1,027 | $ (1,433) |
Foreign currency forward exchange contracts gains (losses) | (1,258) | 216 |
Foreign currency losses, net | $ (231) | $ (1,217) |
REVOLVING CREDIT FACILITIES A_3
REVOLVING CREDIT FACILITIES AND BANK BORROWINGS (Schedule of the Company's Borrowings) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Less: Current portion of borrowings | $ 0 | $ 0 |
Total long-term borrowings | 350,000 | 205,000 |
Revolving credit facilities | ||
Debt Instrument [Line Items] | ||
Revolving credit facilities | $ 350,000 | $ 205,000 |
REVOLVING CREDIT FACILITIES A_4
REVOLVING CREDIT FACILITIES AND BANK BORROWINGS (Senior Revolving Credit Facility) (Details) - Revolving credit facilities | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Jul. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Revolving Credit Facilities and Bank Borrowings | |||
Borrowings outstanding | $ 350,000,000 | $ 205,000,000 | |
Senior Revolving Credit Facility | |||
Revolving Credit Facilities and Bank Borrowings | |||
Commitments available under credit facility | $ 450,000,000 | 500,000,000 | |
Increase to the total commitments available under Credit Agreement | 50,000,000 | ||
Borrowing capacity under revolving credit facility | 500,000,000 | ||
Additional borrowing under credit agreement | $ 100,000,000 | ||
Minimum interest coverage ratio | 4 | ||
Minimum borrowing availability for certain acquisitions | $ 40,000,000 | ||
Borrowings outstanding | 350,000,000 | ||
Outstanding letters of credit | 4,600,000 | ||
Available borrowing capacity | $ 145,400,000 | 240,400,000 | |
Senior Revolving Credit Facility | Until September 30, 2020 | |||
Revolving Credit Facilities and Bank Borrowings | |||
Maximum leverage coverage ratio | 4 | ||
Senior Revolving Credit Facility | From December 31, 2020 to December 31, 2021 | |||
Revolving Credit Facilities and Bank Borrowings | |||
Maximum leverage coverage ratio | 3.50 | ||
Senior Revolving Credit Facility | From March 31, 2022 and thereafter | |||
Revolving Credit Facilities and Bank Borrowings | |||
Maximum leverage coverage ratio | 3.25 | ||
Senior Revolving Credit Facility | Federal Funds Open Rate | |||
Revolving Credit Facilities and Bank Borrowings | |||
Margin on variable rate (percent) | 0.25% | ||
Senior Revolving Credit Facility | Daily LIBOR | |||
Revolving Credit Facilities and Bank Borrowings | |||
Margin on variable rate (percent) | 1.00% | ||
Senior Revolving Credit Facility | Base Rate | Minimum | |||
Revolving Credit Facilities and Bank Borrowings | |||
Margin on variable rate (percent) | 0.25% | ||
Senior Revolving Credit Facility | Base Rate | Maximum | |||
Revolving Credit Facilities and Bank Borrowings | |||
Margin on variable rate (percent) | 0.875% | ||
Senior Revolving Credit Facility | LIBOR | Minimum | |||
Revolving Credit Facilities and Bank Borrowings | |||
Margin on variable rate (percent) | 1.25% | ||
Senior Revolving Credit Facility | LIBOR | Maximum | |||
Revolving Credit Facilities and Bank Borrowings | |||
Margin on variable rate (percent) | 1.875% | ||
Asia Pacific Revolving Credit Facility | |||
Revolving Credit Facilities and Bank Borrowings | |||
Borrowings outstanding | $ 0 | 0 | |
Borrowings from credit facility | $ 0 | $ 0 |
COMMON STOCK REPURCHASE PROGR_2
COMMON STOCK REPURCHASE PROGRAM (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Stock repurchased during period (in shares) | 1.6 | 2.1 |
Stock repurchased during period | $ 39.2 | $ 53.5 |
Remaining authorization to repurchase common stock | $ 469.5 |
REVENUES - Disaggregated Revenu
REVENUES - Disaggregated Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 281,160 | $ 295,949 |
Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 193,172 | 204,722 |
Retail | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 48,799 | 57,396 |
E-commerce | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 39,189 | 33,831 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 147,723 | 129,126 |
Americas | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 90,805 | 71,229 |
Americas | Retail | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 34,618 | 38,076 |
Americas | E-commerce | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 22,300 | 19,821 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 65,460 | 91,047 |
Asia Pacific | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 45,580 | 68,950 |
Asia Pacific | Retail | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 10,187 | 13,903 |
Asia Pacific | E-commerce | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 9,693 | 8,194 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 67,901 | 75,724 |
EMEA | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 56,711 | 64,491 |
EMEA | Retail | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,994 | 5,417 |
EMEA | E-commerce | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 7,196 | 5,816 |
Other Businesses | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 76 | 52 |
Other Businesses | Wholesale | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 76 | 52 |
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) - Change in Estimate of Product Transfers - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Wholesale | ||
Revenues [Abstract] | ||
Impact on revenue from changes in estimates | $ 500,000 | $ 100,000 |
Retail | ||
Revenues [Abstract] | ||
Impact on revenue from changes in estimates | 0 | 0 |
E-commerce | ||
Revenues [Abstract] | ||
Impact on revenue from changes in estimates | $ 0 | $ 0 |
SHARE-BASED COMPENSATION (Sched
SHARE-BASED COMPENSATION (Schedule of Share-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 3,964 | $ 3,634 |
Cost of sales | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | 146 | 88 |
Selling, general and administrative expenses | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total share-based compensation expense | $ 3,818 | $ 3,546 |
INCOME TAXES (Summary of Tax Ex
INCOME TAXES (Summary of Tax Expense and Effective Tax Rates) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 18,778 | $ 30,329 |
Income tax expense | $ 7,687 | $ 5,619 |
Effective tax rate | 40.90% | 18.50% |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 4.3 | $ 4.6 |
EARNINGS PER SHARE (Summary Of
EARNINGS PER SHARE (Summary Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income | $ 11,091 | $ 24,710 |
Weighted average common shares outstanding - basic (in shares) | 67,931 | 73,009 |
Plus: dilutive effect of stock options and unvested restricted stock units (in shares) | 1,287 | 1,866 |
Weighted average common shares outstanding - diluted (in shares) | 69,218 | 74,875 |
Basic (in dollars per share) | $ 0.16 | $ 0.34 |
Diluted (in dollars per share) | $ 0.16 | $ 0.33 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Options and RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities not included in the calculation of diluted income per share (in shares) | 100,000 | 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Purchase Commitments) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase commitments with third party manufacturers | $ 57.4 |
OPERATING SEGMENTS AND GEOGRA_3
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | $ 281,160 | $ 295,949 |
Total income from operations | 20,812 | 32,578 |
Foreign currency losses, net | (231) | (1,217) |
Interest income | 97 | 195 |
Interest expense | (1,921) | (1,817) |
Other income, net | 21 | 590 |
Income before income taxes | 18,778 | 30,329 |
Total consolidated depreciation and amortization | 6,907 | 6,136 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 147,723 | 129,126 |
Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 65,460 | 91,047 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 67,901 | 75,724 |
Reportable Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 281,084 | 295,897 |
Total income from operations | 73,731 | 85,334 |
Total consolidated depreciation and amortization | 1,309 | 1,354 |
Reportable Operating Segments | Americas | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 147,723 | 129,126 |
Total income from operations | 46,662 | 33,609 |
Total consolidated depreciation and amortization | 854 | 909 |
Reportable Operating Segments | Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 65,460 | 91,047 |
Total income from operations | 9,424 | 26,681 |
Total consolidated depreciation and amortization | 279 | 224 |
Reportable Operating Segments | EMEA | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 67,901 | 75,724 |
Total income from operations | 17,645 | 25,044 |
Total consolidated depreciation and amortization | 176 | 221 |
Reportable Operating Segments | Other businesses | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 76 | 52 |
Total income from operations | (13,924) | (16,337) |
Total consolidated depreciation and amortization | 2,051 | 1,323 |
Unallocated corporate and other | ||
Segment Reporting Information [Line Items] | ||
Total income from operations | (38,995) | (36,419) |
Total consolidated depreciation and amortization | $ 3,547 | $ 3,459 |
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 ($) | Mar. 31, 2020USD ($) |
Income Tax Examination [Line Items] | ||||||
Amount of loss that could potentially exceed amounts accrued | $ 1.4 | |||||
Brazilian Federal Tax Authorities | ||||||
Income Tax Examination [Line Items] | ||||||
Assessments sought against entity | $ 4 | R$ 33.3 | $ 6.4 | R$ 14.4 | $ 2.8 | |
Reduction in principal, penalties and interest | 38.00% |
Uncategorized Items - crox-2020
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 in the three months ended March 31, 2019 is a result of the prior year adoption of new lease accounting standards. |