Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 15, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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 | 13601 Via Varra | |
Entity Address, City or Town | Broomfield | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80020 | |
City Area Code | 303 | |
Local Phone Number | 848-7000 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | CROX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 62,385,533 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Entity Central Index Key | 0001334036 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 640,773 | $ 331,549 | $ 1,100,871 | $ 612,709 |
Cost of sales | 245,592 | 151,616 | 452,471 | 298,614 |
Gross profit | 395,181 | 179,933 | 648,400 | 314,095 |
Selling, general and administrative expenses | 199,859 | 123,338 | 328,392 | 236,688 |
Income from operations | 195,322 | 56,595 | 320,008 | 77,407 |
Foreign currency losses, net | (117) | (687) | (621) | (918) |
Interest income | 71 | 49 | 98 | 146 |
Interest expense | (4,712) | (2,170) | (6,344) | (4,091) |
Other income, net | 2 | 907 | 13 | 928 |
Income before income taxes | 190,566 | 54,694 | 313,154 | 73,472 |
Income tax expense (benefit) | (128,388) | (1,857) | (104,198) | 5,830 |
Net income | $ 318,954 | $ 56,551 | $ 417,352 | $ 67,642 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 5.02 | $ 0.84 | $ 6.47 | $ 1 |
Diluted (in dollars per share) | $ 4.93 | $ 0.83 | $ 6.35 | $ 0.99 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 63,595 | 67,416 | 64,526 | 67,674 |
Diluted (in shares) | 64,640 | 68,038 | 65,744 | 68,664 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 318,954 | $ 56,551 | $ 417,352 | $ 67,642 | |
Other comprehensive income (loss): | |||||
Foreign currency translation gains (losses), net | 3,442 | 3,543 | (7,186) | (7,823) | |
Reclassification of foreign currency translation loss to income | [1] | 0 | 0 | 0 | (164) |
Total comprehensive income | $ 322,396 | $ 60,094 | $ 410,166 | $ 59,655 | |
[1] | Represents the reclassification of cumulative foreign currency translation adjustment upon liquidation of foreign subsidiaries during the six months ended June 30, 2020. |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 197,853 | $ 135,802 |
Restricted cash - current | 1,469 | 1,542 |
Accounts receivable, net of allowances of $22,508 and $21,093, respectively | 233,262 | 149,847 |
Inventories | 209,089 | 175,121 |
Income taxes receivable | 1,352 | 1,857 |
Other receivables | 14,438 | 10,816 |
Prepaid expenses and other assets | 21,052 | 17,856 |
Total current assets | 678,515 | 492,841 |
Property and equipment, net of accumulated depreciation and amortization of $85,351 and $86,305, respectively | 76,949 | 57,467 |
Intangible assets, net of accumulated amortization of $103,741 and $95,426, respectively | 33,731 | 37,636 |
Goodwill | 1,669 | 1,719 |
Deferred tax assets, net | 515,667 | 350,784 |
Restricted cash | 3,857 | 1,929 |
Right-of-use assets | 175,378 | 167,421 |
Other assets | 8,036 | 8,926 |
Total assets | 1,493,802 | 1,118,723 |
Current liabilities: | ||
Accounts payable | 166,817 | 112,778 |
Accrued expenses and other liabilities | 156,565 | 126,704 |
Income taxes payable | 11,814 | 5,038 |
Current operating lease liabilities | 45,726 | 47,064 |
Total current liabilities | 380,922 | 291,584 |
Long-term income taxes payable | 200,969 | 205,974 |
Long-term borrowings | 386,383 | 180,000 |
Long-term operating lease liabilities | 162,552 | 146,401 |
Other liabilities | 4,212 | 4,131 |
Total liabilities | 1,135,038 | 828,090 |
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, 105.7 million and 105.0 million issued, 62.4 million and 65.9 million outstanding, respectively | 106 | 105 |
Treasury stock, at cost, 43.3 million and 39.1 million shares, respectively | (1,078,857) | (688,849) |
Additional paid-in capital | 530,357 | 482,385 |
Retained earnings | 970,698 | 553,346 |
Accumulated other comprehensive loss | (63,540) | (56,354) |
Total stockholders’ equity | 358,764 | 290,633 |
Total liabilities and stockholders’ equity | $ 1,493,802 | $ 1,118,723 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts receivable, net of allowance | $ 22,508 | $ 21,093 |
Property and equipment, net of accumulated depreciation and amortization | 85,351 | 86,305 |
Intangible assets, net of accumulated amortization | $ 103,741 | $ 95,426 |
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) | 105,700,000 | 105,000,000 |
Common stock outstanding (in shares) | 62,400,000 | 65,900,000 |
Treasury stock (in shares) | 43,300,000 | 39,100,000 |
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 (UNAUDITED) - 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, 2019 | 68,232 | |||||
Beginning balance (in shares) at Dec. 31, 2019 | 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 | 5,942 | 5,942 | ||||
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units (in shares) | 782 | 115 | ||||
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units | (1,459) | $ 1 | $ (2,573) | 1,113 | ||
Repurchases of common stock (in shares) | (1,559) | 1,559 | ||||
Repurchases of common stock | (39,159) | $ (39,159) | 0 | |||
Net income | 67,642 | 67,642 | ||||
Other comprehensive income (loss) | (7,987) | (7,987) | ||||
Ending balance (in shares) at Jun. 30, 2020 | 67,455 | 37,470 | ||||
Ending balance (in shares) at Jun. 30, 2020 | 37,470 | |||||
Ending balance at Jun. 30, 2020 | 156,884 | $ 105 | $ (587,940) | 502,958 | 308,127 | (66,366) |
Beginning balance (in shares) at Mar. 31, 2020 | 67,375 | 37,470 | ||||
Beginning balance at Mar. 31, 2020 | 94,029 | $ 105 | $ (587,940) | 500,197 | 251,576 | (69,909) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 1,978 | 1,978 | ||||
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units (in shares) | 80 | 0 | ||||
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units | 783 | $ 0 | $ 0 | 783 | ||
Repurchases of common stock (in shares) | 0 | 0 | ||||
Repurchases of common stock | 0 | $ 0 | 0 | |||
Net income | 56,551 | 56,551 | ||||
Other comprehensive income (loss) | 3,543 | 3,543 | ||||
Ending balance (in shares) at Jun. 30, 2020 | 67,455 | 37,470 | ||||
Ending balance (in shares) at Jun. 30, 2020 | 37,470 | |||||
Ending balance at Jun. 30, 2020 | 156,884 | $ 105 | $ (587,940) | 502,958 | 308,127 | (66,366) |
Beginning balance (in shares) at Dec. 31, 2020 | 65,856 | |||||
Beginning balance (in shares) at Dec. 31, 2020 | 39,132 | |||||
Beginning balance at Dec. 31, 2020 | 290,633 | $ 105 | $ (688,849) | 482,385 | 553,346 | (56,354) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 19,348 | 19,348 | ||||
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units (in shares) | 528 | 149 | ||||
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units | (11,383) | $ 1 | $ (11,620) | 236 | ||
Repurchases of common stock (in shares) | (4,002) | 4,002 | ||||
Repurchases of common stock | (350,000) | $ (378,388) | 28,388 | |||
Net income | 417,352 | 417,352 | ||||
Other comprehensive income (loss) | (7,186) | (7,186) | ||||
Ending balance (in shares) at Jun. 30, 2021 | 62,382 | 43,283 | ||||
Ending balance (in shares) at Jun. 30, 2021 | 43,283 | |||||
Ending balance at Jun. 30, 2021 | 358,764 | $ 106 | $ (1,078,857) | 530,357 | 970,698 | (63,540) |
Beginning balance (in shares) at Mar. 31, 2021 | 65,225 | 40,383 | ||||
Beginning balance at Mar. 31, 2021 | 326,231 | $ 106 | $ (783,926) | 525,289 | 651,744 | (66,982) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 11,294 | 11,294 | ||||
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units (in shares) | 47 | 10 | ||||
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units | (1,157) | $ 0 | $ (1,158) | 1 | ||
Repurchases of common stock (in shares) | (2,890) | 2,890 | ||||
Repurchases of common stock | (300,000) | $ (293,773) | (6,227) | |||
Net income | 318,954 | 318,954 | ||||
Other comprehensive income (loss) | 3,442 | 3,442 | ||||
Ending balance (in shares) at Jun. 30, 2021 | 62,382 | 43,283 | ||||
Ending balance (in shares) at Jun. 30, 2021 | 43,283 | |||||
Ending balance at Jun. 30, 2021 | $ 358,764 | $ 106 | $ (1,078,857) | $ 530,357 | $ 970,698 | $ (63,540) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 417,352 | $ 67,642 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,749 | 13,499 |
Operating lease cost | 29,758 | 30,213 |
Inventory donations | 641 | 8,821 |
Provision for (recovery of) doubtful accounts, net | (2,556) | 6,507 |
Share-based compensation | 19,348 | 5,942 |
Deferred income taxes | (176,862) | 0 |
Other non-cash items | 836 | 2,029 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (82,621) | (62,146) |
Inventories | (36,099) | 11,240 |
Prepaid expenses and other assets | 4,059 | 1,002 |
Accounts payable, accrued expenses and other liabilities | 75,520 | (15,316) |
Right-of-use assets and operating lease liabilities | (22,759) | (29,166) |
Cash provided by operating activities | 242,366 | 40,267 |
Cash flows from investing activities: | ||
Purchases of property, equipment, and software | (21,329) | (24,328) |
Proceeds from disposal of property and equipment | 6 | 434 |
Other | 0 | (116) |
Cash used in investing activities | (21,323) | (24,010) |
Cash flows from financing activities: | ||
Proceeds from notes issuance | 350,000 | 0 |
Proceeds from bank borrowings | 170,000 | 150,000 |
Repayments of bank borrowings | (305,000) | (80,000) |
Repurchases of common stock | (350,000) | (39,159) |
Repurchases of common stock for tax withholding | (11,619) | (2,573) |
Other | (8,725) | 609 |
Cash provided by (used in) financing activities | (155,344) | 28,877 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (1,793) | (2,360) |
Net change in cash, cash equivalents, and restricted cash | 63,906 | 42,774 |
Cash, cash equivalents, and restricted cash—beginning of period | 139,273 | 112,045 |
Cash, cash equivalents, and restricted cash—end of period | $ 203,179 | $ 154,819 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
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 women, men, 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, 2020 (“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 six months ended June 30, 2021, other than with respect to the new accounting pronouncements adopted as described in Note 2 — Recent Accounting Pronouncements. Reclassifications We have reclassified certain amounts on the condensed consolidated statements of cash flows, Note 9 — Revenues, and Note 14 — Operating Segments and Geographic Information to conform to current period presentation. 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, valuation allowances, 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. To the extent there are differences between these estimates and actual results, our condensed consolidated financial statements may be materially affected. Condensed Consolidated Statements of Cash Flows - Supplemental Schedule of Non-Cash Investing and Financing Activities Six Months Ended June 30, 2021 2020 (in thousands) Accrued purchases of property, equipment, and software $ 6,423 $ 6,041 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS New Accounting Pronouncement 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, intra-period income tax expense allocation exceptions, and interim recognition of enactment of tax laws or rate changes. On January 1, 2021, we adopted this guidance. The adoption did not have a material effect on our condensed consolidated financial statements. New Accounting Pronouncements Not Yet Adopted 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 revolving borrowing instruments, which use LIBOR as a reference rate, and is available for adoption 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 June 30, 2021 are not expected to have a material impact on our condensed consolidated financial statements. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
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: June 30, 2021 December 31, 2020 (in thousands) Accrued compensation and benefits $ 39,240 $ 48,870 Professional services 30,514 18,478 Fulfillment, freight, and duties 25,708 17,868 Sales/use and value added taxes payable 19,949 12,480 Return liabilities 11,500 6,906 Royalties payable and deferred revenue 8,369 6,254 Accrued rent and occupancy 7,885 3,818 Other 13,400 12,030 Total accrued expenses and other liabilities $ 156,565 $ 126,704 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES Right-of-Use Assets and Operating Lease Liabilities Amounts reported in the condensed consolidated balance sheets were: June 30, 2021 December 31, 2020 (in thousands) Assets: Right-of-use assets $ 175,378 $ 167,421 Liabilities: Current operating lease liabilities $ 45,726 $ 47,064 Long-term operating lease liabilities 162,552 146,401 Total operating lease liabilities $ 208,278 $ 193,465 Lease Costs and Other Information Lease-related costs reported within ‘Cost of sales’ and ‘Selling, general and administrative expenses’ in our condensed consolidated statements of operations were: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Operating lease cost $ 14,926 $ 15,219 $ 29,758 $ 30,213 Short-term lease cost 1,963 1,337 3,404 2,662 Variable lease cost 10,659 4,273 14,307 5,773 Total lease costs $ 27,548 $ 20,829 $ 47,469 $ 38,648 Other information related to leases, including supplemental cash flow information, consists of: Six Months Ended June 30, 2021 2020 (in thousands) Cash paid for operating leases $ 31,910 $ 23,587 Right-of-use assets obtained in exchange for operating lease liabilities 43,582 27,586 The weighted average remaining lease term and discount rate related to our lease liabilities as of June 30, 2021 were 7.3 years and 3.9%, respectively. As of June 30, 2020, the weighted average remaining lease term and discount rate related to our lease liabilities were 6.3 years and 4.7%, respectively. Maturities The maturities of our operating lease liabilities were: As of June 30, 2021 (in thousands) 2021 (remainder of year) $ 23,698 2022 46,462 2023 35,576 2024 24,322 2025 18,057 Thereafter 91,823 Total future minimum lease payments 239,938 Less: imputed interest (31,660) Total operating lease liabilities $ 208,278 Leases That Have Not Yet Commenced As of June 30, 2021, we had significant obligations for a lease not yet commenced related to the expansion of our Americas distribution center in Dayton, Ohio. The total contractual commitment related to the lease, with payments expected to begin in the first quarter of 2022 and continue through September 2030, is approximately $31 million. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020. The fair values of our derivative instruments were an immaterial liability at June 30, 2021 and December 31, 2020. See Note 6 — Derivative Financial Instruments for more information. The carrying amounts of our cash, cash equivalents, and current 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. In the six months ended June 30, 2021, we completed the issuance and sale of $350.0 million aggregate principal amount of 4.250% Senior Notes (the “Notes”), as defined and described in more detail in Note 7 — Long-Term Borrowings. The Notes are classified as Level 1 of the fair value hierarchy and are reported in our condensed consolidated balance sheet at face value, less unamortized issuance costs. The carrying and fair values of our revolving credit facilities approximate their carrying values at June 30, 2021 and December 31, 2020 based on interest rates currently available to us for similar borrowings. The carrying value and fair value of our borrowing instruments as of June 30, 2021 and December 31, 2020 were: June 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Senior notes issuance $ 350,000 $ 357,656 $ — $ — Revolving credit facilities 45,000 45,000 180,000 180,000 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2021 | |
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 may 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 June 30, 2021 or December 31, 2020. 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 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 either ‘Accrued expenses and other liabilities’ or ‘Prepaid expenses and other assets’ in the condensed consolidated balance sheets, were: June 30, 2021 December 31, 2020 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities (in thousands) Forward foreign currency exchange contracts $ 871 $ (1,696) $ 794 $ (1,225) Netting of counterparty contracts (871) 871 (794) 794 Foreign currency forward contract derivatives $ — $ (825) $ — $ (431) 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. June 30, 2021 December 31, 2020 Notional Fair Value Notional Fair Value (in thousands) Euro $ 28,296 $ 125 $ 28,851 $ (82) Singapore Dollar 40,603 (438) 24,211 457 Indian Rupee 18,574 (461) 18,937 (134) Japanese Yen 21,074 554 17,447 (240) British Pound Sterling 11,826 (100) 16,134 (182) South Korean Won 12,179 114 3,741 (56) Other currencies 19,753 (619) 9,675 (194) Total $ 152,305 $ (825) $ 118,996 $ (431) Latest maturity date July 2021 January 2021 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Foreign currency transaction gains (losses) $ 506 $ (327) $ (345) $ 700 Foreign currency forward exchange contracts losses (623) (360) (276) (1,618) Foreign currency losses, net $ (117) $ (687) $ (621) $ (918) |
LONG-TERM BORROWINGS
LONG-TERM BORROWINGS | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM BORROWINGS | LONG-TERM BORROWINGS Our borrowings were as follows: Maturity Stated Interest Rate Effective Interest Rate June 30, 2021 December 31, 2020 (in thousands) Notes issuance of $350.0 million 2029 4.250 % 4.64 % $ 350,000 $ — Revolving credit facilities 45,000 180,000 Total face value of long-term borrowings 395,000 180,000 Less: Unamortized issuance costs 8,617 — Current portion of borrowings — — Total long-term borrowings $ 386,383 $ 180,000 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 $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) 3.50 to 1.00 from the quarter ended December 31, 2020 to the quarter ended December 31, 2021, and (ii) 3.25 to 1.00 from the quarter ended 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 June 30, 2021, we were in compliance with all financial covenants under the Credit Agreement. As of June 30, 2021, the total commitments available from the lenders under the Facility were $500.0 million. At June 30, 2021, we had $45.0 million outstanding borrowings and $0.3 million in outstanding letters of credit under the Facility, which reduces amounts available for borrowing under the Facility. As of June 30, 2021 and December 31, 2020, we had $454.7 million and $319.4 million, respectively, of available borrowing capacity under the Facility. Asia Revolving Credit Facilities During the six months ended June 30, 2021, we had two revolving credit facilities in Asia, the revolving credit facility with Citibank (China) Company Limited, Shanghai Branch, which provided up to an equivalent of $5.0 million, and the revolving credit facility with China Merchants Bank Company Limited, Shanghai Branch, which matured in May 2021 and provided up to 30.0 million RMB, or $4.7 million using current exchange rates as of May 2021. We had no borrowings under our Asia revolving facilities during the six months ended June 30, 2021 and year ended December 31, 2020 or borrowings outstanding at June 30, 2021 and December 31, 2020. Senior Notes Issuance On March 12, 2021, the Company completed the issuance and sale of $350.0 million aggregate principal amount of 4.250% Senior Notes due March 15, 2029 (the “Notes”), pursuant to the indenture related thereto (“the Indenture”). Interest on the Notes is payable semi-annually. The Notes rank pari passu in right of payment with all of the Company’s existing and future senior debt, including the Credit Agreement, and are senior in right of payment to any of the Company’s future debt that is, by its term, expressly subordinated in right of payment to the Notes. The Notes are unconditionally guaranteed by each of the Company’s restricted subsidiaries that is a borrower or guarantor under the Credit Agreement and by each of the Company’s wholly-owned restricted subsidiaries that guarantees any debt of the Company or any guarantor under any syndicated credit facility or capital markets debt in an aggregate principal amount in excess of $25.0 million. The Company will have the option to redeem all or any portion of the Notes, at once or over time, at any time on or after March 15, 2024, at a redemption price equal to 100% of the principal amount thereof, plus a premium declining ratably on an annual basis to par and accrued and unpaid interest, if any, to, but excluding, the date of redemption. The Company will also have the option to redeem some or all of the Notes at any time before March 15, 2024 at a redemption price of 100% of the principal amount of the Notes to be redeemed, plus a “make-whole” premium and accrued and unpaid interest, if any, to, but excluding, the date of redemption. In addition, at any time before March 15, 2024, the Company may redeem up to 40% of the aggregate principal amount of the Notes at a redemption price of 104.250% of the principal amount of the Notes with the proceeds from certain equity issuances, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. The Indenture contains covenants that, among other things, limit the ability of the Company and its restricted subsidiaries to incur additional debt or issue certain preferred stock; pay dividends or repurchase or redeem capital stock or make other restricted payments; declare or pay dividends or other payments; incur liens; enter into certain types of transactions with the Company’s affiliates; and consolidate or merge with or into other companies. As of June 30, 2021, we were in compliance with all financial covenants under the Notes. |
COMMON STOCK REPURCHASE PROGRAM
COMMON STOCK REPURCHASE PROGRAM | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
COMMON STOCK REPURCHASE PROGRAM | COMMON STOCK REPURCHASE PROGRAM During the three months ended June 30, 2021, we repurchased 2.9 million shares of our common stock at a cost of $300.0 million, including commissions, under a $300.0 million April 2021 accelerated share repurchase arrangement (“ASR”). Under the ASR, a financial institution delivers shares of our common stock during the purchase period in exchange for an up-front payment. The total number of shares ultimately delivered under the ASR, and therefore the average repurchase price paid per share, is determined based on the volume-weighted average price of our common stock during the purchase period. The purchase period for this ASR ended in June 2021. During the six months ended June 30, 2021, we repurchased 4.0 million shares of our common stock at an aggregate cost of $350.0 million, including commissions. This includes 0.5 million shares received in January 2021 at the conclusion of the purchase period for an accelerated share repurchase agreement we entered into in November 2020. During the three months ended June 30, 2020, we did not repurchase shares of our common stock to preserve maximum liquidity and flexibility as a result of the COVID-19 pandemic. During the six months ended June 30, 2020, we repurchased 1.6 million shares of our common stock at a cost of $39.2 million, including commissions. In April 2021, the Board of Directors (the “Board”) approved a $712.2 million increase to our share repurchase authorization, after which $1.0 billion remained available for future common stock repurchases. As of June 30, 2021, we had remaining authorization to repurchase approximately $700.0 million of our common stock, subject to restrictions under our Notes and Credit Agreement. |
REVENUES
REVENUES | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Revenues by reportable operating segment and by channel were: Second Quarter Three Months Ended June 30, 2021 Americas Asia Pacific EMEA Unallocated Corporate and Other Total (in thousands) Channel: Wholesale $ 168,069 $ 62,268 $ 76,981 $ 9 $ 307,327 Direct-to-consumer (1) 237,611 64,566 31,269 — 333,446 Total revenues $ 405,680 $ 126,834 $ 108,250 $ 9 $ 640,773 Three Months Ended June 30, 2020 Americas Asia Pacific EMEA Unallocated Corporate and Other Total (in thousands) Channel: Wholesale $ 67,428 $ 35,282 $ 42,166 $ 16 $ 144,892 Direct-to-consumer (1) 104,156 58,291 24,210 — 186,657 Total revenues $ 171,584 $ 93,573 $ 66,376 $ 16 $ 331,549 (1) Direct-to-consumer revenues consist of sales generated through our company-operated retail stores (previously our “Retail” channel) and company-operated e-commerce websites and third-party e-commerce marketplaces (previously our “E-commerce” channel). Full Year to Date Six Months Ended June 30, 2021 Americas Asia Pacific EMEA Other Businesses Total (in thousands) Channel: Wholesale $ 312,842 $ 120,891 $ 163,585 $ 48 $ 597,366 Direct-to-consumer (1) 369,247 88,535 45,723 — 503,505 Total revenues $ 682,089 $ 209,426 $ 209,308 $ 48 $ 1,100,871 Six Months Ended June 30, 2020 Americas Asia Pacific EMEA Other Businesses Total (in thousands) Channel: Wholesale $ 158,233 $ 80,863 $ 98,877 $ 92 $ 338,065 Direct-to-consumer (1) 161,075 78,170 35,399 — 274,644 Total revenues $ 319,308 $ 159,033 $ 134,276 $ 92 $ 612,709 (1) Direct-to-consumer revenues consist of sales generated through our company-operated retail stores (previously our “Retail” channel) and company-operated e-commerce websites and third-party e-commerce marketplaces (previously our “E-commerce” channel). During the three and six months ended June 30, 2021, we recognized no changes to estimates for wholesale revenues and no changes to estimates for direct-to-consumer revenues. We recognized immaterial changes during the three months ended June 30, 2020 and an increase of $0.5 million during six months ended June 30, 2020 to wholesale revenues due to changes in estimates related to products transferred to customers in prior period. There were no changes to estimates for direct-to-consumer revenues during the three or six months ended June 30, 2020. There were no material changes in contract liabilities or refund liabilities in the six months ended June 30, 2021 or 2020. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Our share-based compensation awards are issued under the 2020 Equity Incentive Plan (“2020 Plan”) and a predecessor plan, the 2015 Equity Incentive Plan (“2015 Plan”). Any awards that expire or are forfeited under the 2015 Plan become available for issuance under the 2020 Plan. Pre-tax share-based compensation expense reported in our condensed consolidated statements of operations was: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Cost of sales $ 151 $ (107) $ 237 $ 39 Selling, general and administrative expenses 11,143 2,085 19,111 5,903 Total share-based compensation expense $ 11,294 $ 1,978 $ 19,348 $ 5,942 On January 11, 2021, our Board awarded 0.4 million market-condition restricted stock units (“RSUs”) to certain senior executives. For the executives to earn the target number of shares, the 30 trading day average of the daily volume weighted average trading price of the common stock must meet or exceed certain performance hurdles. Any earned shares will also be subject to time vesting. When a performance hurdle is met or exceeded, one third of the earned portion of the RSUs will vest immediately, and the remaining two thirds will be subject to the executive’s continued employment, with one third vesting one year later and the remaining one third vesting two years later, but in no case later than the fourth anniversary of the award, in each case, subject to certain change in control provisions. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense and effective tax rates were: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands, except effective tax rate) Income before income taxes $ 190,566 $ 54,694 $ 313,154 $ 73,472 Income tax expense (benefit) (128,388) (1,857) (104,198) 5,830 Effective tax rate (67.4) % (3.4) % (33.3) % 7.9 % The decrease in the effective tax rate for the three months ended June 30, 2021, compared to the same period in 2020, was driven primarily by the release of valuation allowances. Our effective income tax rate, for each period presented, also differs from the federal U.S. statutory rate primarily due to the release of valuation allowances, as well as differences in income tax rates between U.S. and foreign jurisdictions. There was a $176.9 million discrete tax benefit during the three months ended June 30, 2021 for the release of valuation allowances resulting from the enactment of a tax law change. We had unrecognized tax benefits of $200.2 million and $206.2 million at June 30, 2021 and December 31, 2020, respectively, and we do not expect any significant changes in unrecognized tax benefits in the next twelve months. During the six months ended June 30, 2021, income tax expense decreased $110.0 million compared to the same period in 2020. The effective tax rate for the six months ended June 30, 2021 was (33.3)% compared to an effective tax rate of 7.9% for the same period in 2020, a 41.2% decrease. This decrease in the effective rate was driven primarily by the release of valuation allowances resulting from the enactment of a tax law change. Our effective income tax rate, for each period presented, also differs from the federal U.S. statutory rate primarily due to the release of valuation allowances, as well as differences in income tax rates between U.S. and foreign jurisdictions. 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 that 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. A jurisdiction for which we have historically recorded significant valuation allowances has enacted a favorable change in the tax law related to net operating loss carryforwards during the period. The change in tax law impacts the assessment of valuation allowances in the jurisdiction as the reversal of existing deferred tax assets would generate indefinite carryforward net operating losses instead of losses with a limited carryforward period. The release of the valuation allowance resulting from the tax law change is recorded as a discrete tax benefit of $176.9 million during the three months ended June 30, 2021. We will continue to assess the realizability of our deferred tax assets. 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 | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic and diluted earnings per common share (“EPS”) for the three and six months ended June 30, 2021 and 2020 were: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands, except per share data) Numerator: Net income $ 318,954 $ 56,551 $ 417,352 67,642 Denominator: Weighted average common shares outstanding - basic 63,595 67,416 64,526 67,674 Plus: Dilutive effect of stock options and unvested restricted stock units 1,045 622 1,218 990 Weighted average common shares outstanding - diluted 64,640 68,038 65,744 68,664 Net income per common share: Basic $ 5.02 $ 0.84 $ 6.47 $ 1.00 Diluted $ 4.93 $ 0.83 $ 6.35 $ 0.99 For the three and six months ended June 30, 2021, an aggregate of 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 and six months ended June 30, 2020, an aggregate of less than 0.1 million options and RSUs were excluded from the calculation of diluted EPS because the effect was anti-dilutive. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Purchase Commitments As of June 30, 2021, we had purchase commitments to third-party manufacturers, primarily for materials and supplies used in the manufacture of our products, for an aggregate of $177.5 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 | 6 Months Ended |
Jun. 30, 2021 | |
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. Each of the reportable operating segments derives its revenues from the sale of footwear and accessories to external customers. 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 unallocated corporate and other expenses, as well as inter-segment eliminations. In the first quarter of 2021, certain costs previously reported within ‘Other Businesses’ were shifted to the Americas, Asia Pacific, and EMEA segments, as applicable, to reflect changes in the way management evaluates segment performance, makes operating decisions, and allocates resources. Additionally, any costs remaining in ‘Other Businesses,’ including depreciation and amortization, had been consolidated into ‘Unallocated corporate and other.’ The previously reported amounts for income from operations for the three and six months ended June 30, 2020 have been revised to conform to current period presentation, as shown in the following tables. In the second quarter of 2021, to reflect changes in the way management evaluates segment performance, makes operating decisions, and allocates resources, and as a response to our incremental investments in marketing in line with our growth, certain marketing expenses previously reported within ‘Unallocated corporate and other’ were shifted to the Americas, Asia Pacific, and EMEA segments, as applicable, to better align these investments with segment profitability. The previously reported amounts for income from operations included in the six months ended June 30, 2021 and for the three and six months ended June 30, 2020 have been revised to conform to current period presentation, as shown in the following tables. 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Revenues: Americas $ 405,680 $ 171,584 $ 682,089 $ 319,308 Asia Pacific 126,834 93,573 209,426 159,033 EMEA 108,250 66,376 209,308 134,276 Total segment revenues 640,764 331,533 1,100,823 612,617 Unallocated corporate and other (2) 9 16 48 92 Total consolidated revenues $ 640,773 $ 331,549 $ 1,100,871 $ 612,709 Income from operations: Americas (1) $ 192,781 $ 52,974 $ 308,848 $ 91,191 Asia Pacific (1) 32,016 12,726 54,131 19,193 EMEA (1) 36,787 22,431 73,432 39,831 Total segment income from operations 261,584 88,131 436,411 150,215 Reconciliation of total segment income from operations to income before income taxes: Unallocated corporate and other (1)(2) (66,262) (31,536) (116,403) (72,808) Income from operations 195,322 56,595 320,008 77,407 Foreign currency losses, net (117) (687) (621) (918) Interest income 71 49 98 146 Interest expense (4,712) (2,170) (6,344) (4,091) Other income, net 2 907 13 928 Income before income taxes $ 190,566 $ 54,694 $ 313,154 $ 73,472 Depreciation and amortization: Americas $ 825 $ 896 $ 1,768 $ 1,750 Asia Pacific 325 286 612 565 EMEA 163 163 329 339 Total segment depreciation and amortization 1,313 1,345 2,709 2,654 Unallocated corporate and other (1)(2) 6,382 5,247 13,040 10,845 Total consolidated depreciation and amortization $ 7,695 $ 6,592 $ 15,749 $ 13,499 (1) In the first quarter of 2021, certain costs previously reported within ‘Other Businesses’ were shifted to the Americas, Asia Pacific, and EMEA segments. Additionally, any costs remaining in ‘Other Businesses,’ including depreciation and amortization, have been consolidated into ‘Unallocated corporate and other.’ In the second quarter of 2021, certain marketing expenses previously reported within ‘Unallocated corporate and other’ were shifted to the Americas, Asia Pacific, and EMEA segments. The previously reported amounts for income from operations for the three and six months ended June 30, 2020 have been revised to conform to current period presentation. See the ‘Impacts of segment composition change’ and ‘Impacts of marketing expense allocations’ tables below for more information. (2) Unallocated corporate and other primarily includes corporate support and administrative functions, certain royalty income, 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. Impacts of segment composition change: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (in thousands) Impacts on income from operations: Americas $ (9,343) $ (16,059) Asia Pacific (4) (183) EMEA 2,491 2,691 Total impact on segment income from operations $ (6,856) $ (13,551) Unallocated corporate and other $ 6,856 $ 13,551 Impacts of marketing expense allocations: Three Months Ended March 31, 2021 (in thousands) Impacts on income from operations: Americas $ (2,277) Asia Pacific (1,178) EMEA (468) Total impact on segment income from operations $ (3,923) Unallocated corporate and other $ 3,923 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (in thousands) Impacts on income from operations: Americas $ (1,941) $ (3,670) Asia Pacific (3,588) (6,366) EMEA (413) (858) Total impact on segment income from operations $ (5,942) $ (10,894) Unallocated corporate and other $ 5,942 $ 10,894 |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | LEGAL PROCEEDINGS We were subject 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 $2.9 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 $6.7 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. 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. Taking current rulings into consideration, we estimate the remaining principal for these assessments to be $5.0 million at current exchange rates, plus interest and penalties. Should the Brazilian Tax Authority prevail in these final administrative appeals, 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, we have accrued estimated losses of $0.9 million within ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheet as of June 30, 2021. As we are able, we estimate reasonably possible losses or a range of reasonably possible losses. As of June 30, 2021, we estimated that reasonably possible losses associated with these claims and other disputes could potentially exceed amounts accrued by an immaterial amount. 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. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
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 women, men, 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, 2020 (“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. |
Reclassifications | Reclassifications We have reclassified certain amounts on the condensed consolidated statements of cash flows, Note 9 — Revenues, and Note 14 — Operating Segments and Geographic Information to conform to current period presentation. |
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, valuation allowances, 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. To the extent there are differences between these estimates and actual results, our condensed consolidated financial statements may be materially affected. |
New Accounting Pronouncement Adopted and Not Yet Adopted | New Accounting Pronouncement 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, intra-period income tax expense allocation exceptions, and interim recognition of enactment of tax laws or rate changes. On January 1, 2021, we adopted this guidance. The adoption did not have a material effect on our condensed consolidated financial statements. New Accounting Pronouncements Not Yet Adopted 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 revolving borrowing instruments, which use LIBOR as a reference rate, and is available for adoption 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 June 30, 2021 are not expected to have a material impact on our condensed consolidated financial statements. |
Fair Value of Non-Financial Assets and Liabilities | Non-Financial Assets and LiabilitiesOur non-financial assets, which primarily consist of property and equipment, right-of-use assets, 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 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.’ |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Schedule of Non-Cash Investing and Financing Activities | Condensed Consolidated Statements of Cash Flows - Supplemental Schedule of Non-Cash Investing and Financing Activities Six Months Ended June 30, 2021 2020 (in thousands) Accrued purchases of property, equipment, and software $ 6,423 $ 6,041 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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: June 30, 2021 December 31, 2020 (in thousands) Accrued compensation and benefits $ 39,240 $ 48,870 Professional services 30,514 18,478 Fulfillment, freight, and duties 25,708 17,868 Sales/use and value added taxes payable 19,949 12,480 Return liabilities 11,500 6,906 Royalties payable and deferred revenue 8,369 6,254 Accrued rent and occupancy 7,885 3,818 Other 13,400 12,030 Total accrued expenses and other liabilities $ 156,565 $ 126,704 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Rights-of-Use Assets and Operating Lease Liabilities | Amounts reported in the condensed consolidated balance sheets were: June 30, 2021 December 31, 2020 (in thousands) Assets: Right-of-use assets $ 175,378 $ 167,421 Liabilities: Current operating lease liabilities $ 45,726 $ 47,064 Long-term operating lease liabilities 162,552 146,401 Total operating lease liabilities $ 208,278 $ 193,465 |
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 statements of operations were: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Operating lease cost $ 14,926 $ 15,219 $ 29,758 $ 30,213 Short-term lease cost 1,963 1,337 3,404 2,662 Variable lease cost 10,659 4,273 14,307 5,773 Total lease costs $ 27,548 $ 20,829 $ 47,469 $ 38,648 Other information related to leases, including supplemental cash flow information, consists of: Six Months Ended June 30, 2021 2020 (in thousands) Cash paid for operating leases $ 31,910 $ 23,587 Right-of-use assets obtained in exchange for operating lease liabilities 43,582 27,586 |
Schedule of Maturities of Operating Lease Liabilities | The maturities of our operating lease liabilities were: As of June 30, 2021 (in thousands) 2021 (remainder of year) $ 23,698 2022 46,462 2023 35,576 2024 24,322 2025 18,057 Thereafter 91,823 Total future minimum lease payments 239,938 Less: imputed interest (31,660) Total operating lease liabilities $ 208,278 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of the Company's Outstanding Borrowings | The carrying and fair values of our revolving credit facilities approximate their carrying values at June 30, 2021 and December 31, 2020 based on interest rates currently available to us for similar borrowings. The carrying value and fair value of our borrowing instruments as of June 30, 2021 and December 31, 2020 were: June 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Senior notes issuance $ 350,000 $ 357,656 $ — $ — Revolving credit facilities 45,000 45,000 180,000 180,000 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 ‘Accrued expenses and other liabilities’ or ‘Prepaid expenses and other assets’ in the condensed consolidated balance sheets, were: June 30, 2021 December 31, 2020 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities (in thousands) Forward foreign currency exchange contracts $ 871 $ (1,696) $ 794 $ (1,225) Netting of counterparty contracts (871) 871 (794) 794 Foreign currency forward contract derivatives $ — $ (825) $ — $ (431) |
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. June 30, 2021 December 31, 2020 Notional Fair Value Notional Fair Value (in thousands) Euro $ 28,296 $ 125 $ 28,851 $ (82) Singapore Dollar 40,603 (438) 24,211 457 Indian Rupee 18,574 (461) 18,937 (134) Japanese Yen 21,074 554 17,447 (240) British Pound Sterling 11,826 (100) 16,134 (182) South Korean Won 12,179 114 3,741 (56) Other currencies 19,753 (619) 9,675 (194) Total $ 152,305 $ (825) $ 118,996 $ (431) Latest maturity date July 2021 January 2021 |
Schedule of Gain (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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Foreign currency transaction gains (losses) $ 506 $ (327) $ (345) $ 700 Foreign currency forward exchange contracts losses (623) (360) (276) (1,618) Foreign currency losses, net $ (117) $ (687) $ (621) $ (918) |
LONG-TERM BORROWINGS (Tables)
LONG-TERM BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Components of Company's Borrowings | Our borrowings were as follows: Maturity Stated Interest Rate Effective Interest Rate June 30, 2021 December 31, 2020 (in thousands) Notes issuance of $350.0 million 2029 4.250 % 4.64 % $ 350,000 $ — Revolving credit facilities 45,000 180,000 Total face value of long-term borrowings 395,000 180,000 Less: Unamortized issuance costs 8,617 — Current portion of borrowings — — Total long-term borrowings $ 386,383 $ 180,000 |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues Disaggregated by Region and by Channel | Revenues by reportable operating segment and by channel were: Second Quarter Three Months Ended June 30, 2021 Americas Asia Pacific EMEA Unallocated Corporate and Other Total (in thousands) Channel: Wholesale $ 168,069 $ 62,268 $ 76,981 $ 9 $ 307,327 Direct-to-consumer (1) 237,611 64,566 31,269 — 333,446 Total revenues $ 405,680 $ 126,834 $ 108,250 $ 9 $ 640,773 Three Months Ended June 30, 2020 Americas Asia Pacific EMEA Unallocated Corporate and Other Total (in thousands) Channel: Wholesale $ 67,428 $ 35,282 $ 42,166 $ 16 $ 144,892 Direct-to-consumer (1) 104,156 58,291 24,210 — 186,657 Total revenues $ 171,584 $ 93,573 $ 66,376 $ 16 $ 331,549 (1) Direct-to-consumer revenues consist of sales generated through our company-operated retail stores (previously our “Retail” channel) and company-operated e-commerce websites and third-party e-commerce marketplaces (previously our “E-commerce” channel). Full Year to Date Six Months Ended June 30, 2021 Americas Asia Pacific EMEA Other Businesses Total (in thousands) Channel: Wholesale $ 312,842 $ 120,891 $ 163,585 $ 48 $ 597,366 Direct-to-consumer (1) 369,247 88,535 45,723 — 503,505 Total revenues $ 682,089 $ 209,426 $ 209,308 $ 48 $ 1,100,871 Six Months Ended June 30, 2020 Americas Asia Pacific EMEA Other Businesses Total (in thousands) Channel: Wholesale $ 158,233 $ 80,863 $ 98,877 $ 92 $ 338,065 Direct-to-consumer (1) 161,075 78,170 35,399 — 274,644 Total revenues $ 319,308 $ 159,033 $ 134,276 $ 92 $ 612,709 (1) Direct-to-consumer revenues consist of sales generated through our company-operated retail stores (previously our “Retail” channel) and company-operated e-commerce websites and third-party e-commerce marketplaces (previously our “E-commerce” channel). |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Cost of sales $ 151 $ (107) $ 237 $ 39 Selling, general and administrative expenses 11,143 2,085 19,111 5,903 Total share-based compensation expense $ 11,294 $ 1,978 $ 19,348 $ 5,942 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense and Effective Tax Rates | Income tax expense and effective tax rates were: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands, except effective tax rate) Income before income taxes $ 190,566 $ 54,694 $ 313,154 $ 73,472 Income tax expense (benefit) (128,388) (1,857) (104,198) 5,830 Effective tax rate (67.4) % (3.4) % (33.3) % 7.9 % |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Earnings Per Share | Basic and diluted earnings per common share (“EPS”) for the three and six months ended June 30, 2021 and 2020 were: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands, except per share data) Numerator: Net income $ 318,954 $ 56,551 $ 417,352 67,642 Denominator: Weighted average common shares outstanding - basic 63,595 67,416 64,526 67,674 Plus: Dilutive effect of stock options and unvested restricted stock units 1,045 622 1,218 990 Weighted average common shares outstanding - diluted 64,640 68,038 65,744 68,664 Net income per common share: Basic $ 5.02 $ 0.84 $ 6.47 $ 1.00 Diluted $ 4.93 $ 0.83 $ 6.35 $ 0.99 |
OPERATING SEGMENTS AND GEOGRA_2
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Information Related to Reportable Operating Segments | The following tables set forth information related to reportable operating segments: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Revenues: Americas $ 405,680 $ 171,584 $ 682,089 $ 319,308 Asia Pacific 126,834 93,573 209,426 159,033 EMEA 108,250 66,376 209,308 134,276 Total segment revenues 640,764 331,533 1,100,823 612,617 Unallocated corporate and other (2) 9 16 48 92 Total consolidated revenues $ 640,773 $ 331,549 $ 1,100,871 $ 612,709 Income from operations: Americas (1) $ 192,781 $ 52,974 $ 308,848 $ 91,191 Asia Pacific (1) 32,016 12,726 54,131 19,193 EMEA (1) 36,787 22,431 73,432 39,831 Total segment income from operations 261,584 88,131 436,411 150,215 Reconciliation of total segment income from operations to income before income taxes: Unallocated corporate and other (1)(2) (66,262) (31,536) (116,403) (72,808) Income from operations 195,322 56,595 320,008 77,407 Foreign currency losses, net (117) (687) (621) (918) Interest income 71 49 98 146 Interest expense (4,712) (2,170) (6,344) (4,091) Other income, net 2 907 13 928 Income before income taxes $ 190,566 $ 54,694 $ 313,154 $ 73,472 Depreciation and amortization: Americas $ 825 $ 896 $ 1,768 $ 1,750 Asia Pacific 325 286 612 565 EMEA 163 163 329 339 Total segment depreciation and amortization 1,313 1,345 2,709 2,654 Unallocated corporate and other (1)(2) 6,382 5,247 13,040 10,845 Total consolidated depreciation and amortization $ 7,695 $ 6,592 $ 15,749 $ 13,499 (1) In the first quarter of 2021, certain costs previously reported within ‘Other Businesses’ were shifted to the Americas, Asia Pacific, and EMEA segments. Additionally, any costs remaining in ‘Other Businesses,’ including depreciation and amortization, have been consolidated into ‘Unallocated corporate and other.’ In the second quarter of 2021, certain marketing expenses previously reported within ‘Unallocated corporate and other’ were shifted to the Americas, Asia Pacific, and EMEA segments. The previously reported amounts for income from operations for the three and six months ended June 30, 2020 have been revised to conform to current period presentation. See the ‘Impacts of segment composition change’ and ‘Impacts of marketing expense allocations’ tables below for more information. (2) Unallocated corporate and other primarily includes corporate support and administrative functions, certain royalty income, 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. Impacts of segment composition change: Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (in thousands) Impacts on income from operations: Americas $ (9,343) $ (16,059) Asia Pacific (4) (183) EMEA 2,491 2,691 Total impact on segment income from operations $ (6,856) $ (13,551) Unallocated corporate and other $ 6,856 $ 13,551 Impacts of marketing expense allocations: Three Months Ended March 31, 2021 (in thousands) Impacts on income from operations: Americas $ (2,277) Asia Pacific (1,178) EMEA (468) Total impact on segment income from operations $ (3,923) Unallocated corporate and other $ 3,923 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (in thousands) Impacts on income from operations: Americas $ (1,941) $ (3,670) Asia Pacific (3,588) (6,366) EMEA (413) (858) Total impact on segment income from operations $ (5,942) $ (10,894) Unallocated corporate and other $ 5,942 $ 10,894 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplemental Schedule of Noncash Investing and Financing Activities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | ||
Accrued purchases of property, equipment, and software | $ 6,423 | $ 6,041 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES - Schedule Of Accrued Expenses & Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 39,240 | $ 48,870 |
Professional services | 30,514 | 18,478 |
Fulfillment, freight, and duties | 25,708 | 17,868 |
Sales/use and value added taxes payable | 19,949 | 12,480 |
Return liabilities | 11,500 | 6,906 |
Royalties payable and deferred revenue | 8,369 | 6,254 |
Accrued rent and occupancy | 7,885 | 3,818 |
Other | 13,400 | 12,030 |
Total accrued expenses and other liabilities | $ 156,565 | $ 126,704 |
LEASES - Right-of-Use Assets an
LEASES - Right-of-Use Assets and Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Right-of-use assets | $ 175,378 | $ 167,421 |
Liabilities: | ||
Current operating lease liabilities | 45,726 | 47,064 |
Long-term operating lease liabilities | 162,552 | 146,401 |
Total operating lease liabilities | $ 208,278 | $ 193,465 |
LEASES - Lease Costs and Other
LEASES - Lease Costs and Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 14,926 | $ 15,219 | $ 29,758 | $ 30,213 |
Short-term lease cost | 1,963 | 1,337 | 3,404 | 2,662 |
Variable lease cost | 10,659 | 4,273 | 14,307 | 5,773 |
Total lease costs | $ 27,548 | $ 20,829 | 47,469 | 38,648 |
Cash paid for operating leases | 31,910 | 23,587 | ||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 43,582 | $ 27,586 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Jun. 30, 2020 |
Leases [Abstract] | ||
Weighted average remaining lease term | 7 years 3 months 18 days | 6 years 3 months 18 days |
Weighted average discount rate (percent) | 3.90% | 4.70% |
Expected payments on leases not yet commenced | $ 31 |
LEASES - Maturities of Company'
LEASES - Maturities of Company's Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 (remainder of year) | $ 23,698 | |
2022 | 46,462 | |
2023 | 35,576 | |
2024 | 24,322 | |
2025 | 18,057 | |
Thereafter | 91,823 | |
Total future minimum lease payments | 239,938 | |
Less: imputed interest | (31,660) | |
Total operating lease liabilities | $ 208,278 | $ 193,465 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities at Fair Value (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 12, 2021 | Dec. 31, 2020 | |
4.25% Senior Notes Due March 15, 2029 | Senior Notes | ||||||
Fair Value and Carrying Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Aggregate principal amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | |||
Stated Interest Rate | 4.25% | 4.25% | 4.25% | |||
Carrying Value | Line of Credit | Revolving credit facilities | ||||||
Fair Value and Carrying Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Outstanding borrowings | $ 45,000,000 | $ 45,000,000 | $ 180,000,000 | |||
Carrying Value | 4.25% Senior Notes Due March 15, 2029 | Senior Notes | ||||||
Fair Value and Carrying Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Outstanding borrowings | 350,000,000 | 350,000,000 | 0 | |||
Fair Value | Fair Value Measurements, Nonrecurring | Level 3 | ||||||
Fair Value and Carrying Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impairment expense | 0 | $ 0 | 0 | $ 0 | ||
Fair Value | Line of Credit | Revolving credit facilities | ||||||
Fair Value and Carrying Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Outstanding borrowings | 45,000,000 | 45,000,000 | 180,000,000 | |||
Fair Value | 4.25% Senior Notes Due March 15, 2029 | Senior Notes | ||||||
Fair Value and Carrying Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Outstanding borrowings | $ 357,656,000 | $ 357,656,000 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value of Derivative Assets and Liabilities (Details) - Level 2 - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Foreign Currency Derivatives | ||
Derivative asset, gross forward foreign currency exchange contracts | $ 871 | $ 794 |
Derivative asset, netting of counterparty contracts | (871) | (794) |
Derivative asset, net foreign currency forward contract derivatives | 0 | 0 |
Derivative liability, gross forward foreign currency exchange contracts | (1,696) | (1,225) |
Derivative liability, netting of counterparty contracts | 871 | 794 |
Derivative liability, net foreign currency forward contract derivatives | $ (825) | $ (431) |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Derivative Financial Instruments Notional Amounts on Outstanding Positions (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives - Fair Value [Line Items] | ||
Notional | $ 152,305 | $ 118,996 |
Fair Value | (825) | (431) |
Euro | ||
Derivatives - Fair Value [Line Items] | ||
Notional | 28,296 | 28,851 |
Fair Value | 125 | (82) |
Singapore Dollar | ||
Derivatives - Fair Value [Line Items] | ||
Notional | 40,603 | 24,211 |
Fair Value | (438) | 457 |
Indian Rupee | ||
Derivatives - Fair Value [Line Items] | ||
Notional | 18,574 | 18,937 |
Fair Value | (461) | (134) |
Japanese Yen | ||
Derivatives - Fair Value [Line Items] | ||
Notional | 21,074 | 17,447 |
Fair Value | 554 | (240) |
British Pound Sterling | ||
Derivatives - Fair Value [Line Items] | ||
Notional | 11,826 | 16,134 |
Fair Value | (100) | (182) |
South Korean Won | ||
Derivatives - Fair Value [Line Items] | ||
Notional | 12,179 | 3,741 |
Fair Value | 114 | (56) |
Other currencies | ||
Derivatives - Fair Value [Line Items] | ||
Notional | 19,753 | 9,675 |
Fair Value | $ (619) | $ (194) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Gains / Losses on Foreign Currency Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Foreign currency transaction gains (losses) | $ 506 | $ (327) | $ (345) | $ 700 |
Foreign currency forward exchange contracts losses | (623) | (360) | (276) | (1,618) |
Foreign currency losses, net | $ (117) | $ (687) | $ (621) | $ (918) |
LONG-TERM BORROWINGS - Schedule
LONG-TERM BORROWINGS - Schedule of the Company's Borrowings (Details) - USD ($) | Jun. 30, 2021 | Mar. 12, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Total face value of long-term borrowings | $ 395,000,000 | $ 180,000,000 | |
Unamortized issuance costs | 8,617,000 | 0 | |
Current portion of borrowings | 0 | 0 | |
Total long-term borrowings | 386,383,000 | 180,000,000 | |
Senior Notes | 4.25% Senior Notes Due March 15, 2029 | |||
Debt Instrument [Line Items] | |||
Note issuance cost | $ 350,000,000 | $ 350,000,000 | |
Stated Interest Rate | 4.25% | 4.25% | |
Effective Interest Rate | 4.64% | ||
Total face value of long-term borrowings | $ 350,000,000 | 0 | |
Line of Credit | Revolving credit facilities | |||
Debt Instrument [Line Items] | |||
Total face value of long-term borrowings | $ 45,000,000 | $ 180,000,000 |
LONG-TERM BORROWINGS - Narrativ
LONG-TERM BORROWINGS - Narrative (Details) ¥ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2019USD ($) | Jun. 30, 2021USD ($)facility | Dec. 31, 2020USD ($) | May 31, 2021USD ($) | May 31, 2021CNY (¥) | |
Revolving Credit Facilities and Bank Borrowings | |||||
Number of credit facility | facility | 2 | ||||
Revolving credit facilities | Senior Revolving Credit Facility | |||||
Revolving Credit Facilities and Bank Borrowings | |||||
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 | ||||
Commitments available under credit facility | $ 500,000,000 | ||||
Borrowings outstanding | 45,000,000 | ||||
Outstanding letters of credit | 300,000 | ||||
Available borrowing capacity | 454,700,000 | $ 319,400,000 | |||
Revolving credit facilities | Senior Revolving Credit Facility | From Quarter Ended December 31, 2020 to Quarter Ended December 31, 2021 | |||||
Revolving Credit Facilities and Bank Borrowings | |||||
Maximum leverage coverage ratio | 3.50 | ||||
Revolving credit facilities | Senior Revolving Credit Facility | From Quarter Ended March 31, 2022 and thereafter | |||||
Revolving Credit Facilities and Bank Borrowings | |||||
Maximum leverage coverage ratio | 3.25 | ||||
Revolving credit facilities | Senior Revolving Credit Facility | Federal Funds Open Rate | |||||
Revolving Credit Facilities and Bank Borrowings | |||||
Margin on variable rate (percent) | 0.25% | ||||
Revolving credit facilities | Senior Revolving Credit Facility | Daily LIBOR | |||||
Revolving Credit Facilities and Bank Borrowings | |||||
Margin on variable rate (percent) | 1.00% | ||||
Revolving credit facilities | Senior Revolving Credit Facility | Base Rate | Minimum | |||||
Revolving Credit Facilities and Bank Borrowings | |||||
Margin on variable rate (percent) | 0.25% | ||||
Revolving credit facilities | Senior Revolving Credit Facility | Base Rate | Maximum | |||||
Revolving Credit Facilities and Bank Borrowings | |||||
Margin on variable rate (percent) | 0.875% | ||||
Revolving credit facilities | Senior Revolving Credit Facility | LIBOR | Minimum | |||||
Revolving Credit Facilities and Bank Borrowings | |||||
Margin on variable rate (percent) | 1.25% | ||||
Revolving credit facilities | Senior Revolving Credit Facility | LIBOR | Maximum | |||||
Revolving Credit Facilities and Bank Borrowings | |||||
Margin on variable rate (percent) | 1.875% | ||||
Revolving credit facilities | Citybank Revolving Credit Facility | |||||
Revolving Credit Facilities and Bank Borrowings | |||||
Commitments available under credit facility | 5,000,000 | ||||
Revolving credit facilities | CMBC Revolving Credit Facility | |||||
Revolving Credit Facilities and Bank Borrowings | |||||
Commitments available under credit facility | $ 4,700,000 | ¥ 30 | |||
Revolving credit facilities | Asia Pacific Revolving Credit Facility | |||||
Revolving Credit Facilities and Bank Borrowings | |||||
Borrowings outstanding | 0 | 0 | |||
Borrowings from credit facility | $ 0 | $ 0 |
LONG-TERM BORROWINGS - Senior N
LONG-TERM BORROWINGS - Senior Notes Issuance (Details) - 4.25% Senior Notes Due March 15, 2029 - Senior Notes - USD ($) | Mar. 12, 2021 | Jun. 30, 2021 |
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 350,000,000 | $ 350,000,000 |
Stated Interest Rate | 4.25% | 4.25% |
Excess of principal amount | $ 25,000,000 | |
Debt Instrument, Redemption, Period One | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 100.00% | |
Debt Instrument, Redemption, Period Two | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 100.00% | |
Debt Instrument, Redemption, Period Three | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 104.25% | |
Percentage of principal amount redeemed | 40.00% |
COMMON STOCK REPURCHASE PROGR_2
COMMON STOCK REPURCHASE PROGRAM (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Apr. 30, 2021 | |
Class of Stock [Line Items] | ||||||
Stock repurchased during period (in shares) | 500,000 | 2,900,000 | 0 | 4,000,000 | 1,600,000 | |
Stock repurchased during period | $ 300 | $ 350 | $ 39.2 | |||
Stock repurchase increase in authorized amount | $ 712.2 | |||||
Remaining authorization to repurchase common stock | 700 | $ 700 | $ 1,000 | |||
April 2021 | Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Accelerated share repurchase program | $ 300 |
REVENUES - Disaggregated Revenu
REVENUES - Disaggregated Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 640,773 | $ 331,549 | $ 1,100,871 | $ 612,709 |
Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 307,327 | 144,892 | 597,366 | 338,065 |
Directly-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 333,446 | 186,657 | 503,505 | 274,644 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 405,680 | 171,584 | 682,089 | 319,308 |
Americas | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 168,069 | 67,428 | 312,842 | 158,233 |
Americas | Directly-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 237,611 | 104,156 | 369,247 | 161,075 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 126,834 | 93,573 | 209,426 | 159,033 |
Asia Pacific | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 62,268 | 35,282 | 120,891 | 80,863 |
Asia Pacific | Directly-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 64,566 | 58,291 | 88,535 | 78,170 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 108,250 | 66,376 | 209,308 | 134,276 |
EMEA | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 76,981 | 42,166 | 163,585 | 98,877 |
EMEA | Directly-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 31,269 | 24,210 | 45,723 | 35,399 |
Unallocated Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9 | 16 | ||
Unallocated Corporate and Other | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9 | 16 | ||
Unallocated Corporate and Other | Directly-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 | ||
Other Businesses | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 48 | 92 | ||
Other Businesses | Wholesale | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 48 | 92 | ||
Other Businesses | Directly-to-consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 |
REVENUES - Narrative (Details)
REVENUES - Narrative (Details) - Change in Estimate of Product Transfers - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Wholesale | ||||
Revenue from External Customer | ||||
Increase on revenue from changes in estimates | $ 0 | $ 0 | $ 500,000 | |
Directly-to-consumer | ||||
Revenue from External Customer | ||||
Increase on revenue from changes in estimates | $ 0 | $ 0 | $ 0 | $ 0 |
SHARE-BASED COMPENSATION - Sche
SHARE-BASED COMPENSATION - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 11,294 | $ 1,978 | $ 19,348 | $ 5,942 |
Cost of sales | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 151 | (107) | 237 | 39 |
Selling, general and administrative expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 11,143 | $ 2,085 | $ 19,111 | $ 5,903 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) shares in Millions, $ in Millions | Jan. 11, 2021 | Jun. 30, 2021 |
Share-based Payment Arrangement, Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting rights, percentage | 33.00% | |
Share-based Payment Arrangement, Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting rights, percentage | 33.00% | |
Share-based Payment Arrangement, Tranche Three | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting rights, percentage | 33.00% | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted in period (in shares) | 0.4 | |
Weighted average trading price average trading days | 30 days | |
Grant date fair value | $ 21.9 | |
Unrecognized share-based compensation expense | $ 14.2 |
INCOME TAXES - Summary of Tax E
INCOME TAXES - Summary of Tax Expense and Effective Tax Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 190,566 | $ 54,694 | $ 313,154 | $ 73,472 |
Income tax expense (benefit) | $ (128,388) | $ (1,857) | $ (104,198) | $ 5,830 |
Effective tax rate | (67.40%) | (3.40%) | (33.30%) | 7.90% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Release of valuation allowances in discrete tax benefit | $ 176,900 | ||||
Unrecognized tax benefits | $ 200,200 | $ 200,200 | $ 206,200 | ||
Increase (decreased) in income tax expense | $ (110,000) | ||||
Effective tax rate | (67.40%) | (3.40%) | (33.30%) | 7.90% | |
Increase (decrease) in effective income tax rate | (41.20%) |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||
Net income | $ 318,954 | $ 56,551 | $ 417,352 | $ 67,642 |
Denominator: | ||||
Weighted average common shares outstanding - basic (in shares) | 63,595 | 67,416 | 64,526 | 67,674 |
Plus: dilutive effect of stock options and unvested restricted stock units (in shares) | 1,045 | 622 | 1,218 | 990 |
Weighted average common shares outstanding - diluted (in shares) | 64,640 | 68,038 | 65,744 | 68,664 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 5.02 | $ 0.84 | $ 6.47 | $ 1 |
Diluted (in dollars per share) | $ 4.93 | $ 0.83 | $ 6.35 | $ 0.99 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
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 (less than) (in shares) | 0.1 | 0.1 | 0.1 | 0.1 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Purchase Commitments (Details) $ in Millions | Jun. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase commitments with third party manufacturers | $ 177.5 |
OPERATING SEGMENTS AND GEOGRA_3
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total consolidated revenues | $ 640,773 | $ 331,549 | $ 1,100,871 | $ 612,709 |
Income from operations | 195,322 | 56,595 | 320,008 | 77,407 |
Foreign currency losses, net | (117) | (687) | (621) | (918) |
Interest income | 71 | 49 | 98 | 146 |
Interest expense | (4,712) | (2,170) | (6,344) | (4,091) |
Other income, net | 2 | 907 | 13 | 928 |
Income before income taxes | 190,566 | 54,694 | 313,154 | 73,472 |
Total consolidated depreciation and amortization | 7,695 | 6,592 | 15,749 | 13,499 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenues | 405,680 | 171,584 | 682,089 | 319,308 |
Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenues | 126,834 | 93,573 | 209,426 | 159,033 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenues | 108,250 | 66,376 | 209,308 | 134,276 |
Reportable Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenues | 640,764 | 331,533 | 1,100,823 | 612,617 |
Income from operations | 261,584 | 88,131 | 436,411 | 150,215 |
Total consolidated depreciation and amortization | 1,313 | 1,345 | 2,709 | 2,654 |
Reportable Operating Segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenues | 405,680 | 171,584 | 682,089 | 319,308 |
Income from operations | 192,781 | 52,974 | 308,848 | 91,191 |
Total consolidated depreciation and amortization | 825 | 896 | 1,768 | 1,750 |
Reportable Operating Segments | Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenues | 126,834 | 93,573 | 209,426 | 159,033 |
Income from operations | 32,016 | 12,726 | 54,131 | 19,193 |
Total consolidated depreciation and amortization | 325 | 286 | 612 | 565 |
Reportable Operating Segments | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenues | 108,250 | 66,376 | 209,308 | 134,276 |
Income from operations | 36,787 | 22,431 | 73,432 | 39,831 |
Total consolidated depreciation and amortization | 163 | 163 | 329 | 339 |
Unallocated corporate and other | ||||
Segment Reporting Information [Line Items] | ||||
Total consolidated revenues | 9 | 16 | 48 | 92 |
Income from operations | (66,262) | (31,536) | (116,403) | (72,808) |
Total consolidated depreciation and amortization | $ 6,382 | $ 5,247 | $ 13,040 | $ 10,845 |
OPERATING SEGMENTS AND GEOGRA_5
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION - Impact of Segment Composition Change (Details) - Other Businesses Expense - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||
Impact of Segment Composition Change | $ (6,856) | $ (13,551) |
Reportable Operating Segments | Americas | ||
Segment Reporting Information [Line Items] | ||
Impact of Segment Composition Change | (9,343) | (16,059) |
Reportable Operating Segments | Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Impact of Segment Composition Change | (4) | (183) |
Reportable Operating Segments | EMEA | ||
Segment Reporting Information [Line Items] | ||
Impact of Segment Composition Change | 2,491 | 2,691 |
Unallocated corporate and other | ||
Segment Reporting Information [Line Items] | ||
Impact of Segment Composition Change | $ 6,856 | $ 13,551 |
OPERATING SEGMENTS AND GEOGRA_6
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION - Impact of Marketing Expense Allocations (Details) - Marketing Expense - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | |||
Impact of Marketing Expense Allocations | $ (3,923) | $ (5,942) | $ (10,894) |
Reportable Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Impact of Marketing Expense Allocations | (2,277) | (1,941) | (3,670) |
Reportable Operating Segments | Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Impact of Marketing Expense Allocations | (1,178) | (3,588) | (6,366) |
Reportable Operating Segments | EMEA | |||
Segment Reporting Information [Line Items] | |||
Impact of Marketing Expense Allocations | (468) | (413) | (858) |
Unallocated corporate and other | |||
Segment Reporting Information [Line Items] | |||
Impact of Marketing Expense Allocations | $ 3,923 | $ 5,942 | $ 10,894 |
LEGAL PROCEEDINGS (Details)
LEGAL PROCEEDINGS (Details) R$ in Millions, $ in Millions | Mar. 22, 2018 | Feb. 25, 2015BRL (R$) | Feb. 25, 2015USD ($) | Jan. 13, 2015BRL (R$) | Jan. 13, 2015USD ($) | Jun. 30, 2021USD ($) |
Income Tax Examination [Line Items] | ||||||
Loss contingency, accrual | $ 0.9 | |||||
Brazilian Federal Tax Authorities | ||||||
Income Tax Examination [Line Items] | ||||||
Assessments sought against entity | R$ 33.3 | $ 6.7 | R$ 14.4 | $ 2.9 | $ 5 | |
Reduction in principal, penalties and interest | 38.00% |