Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information[Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 | |
Entity Registrant Name | Crocs, Inc. | |
Entity Central Index Key | 1,334,036 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Common stock outstanding (shares) | 68,279,522 | |
Trading Symbol | CROX |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenues | $ 283,148 | $ 267,907 |
Cost of sales | 143,275 | 134,323 |
Gross profit | 139,873 | 133,584 |
Selling, general and administrative expenses | 113,951 | 118,002 |
Income from operations | 25,922 | 15,582 |
Foreign currency gains, net | 1,071 | 276 |
Interest income | 279 | 150 |
Interest expense | (113) | (184) |
Other income, net | 53 | 124 |
Income before income taxes | 27,212 | 15,948 |
Income tax expense | 10,758 | 4,938 |
Net income | 16,454 | 11,010 |
Dividends on Series A convertible preferred stock | (3,000) | (3,000) |
Dividend equivalents on Series A convertible preferred shares related to redemption value accretion and beneficial conversion feature | (931) | (855) |
Net income attributable to common stockholders | $ 12,523 | $ 7,155 |
Net income per common share: | ||
Basic (in dollars per share) | $ 0.15 | $ 0.08 |
Diluted (in dollars per share) | $ 0.15 | $ 0.08 |
Weighted average common shares outstanding - basic (shares) | 68,705 | 73,810 |
Weighted average common shares outstanding - diluted (shares) | 71,668 | 74,561 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements Of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 16,454 | $ 11,010 |
Other comprehensive income: | ||
Foreign currency translation gain, net | 2,229 | 4,514 |
Total comprehensive income | $ 18,683 | $ 15,524 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 101,953 | $ 172,128 |
Accounts receivable, net of allowances of $30,380 and $31,389, respectively | 169,954 | 83,518 |
Inventories | 148,187 | 130,347 |
Income taxes receivable | 7,781 | 3,652 |
Other receivables | 11,554 | 10,664 |
Restricted cash - current | 2,359 | 2,144 |
Prepaid expenses and other assets | 21,981 | 22,596 |
Total current assets | 463,769 | 425,049 |
Property and equipment, net of accumulated depreciation and amortization of $90,554 and $91,806, respectively | 30,746 | 35,032 |
Intangible assets, net | 53,023 | 56,427 |
Goodwill | 1,734 | 1,688 |
Deferred tax assets, net | 10,097 | 10,174 |
Restricted cash | 2,513 | 2,783 |
Other assets | 11,001 | 12,542 |
Total assets | 572,883 | 543,695 |
Current liabilities: | ||
Accounts payable | 87,751 | 66,381 |
Accrued expenses and other liabilities | 85,448 | 84,446 |
Income taxes payable | 15,142 | 5,515 |
Current portion of borrowings and capital lease obligations | 281 | 676 |
Total current liabilities | 188,622 | 157,018 |
Long-term income taxes payable | 6,195 | 6,081 |
Other liabilities | 11,218 | 12,298 |
Total liabilities | 206,035 | 175,397 |
Commitments and contingencies: | ||
Series A convertible preferred stock, 1.0 million shares authorized, 0.2 million outstanding, liquidation preference $203 million | 183,364 | 182,433 |
Stockholders’ equity: | ||
Preferred stock, par value $0.001 per share, 4.0 million shares authorized, none outstanding | 0 | 0 |
Common stock, par value $0.001 per share, 250 million shares authorized, 95.7 million and 94.8 million issued, 68.3 million and 68.8 million outstanding, respectively | 96 | 95 |
Treasury stock, at cost, 27.4 million and 26.0 million shares, respectively | (355,209) | (334,312) |
Additional paid-in capital | 376,808 | 373,045 |
Retained earnings | 202,954 | 190,431 |
Accumulated other comprehensive loss | (41,165) | (43,394) |
Total stockholders’ equity | 183,484 | 185,865 |
Total liabilities and stockholders’ equity | $ 572,883 | $ 543,695 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowances | $ 30,380 | $ 31,389 |
Accumulated depreciation | $ 90,554 | $ 91,806 |
Series A preferred shares authorized (shares) | 1,000,000 | 1,000,000 |
Series A preferred shares outstanding (shares) | 200,000 | 200,000 |
Series A preferred shares, liquidation preference | $ 203,000 | $ 203,000 |
Preferred shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred shares authorized (shares) | 4,000,000 | 4,000,000 |
Preferred shares outstanding (shares) | 0 | 0 |
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 |
Common shares issued (shares) | 95,700,000 | 94,800,000 |
Common shares outstanding (shares) | 68,300,000 | 68,800,000 |
Treasury stock (shares) | 27,400,000 | 26,000,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 16,454 | $ 11,010 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 7,643 | 8,446 |
Unrealized foreign currency (gain) loss, net | (787) | 856 |
Share-based compensation | 2,674 | 2,611 |
Other non-cash items | 941 | (689) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net of allowances | (86,850) | (66,917) |
Inventories | (20,853) | (28,591) |
Prepaid expenses and other assets | 5,112 | 9,618 |
Accounts payable, accrued expenses and other liabilities | 29,065 | 13,766 |
Cash used in operating activities | (46,601) | (49,890) |
Cash flows from investing activities: | ||
Purchases of property, equipment, and software | (1,668) | (5,410) |
Proceeds from disposal of property and equipment | 16 | 12 |
Cash used in investing activities | (1,652) | (5,398) |
Cash flows from financing activities: | ||
Proceeds from bank borrowings | 0 | 5,500 |
Repayments of bank borrowings and capital lease obligations | (400) | (3,376) |
Dividends—Series A preferred stock | (3,000) | (3,000) |
Repurchases of common stock | (20,061) | 0 |
Other | (692) | (240) |
Cash used in financing activities | (24,153) | (1,116) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 2,176 | (1,389) |
Net change in cash, cash equivalents, and restricted cash | (70,230) | (57,793) |
Cash, cash equivalents, and restricted cash—beginning of period | 177,055 | 152,646 |
Cash, cash equivalents, and restricted cash—end of period | $ 106,825 | $ 94,853 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Unless otherwise noted in this report, any description of “the Company,” “Crocs,” “we,” “us,” or “our” includes Crocs, Inc. and its consolidated subsidiaries within our reportable operating segments and corporate operations. The Company is engaged in the design, development, manufacturing, worldwide marketing, distribution, and sale of casual lifestyle footwear and accessories for men, women, and children. We strive to be the global leader in the sale of molded footwear characterized by functionality, comfort, color, and lightweight design. Our reportable operating segments include: the Americas, operating in North and South America; Asia Pacific, operating throughout Asia, Australia, New Zealand, Africa, and the Middle East; and Europe, operating throughout Western Europe, Eastern Europe, and Russia. The accompanying unaudited condensed consolidated interim financial statements include the Company’s accounts and those of its 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, 2017 (“Annual Report”), and have been prepared on a consistent basis with the accounting policies described in Note 1 of the Notes to the Audited Consolidated Financial Statements included in our Annual Report. Our accounting policies did not change during the three months ended March 31, 2018 , other than for the change in accounting principle described in “Inventories” below and the new accounting pronouncements adopted as described in Note 2 — Recent Accounting Pronouncements . Seasonality of Business Due to the seasonal nature of our footwear, which is more heavily focused on styles suitable for warm weather, revenues generated during our fourth quarter are typically less than revenues generated during our first three quarters, when the northern hemisphere is experiencing warmer weather. Our quarterly results of operations may also fluctuate significantly as a result of a variety of other factors, including the timing of new model introductions, general economic conditions, and consumer confidence. Accordingly, results of operations and cash flows for any one quarter are not necessarily indicative of expected results for any other quarter or for any other year. Transactions with Affiliates The Company receives services from three subsidiaries of Blackstone Capital Partners VI L.P. (“Blackstone”). Blackstone and certain of its permitted transferees currently beneficially own all the outstanding shares of the Company’s Series A Convertible Preferred Stock, which is convertible into approximately 13,793,100 shares, or 16.8% , of the Company’s common stock as of March 31, 2018 . Blackstone also has the right to nominate two representatives to serve on the Company’s Board of Directors. Certain Blackstone subsidiaries provide various services to the Company, including inventory count, cybersecurity and consulting, and workforce management services. The Company paid expenses of $0.1 million related to these services for each of the three months ended March 31, 2018 and 2017 , which are reported in ‘Selling, general and administrative expenses’ in the condensed consolidated statements of operations. Restricted Cash Restricted cash primarily consists of funds to secure certain retail store leases, certain customs requirements, and other contractual arrangements. Inventories Inventories are stated at the lower of cost or net realizable value. Effective January 1, 2018, the Company completed implementation of a new inventory costing system for approximately 95% of its inventories. In connection with the implementation, the Company changed its method of inventory costing from a moving average cost method to a first-in-first-out method. The Company believes this change in accounting principle is preferable because it results in more precision and consistency in global and regional inventory costs, more efficient analysis and better matching of inventory costs with revenues, better matches the physical flow of inventories, and improves comparability with industry peers. The change from the Company’s former inventory cost method did not have a material effect on inventory or cost of sales, and, as a result, prior comparative financial statements have not been restated. As of March 31, 2018 and December 31, 2017 , our finished goods inventories accounted for 97.5% of our consolidated inventories, and the remaining balance consists of raw materials and work-in-process. Marketing Expenses Total marketing expenses inclusive of advertising, production, promotion, and agency expenses were $15.5 million and $12.0 million for the three months ended March 31, 2018 and 2017 , respectively, and are reported in ‘Selling, general and administrative expenses’ in the condensed consolidated statements of operations. Prepaid advertising and promotional endorsement costs of $4.5 million and $7.0 million are included in ‘Prepaid expenses and other assets’ in the condensed consolidated balance sheets at March 31, 2018 and December 31, 2017 , respectively. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS New Accounting Pronouncement Adopted Income Tax Accounting Implications of the Tax Cuts and Jobs Act In March 2018, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance on the income tax accounting implications of the U.S. Tax Cuts and Job Act (“Tax Act”), addressing the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The guidance provides a measurement period for companies to evaluate the impacts of the Tax Act on their financial statements. This measurement period begins in the reporting period that includes the enactment date and ends when an entity has obtained, prepared, and analyzed the information that was needed in order to complete the accounting requirements, and cannot exceed one year. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, we made reasonable estimates of the effects and recorded provisional amounts in our financial statements for the three months ended March 31, 2018 and the year ended December 31, 2017, including provisional estimates for BEAT, GILTI, and Transition Tax. The U.S. Treasury Department, the Internal Revenue Service (“IRS”), and other standard-setting bodies may issue guidance on how the provisions of the Tax Act will be applied or otherwise administered that is different from our interpretation. As we collect and prepare necessary data, and interpret the Tax Act and any additional guidance issued by the IRS or other standard-setting bodies, we may make adjustments to the provisional amounts that could materially affect our financial position and results of operations as well as our effective tax rate in the period in which the adjustments are made. See Note 10 — Income Taxes for more information. Stock Compensation Scope of Modification Accounting In May 2017, the FASB issued authoritative guidance intended to clarify those changes to terms and conditions of stock-based compensation awards that are required to be accounted for as modifications of existing stock-based awards. The Company adopted this guidance as of January 1, 2018. The adoption did not have an impact on our consolidated financial position or results of operations. Clarifying the Definition of a Business In January 2017, the FASB issued authoritative guidance intended to clarify the definition of a business, for purposes of determining whether a business has been acquired or sold, and consequently whether transactions should be accounted for as acquisitions or disposals of a business or as acquisitions or disposals of assets. The Company adopted this guidance as of January 1, 2018. The adoption did not have an impact on our consolidated financial position or results of operations. Statement of Cash Flows - Classification and Change in Restricted Cash In August 2016, the FASB issued authoritative guidance intended to clarify how entities should classify certain cash receipts and cash payments in the statement of cash flows. In November 2016, the FASB issued additional guidance requiring that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts reported in the statement of cash flows. The guidance is applied retrospectively to all periods presented and is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. The Company adopted this guidance as of January 1, 2018. As a result of the adoption, the Company changed the presentation in its statements of cash flows for all periods presented. Prepaid Stored-Value Products In March 2016, the FASB issued guidance related to the recognition of breakage for certain prepaid stored-value products. The standard is effective for annual periods (including interim periods) beginning after December 15, 2017. The Company adopted this guidance as of January 1, 2018. The adoption did not have a significant impact on our consolidated financial position or results of operations. Revenue Recognition In May 2014, the FASB issued authoritative guidance related to revenue recognition from contracts with customers. On January 1, 2018, the Company adopted the guidance using the modified retrospective method. The comparative information presented in the condensed consolidated financial statements was not restated and is reported under the accounting standards in effect for the periods presented. The adoption of this guidance did not have, and is not expected to have, a significant impact on our reported revenues, gross margins or income from operations. Substantially all of the Company’s revenues are recognized when control of product passes to customers when the products are shipped or delivered. Effective January 1, 2018, the Company changed its balance sheet presentation for expected product returns by reporting a product return asset for the right to receive returned products and a returns liability for amounts expected to be refunded to customers as a result of product returns. The product return asset is reported within ‘Prepaid expenses and other assets’ in the condensed consolidated balance sheet. The returns liability and payments received from customers for future delivery of products are reported within ‘Accrued liabilities and other expenses’ in the condensed consolidated balance sheet. The Company elected to account for shipping and handling costs associated with outbound freight after control of product passes to customers as fulfillment costs, which are expensed as incurred and included in ‘Cost of sales’ in our condensed consolidated statements of operations. There is no change to the Company’s comparative reporting of shipping and handling costs as a result of adoption. The Company elected to expense incremental costs to obtain customer contracts, consisting primarily of commission incentives, when incurred and reports these costs within ‘Selling, general and administrative expenses’ in its condensed consolidated statement of operations. There is no change to the Company’s comparative reporting of incremental costs to obtain customer contracts as a result of adoption. The impact of adoption on the January 1, 2018 consolidated balance sheet was: December 31, 2017 Impact of Adoption (1) January 1, 2018 (in thousands) Assets: Accounts receivable, net $ 83,518 $ 1,801 $ 85,319 Prepaid expenses and other assets 22,596 1,555 24,151 Liabilities: Accrued expenses and other liabilities 84,446 3,356 87,802 (1) Prior to adoption, product return assets and return liabilities were reported within ‘Accounts receivable, net’, within the allowance for doubtful accounts. As of the adoption date, the product return assets were reclassified and reported as a component of ‘Prepaid expenses and other assets’, and return liabilities were reclassified to ‘Accrued expenses and other liabilities’ in the Company’s condensed consolidated balance sheet. The impact of the new revenue recognition guidance on our condensed consolidated balance sheet as of March 31, 2018 was: March 31, 2018 Balances Without Adoption Effects of New Guidance (1) As Reported (in thousands) Assets: Accounts receivable, net $ 165,238 $ 4,716 $ 169,954 Prepaid expenses and other assets 18,937 3,044 21,981 Liabilities: Accrued expenses and other liabilities 77,688 7,760 85,448 (1) The new revenue recognition guidance requires comparative disclosures of the effects of the new guidance on the Company’s condensed consolidated financial statements for all interim periods during the year of adoption. The new guidance did not have a significant effect on the Company’s condensed consolidated statement of operations for the three months ended March 31, 2018 . See Note 8 — Revenues for additional disclosures. New Accounting Pronouncements Not Yet Adopted Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued authoritative guidance that permits reclassification of the income tax effects of the Tax Act on other accumulated comprehensive income (“AOCI”) to retained earnings. This guidance may be adopted retrospectively to each period (or periods) in which the income tax effects of the Tax Act related to items remaining in AOCI are recognized, or at the beginning of the period of adoption. The guidance becomes effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. The Company does not expect adoption of this standard will have a significant impact on the Company’s consolidated financial statements. Leases In February 2016, the FASB issued authoritative guidance intended to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability, measured on a discounted basis, at the commencement date for all leases with terms greater than twelve months. Additionally, this guidance will require disclosures to help investors and other financial statement users to better understand the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. The guidance will be applied under a modified retrospective transition approach. The guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. The Company will adopt this guidance effective January 1, 2019. In July 2017, the Company established an implementation team and engaged external advisers and solution providers to develop a multi-phase plan to assess the Company’s leasing arrangements, as well as any changes to accounting policies, processes or systems necessary to adopt the requirements of the new standard. The Company has entered into agreements to procure software and services for the adoption and has begun assessments of its lease agreements, system capabilities and requirements. The Company is evaluating the full impact this guidance will have on its consolidated financial statements, and expects that adoption will result in significant increases in lease-related assets and liabilities on its consolidated balance sheet. Other Pronouncements Other new pronouncements issued but not effective until after March 31, 2018 are not expected to have a material impact on the Company’s condensed consolidated financial statements. |
Accrued Expenses And Other Liab
Accrued Expenses And Other Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses And Other Liabilities | ACCRUED EXPENSES AND OTHER LIABILITIES Amounts reported in ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheets were: March 31, December 31, (in thousands) Accrued compensation and benefits $ 21,960 $ 34,955 Professional services 10,082 10,835 Accrued rent and occupancy 8,907 8,535 Fulfillment, freight, and duties 13,311 6,921 Royalties payable and deferred revenue 5,822 6,193 Sales/use and value added taxes payable 5,623 3,509 Return liabilities (1) 7,760 — Other (2) 11,983 13,498 Total accrued expenses and other liabilities $ 85,448 $ 84,446 (1) Return liabilities are presented within ‘Accrued expenses and other liabilities’ upon adoption of new authoritative guidance on revenue recognition effective January 1, 2018, as described in Note 2 — Recent Accounting Pronouncements . (2) Includes current liabilities of $3.0 million related to Series A preferred stock dividends at both March 31, 2018 and December 31, 2017 . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements All of the Company’s derivative instruments are classified as Level 2 and are reported in the condensed consolidated balance sheets within ‘Accrued expenses and other liabilities’ at March 31, 2018 and December 31, 2017 . The fair values of the Company’s derivative instruments were liabilities of $0.1 million and $0.4 million at March 31, 2018 and December 31, 2017 , respectively. See Note 5 — Derivative Financial Instruments for more information. The carrying amounts of the Company’s cash, cash equivalents and restricted cash, accounts receivable, accounts payable, and current accrued expenses and other liabilities approximate their fair value as recorded due to the short-term maturity of these instruments. The Company’s borrowing instruments are recorded at their carrying values in the condensed consolidated balance sheets, which may differ from their respective fair values. The fair values of the Company’s outstanding notes payable approximate their carrying values at March 31, 2018 and December 31, 2017 , based on interest rates currently available to the Company for similar borrowings. March 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Borrowings and capital lease obligations $ 309 $ 309 $ 706 $ 706 Non-Financial Assets and Liabilities The Company’s non-financial assets, which primarily consist of property and equipment, goodwill, and other intangible assets, are not required to be carried at fair value on a recurring basis and are reported at carrying value. The fair values of these assets are determined based on Level 3 measurements, including estimates of the amount and timing of future cash flows based upon historical experience, expected market conditions, and management’s plans. Impairment expense is reported in ‘Selling, general and administrative expenses’ in the Company’s condensed consolidated statements of operations. During the three months ended March 31, 2018 , the Company recorded non-cash impairment expenses of $0.6 million and $0.9 million , respectively, to reduce the carrying values of certain retail store assets in the Asia Pacific segment and certain supply chain assets, included in ‘Other businesses,’ to their estimated fair values. The Company did not record impairment in the three months ended March 31, 2017. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company transacts business in various foreign countries and is therefore exposed to foreign currency exchange rate risk that impacts the reported U.S. Dollar amounts of revenues, costs, 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, the Company enters into forward contracts to buy and sell foreign currency. By policy, the Company does not enter into these contracts for trading purposes or speculation. Counterparty default risk is considered low because the forward contracts that the Company enters into are over-the-counter instruments transacted with highly-rated financial institutions. The Company was not required to and did not post collateral as of March 31, 2018 or December 31, 2017 . The Company’s derivative instruments are recorded at fair value as a derivative asset or liability in the condensed consolidated balance sheets. The Company reports derivative instruments with the same counterparty on a net basis when a master netting arrangement is in place. Changes in fair value are recognized within ‘Foreign currency gains, net’ in the condensed consolidated statements of operations. For the condensed consolidated statements of cash flows, the Company classifies cash flows from derivative instruments at settlement in the same category as the cash flows from the related hedged items within ‘Cash provided by (used in) operating activities.’ Results of Derivative Activities The fair values of derivative assets and liabilities, net, all of which are classified as Level 2 and are reported within either ‘Prepaid expenses and other assets’ or ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheets, were: March 31, 2018 December 31, 2017 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities (in thousands) Forward foreign currency exchange contracts $ 1,346 $ (1,469 ) $ 1,241 $ (1,647 ) Netting of counterparty contracts (1,346 ) 1,346 (1,241 ) 1,241 Foreign currency forward contract derivatives $ — $ (123 ) $ — $ (406 ) The notional amounts of outstanding foreign currency forward exchange contracts presented below report the total U.S. Dollar equivalent position and the net contract fair values for each foreign currency position. March 31, 2018 December 31, 2017 Notional Fair Value Notional Fair Value (in thousands) Singapore Dollar $ 45,297 $ (7 ) $ 73,455 $ 364 Euro 46,410 39 37,718 (122 ) Japanese Yen 38,076 (1,015 ) 30,688 (89 ) South Korean Won 17,202 (182 ) 15,888 (134 ) British Pound Sterling 11,023 — 13,233 80 Other currencies 68,094 1,042 53,698 (505 ) Total $ 226,102 $ (123 ) $ 224,680 $ (406 ) Latest maturity date April 2018 January 2018 Amounts reported in ‘Foreign currency gains, 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 March 31, 2018 2017 (in thousands) Foreign currency transaction gains $ 1,051 $ 3,211 Foreign currency forward exchange contracts gains (losses) 20 (2,935 ) Foreign currency gains, net $ 1,071 $ 276 |
Revolving Credit Facility and B
Revolving Credit Facility and Bank Borrowings | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility and Bank Borrowings | REVOLVING CREDIT FACILITIES AND BANK BORROWINGS The Company’s borrowings consisted of: March 31, December 31, (in thousands) Notes payable $ 266 $ 662 Capital lease obligations 43 44 Total borrowings and capital lease obligations 309 706 Less: Current portion of borrowings and capital lease obligations 281 676 Total long-term capital lease obligations $ 28 $ 30 Senior Revolving Credit Facility In December 2011, the Company entered into a revolving credit facility (“the Facility”), pursuant to an Amended and Restated Credit Agreement (as amended, the “Credit Agreement”), with the lenders named therein and PNC Bank, National Association (“PNC”), as a lender and administrative agent for the lenders. The Credit Agreement, as amended, contains certain covenants that restrict certain actions by the Company, including limitations on: (i) stock repurchases to $100.0 million per year, subject to certain restrictions; and (ii) capital expenditures and commitments to $50.0 million per year. The Credit Agreement also permits intercompany loans of up to $375.0 million and requires the Company to meet certain financial covenant ratios that become effective when average outstanding borrowings under the Credit Agreement, including letters of credit, exceed the lesser of $40.0 million or 40% of the total commitments during certain periods or if the outstanding borrowings exceed the borrowing base. If the financial covenant ratios are in effect, the Company must maintain a minimum fixed charge coverage ratio of 1.10 to 1.00, and a maximum leverage ratio of 2.00 to 1.00. As of March 31, 2018 , the Company was in compliance with all financial covenants. As of March 31, 2018 , the total commitments available from the lenders under the Facility were $100.0 million . At March 31, 2018 , the Company had no outstanding borrowings and $ 0.6 million in outstanding letters of credit under the Facility, which reduces amounts available for borrowing under the Facility. As of March 31, 2018 and December 31, 2017 , the Company had $ 99.4 million of available borrowing capacity under the Facility. Asia Revolving Credit Facilities The Company’s revolving credit facility agreement with HSBC Bank (China) Company Limited, Shanghai Branch (“HSBC”), or the “HSBC Facility,” provides the Company uncommitted dual currency revolving loan facilities of up to 40.0 million Chinese Renminbi (“RMB”), or $6.4 million , with a combined facility limit of RMB 60.0 million , or $9.6 million . As of March 31, 2018 and December 31, 2017 , borrowings under the HSBC Facility remained suspended at the discretion of HSBC. The Company’s revolving credit facility agreement with China Merchants Bank Company Limited, Shanghai Branch (the “CMBC Facility”), provides the Company a revolving loan facility of up to 30.0 million RMB, or $4.8 million , subject to consent by the lender. The CMBC Facility will mature in January 2019 . The CMBC Facility may be canceled or suspended at any time by either party. As of March 31, 2018 , there were no borrowings outstanding on this credit facility. Notes Payable Notes payable incur interest at fixed rates ranging from 1.95% to 2.83% . Maturities The maturities of the Company’s debt and capital lease obligations were: As of March 31, 2018 (in thousands) 2018 (remainder of year) $ 277 2019 14 2020 12 2021 6 Total principal debt maturities and capital lease obligations 309 Less: current portion 281 Non-current portion $ 28 |
Common Stock Repurchase Program
Common Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Equity | COMMON STOCK REPURCHASE PROGRAM For the three months ended March 31, 2018 , the Company repurchased 1.4 million shares of its common stock at a cost of $20.1 million , including commissions. During the three months ended March 31, 2017 , the Company did not repurchase any of its common stock. As of March 31, 2018 , the Company had remaining authorization to repurchase approximately $198.8 million of its common stock, subject to restrictions under its Credit Agreement. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES The Company adopted authoritative guidance related to the recognition of revenue from contracts with customers effective January 1, 2018 using the modified retrospective method. The comparative information presented in the condensed consolidated financial statements was not restated and is reported under the accounting standards in effect for the periods presented. See ‘Revenue Recognition’ in Note 2 — Recent Accounting Pronouncements for a discussion of the significant changes resulting from adoption of the guidance. The adoption of the guidance did not have a significant impact on revenues. Revenues by reportable operating segment and by channel were: Three Months Ended March 31, 2018 Americas Asia Pacific Europe Other Businesses Total (in thousands) Wholesale $ 72,674 $ 71,733 $ 49,877 $ 313 $ 194,597 Retail 34,716 17,614 7,176 — 59,506 E-commerce 16,440 7,815 4,790 — 29,045 Total revenues $ 123,830 $ 97,162 $ 61,843 $ 313 $ 283,148 Revenues are recognized in the amount expected to be received in exchange when control of the products transfers to customers, and excludes various forms of promotions, which range from contractually-fixed percentage price reductions to sales returns, discounts, rebates, and other incentives that may vary in amount and must be estimated. Variable amounts are estimated based on an analysis of historical experience and adjusted as better estimates become available. During the three months ended March 31, 2018 , the Company recognized an increase of $0.8 million to wholesale revenues due to changes in estimates related to products transferred to customers in prior periods. There were no changes to estimates in retail and e-commerce channels during the three months ended March 31, 2018 . The Company elected to exclude from revenues taxes assessed by governmental authorities, including value-added and other sales-related taxes, that are imposed on and concurrent with revenue-producing activities, and as a result there is no change in presentation from prior comparative periods. The following is a description of our principal revenue-generating activities by distribution channel. The Company has three reportable operating segments and sells its products using three primary distribution channels. For more detailed information about reportable operating segments, see ‘ Note 13 — Operating Segments and Geographic Information ’. Wholesale Channel For the majority of wholesale customers, control transfers and revenues are recognized when the product is shipped or delivered from a manufacturing facility or distribution center to the wholesale customer. In certain cases, control of the product transfers and revenues are recognized when the customer receives the product at the designated delivery point. For certain customers, primarily in the Asia Pacific region, cash payment from customers is required in advance of delivery and revenues are recognized upon the later of cash receipt or delivery of the product. For a small number of customers in the Asia Pacific region, products are sold on consignment and revenues are recognized on a sell-through basis. Wholesale customers are invoiced when products are shipped or delivered. The Company has arrangements that grant certain wholesale customers exclusive licenses, concurrent with the terms of the related distribution agreements, to use the Company’s intellectual property in exchange for a sales-based royalty. Sales-based royalty revenues are recognized over the terms of the related license agreements as sales are made by the wholesalers. Retail Channel The Company transfers control of products and recognizes revenues at retail stores at the point of sale, in exchange for cash or other payment, primarily debit or credit card. A portion of the transaction price charged to our customers is variable, primarily due to promotional discounts or allowances, and terms that permit retail customers to exchange or return products for a full refund within a limited period of time. When recognizing revenues, the amount of revenues associated with expected sales returns is estimated based on historical experience, and adjustments to our estimates are made when the most likely amount of consideration we expect to receive changes. E-commerce Channel In the e-commerce channel, the Company transfers control and recognizes revenues when the product is shipped from the distribution centers. Payment from customers is primarily through debit and credit card and is made at the time the customer order is shipped. Similar to the retail channel, a portion of the amount of revenue is variable, primarily due to sales returns, discounts, and other promotional allowances offered to our customers. When recognizing revenues, the amount of revenues associated with expected sales returns is estimated based on historical experience, and adjustments are made when the most likely amount of consideration changes. Historically, the amount of revenues associated with product returns in the e-commerce channel has been higher than the retail channel. Contract Liabilities Contract liabilities consist of advance cash deposits received from wholesale customers to secure product orders in connection with seasonal selling seasons, and payments received in advance of delivery. As products are shipped and control transfers, the Company recognizes the deferred revenue in ‘Revenues’ in the condensed consolidated statement of operations. At January 1 and March 31, 2018 , $1.3 million and $2.1 million , respectively, of deferred revenues associated with advance customer deposits were reported in ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheets. Deferred revenues of $0.8 million were recognized in revenues during the three months ended March 31, 2018 . The remainder of deferred revenues at March 31, 2018 are expected to be recognized in revenues during the second quarter of 2018 as products are shipped or delivered. Refund Liabilities Refund liabilities, primarily associated with product sales returns, retrospective volume rebates, and early payment discounts are estimated based on an analysis of historical experience, and adjustments to revenues made when the most likely amount of consideration expected changes. At January 1 and March 31, 2018 , $3.4 million and $7.8 million , respectively, of refund liabilities, primarily associated with product returns, were reported in ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheet. |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | SHARE-BASED COMPENSATION The Company’s share-based compensation awards are issued under the 2015 Equity Incentive Plan (“2015 Plan”) and two predecessor plans, the 2005 Equity Incentive Plan, and the 2007 Equity Incentive Plan (the “2007 Plan”). Any awards that expire or are forfeited under the 2007 Plan become available for issuance under the 2015 Plan. As of March 31, 2018 , 2.2 million shares of common stock remained available for future issuance under all plans, subject to adjustment for future stock splits, stock dividends, and similar changes in capitalization. Refer to Notes 1 and 10 of the Company’s Annual Report on Form 10-K for a detailed description of the Company’s share-based compensation awards, including information related to grant date fair value, vesting terms, performance, and other conditions. Share-Based Compensation Expense Pre-tax share-based compensation expense reported in the Company’s condensed consolidated statements of operations was: Three Months Ended March 31, 2018 2017 (in thousands) Cost of sales $ 79 $ 89 Selling, general and administrative expenses 2,595 2,522 Total share-based compensation expense $ 2,674 $ 2,611 Stock Option Activity Stock option activity during the three months ended March 31, 2018 was: Number of Options (in thousands) Outstanding December 31, 2017 541 Granted — Exercised (26 ) Forfeited or expired (11 ) Outstanding March 31, 2018 504 As of March 31, 2018 , the Company had $0.4 million of total unrecognized share-based compensation expense related to unvested options, which is expected to be amortized over the remaining weighted average period of 2.06 years. Restricted Stock Awards and Restricted Stock Units Activity The Company grants time-based Restricted Stock Awards (“RSAs”) as well as time-based and performance-based Restricted Stock Units (“RSUs”). RSA and RSU activity during the three months ended March 31, 2018 was: Restricted Stock Awards Restricted Stock Units Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value (in thousands, except fair value data) Unvested at December 31, 2017 17 $ 6.84 3,791 $ 7.99 Granted — — 1,137 14.11 Vested (8 ) 6.84 (919 ) 8.28 Forfeited — — (761 ) 6.96 Unvested at March 31, 2018 9 $ 6.84 3,248 $ 10.64 As of March 31, 2018 , unrecognized share-based compensation expense for RSAs was less than $0.1 million , which is expected to amortize over a remaining weighted average period of 0.18 years. RSUs vested during the three months ended March 31, 2018 consisted of 0.7 million time-based awards and 0.3 million performance-based awards. As of March 31, 2018 , unrecognized share-based compensation expenses for time-based and performance-based awards were $12.6 million and $8.2 million , respectively, and are expected to amortize over remaining weighted average period of 1.87 years and 2.73 years, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES U.S. Federal Income Tax Reform The Tax Act resulted in a number of significant changes to U.S. federal income tax law for U.S. corporations. Most notably, the statutory U.S. federal corporate income tax rate was changed from 35% to 21% for corporations. In addition to the change in the corporate income tax rate, the Tax Act further introduced a number of other changes including a one-time transition tax via a mandatory deemed repatriation of post-1986 undistributed foreign earnings and profits; the introduction of a tax on Global Intangible Low-Taxed Income (“GILTI”) for tax years beginning after December 31, 2017; the limitation of deductible net interest to 30% of adjustable taxable income; the further limitation of the deductibility of share-based compensation of certain highly-compensated employees; the ability to elect to accelerate bonus depreciation on certain qualified assets; and the Base Erosion and Anti-Abuse Tax (“BEAT”). Income tax expense and effective tax rates were: Three Months Ended March 31, 2018 2017 (in thousands, except effective tax rate) Income before income taxes $ 27,212 $ 15,948 Income tax expense 10,758 4,938 Effective tax rate 39.5 % 31.0 % The increase in the effective tax rate for the three months ended March 31, 2018 , compared to the same period in 2017 , is partially due to the impact of the GILTI provisions included in the Tax Act. The Company has elected to account for GILTI as a period cost, and therefore has included GILTI expense in the effective tax rate calculation. The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The increase in the effective tax rate is also due to operating losses in certain jurisdictions where the Company is unable to record tax benefits because it has determined that it is not more likely than not that such tax benefits will be realized, as well as an increase in profitability in certain jurisdictions for which tax expense is recorded. The Company’s effective income tax rate, for each period presented, also differs from the federal U.S. statutory rate primarily due to differences in income tax rates between U.S. and foreign jurisdictions, the GILTI tax, as well as book losses in certain jurisdictions for which tax benefits cannot be recognized. There were no significant or unusual discrete tax items during the three months ended March 31, 2018 . The Company had unrecognized tax benefits of $6.2 million at March 31, 2018 and December 31, 2017 , and the Company does not expect any significant changes in tax benefits in the next twelve months. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic and diluted earnings per common share (“EPS”) for the three months ended March 31, 2018 and 2017 were: Three Months Ended March 31, 2018 2017 (in thousands) Numerator: Net income attributable to common stockholders $ 12,523 $ 7,155 Less: Net income allocable to Series A convertible preferred stockholders (1) (2,094 ) (1,127 ) Adjusted net income available to common stockholders - basic and diluted $ 10,429 $ 6,028 Denominator: Weighted average common shares outstanding - basic 68,705 73,810 Plus: dilutive effect of stock options and unvested restricted stock units 2,963 751 Weighted average common shares outstanding - diluted 71,668 74,561 Net income per common share: Basic $ 0.15 $ 0.08 Diluted $ 0.15 $ 0.08 (1) Represents the amount which would have been paid to preferred stockholders in the event the Company had declared a dividend on its common stock. For the three months ended March 31, 2018 and 2017 , 0.4 million and 0.8 million options and restricted stock units, respectively, were excluded from the calculation of diluted EPS under the two-class method because the effect was anti-dilutive. If converted, Series A Preferred Stock would represent approximately 16.8% of the Company’s common stock outstanding, or 13.8 million additional common shares as of March 31, 2018 . |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Rental Commitments and Contingencies The Company rents retail store, office and warehouse space, vehicles, and equipment under operating leases expiring at various dates through 2033 . Rent expense for leases with escalations or rent holidays is recognized on a straight-line basis over the lease term beginning on the lease inception date. Certain leases also provide for contingent rents, which are generally determined as a percent of sales in excess of specified levels. A contingent rent liability is recognized together with the corresponding rent expense when specified levels have been achieved or when the Company determines that achieving the specified levels during the period is probable. Future minimum lease payments under operating leases were: As of March 31, 2018 (in thousands) 2018 (remainder of year) $ 38,831 2019 36,087 2020 28,726 2021 22,914 2022 16,510 Thereafter 52,356 Total minimum lease payments $ 195,424 Minimum sublease rental income of $ 0.2 million under non-cancelable subleases, and contingent rentals are excluded from the commitment schedule. Rent expense under operating leases was: Three Months Ended March 31, 2018 2017 (in thousands) Minimum rentals (1) $ 18,279 $ 20,786 Contingent rentals 2,160 2,260 Less: Sublease rentals (40 ) (37 ) Total rent expense $ 20,399 $ 23,009 (1) Minimum rentals include all lease payments as well as fixed and variable common area maintenance, parking, and storage fees, which were approximately $2.3 million and $2.6 million during the three months ended March 31, 2018 and 2017 , respectively. Purchase Commitments Under the terms of an annual supply agreement, the Company guarantees payment for certain third-party manufacturer purchases of raw materials used in the manufacture of its products, up to a maximum of € 3.5 million (approximately $4.3 million as of March 31, 2018 ). As of March 31, 2018 , the Company had purchase commitments to third-party manufacturers, primarily for materials and supplies used in the manufacture of the Company’s products, for an aggregate of $ 110.2 million . Other The Company is regularly subject to, and is 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 its normal course of business, the Company may make certain indemnities, commitments, and guarantees under which it may be required to make payments. The Company cannot determine a range of estimated future payments and has not recorded any liability for indemnities, commitments, and guarantees in the accompanying condensed consolidated balance sheets. See Note 14 — Legal Proceedings for further details regarding potential loss contingencies related to government tax audits and other current legal proceedings. |
Operating Segments and Geograph
Operating Segments and Geographic Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Operating Segments and Geographic Information | OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION The Company has three reportable operating segments based on the geographic nature of its operations: Americas, Asia Pacific, and Europe. In addition, the ‘Other businesses’ category aggregates insignificant operating segments that do not meet the reportable segment threshold, including manufacturing operations located in Mexico and Italy, and corporate operations. Each of the reportable operating segments derives its revenues from the sale of footwear and accessories to external customers. Revenues for ‘Other businesses’ include non-footwear product sales to external customers that are excluded from the measurement of segment operating revenues and income. Segment performance is evaluated based on segment results without allocating corporate expenses, or indirect general, administrative, and other expenses. Segment profits or losses include adjustments to eliminate inter-segment sales. Reconciling items between segment income from operations and income from operations consist of other businesses and unallocated corporate and other expenses, as well as inter-segment eliminations. The following tables set forth information related to reportable operating segments: Three Months Ended March 31, 2018 2017 (in thousands) Revenues: Americas $ 123,830 $ 117,722 Asia Pacific 97,162 98,344 Europe 61,843 51,651 Total segment revenues 282,835 267,717 Other businesses 313 190 Total consolidated revenues $ 283,148 $ 267,907 Income from operations: Americas $ 28,539 $ 22,002 Asia Pacific 26,584 26,726 Europe 17,863 12,274 Total segment income from operations 72,986 61,002 Reconciliation of total segment income from operations to income before income taxes: Other businesses (10,934 ) (5,617 ) Unallocated corporate and other (36,130 ) (39,803 ) Income from operations 25,922 15,582 Foreign currency gains, net 1,071 276 Interest income 279 150 Interest expense (113 ) (184 ) Other income 53 124 Income before income taxes $ 27,212 $ 15,948 Depreciation and amortization: Americas $ 1,304 $ 1,345 Asia Pacific 696 926 Europe 352 385 Total segment depreciation and amortization 2,352 2,656 Other businesses 1,524 1,746 Unallocated corporate and other 3,767 4,044 Total consolidated depreciation and amortization $ 7,643 $ 8,446 |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal proceedings | LEGAL PROCEEDINGS The Company was subjected to an audit by the Brazilian Federal Tax Authorities related to imports of footwear from China between 2010 and 2014. On January 13, 2015, the Company was notified about the issuance of assessments totaling 14.4 million Brazilian Real (“BRL”), or approximately $4.3 million , plus interest and penalties, for the period January 2010 through May 2011. The Company has disputed these assessments and asserted defenses to the claims. On February 25, 2015, the Company received additional assessments totaling 33.3 million BRL, or approximately $10.1 million , plus interest and penalties, related to the remainder of the audit period. The Company has also disputed these assessments and asserted defenses to these claims in administrative appeals. On August 29, 2017, the Company received a favorable ruling on its appeal of the first assessment, which dismissed all fines, penalties, and interest. The tax authorities have requested a special appeal to that decision. If the appeal is accepted, Crocs will have the opportunity to both defend the appeal as well as challenge it procedurally. Should the Brazilian Tax Authority prevail in this final administrative appeal, Crocs may still challenge the assessments through the court system, which would likely require the posting of a bond. Additionally, the second appeal for the remaining assessments was heard on March 22, 2018. That decision was partially favorable and resulted in an approximately 38% reduction in principal, penalties, and interest, leaving approximately $8.0 million at risk for those assessments. Both parties can appeal that decision, without posting a bond, through the special appeal process being used for the first assessment. 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 other disputes, the Company has accrued estimated losses of $0.3 million within ‘Accrued expenses and other liabilities’ in its condensed consolidated balance sheet as of March 31, 2018 . Where the Company is able to estimate possible losses or a range of possible losses, the Company estimates that as of March 31, 2018 , losses associated with these claims and other disputes are immaterial. Although the Company is subject to other litigation from time to time in the ordinary course of business, including employment, intellectual property and product liability claims, the Company is not party to any other pending legal proceedings that it believes would reasonably have a material adverse impact on its business and financial results. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT On May 3, 2018, the Company made the decision to close its manufacturing and distribution facilities in Mexico. Manufacturing has ceased, and the Company will execute plans to dispose of or redeploy facility assets, primarily during the second quarter. The distribution center will be closed by the end of the third quarter. |
Basis of Presentation and Sum22
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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 its consolidated subsidiaries within our reportable operating segments and corporate operations. The Company is engaged in the design, development, manufacturing, worldwide marketing, distribution, and sale of casual lifestyle footwear and accessories for men, women, and children. We strive to be the global leader in the sale of molded footwear characterized by functionality, comfort, color, and lightweight design. Our reportable operating segments include: the Americas, operating in North and South America; Asia Pacific, operating throughout Asia, Australia, New Zealand, Africa, and the Middle East; and Europe, operating throughout Western Europe, Eastern Europe, and Russia. |
Principles of Consolidation | The accompanying unaudited condensed consolidated interim financial statements include the Company’s accounts and those of its 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, 2017 (“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. |
Seasonality of Business | Seasonality of Business Due to the seasonal nature of our footwear, which is more heavily focused on styles suitable for warm weather, revenues generated during our fourth quarter are typically less than revenues generated during our first three quarters, when the northern hemisphere is experiencing warmer weather. Our quarterly results of operations may also fluctuate significantly as a result of a variety of other factors, including the timing of new model introductions, general economic conditions, and consumer confidence. Accordingly, results of operations and cash flows for any one quarter are not necessarily indicative of expected results for any other quarter or for any other year. |
Transactions with Affiliates | Transactions with Affiliates The Company receives services from three subsidiaries of Blackstone Capital Partners VI L.P. (“Blackstone”). Blackstone and certain of its permitted transferees currently beneficially own all the outstanding shares of the Company’s Series A Convertible Preferred Stock, which is convertible into approximately 13,793,100 shares, or 16.8% , of the Company’s common stock as of March 31, 2018 . Blackstone also has the right to nominate two representatives to serve on the Company’s Board of Directors. Certain Blackstone subsidiaries provide various services to the Company, including inventory count, cybersecurity and consulting, and workforce management services. The Company paid expenses of $0.1 million related to these services for each of the three months ended March 31, 2018 and 2017 , which are reported in ‘Selling, general and administrative expenses’ in the condensed consolidated statements of operations. |
Restricted Cash | Restricted Cash Restricted cash primarily consists of funds to secure certain retail store leases, certain customs requirements, and other contractual arrangements. |
Inventories | Inventories |
Marketing Expense | Marketing Expenses Total marketing expenses inclusive of advertising, production, promotion, and agency expenses were $15.5 million and $12.0 million for the three months ended March 31, 2018 and 2017 , respectively, and are reported in ‘Selling, general and administrative expenses’ in the condensed consolidated statements of operations. Prepaid advertising and promotional endorsement costs of $4.5 million and $7.0 million are included in ‘Prepaid expenses and other assets’ in the condensed consolidated balance sheets at March 31, 2018 and December 31, 2017 , respectively. |
Recently Accounting Pronouncements | New Accounting Pronouncement Adopted Income Tax Accounting Implications of the Tax Cuts and Jobs Act In March 2018, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance on the income tax accounting implications of the U.S. Tax Cuts and Job Act (“Tax Act”), addressing the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The guidance provides a measurement period for companies to evaluate the impacts of the Tax Act on their financial statements. This measurement period begins in the reporting period that includes the enactment date and ends when an entity has obtained, prepared, and analyzed the information that was needed in order to complete the accounting requirements, and cannot exceed one year. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, we made reasonable estimates of the effects and recorded provisional amounts in our financial statements for the three months ended March 31, 2018 and the year ended December 31, 2017, including provisional estimates for BEAT, GILTI, and Transition Tax. The U.S. Treasury Department, the Internal Revenue Service (“IRS”), and other standard-setting bodies may issue guidance on how the provisions of the Tax Act will be applied or otherwise administered that is different from our interpretation. As we collect and prepare necessary data, and interpret the Tax Act and any additional guidance issued by the IRS or other standard-setting bodies, we may make adjustments to the provisional amounts that could materially affect our financial position and results of operations as well as our effective tax rate in the period in which the adjustments are made. See Note 10 — Income Taxes for more information. Stock Compensation Scope of Modification Accounting In May 2017, the FASB issued authoritative guidance intended to clarify those changes to terms and conditions of stock-based compensation awards that are required to be accounted for as modifications of existing stock-based awards. The Company adopted this guidance as of January 1, 2018. The adoption did not have an impact on our consolidated financial position or results of operations. Clarifying the Definition of a Business In January 2017, the FASB issued authoritative guidance intended to clarify the definition of a business, for purposes of determining whether a business has been acquired or sold, and consequently whether transactions should be accounted for as acquisitions or disposals of a business or as acquisitions or disposals of assets. The Company adopted this guidance as of January 1, 2018. The adoption did not have an impact on our consolidated financial position or results of operations. Statement of Cash Flows - Classification and Change in Restricted Cash In August 2016, the FASB issued authoritative guidance intended to clarify how entities should classify certain cash receipts and cash payments in the statement of cash flows. In November 2016, the FASB issued additional guidance requiring that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts reported in the statement of cash flows. The guidance is applied retrospectively to all periods presented and is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. The Company adopted this guidance as of January 1, 2018. As a result of the adoption, the Company changed the presentation in its statements of cash flows for all periods presented. Prepaid Stored-Value Products In March 2016, the FASB issued guidance related to the recognition of breakage for certain prepaid stored-value products. The standard is effective for annual periods (including interim periods) beginning after December 15, 2017. The Company adopted this guidance as of January 1, 2018. The adoption did not have a significant impact on our consolidated financial position or results of operations. Revenue Recognition In May 2014, the FASB issued authoritative guidance related to revenue recognition from contracts with customers. On January 1, 2018, the Company adopted the guidance using the modified retrospective method. The comparative information presented in the condensed consolidated financial statements was not restated and is reported under the accounting standards in effect for the periods presented. The adoption of this guidance did not have, and is not expected to have, a significant impact on our reported revenues, gross margins or income from operations. Substantially all of the Company’s revenues are recognized when control of product passes to customers when the products are shipped or delivered. Effective January 1, 2018, the Company changed its balance sheet presentation for expected product returns by reporting a product return asset for the right to receive returned products and a returns liability for amounts expected to be refunded to customers as a result of product returns. The product return asset is reported within ‘Prepaid expenses and other assets’ in the condensed consolidated balance sheet. The returns liability and payments received from customers for future delivery of products are reported within ‘Accrued liabilities and other expenses’ in the condensed consolidated balance sheet. The Company elected to account for shipping and handling costs associated with outbound freight after control of product passes to customers as fulfillment costs, which are expensed as incurred and included in ‘Cost of sales’ in our condensed consolidated statements of operations. There is no change to the Company’s comparative reporting of shipping and handling costs as a result of adoption. The Company elected to expense incremental costs to obtain customer contracts, consisting primarily of commission incentives, when incurred and reports these costs within ‘Selling, general and administrative expenses’ in its condensed consolidated statement of operations. There is no change to the Company’s comparative reporting of incremental costs to obtain customer contracts as a result of adoption. The impact of adoption on the January 1, 2018 consolidated balance sheet was: December 31, 2017 Impact of Adoption (1) January 1, 2018 (in thousands) Assets: Accounts receivable, net $ 83,518 $ 1,801 $ 85,319 Prepaid expenses and other assets 22,596 1,555 24,151 Liabilities: Accrued expenses and other liabilities 84,446 3,356 87,802 (1) Prior to adoption, product return assets and return liabilities were reported within ‘Accounts receivable, net’, within the allowance for doubtful accounts. As of the adoption date, the product return assets were reclassified and reported as a component of ‘Prepaid expenses and other assets’, and return liabilities were reclassified to ‘Accrued expenses and other liabilities’ in the Company’s condensed consolidated balance sheet. The impact of the new revenue recognition guidance on our condensed consolidated balance sheet as of March 31, 2018 was: March 31, 2018 Balances Without Adoption Effects of New Guidance (1) As Reported (in thousands) Assets: Accounts receivable, net $ 165,238 $ 4,716 $ 169,954 Prepaid expenses and other assets 18,937 3,044 21,981 Liabilities: Accrued expenses and other liabilities 77,688 7,760 85,448 (1) The new revenue recognition guidance requires comparative disclosures of the effects of the new guidance on the Company’s condensed consolidated financial statements for all interim periods during the year of adoption. The new guidance did not have a significant effect on the Company’s condensed consolidated statement of operations for the three months ended March 31, 2018 . See Note 8 — Revenues for additional disclosures. New Accounting Pronouncements Not Yet Adopted Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued authoritative guidance that permits reclassification of the income tax effects of the Tax Act on other accumulated comprehensive income (“AOCI”) to retained earnings. This guidance may be adopted retrospectively to each period (or periods) in which the income tax effects of the Tax Act related to items remaining in AOCI are recognized, or at the beginning of the period of adoption. The guidance becomes effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. The Company does not expect adoption of this standard will have a significant impact on the Company’s consolidated financial statements. Leases In February 2016, the FASB issued authoritative guidance intended to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. Under the new guidance, lessees will be required to recognize a right-of-use asset and a lease liability, measured on a discounted basis, at the commencement date for all leases with terms greater than twelve months. Additionally, this guidance will require disclosures to help investors and other financial statement users to better understand the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. The guidance will be applied under a modified retrospective transition approach. The guidance is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. The Company will adopt this guidance effective January 1, 2019. In July 2017, the Company established an implementation team and engaged external advisers and solution providers to develop a multi-phase plan to assess the Company’s leasing arrangements, as well as any changes to accounting policies, processes or systems necessary to adopt the requirements of the new standard. The Company has entered into agreements to procure software and services for the adoption and has begun assessments of its lease agreements, system capabilities and requirements. The Company is evaluating the full impact this guidance will have on its consolidated financial statements, and expects that adoption will result in significant increases in lease-related assets and liabilities on its consolidated balance sheet. Other Pronouncements Other new pronouncements issued but not effective until after March 31, 2018 are not expected to have a material impact on the Company’s condensed consolidated financial statements. |
Derivatives Financial Instruments | The Company’s derivative instruments are recorded at fair value as a derivative asset or liability in the condensed consolidated balance sheets. The Company reports derivative instruments with the same counterparty on a net basis when a master netting arrangement is in place. Changes in fair value are recognized within ‘Foreign currency gains, net’ in the condensed consolidated statements of operations. For the condensed consolidated statements of cash flows, the Company classifies cash flows from derivative instruments at settlement in the same category as the cash flows from the related hedged items within ‘Cash provided by (used in) operating activities. |
Recent Accounting Pronounceme23
Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The impact of adoption on the January 1, 2018 consolidated balance sheet was: December 31, 2017 Impact of Adoption (1) January 1, 2018 (in thousands) Assets: Accounts receivable, net $ 83,518 $ 1,801 $ 85,319 Prepaid expenses and other assets 22,596 1,555 24,151 Liabilities: Accrued expenses and other liabilities 84,446 3,356 87,802 (1) Prior to adoption, product return assets and return liabilities were reported within ‘Accounts receivable, net’, within the allowance for doubtful accounts. As of the adoption date, the product return assets were reclassified and reported as a component of ‘Prepaid expenses and other assets’, and return liabilities were reclassified to ‘Accrued expenses and other liabilities’ in the Company’s condensed consolidated balance sheet. The impact of the new revenue recognition guidance on our condensed consolidated balance sheet as of March 31, 2018 was: March 31, 2018 Balances Without Adoption Effects of New Guidance (1) As Reported (in thousands) Assets: Accounts receivable, net $ 165,238 $ 4,716 $ 169,954 Prepaid expenses and other assets 18,937 3,044 21,981 Liabilities: Accrued expenses and other liabilities 77,688 7,760 85,448 (1) The new revenue recognition guidance requires comparative disclosures of the effects of the new guidance on the Company’s condensed consolidated financial statements for all interim periods during the year of adoption. The new guidance did not have a significant effect on the Company’s condensed consolidated statement of operations for the three months ended March 31, 2018 . See Note 8 — Revenues for additional disclosures. |
Accrued Expenses And Other Li24
Accrued Expenses And Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses & Other Liabilities | Amounts reported in ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheets were: March 31, December 31, (in thousands) Accrued compensation and benefits $ 21,960 $ 34,955 Professional services 10,082 10,835 Accrued rent and occupancy 8,907 8,535 Fulfillment, freight, and duties 13,311 6,921 Royalties payable and deferred revenue 5,822 6,193 Sales/use and value added taxes payable 5,623 3,509 Return liabilities (1) 7,760 — Other (2) 11,983 13,498 Total accrued expenses and other liabilities $ 85,448 $ 84,446 (1) Return liabilities are presented within ‘Accrued expenses and other liabilities’ upon adoption of new authoritative guidance on revenue recognition effective January 1, 2018, as described in Note 2 — Recent Accounting Pronouncements . (2) Includes current liabilities of $3.0 million related to Series A preferred stock dividends at both March 31, 2018 and December 31, 2017 . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Company's Notes Payable | The fair values of the Company’s outstanding notes payable approximate their carrying values at March 31, 2018 and December 31, 2017 , based on interest rates currently available to the Company for similar borrowings. March 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (in thousands) Borrowings and capital lease obligations $ 309 $ 309 $ 706 $ 706 |
Derivative Financial Instrume26
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 and are reported within either ‘Prepaid expenses and other assets’ or ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheets, were: March 31, 2018 December 31, 2017 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities (in thousands) Forward foreign currency exchange contracts $ 1,346 $ (1,469 ) $ 1,241 $ (1,647 ) Netting of counterparty contracts (1,346 ) 1,346 (1,241 ) 1,241 Foreign currency forward contract derivatives $ — $ (123 ) $ — $ (406 ) |
Summary of Derivative Financial Instruments Notional Amounts on Outstanding Positions | The notional amounts of outstanding foreign currency forward exchange contracts presented below report the total U.S. Dollar equivalent position and the net contract fair values for each foreign currency position. March 31, 2018 December 31, 2017 Notional Fair Value Notional Fair Value (in thousands) Singapore Dollar $ 45,297 $ (7 ) $ 73,455 $ 364 Euro 46,410 39 37,718 (122 ) Japanese Yen 38,076 (1,015 ) 30,688 (89 ) South Korean Won 17,202 (182 ) 15,888 (134 ) British Pound Sterling 11,023 — 13,233 80 Other currencies 68,094 1,042 53,698 (505 ) Total $ 226,102 $ (123 ) $ 224,680 $ (406 ) Latest maturity date April 2018 January 2018 |
Schedule of Gains / Losses from Foreign Currency Transactions and Derivative Contracts | Amounts reported in ‘Foreign currency gains, 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 March 31, 2018 2017 (in thousands) Foreign currency transaction gains $ 1,051 $ 3,211 Foreign currency forward exchange contracts gains (losses) 20 (2,935 ) Foreign currency gains, net $ 1,071 $ 276 |
Revolving Credit Facility and27
Revolving Credit Facility and Bank Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Components Of Our Consolidated Debt And Capital Lease Obligations | The Company’s borrowings consisted of: March 31, December 31, (in thousands) Notes payable $ 266 $ 662 Capital lease obligations 43 44 Total borrowings and capital lease obligations 309 706 Less: Current portion of borrowings and capital lease obligations 281 676 Total long-term capital lease obligations $ 28 $ 30 |
Maturities of Debt Obligation | The maturities of the Company’s debt and capital lease obligations were: As of March 31, 2018 (in thousands) 2018 (remainder of year) $ 277 2019 14 2020 12 2021 6 Total principal debt maturities and capital lease obligations 309 Less: current portion 281 Non-current portion $ 28 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues Disaggregated by Region and by Channel | Revenues by reportable operating segment and by channel were: Three Months Ended March 31, 2018 Americas Asia Pacific Europe Other Businesses Total (in thousands) Wholesale $ 72,674 $ 71,733 $ 49,877 $ 313 $ 194,597 Retail 34,716 17,614 7,176 — 59,506 E-commerce 16,440 7,815 4,790 — 29,045 Total revenues $ 123,830 $ 97,162 $ 61,843 $ 313 $ 283,148 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation Expense | Pre-tax share-based compensation expense reported in the Company’s condensed consolidated statements of operations was: Three Months Ended March 31, 2018 2017 (in thousands) Cost of sales $ 79 $ 89 Selling, general and administrative expenses 2,595 2,522 Total share-based compensation expense $ 2,674 $ 2,611 |
Stock Option Activity | Stock option activity during the three months ended March 31, 2018 was: Number of Options (in thousands) Outstanding December 31, 2017 541 Granted — Exercised (26 ) Forfeited or expired (11 ) Outstanding March 31, 2018 504 |
Schedule Of Restricted Stock Award And Restricted Stock Unit Activity | RSA and RSU activity during the three months ended March 31, 2018 was: Restricted Stock Awards Restricted Stock Units Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value (in thousands, except fair value data) Unvested at December 31, 2017 17 $ 6.84 3,791 $ 7.99 Granted — — 1,137 14.11 Vested (8 ) 6.84 (919 ) 8.28 Forfeited — — (761 ) 6.96 Unvested at March 31, 2018 9 $ 6.84 3,248 $ 10.64 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Tax Expense and Effective Tax Rates | Income tax expense and effective tax rates were: Three Months Ended March 31, 2018 2017 (in thousands, except effective tax rate) Income before income taxes $ 27,212 $ 15,948 Income tax expense 10,758 4,938 Effective tax rate 39.5 % 31.0 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary Of Basic And Diluted Earnings Per Share | Basic and diluted earnings per common share (“EPS”) for the three months ended March 31, 2018 and 2017 were: Three Months Ended March 31, 2018 2017 (in thousands) Numerator: Net income attributable to common stockholders $ 12,523 $ 7,155 Less: Net income allocable to Series A convertible preferred stockholders (1) (2,094 ) (1,127 ) Adjusted net income available to common stockholders - basic and diluted $ 10,429 $ 6,028 Denominator: Weighted average common shares outstanding - basic 68,705 73,810 Plus: dilutive effect of stock options and unvested restricted stock units 2,963 751 Weighted average common shares outstanding - diluted 71,668 74,561 Net income per common share: Basic $ 0.15 $ 0.08 Diluted $ 0.15 $ 0.08 (1) Represents the amount which would have been paid to preferred stockholders in the event the Company had declared a dividend on its common stock. |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments Under Operating Leases | Future minimum lease payments under operating leases were: As of March 31, 2018 (in thousands) 2018 (remainder of year) $ 38,831 2019 36,087 2020 28,726 2021 22,914 2022 16,510 Thereafter 52,356 Total minimum lease payments $ 195,424 |
Operating Lease Rental Expense | Rent expense under operating leases was: Three Months Ended March 31, 2018 2017 (in thousands) Minimum rentals (1) $ 18,279 $ 20,786 Contingent rentals 2,160 2,260 Less: Sublease rentals (40 ) (37 ) Total rent expense $ 20,399 $ 23,009 (1) Minimum rentals include all lease payments as well as fixed and variable common area maintenance, parking, and storage fees, which were approximately $2.3 million and $2.6 million during the three months ended March 31, 2018 and 2017 , respectively |
Operating Segments and Geogra33
Operating Segments and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Information Related to Reportable Operating Segments | The following tables set forth information related to reportable operating segments: Three Months Ended March 31, 2018 2017 (in thousands) Revenues: Americas $ 123,830 $ 117,722 Asia Pacific 97,162 98,344 Europe 61,843 51,651 Total segment revenues 282,835 267,717 Other businesses 313 190 Total consolidated revenues $ 283,148 $ 267,907 Income from operations: Americas $ 28,539 $ 22,002 Asia Pacific 26,584 26,726 Europe 17,863 12,274 Total segment income from operations 72,986 61,002 Reconciliation of total segment income from operations to income before income taxes: Other businesses (10,934 ) (5,617 ) Unallocated corporate and other (36,130 ) (39,803 ) Income from operations 25,922 15,582 Foreign currency gains, net 1,071 276 Interest income 279 150 Interest expense (113 ) (184 ) Other income 53 124 Income before income taxes $ 27,212 $ 15,948 Depreciation and amortization: Americas $ 1,304 $ 1,345 Asia Pacific 696 926 Europe 352 385 Total segment depreciation and amortization 2,352 2,656 Other businesses 1,524 1,746 Unallocated corporate and other 3,767 4,044 Total consolidated depreciation and amortization $ 7,643 $ 8,446 |
Basis of Presentation and Sum34
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Jan. 01, 2018 | |
Related Party Transaction [Line Items] | ||||
Percentage of FIFO inventory (percent) | 95.00% | |||
Total marketing expenses | $ 15.5 | $ 12 | ||
Prepaid advertising and promotional endorsement costs | $ 4.5 | $ 7 | ||
Series A Preferred Stock [Member] | ||||
Related Party Transaction [Line Items] | ||||
Series A preferred shares, number of shares issuable if converted (shares) | 13,793,100 | |||
Percentage of common stock if-converted Series A preferred stock (percent) | 16.80% | |||
Blackstone [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses paid to affiliates | $ 0.1 | $ 0.1 | ||
Product Concentration Risk [Member] | Finished Goods Inventory [Member] | Inventories [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of finished goods in consolidated inventories (percent) | 97.50% | 97.50% |
Recent Accounting Pronounceme35
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | $ 169,954 | $ 85,319 | $ 83,518 |
Prepaid expenses and other assets | 21,981 | 24,151 | 22,596 |
Accrued expenses and other liabilities | 85,448 | 87,802 | 84,446 |
Balances Before Adoption of ASC 606 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | 165,238 | 83,518 | |
Prepaid expenses and other assets | 18,937 | 22,596 | |
Accrued expenses and other liabilities | 77,688 | $ 84,446 | |
ASU 2014-09 [Member] | Impact of Adoption [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accounts receivable, net | 4,716 | 1,801 | |
Prepaid expenses and other assets | 3,044 | 1,555 | |
Accrued expenses and other liabilities | $ 7,760 | $ 3,356 |
Accrued Expenses And Other Li36
Accrued Expenses And Other Liabilities (Schedule Of Accrued Expenses & Other Current Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||
Accrued compensation and benefits | $ 21,960 | $ 34,955 | |
Professional services | 10,082 | 10,835 | |
Accrued rent and occupancy | 8,907 | 8,535 | |
Fulfillment, freight, and duties | 13,311 | 6,921 | |
Royalties payable and deferred revenue | 5,822 | 6,193 | |
Sales/use and value added taxes payable | 5,623 | 3,509 | |
Return liabilities | 7,760 | 0 | |
Other | 11,983 | 13,498 | |
Total accrued expenses and other liabilities | 85,448 | $ 87,802 | 84,446 |
Series A Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Other | $ 3,000 | $ 3,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities at Fair Value (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of Company's derivative liability | $ 100,000 | $ 400,000 | |
Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Borrowings and capital lease obligations | 309,000 | 706,000 | |
Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Borrowings and capital lease obligations | 309,000 | $ 706,000 | |
Retail Store Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Non-cash impairment expense | 600,000 | $ 0 | |
Supply Chain Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Non-cash impairment expense | $ 900,000 | $ 0 |
Derivative Financial Instrume38
Derivative Financial Instruments (Fair Value of Derivative Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Foreign Currency Derivatives [Abstract] | ||
Foreign currency forward contract derivatives | $ (123) | $ (406) |
Level 2 [Member] | ||
Foreign Currency Derivatives [Abstract] | ||
Derivative asset | 1,346 | 1,241 |
Derivative liability | (1,469) | (1,647) |
Foreign currency forward contract derivatives | $ (123) | $ (406) |
Derivative Financial Instrume39
Derivative Financial Instruments (Summary Of Derivative Financial Instruments Notional Amounts On Outstanding Positions) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Total notional value | $ 226,102 | $ 224,680 |
Derivative fair value | (123) | (406) |
Singapore Dollar [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total notional value | 45,297 | 73,455 |
Derivative fair value | (7) | 364 |
Euro [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total notional value | 46,410 | 37,718 |
Derivative fair value | 39 | (122) |
Japanese Yen [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total notional value | 38,076 | 30,688 |
Derivative fair value | (1,015) | (89) |
South Korean Won [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total notional value | 17,202 | 15,888 |
Derivative fair value | (182) | (134) |
British Pound Sterling [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total notional value | 11,023 | 13,233 |
Derivative fair value | 0 | 80 |
Other Currencies [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total notional value | 68,094 | 53,698 |
Derivative fair value | $ 1,042 | $ (505) |
Derivative Financial Instrume40
Derivative Financial Instruments (Gains / Losses on Foreign Currency Derivatives) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Foreign currency transaction gains | $ 1,051 | $ 3,211 |
Foreign currency forward exchange contracts gains (losses) | 20 | (2,935) |
Foreign currency gains, net | $ 1,071 | $ 276 |
Revolving Credit Facility and41
Revolving Credit Facility and Bank Borrowings (Components Of Our Consolidated Debt And Capital Lease Obligations) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 43 | $ 44 |
Total borrowings and capital lease obligations | 309 | 706 |
Less: current portion | 281 | 676 |
Non-current portion | 28 | 30 |
Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 266 | $ 662 |
Revolving Credit Facility and42
Revolving Credit Facility and Bank Borrowings (Revolving Credit Facilities and Notes Payable) (Details) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) |
Line of Credit Facility [Line Items] | |||
Amount allowed for repurchase under Amendment | $ 198,800,000 | ||
Senior Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Outstanding letters of credit | 600,000 | ||
Revolving Credit Facility [Member] | Senior Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Amount allowed for repurchase under Amendment | 100,000,000 | ||
Maximum capital expenditures and commitments | 50,000,000 | ||
Intercompany loans permitted | 375,000,000 | ||
Borrowings outstanding threshold for financial covenant ratios | $ 40,000,000 | ||
Percentage of commitments in average outstanding borrowings (percent) | 40.00% | 40.00% | |
Minimum fixed charge coverage ratio | 110.00% | 110.00% | |
Leverage ratio | 200.00% | 200.00% | |
Outstanding borrowings on the Facility | $ 0 | ||
Available borrowing capacity | 99,400,000 | $ 99,400,000 | |
Current borrowing capacity | 100,000,000 | ||
Revolving Credit Facility [Member] | Asia Pacific Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Current borrowing capacity | 9,600,000 | ¥ 60,000,000 | |
Revolving Loan Facility [Member] | Asia Pacific Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Current borrowing capacity | 6,400,000 | 40,000,000 | |
Revolving Loan Facility [Member] | China Merchant Bank Company Facility (CMBC Facility) [Member] | |||
Line of Credit Facility [Line Items] | |||
Outstanding borrowings on the Facility | 0 | ||
Current borrowing capacity | $ 4,800,000 | ¥ 30,000,000 |
Revolving Credit Facility and43
Revolving Credit Facility and Bank Borrowings (Notes Payable) (Details) - Notes Payable [Member] | Mar. 31, 2018 |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Notes payable stated interest rate (percent) | 1.95% |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Notes payable stated interest rate (percent) | 2.83% |
Revolving Credit Facility and44
Revolving Credit Facility and Bank Borrowings (Maturities Of Debt Obligations) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2018 (remainder of year) | $ 277 | |
2,019 | 14 | |
2,020 | 12 | |
2,021 | 6 | |
Total borrowings and capital lease obligations | 309 | $ 706 |
Less: current portion | 281 | 676 |
Non-current portion | $ 28 | $ 30 |
Common Stock Repurchase Progr45
Common Stock Repurchase Program (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Abstract] | ||
Stock repurchased during period (shares) | 1,400,000 | 0 |
Stock repurchased during period | $ 20,100,000 | $ 0 |
Common stock authorized for repurchase | $ 198,800,000 |
Revenues - Disaggregated Revenu
Revenues - Disaggregated Revenues (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Total revenues | $ 283,148 |
Wholesale [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 194,597 |
Retail [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 59,506 |
e-Commerce [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 29,045 |
Americas [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 123,830 |
Americas [Member] | Wholesale [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 72,674 |
Americas [Member] | Retail [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 34,716 |
Americas [Member] | e-Commerce [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 16,440 |
Asia Pacific [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 97,162 |
Asia Pacific [Member] | Wholesale [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 71,733 |
Asia Pacific [Member] | Retail [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 17,614 |
Asia Pacific [Member] | e-Commerce [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 7,815 |
Europe [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 61,843 |
Europe [Member] | Wholesale [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 49,877 |
Europe [Member] | Retail [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 7,176 |
Europe [Member] | e-Commerce [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 4,790 |
Other Businesses [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 313 |
Other Businesses [Member] | Wholesale [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 313 |
Other Businesses [Member] | Retail [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | 0 |
Other Businesses [Member] | e-Commerce [Member] | |
Disaggregation of Revenue [Line Items] | |
Total revenues | $ 0 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Jan. 01, 2018 | |
Revenues [Abstract] | ||
Increase in amount of variable revenue recognized from prior periods | $ 283,148,000 | |
Wholesale [Member] | ||
Revenues [Abstract] | ||
Increase in amount of variable revenue recognized from prior periods | 194,597,000 | |
Retail [Member] | ||
Revenues [Abstract] | ||
Increase in amount of variable revenue recognized from prior periods | 59,506,000 | |
e-Commerce [Member] | ||
Revenues [Abstract] | ||
Increase in amount of variable revenue recognized from prior periods | 29,045,000 | |
Advance Cash Deposit [Member] | ||
Revenues [Abstract] | ||
Deferred revenues accrued | 2,100,000 | $ 1,300,000 |
Revenues recognized | 800,000 | |
Refund Liability [Member] | ||
Revenues [Abstract] | ||
Deferred revenues accrued | 7,800,000 | $ 3,400,000 |
ASU 2014-09 [Member] | Wholesale [Member] | ||
Revenues [Abstract] | ||
Increase in amount of variable revenue recognized from prior periods | 800,000 | |
ASU 2014-09 [Member] | Retail [Member] | ||
Revenues [Abstract] | ||
Increase in amount of variable revenue recognized from prior periods | 0 | |
ASU 2014-09 [Member] | e-Commerce [Member] | ||
Revenues [Abstract] | ||
Increase in amount of variable revenue recognized from prior periods | $ 0 |
Share-based Compensation (Narra
Share-based Compensation (Narrative) (Details) shares in Millions | Mar. 31, 2018shares |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shares of common stock remaining available for future issuance (shares) | 2.2 |
Share-based Compensation (Sched
Share-based Compensation (Schedule of Share-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total share-based compensation expense | $ 2,674 | $ 2,611 |
Cost of Sales [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total share-based compensation expense | 79 | 89 |
Selling, General and Administrative Expenses [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total share-based compensation expense | $ 2,595 | $ 2,522 |
Share-based Compensation (Stock
Share-based Compensation (Stock Option Activity) (Details) | 3 Months Ended |
Mar. 31, 2018shares | |
Stock Option Shares | |
Stock Option Shares Outstanding at beginning of period (shares) | 541,000 |
Granted (shares) | 0 |
Exercised (shares) | (26,000) |
Forfeited or expired (shares) | (11,000) |
Stock Option Shares Outstanding at end of period (shares) | 504,000 |
Share-based Compensation (Sto51
Share-based Compensation (Stock Option Activity Narrative) (Details) - Employee Stock Option [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense related to unvested options | $ 0.4 |
Amortized over a weighted average period | 2 years 22 days |
Share-based Compensation (Sch52
Share-based Compensation (Schedule Of Restricted Stock Award And Restricted Stock Unit Activity) (Details) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Restricted Stock Awards [Member] | |
Shares | |
Unvested beginning balance (shares) | shares | 17,000 |
Granted (shares) | shares | 0 |
Vested (shares) | shares | (8,000) |
Forfeited (shares) | shares | 0 |
Unvested ending balance (shares) | shares | 9,000 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value beginning balance (in dollars per share) | $ / shares | $ 6.84 |
Weighted average grant date fair value of granted (in dollars per share) | $ / shares | 0 |
Weighted average grant date fair value of vested (in dollars per share) | $ / shares | 6.84 |
Weighted average grant date fair value of forfeited (in dollars per share) | $ / shares | 0 |
Weighted average grant date fair value ending balance (in dollars per share) | $ / shares | $ 6.84 |
Restricted Stock Units [Member] | |
Shares | |
Unvested beginning balance (shares) | shares | 3,791,000 |
Granted (shares) | shares | 1,137,000 |
Vested (shares) | shares | (919,000) |
Forfeited (shares) | shares | (761,000) |
Unvested ending balance (shares) | shares | 3,248,000 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value beginning balance (in dollars per share) | $ / shares | $ 7.99 |
Weighted average grant date fair value of granted (in dollars per share) | $ / shares | 14.11 |
Weighted average grant date fair value of vested (in dollars per share) | $ / shares | 8.28 |
Weighted average grant date fair value of forfeited (in dollars per share) | $ / shares | 6.96 |
Weighted average grant date fair value ending balance (in dollars per share) | $ / shares | $ 10.64 |
Share-based Compensation (Restr
Share-based Compensation (Restricted Stock Awards And Restricted Stock Units Activity Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)shares | |
Restricted Stock Awards [Member] | |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |
Unrecognized share-based compensation expense related to unvested awards | $ | $ 0.1 |
Amortized over a weighted average period | 2 months 5 days |
Restricted stock vested in period (shares) | shares | 8,000 |
Time-based Restricted Stock Units [Member] | |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |
Unrecognized share-based compensation expense related to unvested awards | $ | $ 12.6 |
Amortized over a weighted average period | 1 year 10 months 13 days |
Restricted stock vested in period (shares) | shares | 700,000 |
Performance-based Restricted Stock Units [Member] | |
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items] | |
Unrecognized share-based compensation expense related to unvested awards | $ | $ 8.2 |
Amortized over a weighted average period | 2 years 8 months 23 days |
Restricted stock vested in period (shares) | shares | 300,000 |
Income Taxes (Summary of Tax Ex
Income Taxes (Summary of Tax Expense and Effective Tax Rates) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 27,212 | $ 15,948 |
Income tax expense | $ 10,758 | $ 4,938 |
Effective tax rate (percent) | 39.50% | 31.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 6.2 | $ 6.2 |
Earnings Per Share (Summary Of
Earnings Per Share (Summary Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income (loss) attributable to common stockholders - basic and diluted | $ 12,523 | $ 7,155 |
Less: Net income allocable to Series A convertible preferred stockholders | (2,094) | (1,127) |
Adjusted net income available to common stockholders - basic and diluted | $ 10,429 | $ 6,028 |
Weighted average common shares outstanding - basic (shares) | 68,705 | 73,810 |
Plus: dilutive effect of stock options and unvested restricted stock units (shares) | 2,963 | 751 |
Weighted average common shares outstanding - diluted (shares) | 71,668 | 74,561 |
Basic (in dollars per share) | $ 0.15 | $ 0.08 |
Diluted (in dollars per share) | $ 0.15 | $ 0.08 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Series A Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Percentage of common stock if-converted Series A preferred stock (percent) | 16.80% | |
Series A preferred shares, number of shares issuable if converted (shares) | 13,793,100 | |
Stock Options and Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities not included in the calculation of diluted income per share | 400,000 | 800,000 |
Commitments And Contingencies58
Commitments And Contingencies (Minimum Future Lease Payments) (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2018 (remainder of year) | $ 38,831 |
2,019 | 36,087 |
2,020 | 28,726 |
2,021 | 22,914 |
2,022 | 16,510 |
Thereafter | 52,356 |
Total minimum lease payments | 195,424 |
Minimum sublease rentals excluded from the commitments schedule | $ 200 |
Commitments And Contingencies59
Commitments And Contingencies (Operating Lease Rental Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Leases, Rent Expense, Net [Abstract] | ||
Minimum rentals | $ 18,279 | $ 20,786 |
Contingent rentals | 2,160 | 2,260 |
Less: Sublease rentals | (40) | (37) |
Total rent expense | 20,399 | 23,009 |
Common area maintenance, parking and storage. | $ 2,300 | $ 2,600 |
Commitments And Contingencies60
Commitments And Contingencies (Purchase Commitments) (Details) - Mar. 31, 2018 € in Millions, $ in Millions | EUR (€) | USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||
Maximum guaranteed payments for third-party manufacturer purchases | € 3.5 | $ 4.3 |
Purchase commitments with third party manufacturers | $ 110.2 |
Operating Segments and Geogra61
Operating Segments and Geographic Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018segments | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Operating Segments and Geogra62
Operating Segments and Geographic Information (Information Related To Reportable Operating Business Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | $ 283,148 | $ 267,907 |
Income (loss) from operations | 25,922 | 15,582 |
Foreign currency gains, net | 1,071 | 276 |
Interest income | 279 | 150 |
Interest expense | (113) | (184) |
Other income, net | 53 | 124 |
Income before income taxes | 27,212 | 15,948 |
Total consolidated depreciation and amortization | 7,643 | 8,446 |
Reportable Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 282,835 | 267,717 |
Income (loss) from operations | 72,986 | 61,002 |
Total consolidated depreciation and amortization | 2,352 | 2,656 |
Reportable Operating Segments [Member] | Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 123,830 | 117,722 |
Income (loss) from operations | 28,539 | 22,002 |
Total consolidated depreciation and amortization | 1,304 | 1,345 |
Reportable Operating Segments [Member] | Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 97,162 | 98,344 |
Income (loss) from operations | 26,584 | 26,726 |
Total consolidated depreciation and amortization | 696 | 926 |
Reportable Operating Segments [Member] | Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 61,843 | 51,651 |
Income (loss) from operations | 17,863 | 12,274 |
Total consolidated depreciation and amortization | 352 | 385 |
Reportable Operating Segments [Member] | Other businesses [Member] | ||
Segment Reporting Information [Line Items] | ||
Total consolidated revenues | 313 | 190 |
Income (loss) from operations | (10,934) | (5,617) |
Total consolidated depreciation and amortization | 1,524 | 1,746 |
Unallocated corporate and other [Member] | ||
Segment Reporting Information [Line Items] | ||
Income (loss) from operations | (36,130) | (39,803) |
Total consolidated depreciation and amortization | $ 3,767 | $ 4,044 |
Legal Proceedings (Details)
Legal Proceedings (Details) R$ in Millions, $ in Millions | Mar. 22, 2018USD ($) | Feb. 25, 2015BRL (R$) | Feb. 25, 2015USD ($) | Jan. 13, 2015BRL (R$) | Jan. 13, 2015USD ($) | Mar. 31, 2018USD ($) |
Income Tax Examination [Line Items] | ||||||
Accrued estimated losses | $ 0.3 | |||||
Brazilian Federal Tax Authorities [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Assessments sought again entity | $ 8 | R$ 33.3 | $ 10.1 | R$ 14.4 | $ 4.3 | |
Reduction in principal, penalties and interest (percent) | 38.00% |