Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jan. 31, 2014 | Feb. 28, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Jan-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'ZQK | ' |
Entity Registrant Name | 'QUIKSILVER INC | ' |
Entity Central Index Key | '0000805305 | ' |
Current Fiscal Year End Date | '--10-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 170,413,719 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Income Statement [Abstract] | ' | ' |
Revenues, net | $392,612 | $412,189 |
Cost of goods sold | 192,776 | 202,416 |
Gross profit | 199,836 | 209,773 |
Selling, general and administrative expense | 203,784 | 216,339 |
Asset impairments | 883 | 3,168 |
Operating loss | -4,831 | -9,734 |
Interest expense, net | 19,420 | 15,501 |
Foreign currency loss | 2,828 | 3,065 |
Loss before (benefit)/provision for income taxes | -27,079 | -28,300 |
(Benefit)/provision for income taxes | -4,385 | 2,949 |
Loss from continuing operations | -22,694 | -31,249 |
Income from discontinued operations, net of tax (includes net gain on sales of businesses of $38,103, and $0, respectively) | 37,617 | 625 |
Net income/(loss) | 14,923 | -30,624 |
Less: net loss/(income) attributable to non-controlling interest | 464 | -505 |
Net income/(loss) attributable to Quiksilver, Inc. | 15,387 | -31,129 |
Loss per share from continuing operations attributable to Quiksilver, Inc. | ($0.13) | ($0.19) |
Income per share from discontinued operations attributable to Quiksilver, Inc. | $0.22 | $0 |
Net income/(loss) per share attributable to Quiksilver, Inc. | $0.09 | ($0.19) |
Loss per share from continuing operations attributable to Quiksilver, Inc., assuming dilution | ($0.13) | ($0.19) |
Income per share from discontinued operations attributable to Quiksilver, Inc., assuming dilution | $0.22 | $0 |
Net income/(loss) per share attributable to Quiksilver, Inc., assuming dilution | $0.09 | ($0.19) |
Weighted average common shares outstanding, basic and diluted | 169,747 | 165,767 |
Amounts attributable to Quiksilver, Inc.: | ' | ' |
Loss from continuing operations | -22,333 | -31,568 |
Income from discontinued operations, net of tax | 37,720 | 439 |
Net income/(loss) attributable to Quiksilver, Inc. | $15,387 | ($31,129) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Income Statement [Abstract] | ' | ' |
Net gain on sales of businesses | $38,103 | $0 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income/(Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' |
Net income/(loss) | $14,923 | ($30,624) |
Other comprehensive income/(loss): | ' | ' |
Foreign currency translation adjustment | -20,715 | 11,758 |
Net unrealized gain/(loss) on derivative instruments, net of tax provision/(benefit) of $1,321 (2014) and $(1,628) (2013) | 6,293 | -3,648 |
Comprehensive income/(loss) | 501 | -22,514 |
Comprehensive loss/(income) attributable to non-controlling interest | 464 | -505 |
Comprehensive income/(loss) attributable to Quiksilver, Inc. | $965 | ($23,019) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Comprehensive Income/(Loss) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' |
Unrealized gain/(loss) on derivative instruments, tax | $1,321 | ($1,628) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $69,988 | $57,280 |
Restricted cash | 60,617 | ' |
Trade accounts receivable, less allowances of $61,534 (2014) and $60,912 (2013) | 338,723 | 411,638 |
Other receivables | 27,278 | 23,306 |
Inventories, net | 360,146 | 337,715 |
Deferred income taxes - current | 9,563 | 9,997 |
Prepaid expenses and other current assets | 29,243 | 24,124 |
Current portion of assets held for sale | 13,676 | 51,196 |
Total current assets | 909,234 | 915,256 |
Fixed assets, less accumulated depreciation and amortization of $239,565 (2014) and $248,860 (2013) | 224,914 | 231,261 |
Intangible assets, net | 134,665 | 134,596 |
Goodwill | 258,238 | 261,625 |
Other assets | 50,389 | 53,287 |
Assets held for sale, net of current portion | 23,715 | 24,445 |
Total assets | 1,601,155 | 1,620,470 |
Current liabilities: | ' | ' |
Accounts payable | 168,005 | 201,675 |
Accrued liabilities | 119,757 | 121,545 |
Current portion of long-term debt | 43,424 | 23,488 |
Income taxes payable | 1,913 | 3,912 |
Current portion of assets held for sale | 9,075 | 16,420 |
Total current liabilities | 342,174 | 367,040 |
Long-term debt, net of current portion | 821,224 | 807,812 |
Other long-term liabilities | 34,503 | 36,345 |
Deferred income taxes long-term | 21,590 | 19,896 |
Assets held for sale, net of current portion | 1,577 | 1,719 |
Total liabilities | 1,221,068 | 1,232,812 |
Equity: | ' | ' |
Preferred stock, $0.01 par value, authorized shares - 5,000,000; issued and outstanding shares - none | ' | ' |
Common stock, $0.01 par value, authorized shares - 285,000,000; issued shares - 173,278,919 (2014) and 172,579,182 (2013) | 1,733 | 1,726 |
Additional paid-in capital | 574,081 | 576,726 |
Treasury stock, 2,885,200 shares | -6,778 | -6,778 |
Accumulated deficit | -260,499 | -275,886 |
Accumulated other comprehensive income | 59,496 | 73,918 |
Total Quiksilver, Inc. stockholders' equity | 368,033 | 369,706 |
Non-controlling interest | 12,054 | 17,952 |
Total equity | 380,087 | 387,658 |
Total liabilities and equity | $1,601,155 | $1,620,470 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowances for trade accounts receivable | $61,534 | $60,912 |
Fixed assets, accumulated depreciation and amortization | $239,565 | $248,860 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 285,000,000 | 285,000,000 |
Common stock, shares issued | 173,278,919 | 172,579,182 |
Treasury stock, shares | 2,885,200 | 2,885,200 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income/(loss) | $14,923 | ($30,624) |
Adjustments to reconcile net income/(loss) to net cash (used in)/provided by operating activities: | ' | ' |
Income from discontinued operations | -37,617 | -625 |
Depreciation and amortization | 10,545 | 11,943 |
Stock-based compensation | 5,063 | 7,336 |
Provision for doubtful accounts | 1,662 | 1,248 |
(Gain)/loss on disposal of fixed assets | -266 | 2 |
Unrealized foreign currency loss | 3,065 | 2,659 |
Asset impairments | 883 | 3,168 |
Non-cash interest expense | 914 | 911 |
Equity in earnings | 352 | -11 |
Deferred income taxes | 5 | 1,135 |
Changes in operating assets and liabilities: | ' | ' |
Trade accounts receivable | 64,203 | 85,538 |
Other receivables | -825 | 3,475 |
Inventories | -32,663 | -69,405 |
Prepaid expenses and other current assets | -7,372 | -11,605 |
Other assets | 2,628 | 3,330 |
Accounts payable | -28,498 | 16,673 |
Accrued liabilities and other long-term liabilities | 124 | -14,012 |
Income taxes payable | -1,242 | -1,174 |
Cash (used in)/provided by operating activities of continuing operations | -4,116 | 9,962 |
Cash (used in)/provided by operating activities of discontinued operations | -7,195 | 13,354 |
Net cash (used in)/provided by operating activities | -11,311 | 23,316 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -10,558 | -12,100 |
Changes in restricted cash | -60,617 | ' |
Cash used in investing activities of continuing operations | -71,175 | -12,100 |
Cash provided by/(used in) investing activities of discontinued operations | 76,719 | -678 |
Net cash provided by/(used in) investing activities | 5,544 | -12,778 |
Cash flows from financing activities: | ' | ' |
Borrowings on lines of credit | ' | 1,963 |
Payments on lines of credit | ' | -8,042 |
Borrowings on long-term debt | 70,966 | 47,879 |
Payments on long-term debt | -50,370 | -23,200 |
Stock option exercises and employee stock purchases | 3,138 | 3,319 |
Payments of debt issuance costs | -335 | ' |
Cash provided by financing activities of continuing operations | 23,399 | 21,919 |
Cash provided by financing activities of discontinued operations | ' | ' |
Net cash provided by financing activities | 23,399 | 21,919 |
Effect of exchange rate changes on cash | -4,924 | -5,919 |
Net increase in cash and cash equivalents | 12,708 | 26,538 |
Cash and cash equivalents, beginning of period | 57,280 | 41,823 |
Cash and cash equivalents, end of period | 69,988 | 68,361 |
Cash paid during the period for: | ' | ' |
Interest | 12,894 | 13,431 |
Income taxes | 6,516 | 2,731 |
Non-cash investing activities: | ' | ' |
Capital expenditures accrued at period end | 3,453 | 5,750 |
Non-cash financing activities: | ' | ' |
Debt issued for purchase of non-controlling interest | $17,388 | ' |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |
Jan. 31, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
1 | Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statement presentation. | ||
Quiksilver, Inc. and its subsidiaries (the “Company”) has included all adjustments, consisting only of normal and recurring adjustments, necessary for a fair presentation of the results of operations for the first quarter (three months) ended January 31, 2014 and 2013. References to any particular fiscal year refer to the year ended October 31 of that year (for example, “fiscal 2014” refers to the year ending October 31, 2014). The condensed consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements and notes for the fiscal year ended October 31, 2013 included in the Company’s most recent Annual Report on Form 10-K. Interim results are not necessarily indicative of results for the full year. | ||
In November 2013, the Company sold Mervin Manufacturing, Inc., its subsidiary that manufactured snowboards and related products under the “Lib Technologies” and “GNU” brands, (“Mervin”). In January 2014, the Company sold substantially all of the assets of Hawk Designs, Inc., its subsidiary that owned and operated the “Hawk” brand, (“Hawk”). Additionally, the Company is pursuing strategic alternatives for its majority stake in the U.K.-based Surfdome Shop, Ltd., a multi-brand e-commerce retailer, (“Surfdome”). Each of the Company’s Mervin, Hawk and Surfdome businesses were classified as “held for sale” as of October 31, 2013 and are presented as discontinued operations in the accompanying condensed consolidated financial statements for all periods presented. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended | |
Jan. 31, 2014 | ||
Accounting Changes And Error Corrections [Abstract] | ' | |
New Accounting Pronouncements | ' | |
2 | New Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 provides guidance on the presentation of unrecognized tax benefits, reflecting the manner in which an entity would settle, at the reporting date, any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This accounting standard will be effective for the Company beginning November 1, 2014, with early adoption permitted. The Company did early adopt this guidance effective November 1, 2013 and the adoption did not have a material impact on the Company’s consolidated financial position or results of operations. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Information | ' | ||||||||
3 | Segment Information | ||||||||
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company operates in the outdoor market of the action sports industry in which the Company designs, markets and distributes apparel, footwear, accessories and related products. The Company currently operates in four segments: the Americas, EMEA, and APAC, each of which sells a full range of the Company’s products, as well as Corporate Operations. The Americas segment, consisting of North, South and Central America, includes revenues primarily from the United States, Canada, Brazil and Mexico. The EMEA segment, consisting of Europe, the Middle East and Africa, includes revenues primarily from continental Europe, the United Kingdom, Russia and South Africa. The APAC segment, consisting of Asia and the Pacific Rim, includes revenues primarily from Australia, Japan, New Zealand, South Korea, Taiwan and Indonesia. Costs that support all segments, including trademark protection, trademark maintenance and licensing functions, are part of Corporate Operations. Corporate Operations also includes sourcing income and gross profit earned from the Company’s licensees. | |||||||||
Information related to the Company’s operating segments for the first quarter of fiscal 2014 and 2013 is as follows: | |||||||||
First Quarter Ended January 31, | |||||||||
In thousands | 2014 | 2013 | |||||||
Revenues, net: | |||||||||
Americas | $ | 173,165 | $ | 182,636 | |||||
EMEA | 149,397 | 156,174 | |||||||
APAC | 69,875 | 72,695 | |||||||
Corporate Operations | 175 | 684 | |||||||
$ | 392,612 | $ | 412,189 | ||||||
Gross profit: | |||||||||
Americas | $ | 75,110 | $ | 78,121 | |||||
EMEA | 87,849 | 91,734 | |||||||
APAC | 36,808 | 39,236 | |||||||
Corporate Operations | 69 | 682 | |||||||
$ | 199,836 | $ | 209,773 | ||||||
SG&A expense: | |||||||||
Americas | $ | 83,692 | $ | 85,187 | |||||
EMEA | 76,712 | 77,215 | |||||||
APAC | 32,615 | 37,192 | |||||||
Corporate Operations | 10,765 | 16,745 | |||||||
$ | 203,784 | $ | 216,339 | ||||||
Asset impairments: | |||||||||
Americas | $ | 222 | $ | 1,621 | |||||
EMEA | 661 | 1,547 | |||||||
APAC | — | — | |||||||
Corporate Operations | — | — | |||||||
$ | 883 | $ | 3,168 | ||||||
Operating (loss)/income: | |||||||||
Americas | $ | (8,804 | ) | $ | (8,687 | ) | |||
EMEA | 10,476 | 12,972 | |||||||
APAC | 4,193 | 2,044 | |||||||
Corporate Operations | (10,696 | ) | (16,063 | ) | |||||
$ | (4,831 | ) | $ | (9,734 | ) | ||||
January 31, | October 31, | ||||||||
2014 | 2013 | ||||||||
Identifiable assets: | |||||||||
Americas | $ | 581,417 | $ | 581,021 | |||||
EMEA | 747,013 | 744,936 | |||||||
APAC | 202,359 | 222,542 | |||||||
Corporate Operations | 70,366 | 71,971 | |||||||
$ | 1,601,155 | $ | 1,620,470 | ||||||
Earnings_per_Share_and_StockBa
Earnings per Share and Stock-Based Compensation | 3 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Earnings per Share and Stock-Based Compensation | ' | ||||||||||||||||
4 | Earnings per Share and Stock-Based Compensation | ||||||||||||||||
The Company reports basic and diluted earnings per share (“EPS”). Basic EPS is based on the weighted average number of shares outstanding during the period, while diluted EPS additionally includes the dilutive effect of the Company’s outstanding stock options, warrants and shares of restricted stock computed using the treasury stock method. | |||||||||||||||||
The table below sets forth the reconciliation of the denominator of each net loss per share calculation for the first quarter of fiscal 2014 and 2013: | |||||||||||||||||
First Quarter Ended January 31, | |||||||||||||||||
In thousands | 2014 | 2013 | |||||||||||||||
Shares used in computing basic net loss per share | 169,747 | 165,767 | |||||||||||||||
Dilutive effect of stock options and restricted stock(1) | — | — | |||||||||||||||
Dilutive effect of stock warrants(1) | — | — | |||||||||||||||
Shares used in computing diluted net loss per share | 169,747 | 165,767 | |||||||||||||||
-1 | For the first quarter of fiscal 2014 and 2013, the shares used in computing diluted net loss per share do not include 3,974,000 and 3,391,000, respectively, of dilutive stock options and shares of restricted stock, nor 19,913,000 and 15,140,000, respectively, of dilutive warrant shares, as the effect is anti-dilutive given the Company’s net loss from continuing operations. For the first quarter of fiscal 2014 and 2013, additional stock options outstanding of 3,856,000 and 7,932,000, respectively, and additional warrant shares outstanding of 5,741,000 and 10,514,000, respectively, were excluded from the calculation of diluted EPS, as their effect would have been anti-dilutive based on the application of the treasury stock method. | ||||||||||||||||
The Company accounts for stock-based compensation under the fair value recognition provisions of Accounting Standards Codification (“ASC”) 718, “Compensation – Stock Compensation.” Stock-based compensation expense is included in selling, general and administrative expense (“SG&A”). | |||||||||||||||||
The Company has previously granted performance-based restricted stock units and options to certain key employees and executives. Vesting of these awards is contingent upon a required service period and the Company’s achievement of specified common stock price thresholds. In addition, the vesting of a portion of the options can be accelerated based upon the Company’s achievement of specified annual performance targets. The Company believes that the granting of these awards serves to further align the interests of its employees and executives with those of its stockholders. Based on the vesting contingencies in the awards, the Company used a Monte-Carlo simulation in order to determine the grant date fair values of the awards. There were no such awards granted in the first quarter of fiscal 2014. For the first quarter of fiscal 2013, the assumptions used in the Monte-Carlo simulations for the restricted stock units granted included a risk-free interest rate of 0.5%, volatility of 73% to 89%, and a zero dividend yield. The weighted average fair value of the restricted stock units granted in the first quarter of fiscal 2013 was $3.39. There were no performance options granted in the first quarter of fiscal 2014 or 2013. | |||||||||||||||||
Activity related to these performance-based equity instruments for the first quarter of fiscal 2014 was as follows: | |||||||||||||||||
Performance | Performance | ||||||||||||||||
Options | Restricted | ||||||||||||||||
Stock Units | |||||||||||||||||
Outstanding, October 31, 2013 | 688,000 | 11,675,782 | |||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (12,000 | ) | — | ||||||||||||||
Canceled | (36,000 | ) | (30,937 | ) | |||||||||||||
Outstanding, January 31, 2014 | 640,000 | 11,644,845 | |||||||||||||||
As of January 31, 2014, 82,000 of the 640,000 oustanding performance options were exercisable and none of the performance restricted stock units were exercisable. As of January 31, 2014, the Company had unrecognized compensation expense, net of estimated forfeitures, of approximately $0.7 million related to the performance options and approximately $6 million related to restricted stock units. This unrecognized compensation expense is expected to be recognized over a weighted average period of approximately 2 years and 0.4 years, respectively. | |||||||||||||||||
For non-performance-based options, the Company uses the Black-Scholes option-pricing model to value compensation expense. Forfeitures are estimated at the date of grant based on historical rates and reduce the compensation expense recognized. The expected term of options granted is derived from historical data on employee exercises. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant. Expected volatility is based on the historical volatility of the Company’s stock. For the first quarter of fiscal 2014 and 2013, there were no options granted. The Company records stock-based compensation expense using the graded vested method over the vesting period, which is generally three years. As of January 31, 2014, the Company had approximately $3 million of unrecognized compensation expense for non-performance-based options expected to be recognized over a weighted average period of approximately 2 years. | |||||||||||||||||
Changes in shares under option, excluding performance-based options, for the first quarter of fiscal 2014 were as follows: | |||||||||||||||||
Dollar amounts in thousands, | Shares | Weighted | Weighted | Aggregate | |||||||||||||
except per share amounts | Average | Average | Intrinsic | ||||||||||||||
Price | Life | Value | |||||||||||||||
Outstanding, October 31, 2013 | 8,829,618 | $ | 4.83 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (568,290 | ) | 4.24 | $ | 2,370 | ||||||||||||
Canceled | (626,750 | ) | 8.59 | ||||||||||||||
Outstanding, January 31, 2014 | 7,634,578 | $ | 4.56 | 5.5 | $ | 21,110 | |||||||||||
Options exercisable, January 31, 2014 | 5,633,427 | $ | 4.16 | 4.8 | $ | 18,344 | |||||||||||
Changes in non-vested shares under option, excluding performance-based options, for the first quarter of fiscal 2014 were as follows: | |||||||||||||||||
Shares | Weighted | ||||||||||||||||
Average Grant | |||||||||||||||||
Date Fair Value | |||||||||||||||||
Non-vested, October 31, 2013 | 2,784,826 | $ | 2.95 | ||||||||||||||
Granted | — | — | |||||||||||||||
Vested | (778,675 | ) | 2.28 | ||||||||||||||
Canceled | (5,000 | ) | 3.51 | ||||||||||||||
Non-vested, January 31, 2014 | 2,001,151 | $ | 3.19 | ||||||||||||||
The Company also grants restricted stock and restricted stock units under its 2013 Performance Incentive Plan. Restricted stock issued under this plan generally vests in three years while restricted stock units issued under this plan generally vest upon the Company’s achievement of a specified common stock price threshold . There were no changes in restricted stock for the first quarter of fiscal 2014. | |||||||||||||||||
Compensation expense for restricted stock is determined using the intrinsic value method and forfeitures are estimated at the date of grant based on historical rates and reduce the compensation expense recognized. The Company monitors the probability of meeting the restricted stock performance criteria, if any, and adjusts the amortization period as appropriate. As of January 31, 2014, there had been no acceleration of amortization periods and the Company had approximately $0.3 million of unrecognized compensation expense expected to be recognized over a weighted average period of approximately one year. |
Restricted_Cash
Restricted Cash | 3 Months Ended | |
Jan. 31, 2014 | ||
Receivables [Abstract] | ' | |
Restricted Cash | ' | |
5 | Restricted Cash | |
The Company’s restricted cash balance as of January 31, 2014 was $61 million. Certain of the Company’s debt agreements contain restrictions on what can be done with cash received from the sale of assets. The proceeds received from the Company’s disposition of its Mervin and Hawk businesses during the first quarter of fiscal 2014 are subject to these restrictions. These restrictions generally require such cash to be used for either the repayment of indebtedness or capital expenditures. |
Inventories_net
Inventories, net | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories, net | ' | ||||||||
6 | Inventories, net | ||||||||
Inventories, net consisted of the following as of the dates indicated: | |||||||||
In thousands | January 31, | October 31, | |||||||
2014 | 2013 | ||||||||
Raw materials | $ | 3,993 | $ | 4,725 | |||||
Work in-process | 354 | 681 | |||||||
Finished goods | 355,799 | 332,309 | |||||||
$ | 360,146 | $ | 337,715 | ||||||
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 3 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Intangible Assets and Goodwill | ' | ||||||||||||||||||||||||
7 | Intangible Assets and Goodwill | ||||||||||||||||||||||||
Intangible assets consisted of the following as of the dates indicated: | |||||||||||||||||||||||||
January 31, 2014 | October 31, 2013 | ||||||||||||||||||||||||
In thousands | Gross | Amorti- | Net Book | Gross | Amorti- | Net Book | |||||||||||||||||||
Amount | zation | Value | Amount | zation | Value | ||||||||||||||||||||
Non-amortizable trademarks | $ | 124,088 | $ | — | $ | 124,088 | $ | 124,099 | $ | — | $ | 124,099 | |||||||||||||
Amortizable trademarks | 20,255 | (11,870 | ) | 8,385 | 19,810 | (11,534 | ) | 8,276 | |||||||||||||||||
Amortizable licenses | 11,761 | (11,761 | ) | — | 12,749 | (12,749 | ) | — | |||||||||||||||||
Other amortizable intangibles | 8,278 | (6,086 | ) | 2,192 | 8,185 | (5,964 | ) | 2,221 | |||||||||||||||||
$ | 164,382 | $ | (29,717 | ) | $ | 134,665 | $ | 164,843 | $ | (30,247 | ) | $ | 134,596 | ||||||||||||
The change in non-amortizable trademarks is due primarily to foreign currency exchange fluctuations. Other amortizable intangibles primarily include non-compete agreements, patents and customer relationships. These amortizable intangibles are amortized on a straight-line basis over their estimated useful lives. Certain trademarks will continue to be amortized by the Company using estimated useful lives of 10 to 25 years with no residual values. Intangible amortization expense for each of the first quarters of fiscal 2014 and 2013 was approximately $0.5 million. Annual amortization expense is estimated to be approximately $2 million through fiscal 2017 and approximately $1 million in fiscal 2018 and 2019. | |||||||||||||||||||||||||
A summary of goodwill by segment, and in total, and changes in the carrying amounts, as of the dates indicated are as follows: | |||||||||||||||||||||||||
In thousands | Americas | EMEA | APAC | Consolidated | |||||||||||||||||||||
Gross goodwill | $ | 75,974 | $ | 174,869 | $ | 135,752 | $ | 386,595 | |||||||||||||||||
Accumulated impairment losses | — | — | (129,545 | ) | (129,545 | ) | |||||||||||||||||||
Net goodwill at Nov. 1, 2012 | $ | 75,974 | $ | 174,869 | $ | 6,207 | $ | 257,050 | |||||||||||||||||
Foreign currency translation and other | (1,031 | ) | 5,606 | — | 4,575 | ||||||||||||||||||||
Gross goodwill | 74,943 | 180,475 | 135,752 | 391,170 | |||||||||||||||||||||
Accumulated impairment losses | — | — | (129,545 | ) | (129,545 | ) | |||||||||||||||||||
Net goodwill at Oct. 31, 2013 | $ | 74,943 | $ | 180,475 | $ | 6,207 | $ | 261,625 | |||||||||||||||||
Foreign currency translation and other | (517 | ) | (2,870 | ) | — | (3,387 | ) | ||||||||||||||||||
Gross goodwill | 74,426 | 177,605 | 135,752 | 387,783 | |||||||||||||||||||||
Accumulated impairment losses | — | — | (129,545 | ) | (129,545 | ) | |||||||||||||||||||
Net goodwill at Jan. 31, 2014 | $ | 74,426 | $ | 177,605 | $ | 6,207 | $ | 258,238 | |||||||||||||||||
The table above excludes goodwill recorded from our fiscal 2012 acquisition of Surfdome that has been reclassified to assets held for sale in our consolidated balance sheets. For the first quarter of fiscal 2014, goodwill fluctuated due to the effect of changes in foreign currency exchange rates. |
Income_Taxes
Income Taxes | 3 Months Ended | |
Jan. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Taxes | ' | |
8 | Income Taxes | |
Each reporting period, the Company evaluates the realizability of all of its deferred tax assets in each tax jurisdiction. As of January 31, 2014, the Company continued to maintain a full valuation allowance against its net deferred tax assets in certain jurisdictions in each of its four operating segments due to sustained taxable losses. As a result of the valuation allowances recorded, no tax benefits have been recognized for losses incurred in those tax jurisdictions. | ||
The Company’s sale of the Mervin and Hawk businesses generated income tax expense of approximately $10 million within discontinued operations during the first quarter of fiscal 2014. However, as the Company does not expect to pay income tax after application of available loss carryforwards, an offsetting income tax benefit was recognized within continuing operations. Before this tax benefit, the Company generated income tax expense in the first quarter of fiscal 2014 and 2013 due to being unable to record tax benefits against the losses in certain jurisdictions where we have previously recorded valuation allowances. | ||
As of January 31, 2014, the Company’s liability for uncertain tax positions was approximately $12 million resulting from unrecognized tax benefits, excluding interest and penalties. | ||
If the Company’s positions are favorably sustained by the relevant taxing authority, approximately $11 million, excluding interest and penalties, of uncertain tax position liabilities would favorably impact the Company’s effective tax rate in future periods. | ||
During the next 12 months, it is reasonably possible that the Company’s liability for uncertain tax positions may change by a significant amount as a result of the resolution or payment of uncertain tax positions. The Company believes the outcomes which are reasonably possible within the next 12 months range from a reduction of the liability for unrecognized tax benefits of $9 million to an increase of the liability of $2 million, excluding penalties and interest for its existing tax positions. |
Restructuring_Charges
Restructuring Charges | 3 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||
Restructuring Charges | ' | ||||||||||||
9 | Restructuring Charges | ||||||||||||
In connection with the globalization of its organizational structure and core processes, as well as its overall cost reduction efforts, the Company formulated the Fiscal 2013 Profit Improvement Plan (the “2013 Plan”). The 2013 Plan covers the global operations of the Company, and as the Company continues to evaluate its structure, processes and costs, additional charges may be incurred in the future under the 2013 Plan that are not yet determined. The 2013 Plan is, in many respects, a continuation and acceleration of the Company’s Fiscal 2011 Cost Reduction Plan (the “2011 Plan”). The Company will no longer incur any charges under the 2011 Plan, but will continue to make cash payments on amounts previously accrued under the 2011 Plan. Amounts charged to expense under the 2013 Plan and 2011 Plan were primarily recorded in SG&A with a small portion recorded in cost of goods sold (“COGS”), in the Company’s consolidated statements of operations. | |||||||||||||
Activity and liability balances recorded as part of the 2013 Plan and 2011 Plan were as follows: | |||||||||||||
In thousands | Workforce | Facility | Total | ||||||||||
& Other | |||||||||||||
Balance, November 1, 2012 | $ | 5,335 | $ | 6,856 | $ | 12,191 | |||||||
Charged to expense | 22,671 | 5,838 | 28,509 | ||||||||||
Cash payments | (15,847 | ) | (5,163 | ) | (21,010 | ) | |||||||
Adjustments | — | (592 | ) | (592 | ) | ||||||||
Balance, October 31, 2013 | $ | 12,159 | $ | 6,939 | $ | 19,098 | |||||||
Charged to expense | 2,553 | 570 | 3,123 | ||||||||||
Cash payments | (5,925 | ) | (514 | ) | (6,439 | ) | |||||||
Balance, January 31, 2014 | $ | 8,787 | $ | 6,995 | $ | 15,782 | |||||||
Of the amounts charged to expense during the first quarter of fiscal 2014, the majority related to severance charges within the Americas segment. | |||||||||||||
In addition to the restructuring charges noted above, the Company also recorded approximately $2 million of additional expenses within SG&A during the first quarter of fiscal 2014 related to certain non-core brands that have been discontinued, which are not reflected in the table above. Additionally, the Company recorded severance charges of approximately $3 million within SG&A during the first quarter of fiscal 2013 which were unrelated to the 2013 Plan or the 2011 Plan. |
Debt
Debt | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
10 | Debt | ||||||||
A summary of borrowings under lines of credit and long-term debt as of the dates indicated is as follows: | |||||||||
In thousands | January 31, | October 31, | |||||||
2014 | 2013 | ||||||||
EMEA credit facilities | $ | 25,730 | $ | 21,594 | |||||
2017 Notes | 272,220 | 274,952 | |||||||
ABL Credit Facility | 42,260 | 27,408 | |||||||
2018 Notes | 278,664 | 278,612 | |||||||
2020 Notes | 222,357 | 222,285 | |||||||
Capital lease obligations and other borrowings | 23,417 | 6,449 | |||||||
$ | 864,648 | $ | 831,300 | ||||||
As of January 31, 2014, the Company’s credit facilities allowed for total cash borrowings and letters of credit of $272 million. The total maximum borrowings and actual availability fluctuate with the amount of assets comprising the borrowing base under certain of the credit facilities. At January 31, 2014, the Company had a total of $68 million of direct borrowings and $56 million in letters of credit outstanding. As of January 31, 2014, the effective availability for borrowings remaining under the Company’s credit facilities was $92 million, $53 million of which could also be used for letters of credit in the United States and APAC. In addition to the $92 million of effective availability for borrowings, the Company also had $56 million in additional capacity for letters of credit in EMEA as of January 31, 2014. Many of the Company’s debt agreements contain customary default provisions and restrictive covenants. The Company is in compliance with such covenants. | |||||||||
As of January 31, 2014, the Company’s other borrowings include approximately $17 million of notes payable, approximately $16 million of which is due during fiscal 2014, issued to the former minority interest owners of the Company’s Brazil and Mexico subsidiaries. The Company acquired the remaining minority interests of each of these subsidiaries in November 2013. | |||||||||
The estimated fair values of the Company’s borrowings under lines of credit and long-term debt as of January 31, 2014 was $937 million, compared to a carrying value of $865 million. The fair value of the Company’s long-term debt is calculated based on the market price of the Company’s publicly traded 2020 Notes, the trading prices of the Company’s 2018 Notes and 2017 Notes (all Level 1 inputs) and the carrying values of the Company’s variable rate debt obligations. | |||||||||
The carrying value of the Company’s trade accounts receivable and accounts payable approximates fair value due to their short-term nature. The fair value of fixed assets is determined using a discounted cash flow model which requires Level 3 inputs. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||
11 | Derivative Financial Instruments | ||||||||||||||||
The Company is exposed to gains and losses resulting from fluctuations in foreign currency exchange rates relating to certain sales, royalty income and product purchases of its international subsidiaries that are denominated in currencies other than their functional currencies. The Company is also exposed to foreign currency gains and losses resulting from domestic transactions that are not denominated in U.S. dollars. Furthermore, the Company is exposed to gains and losses resulting from the effect that fluctuations in foreign currency exchange rates have on the reported results in the Company’s consolidated financial statements due to the translation of the operating results and financial position of the Company’s international subsidiaries. As part of its overall strategy to manage the level of exposure to the risk of fluctuations in foreign currency exchange rates, the Company uses various foreign currency exchange contracts and intercompany loans. | |||||||||||||||||
The Company accounts for all of its cash flow hedges under ASC 815, “Derivatives and Hedging,” which requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheet. In accordance with ASC 815, the Company designates forward contracts as cash flow hedges of forecasted purchases of commodities. | |||||||||||||||||
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. As of January 31, 2014, the Company was hedging forecasted transactions expected to occur through June 2015. Assuming January 31, 2014 exchange rates remain constant, $2 million of gains, net of tax, related to hedges of these transactions are expected to be reclassified into earnings over the next 17 months. | |||||||||||||||||
On the date the Company enters into a derivative contract, management designates the derivative as a hedge of the identified exposure. Before entering into various hedge transactions, the Company formally documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy. In this documentation, the Company identifies the asset, liability, firm commitment, or forecasted transaction that has been designated as a hedged item and indicates how the hedging instrument is expected to hedge the risks related to the hedged item. The Company formally measures effectiveness of its hedging relationships both at the hedge inception and on an ongoing basis in accordance with its risk management policy. The Company would discontinue hedge accounting prospectively (i) if management determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item, (ii) when the derivative expires or is sold, terminated, or exercised, (iii) if it becomes probable that the forecasted transaction being hedged by the derivative will not occur, (iv) if a hedged firm commitment no longer meets the definition of a firm commitment, or (v) if management determines that designation of the derivative as a hedge instrument is no longer appropriate. As a result of the expiration, sale, termination, or exercise of derivative contracts, the Company reclassified into earnings a net loss of $0.2 million for the quarter ended January 31, 2014, and a net gain of $1 million for the quarter ended January 31, 2013. | |||||||||||||||||
The Company enters into forward exchange and other derivative contracts with major banks and is exposed to exchange rate losses in the event of nonperformance by these banks. The Company anticipates, however, that these banks will be able to fully satisfy their obligations under the contracts. Accordingly, the Company does not require collateral or other security to support the contracts. | |||||||||||||||||
As of January 31, 2014, the Company had the following outstanding derivative contracts that were entered into to hedge forecasted purchases: | |||||||||||||||||
In thousands | Commodity | Notional | Maturity | Fair | |||||||||||||
Amount | Value | ||||||||||||||||
United States dollars | Inventory | $ | 250,613 | Feb 2014 –June 2015 | $ | 4,473 | |||||||||||
ASC 820, “Fair Value Measurements and Disclosures,” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three levels. These levels are: | |||||||||||||||||
• | Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 assets and liabilities include debt and equity securities traded in an active exchange market, as well as U.S. Treasury securities. | ||||||||||||||||
• | Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
• | Level 3 – Valuation is determined using model-based techniques with significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of third-party pricing services, option-pricing models, discounted cash flow models and similar techniques. | ||||||||||||||||
The Company’s derivative assets and liabilities include foreign exchange derivatives that are measured at fair value using observable market inputs such as forward rates, interest rates, the Company’s credit risk and the Company’s counterparties’ credit risks. Based on these inputs, the Company’s derivative assets and liabilities are classified within Level 2 of the valuation hierarchy. | |||||||||||||||||
The following tables reflect the fair values of assets and liabilities measured and recognized at fair value on a recurring basis on the accompanying condensed consolidated balance sheets as of the dates indicated: | |||||||||||||||||
Fair Value Measurements Using | Assets/(Liabilities) | ||||||||||||||||
In thousands | Level 1 | Level 2 | Level 3 | At Fair Value | |||||||||||||
January 31, 2014: | |||||||||||||||||
Derivative assets: | |||||||||||||||||
Other receivables | $ | — | $ | 4,026 | $ | — | $ | 4,026 | |||||||||
Other assets | — | 521 | — | 521 | |||||||||||||
Derivative liabilities: | |||||||||||||||||
Accrued liabilities | — | (74 | ) | — | (74 | ) | |||||||||||
Total fair value | $ | — | $ | 4,473 | $ | — | $ | 4,473 | |||||||||
October 31, 2013: | |||||||||||||||||
Derivative assets: | |||||||||||||||||
Other receivables | $ | — | $ | 2,026 | $ | — | $ | 2,026 | |||||||||
Other assets | — | 382 | — | 382 | |||||||||||||
Derivative liabilities: | |||||||||||||||||
Accrued liabilities | — | (3,313 | ) | — | (3,313 | ) | |||||||||||
Total fair value | $ | — | $ | (905 | ) | $ | — | $ | (905 | ) | |||||||
Stockholders_Equity_and_Noncon
Stockholders' Equity and Non-controlling Interest | 3 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Stockholders' Equity and Non-controlling Interest | ' | ||||||||||||
12 | Stockholders’ Equity and Non-controlling Interest | ||||||||||||
The following tables summarize the changes in equity attributable to Quiksilver, Inc. and the non-controlling interests of its consolidated subsidiaries: | |||||||||||||
In thousands | Attributable to | Non- | Total | ||||||||||
First quarter ended January 31, 2014: | Quiksilver, | controlling | Stockholders’ | ||||||||||
Inc. | Interest | Equity | |||||||||||
Balance, October 31, 2013 | $ | 369,706 | $ | 17,952 | $ | 387,658 | |||||||
Stock compensation expense | 5,063 | — | 5,063 | ||||||||||
Exercise of stock options | 2,465 | — | 2,465 | ||||||||||
Employee stock purchase plan | 673 | — | 673 | ||||||||||
Transactions with non-controlling interest holders | (10,839 | ) | (5,434 | ) | (16,273 | ) | |||||||
Net income and other comprehensive income/(loss) | 965 | (464 | ) | 501 | |||||||||
Balance, January 31, 2014 | $ | 368,033 | $ | 12,054 | $ | 380,087 | |||||||
First quarter ended January 31, 2013: | |||||||||||||
Balance, October 31, 2012 | $ | 583,310 | $ | 18,926 | $ | 602,236 | |||||||
Stock compensation expense | 7,336 | — | 7,336 | ||||||||||
Exercise of stock options | 2,761 | — | 2,761 | ||||||||||
Employee stock purchase plan | 557 | — | 557 | ||||||||||
Transactions with non-controlling interest holders | (44 | ) | 44 | — | |||||||||
Net loss and other comprehensive (loss)/income | (23,019 | ) | 505 | (22,514 | ) | ||||||||
Balance, January 31, 2013 | $ | 570,901 | $ | 19,475 | $ | 590,376 | |||||||
Litigation_Indemnities_and_Gua
Litigation, Indemnities and Guarantees | 3 Months Ended | |
Jan. 31, 2014 | ||
Commitments And Contingencies Disclosure [Abstract] | ' | |
Litigation, Indemnities and Guarantees | ' | |
13 | Litigation, Indemnities and Guarantees | |
As part of its global operations, the Company may be involved in legal claims involving trademarks, intellectual property, licensing, employment matters, compliance, contracts and other matters incidental to its business. The Company believes the resolution of any such matter, individually and in aggregate, currently threatened or pending will not have a material adverse effect on its financial condition, results of operations or liquidity. | ||
During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These include (i) intellectual property indemnities to the Company’s customers and licensees in connection with the use, sale and/or license of the Company’s products, (ii) indemnities to various lessors in connection with facility leases for certain claims arising from such facilities or leases, (iii) indemnities to vendors and service providers pertaining to claims based on the negligence or willful misconduct of the Company, and (iv) indemnities involving the accuracy of representations and warranties in certain contracts. The duration of these indemnities, commitments and guarantees varies and, in certain cases, may be indefinite. The majority of these indemnities, commitments and guarantees do not provide for any limitation of the maximum potential for future payments the Company could be obligated to make. The Company has not recorded any liability for these indemnities, commitments and guarantees in the accompanying consolidated balance sheets. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
14 | Accumulated Other Comprehensive Income | ||||||||||||
The components of accumulated other comprehensive income include changes in fair value of derivative instruments qualifying as cash flow hedges and foreign currency translation adjustments. The components of accumulated other comprehensive income, net of tax, are as follows: | |||||||||||||
In thousands | Derivative | Foreign | Total | ||||||||||
First quarter ended January 31, 2014: | Instruments | Currency | |||||||||||
Adjustments | |||||||||||||
Balance, October 31, 2013 | $ | (4,591 | ) | $ | 78,509 | $ | 73,918 | ||||||
Net losses reclassified to COGS | 186 | — | 186 | ||||||||||
Changes in fair value, net of tax | 6,107 | (20,715 | ) | (14,608 | ) | ||||||||
Balance, January 31, 2014 | $ | 1,702 | $ | 57,794 | $ | 59,496 | |||||||
First quarter ended January 31, 2013: | |||||||||||||
Balance, October 31, 2012 | $ | 5,756 | $ | 80,656 | $ | 86,412 | |||||||
Net gains reclassified to COGS | (1,135 | ) | — | (1,135 | ) | ||||||||
Net losses reclassified to foreign currency loss | 86 | — | 86 | ||||||||||
Changes in fair value, net of tax | (2,599 | ) | 11,758 | 9,159 | |||||||||
Balance, January 31, 2013 | $ | 2,108 | $ | 92,414 | $ | 94,522 | |||||||
Discontinued_Operations
Discontinued Operations | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||
Discontinued Operations | ' | ||||||||
15 | Discontinued Operations | ||||||||
One of the elements of the Company’s multi-year Profit Improvement Plan involves divesting or exiting certain non-core businesses. In November 2013, the Company completed the sale of Mervin for $58 million, subject to a final working capital adjustment. In January 2014, the Company completed the sale of substantially all of the assets of Hawk for $19 million. These transactions resulted in an after-tax gain of approximately $38 million during the first quarter of fiscal 2014, which is included in income from discontinued operations in the table below. Additionally, the Company continues to pursue strategic alternatives for Surfdome. Each of the Company’s Mervin, Hawk and Surfdome businesses were classified as “held for sale” as of October 31, 2013 and are presented as discontinued operations in the accompanying consolidated financial statements for all periods presented. The operating results of discontinued operations for the first quarters of fiscal 2014 and 2013 are as follows: | |||||||||
First Quarter Ended | |||||||||
January 31, | |||||||||
In thousands | 2014 | 2013 | |||||||
Revenues, net | $ | 20,162 | $ | 18,829 | |||||
Income before income taxes | 48,094 | 900 | |||||||
Provision for income taxes | 10,477 | 275 | |||||||
Income from discontinued operations | 37,617 | 625 | |||||||
Less: net loss/(income) attributable to non- controlling interest | 103 | (186 | ) | ||||||
Income from discontinued operations attributable to Quiksilver, Inc. | $ | 37,720 | $ | 439 | |||||
The components of major assets and liabilities held for sale at January 31, 2014 and October 31, 2013 are as follows: | |||||||||
January 31, | October 31, | ||||||||
In thousands | 2014 | 2013 | |||||||
Assets: | |||||||||
Receivables, net | $ | 369 | $ | 24,229 | |||||
Inventories Inventories | 12,865 | 25,915 | |||||||
Goodwill | 16,821 | 16,109 | |||||||
Other | 7,336 | 9,388 | |||||||
$ | 37,391 | $ | 75,641 | ||||||
Liabilities: | |||||||||
Accounts payable | $ | 6,706 | $ | 13,039 | |||||
Accrued liabilities | 2,369 | 3,381 | |||||||
Other | 1,577 | 1,719 | |||||||
$ | 10,652 | $ | 18,139 | ||||||
Total assets held for sale as of January 31, 2014 and October 31, 2013 by geographical segment was as follows: | |||||||||
January 31, | October 31, | ||||||||
In thousands | 2014 | 2013 | |||||||
Americas | $ | — | $ | 27,398 | |||||
EMEA | 37,391 | 47,588 | |||||||
APAC | — | 655 | |||||||
$ | 37,391 | $ | 75,641 | ||||||
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 3 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Condensed Consolidating Financial Information | ' | ||||||||||||||||||||||||
16 | Condensed Consolidating Financial Information | ||||||||||||||||||||||||
In July 2013, the Company issued $225 million aggregate principal amount of its 2020 Notes. These notes were issued in a private offering that was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Secruities Act”). They were offered within the United States only to qualified institutional buyers in accordance with Rule 144A under the Securities Act, and outside of the United States only to non-U.S. investors in accordance with Regulation S under the Securities Act. In November 2013, these notes were exchanged for publicly registered notes with identical terms. Obligations under the Company’s 2020 Notes are fully and unconditionally guaranteed by certain of its existing 100% owned domestic subsidiaries. | |||||||||||||||||||||||||
In November 2013, the Company sold Mervin, a guarantor subsidiary, and in January 2014, the Company sold substantially all of the assets of Hawk, also a guarantor subsidiary. These subsidiaries continue to be presented in the “Guarantor Subsidiaries” column in the following condensed consolidating financial information where applicable. See note 15, “Discontinued Operations,” for further discussion regarding the disposition of these businesses. | |||||||||||||||||||||||||
The Company is required to present condensed consolidating financial information for Quiksilver, Inc. and its domestic subsidiaries within the notes to the condensed consolidated financial statements in accordance with the criteria established for parent companies in the SEC’s Regulation S-X, Rule 3-10(f). The following condensed consolidating financial information presents the results of operations, financial position and cash flows of Quiksilver Inc., QS Wholesale, Inc., the 100% owned guarantor subsidiaries, the non-guarantor subsidiaries and the eliminations necessary to arrive at the information for the Company on a consolidated basis as of January 31, 2014 and October 31, 2013 and for the first quarters of fiscal 2014 and 2013. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. The Company has applied the estimated consolidated annual effective income tax rate to both the guarantor and non-guarantor subsidiaries, adjusting for any discrete items, for interim reporting purposes. In the Company’s consolidated financial statements for the fiscal year ending October 31, 2014, management will apply the actual income tax rates to both the guarantor and non-guarantor subsidiaries. These interim tax rates may differ from the actual annual effective income tax rates for both the guarantor and non-guarantor subsidiaries. | |||||||||||||||||||||||||
QUIKSILVER, INC. | |||||||||||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||||||
First Quarter Ended January 31, 2014 | |||||||||||||||||||||||||
In thousands | Quiksilver, Inc. | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||||
Revenues, net | $ | 116 | $ | 84,004 | $ | 97,975 | $ | 269,770 | $ | (59,253 | ) | $ | 392,612 | ||||||||||||
Cost of goods sold | — | 50,268 | 67,704 | 119,784 | (44,980 | ) | 192,776 | ||||||||||||||||||
Gross profit | 116 | 33,736 | 30,271 | 149,986 | (14,273 | ) | 199,836 | ||||||||||||||||||
Selling, general and administrative expense | 9,025 | 55,966 | 22,668 | 121,057 | (4,932 | ) | 203,784 | ||||||||||||||||||
Asset impairments | — | — | 222 | 661 | — | 883 | |||||||||||||||||||
Operating (loss)/income | (8,909 | ) | (22,230 | ) | 7,381 | 28,268 | (9,341 | ) | (4,831 | ) | |||||||||||||||
Interest expense, net | 11,600 | 1,010 | — | 6,810 | — | 19,420 | |||||||||||||||||||
Foreign currency loss/(gain) | 36 | (10 | ) | (224 | ) | 3,026 | — | 2,828 | |||||||||||||||||
Equity in earnings | (35,932 | ) | 74 | — | — | 35,858 | — | ||||||||||||||||||
Income/(loss) before (benefit)/provision for income taxes | 15,387 | (23,304 | ) | 7,605 | 18,432 | (45,199 | ) | (27,079 | ) | ||||||||||||||||
(Benefit)/provision for income taxes | — | (6,169 | ) | (3,945 | ) | 5,729 | — | (4,385 | ) | ||||||||||||||||
Income/(loss) from continuing operations | 15,387 | (17,135 | ) | 11,550 | 12,703 | (45,199 | ) | (22,694 | ) | ||||||||||||||||
Income from discontinued operations | — | 23,922 | 13,531 | 164 | — | 37,617 | |||||||||||||||||||
Net income | 15,387 | 6,787 | 25,081 | 12,867 | (45,199 | ) | 14,923 | ||||||||||||||||||
Net loss attributable to non-controlling interest | — | — | — | 464 | — | 464 | |||||||||||||||||||
Net income attributable to Quiksilver, Inc. | 15,387 | 6,787 | 25,081 | 13,331 | (45,199 | ) | 15,387 | ||||||||||||||||||
Other comprehensive loss | (14,422 | ) | — | — | (14,422 | ) | 14,422 | (14,422 | ) | ||||||||||||||||
Comprehensive income/(loss) attributable to Quiksilver, Inc. | $ | 965 | $ | 6,787 | $ | 25,081 | $ | (1,091 | ) | $ | (30,777 | ) | $ | 965 | |||||||||||
QUIKSILVER, INC. | |||||||||||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||||||
First Quarter Ended January 31, 2013 | |||||||||||||||||||||||||
In thousands | Quiksilver, Inc. | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||||
Revenues, net | $ | 116 | $ | 88,519 | $ | 110,462 | $ | 281,846 | $ | (68,754 | ) | $ | 412,189 | ||||||||||||
Cost of goods sold | — | 52,603 | 87,298 | 125,699 | (63,184 | ) | 202,416 | ||||||||||||||||||
Gross profit | 116 | 35,916 | 23,164 | 156,147 | (5,570 | ) | 209,773 | ||||||||||||||||||
Selling, general and administrative expense | 15,975 | 35,959 | 35,342 | 135,867 | (6,804 | ) | 216,339 | ||||||||||||||||||
Asset impairments | — | — | 1,335 | 1,833 | — | 3,168 | |||||||||||||||||||
Operating (loss)/income | (15,859 | ) | (43 | ) | (13,513 | ) | 18,447 | 1,234 | (9,734 | ) | |||||||||||||||
Interest expense, net | 7,269 | 1,469 | — | 6,763 | — | 15,501 | |||||||||||||||||||
Foreign currency loss | 154 | 14 | 64 | 2,833 | — | 3,065 | |||||||||||||||||||
Equity in earnings | 7,847 | (204 | ) | — | — | (7,643 | ) | — | |||||||||||||||||
(Loss)/income before (benefit)/provision for income taxes | (31,129 | ) | (1,322 | ) | (13,577 | ) | 8,851 | 8,877 | (28,300 | ) | |||||||||||||||
(Benefit)/provision for income taxes | — | (1,187 | ) | 90 | 4,046 | — | 2,949 | ||||||||||||||||||
(Loss)/income from continuing operations | (31,129 | ) | (135 | ) | (13,667 | ) | 4,805 | 8,877 | (31,249 | ) | |||||||||||||||
(Loss)/income from discontinued operations | — | — | (170 | ) | 769 | 26 | 625 | ||||||||||||||||||
Net (loss)/income | (31,129 | ) | (135 | ) | (13,837 | ) | 5,574 | 8,903 | (30,624 | ) | |||||||||||||||
Net income attributable to non-controlling interest | — | — | — | (505 | ) | — | (505 | ) | |||||||||||||||||
Net (loss)/income attributable to Quiksilver, Inc. | (31,129 | ) | (135 | ) | (13,837 | ) | 5,069 | 8,903 | (31,129 | ) | |||||||||||||||
Other comprehensive income | 8,110 | — | — | 8,110 | (8,110 | ) | 8,110 | ||||||||||||||||||
Comprehensive (loss)/income attributable to Quiksilver, Inc. | $ | (23,019 | ) | $ | (135 | ) | $ | (13,837 | ) | $ | 13,179 | $ | 793 | $ | (23,019 | ) | |||||||||
QUIKSILVER, INC. | |||||||||||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
January 31, 2014 | |||||||||||||||||||||||||
In thousands | Quiksilver, Inc. | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 34 | $ | 7,258 | $ | (1,939 | ) | $ | 64,635 | $ | — | $ | 69,988 | ||||||||||||
Restricted cash | — | 60,214 | — | 403 | — | 60,617 | |||||||||||||||||||
Trade accounts receivable, net | — | 70,576 | 35,269 | 232,878 | — | 338,723 | |||||||||||||||||||
Other receivables | 58 | 2,746 | 3,715 | 20,759 | — | 27,278 | |||||||||||||||||||
Inventories, net | — | 52,408 | 101,772 | 236,575 | (30,609 | ) | 360,146 | ||||||||||||||||||
Deferred income taxes - current | — | 24,624 | — | 6,048 | (21,109 | ) | 9,563 | ||||||||||||||||||
Prepaid expenses and other current assets | 2,433 | 5,914 | 3,614 | 17,282 | — | 29,243 | |||||||||||||||||||
Intercompany balances | — | 176,329 | — | — | (176,329 | ) | — | ||||||||||||||||||
Current portion of assets held for sale | — | — | — | 13,676 | — | 13,676 | |||||||||||||||||||
Total current assets | 2,525 | 400,069 | 142,431 | 592,256 | (228,047 | ) | 909,234 | ||||||||||||||||||
Fixed assets, net | 21,782 | 33,330 | 21,750 | 148,052 | — | 224,914 | |||||||||||||||||||
Intangible assets, net | 4,962 | 44,362 | 1,121 | 84,220 | — | 134,665 | |||||||||||||||||||
Goodwill | — | 103,880 | 7,676 | 146,682 | — | 258,238 | |||||||||||||||||||
Other assets | 8,135 | 5,546 | 992 | 35,716 | — | 50,389 | |||||||||||||||||||
Deferred income taxes long-term | 19,786 | — | — | 1,716 | (21,502 | ) | — | ||||||||||||||||||
Investment in subsidiaries | 985,746 | 5,960 | — | — | (991,706 | ) | — | ||||||||||||||||||
Assets held for sale, net of current portion | — | — | — | 23,715 | — | 23,715 | |||||||||||||||||||
Total assets | $ | 1,042,936 | $ | 593,147 | $ | 173,970 | $ | 1,032,357 | $ | (1,241,255 | ) | $ | 1,601,155 | ||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | 1,524 | $ | 38,976 | $ | 20,565 | $ | 106,940 | $ | — | $ | 168,005 | |||||||||||||
Accrued liabilities | 30,232 | 15,994 | 6,665 | 66,866 | — | 119,757 | |||||||||||||||||||
Current portion of long-term debt | — | 15,798 | — | 27,626 | — | 43,424 | |||||||||||||||||||
Income taxes payable | — | 1,185 | — | 728 | — | 1,913 | |||||||||||||||||||
Deferred income taxes - current | 20,365 | — | 744 | — | (21,109 | ) | — | ||||||||||||||||||
Intercompany balances | 121,442 | — | 30,302 | 24,585 | (176,329 | ) | — | ||||||||||||||||||
Current portion of assets held for sale | — | — | — | 9,075 | — | 9,075 | |||||||||||||||||||
Total current liabilities | 173,563 | 71,953 | 58,276 | 235,820 | (197,438 | ) | 342,174 | ||||||||||||||||||
Long-term debt, net of current portion | 501,021 | 23,590 | — | 296,613 | — | 821,224 | |||||||||||||||||||
Other long-term liabilities | 319 | 5,714 | 8,456 | 20,014 | — | 34,503 | |||||||||||||||||||
Deferred income taxes long-term | — | 41,039 | 2,053 | — | (21,502 | ) | 21,590 | ||||||||||||||||||
Assets held for sale, net of current portion | — | — | — | 1,577 | — | 1,577 | |||||||||||||||||||
Total liabilities | 674,903 | 142,296 | 68,785 | 554,024 | (218,940 | ) | 1,221,068 | ||||||||||||||||||
Stockholders’/invested equity | 368,033 | 450,851 | 105,185 | 466,279 | (1,022,315 | ) | 368,033 | ||||||||||||||||||
Non-controlling interest | — | — | — | 12,054 | — | 12,054 | |||||||||||||||||||
Total liabilities and equity | $ | 1,042,936 | $ | 593,147 | $ | 173,970 | $ | 1,032,357 | $ | (1,241,255 | ) | $ | 1,601,155 | ||||||||||||
QUIKSILVER, INC. | |||||||||||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
October 31, 2013 | |||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 35 | $ | 3,733 | $ | 296 | $ | 53,216 | $ | — | $ | 57,280 | |||||||||||||
Trade accounts receivable, net | — | 83,991 | 48,230 | 279,417 | — | 411,638 | |||||||||||||||||||
Other receivables | 19 | 5,613 | 2,007 | 15,667 | — | 23,306 | |||||||||||||||||||
Inventories, net | — | 43,405 | 93,074 | 224,695 | (23,459 | ) | 337,715 | ||||||||||||||||||
Deferred income taxes - current | — | 24,624 | — | 6,482 | (21,109 | ) | 9,997 | ||||||||||||||||||
Prepaid expenses and other current assets | 3,372 | 3,271 | 3,752 | 13,729 | — | 24,124 | |||||||||||||||||||
Intercompany balances | — | 173,547 | — | — | (173,547 | ) | — | ||||||||||||||||||
Current portion of assets held for sale | — | — | 26,051 | 25,475 | (330 | ) | 51,196 | ||||||||||||||||||
Total current assets | 3,426 | 338,184 | 173,410 | 618,681 | (218,445 | ) | 915,256 | ||||||||||||||||||
Fixed assets, net | 21,378 | 35,152 | 21,816 | 152,915 | — | 231,261 | |||||||||||||||||||
Intangible assets, net | 4,487 | 44,596 | 1,154 | 84,359 | — | 134,596 | |||||||||||||||||||
Goodwill | — | 103,880 | 7,675 | 150,070 | — | 261,625 | |||||||||||||||||||
Other assets | 8,025 | 5,654 | 1,096 | 38,512 | — | 53,287 | |||||||||||||||||||
Deferred income taxes long-term | 21,085 | — | — | 2,111 | (23,196 | ) | — | ||||||||||||||||||
Investment in subsidiaries | 949,814 | 8,795 | — | — | (958,609 | ) | — | ||||||||||||||||||
Assets held for sale, net of current portion | — | — | 1,676 | 22,769 | — | 24,445 | |||||||||||||||||||
Total assets | $ | 1,008,215 | $ | 536,261 | $ | 206,827 | $ | 1,069,417 | $ | (1,200,250 | ) | $ | 1,620,470 | ||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | 4,222 | $ | 51,283 | $ | 35,910 | $ | 110,260 | $ | — | $ | 201,675 | |||||||||||||
Accrued liabilities | 17,900 | 9,921 | 6,929 | 86,795 | — | 121,545 | |||||||||||||||||||
Current portion of long-term debt | — | — | — | 23,488 | — | 23,488 | |||||||||||||||||||
Income taxes payable | — | 121 | — | 3,791 | — | 3,912 | |||||||||||||||||||
Deferred income taxes - current | 20,365 | — | 744 | — | (21,109 | ) | — | ||||||||||||||||||
Intercompany balances | 92,815 | — | 47,424 | 33,308 | (173,547 | ) | — | ||||||||||||||||||
Current portion of assets held for sale | 689 | — | 3,773 | 11,958 | — | 16,420 | |||||||||||||||||||
Total current liabilities | 135,991 | 61,325 | 94,780 | 269,600 | (194,656 | ) | 367,040 | ||||||||||||||||||
Long-term debt, net of current portion | 500,896 | — | — | 306,916 | — | 807,812 | |||||||||||||||||||
Other long-term liabilities | 1,622 | 6,012 | 8,946 | 19,765 | — | 36,345 | |||||||||||||||||||
Deferred income taxes long-term | — | 41,039 | 2,053 | — | (23,196 | ) | 19,896 | ||||||||||||||||||
Assets held for sale, net of current portion | — | — | 187 | 1,532 | — | 1,719 | |||||||||||||||||||
Total liabilities | 638,509 | 108,376 | 105,966 | 597,813 | (217,852 | ) | 1,232,812 | ||||||||||||||||||
Stockholders’/invested equity | 369,706 | 427,885 | 100,861 | 453,652 | (982,398 | ) | 369,706 | ||||||||||||||||||
Non-controlling interest | — | — | — | 17,952 | — | 17,952 | |||||||||||||||||||
Total liabilities and equity | $ | 1,008,215 | $ | 536,261 | $ | 206,827 | $ | 1,069,417 | $ | (1,200,250 | ) | $ | 1,620,470 | ||||||||||||
QUIKSILVER, INC. | |||||||||||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
First Quarter Ended January 31, 2014 | |||||||||||||||||||||||||
In thousands | Quiksilver, Inc. | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||
Net income | $ | 15,387 | $ | 6,787 | $ | 25,081 | $ | 12,867 | $ | (45,199 | ) | $ | 14,923 | ||||||||||||
Adjustments to reconcile net income to net cash (used in)/provided by operating activities: | |||||||||||||||||||||||||
Income from discontinued operations | — | (23,922 | ) | (13,531 | ) | (164 | ) | — | (37,617 | ) | |||||||||||||||
Depreciation and Amortization | 585 | 2,589 | 1,330 | 6,041 | — | 10,545 | |||||||||||||||||||
Stock-based compensation | 5,063 | — | — | — | — | 5,063 | |||||||||||||||||||
Provision for doubtful accounts | — | 1,088 | (209 | ) | 783 | — | 1,662 | ||||||||||||||||||
Asset impairments | — | — | 222 | 661 | — | 883 | |||||||||||||||||||
Equity in earnings | (35,932 | ) | 74 | — | 352 | 35,858 | 352 | ||||||||||||||||||
Non-cash interest expense | 462 | 239 | — | 213 | — | 914 | |||||||||||||||||||
Deferred income taxes | — | — | — | 5 | — | 5 | |||||||||||||||||||
Other adjustments to reconcile net income | 35 | (9 | ) | (219 | ) | 2,992 | — | 2,799 | |||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||
Trade accounts receivable | — | 12,327 | 13,169 | 38,707 | — | 64,203 | |||||||||||||||||||
Inventories | — | (9,271 | ) | (2,884 | ) | (29,849 | ) | 9,341 | (32,663 | ) | |||||||||||||||
Other operating assets and liabilities | 12,141 | (11,998 | ) | (16,366 | ) | (18,962 | ) | — | (35,185 | ) | |||||||||||||||
Cash (used in)/provided by operating activities of continuing operations | (2,259 | ) | (22,096 | ) | 6,593 | 13,646 | — | (4,116 | ) | ||||||||||||||||
Cash used in operating activities of discontinued operations | — | — | (1,861 | ) | (5,334 | ) | — | (7,195 | ) | ||||||||||||||||
Net cash (used in)/provided by operating activities | (2,259 | ) | (22,096 | ) | 4,732 | 8,312 | — | (11,311 | ) | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||
Capital expenditures | (1,970 | ) | (2,397 | ) | (1,299 | ) | (4,892 | ) | — | (10,558 | ) | ||||||||||||||
Changes in restricted cash | — | (60,214 | ) | — | (403 | ) | — | (60,617 | ) | ||||||||||||||||
Cash used in investing activities of continuing operations | (1,970 | ) | (62,611 | ) | (1,299 | ) | (5,295 | ) | — | (71,175 | ) | ||||||||||||||
Cash provided by/(used in) investing activities of discontinued operations | — | 58,060 | 18,991 | (332 | ) | — | 76,719 | ||||||||||||||||||
Net cash (used in)/provided by investing activities | (1,970 | ) | (4,551 | ) | 17,692 | (5,627 | ) | — | 5,544 | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Borrowings on long-term debt | — | 40,500 | — | 30,466 | — | 70,966 | |||||||||||||||||||
Payments on long-term debt | — | (18,500 | ) | — | (31,870 | ) | — | (50,370 | ) | ||||||||||||||||
Stock option exercises and employee stock purchases | 3,138 | — | — | — | — | 3,138 | |||||||||||||||||||
Payments of debt issuance costs | (373 | ) | 38 | — | — | — | (335 | ) | |||||||||||||||||
Intercompany | 1,463 | 8,134 | (24,659 | ) | 15,062 | — | — | ||||||||||||||||||
Cash provided by/(used in) financing activities of continuing operations | 4,228 | 30,172 | (24,659 | ) | 13,658 | — | 23,399 | ||||||||||||||||||
Cash provided by financing activities of discontinued operations | — | — | — | — | — | — | |||||||||||||||||||
Net cash provided by/(used in) financing activities | 4,228 | 30,172 | (24,659 | ) | 13,658 | — | 23,399 | ||||||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (4,924 | ) | — | (4,924 | ) | |||||||||||||||||
Net (decrease)/increase in cash and cash equivalents | (1 | ) | 3,525 | (2,235 | ) | 11,419 | — | 12,708 | |||||||||||||||||
Cash and cash equivalents, beginning of period | 35 | 3,733 | 296 | 53,216 | — | 57,280 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 34 | $ | 7,258 | $ | (1,939 | ) | $ | 64,635 | $ | — | $ | 69,988 | ||||||||||||
QUIKSILVER, INC. | |||||||||||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
First Quarter Ended January 31, 2013 | |||||||||||||||||||||||||
In thousands | Quiksilver, Inc. | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||
Net (loss)/income | $ | (31,129 | ) | $ | (135 | ) | $ | (13,837 | ) | $ | 5,574 | $ | 8,903 | $ | (30,624 | ) | |||||||||
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | |||||||||||||||||||||||||
Loss/(income) from discontinued operations | — | — | 170 | (769 | ) | (26 | ) | (625 | ) | ||||||||||||||||
Depreciation and Amortization | 445 | 2,789 | 1,220 | 7,489 | — | 11,943 | |||||||||||||||||||
Stock-based compensation | 7,336 | — | — | — | — | 7,336 | |||||||||||||||||||
Provision for doubtful accounts | — | 226 | (1,427 | ) | 2,449 | — | 1,248 | ||||||||||||||||||
Asset impairments | — | — | 1,335 | 1,833 | — | 3,168 | |||||||||||||||||||
Equity in earnings | 7,847 | (204 | ) | — | (11 | ) | (7,643 | ) | (11 | ) | |||||||||||||||
Non-cash interest expense | 392 | 330 | — | 189 | — | 911 | |||||||||||||||||||
Deferred income taxes | — | — | — | 1,135 | — | 1,135 | |||||||||||||||||||
Other adjustments to reconcile net (loss)/income | 154 | — | (105 | ) | 2,612 | — | 2,661 | ||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||
Trade accounts receivable | — | 14,023 | 35,553 | 35,962 | — | 85,538 | |||||||||||||||||||
Inventories | — | (19,663 | ) | (6,439 | ) | (41,888 | ) | (1,415 | ) | (69,405 | ) | ||||||||||||||
Other operating assets and liabilities | 1,707 | 7,235 | (13,751 | ) | 1,496 | — | (3,313 | ) | |||||||||||||||||
Cash (used in)/provided by operating activities of continuing operations | (13,248 | ) | 4,601 | 2,719 | 16,071 | (181 | ) | 9,962 | |||||||||||||||||
Cash provided by operating activities of discontinued operations | — | — | 8,512 | 4,661 | 181 | 13,354 | |||||||||||||||||||
Net cash (used in)/provided by operating activities | (13,248 | ) | 4,601 | 11,231 | 20,732 | — | 23,316 | ||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||
Capital expenditures | (1,708 | ) | (1,517 | ) | (1,547 | ) | (7,328 | ) | — | (12,100 | ) | ||||||||||||||
Cash used in investing activities of continuing operations | (1,708 | ) | (1,517 | ) | (1,547 | ) | (7,328 | ) | — | (12,100 | ) | ||||||||||||||
Cash used in investing activities of discontinued operations | — | — | (33 | ) | (645 | ) | — | (678 | ) | ||||||||||||||||
Net cash used in investing activities | (1,708 | ) | (1,517 | ) | (1,580 | ) | (7,973 | ) | — | (12,778 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Borrowings on lines of credit | — | — | — | 1,963 | — | 1,963 | |||||||||||||||||||
Payments on lines of credit | — | — | — | (8,042 | ) | — | (8,042 | ) | |||||||||||||||||
Borrowings on long-term debt | — | 23,000 | — | 24,879 | — | 47,879 | |||||||||||||||||||
Payments on long-term debt | — | (23,200 | ) | — | — | — | (23,200 | ) | |||||||||||||||||
Stock option exercises and employee stock purchases | 3,319 | — | — | — | — | 3,319 | |||||||||||||||||||
Intercompany | 11,732 | (636 | ) | (11,742 | ) | 646 | — | — | |||||||||||||||||
Cash provided by/(used in) financing activities of continuing operations | 15,051 | (836 | ) | (11,742 | ) | 19,446 | — | 21,919 | |||||||||||||||||
Cash provided by financing activities of discontinued operations | — | — | — | — | — | — | |||||||||||||||||||
Net cash provided by/(used in) financing activities | 15,051 | (836 | ) | (11,742 | ) | 19,446 | — | 21,919 | |||||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (5,919 | ) | — | (5,919 | ) | |||||||||||||||||
Net increase/(decrease) in cash and cash equivalents | 95 | 2,248 | (2,091 | ) | 26,286 | — | 26,538 | ||||||||||||||||||
Cash and cash equivalents, beginning of period | 324 | 1,966 | (1,831 | ) | 41,364 | — | 41,823 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 419 | $ | 4,214 | $ | (3,922 | ) | $ | 67,650 | $ | — | $ | 68,361 |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended | |||
Jan. 31, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Basis of Presentation | ' | |||
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statement presentation. | ||||
New Accounting Pronouncements | ' | |||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 provides guidance on the presentation of unrecognized tax benefits, reflecting the manner in which an entity would settle, at the reporting date, any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This accounting standard will be effective for the Company beginning November 1, 2014, with early adoption permitted. The Company did early adopt this guidance effective November 1, 2013 and the adoption did not have a material impact on the Company’s consolidated financial position or results of operations. | ||||
Operating Segments | ' | |||
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company operates in the outdoor market of the action sports industry in which the Company designs, markets and distributes apparel, footwear, accessories and related products. The Company currently operates in four segments: the Americas, EMEA, and APAC, each of which sells a full range of the Company’s products, as well as Corporate Operations. The Americas segment, consisting of North, South and Central America, includes revenues primarily from the United States, Canada, Brazil and Mexico. The EMEA segment, consisting of Europe, the Middle East and Africa, includes revenues primarily from continental Europe, the United Kingdom, Russia and South Africa. The APAC segment, consisting of Asia and the Pacific Rim, includes revenues primarily from Australia, Japan, New Zealand, South Korea, Taiwan and Indonesia. Costs that support all segments, including trademark protection, trademark maintenance and licensing functions, are part of Corporate Operations. Corporate Operations also includes sourcing income and gross profit earned from the Company’s licensees. | ||||
Earnings per Share and Stock-Based Compensation | ' | |||
The Company reports basic and diluted earnings per share (“EPS”). Basic EPS is based on the weighted average number of shares outstanding during the period, while diluted EPS additionally includes the dilutive effect of the Company’s outstanding stock options, warrants and shares of restricted stock computed using the treasury stock method. | ||||
Income Taxes | ' | |||
Each reporting period, the Company evaluates the realizability of all of its deferred tax assets in each tax jurisdiction. As of January 31, 2014, the Company continued to maintain a full valuation allowance against its net deferred tax assets in certain jurisdictions in each of its four operating segments due to sustained taxable losses. As a result of the valuation allowances recorded, no tax benefits have been recognized for losses incurred in those tax jurisdictions. | ||||
The Company’s sale of the Mervin and Hawk businesses generated income tax expense of approximately $10 million within discontinued operations during the first quarter of fiscal 2014. However, as the Company does not expect to pay income tax after application of available loss carryforwards, an offsetting income tax benefit was recognized within continuing operations. Before this tax benefit, the Company generated income tax expense in the first quarter of fiscal 2014 and 2013 due to being unable to record tax benefits against the losses in certain jurisdictions where we have previously recorded valuation allowances. | ||||
During the next 12 months, it is reasonably possible that the Company’s liability for uncertain tax positions may change by a significant amount as a result of the resolution or payment of uncertain tax positions. The Company believes the outcomes which are reasonably possible within the next 12 months range from a reduction of the liability for unrecognized tax benefits of $9 million to an increase of the liability of $2 million, excluding penalties and interest for its existing tax positions. | ||||
Derivatives and Hedging | ' | |||
The Company is exposed to gains and losses resulting from fluctuations in foreign currency exchange rates relating to certain sales, royalty income and product purchases of its international subsidiaries that are denominated in currencies other than their functional currencies. The Company is also exposed to foreign currency gains and losses resulting from domestic transactions that are not denominated in U.S. dollars. Furthermore, the Company is exposed to gains and losses resulting from the effect that fluctuations in foreign currency exchange rates have on the reported results in the Company’s consolidated financial statements due to the translation of the operating results and financial position of the Company’s international subsidiaries. As part of its overall strategy to manage the level of exposure to the risk of fluctuations in foreign currency exchange rates, the Company uses various foreign currency exchange contracts and intercompany loans. | ||||
The Company accounts for all of its cash flow hedges under ASC 815, “Derivatives and Hedging,” which requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheet. In accordance with ASC 815, the Company designates forward contracts as cash flow hedges of forecasted purchases of commodities. | ||||
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. As of January 31, 2014, the Company was hedging forecasted transactions expected to occur through June 2015. Assuming January 31, 2014 exchange rates remain constant, $2 million of gains, net of tax, related to hedges of these transactions are expected to be reclassified into earnings over the next 17 months. | ||||
On the date the Company enters into a derivative contract, management designates the derivative as a hedge of the identified exposure. Before entering into various hedge transactions, the Company formally documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy. In this documentation, the Company identifies the asset, liability, firm commitment, or forecasted transaction that has been designated as a hedged item and indicates how the hedging instrument is expected to hedge the risks related to the hedged item. The Company formally measures effectiveness of its hedging relationships both at the hedge inception and on an ongoing basis in accordance with its risk management policy. The Company would discontinue hedge accounting prospectively (i) if management determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item, (ii) when the derivative expires or is sold, terminated, or exercised, (iii) if it becomes probable that the forecasted transaction being hedged by the derivative will not occur, (iv) if a hedged firm commitment no longer meets the definition of a firm commitment, or (v) if management determines that designation of the derivative as a hedge instrument is no longer appropriate. As a result of the expiration, sale, termination, or exercise of derivative contracts, the Company reclassified into earnings a net loss of $0.2 million for the quarter ended January 31, 2014, and a net gain of $1 million for the quarter ended January 31, 2013. | ||||
The Company enters into forward exchange and other derivative contracts with major banks and is exposed to exchange rate losses in the event of nonperformance by these banks. The Company anticipates, however, that these banks will be able to fully satisfy their obligations under the contracts. Accordingly, the Company does not require collateral or other security to support the contracts. | ||||
Fair Value Measurements | ' | |||
ASC 820, “Fair Value Measurements and Disclosures,” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three levels. These levels are: | ||||
• | Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 assets and liabilities include debt and equity securities traded in an active exchange market, as well as U.S. Treasury securities. | |||
• | Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||
• | Level 3 – Valuation is determined using model-based techniques with significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of third party pricing services, option-pricing models, discounted cash flow models and similar techniques. | |||
The Company’s derivative assets and liabilities include foreign exchange derivatives that are measured at fair value using observable market inputs such as forward rates, interest rates, the Company’s credit risk and the Company’s counterparties’ credit risks. Based on these inputs, the Company’s derivative assets and liabilities are classified within Level 2 of the valuation hierarchy. |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Information Related to Company's Operating Segments | ' | ||||||||
Information related to the Company’s operating segments for the first quarter of fiscal 2014 and 2013 is as follows: | |||||||||
First Quarter Ended January 31, | |||||||||
In thousands | 2014 | 2013 | |||||||
Revenues, net: | |||||||||
Americas | $ | 173,165 | $ | 182,636 | |||||
EMEA | 149,397 | 156,174 | |||||||
APAC | 69,875 | 72,695 | |||||||
Corporate Operations | 175 | 684 | |||||||
$ | 392,612 | $ | 412,189 | ||||||
Gross profit: | |||||||||
Americas | $ | 75,110 | $ | 78,121 | |||||
EMEA | 87,849 | 91,734 | |||||||
APAC | 36,808 | 39,236 | |||||||
Corporate Operations | 69 | 682 | |||||||
$ | 199,836 | $ | 209,773 | ||||||
SG&A expense: | |||||||||
Americas | $ | 83,692 | $ | 85,187 | |||||
EMEA | 76,712 | 77,215 | |||||||
APAC | 32,615 | 37,192 | |||||||
Corporate Operations | 10,765 | 16,745 | |||||||
$ | 203,784 | $ | 216,339 | ||||||
Asset impairments: | |||||||||
Americas | $ | 222 | $ | 1,621 | |||||
EMEA | 661 | 1,547 | |||||||
APAC | — | — | |||||||
Corporate Operations | — | — | |||||||
$ | 883 | $ | 3,168 | ||||||
Operating (loss)/income: | |||||||||
Americas | $ | (8,804 | ) | $ | (8,687 | ) | |||
EMEA | 10,476 | 12,972 | |||||||
APAC | 4,193 | 2,044 | |||||||
Corporate Operations | (10,696 | ) | (16,063 | ) | |||||
$ | (4,831 | ) | $ | (9,734 | ) | ||||
January 31, | October 31, | ||||||||
2014 | 2013 | ||||||||
Identifiable assets: | |||||||||
Americas | $ | 581,417 | $ | 581,021 | |||||
EMEA | 747,013 | 744,936 | |||||||
APAC | 202,359 | 222,542 | |||||||
Corporate Operations | 70,366 | 71,971 | |||||||
$ | 1,601,155 | $ | 1,620,470 | ||||||
Earnings_per_Share_and_StockBa1
Earnings per Share and Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Reconciliation of Denominator of Each Net Loss per Share | ' | ||||||||||||||||
The table below sets forth the reconciliation of the denominator of each net loss per share calculation for the first quarter of fiscal 2014 and 2013: | |||||||||||||||||
First Quarter Ended January 31, | |||||||||||||||||
In thousands | 2014 | 2013 | |||||||||||||||
Shares used in computing basic net loss per share | 169,747 | 165,767 | |||||||||||||||
Dilutive effect of stock options and restricted stock(1) | — | — | |||||||||||||||
Dilutive effect of stock warrants(1) | — | — | |||||||||||||||
Shares used in computing diluted net loss per share | 169,747 | 165,767 | |||||||||||||||
-1 | For the first quarter of fiscal 2014 and 2013, the shares used in computing diluted net loss per share do not include 3,974,000 and 3,391,000, respectively, of dilutive stock options and shares of restricted stock, nor 19,913,000 and 15,140,000, respectively, of dilutive warrant shares, as the effect is anti-dilutive given the Company’s net loss from continuing operations. For the first quarter of fiscal 2014 and 2013, additional stock options outstanding of 3,856,000 and 7,932,000, respectively, and additional warrant shares outstanding of 5,741,000 and 10,514,000, respectively, were excluded from the calculation of diluted EPS, as their effect would have been anti-dilutive based on the application of the treasury stock method. | ||||||||||||||||
Schedule of Activity Related to Performance Based Equity Instruments | ' | ||||||||||||||||
Activity related to these performance-based equity instruments for the first quarter of fiscal 2014 was as follows: | |||||||||||||||||
Performance | Performance | ||||||||||||||||
Options | Restricted | ||||||||||||||||
Stock Units | |||||||||||||||||
Outstanding, October 31, 2013 | 688,000 | 11,675,782 | |||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (12,000 | ) | — | ||||||||||||||
Canceled | (36,000 | ) | (30,937 | ) | |||||||||||||
Outstanding, January 31, 2014 | 640,000 | 11,644,845 | |||||||||||||||
Schedule of Changes in Shares under Option, Excluding Performance Based Options | ' | ||||||||||||||||
Changes in shares under option, excluding performance-based options, for the first quarter of fiscal 2014 were as follows: | |||||||||||||||||
Dollar amounts in thousands, | Shares | Weighted | Weighted | Aggregate | |||||||||||||
except per share amounts | Average | Average | Intrinsic | ||||||||||||||
Price | Life | Value | |||||||||||||||
Outstanding, October 31, 2013 | 8,829,618 | $ | 4.83 | ||||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (568,290 | ) | 4.24 | $ | 2,370 | ||||||||||||
Canceled | (626,750 | ) | 8.59 | ||||||||||||||
Outstanding, January 31, 2014 | 7,634,578 | $ | 4.56 | 5.5 | $ | 21,110 | |||||||||||
Options exercisable, January 31, 2014 | 5,633,427 | $ | 4.16 | 4.8 | $ | 18,344 | |||||||||||
Schedule of Changes in Non-Vested Shares under Option, Excluding Performance Based Options | ' | ||||||||||||||||
Changes in non-vested shares under option, excluding performance-based options, for the first quarter of fiscal 2014 were as follows: | |||||||||||||||||
Shares | Weighted | ||||||||||||||||
Average Grant | |||||||||||||||||
Date Fair Value | |||||||||||||||||
Non-vested, October 31, 2013 | 2,784,826 | $ | 2.95 | ||||||||||||||
Granted | — | — | |||||||||||||||
Vested | (778,675 | ) | 2.28 | ||||||||||||||
Canceled | (5,000 | ) | 3.51 | ||||||||||||||
Non-vested, January 31, 2014 | 2,001,151 | $ | 3.19 | ||||||||||||||
Inventories_net_Tables
Inventories, net (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories, net consisted of the following as of the dates indicated: | |||||||||
In thousands | January 31, | October 31, | |||||||
2014 | 2013 | ||||||||
Raw materials | $ | 3,993 | $ | 4,725 | |||||
Work in-process | 354 | 681 | |||||||
Finished goods | 355,799 | 332,309 | |||||||
$ | 360,146 | $ | 337,715 | ||||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||||||
Intangible assets consisted of the following as of the dates indicated: | |||||||||||||||||||||||||
January 31, 2014 | October 31, 2013 | ||||||||||||||||||||||||
In thousands | Gross | Amorti- | Net Book | Gross | Amorti- | Net Book | |||||||||||||||||||
Amount | zation | Value | Amount | zation | Value | ||||||||||||||||||||
Non-amortizable trademarks | $ | 124,088 | $ | — | $ | 124,088 | $ | 124,099 | $ | — | $ | 124,099 | |||||||||||||
Amortizable trademarks | 20,255 | (11,870 | ) | 8,385 | 19,810 | (11,534 | ) | 8,276 | |||||||||||||||||
Amortizable licenses | 11,761 | (11,761 | ) | — | 12,749 | (12,749 | ) | — | |||||||||||||||||
Other amortizable intangibles | 8,278 | (6,086 | ) | 2,192 | 8,185 | (5,964 | ) | 2,221 | |||||||||||||||||
$ | 164,382 | $ | (29,717 | ) | $ | 134,665 | $ | 164,843 | $ | (30,247 | ) | $ | 134,596 | ||||||||||||
Summary of Goodwill by Segment | ' | ||||||||||||||||||||||||
A summary of goodwill by segment, and in total, and changes in the carrying amounts, as of the dates indicated are as follows: | |||||||||||||||||||||||||
In thousands | Americas | EMEA | APAC | Consolidated | |||||||||||||||||||||
Gross goodwill | $ | 75,974 | $ | 174,869 | $ | 135,752 | $ | 386,595 | |||||||||||||||||
Accumulated impairment losses | — | — | (129,545 | ) | (129,545 | ) | |||||||||||||||||||
Net goodwill at Nov. 1, 2012 | $ | 75,974 | $ | 174,869 | $ | 6,207 | $ | 257,050 | |||||||||||||||||
Foreign currency translation and other | (1,031 | ) | 5,606 | — | 4,575 | ||||||||||||||||||||
Gross goodwill | 74,943 | 180,475 | 135,752 | 391,170 | |||||||||||||||||||||
Accumulated impairment losses | — | — | (129,545 | ) | (129,545 | ) | |||||||||||||||||||
Net goodwill at Oct. 31, 2013 | $ | 74,943 | $ | 180,475 | $ | 6,207 | $ | 261,625 | |||||||||||||||||
Foreign currency translation and other | (517 | ) | (2,870 | ) | — | (3,387 | ) | ||||||||||||||||||
Gross goodwill | 74,426 | 177,605 | 135,752 | 387,783 | |||||||||||||||||||||
Accumulated impairment losses | — | — | (129,545 | ) | (129,545 | ) | |||||||||||||||||||
Net goodwill at Jan. 31, 2014 | $ | 74,426 | $ | 177,605 | $ | 6,207 | $ | 258,238 | |||||||||||||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 3 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Restructuring And Related Activities [Abstract] | ' | ||||||||||||
Activity and Liability Balances | ' | ||||||||||||
Activity and liability balances recorded as part of the 2013 Plan and 2011 Plan were as follows: | |||||||||||||
In thousands | Workforce | Facility | Total | ||||||||||
& Other | |||||||||||||
Balance, November 1, 2012 | $ | 5,335 | $ | 6,856 | $ | 12,191 | |||||||
Charged to expense | 22,671 | 5,838 | 28,509 | ||||||||||
Cash payments | (15,847 | ) | (5,163 | ) | (21,010 | ) | |||||||
Adjustments | — | (592 | ) | (592 | ) | ||||||||
Balance, October 31, 2013 | $ | 12,159 | $ | 6,939 | $ | 19,098 | |||||||
Charged to expense | 2,553 | 570 | 3,123 | ||||||||||
Cash payments | (5,925 | ) | (514 | ) | (6,439 | ) | |||||||
Balance, January 31, 2014 | $ | 8,787 | $ | 6,995 | $ | 15,782 | |||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Summary of Lines of Credit and Long-term Debt | ' | ||||||||
A summary of borrowings under lines of credit and long-term debt as of the dates indicated is as follows: | |||||||||
In thousands | January 31, | October 31, | |||||||
2014 | 2013 | ||||||||
EMEA credit facilities | $ | 25,730 | $ | 21,594 | |||||
2017 Notes | 272,220 | 274,952 | |||||||
ABL Credit Facility | 42,260 | 27,408 | |||||||
2018 Notes | 278,664 | 278,612 | |||||||
2020 Notes | 222,357 | 222,285 | |||||||
Capital lease obligations and other borrowings | 23,417 | 6,449 | |||||||
$ | 864,648 | $ | 831,300 | ||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Outstanding Derivative Contracts Entered into Hedge Forecasted Purchases | ' | ||||||||||||||||
As of January 31, 2014, the Company had the following outstanding derivative contracts that were entered into to hedge forecasted purchases: | |||||||||||||||||
In thousands | Commodity | Notional | Maturity | Fair | |||||||||||||
Amount | Value | ||||||||||||||||
United States dollars | Inventory | $ | 250,613 | Feb 2014 –June 2015 | $ | 4,473 | |||||||||||
Fair Values of Assets and Liabilities Measured and Recognized at Fair Value | ' | ||||||||||||||||
The following tables reflect the fair values of assets and liabilities measured and recognized at fair value on a recurring basis on the accompanying condensed consolidated balance sheets as of the dates indicated: | |||||||||||||||||
Fair Value Measurements Using | Assets/(Liabilities) | ||||||||||||||||
In thousands | Level 1 | Level 2 | Level 3 | At Fair Value | |||||||||||||
January 31, 2014: | |||||||||||||||||
Derivative assets: | |||||||||||||||||
Other receivables | $ | — | $ | 4,026 | $ | — | $ | 4,026 | |||||||||
Other assets | — | 521 | — | 521 | |||||||||||||
Derivative liabilities: | |||||||||||||||||
Accrued liabilities | — | (74 | ) | — | (74 | ) | |||||||||||
Total fair value | $ | — | $ | 4,473 | $ | — | $ | 4,473 | |||||||||
October 31, 2013: | |||||||||||||||||
Derivative assets: | |||||||||||||||||
Other receivables | $ | — | $ | 2,026 | $ | — | $ | 2,026 | |||||||||
Other assets | — | 382 | — | 382 | |||||||||||||
Derivative liabilities: | |||||||||||||||||
Accrued liabilities | — | (3,313 | ) | — | (3,313 | ) | |||||||||||
Total fair value | $ | — | $ | (905 | ) | $ | — | $ | (905 | ) | |||||||
Stockholders_Equity_and_Noncon1
Stockholders' Equity and Non-controlling Interest (Tables) | 3 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Summary of Changes in Equity | ' | ||||||||||||
The following tables summarize the changes in equity attributable to Quiksilver, Inc. and the non-controlling interests of its consolidated subsidiaries: | |||||||||||||
In thousands | Attributable to | Non- | Total | ||||||||||
First quarter ended January 31, 2014: | Quiksilver, | controlling | Stockholders’ | ||||||||||
Inc. | Interest | Equity | |||||||||||
Balance, October 31, 2013 | $ | 369,706 | $ | 17,952 | $ | 387,658 | |||||||
Stock compensation expense | 5,063 | — | 5,063 | ||||||||||
Exercise of stock options | 2,465 | — | 2,465 | ||||||||||
Employee stock purchase plan | 673 | — | 673 | ||||||||||
Transactions with non-controlling interest holders | (10,839 | ) | (5,434 | ) | (16,273 | ) | |||||||
Net income and other comprehensive income/(loss) | 965 | (464 | ) | 501 | |||||||||
Balance, January 31, 2014 | $ | 368,033 | $ | 12,054 | $ | 380,087 | |||||||
First quarter ended January 31, 2013: | |||||||||||||
Balance, October 31, 2012 | $ | 583,310 | $ | 18,926 | $ | 602,236 | |||||||
Stock compensation expense | 7,336 | — | 7,336 | ||||||||||
Exercise of stock options | 2,761 | — | 2,761 | ||||||||||
Employee stock purchase plan | 557 | — | 557 | ||||||||||
Transactions with non-controlling interest holders | (44 | ) | 44 | — | |||||||||
Net loss and other comprehensive (loss)/income | (23,019 | ) | 505 | (22,514 | ) | ||||||||
Balance, January 31, 2013 | $ | 570,901 | $ | 19,475 | $ | 590,376 | |||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||||||
Jan. 31, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Components of Accumulated Other Comprehensive Income | ' | ||||||||||||
The components of accumulated other comprehensive income, net of tax, are as follows: | |||||||||||||
In thousands | Derivative | Foreign | Total | ||||||||||
First quarter ended January 31, 2014: | Instruments | Currency | |||||||||||
Adjustments | |||||||||||||
Balance, October 31, 2013 | $ | (4,591 | ) | $ | 78,509 | $ | 73,918 | ||||||
Net losses reclassified to COGS | 186 | — | 186 | ||||||||||
Changes in fair value, net of tax | 6,107 | (20,715 | ) | (14,608 | ) | ||||||||
Balance, January 31, 2014 | $ | 1,702 | $ | 57,794 | $ | 59,496 | |||||||
First quarter ended January 31, 2013: | |||||||||||||
Balance, October 31, 2012 | $ | 5,756 | $ | 80,656 | $ | 86,412 | |||||||
Net gains reclassified to COGS | (1,135 | ) | — | (1,135 | ) | ||||||||
Net losses reclassified to foreign currency loss | 86 | — | 86 | ||||||||||
Changes in fair value, net of tax | (2,599 | ) | 11,758 | 9,159 | |||||||||
Balance, January 31, 2013 | $ | 2,108 | $ | 92,414 | $ | 94,522 | |||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2014 | |||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||
Summarized Results from Discontinued Operations | ' | ||||||||
The operating results of discontinued operations for the first quarters of fiscal 2014 and 2013 are as follows: | |||||||||
First Quarter Ended | |||||||||
January 31, | |||||||||
In thousands | 2014 | 2013 | |||||||
Revenues, net | $ | 20,162 | $ | 18,829 | |||||
Income before income taxes | 48,094 | 900 | |||||||
Provision for income taxes | 10,477 | 275 | |||||||
Income from discontinued operations | 37,617 | 625 | |||||||
Less: net loss/(income) attributable to non-controlling interest | 103 | (186 | ) | ||||||
Income from discontinued operations attributable to Quiksilver, Inc. | $ | 37,720 | $ | 439 | |||||
Components of Major Assets and Liabilities | ' | ||||||||
The components of major assets and liabilities held for sale at January 31, 2014 and October 31, 2013 are as follows: | |||||||||
January 31, | October 31, | ||||||||
In thousands | 2014 | 2013 | |||||||
Assets: | |||||||||
Receivables, net | $ | 369 | $ | 24,229 | |||||
Inventories Inventories | 12,865 | 25,915 | |||||||
Goodwill | 16,821 | 16,109 | |||||||
Other | 7,336 | 9,388 | |||||||
$ | 37,391 | $ | 75,641 | ||||||
Liabilities: | |||||||||
Accounts payable | $ | 6,706 | $ | 13,039 | |||||
Accrued liabilities | 2,369 | 3,381 | |||||||
Other | 1,577 | 1,719 | |||||||
$ | 10,652 | $ | 18,139 | ||||||
Total Assets Held for Sale | ' | ||||||||
Total assets held for sale as of January 31, 2014 and October 31, 2013 by geographical segment was as follows: | |||||||||
January 31, | October 31, | ||||||||
In thousands | 2014 | 2013 | |||||||
Americas | $ | — | $ | 27,398 | |||||
EMEA | 37,391 | 47,588 | |||||||
APAC | — | 655 | |||||||
$ | 37,391 | $ | 75,641 | ||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Condensed Consolidating Statement of Operations | ' | ||||||||||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||||||
First Quarter Ended January 31, 2014 | |||||||||||||||||||||||||
In thousands | Quiksilver, Inc. | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||||
Revenues, net | $ | 116 | $ | 84,004 | $ | 97,975 | $ | 269,770 | $ | (59,253 | ) | $ | 392,612 | ||||||||||||
Cost of goods sold | — | 50,268 | 67,704 | 119,784 | (44,980 | ) | 192,776 | ||||||||||||||||||
Gross profit | 116 | 33,736 | 30,271 | 149,986 | (14,273 | ) | 199,836 | ||||||||||||||||||
Selling, general and administrative expense | 9,025 | 55,966 | 22,668 | 121,057 | (4,932 | ) | 203,784 | ||||||||||||||||||
Asset impairments | — | — | 222 | 661 | — | 883 | |||||||||||||||||||
Operating (loss)/income | (8,909 | ) | (22,230 | ) | 7,381 | 28,268 | (9,341 | ) | (4,831 | ) | |||||||||||||||
Interest expense, net | 11,600 | 1,010 | — | 6,810 | — | 19,420 | |||||||||||||||||||
Foreign currency loss/(gain) | 36 | (10 | ) | (224 | ) | 3,026 | — | 2,828 | |||||||||||||||||
Equity in earnings | (35,932 | ) | 74 | — | — | 35,858 | — | ||||||||||||||||||
Income/(loss) before (benefit)/provision for income taxes | 15,387 | (23,304 | ) | 7,605 | 18,432 | (45,199 | ) | (27,079 | ) | ||||||||||||||||
(Benefit)/provision for income taxes | — | (6,169 | ) | (3,945 | ) | 5,729 | — | (4,385 | ) | ||||||||||||||||
Income/(loss) from continuing operations | 15,387 | (17,135 | ) | 11,550 | 12,703 | (45,199 | ) | (22,694 | ) | ||||||||||||||||
Income from discontinued operations | — | 23,922 | 13,531 | 164 | — | 37,617 | |||||||||||||||||||
Net income | 15,387 | 6,787 | 25,081 | 12,867 | (45,199 | ) | 14,923 | ||||||||||||||||||
Net loss attributable to non-controlling interest | — | — | — | 464 | — | 464 | |||||||||||||||||||
Net income attributable to Quiksilver, Inc. | 15,387 | 6,787 | 25,081 | 13,331 | (45,199 | ) | 15,387 | ||||||||||||||||||
Other comprehensive loss | (14,422 | ) | — | — | (14,422 | ) | 14,422 | (14,422 | ) | ||||||||||||||||
Comprehensive income/(loss) attributable to Quiksilver, Inc. | $ | 965 | $ | 6,787 | $ | 25,081 | $ | (1,091 | ) | $ | (30,777 | ) | $ | 965 | |||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||||||
First Quarter Ended January 31, 2013 | |||||||||||||||||||||||||
In thousands | Quiksilver, Inc. | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||||
Revenues, net | $ | 116 | $ | 88,519 | $ | 110,462 | $ | 281,846 | $ | (68,754 | ) | $ | 412,189 | ||||||||||||
Cost of goods sold | — | 52,603 | 87,298 | 125,699 | (63,184 | ) | 202,416 | ||||||||||||||||||
Gross profit | 116 | 35,916 | 23,164 | 156,147 | (5,570 | ) | 209,773 | ||||||||||||||||||
Selling, general and administrative expense | 15,975 | 35,959 | 35,342 | 135,867 | (6,804 | ) | 216,339 | ||||||||||||||||||
Asset impairments | — | — | 1,335 | 1,833 | — | 3,168 | |||||||||||||||||||
Operating (loss)/income | (15,859 | ) | (43 | ) | (13,513 | ) | 18,447 | 1,234 | (9,734 | ) | |||||||||||||||
Interest expense, net | 7,269 | 1,469 | — | 6,763 | — | 15,501 | |||||||||||||||||||
Foreign currency loss | 154 | 14 | 64 | 2,833 | — | 3,065 | |||||||||||||||||||
Equity in earnings | 7,847 | (204 | ) | — | — | (7,643 | ) | — | |||||||||||||||||
(Loss)/income before (benefit)/provision for income taxes | (31,129 | ) | (1,322 | ) | (13,577 | ) | 8,851 | 8,877 | (28,300 | ) | |||||||||||||||
(Benefit)/provision for income taxes | — | (1,187 | ) | 90 | 4,046 | — | 2,949 | ||||||||||||||||||
(Loss)/income from continuing operations | (31,129 | ) | (135 | ) | (13,667 | ) | 4,805 | 8,877 | (31,249 | ) | |||||||||||||||
(Loss)/income from discontinued operations | — | — | (170 | ) | 769 | 26 | 625 | ||||||||||||||||||
Net (loss)/income | (31,129 | ) | (135 | ) | (13,837 | ) | 5,574 | 8,903 | (30,624 | ) | |||||||||||||||
Net income attributable to non-controlling interest | — | — | — | (505 | ) | — | (505 | ) | |||||||||||||||||
Net (loss)/income attributable to Quiksilver, Inc. | (31,129 | ) | (135 | ) | (13,837 | ) | 5,069 | 8,903 | (31,129 | ) | |||||||||||||||
Other comprehensive income | 8,110 | — | — | 8,110 | (8,110 | ) | 8,110 | ||||||||||||||||||
Comprehensive (loss)/income attributable to Quiksilver, Inc. | $ | (23,019 | ) | $ | (135 | ) | $ | (13,837 | ) | $ | 13,179 | $ | 793 | $ | (23,019 | ) | |||||||||
Condensed Consolidating Balance Sheet | ' | ||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
January 31, 2014 | |||||||||||||||||||||||||
In thousands | Quiksilver, Inc. | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 34 | $ | 7,258 | $ | (1,939 | ) | $ | 64,635 | $ | — | $ | 69,988 | ||||||||||||
Restricted cash | — | 60,214 | — | 403 | — | 60,617 | |||||||||||||||||||
Trade accounts receivable, net | — | 70,576 | 35,269 | 232,878 | — | 338,723 | |||||||||||||||||||
Other receivables | 58 | 2,746 | 3,715 | 20,759 | — | 27,278 | |||||||||||||||||||
Inventories, net | — | 52,408 | 101,772 | 236,575 | (30,609 | ) | 360,146 | ||||||||||||||||||
Deferred income taxes - current | — | 24,624 | — | 6,048 | (21,109 | ) | 9,563 | ||||||||||||||||||
Prepaid expenses and other current assets | 2,433 | 5,914 | 3,614 | 17,282 | — | 29,243 | |||||||||||||||||||
Intercompany balances | — | 176,329 | — | — | (176,329 | ) | — | ||||||||||||||||||
Current portion of assets held for sale | — | — | — | 13,676 | — | 13,676 | |||||||||||||||||||
Total current assets | 2,525 | 400,069 | 142,431 | 592,256 | (228,047 | ) | 909,234 | ||||||||||||||||||
Fixed assets, net | 21,782 | 33,330 | 21,750 | 148,052 | — | 224,914 | |||||||||||||||||||
Intangible assets, net | 4,962 | 44,362 | 1,121 | 84,220 | — | 134,665 | |||||||||||||||||||
Goodwill | — | 103,880 | 7,676 | 146,682 | — | 258,238 | |||||||||||||||||||
Other assets | 8,135 | 5,546 | 992 | 35,716 | — | 50,389 | |||||||||||||||||||
Deferred income taxes long-term | 19,786 | — | — | 1,716 | (21,502 | ) | — | ||||||||||||||||||
Investment in subsidiaries | 985,746 | 5,960 | — | — | (991,706 | ) | — | ||||||||||||||||||
Assets held for sale, net of current portion | — | — | — | 23,715 | — | 23,715 | |||||||||||||||||||
Total assets | $ | 1,042,936 | $ | 593,147 | $ | 173,970 | $ | 1,032,357 | $ | (1,241,255 | ) | $ | 1,601,155 | ||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | 1,524 | $ | 38,976 | $ | 20,565 | $ | 106,940 | $ | — | $ | 168,005 | |||||||||||||
Accrued liabilities | 30,232 | 15,994 | 6,665 | 66,866 | — | 119,757 | |||||||||||||||||||
Current portion of long-term debt | — | 15,798 | — | 27,626 | — | 43,424 | |||||||||||||||||||
Income taxes payable | — | 1,185 | — | 728 | — | 1,913 | |||||||||||||||||||
Deferred income taxes - current | 20,365 | — | 744 | — | (21,109 | ) | — | ||||||||||||||||||
Intercompany balances | 121,442 | — | 30,302 | 24,585 | (176,329 | ) | — | ||||||||||||||||||
Current portion of assets held for sale | — | — | — | 9,075 | — | 9,075 | |||||||||||||||||||
Total current liabilities | 173,563 | 71,953 | 58,276 | 235,820 | (197,438 | ) | 342,174 | ||||||||||||||||||
Long-term debt, net of current portion | 501,021 | 23,590 | — | 296,613 | — | 821,224 | |||||||||||||||||||
Other long-term liabilities | 319 | 5,714 | 8,456 | 20,014 | — | 34,503 | |||||||||||||||||||
Deferred income taxes long-term | — | 41,039 | 2,053 | — | (21,502 | ) | 21,590 | ||||||||||||||||||
Assets held for sale, net of current portion | — | — | — | 1,577 | — | 1,577 | |||||||||||||||||||
Total liabilities | 674,903 | 142,296 | 68,785 | 554,024 | (218,940 | ) | 1,221,068 | ||||||||||||||||||
Stockholders’/invested equity | 368,033 | 450,851 | 105,185 | 466,279 | (1,022,315 | ) | 368,033 | ||||||||||||||||||
Non-controlling interest | — | — | — | 12,054 | — | 12,054 | |||||||||||||||||||
Total liabilities and equity | $ | 1,042,936 | $ | 593,147 | $ | 173,970 | $ | 1,032,357 | $ | (1,241,255 | ) | $ | 1,601,155 | ||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
October 31, 2013 | |||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 35 | $ | 3,733 | $ | 296 | $ | 53,216 | $ | — | $ | 57,280 | |||||||||||||
Trade accounts receivable, net | — | 83,991 | 48,230 | 279,417 | — | 411,638 | |||||||||||||||||||
Other receivables | 19 | 5,613 | 2,007 | 15,667 | — | 23,306 | |||||||||||||||||||
Inventories, net | — | 43,405 | 93,074 | 224,695 | (23,459 | ) | 337,715 | ||||||||||||||||||
Deferred income taxes - current | — | 24,624 | — | 6,482 | (21,109 | ) | 9,997 | ||||||||||||||||||
Prepaid expenses and other current assets | 3,372 | 3,271 | 3,752 | 13,729 | — | 24,124 | |||||||||||||||||||
Intercompany balances | — | 173,547 | — | — | (173,547 | ) | — | ||||||||||||||||||
Current portion of assets held for sale | — | — | 26,051 | 25,475 | (330 | ) | 51,196 | ||||||||||||||||||
Total current assets | 3,426 | 338,184 | 173,410 | 618,681 | (218,445 | ) | 915,256 | ||||||||||||||||||
Fixed assets, net | 21,378 | 35,152 | 21,816 | 152,915 | — | 231,261 | |||||||||||||||||||
Intangible assets, net | 4,487 | 44,596 | 1,154 | 84,359 | — | 134,596 | |||||||||||||||||||
Goodwill | — | 103,880 | 7,675 | 150,070 | — | 261,625 | |||||||||||||||||||
Other assets | 8,025 | 5,654 | 1,096 | 38,512 | — | 53,287 | |||||||||||||||||||
Deferred income taxes long-term | 21,085 | — | — | 2,111 | (23,196 | ) | — | ||||||||||||||||||
Investment in subsidiaries | 949,814 | 8,795 | — | — | (958,609 | ) | — | ||||||||||||||||||
Assets held for sale, net of current portion | — | — | 1,676 | 22,769 | — | 24,445 | |||||||||||||||||||
Total assets | $ | 1,008,215 | $ | 536,261 | $ | 206,827 | $ | 1,069,417 | $ | (1,200,250 | ) | $ | 1,620,470 | ||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts payable | $ | 4,222 | $ | 51,283 | $ | 35,910 | $ | 110,260 | $ | — | $ | 201,675 | |||||||||||||
Accrued liabilities | 17,900 | 9,921 | 6,929 | 86,795 | — | 121,545 | |||||||||||||||||||
Current portion of long-term debt | — | — | — | 23,488 | — | 23,488 | |||||||||||||||||||
Income taxes payable | — | 121 | — | 3,791 | — | 3,912 | |||||||||||||||||||
Deferred income taxes - current | 20,365 | — | 744 | — | (21,109 | ) | — | ||||||||||||||||||
Intercompany balances | 92,815 | — | 47,424 | 33,308 | (173,547 | ) | — | ||||||||||||||||||
Current portion of assets held for sale | 689 | — | 3,773 | 11,958 | — | 16,420 | |||||||||||||||||||
Total current liabilities | 135,991 | 61,325 | 94,780 | 269,600 | (194,656 | ) | 367,040 | ||||||||||||||||||
Long-term debt, net of current portion | 500,896 | — | — | 306,916 | — | 807,812 | |||||||||||||||||||
Other long-term liabilities | 1,622 | 6,012 | 8,946 | 19,765 | — | 36,345 | |||||||||||||||||||
Deferred income taxes long-term | — | 41,039 | 2,053 | — | (23,196 | ) | 19,896 | ||||||||||||||||||
Assets held for sale, net of current portion | — | — | 187 | 1,532 | — | 1,719 | |||||||||||||||||||
Total liabilities | 638,509 | 108,376 | 105,966 | 597,813 | (217,852 | ) | 1,232,812 | ||||||||||||||||||
Stockholders’/invested equity | 369,706 | 427,885 | 100,861 | 453,652 | (982,398 | ) | 369,706 | ||||||||||||||||||
Non-controlling interest | — | — | — | 17,952 | — | 17,952 | |||||||||||||||||||
Total liabilities and equity | $ | 1,008,215 | $ | 536,261 | $ | 206,827 | $ | 1,069,417 | $ | (1,200,250 | ) | $ | 1,620,470 | ||||||||||||
Condensed Consolidating Statement of Cash Flows | ' | ||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
First Quarter Ended January 31, 2014 | |||||||||||||||||||||||||
In thousands | Quiksilver, Inc. | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||
Net income | $ | 15,387 | $ | 6,787 | $ | 25,081 | $ | 12,867 | $ | (45,199 | ) | $ | 14,923 | ||||||||||||
Adjustments to reconcile net income to net cash (used in)/provided by operating activities: | |||||||||||||||||||||||||
Income from discontinued operations | — | (23,922 | ) | (13,531 | ) | (164 | ) | — | (37,617 | ) | |||||||||||||||
Depreciation and Amortization | 585 | 2,589 | 1,330 | 6,041 | — | 10,545 | |||||||||||||||||||
Stock-based compensation | 5,063 | — | — | — | — | 5,063 | |||||||||||||||||||
Provision for doubtful accounts | — | 1,088 | (209 | ) | 783 | — | 1,662 | ||||||||||||||||||
Asset impairments | — | — | 222 | 661 | — | 883 | |||||||||||||||||||
Equity in earnings | (35,932 | ) | 74 | — | 352 | 35,858 | 352 | ||||||||||||||||||
Non-cash interest expense | 462 | 239 | — | 213 | — | 914 | |||||||||||||||||||
Deferred income taxes | — | — | — | 5 | — | 5 | |||||||||||||||||||
Other adjustments to reconcile net income | 35 | (9 | ) | (219 | ) | 2,992 | — | 2,799 | |||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||
Trade accounts receivable | — | 12,327 | 13,169 | 38,707 | — | 64,203 | |||||||||||||||||||
Inventories | — | (9,271 | ) | (2,884 | ) | (29,849 | ) | 9,341 | (32,663 | ) | |||||||||||||||
Other operating assets and liabilities | 12,141 | (11,998 | ) | (16,366 | ) | (18,962 | ) | — | (35,185 | ) | |||||||||||||||
Cash (used in)/provided by operating activities of continuing operations | (2,259 | ) | (22,096 | ) | 6,593 | 13,646 | — | (4,116 | ) | ||||||||||||||||
Cash used in operating activities of discontinued operations | — | — | (1,861 | ) | (5,334 | ) | — | (7,195 | ) | ||||||||||||||||
Net cash (used in)/provided by operating activities | (2,259 | ) | (22,096 | ) | 4,732 | 8,312 | — | (11,311 | ) | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||
Capital expenditures | (1,970 | ) | (2,397 | ) | (1,299 | ) | (4,892 | ) | — | (10,558 | ) | ||||||||||||||
Changes in restricted cash | — | (60,214 | ) | — | (403 | ) | — | (60,617 | ) | ||||||||||||||||
Cash used in investing activities of continuing operations | (1,970 | ) | (62,611 | ) | (1,299 | ) | (5,295 | ) | — | (71,175 | ) | ||||||||||||||
Cash provided by/(used in) investing activities of discontinued operations | — | 58,060 | 18,991 | (332 | ) | — | 76,719 | ||||||||||||||||||
Net cash (used in)/provided by investing activities | (1,970 | ) | (4,551 | ) | 17,692 | (5,627 | ) | — | 5,544 | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Borrowings on long-term debt | — | 40,500 | — | 30,466 | — | 70,966 | |||||||||||||||||||
Payments on long-term debt | — | (18,500 | ) | — | (31,870 | ) | — | (50,370 | ) | ||||||||||||||||
Stock option exercises and employee stock purchases | 3,138 | — | — | — | — | 3,138 | |||||||||||||||||||
Payments of debt issuance costs | (373 | ) | 38 | — | — | — | (335 | ) | |||||||||||||||||
Intercompany | 1,463 | 8,134 | (24,659 | ) | 15,062 | — | — | ||||||||||||||||||
Cash provided by/(used in) financing activities of continuing operations | 4,228 | 30,172 | (24,659 | ) | 13,658 | — | 23,399 | ||||||||||||||||||
Cash provided by financing activities of discontinued operations | — | — | — | — | — | — | |||||||||||||||||||
Net cash provided by/(used in) financing activities | 4,228 | 30,172 | (24,659 | ) | 13,658 | — | 23,399 | ||||||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (4,924 | ) | — | (4,924 | ) | |||||||||||||||||
Net (decrease)/increase in cash and cash equivalents | (1 | ) | 3,525 | (2,235 | ) | 11,419 | — | 12,708 | |||||||||||||||||
Cash and cash equivalents, beginning of period | 35 | 3,733 | 296 | 53,216 | — | 57,280 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 34 | $ | 7,258 | $ | (1,939 | ) | $ | 64,635 | $ | — | $ | 69,988 | ||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
First Quarter Ended January 31, 2013 | |||||||||||||||||||||||||
In thousands | Quiksilver, Inc. | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||
Net (loss)/income | $ | (31,129 | ) | $ | (135 | ) | $ | (13,837 | ) | $ | 5,574 | $ | 8,903 | $ | (30,624 | ) | |||||||||
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | |||||||||||||||||||||||||
Loss/(income) from discontinued operations | — | — | 170 | (769 | ) | (26 | ) | (625 | ) | ||||||||||||||||
Depreciation and Amortization | 445 | 2,789 | 1,220 | 7,489 | — | 11,943 | |||||||||||||||||||
Stock-based compensation | 7,336 | — | — | — | — | 7,336 | |||||||||||||||||||
Provision for doubtful accounts | — | 226 | (1,427 | ) | 2,449 | — | 1,248 | ||||||||||||||||||
Asset impairments | — | — | 1,335 | 1,833 | — | 3,168 | |||||||||||||||||||
Equity in earnings | 7,847 | (204 | ) | — | (11 | ) | (7,643 | ) | (11 | ) | |||||||||||||||
Non-cash interest expense | 392 | 330 | — | 189 | — | 911 | |||||||||||||||||||
Deferred income taxes | — | — | — | 1,135 | — | 1,135 | |||||||||||||||||||
Other adjustments to reconcile net (loss)/income | 154 | — | (105 | ) | 2,612 | — | 2,661 | ||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||
Trade accounts receivable | — | 14,023 | 35,553 | 35,962 | — | 85,538 | |||||||||||||||||||
Inventories | — | (19,663 | ) | (6,439 | ) | (41,888 | ) | (1,415 | ) | (69,405 | ) | ||||||||||||||
Other operating assets and liabilities | 1,707 | 7,235 | (13,751 | ) | 1,496 | — | (3,313 | ) | |||||||||||||||||
Cash (used in)/provided by operating activities of continuing operations | (13,248 | ) | 4,601 | 2,719 | 16,071 | (181 | ) | 9,962 | |||||||||||||||||
Cash provided by operating activities of discontinued operations | — | — | 8,512 | 4,661 | 181 | 13,354 | |||||||||||||||||||
Net cash (used in)/provided by operating activities | (13,248 | ) | 4,601 | 11,231 | 20,732 | — | 23,316 | ||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||
Capital expenditures | (1,708 | ) | (1,517 | ) | (1,547 | ) | (7,328 | ) | — | (12,100 | ) | ||||||||||||||
Cash used in investing activities of continuing operations | (1,708 | ) | (1,517 | ) | (1,547 | ) | (7,328 | ) | — | (12,100 | ) | ||||||||||||||
Cash used in investing activities of discontinued operations | — | — | (33 | ) | (645 | ) | — | (678 | ) | ||||||||||||||||
Net cash used in investing activities | (1,708 | ) | (1,517 | ) | (1,580 | ) | (7,973 | ) | — | (12,778 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Borrowings on lines of credit | — | — | — | 1,963 | — | 1,963 | |||||||||||||||||||
Payments on lines of credit | — | — | — | (8,042 | ) | — | (8,042 | ) | |||||||||||||||||
Borrowings on long-term debt | — | 23,000 | — | 24,879 | — | 47,879 | |||||||||||||||||||
Payments on long-term debt | — | (23,200 | ) | — | — | — | (23,200 | ) | |||||||||||||||||
Stock option exercises and employee stock purchases | 3,319 | — | — | — | — | 3,319 | |||||||||||||||||||
Intercompany | 11,732 | (636 | ) | (11,742 | ) | 646 | — | — | |||||||||||||||||
Cash provided by/(used in) financing activities of continuing operations | 15,051 | (836 | ) | (11,742 | ) | 19,446 | — | 21,919 | |||||||||||||||||
Cash provided by financing activities of discontinued operations | — | — | — | — | — | — | |||||||||||||||||||
Net cash provided by/(used in) financing activities | 15,051 | (836 | ) | (11,742 | ) | 19,446 | — | 21,919 | |||||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (5,919 | ) | — | (5,919 | ) | |||||||||||||||||
Net increase/(decrease) in cash and cash equivalents | 95 | 2,248 | (2,091 | ) | 26,286 | — | 26,538 | ||||||||||||||||||
Cash and cash equivalents, beginning of period | 324 | 1,966 | (1,831 | ) | 41,364 | — | 41,823 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 419 | $ | 4,214 | $ | (3,922 | ) | $ | 67,650 | $ | — | $ | 68,361 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Jan. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of segments | 4 |
Segment_Information_Informatio
Segment Information - Information Related to Company's Operating Segments (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 |
Revenues, net: | ' | ' | ' |
Revenues, net | $392,612 | $412,189 | ' |
Gross profit: | ' | ' | ' |
Gross profit | 199,836 | 209,773 | ' |
SG&A expense: | ' | ' | ' |
SG&A expense | 203,784 | 216,339 | ' |
Asset impairments: | ' | ' | ' |
Asset impairments | 883 | 3,168 | ' |
Operating (loss)/income: | ' | ' | ' |
Operating income/ (loss) | -4,831 | -9,734 | ' |
Identifiable assets: | ' | ' | ' |
Identifiable assets | 1,601,155 | ' | 1,620,470 |
Operating Segments [Member] | Americas [Member] | ' | ' | ' |
Revenues, net: | ' | ' | ' |
Revenues, net | 173,165 | 182,636 | ' |
Gross profit: | ' | ' | ' |
Gross profit | 75,110 | 78,121 | ' |
SG&A expense: | ' | ' | ' |
SG&A expense | 83,692 | 85,187 | ' |
Asset impairments: | ' | ' | ' |
Asset impairments | 222 | 1,621 | ' |
Operating (loss)/income: | ' | ' | ' |
Operating income/ (loss) | -8,804 | -8,687 | ' |
Identifiable assets: | ' | ' | ' |
Identifiable assets | 581,417 | ' | 581,021 |
Operating Segments [Member] | EMEA [Member] | ' | ' | ' |
Revenues, net: | ' | ' | ' |
Revenues, net | 149,397 | 156,174 | ' |
Gross profit: | ' | ' | ' |
Gross profit | 87,849 | 91,734 | ' |
SG&A expense: | ' | ' | ' |
SG&A expense | 76,712 | 77,215 | ' |
Asset impairments: | ' | ' | ' |
Asset impairments | 661 | 1,547 | ' |
Operating (loss)/income: | ' | ' | ' |
Operating income/ (loss) | 10,476 | 12,972 | ' |
Identifiable assets: | ' | ' | ' |
Identifiable assets | 747,013 | ' | 744,936 |
Operating Segments [Member] | APAC [Member] | ' | ' | ' |
Revenues, net: | ' | ' | ' |
Revenues, net | 69,875 | 72,695 | ' |
Gross profit: | ' | ' | ' |
Gross profit | 36,808 | 39,236 | ' |
SG&A expense: | ' | ' | ' |
SG&A expense | 32,615 | 37,192 | ' |
Operating (loss)/income: | ' | ' | ' |
Operating income/ (loss) | 4,193 | 2,044 | ' |
Identifiable assets: | ' | ' | ' |
Identifiable assets | 202,359 | ' | 222,542 |
Corporate, Non-Segment [Member] | Corporate Operations [Member] | ' | ' | ' |
Revenues, net: | ' | ' | ' |
Revenues, net | 175 | 684 | ' |
Gross profit: | ' | ' | ' |
Gross profit | 69 | 682 | ' |
SG&A expense: | ' | ' | ' |
SG&A expense | 10,765 | 16,745 | ' |
Operating (loss)/income: | ' | ' | ' |
Operating income/ (loss) | -10,696 | -16,063 | ' |
Identifiable assets: | ' | ' | ' |
Identifiable assets | $70,366 | ' | $71,971 |
Earnings_per_Share_and_StockBa2
Earnings per Share and Stock-Based Compensation - Reconciliation of Denominator of Each Net Loss per Share (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Shares used in computing basic net loss per share | 169,747 | 165,767 |
Dilutive effect of stock options and restricted stock | ' | ' |
Dilutive effect of stock warrants | ' | ' |
Shares used in computing diluted net loss per share | 169,747 | 165,767 |
Earnings_per_Share_and_StockBa3
Earnings per Share and Stock-Based Compensation - Reconciliation of Denominator of Each Net Loss per Share (Parenthetical) (Detail) | 3 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Dilutive Stock Options and Restricted Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Shares excluded in computing diluted net loss per share | 3,974,000 | 3,391,000 |
Additional shares excluded from calculation of diluted EPS | 3,856,000 | 7,932,000 |
Dilutive Stock Warrants [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Shares excluded in computing diluted net loss per share | 19,913,000 | 15,140,000 |
Additional shares excluded from calculation of diluted EPS | 5,741,000 | 10,514,000 |
Earnings_per_Share_and_StockBa4
Earnings per Share and Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Oct. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Outstanding options exercisable | 5,633,427 | ' | ' |
Outstanding options | 7,634,578 | ' | 8,829,618 |
Options granted | ' | ' | ' |
Changes in restricted stock | $0 | ' | ' |
Based on Monte-Carlo Simulation [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Price valuation model used | 'Monte-Carlo simulation | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Risk-free interest rate | ' | 0.50% | ' |
Volatility rate, minimum | ' | 73.00% | ' |
Volatility rate, maximum | ' | 89.00% | ' |
Amount for dividend yield | ' | 0.00% | ' |
Weighted average fair value of the restricted stock units | ' | 3.39 | ' |
Unrecognized compensation expense | 300,000 | ' | ' |
Unrecognized compensation expense, weighted average period | '1 year | ' | ' |
Performance Based Options [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Options granted | 0 | 0 | ' |
Performance Options [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Outstanding options exercisable | 82,000 | ' | ' |
Outstanding options | 640,000 | ' | 688,000 |
Unrecognized compensation expense | 700,000 | ' | ' |
Unrecognized compensation expense, weighted average period | '2 years | ' | ' |
Options granted | ' | ' | ' |
Performance Restricted Stock Units [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Outstanding options exercisable | 0 | ' | ' |
Outstanding options | 11,644,845 | ' | 11,675,782 |
Unrecognized compensation expense | 6,000,000 | ' | ' |
Unrecognized compensation expense, weighted average period | '4 months 24 days | ' | ' |
Options granted | ' | ' | ' |
Non-Performance Based Options [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Weighted average fair value of the restricted stock units | $3.19 | ' | $2.95 |
Options granted | ' | ' | ' |
Unrecognized compensation expense | $3,000,000 | ' | ' |
Unrecognized compensation expense, weighted average period | '2 years | ' | ' |
Options granted | 0 | 0 | ' |
Vesting period of options | '3 years | ' | ' |
Earnings_per_Share_and_StockBa5
Earnings per Share and Stock-Based Compensation - Schedule of Activity Related to Performance Based Equity Instruments (Detail) | 3 Months Ended |
Jan. 31, 2014 | |
Stockholders' Equity [Line Items] | ' |
Outstanding, October 31, 2013 | 8,829,618 |
Granted | ' |
Exercised | -568,290 |
Canceled | -626,750 |
Outstanding, January 31, 2014 | 7,634,578 |
Performance Options [Member] | ' |
Stockholders' Equity [Line Items] | ' |
Outstanding, October 31, 2013 | 688,000 |
Granted | ' |
Exercised | -12,000 |
Canceled | -36,000 |
Outstanding, January 31, 2014 | 640,000 |
Performance Restricted Stock Units [Member] | ' |
Stockholders' Equity [Line Items] | ' |
Outstanding, October 31, 2013 | 11,675,782 |
Granted | ' |
Exercised | ' |
Canceled | -30,937 |
Outstanding, January 31, 2014 | 11,644,845 |
Earnings_per_Share_and_StockBa6
Earnings per Share and Stock-Based Compensation - Schedule of Changes in Shares under Option, Excluding Performance Based Options (Detail) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2014 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Outstanding, October 31, 2013 | 8,829,618 |
Granted, Shares | ' |
Exercised, Shares | -568,290 |
Canceled, Shares | -626,750 |
Outstanding, January 31, 2014 | 7,634,578 |
Options exercisable, January 31, 2014 | 5,633,427 |
Outstanding, Weighted Average Price, beginning balance | $4.83 |
Granted, Weighted Average Price | ' |
Exercised, Weighted Average Price | $4.24 |
Canceled, Weighted Average Price | $8.59 |
Outstanding, Weighted Average Price, ending balance | $4.56 |
Options exercisable, Weighted Average Price, ending balance | $4.16 |
Outstanding, Weighted Average Life, ending balance | '5 years 6 months |
Options exercisable, Weighted Average Life, January 31, 2014 | '4 years 9 months 18 days |
Exercised, Aggregate Intrinsic Value | $2,370 |
Outstanding, Aggregate Intrinsic Value, ending balance | 21,110 |
Options exercisable, January 31, 2014, Aggregate Intrinsic Value | $18,344 |
Earnings_per_Share_and_StockBa7
Earnings per Share and Stock-Based Compensation - Schedule of Changes in Non-Vested Shares under Option, Excluding Performance Based Options (Detail) (Non-Performance Based Options [Member], USD $) | 3 Months Ended |
Jan. 31, 2014 | |
Non-Performance Based Options [Member] | ' |
Stockholders' Equity [Line Items] | ' |
Non-vested, beginning balance, Shares | 2,784,826 |
Granted, Shares | ' |
Vested, Shares | -778,675 |
Canceled, Shares | -5,000 |
Non-vested, ending balance, Shares | 2,001,151 |
Non-vested, beginning balance, Weighted-Average Grant Date Fair Value | $2.95 |
Granted, Weighted-Average Grant Date Fair Value | ' |
Vested, Weighted-Average Grant Date Fair Value | $2.28 |
Canceled, Weighted-Average Grant Date Fair Value | $3.51 |
Non-vested, ending balance, Weighted-Average Grant Date Fair Value | $3.19 |
Restricted_Cash_Additional_Inf
Restricted Cash - Additional Information (Detail) (USD $) | Jan. 31, 2014 |
In Thousands, unless otherwise specified | |
Related Parties Textual [Abstract] | ' |
Restricted cash balance | $60,617 |
Inventories_net_Inventories_De
Inventories, net - Inventories (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $3,993 | $4,725 |
Work in-process | 354 | 681 |
Finished goods | 355,799 | 332,309 |
Inventory, net | $360,146 | $337,715 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill - Intangible Assets (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Gross Amount, Total | $164,382 | $164,843 |
Amortization | -29,717 | -30,247 |
Net Book Value | 134,665 | 134,596 |
Amortizable Trademarks [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Gross Amount | 20,255 | 19,810 |
Amortization | -11,870 | -11,534 |
Net Book Value | 8,385 | 8,276 |
Amortizable Licenses [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Gross Amount | 11,761 | 12,749 |
Amortization | -11,761 | -12,749 |
Other Amortizable Intangibles [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Gross Amount | 8,278 | 8,185 |
Amortization | -6,086 | -5,964 |
Net Book Value | 2,192 | 2,221 |
Non-Amortizable Trademarks [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Gross Amount | 124,088 | 124,099 |
Net Book Value | $124,088 | $124,099 |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Intangible amortization expense | $0.50 | $0.50 |
Finite lived intangible asset residual value | 0 | ' |
Estimated annual amortization expense fiscal 2015 | 2 | ' |
Estimated annual amortization expense fiscal 2016 | 2 | ' |
Estimated annual amortization expense fiscal 2017 | 2 | ' |
Estimated annual amortization expense fiscal 2018 | 1 | ' |
Estimated annual amortization expense fiscal 2019 | $1 | ' |
Minimum [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life of trademarks and licenses | '10 years | ' |
Maximum [Member] | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Estimated useful life of trademarks and licenses | '25 years | ' |
Intangible_Assets_and_Goodwill4
Intangible Assets and Goodwill - Summary of Goodwill by Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Goodwill [Line Items] | ' | ' | ' |
Foreign currency translation and other | ($3,387) | $4,575 | ' |
Gross goodwill | 387,783 | 391,170 | 386,595 |
Accumulated impairment losses | -129,545 | -129,545 | -129,545 |
Net goodwill | 258,238 | 261,625 | 257,050 |
Americas [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Foreign currency translation and other | -517 | -1,031 | ' |
Gross goodwill | 74,426 | 74,943 | 75,974 |
Net goodwill | 74,426 | 74,943 | 75,974 |
EMEA [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Foreign currency translation and other | -2,870 | 5,606 | ' |
Gross goodwill | 177,605 | 180,475 | 174,869 |
Accumulated impairment losses | ' | ' | ' |
Net goodwill | 177,605 | 180,475 | 174,869 |
APAC [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Foreign currency translation and other | ' | ' | ' |
Gross goodwill | 135,752 | 135,752 | 135,752 |
Accumulated impairment losses | -129,545 | -129,545 | -129,545 |
Net goodwill | $6,207 | $6,207 | $6,207 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
Jan. 31, 2014 | Jan. 31, 2013 | |
Segment | ||
Income Tax Contingency [Line Items] | ' | ' |
Number of segments | 4 | ' |
Income tax expense | $10,477,000 | $275,000 |
Liability for uncertain tax positions | 12,000,000 | ' |
Uncertain tax position liabilities excluding interest and penalties | 11,000,000 | ' |
Reasonably possible outcome within the next 12 months range, reduction of liability for unrecognized tax benefits excluding penalties and interest | 9,000,000 | ' |
Reasonably possible outcome within the next 12 months range, increase of liability for unrecognized tax benefits excluding penalties and interest | 2,000,000 | ' |
Mervin and Hawk Businesses [Member] | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
Income tax expense | $10,000,000 | ' |
Restructuring_Charges_Activity
Restructuring Charges - Activity and Liability Balances (Detail) (Restructuring Plan Two Thousand Thirteen and Two Thousand Eleven [Member], USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Beginning Balance | $19,098 | $12,191 |
Charged to expense | 3,123 | 28,509 |
Cash payments | -6,439 | -21,010 |
Adjustments | ' | -592 |
Ending Balance | 15,782 | 19,098 |
Workforce [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Beginning Balance | 12,159 | 5,335 |
Charged to expense | 2,553 | 22,671 |
Cash payments | -5,925 | -15,847 |
Ending Balance | 8,787 | 12,159 |
Facility & Other [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Beginning Balance | 6,939 | 6,856 |
Charged to expense | 570 | 5,838 |
Cash payments | -514 | -5,163 |
Adjustments | ' | -592 |
Ending Balance | $6,995 | $6,939 |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Restructuring And Related Activities [Abstract] | ' | ' |
Selling, general and administrative expense | $2 | ' |
Severance charges | ' | $3 |
Debt_Summary_of_Lines_of_Credi
Debt - Summary of Lines of Credit and Long-term Debt (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Credit facility | $68,000 | ' |
Capital lease obligations and other borrowings | 23,417 | 6,449 |
Lines of credit and long-term debt | 864,648 | 831,300 |
2017 Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Lines of credit and long-term debt | 272,220 | 274,952 |
2018 Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Lines of credit and long-term debt | 278,664 | 278,612 |
2020 Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Lines of credit and long-term debt | 222,357 | 222,285 |
EMEA [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Credit facility | 25,730 | 21,594 |
ABL Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Credit facility | $42,260 | $27,408 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | |||
Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | Jan. 31, 2014 | |
U.S. and APAC [Member] | EMEA [Member] | Fair Value [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Maximum cash borrowings and letters of credit | ' | $272,000,000 | ' | ' | ' |
Direct borrowings | ' | 68,000,000 | ' | ' | ' |
Letters of credit outstanding | ' | 56,000,000 | ' | ' | ' |
Amount of availability of remaining borrowings | ' | 92,000,000 | ' | ' | ' |
Amount of remaining borrowing capacity available for letters of credit | 1,963,000 | ' | 53,000,000 | 56,000,000 | ' |
Notes payable | ' | 17,000,000 | ' | ' | ' |
Notes payable, due in next twelve months | ' | 16,000,000 | ' | ' | ' |
Lines of credit and long-term debt fair value | ' | ' | ' | ' | 937,000,000 |
Lines of credit and long-term debt carrying value | ' | ' | ' | ' | $865,000,000 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ' |
Gains relating to hedging transactions, net of tax | $2 | ' |
Reclassified into earnings net gain/(loss) relating to derivative contracts | ($0.20) | $1 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Outstanding Derivative Contracts Entered into Hedge Forecasted Purchases (Detail) (Inventory Commodity [Member], United States Dollars [Member], USD $) | Jan. 31, 2014 |
In Thousands, unless otherwise specified | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Notional Amount | $250,613 |
Fair Value | $4,473 |
Minimum [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Maturity | '2014-02 |
Maximum [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Maturity | '2015-06 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Fair Values of Assets and Liabilities Measured and Recognized at Fair Value (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative liabilities: | ' | ' |
Total fair value | $4,473 | ($905) |
Other Receivables [Member] | ' | ' |
Derivative assets: | ' | ' |
Derivative assets | 4,026 | 2,026 |
Accrued Liabilities [Member] | ' | ' |
Derivative liabilities: | ' | ' |
Derivative liabilities | -74 | -3,313 |
Other Assets [Member] | ' | ' |
Derivative assets: | ' | ' |
Derivative assets | 521 | 382 |
Level 1 [Member] | ' | ' |
Derivative liabilities: | ' | ' |
Total fair value | ' | ' |
Level 1 [Member] | Other Receivables [Member] | ' | ' |
Derivative assets: | ' | ' |
Derivative assets | ' | ' |
Level 1 [Member] | Accrued Liabilities [Member] | ' | ' |
Derivative liabilities: | ' | ' |
Derivative liabilities | ' | ' |
Level 1 [Member] | Other Assets [Member] | ' | ' |
Derivative assets: | ' | ' |
Derivative assets | ' | ' |
Level 2 [Member] | ' | ' |
Derivative liabilities: | ' | ' |
Total fair value | 4,473 | -905 |
Level 2 [Member] | Other Receivables [Member] | ' | ' |
Derivative assets: | ' | ' |
Derivative assets | 4,026 | 2,026 |
Level 2 [Member] | Accrued Liabilities [Member] | ' | ' |
Derivative liabilities: | ' | ' |
Derivative liabilities | -74 | -3,313 |
Level 2 [Member] | Other Assets [Member] | ' | ' |
Derivative assets: | ' | ' |
Derivative assets | 521 | 382 |
Level 3 [Member] | ' | ' |
Derivative liabilities: | ' | ' |
Total fair value | ' | ' |
Level 3 [Member] | Other Receivables [Member] | ' | ' |
Derivative assets: | ' | ' |
Derivative assets | ' | ' |
Level 3 [Member] | Accrued Liabilities [Member] | ' | ' |
Derivative liabilities: | ' | ' |
Derivative liabilities | ' | ' |
Level 3 [Member] | Other Assets [Member] | ' | ' |
Derivative assets: | ' | ' |
Derivative assets | ' | ' |
Stockholders_Equity_and_Noncon2
Stockholders' Equity and Non-controlling Interest - Summary of Changes in Equity (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Schedule Of Stockholders Equity [Line Items] | ' | ' |
Beginning Balance | $387,658 | $602,236 |
Stock compensation expense | 5,063 | 7,336 |
Exercise of stock options | 2,465 | 2,761 |
Employee stock purchase plan | 673 | 557 |
Transactions with non-controlling interest holders | -16,273 | ' |
Net income/(loss) and other comprehensive income/(loss) | 501 | -22,514 |
Ending Balance | 380,087 | 590,376 |
Quiksilver, Inc. [Member] | ' | ' |
Schedule Of Stockholders Equity [Line Items] | ' | ' |
Beginning Balance | 369,706 | 583,310 |
Stock compensation expense | 5,063 | 7,336 |
Exercise of stock options | 2,465 | 2,761 |
Employee stock purchase plan | 673 | 557 |
Transactions with non-controlling interest holders | -10,839 | -44 |
Net income/(loss) and other comprehensive income/(loss) | 965 | -23,019 |
Ending Balance | 368,033 | 570,901 |
Non-Controlling Interest [Member] | ' | ' |
Schedule Of Stockholders Equity [Line Items] | ' | ' |
Beginning Balance | 17,952 | 18,926 |
Stock compensation expense | ' | ' |
Exercise of stock options | ' | ' |
Employee stock purchase plan | ' | ' |
Transactions with non-controlling interest holders | -5,434 | 44 |
Net income/(loss) and other comprehensive income/(loss) | -464 | 505 |
Ending Balance | $12,054 | $19,475 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | $73,918 | $86,412 |
Changes in fair value, net of tax | -14,608 | 9,159 |
Ending balance | 59,496 | 94,522 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Net losses (gains) reclassified to COGS | 186 | -1,135 |
Net losses reclassified to foreign currency loss | ' | 86 |
Derivative Instruments [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | -4,591 | 5,756 |
Changes in fair value, net of tax | 6,107 | -2,599 |
Ending balance | 1,702 | 2,108 |
Derivative Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Net losses (gains) reclassified to COGS | 186 | -1,135 |
Net losses reclassified to foreign currency loss | ' | 86 |
Foreign Currency Adjustments [Member] | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Beginning balance | 78,509 | 80,656 |
Changes in fair value, net of tax | -20,715 | 11,758 |
Ending balance | $57,794 | $92,414 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | ||
Jan. 31, 2014 | Jan. 31, 2013 | Nov. 30, 2013 | Jan. 31, 2014 | |
Mervin [Member] | Hawk [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Proceeds from sale of business | ' | ' | $58,000,000 | $19,000,000 |
Net gain on sale | $38,103,000 | $0 | ' | ' |
Discontinued_Operations_Summar
Discontinued Operations - Summarized Results from Discontinued Operations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Discontinued Operations And Disposal Groups [Abstract] | ' | ' |
Revenues, net | $20,162 | $18,829 |
Income before income taxes | 48,094 | 900 |
Provision for income taxes | 10,477 | 275 |
Income from discontinued operations | 37,617 | 625 |
Less: net loss/(income) attributable to non-controlling interest | 103 | -186 |
Income from discontinued operations attributable to Quiksilver, Inc. | $37,720 | $439 |
Discontinued_Operations_Compon
Discontinued Operations - Components of Major Assets and Liabilities (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Receivables, net | $369 | $24,229 |
Inventories | 12,865 | 25,915 |
Goodwill | 16,821 | 16,109 |
Other | 7,336 | 9,388 |
Total assets | 37,391 | 75,641 |
Liabilities: | ' | ' |
Accounts payable | 6,706 | 13,039 |
Accrued liabilities | 2,369 | 3,381 |
Other | 1,577 | 1,719 |
Total liabilities | $10,652 | $18,139 |
Discontinued_Operations_Total_
Discontinued Operations - Total Assets Held for Sale (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Total assets held for sale | $37,391 | $75,641 |
Americas [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Total assets held for sale | ' | 27,398 |
EMEA [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Total assets held for sale | 37,391 | 47,588 |
APAC [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Total assets held for sale | ' | $655 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information - Additional Information (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | Guarantor Subsidiaries [Member] | 2020 Notes [Member] | 2020 Notes [Member] | ||
Domestic Subsidiaries [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Notes issued, aggregate principal amount | $864,648 | $831,300 | ' | $225,000 | ' |
Percentage of ownership owned by parent in subsidiaries | ' | ' | 100.00% | ' | 100.00% |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information - Condensed Consolidating Statement of Operations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Revenues, net | $392,612 | $412,189 |
Cost of goods sold | 192,776 | 202,416 |
Gross profit | 199,836 | 209,773 |
Selling, general and administrative expense | 203,784 | 216,339 |
Asset impairments | 883 | 3,168 |
Operating (loss)/income | -4,831 | -9,734 |
Interest expense, net | 19,420 | 15,501 |
Foreign currency loss/(gain) | 2,828 | 3,065 |
Equity in earnings | ' | ' |
Loss before (benefit)/provision for income taxes | -27,079 | -28,300 |
(Benefit)/provision for income taxes | -4,385 | 2,949 |
Income/(loss) from continuing operations | -22,694 | -31,249 |
Income from discontinued operations | 37,617 | 625 |
Net income/(loss) | 14,923 | -30,624 |
Net loss/(income) attributable to non-controlling interest | 464 | -505 |
Net income/(loss) attributable to Quiksilver, Inc. | 15,387 | -31,129 |
Other comprehensive (loss)/income | -14,422 | 8,110 |
Comprehensive income/(loss) attributable to Quiksilver, Inc. | 965 | -23,019 |
Quiksilver, Inc. [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Revenues, net | 116 | 116 |
Cost of goods sold | ' | ' |
Gross profit | 116 | 116 |
Selling, general and administrative expense | 9,025 | 15,975 |
Asset impairments | ' | ' |
Operating (loss)/income | -8,909 | -15,859 |
Interest expense, net | 11,600 | 7,269 |
Foreign currency loss/(gain) | 36 | 154 |
Equity in earnings | -35,932 | 7,847 |
Loss before (benefit)/provision for income taxes | 15,387 | -31,129 |
(Benefit)/provision for income taxes | ' | ' |
Income/(loss) from continuing operations | 15,387 | -31,129 |
Income from discontinued operations | ' | ' |
Net income/(loss) | 15,387 | -31,129 |
Net loss/(income) attributable to non-controlling interest | ' | ' |
Net income/(loss) attributable to Quiksilver, Inc. | 15,387 | -31,129 |
Other comprehensive (loss)/income | -14,422 | 8,110 |
Comprehensive income/(loss) attributable to Quiksilver, Inc. | 965 | -23,019 |
QS Wholesale, Inc. [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Revenues, net | 84,004 | 88,519 |
Cost of goods sold | 50,268 | 52,603 |
Gross profit | 33,736 | 35,916 |
Selling, general and administrative expense | 55,966 | 35,959 |
Asset impairments | ' | ' |
Operating (loss)/income | -22,230 | -43 |
Interest expense, net | 1,010 | 1,469 |
Foreign currency loss/(gain) | -10 | 14 |
Equity in earnings | 74 | -204 |
Loss before (benefit)/provision for income taxes | -23,304 | -1,322 |
(Benefit)/provision for income taxes | -6,169 | -1,187 |
Income/(loss) from continuing operations | -17,235 | -135 |
Income from discontinued operations | 23,922 | ' |
Net income/(loss) | 6,787 | -135 |
Net loss/(income) attributable to non-controlling interest | ' | ' |
Net income/(loss) attributable to Quiksilver, Inc. | 6,787 | -135 |
Other comprehensive (loss)/income | ' | ' |
Comprehensive income/(loss) attributable to Quiksilver, Inc. | 6,787 | -135 |
Guarantor Subsidiaries [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Revenues, net | 97,975 | 110,462 |
Cost of goods sold | 67,704 | 87,298 |
Gross profit | 30,271 | 23,164 |
Selling, general and administrative expense | 22,668 | 35,342 |
Asset impairments | 222 | 1,335 |
Operating (loss)/income | 7,381 | -13,513 |
Interest expense, net | ' | ' |
Foreign currency loss/(gain) | -224 | 64 |
Equity in earnings | ' | ' |
Loss before (benefit)/provision for income taxes | 7,605 | -13,577 |
(Benefit)/provision for income taxes | -3,945 | 90 |
Income/(loss) from continuing operations | 11,550 | -13,667 |
Income from discontinued operations | 13,531 | -170 |
Net income/(loss) | 25,081 | -13,837 |
Net loss/(income) attributable to non-controlling interest | ' | ' |
Net income/(loss) attributable to Quiksilver, Inc. | 25,081 | -13,837 |
Other comprehensive (loss)/income | ' | ' |
Comprehensive income/(loss) attributable to Quiksilver, Inc. | 25,081 | -13,837 |
Non-Guarantor Subsidiaries [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Revenues, net | 269,770 | 281,846 |
Cost of goods sold | 119,784 | 125,699 |
Gross profit | 149,986 | 156,147 |
Selling, general and administrative expense | 121,057 | 135,867 |
Asset impairments | 661 | 1,833 |
Operating (loss)/income | 28,268 | 18,447 |
Interest expense, net | 6,810 | 6,763 |
Foreign currency loss/(gain) | 3,026 | 2,833 |
Equity in earnings | ' | 1 |
Loss before (benefit)/provision for income taxes | 18,432 | 8,851 |
(Benefit)/provision for income taxes | 5,729 | 4,046 |
Income/(loss) from continuing operations | 12,703 | 4,805 |
Income from discontinued operations | 164 | 769 |
Net income/(loss) | 12,867 | 5,574 |
Net loss/(income) attributable to non-controlling interest | 464 | -505 |
Net income/(loss) attributable to Quiksilver, Inc. | 13,331 | 5,069 |
Other comprehensive (loss)/income | -14,422 | 8,110 |
Comprehensive income/(loss) attributable to Quiksilver, Inc. | -1,091 | 13,179 |
Eliminations [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Revenues, net | -59,253 | -68,754 |
Cost of goods sold | -44,980 | -63,184 |
Gross profit | -14,273 | -5,570 |
Selling, general and administrative expense | -4,932 | -6,804 |
Asset impairments | ' | ' |
Operating (loss)/income | -9,341 | 1,234 |
Interest expense, net | ' | ' |
Foreign currency loss/(gain) | ' | ' |
Equity in earnings | 35,858 | -7,643 |
Loss before (benefit)/provision for income taxes | -45,199 | 8,877 |
(Benefit)/provision for income taxes | ' | ' |
Income/(loss) from continuing operations | -45,199 | 8,877 |
Income from discontinued operations | ' | 26 |
Net income/(loss) | -45,199 | 8,903 |
Net loss/(income) attributable to non-controlling interest | ' | ' |
Net income/(loss) attributable to Quiksilver, Inc. | -45,199 | 8,903 |
Other comprehensive (loss)/income | 14,422 | -8,110 |
Comprehensive income/(loss) attributable to Quiksilver, Inc. | ($30,777) | $793 |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Detail) (USD $) | Jan. 31, 2014 | Oct. 31, 2013 | Jan. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $69,988 | $57,280 | $68,361 | $41,823 |
Restricted cash | 60,617 | ' | ' | ' |
Trade accounts receivable, net | 338,723 | 411,638 | ' | ' |
Other receivables | 27,278 | 23,306 | ' | ' |
Inventories, net | 360,146 | 337,715 | ' | ' |
Deferred income taxes - current | 9,563 | 9,997 | ' | ' |
Prepaid expenses and other current assets | 29,243 | 24,124 | ' | ' |
Intercompany balances | ' | ' | ' | ' |
Current portion of assets held for sale | 13,676 | 51,196 | ' | ' |
Total current assets | 909,234 | 915,256 | ' | ' |
Fixed assets, net | 224,914 | 231,261 | ' | ' |
Intangible assets, net | 134,665 | 134,596 | ' | ' |
Goodwill | 258,238 | 261,625 | ' | 257,050 |
Other assets | 50,389 | 53,287 | ' | ' |
Deferred income taxes long-term | ' | ' | ' | ' |
Investment in subsidiaries | ' | ' | ' | ' |
Assets held for sale, net of current portion | 23,715 | 24,445 | ' | ' |
Total assets | 1,601,155 | 1,620,470 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 168,005 | 201,675 | ' | ' |
Accrued liabilities | 119,757 | 121,545 | ' | ' |
Current portion of long-term debt | 43,424 | 23,488 | ' | ' |
Income taxes payable | 1,913 | 3,912 | ' | ' |
Deferred income taxes - current | ' | ' | ' | ' |
Intercompany balances | ' | ' | ' | ' |
Current portion of assets held for sale | 9,075 | 16,420 | ' | ' |
Total current liabilities | 342,174 | 367,040 | ' | ' |
Long-term debt, net of current portion | 821,224 | 807,812 | ' | ' |
Other long-term liabilities | 34,503 | 36,345 | ' | ' |
Deferred income taxes long-term | 21,590 | 19,896 | ' | ' |
Assets held for sale, net of current portion | 1,577 | 1,719 | ' | ' |
Total liabilities | 1,221,068 | 1,232,812 | ' | ' |
Stockholders'/invested equity: | 368,033 | 369,706 | ' | ' |
Non-controlling interest | 12,054 | 17,952 | ' | ' |
Total liabilities and equity | 1,601,155 | 1,620,470 | ' | ' |
Quiksilver, Inc. [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 34 | 35 | 419 | 324 |
Restricted cash | ' | ' | ' | ' |
Trade accounts receivable, net | ' | ' | ' | ' |
Other receivables | 58 | 19 | ' | ' |
Inventories, net | ' | ' | ' | ' |
Deferred income taxes - current | ' | ' | ' | ' |
Prepaid expenses and other current assets | 2,433 | 3,372 | ' | ' |
Intercompany balances | ' | ' | ' | ' |
Current portion of assets held for sale | ' | ' | ' | ' |
Total current assets | 2,525 | 3,426 | ' | ' |
Fixed assets, net | 21,782 | 21,378 | ' | ' |
Intangible assets, net | 4,962 | 4,487 | ' | ' |
Goodwill | ' | ' | ' | ' |
Other assets | 8,135 | 8,025 | ' | ' |
Deferred income taxes long-term | 19,786 | 21,085 | ' | ' |
Investment in subsidiaries | 985,746 | 949,814 | ' | ' |
Assets held for sale, net of current portion | ' | ' | ' | ' |
Total assets | 1,042,936 | 1,008,215 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 1,524 | 4,222 | ' | ' |
Accrued liabilities | 30,232 | 17,900 | ' | ' |
Current portion of long-term debt | ' | ' | ' | ' |
Income taxes payable | ' | ' | ' | ' |
Deferred income taxes - current | 20,365 | 20,365 | ' | ' |
Intercompany balances | 121,442 | 92,815 | ' | ' |
Current portion of assets held for sale | ' | 689 | ' | ' |
Total current liabilities | 173,563 | 135,991 | ' | ' |
Long-term debt, net of current portion | 501,021 | 500,896 | ' | ' |
Other long-term liabilities | 319 | 1,622 | ' | ' |
Assets held for sale, net of current portion | ' | ' | ' | ' |
Total liabilities | 674,903 | 638,509 | ' | ' |
Stockholders'/invested equity: | 368,033 | 369,706 | ' | ' |
Non-controlling interest | ' | ' | ' | ' |
Total liabilities and equity | 1,042,936 | 1,008,215 | ' | ' |
QS Wholesale, Inc. [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 7,258 | 3,733 | 4,214 | 1,966 |
Restricted cash | 60,214 | ' | ' | ' |
Trade accounts receivable, net | 70,576 | 83,991 | ' | ' |
Other receivables | 2,746 | 5,613 | ' | ' |
Inventories, net | 52,408 | 43,405 | ' | ' |
Deferred income taxes - current | 24,624 | 24,624 | ' | ' |
Prepaid expenses and other current assets | 5,914 | 3,271 | ' | ' |
Intercompany balances | 176,329 | 173,547 | ' | ' |
Current portion of assets held for sale | ' | ' | ' | ' |
Total current assets | 400,069 | 338,184 | ' | ' |
Fixed assets, net | 33,330 | 35,152 | ' | ' |
Intangible assets, net | 44,362 | 44,596 | ' | ' |
Goodwill | 103,880 | 103,880 | ' | ' |
Other assets | 5,546 | 5,654 | ' | ' |
Deferred income taxes long-term | ' | ' | ' | ' |
Investment in subsidiaries | 5,960 | 8,795 | ' | ' |
Assets held for sale, net of current portion | ' | ' | ' | ' |
Total assets | 593,147 | 536,261 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 38,976 | 51,283 | ' | ' |
Accrued liabilities | 15,994 | 9,921 | ' | ' |
Current portion of long-term debt | 15,798 | ' | ' | ' |
Income taxes payable | 1,185 | 121 | ' | ' |
Deferred income taxes - current | ' | ' | ' | ' |
Intercompany balances | ' | ' | ' | ' |
Current portion of assets held for sale | ' | ' | ' | ' |
Total current liabilities | 71,953 | 61,325 | ' | ' |
Long-term debt, net of current portion | 23,590 | ' | ' | ' |
Other long-term liabilities | 5,714 | 6,012 | ' | ' |
Deferred income taxes long-term | 41,039 | 41,039 | ' | ' |
Assets held for sale, net of current portion | ' | ' | ' | ' |
Total liabilities | 142,296 | 108,376 | ' | ' |
Stockholders'/invested equity: | 450,851 | 427,885 | ' | ' |
Non-controlling interest | ' | ' | ' | ' |
Total liabilities and equity | 593,147 | 536,261 | ' | ' |
Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | -1,939 | 296 | -3,922 | -1,831 |
Restricted cash | ' | ' | ' | ' |
Trade accounts receivable, net | 35,269 | 48,230 | ' | ' |
Other receivables | 3,715 | 2,007 | ' | ' |
Inventories, net | 101,772 | 93,074 | ' | ' |
Deferred income taxes - current | ' | ' | ' | ' |
Prepaid expenses and other current assets | 3,614 | 3,752 | ' | ' |
Intercompany balances | ' | ' | ' | ' |
Current portion of assets held for sale | ' | 26,051 | ' | ' |
Total current assets | 142,431 | 173,410 | ' | ' |
Fixed assets, net | 21,750 | 21,816 | ' | ' |
Intangible assets, net | 1,121 | 1,154 | ' | ' |
Goodwill | 7,676 | 7,675 | ' | ' |
Other assets | 992 | 1,096 | ' | ' |
Deferred income taxes long-term | ' | ' | ' | ' |
Investment in subsidiaries | ' | ' | ' | ' |
Assets held for sale, net of current portion | ' | 1,676 | ' | ' |
Total assets | 173,970 | 206,827 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 20,565 | 35,910 | ' | ' |
Accrued liabilities | 6,665 | 6,929 | ' | ' |
Current portion of long-term debt | ' | ' | ' | ' |
Income taxes payable | ' | ' | ' | ' |
Deferred income taxes - current | 744 | 744 | ' | ' |
Intercompany balances | 30,302 | 47,424 | ' | ' |
Current portion of assets held for sale | ' | 3,773 | ' | ' |
Total current liabilities | 58,276 | 94,780 | ' | ' |
Long-term debt, net of current portion | ' | ' | ' | ' |
Other long-term liabilities | 8,456 | 8,946 | ' | ' |
Deferred income taxes long-term | 2,053 | 2,053 | ' | ' |
Assets held for sale, net of current portion | ' | 187 | ' | ' |
Total liabilities | 68,785 | 105,966 | ' | ' |
Stockholders'/invested equity: | 105,185 | 100,861 | ' | ' |
Non-controlling interest | ' | ' | ' | ' |
Total liabilities and equity | 173,970 | 206,827 | ' | ' |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 64,635 | 53,216 | 67,650 | 41,364 |
Restricted cash | 403 | ' | ' | ' |
Trade accounts receivable, net | 232,878 | 279,417 | ' | ' |
Other receivables | 20,759 | 15,667 | ' | ' |
Inventories, net | 236,575 | 224,695 | ' | ' |
Deferred income taxes - current | 6,048 | 6,482 | ' | ' |
Prepaid expenses and other current assets | 17,282 | 13,729 | ' | ' |
Intercompany balances | ' | ' | ' | ' |
Current portion of assets held for sale | 13,676 | 25,475 | ' | ' |
Total current assets | 592,256 | 618,681 | ' | ' |
Fixed assets, net | 148,052 | 152,915 | ' | ' |
Intangible assets, net | 84,220 | 84,359 | ' | ' |
Goodwill | 146,682 | 150,070 | ' | ' |
Other assets | 35,716 | 38,512 | ' | ' |
Deferred income taxes long-term | 1,716 | 2,111 | ' | ' |
Investment in subsidiaries | ' | ' | ' | ' |
Assets held for sale, net of current portion | 23,715 | 22,769 | ' | ' |
Total assets | 1,032,357 | 1,069,417 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 106,940 | 110,260 | ' | ' |
Accrued liabilities | 66,866 | 86,795 | ' | ' |
Current portion of long-term debt | 27,626 | 23,488 | ' | ' |
Income taxes payable | 728 | 3,791 | ' | ' |
Deferred income taxes - current | ' | ' | ' | ' |
Intercompany balances | 24,585 | 33,308 | ' | ' |
Current portion of assets held for sale | 9,075 | 11,958 | ' | ' |
Total current liabilities | 235,820 | 269,600 | ' | ' |
Long-term debt, net of current portion | 296,613 | 306,916 | ' | ' |
Other long-term liabilities | 20,014 | 19,765 | ' | ' |
Assets held for sale, net of current portion | 1,577 | 1,532 | ' | ' |
Total liabilities | 554,024 | 597,813 | ' | ' |
Stockholders'/invested equity: | 466,279 | 453,652 | ' | ' |
Non-controlling interest | 12,054 | 17,952 | ' | ' |
Total liabilities and equity | 1,032,357 | 1,069,417 | ' | ' |
Eliminations [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' |
Restricted cash | ' | ' | ' | ' |
Trade accounts receivable, net | ' | ' | ' | ' |
Other receivables | ' | ' | ' | ' |
Inventories, net | -30,609 | -23,459 | ' | ' |
Deferred income taxes - current | -21,109 | -21,109 | ' | ' |
Prepaid expenses and other current assets | ' | ' | ' | ' |
Intercompany balances | -176,329 | -173,547 | ' | ' |
Current portion of assets held for sale | ' | -330 | ' | ' |
Total current assets | -228,047 | -218,445 | ' | ' |
Fixed assets, net | ' | ' | ' | ' |
Intangible assets, net | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' |
Other assets | ' | ' | ' | ' |
Deferred income taxes long-term | -21,502 | -23,196 | ' | ' |
Investment in subsidiaries | -991,706 | -958,609 | ' | ' |
Assets held for sale, net of current portion | ' | ' | ' | ' |
Total assets | -241,255 | -1,200,250 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | ' |
Accrued liabilities | ' | ' | ' | ' |
Current portion of long-term debt | ' | ' | ' | ' |
Income taxes payable | ' | ' | ' | ' |
Deferred income taxes - current | -21,109 | -21,109 | ' | ' |
Intercompany balances | -176,329 | -173,547 | ' | ' |
Current portion of assets held for sale | ' | ' | ' | ' |
Total current liabilities | -197,438 | -194,656 | ' | ' |
Long-term debt, net of current portion | ' | ' | ' | ' |
Deferred income taxes long-term | -21,502 | -23,196 | ' | ' |
Assets held for sale, net of current portion | ' | ' | ' | ' |
Total liabilities | -218,940 | -217,852 | ' | ' |
Stockholders'/invested equity: | -1,022,315 | -982,398 | ' | ' |
Non-controlling interest | ' | ' | ' | ' |
Total liabilities and equity | ($1,241,255) | ($1,200,250) | ' | ' |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net (loss)/income | $14,923 | ($30,624) |
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ' | ' |
Income (loss) from discontinued operations | -37,617 | -625 |
Depreciation and amortization | 10,545 | 11,943 |
Stock based compensation | 5,063 | 7,336 |
Provision for doubtful accounts | 1,662 | 1,248 |
Asset impairments | 883 | 3,168 |
Equity in earnings | 352 | -11 |
Non-cash interest expense | 914 | 911 |
Deferred income taxes | 5 | 1,135 |
Other adjustments to reconcile net (loss)/income | 2,799 | 2,661 |
Changes in operating assets and liabilities: | ' | ' |
Trade accounts receivable | 64,203 | 85,538 |
Inventories | -32,663 | -69,405 |
Other operating assets and liabilities | -35,185 | -3,313 |
Cash (used in)/provided by operating activities of continuing operations | -4,116 | 9,962 |
Cash (used in)/provided by operating activities of discontinued operations | -7,195 | 13,354 |
Net cash (used in)/provided by operating activities | -11,311 | 23,316 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -10,558 | -12,100 |
Changes in restricted cash | -60,617 | ' |
Cash used in investing activities of continuing operations | -71,175 | -12,100 |
Cash provided by/(used in) investing activities of discontinued operations | 76,719 | -678 |
Net cash (used in)/ provided by investing activities | 5,544 | -12,778 |
Cash flows from financing activities: | ' | ' |
Borrowings on lines of credit | ' | 1,963 |
Payments on lines of credit | ' | -8,042 |
Borrowings on long-term debt | 70,966 | 47,879 |
Payments on long term debt | -50,370 | -23,200 |
Stock option exercises and employee stock purchases | 3,138 | 3,319 |
Payments of debt issuance costs | -335 | ' |
Intercompany | ' | ' |
Cash provided by financing activities of continuing operations | 23,399 | 21,919 |
Cash provided by financing activities of discontinued operations | ' | ' |
Net cash provided by/(used in) financing activities | 23,399 | 21,919 |
Effect of exchange rate changes on cash | -4,924 | -5,919 |
Net (decrease)/increase in cash and cash equivalents | 12,708 | 26,538 |
Cash and cash equivalents, beginning of period | 57,280 | 41,823 |
Cash and cash equivalents, end of period | 69,988 | 68,361 |
Quiksilver, Inc. [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net (loss)/income | 15,387 | -31,129 |
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ' | ' |
Income (loss) from discontinued operations | ' | ' |
Depreciation and amortization | 585 | 445 |
Stock based compensation | 5,063 | 7,336 |
Asset impairments | ' | ' |
Equity in earnings | -35,932 | 7,847 |
Non-cash interest expense | 462 | 392 |
Other adjustments to reconcile net (loss)/income | 35 | 154 |
Changes in operating assets and liabilities: | ' | ' |
Other operating assets and liabilities | 12,141 | 1,707 |
Cash (used in)/provided by operating activities of continuing operations | -2,259 | -13,248 |
Net cash (used in)/provided by operating activities | -2,259 | -13,248 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -1,970 | -1,708 |
Cash used in investing activities of continuing operations | -1,970 | -1,708 |
Net cash (used in)/ provided by investing activities | -1,970 | -1,708 |
Cash flows from financing activities: | ' | ' |
Borrowings on lines of credit | ' | ' |
Payments on lines of credit | ' | ' |
Borrowings on long-term debt | ' | ' |
Payments on long term debt | ' | ' |
Stock option exercises and employee stock purchases | 3,138 | 3,319 |
Payments of debt issuance costs | -373 | ' |
Intercompany | 1,463 | 11,732 |
Cash provided by financing activities of continuing operations | 4,228 | 15,051 |
Cash provided by financing activities of discontinued operations | ' | ' |
Net cash provided by/(used in) financing activities | 4,228 | 15,051 |
Effect of exchange rate changes on cash | ' | ' |
Net (decrease)/increase in cash and cash equivalents | -1 | 95 |
Cash and cash equivalents, beginning of period | 35 | 324 |
Cash and cash equivalents, end of period | 34 | 419 |
QS Wholesale, Inc. [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net (loss)/income | 6,787 | -135 |
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ' | ' |
Income (loss) from discontinued operations | -23,922 | ' |
Depreciation and amortization | 2,589 | 2,789 |
Provision for doubtful accounts | 1,088 | 226 |
Asset impairments | ' | ' |
Equity in earnings | 74 | -204 |
Non-cash interest expense | 239 | 330 |
Other adjustments to reconcile net (loss)/income | -9 | ' |
Changes in operating assets and liabilities: | ' | ' |
Trade accounts receivable | 12,327 | 14,023 |
Inventories | -9,271 | -19,663 |
Other operating assets and liabilities | -11,998 | 7,235 |
Cash (used in)/provided by operating activities of continuing operations | -22,096 | 4,601 |
Net cash (used in)/provided by operating activities | -22,096 | 4,601 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -2,397 | -1,517 |
Changes in restricted cash | -60,214 | ' |
Cash used in investing activities of continuing operations | -62,611 | -1,517 |
Cash provided by/(used in) investing activities of discontinued operations | 58,060 | ' |
Net cash (used in)/ provided by investing activities | -4,551 | -1,517 |
Cash flows from financing activities: | ' | ' |
Borrowings on lines of credit | ' | ' |
Payments on lines of credit | ' | ' |
Borrowings on long-term debt | 40,500 | 23,000 |
Payments on long term debt | -18,500 | -23,200 |
Stock option exercises and employee stock purchases | ' | ' |
Payments of debt issuance costs | 38 | ' |
Intercompany | 8,134 | -636 |
Cash provided by financing activities of continuing operations | 30,172 | -836 |
Cash provided by financing activities of discontinued operations | ' | ' |
Net cash provided by/(used in) financing activities | 30,172 | -836 |
Effect of exchange rate changes on cash | ' | ' |
Net (decrease)/increase in cash and cash equivalents | 3,525 | 2,248 |
Cash and cash equivalents, beginning of period | 3,733 | 1,966 |
Cash and cash equivalents, end of period | 7,258 | 4,214 |
Guarantor Subsidiaries [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net (loss)/income | 25,081 | -13,837 |
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ' | ' |
Income (loss) from discontinued operations | -13,531 | 170 |
Depreciation and amortization | 1,330 | 1,220 |
Provision for doubtful accounts | -209 | -1,427 |
Asset impairments | 222 | 1,335 |
Other adjustments to reconcile net (loss)/income | -219 | -105 |
Changes in operating assets and liabilities: | ' | ' |
Trade accounts receivable | 13,169 | 35,553 |
Inventories | -2,884 | -6,439 |
Other operating assets and liabilities | -16,366 | -13,751 |
Cash (used in)/provided by operating activities of continuing operations | 6,593 | 2,719 |
Cash (used in)/provided by operating activities of discontinued operations | -1,861 | 8,512 |
Net cash (used in)/provided by operating activities | 4,732 | 11,231 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -1,299 | -1,547 |
Cash used in investing activities of continuing operations | -1,299 | -1,547 |
Cash provided by/(used in) investing activities of discontinued operations | 18,991 | -33 |
Net cash (used in)/ provided by investing activities | 17,692 | -1,580 |
Cash flows from financing activities: | ' | ' |
Borrowings on lines of credit | ' | ' |
Payments on lines of credit | ' | ' |
Borrowings on long-term debt | ' | ' |
Payments on long term debt | ' | ' |
Stock option exercises and employee stock purchases | ' | ' |
Intercompany | -24,659 | -11,742 |
Cash provided by financing activities of continuing operations | -24,659 | -11,742 |
Cash provided by financing activities of discontinued operations | ' | ' |
Net cash provided by/(used in) financing activities | -24,659 | -11,742 |
Effect of exchange rate changes on cash | ' | ' |
Net (decrease)/increase in cash and cash equivalents | -2,235 | -2,091 |
Cash and cash equivalents, beginning of period | 296 | -1,831 |
Cash and cash equivalents, end of period | -1,939 | -3,922 |
Non-Guarantor Subsidiaries [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net (loss)/income | 12,867 | 5,574 |
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ' | ' |
Income (loss) from discontinued operations | -164 | -769 |
Depreciation and amortization | 6,041 | 7,489 |
Provision for doubtful accounts | 783 | 2,449 |
Asset impairments | 661 | 1,833 |
Equity in earnings | 352 | -11 |
Non-cash interest expense | 213 | 189 |
Deferred income taxes | 5 | 1,135 |
Other adjustments to reconcile net (loss)/income | 2,992 | 2,612 |
Changes in operating assets and liabilities: | ' | ' |
Trade accounts receivable | 38,707 | 35,962 |
Inventories | -29,849 | -41,888 |
Other operating assets and liabilities | -18,962 | 1,496 |
Cash (used in)/provided by operating activities of continuing operations | 13,646 | 16,071 |
Cash (used in)/provided by operating activities of discontinued operations | -5,334 | 4,661 |
Net cash (used in)/provided by operating activities | 8,312 | 20,732 |
Cash flows from investing activities | ' | ' |
Capital expenditures | -4,892 | -7,328 |
Changes in restricted cash | -403 | ' |
Cash used in investing activities of continuing operations | -5,295 | -7,328 |
Cash provided by/(used in) investing activities of discontinued operations | -332 | -645 |
Net cash (used in)/ provided by investing activities | -5,627 | -7,973 |
Cash flows from financing activities: | ' | ' |
Borrowings on lines of credit | ' | 1,963 |
Payments on lines of credit | ' | -8,042 |
Borrowings on long-term debt | 30,466 | 24,879 |
Payments on long term debt | -31,870 | ' |
Stock option exercises and employee stock purchases | ' | ' |
Intercompany | 15,062 | 646 |
Cash provided by financing activities of continuing operations | 13,658 | 19,446 |
Cash provided by financing activities of discontinued operations | ' | ' |
Net cash provided by/(used in) financing activities | 13,658 | 19,446 |
Effect of exchange rate changes on cash | -4,924 | -5,919 |
Net (decrease)/increase in cash and cash equivalents | 11,419 | 26,286 |
Cash and cash equivalents, beginning of period | 53,216 | 41,364 |
Cash and cash equivalents, end of period | 64,635 | 67,650 |
Eliminations [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net (loss)/income | -45,199 | 8,903 |
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ' | ' |
Income (loss) from discontinued operations | ' | -26 |
Asset impairments | ' | ' |
Equity in earnings | 35,858 | -7,643 |
Changes in operating assets and liabilities: | ' | ' |
Inventories | 9,341 | -1,415 |
Cash (used in)/provided by operating activities of continuing operations | ' | -181 |
Cash (used in)/provided by operating activities of discontinued operations | ' | 181 |
Cash flows from financing activities: | ' | ' |
Borrowings on lines of credit | ' | ' |
Payments on lines of credit | ' | ' |
Borrowings on long-term debt | ' | ' |
Payments on long term debt | ' | ' |
Stock option exercises and employee stock purchases | ' | ' |
Intercompany | ' | ' |
Cash provided by financing activities of continuing operations | ' | ' |
Cash provided by financing activities of discontinued operations | ' | ' |
Net cash provided by/(used in) financing activities | ' | ' |
Effect of exchange rate changes on cash | ' | ' |
Net (decrease)/increase in cash and cash equivalents | ' | ' |
Cash and cash equivalents, beginning of period | ' | ' |
Cash and cash equivalents, end of period | ' | ' |