Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Oct. 31, 2014 | Dec. 03, 2014 | Apr. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Oct-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ZQK | ||
Entity Registrant Name | QUIKSILVER INC | ||
Entity Central Index Key | 805305 | ||
Current Fiscal Year End Date | -21 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 174,057,410 | ||
Entity Public Float | $875 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Income Statement [Abstract] | |||
Revenues, net | $1,570,399 | $1,810,570 | $1,941,849 |
Cost of goods sold | 807,558 | 938,139 | 1,000,530 |
Gross profit | 762,841 | 872,431 | 941,319 |
Selling, general and administrative expense | 827,181 | 857,557 | 888,250 |
Goodwill impairments | 178,197 | 0 | 0 |
Asset impairments | 10,934 | 12,327 | 7,234 |
Operating (loss)/income | -253,471 | 2,547 | 45,835 |
Interest expense, net | 75,991 | 71,049 | 60,885 |
Foreign currency loss/(gain) | 2,658 | 4,689 | -1,709 |
Loss before (benefit)/provision for income taxes | -332,120 | -73,191 | -13,341 |
(Benefit)/provision for income taxes | -4,325 | 166,220 | 3,904 |
Loss from continuing operations | -327,795 | -239,411 | -17,245 |
Income from discontinued operations, net of tax (includes net gain on sale of $29,742 for the year ended October 31, 2014) | 7,649 | 5,886 | 7,502 |
Net loss | -320,146 | -233,525 | -9,743 |
Less: net loss/(income) attributable to non-controlling interest | 10,769 | 960 | -1,013 |
Net loss attributable to Quiksilver, Inc. | -309,377 | -232,565 | -10,756 |
Loss per share from continuing operations attributable to Quiksilver, Inc. (usd per share) | ($1.92) | ($1.43) | ($0.11) |
Income per share from discontinued operations attributable to Quiksilver, Inc. (usd per share) | $0.11 | $0.04 | $0.04 |
Net loss per share attributable to Quiksilver, Inc. (usd per share) | ($1.81) | ($1.39) | ($0.07) |
Loss per share from continuing operations attributable to Quiksilver, Inc., assuming dilution (usd per share) | ($1.92) | ($1.43) | ($0.11) |
Income per share from discontinued operations attributable to Quiksilver, Inc., assuming dilution (usd per share) | $0.11 | $0.04 | $0.04 |
Net loss per share attributable to Quiksilver, Inc., assuming dilution (usd per share) | ($1.81) | ($1.39) | ($0.07) |
Weighted average common shares outstanding, basic | 170,492 | 167,255 | 164,245 |
Weighted average common shares outstanding, diluted | 170,492 | 167,255 | 164,245 |
Amounts attributable to Quiksilver, Inc.: | |||
Loss from continuing operations | -327,434 | -238,766 | -18,019 |
Income from discontinued operations, net of tax | 18,057 | 6,201 | 7,263 |
Net loss attributable to Quiksilver, Inc. | ($309,377) | ($232,565) | ($10,756) |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations-parenthetical (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Oct. 31, 2014 |
Income Statement [Abstract] | |
Gain on sale of discontinued operations | $29,742 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net loss | ($320,146) | ($233,525) | ($9,743) |
Other comprehensive loss: | |||
Foreign currency translation adjustment | -25,304 | -2,147 | -43,574 |
Reclassification adjustment for realized (loss)/gain on derivative instruments transferred to earnings, net of tax provision/(benefit) of $(748) (2014), $0 (2013), and $564 (2012) | -597 | -8,137 | -365 |
Reclassification adjustment for realized foreign currency gain/(loss) transferred to earnings, net of tax benefit of $0 (2014), $0 (2013), and $(373) (2012) | 0 | -343 | 929 |
Net unrealized gain/(loss) on derivative instruments, net of tax provision of $1,232 (2014), $0 (2013), and $6,244 (2012) | 9,281 | -1,867 | 13,295 |
Comprehensive loss | -336,766 | -246,019 | -39,458 |
Comprehensive loss/(income) attributable to non-controlling interest | 10,769 | 960 | -1,013 |
Comprehensive loss attributable to Quiksilver, Inc. | ($325,997) | ($245,059) | ($40,471) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Loss (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Statement of Partners' Capital [Abstract] | |||
Reclassification adjustment on derivative instruments transferred to earnings, tax | ($748) | $0 | $564 |
Reclassification adjustment for realized foreign currency gain (loss) transferred to earnings, tax | 0 | 0 | -373 |
Tax provision (benefit) on net gain/(loss) on derivative instruments | $1,232 | $0 | $6,244 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $46,664 | $57,280 |
Restricted cash | 4,687 | 0 |
Trade accounts receivable, net | 319,840 | 411,638 |
Other receivables | 40,847 | 23,306 |
Inventories | 278,780 | 337,715 |
Deferred income taxes-current | 4,926 | 9,997 |
Prepaid expenses and other current assets | 28,080 | 24,124 |
Current portion of assets held for sale | 20,265 | 51,196 |
Total current assets | 744,089 | 915,256 |
Restricted cash, noncurrent | 16,514 | 0 |
Fixed assets, net | 213,768 | 231,261 |
Intangible assets, net | 135,510 | 134,596 |
Goodwill | 80,622 | 261,625 |
Other assets | 47,086 | 53,287 |
Deferred income taxes long-term | 16,088 | 0 |
Assets held for sale, net of current portion | 2,987 | 24,445 |
Total assets | 1,256,664 | 1,620,470 |
Current liabilities: | ||
Lines of credit | 32,929 | 0 |
Accounts payable | 168,307 | 201,675 |
Accrued liabilities | 112,701 | 121,545 |
Current portion of long-term debt | 2,432 | 23,488 |
Income taxes payable | 1,156 | 3,912 |
Deferred income taxes-current | 19,628 | 0 |
Current portion of assets held for sale | 12,640 | 16,420 |
Total current liabilities | 349,793 | 367,040 |
Long-term debt, net of current portion | 793,229 | 807,812 |
Other long-term liabilities | 39,342 | 36,345 |
Deferred income taxes long-term | 16,790 | 19,896 |
Assets held for sale, net of current portion | 0 | 1,719 |
Total liabilities | 1,199,154 | 1,232,812 |
Commitments and contingencies – Note 10 | ||
Equity: | ||
Preferred stock, $0.01 par value, authorized shares - 5,000,000; issued and outstanding shares – none | 0 | 0 |
Common stock, $0.01 par value, authorized shares - 285,000,000; issued shares – 174,057,410 (2014) and 172,579,182 (2013) | 1,741 | 1,726 |
Additional paid-in capital | 589,032 | 576,726 |
Treasury stock, 2,885,200 shares | -6,778 | -6,778 |
Accumulated deficit | -585,263 | -275,886 |
Accumulated other comprehensive income | 57,298 | 73,918 |
Total Quiksilver, Inc. stockholders’ equity | 56,030 | 369,706 |
Non-controlling interest | 1,480 | 17,952 |
Total equity | 57,510 | 387,658 |
Total liabilities and equity | $1,256,664 | $1,620,470 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (usd per share) | $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 (usd per share) | $0.01 | $0.01 |
Common stock, shares authorized | 285,000,000 | 285,000,000 |
Common stock, shares issued | 174,057,410 | 172,579,182 |
Treasury stock, shares | 2,885,200 | 2,885,200 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income | Non- Controlling Interest |
In Thousands, except Share data, unless otherwise specified | |||||||
Beginning balance at Oct. 31, 2011 | $622,622 | $1,681 | $531,633 | ($6,778) | ($32,565) | $116,127 | $12,524 |
Beginning balance, shares at Oct. 31, 2011 | 168,054,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options | 1,127 | 5 | 1,122 | ||||
Exercise of stock options (shares) | 506,329 | 506,000 | |||||
Stock compensation expense | 22,552 | 22,552 | |||||
Restricted stock | 0 | ||||||
Restricted stock, shares | 45,000 | ||||||
Employee stock purchase plan | 1,114 | 5 | 1,109 | ||||
Employee stock purchase plan, shares | 461,000 | ||||||
Transactions with non-controlling interest holders | -17,585 | -11,110 | -6,475 | ||||
Business acquisitions | 11,864 | 11,864 | |||||
Net loss and other comprehensive income | -39,458 | -10,756 | -29,715 | 1,013 | |||
Ending balance at Oct. 31, 2012 | 602,236 | 1,691 | 545,306 | -6,778 | -43,321 | 86,412 | 18,926 |
Ending balance, shares at Oct. 31, 2012 | 169,066,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options | 8,769 | 30 | 8,739 | ||||
Exercise of stock options (shares) | 2,985,792 | 2,986,000 | |||||
Stock compensation expense | 21,556 | 21,556 | |||||
Restricted stock | 1 | -1 | |||||
Restricted stock, shares | 78,000 | ||||||
Employee stock purchase plan | 1,175 | 4 | 1,171 | ||||
Employee stock purchase plan, shares | 449,000 | ||||||
Transactions with non-controlling interest holders | -59 | -45 | -14 | ||||
Net loss and other comprehensive income | -246,019 | -232,565 | -12,494 | -960 | |||
Ending balance at Oct. 31, 2013 | 387,658 | 1,726 | 576,726 | -6,778 | -275,886 | 73,918 | 17,952 |
Ending balance, shares at Oct. 31, 2013 | 172,579,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Exercise of stock options | 4,580 | 11 | 4,569 | ||||
Exercise of stock options (shares) | 1,058,416 | 1,070,000 | |||||
Stock compensation expense | 17,260 | 17,260 | |||||
Restricted stock | 1 | -1 | |||||
Restricted stock, shares | 75,000 | ||||||
Employee stock purchase plan | 1,321 | 3 | 1,318 | ||||
Employee stock purchase plan, shares | 333,000 | ||||||
Transactions with non-controlling interest holders | -16,543 | -10,840 | -5,703 | ||||
Net loss and other comprehensive income | -336,766 | -309,377 | -16,620 | -10,769 | |||
Ending balance at Oct. 31, 2014 | $57,510 | $1,741 | $589,032 | ($6,778) | ($585,263) | $57,298 | $1,480 |
Ending balance, shares at Oct. 31, 2014 | 174,057,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Cash flows from operating activities: | |||
Net loss | ($320,146) | ($233,525) | ($9,743) |
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | |||
Income from discontinued operations | -7,649 | -5,886 | -7,502 |
Depreciation and amortization | 51,938 | 49,958 | 52,418 |
Stock-based compensation | 17,260 | 21,556 | 22,552 |
Provision for doubtful accounts | 21,856 | 5,729 | 4,030 |
(Gain)/loss on disposal of fixed assets | -5,056 | 218 | -6,366 |
Unrealized foreign currency gain | -1,464 | -1,600 | -155 |
Asset impairments | 189,131 | 12,327 | 7,234 |
Non-cash interest expense | 3,469 | 6,795 | 3,685 |
Equity in earnings | 228 | 613 | 282 |
Deferred income taxes | -4,823 | 159,097 | -8,621 |
Subtotal of non-cash reconciling adjustments | 264,890 | 248,807 | 67,557 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | 50,607 | -1,220 | -50,750 |
Other receivables | -6,267 | -759 | -89 |
Inventories | 37,097 | -11,860 | 7,183 |
Prepaid expenses and other current assets | -7,776 | -1,176 | -5,018 |
Other assets | 1,073 | 3,798 | 2,146 |
Accounts payable | -29,524 | 7,750 | -6,087 |
Accrued liabilities and other long-term liabilities | 6,768 | 9,258 | -4,677 |
Income taxes payable | -5,243 | 3,815 | -15,094 |
Subtotal of changes in operating assets and liabilities | 46,735 | 9,606 | -72,386 |
Cash (used in)/provided by operating activities of continuing operations | -8,521 | 24,888 | -14,572 |
Cash (used in)/provided by operating activities of discontinued operations | -18,414 | 2,304 | 1,033 |
Net cash (used in)/provided by operating activities | -26,935 | 27,192 | -13,539 |
Cash flows from investing activities: | |||
Capital expenditures | -53,415 | -52,182 | -63,343 |
Changes in restricted cash | -21,201 | 0 | 0 |
Proceeds from the sale of properties and equipment | 5,650 | 859 | 8,198 |
Cash used in investing activities of continuing operations | -68,966 | -51,323 | -55,145 |
Cash provided by/(used in) investing activities of discontinued operations | 75,114 | -2,570 | -11,855 |
Net cash provided by/(used in) investing activities | 6,148 | -53,893 | -67,000 |
Cash flows from financing activities: | |||
Borrowings on lines of credit | 57,413 | 6,157 | 15,139 |
Payments on lines of credit | -24,485 | -22,561 | -12,641 |
Borrowings on long-term debt | 197,086 | 652,915 | 140,035 |
Payments on long-term debt | -222,172 | -582,456 | -112,841 |
Stock option exercises and employee stock purchases | 5,902 | 9,944 | 2,241 |
Purchase of non-controlling interest | 0 | -58 | -11,000 |
Payments of debt issuance costs | -123 | -14,277 | 0 |
Cash provided by financing activities of continuing operations | 13,621 | 49,664 | 20,933 |
Net cash provided by financing activities | 13,621 | 49,664 | 20,933 |
Effect of exchange rate changes on cash | -3,450 | -7,506 | -8,324 |
Net (decrease)/increase in cash and cash equivalents | -10,616 | 15,457 | -67,930 |
Cash and cash equivalents, beginning of year | 57,280 | 41,823 | 109,753 |
Cash and cash equivalents, end of year | 46,664 | 57,280 | 41,823 |
Supplementary cash flow information: | |||
Cash paid for interest | 73,772 | 52,115 | 54,788 |
Cash paid for income taxes | 17,056 | 11,799 | 25,733 |
Summary of significant non-cash transactions: | |||
Capital expenditures accrued at year-end (investing activities) | 10,556 | 5,432 | 6,026 |
Debt issued for purchase of non-controlling interest (financing activities) | $17,388 | $0 | $0 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Significant Accounting Policies | Significant Accounting Policies | ||||||||||||
Company Business | |||||||||||||
Quiksilver, Inc. and its subsidiaries (the “Company”) design, develop and distribute branded apparel, footwear, accessories and related products. The Company’s apparel and footwear brands represent a casual lifestyle for young-minded people that connect with its boardriding culture and heritage. The Company’s Quiksilver, Roxy, and DC brands are synonymous with the heritage and culture of surfing, skateboarding and snowboarding. The Company’s products are sold in over 115 countries in a wide range of distribution points, including surf shops, skate shops, snow shops, its proprietary concept stores, other specialty stores and select department stores. Distribution is primarily in the United States, Europe and Australia. | |||||||||||||
The Company currently operates in four segments: the Americas, EMEA, APAC, each of which sells a full range of the Company's products, as well as Corporate Operations. See Note 2, "Segments and Geographic Information" for further discussion. | |||||||||||||
Principles of Consolidation | |||||||||||||
The consolidated financial statements include the accounts of Quiksilver, Inc. and its subsidiaries, (the "Company"). All intercompany transactions and balances have been eliminated. | |||||||||||||
The Company completed the sale of Mervin Manufacturing, Inc. ("Mervin") and substantially all of the assets of Hawk Designs, Inc. ("Hawk") during the first quarter ended January 31, 2014. In December 2014, the Company sold its majority stake in its Surfdome Shop, Ltd. ("Surfdome") for net proceeds of approximately $16 million. As a result, the Company reports the operating results of Mervin, Hawk and Surfdome in "Income from discontinued operations, net of tax" in the consolidated statements of operations for all periods presented. In addition, the assets and liabilities associated with these businesses are reported as discontinued operations in the consolidated balance sheets (see Note 18, "Discontinued Operations"). Unless otherwise indicated, the disclosures accompanying the consolidated financial statements reflect the Company's continuing operations. | |||||||||||||
Basis of Presentation | |||||||||||||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, ("GAAP"). References to any particular fiscal year refer to the year ended October 31 of that year (for example, “fiscal 2014” refers to the year ended October 31, 2014). | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Cash Equivalents | |||||||||||||
Cash equivalents represent cash and short-term, highly liquid investments, including commercial paper, U.S. Treasury, U.S. Agency, and corporate debt securities with original maturities of three months or less at the date of purchase. Cash equivalents represent Level 1 fair value investments. See the Fair Value Measurements section below for further details. | |||||||||||||
Restricted Cash | |||||||||||||
Restricted cash represents cash that is designated for specific uses according to the terms and conditions of certain of the Company's credit facilities. The nature of the permitted usage of restricted cash determines its classification on the Company's balance sheet. Amounts reported within current assets are available for use in current operations within certain parameters. Amounts reported within long-term assets can only be used for capital expenditures, acquisitions or other long-term investment needs. The Company expects that all restricted cash will be utilized during fiscal 2015. | |||||||||||||
Inventories | |||||||||||||
Inventories are valued at the lower of cost (first-in, first-out and moving average, depending on entity) or market. Management regularly reviews the inventory quantities on hand and adjusts inventory values for excess and obsolete inventory based primarily on estimated forecasts of product demand and market value. | |||||||||||||
Fixed Assets, net | |||||||||||||
Furniture and other equipment, computer equipment and buildings are recorded at cost and depreciated on a straight-line basis over their estimated useful lives, which generally range from two to twenty years. Leasehold improvements are recorded at cost and amortized over their estimated useful lives or related lease term, whichever is shorter. Land use rights for certain leased retail locations are amortized to estimated residual value and are tested for impairment when the store subject to the land use right has an indicator of impairment. Depreciation and amortization of all assets are recorded in selling, general and administrative expense ("SG&A"). | |||||||||||||
Long-lived Assets | |||||||||||||
The Company accounts for the impairment and disposition of long-lived assets in accordance with Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment.” In accordance with ASC 360, management assesses potential impairments of its long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized when the carrying value exceeds the undiscounted future cash flows estimated to result from the use and eventual disposition of the asset. The Company recorded approximately $11 million in fixed asset impairments primarily related to its retail stores during fiscal 2014, $12 million in fiscal 2013 and $7 million in fiscal 2012 to write-down the carrying value to their estimated fair values. Fair value is determined using a discounted cash flow model which requires “Level 3” inputs, as defined in ASC 820, “Fair Value Measurements and Disclosures.” See the Fair Value Measurements section below. On an individual retail store basis, these inputs typically include annual revenue growth assumptions ranging from (15)% to 20% per year depending upon the location, life cycle and current economics of a specific store, as well as modest gross margin and expense improvement assumptions. The impairment charges reduced the carrying amounts of the respective long-lived assets as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||
Carrying value of long-lived assets | $ | 10,934 | $ | 10,181 | $ | 7,933 | |||||||
Less: impairment charges | (10,934 | ) | (10,181 | ) | (7,234 | ) | |||||||
Fair value of long-lived assets | $ | — | $ | — | $ | 699 | |||||||
Goodwill and Intangible Assets | |||||||||||||
The Company accounts for goodwill and intangible assets in accordance with ASC 350, “Intangibles - Goodwill and Other.” Under ASC 350, goodwill and intangible assets with indefinite lives are not amortized but are tested for impairment annually and also in the event of an impairment indicator. The annual impairment test is a fair value test as prescribed by ASC 350 which includes assumptions for each reporting unit. The assumptions for the Company include projected annual revenue growth ranging from (14)% to 17% per year, annual gross margin improvements ranging from (10) to 250 basis points per year, and SG&A improvements ranging from (50) to 1,290 basis points per year as a percentage of net revenues, and discount rates. | |||||||||||||
In fiscal 2014, the Company recorded goodwill impairment charges of approximately $178 million to fully impair goodwill associated with its EMEA reporting segment. No goodwill impairments were recorded in fiscal 2013 or fiscal 2012. | |||||||||||||
As of October 31, 2014, the fair values of each of the Company’s reporting units substantially exceeded their carrying values. Goodwill amounted to $74 million for the Americas and $6 million for APAC as of October 31, 2014. Based on the uncertainty of future revenue growth rates, gross profit and expense performance, and other assumptions used to estimate goodwill recoverability in the Company’s reporting units, future reductions in the Company’s expected cash flows for a reporting unit as a result of any variation between projected and actual results could cause an impairment of goodwill. | |||||||||||||
See Note 7, "Intangible Assets and Goodwill," for further details regarding the goodwill impairments that were recorded in fiscal 2014. | |||||||||||||
Fair Value Measurements | |||||||||||||
ASC 820 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: | |||||||||||||
The Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives. Fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. The Company uses a three-level hierarchy established in ASC 820 that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). | |||||||||||||
The levels of hierarchy are described below: | |||||||||||||
• | 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 assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Financial assets and liabilities are classified in their entirety based on the most conservative level of input that is significant to the fair value measurement. | |||||||||||||
Pricing vendors are utilized for certain Level 1 and Level 2 investments. These vendors either provide a quoted market price in an active market or use observable inputs without applying significant adjustments in their pricing. Observable inputs include broker quotes, interest rates and yield curves observable at commonly quoted intervals, volatilities and credit risks. The Company’s fair value processes include controls that are designed to ensure appropriate fair values are recorded. These controls include an analysis of period-over-period fluctuations and comparison to another independent pricing vendor. | |||||||||||||
For fair value disclosures related to the Company’s cash, long-lived assets and debt, see the sections above entitled, “Cash Equivalents”, “Long-lived Assets”, and Note 8, "Debt", respectively. | |||||||||||||
Assets Held for Sale/Discontinued Operations | |||||||||||||
The Company applies the guidance set forth in ASC 360, “Property, Plant and Equipment” and ASC 205, “Presentation of Financial Statements” to determine when certain asset groups should be classified as “held for sale” and reported as discontinued operations in its consolidated financial statements. As a result of the application of this guidance, the Company has classified certain asset groups as “held for sale” as of October 31, 2014. See Note 18, “Discontinued Operations”, for further details regarding the operating results of the Company’s discontinued operations. | |||||||||||||
Revenue Recognition | |||||||||||||
Revenues are recognized upon the transfer of title and risk of ownership to customers. For wholesale customers, transfer is based on the terms of sale, typically at the shipping point. For retail and e-commerce customers, transfer occurs at the time of sale. Allowances for estimated returns and doubtful accounts, non-merchandise credits, and certain co-op advertising arrangements are provided when revenues are recorded. Returns and allowances are reported as reductions in revenues, whereas allowances for bad debts are reported as a component of SG&A expense. Royalty and license income is recorded as earned. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. | |||||||||||||
Revenues in the consolidated statements of operations include the following: | |||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||
Product sales, net | $ | 1,559,174 | $ | 1,801,355 | $ | 1,929,086 | |||||||
Royalty and licensing income | 11,225 | 9,215 | 12,763 | ||||||||||
Total | $ | 1,570,399 | $ | 1,810,570 | $ | 1,941,849 | |||||||
Promotion and Advertising | |||||||||||||
The Company’s promotion and advertising efforts include magazine advertisements, retail signage, athlete sponsorships, boardriding contests, websites, television programs, co-branded products, social media and other events. For fiscal 2014, 2013 and 2012, these expenses totaled $78 million, $93 million and $118 million, respectively. Advertising costs are expensed when incurred. | |||||||||||||
Rent Expense | |||||||||||||
The Company enters into non-cancelable operating leases for retail stores, distribution facilities, equipment, and office space. Most leases have fixed rentals, with many of the real estate leases requiring normal and customary additional payments for real estate taxes and occupancy-related costs. Rent expense for leases having rent holidays, landlord incentives or scheduled rent increases is recorded on a straight-line basis over the lease term, generally beginning with the lease commencement date. Differences between straight-line rent expense and actual rent payments are recorded in other assets or other liabilities as an adjustment to rent expense over the lease term. | |||||||||||||
Income Taxes | |||||||||||||
The Company accounts for income taxes using the asset and liability approach as promulgated by the authoritative guidance included in ASC 740, “Income Taxes.” Deferred income tax assets and liabilities are established for temporary differences between the financial reporting bases and the tax bases of the Company’s assets and liabilities at tax rates expected to be in effect when such assets or liabilities are realized or settled. Deferred income tax assets are reduced by a valuation allowance if, in the judgment of the Company’s management, it is more likely than not that such assets will not be realized. The Company evaluated the recoverability of its deferred tax assets at the end of fiscal 2014 in accordance with ASC 740. | |||||||||||||
ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in the financial statements. This guidance provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the tax position. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of its provision for income taxes. The application of this guidance can create significant variability in the effective tax rate from period to period based upon changes in or adjustments to the Company’s uncertain tax positions. | |||||||||||||
Stock-based Compensation Expense | |||||||||||||
The Company recognizes compensation expense for all stock-based payments net of an estimated forfeiture rate and only recognizes compensation cost for those shares expected to vest using the graded vested method over the requisite service period of the award. For option valuations, the Company determines the fair value at the grant date using the Black-Scholes option-pricing model which requires the input of certain assumptions, including the expected life of the stock-based payment awards, stock price volatility and interest rates. For performance based equity awards with stock price contingencies, the Company determines the fair value using a Monte-Carlo simulation, which creates a normal distribution of future stock prices, which is then used to value the awards based on their individual terms. | |||||||||||||
Net Loss per Share | |||||||||||||
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: | |||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||
Shares used in computing basic net loss per share | 170,492 | 167,255 | 164,245 | ||||||||||
Dilutive effect of stock options and restricted stock(1) | — | — | — | ||||||||||
Dilutive effect of stock warrants(1) | — | — | — | ||||||||||
Shares used in computing diluted net loss per share | 170,492 | 167,255 | 164,245 | ||||||||||
-1 | For fiscal 2014, 2013 and 2012, the shares used in computing diluted net loss per share do not include 2,145,000, 3,862,000, and 3,103,000 dilutive stock options and shares of restricted stock, respectively, nor 17,024,000, 17,792,000, and 11,559,000 dilutive warrant shares, respectively, as the effect is anti-dilutive given the Company’s loss. For fiscal 2014, 2013 and 2012, additional stock options outstanding of 4,856,000, 5,409,000, and 10,559,000, respectively, and additional warrant shares outstanding of 8,630,000, 7,862,000, and 14,095,000, respectively, were excluded from the calculation of diluted net loss per share, as their effect would have been anti-dilutive based on the application of the treasury stock method. | ||||||||||||
Foreign Currency Translation and Foreign Currency Transactions | |||||||||||||
The Company's reporting currency is the U.S dollar. The functional currencies of the Company's subsidiaries within its EMEA and APAC segments are primarily the Euro, and the Australian dollar and the Japanese yen, respectively. The functional currency of the Company's subsidiaries within its Americas segment is primarily the U.S. dollar. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are included in the foreign currency translation adjustment, a component of accumulated other comprehensive income in shareholders’ equity. | |||||||||||||
The Company’s global subsidiaries have various assets and liabilities, primarily receivables and payables, which are denominated in currencies other than their functional currency. These balance sheet items are subject to remeasurement, the impact of which is recorded in "Foreign currency loss/(gain)" within the consolidated statements of operations. | |||||||||||||
Derivatives | |||||||||||||
Derivative financial instruments are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of a derivative depends on the use and type of the derivative. The Company’s derivative financial instruments principally consist of foreign currency exchange rate contracts, which the Company uses to manage its exposure to the risk of changes in foreign currency exchange rates. The Company’s objectives are to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not enter into derivative financial instruments for speculative or trading purposes. | |||||||||||||
Comprehensive Income or Loss | |||||||||||||
Comprehensive income or loss includes all changes in stockholders’ equity except those resulting from investments by, and distributions to, stockholders. Accordingly, the Company’s consolidated statements of comprehensive loss include its net loss, the fair value gains and losses on certain derivative instruments and adjustments resulting from translating foreign functional currency financial statements into U.S. dollars for the Company's subsidiaries within the EMEA and APAC segments and the foreign entities within the Americas segment. See Note 2 "Segment and Geographic Information" for further detail on the Company's segments. | |||||||||||||
New Accounting Pronouncements | |||||||||||||
In April 2014, the FASB issued Accounting Standards Update ("ASU") 2014-08 Presentation of Financial Statements (Topic 205) and Property Plant and Equipment (Topic 360), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity which provides amended guidance on the presentation of financial statements and reporting discontinued operations and disclosures of disposals of components of an entity within property, plant and equipment. ASU 2014-08 amends the definition of a discontinued operation and requires entities to disclose additional information about disposal transactions that do not meet the discontinued operations criteria. The effective date of ASU 2014-08 is for disposals that occur in annual periods (and interim periods therein) beginning on or after December 15, 2014, with early adoption permitted. The Company is currently evaluating the impact, if any, that this amended guidance may have on its consolidated financial statements and related disclosures. | |||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides a single, comprehensive framework for all entities in all industries to apply in the determination of when to recognize revenue, and, therefore, supersedes virtually all existing revenue recognition requirements and guidance. This framework is expected to result in less complex guidance in application while providing a consistent and comparable methodology for revenue recognition. The core principle of the guidance is that an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. ASU 2014-09 is effective for annual periods (and interim periods therein) beginning on or after December 15, 2016. Early adoption is not permitted. The Company is currently in the process of evaluating the impact that this amended guidance will have on its consolidated financial statements and related disclosures. | |||||||||||||
In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation, which clarifies accounting for share-based payments for which the terms of an award provide that a performance target could be achieved after the requisite service period. That is the case when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target could be achieved and still be eligible to vest in the award if and when the performance target is achieved. The updated guidance clarifies that such a term should be treated as a performance condition that affects vesting. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The guidance will be effective for the Company beginning with fiscal year 2016, and may be applied either prospectively or retrospectively. The Company does not anticipate that this guidance will materially impact its consolidated financial statements and related disclosures. | |||||||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern, which will require an entity’s management to assess, for each annual and interim period, whether there is substantial doubt about the entity’s ability to continue as a going concern within one year of the financial statement issuance date. The definition of substantial doubt within the new standard incorporates a likelihood threshold of “probable” similar to the use of that term under current GAAP for loss contingencies. Certain disclosures will be required if conditions give rise to substantial doubt. The guidance will be effective for the Company beginning with fiscal year 2017. Early adoption is permitted. The Company is currently evaluating the impact that this amended guidance will have on its consolidated financial statements and related disclosures. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment and Geographic Information | Segment and Geographic 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 currently operates in four segments: the Americas, EMEA, 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 profits earned from the Company's licensees. | |||||||||||||
Information related to the Company’s operating segments, all from continuing operations, is as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||
Revenues, net: | |||||||||||||
Americas | $ | 723,427 | $ | 893,333 | $ | 960,719 | |||||||
EMEA | 583,650 | 631,546 | 671,991 | ||||||||||
APAC | 262,494 | 282,070 | 305,518 | ||||||||||
Corporate operations | 828 | 3,621 | 3,621 | ||||||||||
Total | $ | 1,570,399 | $ | 1,810,570 | $ | 1,941,849 | |||||||
Gross profit/(loss): | |||||||||||||
Americas | $ | 298,910 | $ | 370,288 | $ | 408,361 | |||||||
EMEA | 324,542 | 358,175 | 376,929 | ||||||||||
APAC | 143,452 | 143,874 | 156,328 | ||||||||||
Corporate operations | (4,063 | ) | 94 | (299 | ) | ||||||||
Total | $ | 762,841 | $ | 872,431 | $ | 941,319 | |||||||
SG&A expense: | |||||||||||||
Americas | $ | 317,749 | $ | 319,736 | $ | 349,350 | |||||||
EMEA | 310,861 | 324,346 | 322,715 | ||||||||||
APAC | 155,540 | 146,389 | 157,145 | ||||||||||
Corporate operations | 43,031 | 67,086 | 59,040 | ||||||||||
Total | $ | 827,181 | $ | 857,557 | $ | 888,250 | |||||||
Asset impairments: | |||||||||||||
Americas | $ | 6,672 | $ | 9,211 | $ | 5,267 | |||||||
EMEA | 179,608 | 3,004 | 560 | ||||||||||
APAC | 808 | 112 | 1,407 | ||||||||||
Corporate operations | 2,043 | — | — | ||||||||||
Total | $ | 189,131 | $ | 12,327 | $ | 7,234 | |||||||
Operating (loss)/income: | |||||||||||||
Americas | $ | (25,511 | ) | $ | 41,341 | $ | 53,744 | ||||||
EMEA | (165,927 | ) | 30,825 | 53,654 | |||||||||
APAC | (12,896 | ) | (2,627 | ) | (2,224 | ) | |||||||
Corporate operations | (49,137 | ) | (66,992 | ) | (59,339 | ) | |||||||
Total | $ | (253,471 | ) | $ | 2,547 | $ | 45,835 | ||||||
Identifiable assets: | |||||||||||||
Americas | $ | 467,920 | $ | 581,021 | $ | 576,179 | |||||||
EMEA | 510,896 | 744,936 | 718,537 | ||||||||||
APAC | 202,225 | 222,542 | 224,149 | ||||||||||
Corporate operations | 75,623 | 71,971 | 199,375 | ||||||||||
Total | $ | 1,256,664 | $ | 1,620,470 | $ | 1,718,240 | |||||||
Net revenues from the United States accounted for 35%, 38%, and 39% of consolidated net revenues from continuing operations for fiscal 2014, 2013 and 2012, respectively. Net revenues from France accounted for 12%, 12%, and 11% of consolidated net revenues from continuing operations for fiscal 2014, 2013 and 2012, respectively. No other individual country accounted for more than 7% of consolidated net revenues from continuing operations for the periods presented. Net revenues from all foreign countries combined accounted for 65%, 62% and 61% of consolidated net revenues from continuing operations for fiscal 2014, 2013 and 2012, respectively. Identifiable assets in the United States totaled $462 million as of October 31, 2014. | |||||||||||||
During fiscal 2014, the Company made various organizational changes toward global centralization of certain business functions, including merchandising and design, marketing, and supply chain, among others. As a result, certain of these costs were allocated across the regional segments commensurate with the proportionate benefits received from those business functions. Consequently, year-over-year segment SG&A expense may not be directly comparable. Please refer to MD&A for a discussion of SG&A expense on a consolidated basis as well as by segment. | |||||||||||||
The Company sells a full range of its products within each geographical segment. The percentages of net revenues from continuing operations attributable to each of the Company’s product groups are as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Apparel and accessories | 75 | % | 75 | % | 73 | % | |||||||
Footwear | 25 | % | 25 | % | 27 | % | |||||||
Total | 100 | % | 100 | % | 100 | % | |||||||
The Company’s largest customer accounted for approximately 3% of the Company’s net revenues for fiscal 2014, 2013 and 2012. |
Restricted_Cash
Restricted Cash | 12 Months Ended |
Oct. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash |
The Company's restricted cash balance as of October 31, 2014 was $21 million. Certain of our debt agreements contain restrictions on the usage of funds received from the sale of assets. These restrictions generally require such cash to be used for either repayment of indebtedness, capital expenditures, or other investments in the business. Restricted cash at October 31, 2014 primarily consists of the remaining proceeds of $16 million from the sale of the Mervin and Hawk businesses in the first quarter of 2014, which is subject to these restrictions and, consequently, reflected as a long-term asset. The Company expects to utilize the remaining proceeds from the sale of the Mervin and Hawk businesses in fiscal 2015. |
Allowance_for_Doubtful_Account
Allowance for Doubtful Accounts | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Receivables [Abstract] | |||||||||||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | ||||||||||||
The allowance for doubtful accounts, which includes bad debts as well as sales returns and allowances, consisted of the following as of the dates indicated: | |||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||
Balance, beginning of year | $ | 60,912 | $ | 57,563 | $ | 61,341 | |||||||
Provision for doubtful accounts | 21,856 | 5,729 | 4,030 | ||||||||||
Deductions | (18,777 | ) | (2,380 | ) | (7,808 | ) | |||||||
Balance, end of year | $ | 63,991 | $ | 60,912 | $ | 57,563 | |||||||
The provision for doubtful accounts represents charges to SG&A for estimated bad debts, whereas the provision for sales returns and allowances is reported as a reduction of revenues. In certain jurisdictions, the Company is precluded from writing off uncollectable invoices against our allowance for doubtful accounts until our wholesale customer has completed certain administrative processes. |
Inventories
Inventories | 12 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Inventories | ||||||||
Inventories consisted of the following as of the dates indicated: | |||||||||
October 31, | |||||||||
In thousands | 2014 | 2013 | |||||||
Raw materials | $ | 3,524 | $ | 4,725 | |||||
Work in process | 467 | 681 | |||||||
Finished goods | 274,789 | 332,309 | |||||||
Total | $ | 278,780 | $ | 337,715 | |||||
Fixed_Assets_net
Fixed Assets, net | 12 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Fixed Assets, net | Fixed Assets, net | ||||||||
Fixed assets consisted of the following as of the dates indicated: | |||||||||
October 31, | |||||||||
In thousands | 2014 | 2013 | |||||||
Furniture and other equipment | $ | 103,554 | $ | 128,409 | |||||
Leasehold improvements | 163,894 | 175,698 | |||||||
Computer software and equipment | 106,238 | 110,651 | |||||||
Land use rights | 37,409 | 39,678 | |||||||
Land and buildings | 10,626 | 11,482 | |||||||
Construction in progress | 12,935 | 14,203 | |||||||
Total fixed assets, gross | 434,656 | 480,121 | |||||||
Accumulated depreciation and amortization | (220,888 | ) | (248,860 | ) | |||||
Total fixed assets, net | $ | 213,768 | $ | 231,261 | |||||
During fiscal 2014, 2013 and 2012, the Company recorded approximately $49 million, $47 million, and $49 million, respectively, in depreciation expense and approximately $11 million, $12 million, and $7 million, respectively, in fixed asset impairments, primarily related to under-performing retail stores. These stores were generating negative cash flows and were not expected to become profitable in the future. As a result, the Company has already closed certain of these stores and is working to close the remaining under-performing stores as soon as practicable. Any charges associated with future rent commitments, net of expected sublease income, will be charged to future earnings upon store closure. |
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 12 Months Ended | ||||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Intangible Assets and Goodwill | Intangible Assets and Goodwill | ||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||
Intangible assets consisted of the following as of the dates indicated: | |||||||||||||||||||||||||
October 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
In thousands | Gross | Amortization | Net Book | Gross | Amortization | Net Book | |||||||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||||||||
Non-amortizable trademarks | $ | 124,121 | $ | — | $ | 124,121 | $ | 124,099 | $ | — | $ | 124,099 | |||||||||||||
Amortizable trademarks | 21,858 | (12,508 | ) | 9,350 | 19,810 | (11,534 | ) | 8,276 | |||||||||||||||||
Amortizable licenses | 11,817 | (11,817 | ) | — | 12,749 | (12,749 | ) | — | |||||||||||||||||
Other amortizable intangibles | 8,406 | (6,367 | ) | 2,039 | 8,185 | (5,964 | ) | 2,221 | |||||||||||||||||
Total | $ | 166,202 | $ | (30,692 | ) | $ | 135,510 | $ | 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 and are amortized on a straight-line basis over their estimated useful lives of 5 to 18 years. Certain trademarks and licenses will continue to be amortized using estimated useful lives of 10 to 25 years with no residual values. Intangible amortization expense was approximately $2 million in fiscal 2014, $2 million for fiscal 2013 and $3 million for fiscal 2012 and is charged to SG&A. Based on the Company’s amortizable intangible assets as of October 31, 2014, annual amortization expense is estimated to be approximately $2 million in fiscal 2015 and fiscal 2016 and $1 million in fiscal 2017 through fiscal 2019. | |||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
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 | $ | 76,048 | $ | 186,334 | $ | 135,752 | $ | 398,134 | |||||||||||||||||
Accumulated impairment losses | — | — | (129,545 | ) | (129,545 | ) | |||||||||||||||||||
Net goodwill at October 31, 2011 | $ | 76,048 | $ | 186,334 | $ | 6,207 | $ | 268,589 | |||||||||||||||||
Acquisitions | — | 174 | — | 174 | |||||||||||||||||||||
Foreign currency translation and other | (74 | ) | (11,639 | ) | — | (11,713 | ) | ||||||||||||||||||
Gross goodwill | 75,974 | 174,869 | 135,752 | 386,595 | |||||||||||||||||||||
Accumulated impairment losses | — | — | (129,545 | ) | (129,545 | ) | |||||||||||||||||||
Net goodwill at October 31, 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 October 31, 2013 | $ | 74,943 | $ | 180,475 | $ | 6,207 | $ | 261,625 | |||||||||||||||||
Impairments | — | (178,197 | ) | (178,197 | ) | ||||||||||||||||||||
Foreign currency translation and other | (528 | ) | (2,278 | ) | — | (2,806 | ) | ||||||||||||||||||
Gross goodwill | 74,415 | 178,197 | 135,752 | 388,364 | |||||||||||||||||||||
Accumulated impairment losses | — | (178,197 | ) | (129,545 | ) | (307,742 | ) | ||||||||||||||||||
Net goodwill at October 31, 2014 | $ | 74,415 | $ | — | $ | 6,207 | $ | 80,622 | |||||||||||||||||
The Company performs its annual goodwill impairment test during the fourth fiscal quarter. As of October 31, 2014, the fair value of each of its reporting units substantially exceeded their respective carrying values. However, certain factors may result in the need to perform an impairment test prior to the fourth fiscal quarter, including significant under-performance of the Company’s business relative to expected operating results, significant adverse economic and industry trends, a significant decline in the Company’s market capitalization for an extended period of time relative to net book value, or a decision to divest an individual business within a reporting unit. | |||||||||||||||||||||||||
Based upon the Company’s assessment of these factors in connection with the preparation of the Company’s condensed consolidated financial statements for the second quarter of fiscal 2014, given the sales decline in the Company’s EMEA reporting unit for the six months ended April 30, 2014, the Company performed an interim impairment test for the EMEA reporting unit using a discounted cash flow analysis and evaluated whether any adverse economic or industry trends would negatively affect the conclusions drawn from the prior period annual impairment test. The results of the Company’s interim impairment evaluation indicated that the fair value of the EMEA reporting unit exceeded its carrying value by 9%. As a result, the Company concluded that the EMEA reporting unit’s goodwill was not impaired based on the interim impairment evaluation. | |||||||||||||||||||||||||
During the third quarter of fiscal 2014, the Company performed an additional interim impairment test for the EMEA reporting unit due to the significant decline in the Company's stock price and further net revenue deterioration in the EMEA wholesale channel. The results of this impairment evaluation resulted in a non-cash charge of $178 million to fully impair goodwill associated with the EMEA reporting unit. |
Debt
Debt | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
Debt Disclosure [Abstract] | |||||||||||
Debt | Debt | ||||||||||
A summary of borrowings under lines of credit and long-term debt as of the dates indicated is as follows: | |||||||||||
October 31, | |||||||||||
In thousands | Maturity | 2014 | 2013 | ||||||||
Lines of credit - 0.8% Floating | 31-Oct-16 | $ | 32,929 | $ | — | ||||||
EMEA credit facilities | — | 21,594 | |||||||||
2017 Notes - 8.875% Fixed | 15-Dec-17 | 252,188 | 274,952 | ||||||||
ABL Credit Facility - 2.1% to 5.6% Floating | 24-May-18 | 35,933 | 27,408 | ||||||||
2018 Notes - 7.875% Fixed | 1-Aug-18 | 278,834 | 278,612 | ||||||||
2020 Notes - 10.000% Fixed | 1-Aug-20 | 222,582 | 222,285 | ||||||||
Capital lease obligations and other borrowings - Various % | Various | 6,124 | 6,449 | ||||||||
Total debt | 828,590 | 831,300 | |||||||||
Less current portion | (35,361 | ) | (23,488 | ) | |||||||
Long-term debt, net of current portion | $ | 793,229 | $ | 807,812 | |||||||
As of October 31, 2014, the Company’s credit facilities allowed for total cash borrowings and letters of credit of $187 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 October 31, 2014, the Company had a total of $69 million of direct borrowings and $24 million in letters of credit outstanding. The effective availability for borrowings remaining as of October 31, 2014 was $74 million, $59 million of which could also be used for letters of credit in the United States and APAC. In addition to the $74 million of availability for borrowings, the Company also had $21 million in additional capacity for letters of credit in EMEA as of October 31, 2014. | |||||||||||
A description of each of the Company’s major credit arrangements in the table above follows: | |||||||||||
EMEA lines of credit | |||||||||||
On October 31, 2013, certain European subsidiaries of the Company entered into a line of credit facility with a commercial bank. The facility has an initial term of three years and borrowings are limited to €60 million. Borrowing availability under this facility is based on eligible EMEA trade accounts receivable. The facility does not contain any financial covenants. | |||||||||||
The Company also maintains various credit facilities with several banks in Europe. These facilities are all unsecured, short-term facilities used to support day-to-day working capital needs of the EMEA segment. At October 31, 2014, there were no direct borrowings outstanding and $5 million in letters of credit outstanding under these credit facilities. | |||||||||||
2017 Notes | |||||||||||
In December 2010, Boardriders S.A., the Company’s wholly-owned subsidiary, issued €200 million aggregate principal amount of its senior notes, which bear a coupon interest rate of 8.875% and are due December 15, 2017 (the “2017 Notes”). For the year following December 15, 2014, the 2017 Notes can be redeemed at 104.4%. The 2017 Notes were issued at par value in a private offering that was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The 2017 Notes were offered within the United States only to qualified institutional buyers in accordance with Rule 144A under the Securities Act and outside the United States only to non-U.S. investors in accordance with Regulation S under the Securities Act. The 2017 Notes will not be registered under the Securities Act or the securities laws of any other jurisdiction. | |||||||||||
The 2017 Notes are general senior obligations and are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by Quiksilver, Inc. and certain of its current and future U.S. and non-U.S. subsidiaries, subject to certain exceptions. These subsidiary guarantors include entities with ownership of the Company's Quiksilver, Roxy, and DC trademarks worldwide. | |||||||||||
The Company may redeem some or all of the 2017 Notes at fixed redemption prices as set forth in the indenture related to such 2017 Notes. The 2017 Notes indenture includes covenants that limit the Company’s ability to, among other things: incur additional debt; pay dividends on its capital stock or repurchase its capital stock; make certain investments; enter into certain types of transactions with affiliates; impose limitations on the ability of its restricted subsidiaries to pay dividends or make other payments to Quiksilver, Inc.; use assets as security in other transactions; and sell certain assets or merge with or into other companies. As of October 31, 2014, the Company was in compliance with these covenants. | |||||||||||
The Company capitalized approximately $6 million of debt issuance costs associated with the issuance of the 2017 Notes, which are being amortized into interest expense over the seven-year term of the 2017 Notes. | |||||||||||
ABL Credit Facility | |||||||||||
On May 24, 2013, Quiksilver, Inc., as a guarantor, QS Wholesale, Inc., as lead borrower, and certain other U.S., Canadian, Australian and Japanese subsidiaries of Quiksilver, Inc., as borrowers (collectively, the “Borrower”) and/or as guarantors, entered into an amended and restated asset-based credit facility with Bank of America, N.A. and a syndicate of lenders, which amended and restated the existing asset-based credit facility for Quiksilver, Inc.’s Americas operations (the “ABL Credit Facility”). The ABL Credit Facility has a term of five years. On July 16, 2013, the Company entered into an amendment to the ABL Credit Facility to provide for certain mechanical changes required in connection with the issuance of the 2018 Notes and 2020 Notes. | |||||||||||
Under the ABL Credit Facility, borrowings are limited to the lesser of (i) $230 million in aggregate, with sublimits for specific subsidiaries (with an option to expand the aggregate commitments by up to an additional $125 million on certain conditions) and (ii) a borrowing base calculated upon designated percentages of eligible accounts receivable, eligible inventory and, in the case of U.S. and Canadian borrowers, certain eligible credit card receivables. The ABL Credit Facility includes a $145 million total sublimit for letters of credit, with smaller sublimits applicable to specific subsidiaries. The interest rate on borrowings under the ABL Credit Facility is determined, at the Borrower’s option, as either: (i) an adjusted London Inter-Bank Offer (“LIBO”) rate plus a spread of 1.75% to 2.25%; or (ii) a Base Rate (as defined for each of the U.S., Canadian, Australian and Japanese borrowers) plus a spread of 0.75% to 1.75%. The ABL Credit Facility is guaranteed by Quiksilver, Inc. and certain domestic, Canadian, Australian and Japanese subsidiaries, except that the Canadian, Australian and Japanese subsidiaries do not guarantee the obligations of the Company’s domestic loan parties. The obligations under the ABL Credit Facility are, subject to certain exceptions, generally secured by (i) a first priority security interest in the domestic, Canadian, Australian and Japanese borrowers’ inventory and accounts receivable, (ii) a security interest in substantially all of the Company’s other domestic, Canadian, Australian and Japanese borrowers’ personal property (which security interest is a second priority security interest in the case of the domestic loan parties) and (iii) a pledge of the shares of certain of our subsidiaries, except that the assets of our Canadian, Australian and Japanese subsidiaries do not secure the obligations of the domestic loan parties. | |||||||||||
The ABL Credit Facility contains customary default provisions and provides that, upon the occurrence of an event of default relating to the bankruptcy or insolvency of the Borrower or other subsidiaries, the unpaid balance of the principal and accrued interest under the ABL Credit Facility and all other obligations of the Borrower under the loan documents will become immediately due and payable without any action under the ABL Credit Facility. Upon the occurrence of any other event of default (which would include a default under other material indebtedness), the Agent may, by written notice, declare the unpaid balance of the principal and accrued interest under the ABL Credit Facility and all other obligations under the loan documents immediately due and payable without any further action. | |||||||||||
The ABL Credit Facility also includes certain representations and warranties and restrictive covenants usual for facilities and transactions of this type. The ABL Credit Facility does not have a financial maintenance covenant, other than a minimum fixed charge coverage ratio of 1.0 to 1.0 that would only apply if aggregate excess availability under the ABL Credit Facility is less than the greater of (a) $15 million and (b) 10% of the lesser of the borrowing base and the aggregate ABL Credit Facility commitments at such time; provided that, for such purposes Australian excess availability and Japanese excess availability shall not account for more than 40% of aggregate excess availability. The Borrower paid customary agency, arrangement and upfront fees in connection with the ABL Credit Facility | |||||||||||
2018 Notes and 2020 Notes | |||||||||||
On July 16, 2013, Quiksilver, Inc. and its wholly-owned subsidiary, QS Wholesale, Inc. issued (i) $280 million aggregate principal amount in 7.875% Senior Secured Notes due 2018 (the “2018 Notes”), and (ii) $225 million aggregate principal amount in 10.000% Senior Notes due 2020 (the “Original 2020 Notes”). These notes were issued in a private offering that was exempt from the registration requirements of the Securities 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, the Original 2020 Notes were exchanged for publicly registered notes with identical terms (the “2020 Notes”). | |||||||||||
The issuers received net proceeds from the offering of the 2018 Notes and the 2020 Notes of approximately $493 million after deducting initial purchaser discounts, but before offering expenses. The Company used a portion of the net proceeds to redeem their former 2015 Notes on August 15, 2013. The Company also used portions of the net proceeds to repay in full and terminate its former Americas term loan, to pay down a portion of the then outstanding amounts under the ABL Credit Facility and to pay related fees and expenses. As a result of the repayments of the former 2015 Notes and the Americas term loan, the Company recorded non-cash interest expense of approximately $3 million to write-off the deferred debt issuance cost related to such debt during the fiscal year ended October 31, 2013. The Company has approximately $9 million in unamortized debt issuance costs related to the 2018 Notes and 2020 Notes included in prepaid expenses and other assets as of October 31, 2014. | |||||||||||
The 2018 Notes will mature on August 1, 2018 and bear interest at the rate of 7.875% per annum. The offering price of the 2018 Notes was 99.483% of the principal amount. The 2018 Notes are general senior obligations of the issuers and are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by certain of the Company’s current and future U.S. subsidiaries. The 2018 Notes are secured by (1) a second-priority security interest in the current assets of the issuers and the subsidiary guarantors, together with all related general intangibles (excluding intellectual property rights) and other property related to such assets, including the proceeds thereof, which assets secure the Company’s ABL Credit Facility on a first-priority basis; and (2) a first-priority security interest in substantially all other property (including intellectual property rights, which primarily consist of the Company's Quiksilver and Roxy trademarks in the United States and Mexico, and the Company's DC trademarks worldwide) of the issuers and the guarantors and a first-priority pledge of 100% of the equity interests of certain subsidiaries directly owned by the issuers and the guarantors (but excluding equity interests of applicable foreign subsidiaries of the issuers and the guarantors possessing more than 65% of the total combined voting power of all classes of equity interests of such applicable foreign subsidiaries entitled to vote) and the proceeds of the foregoing. | |||||||||||
The 2020 Notes will mature on August 1, 2020 and bear interest at the rate of 10.000% per annum. The offering price of the 2020 Notes was 98.757% of the principal amount. The 2020 Notes are general senior obligations of the issuers and are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by certain of the Company’s current and future U.S. subsidiaries. The issuers and subsidiary guarantors include entities with ownership of the Company's Quiksilver and Roxy trademarks in the United States and Mexico, and the Company's DC trademarks worldwide. | |||||||||||
The Company may redeem some or all of the 2018 Notes and 2020 Notes at fixed redemption prices as set forth in the indenture related to such Notes. | |||||||||||
The 2018 Notes and 2020 Notes indentures include covenants that limit the Company’s ability to, among other things: incur additional debt; issue certain preferred shares; pay dividends on its capital stock or repurchase capital stock; make certain investments; enter into certain types of transactions with affiliates; impose limitations on the ability of its restricted subsidiaries to pay dividends or make certain other payments to the Company; use assets as security in other transactions; and sell certain assets or merge with or into other companies. As of October 31, 2014, the Company was in compliance with these covenants. | |||||||||||
Capital lease obligations and other borrowings | |||||||||||
The Company also had approximately $6 million in capital leases and other borrowings as of October 31, 2014. | |||||||||||
During the second quarter of fiscal 2014, the Company paid approximately $15 million of other borrowings to the former minority interest owners of the Company's Brazil subsidiary, related to the Company's acquisition of the remaining minority interest in this subsidiary in November 2013. | |||||||||||
Principal payments on all long-term debt obligations as of the date indicated, including capital leases, are due by fiscal year according to the table below. | |||||||||||
In thousands | 31-Oct-14 | ||||||||||
2015 | $ | 2,432 | |||||||||
2016 | 1,655 | ||||||||||
2017 | 1,508 | ||||||||||
2018 | 567,484 | ||||||||||
2019 | — | ||||||||||
Thereafter | 222,582 | ||||||||||
Total | $ | 795,661 | |||||||||
The estimated fair value of the Company’s debt as of October 31, 2014 was $688 million, compared to a carrying value of $829 million. The fair value of the Company’s debt is calculated based on the market price of the Company’s publicly traded 2020 Notes, the trading price of the Company’s 2018 Notes and 2017 Notes, (all Level 1 fair value inputs), and the carrying values of the Company’s other debt obligations due to the variable rate nature of those debt obligations. |
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Liabilities | Accrued Liabilities | ||||||||
Accrued liabilities consisted of the following as of the dates indicated: | |||||||||
October 31, | |||||||||
In thousands | 2014 | 2013 | |||||||
Accrued employee compensation and benefits | $ | 40,461 | $ | 41,229 | |||||
Accrued sales and payroll taxes | 19,471 | 14,738 | |||||||
Accrued interest | 19,673 | 22,289 | |||||||
Other liabilities(1) | 33,096 | 43,289 | |||||||
Total | $ | 112,701 | $ | 121,545 | |||||
(1) Other liabilities consists of various accrued expenses with no individual item accounting for more than 5% of total accrued liabilities. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Oct. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | Commitments and Contingencies | ||||
Operating Leases | |||||
The Company leases certain land and buildings under long-term operating lease agreements. The following is a schedule of future minimum lease payments by fiscal year required under such leases as of the date indicated: | |||||
In thousands | 31-Oct-14 | ||||
2015 | $ | 87,883 | |||
2016 | 72,893 | ||||
2017 | 57,355 | ||||
2018 | 45,991 | ||||
2019 | 36,934 | ||||
Thereafter | 95,954 | ||||
Total | $ | 397,010 | |||
Total rent expense was approximately $119 million, $123 million and $134 million, in fiscal 2014, 2013 and 2012, respectively, and was charged to SG&A. | |||||
Professional Athlete Sponsorships | |||||
The Company establishes relationships with professional athletes in order to promote its products and brands. The Company has entered into endorsement agreements with professional athletes in sports such as surfing, skateboarding, snowboarding, BMX and motocross. Many of these contracts provide incentives for magazine exposure and competitive victories while wearing or using the Company’s products. Such expenses are an ordinary part of the Company’s operations and are expensed to SG&A as incurred. The following is a schedule of future estimated minimum payments required under such endorsement agreements as of the date indicated: | |||||
In thousands | 31-Oct-14 | ||||
2015 | $ | 18,957 | |||
2016 | 11,917 | ||||
2017 | 8,322 | ||||
2018 | 3,377 | ||||
2019 | 319 | ||||
Thereafter | 110 | ||||
Total | $ | 43,002 | |||
Litigation | |||||
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 currently threatened or pending will not have a material adverse effect on its financial condition, results of operations or liquidity. | |||||
Indemnities and Guarantees | |||||
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 Company 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. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity | |||||||||||||||||||||
In March 2013, the Company’s stockholders approved the Company’s 2013 Performance Incentive Plan (the “2013 Plan”), which generally replaced the Company’s 2000 Stock Incentive Plan (the “2000 Plan”). Under the 2013 Plan, 7,224,657 shares are reserved for issuance over its term, consisting of 2,764,657 shares previously authorized under the 2000 Plan, and not subject to outstanding awards under such plan, plus an additional 4,460,000 shares. In March 2014, the Company’s stockholders approved an amendment to the 2013 Plan increasing the number of shares of common stock reserved for issuance under the 2013 Plan by 5,500,000 shares. At the time the 2013 Plan was approved, there were 20,080,029 shares subject to outstanding awards under the 2000 Plan. These shares remain reserved for issuance pursuant to their original terms and, if they expire, are canceled, or otherwise terminate, will also be available for issuance under the 2013 Plan. No additional awards may be granted under the 2000 Plan. Under the 2013 Plan, stock options may be granted to officers and employees selected by the plan’s administrative committee at an exercise price not less than the fair market value of the underlying shares on the date of grant. Options vest over a period of time, generally three years, as designated by the committee and are subject to such other terms and conditions as the committee determines. The Company issues new shares for stock option exercises and restricted stock grants. | ||||||||||||||||||||||
For non-performance based options, the Company uses the Black-Scholes option-pricing model to value stock-based 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. The fair value of each option grant was estimated as of the grant date using the Black-Scholes option-pricing model for each of fiscal 2014, 2013 and 2012, assuming risk-free interest rates of 2.2%, 1.7%, and 1.1%, respectively; volatility of 80.7%, 78.3%, and 76.5%, respectively; zero dividend yield; and expected lives of 6.7 years, 7.1 years, and 7.1 years, respectively. The weighted average fair value of options granted was $5.82, $4.81, and $2.58 for fiscal 2014, 2013, and 2012, respectively. The Company records stock-based compensation expense using the graded vested method over the vesting period, which is generally three years. As of October 31, 2014, the Company had approximately $2 million of unrecognized compensation expense, for non-performance based options, expected to be recognized over a weighted average period of approximately 1.8 years. Compensation expense was included in SG&A for fiscal 2014, 2013 and 2012. | ||||||||||||||||||||||
Changes in shares under option, excluding performance based options, are summarized as follows: | ||||||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
In thousands | Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||
Outstanding, beginning of year | 8,829,618 | $ | 4.83 | 12,325,499 | $ | 4.49 | 13,399,381 | $ | 4.4 | |||||||||||||
Granted | 275,000 | 8.05 | 1,045,000 | 6.68 | 375,000 | 3.66 | ||||||||||||||||
Exercised | (1,058,416 | ) | 4.27 | (2,985,792 | ) | 2.94 | (506,329 | ) | 2.23 | |||||||||||||
Canceled/Forfeited | (1,228,593 | ) | 7.67 | (1,555,089 | ) | 7.02 | (942,553 | ) | 4.08 | |||||||||||||
Outstanding, end of year | 6,817,609 | 4.52 | 8,829,618 | 4.83 | 12,325,499 | 4.49 | ||||||||||||||||
Exercisable, end of year | 5,696,273 | 4.24 | 6,044,792 | 4.72 | 7,903,327 | 4.94 | ||||||||||||||||
The aggregate intrinsic value of options exercised during the year ended October 31, 2014 was $4 million. The aggregate intrinsic value of options outstanding and exercisable as of October 31, 2014 is $18 million. The weighted average life of options outstanding and exercisable as of October 31, 2014 is 5.0 years and 4.5 years, respectively. | ||||||||||||||||||||||
Outstanding stock options, excluding performance based options, at October 31, 2014 consist of the following: | ||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||
Range of Exercise Prices | Shares | Weighted | Weighted | Shares | Weighted | |||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Remaining | Exercise | Exercise | ||||||||||||||||||||
Life (Years) | Price | Price | ||||||||||||||||||||
$1.04 - $2.34 | 1,731,417 | 4.6 | $ | 2.08 | 1,731,417 | $ | 2.08 | |||||||||||||||
$2.35 - $4.60 | 1,631,750 | 5.2 | 3.24 | 1,565,082 | 3.25 | |||||||||||||||||
$4.61 - $6.64 | 2,379,942 | 4.8 | 5.35 | 1,758,608 | 5.32 | |||||||||||||||||
$6.65 - $8.70 | 725,000 | 8 | 7.31 | 291,666 | 7.57 | |||||||||||||||||
$8.71 - $10.75 | 206,500 | 3.1 | 9.03 | 206,500 | 9.03 | |||||||||||||||||
$10.76 - $16.36 | 143,000 | 1.1 | 14.49 | 143,000 | 14.49 | |||||||||||||||||
Total | 6,817,609 | 5 | $ | 4.52 | 5,696,273 | $ | 4.24 | |||||||||||||||
Changes in non-vested shares under option, excluding performance based options, for the year ended October 31, 2014 were as follows: | ||||||||||||||||||||||
Shares | Weighted Average | |||||||||||||||||||||
Grant Date | ||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||
Non-vested, beginning of year | 2,784,826 | $ | 2.95 | |||||||||||||||||||
Granted | 275,000 | 5.82 | ||||||||||||||||||||
Vested | (1,733,490 | ) | 2.37 | |||||||||||||||||||
Canceled | (205,000 | ) | 4.75 | |||||||||||||||||||
Non-vested, end of year | 1,121,336 | $ | 4.18 | |||||||||||||||||||
Of the 1.1 million non-vested shares under option as of October 31, 2014, all are expected to vest over their respective lives. | ||||||||||||||||||||||
As of October 31, 2014, there were 11,542,572 shares of common stock that were available for future grant. Of these shares, 9,658,829 were available for issuance of restricted stock. | ||||||||||||||||||||||
The Company grants performance based options and performance based restricted stock units 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 or performance goals. 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. | ||||||||||||||||||||||
The assumptions used in the Monte-Carlo simulation for the 2014 restricted stock units included a risk free interest rate of 0.6%, volatility of 57.7%, and zero dividend yield. The weighted average fair value of all restricted stock units granted during 2014 was $5.16. The assumptions used for the 2013 restricted stock units included a risk-free interest rate ranging from 0.5% to 0.8%, volatility of 56.4% to 88.6%, and a zero dividend yield. The weighted average fair value of all restricted stock units granted during 2013 was $4.21. | ||||||||||||||||||||||
Activity related to performance based options and performance based restricted stock units for the fiscal year ended October 31, 2014 is as follows: | ||||||||||||||||||||||
Performance | Performance | |||||||||||||||||||||
Options | Restricted | |||||||||||||||||||||
Stock Units | ||||||||||||||||||||||
Non-vested, October 31, 2013 | 688,000 | 11,675,782 | ||||||||||||||||||||
Granted | — | 300,000 | ||||||||||||||||||||
Exercised | (12,000 | ) | — | |||||||||||||||||||
Canceled | (36,000 | ) | (1,757,274 | ) | ||||||||||||||||||
Non-vested, October 31, 2014 | 640,000 | 10,218,508 | ||||||||||||||||||||
As of October 31, 2014, the Company had approximately $0.4 million and $0.4 million of unrecognized compensation expense, net of estimated forfeitures, related to the performance options and the performance restricted stock units, respectively. This unrecognized compensation expense is expected to be recognized over a weighted average period of approximately 1.4 years and 0.3 years, respectively. | ||||||||||||||||||||||
The Company may also grant restricted stock and restricted stock units under its 2013 Plan. Prior to March 2013, the Company issued restricted stock and restricted stock units under its 2000 Plan. Restricted stock issued under both plans generally vests in three years, while restricted stock units generally vest upon the Company’s achievement of a specified common stock price threshold. | ||||||||||||||||||||||
Changes in restricted stock are as follows: | ||||||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Outstanding restricted stock, beginning of year | 195,000 | 801,667 | 1,911,669 | |||||||||||||||||||
Granted | 105,000 | 105,000 | 105,000 | |||||||||||||||||||
Vested | (95,000 | ) | (685,000 | ) | (1,155,002 | ) | ||||||||||||||||
Forfeited | (30,000 | ) | (26,667 | ) | (60,000 | ) | ||||||||||||||||
Outstanding restricted stock, end of year | 175,000 | 195,000 | 801,667 | |||||||||||||||||||
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 will adjust the amortization period as appropriate. As of October 31, 2014, there had been no acceleration of the amortization period. As of October 31, 2014, the Company had approximately $0.5 million of unrecognized compensation expense expected to be recognized over a weighted average period of approximately 1.4 years. | ||||||||||||||||||||||
The Company began the Quiksilver Employee Stock Purchase Plan (the “ESPP”) in fiscal 2001, which provides a method for employees of the Company to purchase common stock at a 15% discount from fair market value as of the beginning or end of each purchasing period of six months, whichever is lower. The ESPP covers substantially all full-time domestic and Australian employees. Since the adoption of guidance within ASC 718, “Stock Compensation,” compensation expense has been recognized for shares issued under the ESPP. During fiscal 2014, 2013 and 2012, 332,812, 448,896, and 461,088 shares of stock, respectively, were issued under the plan with proceeds to the Company of approximately $1 million per year. | ||||||||||||||||||||||
During fiscal 2014, 2013 and 2012, the Company recognized total compensation expense related to options, restricted stock, performance based options, performance based restricted stock units and ESPP shares of approximately $17 million, $22 million, and $23 million, respectively. | ||||||||||||||||||||||
In addition to the equity instruments noted above, certain affiliates of Rhône Capital LLC hold common stock warrants that entitle such affiliates to purchase approximately 25.7 million shares of the Company’s common stock at an exercise price of $1.86 per share. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Accumulated Other Comprehensive Income | 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 | ||||||||||
Instruments | Currency | ||||||||||||
Adjustments | |||||||||||||
Balance, October 31, 2011 | $ | (8,103 | ) | $ | 124,230 | $ | 116,127 | ||||||
Net gains reclassified to Cost of Goods Sold ("COGS") | (365 | ) | — | (365 | ) | ||||||||
Net losses reclassified to foreign currency gain | 929 | — | 929 | ||||||||||
Changes in fair value, net of tax | 13,295 | (43,574 | ) | (30,279 | ) | ||||||||
Balance, October 31, 2012 | $ | 5,756 | $ | 80,656 | $ | 86,412 | |||||||
Net gains reclassified to COGS | (8,137 | ) | — | (8,137 | ) | ||||||||
Net gains reclassified to foreign currency loss | (343 | ) | — | (343 | ) | ||||||||
Changes in fair value, net of tax | (1,867 | ) | (2,147 | ) | (4,014 | ) | |||||||
Balance, October 31, 2013 | $ | (4,591 | ) | $ | 78,509 | $ | 73,918 | ||||||
Net gains reclassified to COGS | (597 | ) | — | (597 | ) | ||||||||
Changes in fair value, net of tax | 9,281 | (25,304 | ) | (16,023 | ) | ||||||||
Balance, October 31, 2014 | $ | 4,093 | $ | 53,205 | $ | 57,298 | |||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
A summary of the (benefit)/provision for income taxes from continuing operations is as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
United States: | |||||||||||||
Federal | $ | (14,320 | ) | $ | (1,921 | ) | $ | (2,322 | ) | ||||
State | (2,676 | ) | (60 | ) | (105 | ) | |||||||
Foreign | 18,783 | 13,719 | 15,574 | ||||||||||
1,787 | 11,738 | 13,147 | |||||||||||
Deferred: | |||||||||||||
United States: | |||||||||||||
Federal | $ | 134 | $ | (1,490 | ) | $ | 152 | ||||||
State | 34 | (259 | ) | 322 | |||||||||
Foreign | (6,280 | ) | 156,231 | (9,717 | ) | ||||||||
(6,112 | ) | 154,482 | (9,243 | ) | |||||||||
(Benefit)/provision for income taxes | $ | (4,325 | ) | $ | 166,220 | $ | 3,904 | ||||||
A reconciliation of the effective income tax rate to a computed “expected” statutory federal income tax rate is as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Computed “expected” statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal income tax benefit | 0.8 | % | 0.1 | % | 0.8 | % | |||||||
Foreign tax rate differential | (0.8 | )% | (9.2 | )% | (11.2 | )% | |||||||
Goodwill impairment | (18.7 | )% | — | % | — | % | |||||||
Stock-based compensation | (0.3 | )% | (2.2 | )% | (24.9 | )% | |||||||
Uncertain tax positions | (0.2 | )% | 1.2 | % | 12.5 | % | |||||||
Valuation allowance | (13.6 | )% | (250.8 | )% | (88.0 | )% | |||||||
Foreign tax exempt income | — | % | — | % | 36.8 | % | |||||||
Other | (0.9 | )% | (1.2 | )% | 9.7 | % | |||||||
Effective income tax rate | 1.3 | % | (227.1 | )% | (29.3 | )% | |||||||
The components of net deferred income tax assets/(liabilities) are as follows: | |||||||||||||
October 31, | |||||||||||||
In thousands | 2014 | 2013 | |||||||||||
Deferred income tax assets: | |||||||||||||
Allowance for doubtful accounts | $ | 6,748 | $ | 8,082 | |||||||||
Unrealized gains and losses | 9,351 | 15,342 | |||||||||||
Tax loss carry forwards | 419,584 | 385,375 | |||||||||||
Accruals and other | 80,028 | 82,768 | |||||||||||
Subtotal of deferred income tax assets | 515,711 | 491,567 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation and amortization | (8,411 | ) | (15,155 | ) | |||||||||
Intangibles | (26,766 | ) | (27,244 | ) | |||||||||
Subtotal of deferred income tax liabilities | (35,177 | ) | (42,399 | ) | |||||||||
Deferred income tax assets, net | 480,534 | 449,168 | |||||||||||
Valuation allowance | (495,938 | ) | (459,068 | ) | |||||||||
Net deferred income tax liabilities | $ | (15,404 | ) | $ | (9,900 | ) | |||||||
Income(loss) before provision/(benefit) for income taxes from continuing operations includes ($151) million, ($5) million, and $32 million of (loss)/income from foreign jurisdictions for the fiscal years ended October 31, 2014, 2013 and 2012, respectively. The Company's sale of the Mervin and Hawk businesses generated income tax of approximately $19 million within discontinued operations during fiscal 2014. However, as the Company does not expect to pay income tax on these sales after application of available loss carry-forwards, an offsetting income tax benefit was recognized within continuing operations. Before this tax benefit, the Company generated income tax expense of $12 million in fiscal 2014 due to being unable to record tax benefits against the losses in certain jurisdictions where we have previously recorded valuation allowances. The Company does not provide for the U.S. federal, state or additional foreign income tax effects on certain foreign earnings that management intends to permanently reinvest. Determination of the amount of any unrecognized deferred income tax liability on this temporary difference is not practicable. | |||||||||||||
As of October 31, 2014, the Company has federal net operating loss carry forwards of approximately $330 million and state net operating loss carry forwards of approximately $391 million, which will expire on various dates through 2034. The company has recorded a valuation allowance against the entire amount of these tax loss carry forwards. In addition, the Company has foreign tax loss carry forwards of approximately $923 million as of October 31, 2014. Approximately $870 million will be carried forward until fully utilized, with the remaining $53 million expiring on various dates through 2034. The Company has recorded a valuation allowance against $884 million of the foreign tax loss carry forwards. | |||||||||||||
Each reporting period, the Company evaluates the realizability of all of its deferred tax assets in each tax jurisdiction. In the fiscal year ended October 31, 2013, the Company concluded that based on all available information and proper weighting of objective and subjective evidence, including a cumulative loss that had been sustained over a three-year period, it is more likely than not that its deferred tax assets primarily in the EMEA segment will not be realized and a full valuation allowance of $157 million was established. Due to sustained tax losses, the Company maintains a previously recorded valuation allowance against its net deferred tax assets in certain jurisdictions in the Americas, APAC, and Corporate Operations segments. | |||||||||||||
The following table summarizes the activity related to the Company’s unrecognized tax benefits (excluding interest and penalties and related tax carry forwards): | |||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | |||||||||||
Balance, beginning of year | $ | 11,002 | $ | 10,787 | |||||||||
Gross increases related to current year tax positions | 1,352 | 1,255 | |||||||||||
Gross increases related to prior period tax positions | 645 | — | |||||||||||
Lapse in statute of limitation | (437 | ) | (866 | ) | |||||||||
Foreign exchange and other | (71 | ) | (174 | ) | |||||||||
Balance, end of year | $ | 12,491 | $ | 11,002 | |||||||||
If the Company’s positions are sustained by the relevant taxing authority, approximately $11 million (excluding interest and penalties) of uncertain tax position liabilities as of October 31, 2014 would favorably impact the Company’s effective tax rate in future periods. | |||||||||||||
The Company includes interest and penalties related to unrecognized tax benefits in its provision for income taxes in the accompanying consolidated statements of operations, which is included in current tax expense in the summary of income tax provision table shown above. As of October 31, 2014, the Company had recognized a liability for interest and penalties of $7 million. | |||||||||||||
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 related to intercompany transactions between foreign affiliates and certain foreign withholding tax exposures. Conclusion of these matters could result in settlement for different amounts than the Company has accrued as uncertain tax benefits. If a position that the Company concluded was more likely than not is subsequently reversed, the Company would need to accrue and ultimately pay an additional amount. Conversely, the Company could settle positions with the tax authorities for amounts lower than have been accrued or extinguish a position through payment. 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 $10 million to an increase of the liability of $4 million, excluding penalties and interest for its existing tax positions. There were no settlements in fiscal 2014 or 2013. | |||||||||||||
The Company conducts business globally and files income tax returns in the United States and its significant foreign tax jurisdictions, including France, Australia, and Canada. The Company is subject to examination in the United States for fiscal 2011 and thereafter, in France for fiscal 2010 and thereafter, in Australia for fiscal 2010 and thereafter, and in Canada for fiscal 2011 and thereafter. Certain subsidiaries currently are under tax audit in France for years ranging from fiscal 2010 through fiscal 2013. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Oct. 31, 2014 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans |
The Company maintains the Quiksilver 401(k) Employee Savings Plan and Trust (the “401(k) Plan”). This plan is generally available to all U.S. employees with six months of service and is funded by employee contributions and periodic discretionary contributions from the Company, which are approved by the Company’s Board of Directors. The Company did not make any contributions to the 401(k) Plan in fiscal 2014, 2013, and 2012. | |
Employees of the Company’s French subsidiary, Na Pali SAS, with three months of service are covered under the French Profit Sharing Plan (the “French Profit Sharing Plan”), which is mandated by law. | |
Compensation is earned under the French Profit Sharing Plan based on statutory computations with an additional discretionary component. Funds are maintained by the Company and become fully vested with the employees after five years, although earlier disbursement is optional if certain personal events occur or upon the termination of employment. Compensation expense of $0.3 million, $0.5 million, and $0.4 million was recognized related to the French Profit Sharing Plan for the fiscal years ended October 31, 2014, 2013 and 2012, respectively. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||
Derivative Financial Instruments | 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 October 31, 2014, the Company was hedging a portion of forecasted transactions expected to occur through October 2015. Assuming October 31, 2014 exchange rates remain constant, $4 million of gains, net of tax, related to hedges of these transactions are expected to be reclassified into earnings over the next 12 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 net gains/(losses) of $1 million, $8 million and ($1) million for the fiscal year ended October 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
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 October 31, 2014, the Company had the following outstanding derivative contracts that were entered into to hedge forecasted purchases: | |||||||||||||||||
In thousands | Commodity | Notional | Maturity | Fair Value | |||||||||||||
Amount | |||||||||||||||||
United States dollar | Inventory | $ | 243,904 | Nov 2014 – Oct 2015 | $ | 16,681 | |||||||||||
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 consolidated balance sheet as of the dates indicated: | |||||||||||||||||
Fair Value Measurements Using | Assets (Liabilities) | ||||||||||||||||
In thousands | Level 1 | Level 2 | Level 3 | at Fair Value | |||||||||||||
October 31, 2014: | |||||||||||||||||
Derivative assets: | |||||||||||||||||
Other receivables | $ | — | $ | 16,683 | $ | — | $ | 16,683 | |||||||||
Derivative liabilities: | |||||||||||||||||
Accrued liabilities | — | (2 | ) | — | (2 | ) | |||||||||||
Total fair value | $ | — | $ | 16,681 | $ | — | $ | 16,681 | |||||||||
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 | ) | |||||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) | ||||||||||||||||
A summary of quarterly financial data (unaudited) is as follows: | |||||||||||||||||
Year Ended October 31, 2014 | |||||||||||||||||
Quarter Ended | |||||||||||||||||
In thousands, except per share amounts | January 31 | April 30 | July 31 | October 31 | |||||||||||||
Revenues, net | $ | 392,612 | $ | 397,121 | $ | 380,016 | $ | 400,650 | |||||||||
Gross profit | 199,836 | 194,354 | 181,700 | 186,951 | |||||||||||||
(Loss)/income from continuing operations attributable to Quiksilver, Inc.(1) | (22,333 | ) | (37,817 | ) | (217,802 | ) | (49,482 | ) | |||||||||
Income/(loss) from discontinued operations attributable to Quiksilver, Inc.(2) | 37,720 | (15,245 | ) | (2,282 | ) | (2,136 | ) | ||||||||||
Net income/(loss) attributable to Quiksilver, Inc.(1) | 15,387 | (53,062 | ) | (220,084 | ) | (51,618 | ) | ||||||||||
(Loss)/income per share from continuing operations attributable to Quiksilver, Inc., assuming dilution | (0.13 | ) | (0.22 | ) | (1.28 | ) | (0.29 | ) | |||||||||
Income/(loss) per share from discontinued operations attributable to Quiksilver, Inc., assuming dilution | 0.22 | (0.09 | ) | (0.01 | ) | (0.01 | ) | ||||||||||
Net income/(loss) per share attributable to Quiksilver, Inc., assuming dilution | 0.09 | (0.31 | ) | (1.29 | ) | (0.30 | ) | ||||||||||
Trade accounts receivable, net | 338,723 | 351,530 | 317,658 | 319,840 | |||||||||||||
Inventories, net | 360,146 | 304,539 | 330,959 | 278,780 | |||||||||||||
Year Ended October 31, 2013 | |||||||||||||||||
Quarter Ended | |||||||||||||||||
In thousands, except per share amounts | January 31 | April 30 | July 31 | October 31 | |||||||||||||
Revenues, net | $ | 412,189 | $ | 447,304 | $ | 475,164 | $ | 475,913 | |||||||||
Gross profit | 209,773 | 205,454 | 233,532 | 223,672 | |||||||||||||
(Loss)/income from continuing operations attributable to Quiksilver, Inc.(3) | (31,568 | ) | (32,474 | ) | 35 | (174,759 | ) | ||||||||||
Income/(loss) from discontinued operations attributable to Quiksilver, Inc.(2) | 439 | 79 | 2,036 | 3,647 | |||||||||||||
Net (loss)/income attributable to Quiksilver, Inc.(3) | (31,129 | ) | (32,395 | ) | 2,071 | (171,112 | ) | ||||||||||
(Loss)/income per share from continuing operations attributable to Quiksilver, Inc., assuming dilution(3) | (0.19 | ) | (0.19 | ) | — | (1.04 | ) | ||||||||||
(Loss)/income per share from discontinued operations attributable to Quiksilver, Inc., assuming dilution | — | — | 0.01 | 0.02 | |||||||||||||
Net (loss)/income per share attributable to Quiksilver, Inc., assuming dilution(3) | (0.19 | ) | (0.19 | ) | 0.01 | (1.01 | ) | ||||||||||
Trade accounts receivable, net | 331,193 | 372,056 | 410,593 | 411,638 | |||||||||||||
Inventories, net | 403,883 | 345,766 | 379,684 | 337,715 | |||||||||||||
-1 | The fiscal quarter ended July 31, 2014 included goodwill impairment charge of $178 million for the EMEA segment. | ||||||||||||||||
-2 | The fiscal quarters ended April 30, 2014, July 31, 2014, and October 31, 2014 include impairment charges of $15 million, $4 million, and $2 million, respectively, related to the Surfdome business. | ||||||||||||||||
-3 | The fiscal quarter ended October 31, 2013 included income tax provision of $157 million for a full valuation allowance against deferred tax assets primarily in the EMEA segment. |
Restructuring_Charges
Restructuring Charges | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||
Restructuring Charges | Restructuring Charges | ||||||||||||
In connection with the globalization of its organizational structure and core processes, as well as its overall cost reduction efforts, the Company developed and approved a multi-year profit improvement plan in 2013 ("the 2013 Plan"). This 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 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 new 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 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, October 31, 2011 | $ | 1,076 | $ | 6,232 | $ | 7,308 | |||||||
Charged to expense | 9,721 | 3,881 | 13,602 | ||||||||||
Cash payments | (5,462 | ) | (3,257 | ) | (8,719 | ) | |||||||
Balance, October 31, 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 | 19,350 | 15,295 | 34,645 | ||||||||||
Cash payments | (19,999 | ) | (9,943 | ) | (29,942 | ) | |||||||
Balance, October 31, 2014 | $ | 11,510 | $ | 12,291 | $ | 23,801 | |||||||
Of the amounts charged to expense during fiscal 2014, approximately $25 million, $7 million, $1 million and $2 million were related to the Americas segment, EMEA segment, APAC segment and Corporate Operations segment, respectively. | |||||||||||||
In addition to the restructuring charges noted above, the Company also recorded approximately $4 million of additional inventory write downs within cost of goods sold and approximately $2 million of additional expenses within SG&A during fiscal 2013 related to certain non-core brands and peripheral product categories 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 fiscal 2013 which were unrelated to the 2013 Plan or the 2011 Plan. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
Discontinued Operations | Discontinued Operations | ||||||||||||
One of the elements of the Company’s strategy to improve profitability involves divesting or exiting certain non-core businesses. In November 2013, the Company completed the sale of Mervin Manufacturing, Inc., a manufacturer of snowboards and related products under the “Lib-Technologies” and “GNU” brands, (“Mervin”) for $58 million. In January 2014, the Company completed the sale of substantially all of the assets of Hawk Designs, Inc. ("Hawk") for $19 million. These transactions resulted in an after-tax gain of approximately $30 million during fiscal 2014, which is included in income from discontinued operations in the table below. In December 2014, the Company sold its majority stake in U.K.-based Surfdome Shop, Ltd., a multi-brand e-commerce retailer, (“Surfdome”) for net proceeds of approximately $16 million, which included payments from Surfdome for all outstanding loans and trade receivables. Accordingly, each of the Company’s Mervin, Hawk and Surfdome businesses were classified as “held for sale” as of October 31, 2014 and are presented as discontinued operations in the accompanying consolidated financial statements for all periods presented. The Company’s sale of the Mervin and Hawk businesses generated income tax expense of approximately $19 million during fiscal 2014. However, as the Company does not expect to pay income tax on these sales after application of available loss carry-forwards, an offsetting income tax benefit was recognized within continuing operations. The operations of Surfdome generated a tax benefit of $3 million. During fiscal 2014, the Company recorded non-cash impairment charges totaling $21 million in discontinued operations to write-down Surfdome goodwill, intangible assets and other long-term assets to their estimated fair market value. The operating results of discontinued operations were as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||
Revenues, net | $ | 60,605 | $ | 83,209 | $ | 71,390 | |||||||
Income before income taxes | 23,564 | 9,766 | 11,155 | ||||||||||
Provision for income taxes | 15,915 | 3,880 | 3,653 | ||||||||||
Income from discontinued operations | 7,649 | 5,886 | 7,502 | ||||||||||
Less: net loss/(income) attributable to non-controlling interest | 10,408 | 315 | (239 | ) | |||||||||
Income from discontinued operations attributable to Quiksilver, Inc. | $ | 18,057 | $ | 6,201 | $ | 7,263 | |||||||
The components of major assets and liabilities held for sale at October 31, 2014 and 2013 were as follows: | |||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | |||||||||||
Assets: | |||||||||||||
Receivables, net | $ | — | $ | 24,229 | |||||||||
Inventories, net | 19,659 | 25,915 | |||||||||||
Goodwill | — | 16,109 | |||||||||||
Other | 3,593 | 9,388 | |||||||||||
Total assets | $ | 23,252 | $ | 75,641 | |||||||||
Liabilities: | |||||||||||||
Accounts payable | $ | 12,520 | $ | 13,039 | |||||||||
Accrued liabilities | 120 | 3,381 | |||||||||||
Other | — | 1,719 | |||||||||||
Total liabilities | $ | 12,640 | $ | 18,139 | |||||||||
Total assets held for sale as of October 31, 2014 and 2013 by geographical segment were as follows: | |||||||||||||
October 31, | |||||||||||||
In thousands | 2014 | 2013 | |||||||||||
Americas | $ | 28 | $ | 27,398 | |||||||||
EMEA | 23,224 | 47,588 | |||||||||||
APAC | — | 655 | |||||||||||
Total assets | $ | 23,252 | $ | 75,641 | |||||||||
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 12 Months Ended | |||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||||||
Condensed Consolidating Financial Information | 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 “Securities 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, jointly and severally, on a senior unsecured basis by certain of its 100% owned domestic subsidiaries. | ||||||||||||||||||||||||
The Company presents condensed consolidating financial information for Quiksilver, Inc. and its domestic subsidiaries within the notes to the 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 October 31, 2014 and October 31, 2013 and for each of fiscal 2014, 2013 and 2012. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. | ||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||
Revenues, net | $ | 465 | $ | 339,886 | $ | 361,715 | $ | 1,026,090 | $ | (157,757 | ) | $ | 1,570,399 | |||||||||||
Cost of goods sold | 193 | 213,824 | 257,752 | 487,316 | (151,527 | ) | 807,558 | |||||||||||||||||
Gross profit | 272 | 126,062 | 103,963 | 538,774 | (6,230 | ) | 762,841 | |||||||||||||||||
Selling, general and administrative expense | 36,514 | 113,530 | 160,695 | 522,649 | (6,207 | ) | 827,181 | |||||||||||||||||
Asset impairments | 2,043 | 40,430 | 4,267 | 142,391 | — | 189,131 | ||||||||||||||||||
Operating loss | (38,285 | ) | (27,898 | ) | (60,999 | ) | (126,266 | ) | (23 | ) | (253,471 | ) | ||||||||||||
Interest expense, net | 46,464 | 2,917 | (5 | ) | 26,615 | — | 75,991 | |||||||||||||||||
Foreign currency (gain)/(loss) | (216 | ) | (269 | ) | 66 | 3,077 | — | 2,658 | ||||||||||||||||
Equity in earnings | 224,726 | 4,509 | — | — | (229,235 | ) | — | |||||||||||||||||
Loss before provision/(benefit) for income taxes | (309,259 | ) | (35,055 | ) | (61,060 | ) | (155,958 | ) | 229,212 | (332,120 | ) | |||||||||||||
Provision/(benefit) for income taxes | 119 | 584 | (17,531 | ) | 12,503 | — | (4,325 | ) | ||||||||||||||||
Loss from continuing operations | (309,378 | ) | (35,639 | ) | (43,529 | ) | (168,461 | ) | 229,212 | (327,795 | ) | |||||||||||||
Income/(loss) from discontinued operations | — | — | 29,244 | (21,595 | ) | — | 7,649 | |||||||||||||||||
Net loss | (309,378 | ) | (35,639 | ) | (14,285 | ) | (190,056 | ) | 229,212 | (320,146 | ) | |||||||||||||
Net loss attributable to non-controlling interest | — | — | — | 10,769 | — | 10,769 | ||||||||||||||||||
Net loss attributable to Quiksilver, Inc. | (309,378 | ) | (35,639 | ) | (14,285 | ) | (179,287 | ) | 229,212 | (309,377 | ) | |||||||||||||
Other comprehensive loss | (16,620 | ) | — | — | (16,620 | ) | 16,620 | (16,620 | ) | |||||||||||||||
Comprehensive loss attributable to Quiksilver, Inc. | $ | (325,998 | ) | $ | (35,639 | ) | $ | (14,285 | ) | $ | (195,907 | ) | $ | 245,832 | $ | (325,997 | ) | |||||||
Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
Year Ended October 31, 2013 | ||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||
Revenues, net | $ | 464 | $ | 422,210 | $ | 472,864 | $ | 1,158,281 | $ | (243,249 | ) | $ | 1,810,570 | |||||||||||
Cost of goods sold | — | 252,103 | 330,655 | 548,582 | (193,201 | ) | 938,139 | |||||||||||||||||
Gross profit | 464 | 170,107 | 142,209 | 609,699 | (50,048 | ) | 872,431 | |||||||||||||||||
Selling, general and administrative expense | 54,002 | 131,560 | 137,148 | 559,152 | (24,305 | ) | 857,557 | |||||||||||||||||
Asset impairments | — | 1,646 | 5,939 | 4,742 | — | 12,327 | ||||||||||||||||||
Operating (loss)/income | (53,538 | ) | 36,901 | (878 | ) | 45,805 | (25,743 | ) | 2,547 | |||||||||||||||
Interest expense, net | 39,487 | 4,359 | 1 | 27,202 | — | 71,049 | ||||||||||||||||||
Foreign currency (gain)/loss | 318 | 56 | (4 | ) | 4,319 | — | 4,689 | |||||||||||||||||
Equity in earnings | 138,111 | 2,739 | — | — | (140,850 | ) | — | |||||||||||||||||
(Loss)/income before provision/(benefit) for income taxes | (231,454 | ) | 29,747 | (875 | ) | 14,284 | 115,107 | (73,191 | ) | |||||||||||||||
Provision/(benefit) for income taxes | 422 | (665 | ) | (3,488 | ) | 169,951 | — | 166,220 | ||||||||||||||||
(Loss)/income from continuing operations | (231,876 | ) | 30,412 | 2,613 | (155,667 | ) | 115,107 | (239,411 | ) | |||||||||||||||
Income from discontinued operations | (689 | ) | — | 5,211 | 1,353 | 11 | 5,886 | |||||||||||||||||
Net (loss)/income | (232,565 | ) | 30,412 | 7,824 | (154,314 | ) | 115,118 | (233,525 | ) | |||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 960 | — | 960 | ||||||||||||||||||
Net (loss)/income attributable to Quiksilver, Inc. | (232,565 | ) | 30,412 | 7,824 | (153,354 | ) | 115,118 | (232,565 | ) | |||||||||||||||
Other comprehensive loss | (12,494 | ) | — | — | (12,494 | ) | 12,494 | (12,494 | ) | |||||||||||||||
Comprehensive (loss)/income attributable to Quiksilver, Inc. | $ | (245,059 | ) | $ | 30,412 | $ | 7,824 | $ | (165,848 | ) | $ | 127,612 | $ | (245,059 | ) | |||||||||
Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
Year Ended October 31, 2012 | ||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||
Revenues, net | $ | 469 | $ | 453,532 | $ | 537,295 | $ | 1,222,273 | $ | (271,720 | ) | $ | 1,941,849 | |||||||||||
Cost of goods sold | — | 275,179 | 358,290 | 579,152 | (212,091 | ) | 1,000,530 | |||||||||||||||||
Gross profit | 469 | 178,353 | 179,005 | 643,121 | (59,629 | ) | 941,319 | |||||||||||||||||
Selling, general and administrative expense | 56,983 | 147,684 | 151,230 | 562,946 | (30,593 | ) | 888,250 | |||||||||||||||||
Asset impairments | — | 11 | 5,151 | 2,072 | — | 7,234 | ||||||||||||||||||
Operating (loss)/income | (56,514 | ) | 30,658 | 22,624 | 78,103 | (29,036 | ) | 45,835 | ||||||||||||||||
Interest expense, net | 28,987 | 5,352 | 1 | 26,545 | — | 60,885 | ||||||||||||||||||
Foreign currency loss/(gain) | (173 | ) | (148 | ) | 96 | (1,484 | ) | — | (1,709 | ) | ||||||||||||||
Equity in earnings | (74,572 | ) | 4,674 | — | — | 69,898 | — | |||||||||||||||||
(Loss)/income before provision/(benefit) for income taxes | (10,756 | ) | 20,780 | 22,527 | 53,042 | (98,934 | ) | (13,341 | ) | |||||||||||||||
Provision/(benefit) for income taxes | — | 1,144 | (3,097 | ) | 5,857 | — | 3,904 | |||||||||||||||||
(Loss)/income from continuing operations | (10,756 | ) | 19,636 | 25,624 | 47,185 | (98,934 | ) | (17,245 | ) | |||||||||||||||
Income from discontinued operations | — | — | 5,721 | 2,080 | (299 | ) | 7,502 | |||||||||||||||||
Net (loss)/income | (10,756 | ) | 19,636 | 31,345 | 49,265 | (99,233 | ) | (9,743 | ) | |||||||||||||||
Net income attributable to non-controlling interest | — | — | — | (1,013 | ) | — | (1,013 | ) | ||||||||||||||||
Net (loss)/income attributable to Quiksilver, Inc. | (10,756 | ) | 19,636 | 31,345 | 48,252 | (99,233 | ) | (10,756 | ) | |||||||||||||||
Other comprehensive income | (29,715 | ) | — | — | (29,715 | ) | 29,715 | (29,715 | ) | |||||||||||||||
Comprehensive (loss)/income attributable to Quiksilver, Inc. | $ | (40,471 | ) | $ | 19,636 | $ | 31,345 | $ | 18,537 | $ | (69,518 | ) | $ | (40,471 | ) | |||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 158 | $ | 2,867 | $ | (2,701 | ) | $ | 46,340 | $ | — | $ | 46,664 | |||||||||||
Restricted cash | — | — | — | 4,687 | — | 4,687 | ||||||||||||||||||
Trade accounts receivable, net | — | 57,317 | 37,606 | 224,917 | — | 319,840 | ||||||||||||||||||
Other receivables | 10 | 3,402 | 1,071 | 36,644 | (280 | ) | 40,847 | |||||||||||||||||
Inventories | — | 22,006 | 70,923 | 203,305 | (17,454 | ) | 278,780 | |||||||||||||||||
Deferred income taxes | — | 21,554 | — | 4,926 | (21,554 | ) | 4,926 | |||||||||||||||||
Prepaid expenses and other current assets | 1,579 | 6,209 | 2,941 | 17,351 | — | 28,080 | ||||||||||||||||||
Intercompany balances | — | 258,808 | — | — | (258,808 | ) | — | |||||||||||||||||
Current portion of assets held for sale | — | — | 28 | 20,237 | — | 20,265 | ||||||||||||||||||
Total current assets | 1,747 | 372,163 | 109,868 | 558,407 | (298,096 | ) | 744,089 | |||||||||||||||||
Restricted cash | — | 16,514 | — | — | — | 16,514 | ||||||||||||||||||
Fixed assets, net | 20,381 | 34,408 | 21,259 | 137,720 | — | 213,768 | ||||||||||||||||||
Intangible assets, net | 6,674 | 43,815 | 1,150 | 83,871 | — | 135,510 | ||||||||||||||||||
Goodwill | — | 61,982 | 11,089 | 7,551 | — | 80,622 | ||||||||||||||||||
Other assets | 7,097 | 5,160 | 1,255 | 33,574 | — | 47,086 | ||||||||||||||||||
Deferred income taxes long-term | 30,807 | — | 2,052 | 16,088 | (32,859 | ) | 16,088 | |||||||||||||||||
Investment in subsidiaries | 725,088 | 1,525 | — | — | (726,613 | ) | — | |||||||||||||||||
Assets held for sale, net of current portion | — | — | — | 2,987 | — | 2,987 | ||||||||||||||||||
Total assets | $ | 791,794 | $ | 535,567 | $ | 146,673 | $ | 840,198 | $ | (1,057,568 | ) | $ | 1,256,664 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Lines of credit | $ | — | $ | — | $ | — | $ | 32,929 | $ | — | $ | 32,929 | ||||||||||||
Accounts payable | 4,582 | 40,942 | 22,008 | 100,775 | — | 168,307 | ||||||||||||||||||
Accrued liabilities | 17,887 | 15,092 | 7,230 | 72,492 | — | 112,701 | ||||||||||||||||||
Current portion of long-term debt | — | 600 | — | 1,832 | — | 2,432 | ||||||||||||||||||
Income taxes payable | — | — | — | 1,436 | (280 | ) | 1,156 | |||||||||||||||||
Deferred income taxes | 31,450 | — | 4,925 | 4,807 | (21,554 | ) | 19,628 | |||||||||||||||||
Intercompany balances | 179,251 | — | 39,265 | 40,292 | (258,808 | ) | — | |||||||||||||||||
Current portion of assets held for sale | — | — | 6 | 12,634 | — | 12,640 | ||||||||||||||||||
Total current liabilities | 233,170 | 56,634 | 73,434 | 267,197 | (280,642 | ) | 349,793 | |||||||||||||||||
Long-term debt | 501,416 | 22,657 | — | 269,156 | — | 793,229 | ||||||||||||||||||
Deferred income taxes long-term | — | 38,052 | — | 11,597 | (32,859 | ) | 16,790 | |||||||||||||||||
Other long-term liabilities | 1,179 | 9,800 | 7,420 | 20,943 | — | 39,342 | ||||||||||||||||||
Total liabilities | 735,765 | 127,143 | 80,854 | 568,893 | (313,501 | ) | 1,199,154 | |||||||||||||||||
Stockholders’/invested equity | 56,029 | 408,424 | 65,819 | 269,825 | (744,067 | ) | 56,030 | |||||||||||||||||
Non-controlling interest | — | — | — | 1,480 | — | 1,480 | ||||||||||||||||||
Total liabilities and equity | $ | 791,794 | $ | 535,567 | $ | 146,673 | $ | 840,198 | $ | (1,057,568 | ) | $ | 1,256,664 | |||||||||||
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 | ||||||||||||||||||
Income taxes receivable | — | — | — | — | — | — | ||||||||||||||||||
Inventories | — | 43,405 | 93,074 | 224,695 | (23,459 | ) | 337,715 | |||||||||||||||||
Deferred income taxes | — | 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: | ||||||||||||||||||||||||
Lines of credit | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
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 | 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 | 500,896 | — | — | 306,916 | — | 807,812 | ||||||||||||||||||
Deferred income taxes long-term | — | 41,039 | 2,053 | — | (23,196 | ) | 19,896 | |||||||||||||||||
Other long-term liabilities | 1,622 | 6,012 | 8,946 | 19,765 | — | 36,345 | ||||||||||||||||||
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 | ||||||||||||||||||||||||
Year Ended October 31, 2014 | ||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net loss | $ | (309,378 | ) | $ | (35,639 | ) | $ | (14,285 | ) | $ | (190,056 | ) | $ | 229,212 | $ | (320,146 | ) | |||||||
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | ||||||||||||||||||||||||
Income from discontinued operations | — | — | (29,244 | ) | 21,595 | — | (7,649 | ) | ||||||||||||||||
Depreciation and amortization | 2,696 | 10,712 | 9,752 | 28,778 | — | 51,938 | ||||||||||||||||||
Stock-based compensation | 17,260 | — | — | — | — | 17,260 | ||||||||||||||||||
Provision for doubtful accounts | — | 15,515 | 437 | 5,904 | — | 21,856 | ||||||||||||||||||
Asset impairments | 2,043 | 40,430 | 4,267 | 142,391 | — | 189,131 | ||||||||||||||||||
Equity in earnings | 224,726 | 4,509 | — | 228 | (229,235 | ) | 228 | |||||||||||||||||
Non-cash interest expense | 1,911 | 1,016 | — | 542 | — | 3,469 | ||||||||||||||||||
Deferred income taxes | — | 1,467 | — | (6,290 | ) | — | (4,823 | ) | ||||||||||||||||
Other adjustments to reconcile net loss | (375 | ) | (295 | ) | (306 | ) | (5,544 | ) | — | (6,520 | ) | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Trade accounts receivable | — | 11,120 | 10,317 | 29,170 | — | 50,607 | ||||||||||||||||||
Inventories | — | 21,131 | 21,039 | (5,096 | ) | 23 | 37,097 | |||||||||||||||||
Intercompany | 132,629 | (45,566 | ) | (128,989 | ) | 41,926 | — | — | ||||||||||||||||
Other operating assets and liabilities | (16,870 | ) | 5,948 | (18,527 | ) | (11,520 | ) | — | (40,969 | ) | ||||||||||||||
Cash provided by/(used by) operating activities of continuing operations | 54,642 | 30,348 | (145,539 | ) | 52,028 | — | (8,521 | ) | ||||||||||||||||
Cash (used by)/provided by operating activities of discontinued operations | — | (18,791 | ) | 16,805 | (16,428 | ) | — | (18,414 | ) | |||||||||||||||
Net cash provided by/(used in) operating activities | 54,642 | 11,557 | (128,734 | ) | 35,600 | — | (26,935 | ) | ||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Proceeds from sale of fixed assets | 174 | 94 | 532 | 4,850 | — | 5,650 | ||||||||||||||||||
Capital expenditures | (6,480 | ) | (12,365 | ) | (10,569 | ) | (24,001 | ) | — | (53,415 | ) | |||||||||||||
Changes in restricted cash | — | (16,514 | ) | — | (4,687 | ) | — | (21,201 | ) | |||||||||||||||
Cash used in investing activities of continuing operations | (6,306 | ) | (28,785 | ) | (10,037 | ) | (23,838 | ) | — | (68,966 | ) | |||||||||||||
Cash provided by/(used by) investing activities of discontinued operations | — | 19,000 | 58,052 | (1,938 | ) | — | 75,114 | |||||||||||||||||
Net cash (used in)/provided by investing activities | (6,306 | ) | (9,785 | ) | 48,015 | (25,776 | ) | — | 6,148 | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Borrowings on lines of credit | — | — | — | 57,413 | — | 57,413 | ||||||||||||||||||
Payments on lines of credit | — | — | — | (24,485 | ) | — | (24,485 | ) | ||||||||||||||||
Borrowings on long-term debt | — | 117,068 | — | 80,018 | — | 197,086 | ||||||||||||||||||
Payments on long-term debt | — | (95,976 | ) | — | (126,196 | ) | — | (222,172 | ) | |||||||||||||||
Payments of debt issuance costs | (160 | ) | 37 | — | — | — | (123 | ) | ||||||||||||||||
Stock option exercises and employee stock purchases | 5,902 | — | — | — | — | 5,902 | ||||||||||||||||||
Intercompany | (53,955 | ) | (22,801 | ) | 76,756 | — | — | — | ||||||||||||||||
Cash (used in)/provided by financing activities of continuing operations | (48,213 | ) | (1,672 | ) | 76,756 | (13,250 | ) | — | 13,621 | |||||||||||||||
Cash (used in)/provided by intercompany financing operations of discontinued operations | — | (966 | ) | 966 | — | — | — | |||||||||||||||||
Net cash provided by/(used in) financing activities | (48,213 | ) | (2,638 | ) | 77,722 | (13,250 | ) | — | 13,621 | |||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (3,450 | ) | — | (3,450 | ) | ||||||||||||||||
Net increase/(decrease) in cash and cash equivalents | 123 | (866 | ) | (2,997 | ) | (6,876 | ) | — | (10,616 | ) | ||||||||||||||
Cash and cash equivalents, beginning of period | 35 | 3,733 | 296 | 53,216 | — | 57,280 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 158 | $ | 2,867 | $ | (2,701 | ) | $ | 46,340 | $ | — | $ | 46,664 | |||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
Year Ended October 31, 2013 | ||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net (loss)/income | $ | (232,565 | ) | $ | 30,412 | $ | 7,824 | $ | (154,314 | ) | $ | 115,118 | $ | (233,525 | ) | |||||||||
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ||||||||||||||||||||||||
Income from discontinued operations | 689 | — | (5,211 | ) | (1,353 | ) | (11 | ) | (5,886 | ) | ||||||||||||||
Depreciation and Amortization | 2,218 | 11,556 | 6,031 | 30,153 | — | 49,958 | ||||||||||||||||||
Stock based compensation | 21,556 | — | — | — | — | 21,556 | ||||||||||||||||||
Provision for doubtful accounts | — | (129 | ) | (1,823 | ) | 7,681 | — | 5,729 | ||||||||||||||||
Asset impairments | — | 1,646 | 5,939 | 4,742 | — | 12,327 | ||||||||||||||||||
Equity in earnings | 138,111 | 2,739 | — | 613 | (140,850 | ) | 613 | |||||||||||||||||
Non-cash interest expense | 4,702 | 1,312 | — | 781 | 6,795 | |||||||||||||||||||
Deferred income taxes | — | (1,750 | ) | — | 160,847 | — | 159,097 | |||||||||||||||||
Other adjustments to reconcile net (loss)/income | 316 | 27 | (196 | ) | (1,529 | ) | — | (1,382 | ) | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Trade accounts receivable | — | (3,339 | ) | 36,610 | (34,491 | ) | — | (1,220 | ) | |||||||||||||||
Inventories | — | (11,182 | ) | 3,830 | (30,251 | ) | 25,743 | (11,860 | ) | |||||||||||||||
Other operating assets and liabilities | 8,327 | 3,080 | (20,748 | ) | 32,027 | — | 22,686 | |||||||||||||||||
Cash (used in)/provided by operating activities of continuing operations | (56,646 | ) | 34,372 | 32,256 | 14,906 | — | 24,888 | |||||||||||||||||
Cash provided by operating activities of discontinued operations | — | — | 1,515 | 789 | — | 2,304 | ||||||||||||||||||
Net cash (used in)/provided by operating activities | (56,646 | ) | 34,372 | 33,771 | 15,695 | — | 27,192 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Proceeds from sale of fixed assets | 55 | — | 12 | 792 | — | 859 | ||||||||||||||||||
Capital expenditures | (7,347 | ) | (6,606 | ) | (7,965 | ) | (30,264 | ) | — | (52,182 | ) | |||||||||||||
Cash used in investing activities of continuing operations | (7,292 | ) | (6,606 | ) | (7,953 | ) | (29,472 | ) | — | (51,323 | ) | |||||||||||||
Cash used in investing activities of discontinued operations | — | — | (268 | ) | (2,302 | ) | — | (2,570 | ) | |||||||||||||||
Net cash used in investing activities | (7,292 | ) | (6,606 | ) | (8,221 | ) | (31,774 | ) | — | (53,893 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Transactions with non-controlling interest owners | — | (58 | ) | — | — | — | (58 | ) | ||||||||||||||||
Borrowings on lines of credit | — | — | — | 6,157 | — | 6,157 | ||||||||||||||||||
Payments on lines of credit | — | — | — | (22,561 | ) | — | (22,561 | ) | ||||||||||||||||
Borrowings on long-term debt | 500,776 | 59,829 | — | 92,310 | — | 652,915 | ||||||||||||||||||
Payments on long-term debt | (400,000 | ) | (129,123 | ) | — | (53,333 | ) | — | (582,456 | ) | ||||||||||||||
Payments of debt issuance costs | (9,965 | ) | (4,312 | ) | — | — | — | (14,277 | ) | |||||||||||||||
Stock option exercises and employee stock purchases | 9,944 | — | — | — | — | 9,944 | ||||||||||||||||||
Intercompany | (37,106 | ) | 47,665 | (23,423 | ) | 12,864 | — | — | ||||||||||||||||
Cash provided by/(used in) financing activities of continuing operations | 63,649 | (25,999 | ) | (23,423 | ) | 35,437 | — | 49,664 | ||||||||||||||||
Cash provided by financing activities of discontinued operations | — | — | — | — | — | — | ||||||||||||||||||
Net cash provided by/(used in) financing activities | 63,649 | (25,999 | ) | (23,423 | ) | 35,437 | — | 49,664 | ||||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (7,506 | ) | — | (7,506 | ) | ||||||||||||||||
Net increase/(decrease) in cash and cash equivalents | (289 | ) | 1,767 | 2,127 | 11,852 | — | 15,457 | |||||||||||||||||
Cash and cash equivalents, beginning of period | 324 | 1,966 | (1,831 | ) | 41,364 | — | 41,823 | |||||||||||||||||
Cash and cash equivalents, end of period | $ | 35 | $ | 3,733 | $ | 296 | $ | 53,216 | $ | — | $ | 57,280 | ||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
Year Ended October 31, 2012 | ||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net (loss)/income | $ | (10,756 | ) | $ | 19,636 | $ | 31,345 | $ | 49,265 | $ | (99,233 | ) | $ | (9,743 | ) | |||||||||
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ||||||||||||||||||||||||
Income from discontinued operations | — | — | (5,721 | ) | (2,080 | ) | 299 | (7,502 | ) | |||||||||||||||
Depreciation and Amortization | 2,088 | 11,314 | 6,483 | 32,533 | — | 52,418 | ||||||||||||||||||
Stock based compensation | 22,552 | — | — | — | — | 22,552 | ||||||||||||||||||
Provision for doubtful accounts | — | (763 | ) | (1,307 | ) | 6,100 | — | 4,030 | ||||||||||||||||
Asset impairments | — | 11 | 5,151 | 2,072 | — | 7,234 | ||||||||||||||||||
Equity in earnings | (74,572 | ) | 4,674 | — | 282 | 69,898 | 282 | |||||||||||||||||
Non-cash interest expense | 1,490 | 1,506 | — | 689 | — | 3,685 | ||||||||||||||||||
Deferred income taxes | — | 474 | — | (9,095 | ) | — | (8,621 | ) | ||||||||||||||||
Other adjustments to reconcile net (loss)/income | (443 | ) | (94 | ) | 130 | (6,114 | ) | — | (6,521 | ) | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Trade accounts receivable | — | (7,227 | ) | (19,368 | ) | (24,155 | ) | — | (50,750 | ) | ||||||||||||||
Inventories | — | 23,444 | (41,966 | ) | (3,331 | ) | 29,036 | 7,183 | ||||||||||||||||
Other operating assets and liabilities | 5,918 | (9,589 | ) | 16,996 | (42,144 | ) | — | (28,819 | ) | |||||||||||||||
Cash (used in)/provided by operating activities of continuing operations | (53,723 | ) | 43,386 | (8,257 | ) | 4,022 | — | (14,572 | ) | |||||||||||||||
Cash provided by/(used in) operating activities of discontinued operations | — | — | (1,521 | ) | 2,554 | — | 1,033 | |||||||||||||||||
Net cash (used in)/provided by operating activities | (53,723 | ) | 43,386 | (9,778 | ) | 6,576 | — | (13,539 | ) | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Proceeds from sale of fixed assets | — | 43 | 2 | 8,153 | — | 8,198 | ||||||||||||||||||
Capital expenditures | (4,388 | ) | (13,744 | ) | (8,527 | ) | (36,684 | ) | — | (63,343 | ) | |||||||||||||
Payment for purchases of companies | — | — | — | — | — | — | ||||||||||||||||||
Cash used in investing activities of continuing operations | (4,388 | ) | (13,701 | ) | (8,525 | ) | (28,531 | ) | — | (55,145 | ) | |||||||||||||
Cash used in investing activities of discontinued operations | — | — | (309 | ) | (11,546 | ) | — | (11,855 | ) | |||||||||||||||
Net cash used in investing activities | (4,388 | ) | (13,701 | ) | (8,834 | ) | (40,077 | ) | — | (67,000 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Transactions with non-controlling interest owners | — | (11,000 | ) | — | — | — | (11,000 | ) | ||||||||||||||||
Borrowings on lines of credit | — | — | — | 15,139 | — | 15,139 | ||||||||||||||||||
Payments on lines of credit | — | — | — | (12,641 | ) | — | (12,641 | ) | ||||||||||||||||
Borrowings on long-term debt | — | 93,500 | — | 46,535 | — | 140,035 | ||||||||||||||||||
Payments on long term debt | — | (70,800 | ) | — | (42,041 | ) | — | (112,841 | ) | |||||||||||||||
Payments of Debt and Equity Issuance Costs | — | — | — | — | — | — | ||||||||||||||||||
Stock option exercises and employee stock purchases | 2,241 | — | — | — | — | 2,241 | ||||||||||||||||||
Intercompany | 56,177 | (44,391 | ) | 20,422 | (32,208 | ) | — | — | ||||||||||||||||
Cash provided by/(used in) financing activities of continuing operations | 58,418 | (32,691 | ) | 20,422 | (25,216 | ) | — | 20,933 | ||||||||||||||||
Cash provided by financing activities of discontinued operations | — | — | — | — | — | — | ||||||||||||||||||
Net cash provided by/(used in) financing activities | 58,418 | (32,691 | ) | 20,422 | (25,216 | ) | — | 20,933 | ||||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (8,324 | ) | — | (8,324 | ) | ||||||||||||||||
Net (decrease)/increase in cash and cash equivalents | 307 | (3,006 | ) | 1,810 | (67,041 | ) | — | (67,930 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | 17 | 4,972 | (3,641 | ) | 108,405 | — | 109,753 | |||||||||||||||||
Cash and cash equivalents, end of period | $ | 324 | $ | 1,966 | $ | (1,831 | ) | $ | 41,364 | $ | — | $ | 41,823 | |||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |
Oct. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Company Business | Company Business | |
Quiksilver, Inc. and its subsidiaries (the “Company”) design, develop and distribute branded apparel, footwear, accessories and related products. The Company’s apparel and footwear brands represent a casual lifestyle for young-minded people that connect with its boardriding culture and heritage. The Company’s Quiksilver, Roxy, and DC brands are synonymous with the heritage and culture of surfing, skateboarding and snowboarding. The Company’s products are sold in over 115 countries in a wide range of distribution points, including surf shops, skate shops, snow shops, its proprietary concept stores, other specialty stores and select department stores. Distribution is primarily in the United States, Europe and Australia. | ||
Principles of Consolidation | Principles of Consolidation | |
The consolidated financial statements include the accounts of Quiksilver, Inc. and its subsidiaries, (the "Company"). All intercompany transactions and balances have been eliminated. | ||
The Company completed the sale of Mervin Manufacturing, Inc. ("Mervin") and substantially all of the assets of Hawk Designs, Inc. ("Hawk") during the first quarter ended January 31, 2014. In December 2014, the Company sold its majority stake in its Surfdome Shop, Ltd. ("Surfdome") for net proceeds of approximately $16 million. As a result, the Company reports the operating results of Mervin, Hawk and Surfdome in "Income from discontinued operations, net of tax" in the consolidated statements of operations for all periods presented. In addition, the assets and liabilities associated with these businesses are reported as discontinued operations in the consolidated balance sheets (see Note 18, "Discontinued Operations"). Unless otherwise indicated, the disclosures accompanying the consolidated financial statements reflect the Company's continuing operations. | ||
Basis of Presentation | Basis of Presentation | |
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, ("GAAP"). References to any particular fiscal year refer to the year ended October 31 of that year (for example, “fiscal 2014” refers to the year ended October 31, 2014). | ||
Use of Estimates | Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Cash Equivalents | Cash Equivalents | |
Cash equivalents represent cash and short-term, highly liquid investments, including commercial paper, U.S. Treasury, U.S. Agency, and corporate debt securities with original maturities of three months or less at the date of purchase. Cash equivalents represent Level 1 fair value investments. See the Fair Value Measurements section below for further details. | ||
Restricted Cash | Restricted Cash | |
Restricted cash represents cash that is designated for specific uses according to the terms and conditions of certain of the Company's credit facilities. The nature of the permitted usage of restricted cash determines its classification on the Company's balance sheet. Amounts reported within current assets are available for use in current operations within certain parameters. Amounts reported within long-term assets can only be used for capital expenditures, acquisitions or other long-term investment needs. The Company expects that all restricted cash will be utilized during fiscal 2015. | ||
Inventories | Inventories | |
Inventories are valued at the lower of cost (first-in, first-out and moving average, depending on entity) or market. Management regularly reviews the inventory quantities on hand and adjusts inventory values for excess and obsolete inventory based primarily on estimated forecasts of product demand and market value. | ||
Fixed Assets, net | Fixed Assets, net | |
Furniture and other equipment, computer equipment and buildings are recorded at cost and depreciated on a straight-line basis over their estimated useful lives, which generally range from two to twenty years. Leasehold improvements are recorded at cost and amortized over their estimated useful lives or related lease term, whichever is shorter. Land use rights for certain leased retail locations are amortized to estimated residual value and are tested for impairment when the store subject to the land use right has an indicator of impairment. Depreciation and amortization of all assets are recorded in selling, general and administrative expense ("SG&A"). | ||
Long-Lived Assets | Long-lived Assets | |
The Company accounts for the impairment and disposition of long-lived assets in accordance with Accounting Standards Codification (“ASC”) 360, “Property, Plant, and Equipment.” In accordance with ASC 360, management assesses potential impairments of its long-lived assets whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized when the carrying value exceeds the undiscounted future cash flows estimated to result from the use and eventual disposition of the asset. The Company recorded approximately $11 million in fixed asset impairments primarily related to its retail stores during fiscal 2014, $12 million in fiscal 2013 and $7 million in fiscal 2012 to write-down the carrying value to their estimated fair values. Fair value is determined using a discounted cash flow model which requires “Level 3” inputs, as defined in ASC 820, “Fair Value Measurements and Disclosures.” See the Fair Value Measurements section below. On an individual retail store basis, these inputs typically include annual revenue growth assumptions ranging from (15)% to 20% per year depending upon the location, life cycle and current economics of a specific store, as well as modest gross margin and expense improvement assumptions. | ||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |
The Company accounts for goodwill and intangible assets in accordance with ASC 350, “Intangibles - Goodwill and Other.” Under ASC 350, goodwill and intangible assets with indefinite lives are not amortized but are tested for impairment annually and also in the event of an impairment indicator. The annual impairment test is a fair value test as prescribed by ASC 350 which includes assumptions for each reporting unit. The assumptions for the Company include projected annual revenue growth ranging from (14)% to 17% per year, annual gross margin improvements ranging from (10) to 250 basis points per year, and SG&A improvements ranging from (50) to 1,290 basis points per year as a percentage of net revenues, and discount rates. | ||
In fiscal 2014, the Company recorded goodwill impairment charges of approximately $178 million to fully impair goodwill associated with its EMEA reporting segment. No goodwill impairments were recorded in fiscal 2013 or fiscal 2012. | ||
As of October 31, 2014, the fair values of each of the Company’s reporting units substantially exceeded their carrying values. Goodwill amounted to $74 million for the Americas and $6 million for APAC as of October 31, 2014. Based on the uncertainty of future revenue growth rates, gross profit and expense performance, and other assumptions used to estimate goodwill recoverability in the Company’s reporting units, future reductions in the Company’s expected cash flows for a reporting unit as a result of any variation between projected and actual results could cause an impairment of goodwill. | ||
Fair Value Measurement | Fair Value Measurements | |
ASC 820 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: | ||
The Company measures certain financial assets and liabilities at fair value on a recurring basis, including derivatives. Fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. The Company uses a three-level hierarchy established in ASC 820 that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). | ||
The levels of hierarchy are described below: | ||
• | 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 assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Financial assets and liabilities are classified in their entirety based on the most conservative level of input that is significant to the fair value measurement. | ||
Pricing vendors are utilized for certain Level 1 and Level 2 investments. These vendors either provide a quoted market price in an active market or use observable inputs without applying significant adjustments in their pricing. Observable inputs include broker quotes, interest rates and yield curves observable at commonly quoted intervals, volatilities and credit risks. The Company’s fair value processes include controls that are designed to ensure appropriate fair values are recorded. These controls include an analysis of period-over-period fluctuations and comparison to another independent pricing vendor. | ||
Assets Held for Sale/Discontinued Operations | Assets Held for Sale/Discontinued Operations | |
The Company applies the guidance set forth in ASC 360, “Property, Plant and Equipment” and ASC 205, “Presentation of Financial Statements” to determine when certain asset groups should be classified as “held for sale” and reported as discontinued operations in its consolidated financial statements. As a result of the application of this guidance, the Company has classified certain asset groups as “held for sale” as of October 31, 2014. See Note 18, “Discontinued Operations”, for further details regarding the operating results of the Company’s discontinued operations. | ||
Revenue Recognition | Revenue Recognition | |
Revenues are recognized upon the transfer of title and risk of ownership to customers. For wholesale customers, transfer is based on the terms of sale, typically at the shipping point. For retail and e-commerce customers, transfer occurs at the time of sale. Allowances for estimated returns and doubtful accounts, non-merchandise credits, and certain co-op advertising arrangements are provided when revenues are recorded. Returns and allowances are reported as reductions in revenues, whereas allowances for bad debts are reported as a component of SG&A expense. Royalty and license income is recorded as earned. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. | ||
Promotion and Advertising | Promotion and Advertising | |
The Company’s promotion and advertising efforts include magazine advertisements, retail signage, athlete sponsorships, boardriding contests, websites, television programs, co-branded products, social media and other events. | ||
Rent Expense | Rent Expense | |
The Company enters into non-cancelable operating leases for retail stores, distribution facilities, equipment, and office space. Most leases have fixed rentals, with many of the real estate leases requiring normal and customary additional payments for real estate taxes and occupancy-related costs. Rent expense for leases having rent holidays, landlord incentives or scheduled rent increases is recorded on a straight-line basis over the lease term, generally beginning with the lease commencement date. Differences between straight-line rent expense and actual rent payments are recorded in other assets or other liabilities as an adjustment to rent expense over the lease term. | ||
Income Taxes | Income Taxes | |
The Company accounts for income taxes using the asset and liability approach as promulgated by the authoritative guidance included in ASC 740, “Income Taxes.” Deferred income tax assets and liabilities are established for temporary differences between the financial reporting bases and the tax bases of the Company’s assets and liabilities at tax rates expected to be in effect when such assets or liabilities are realized or settled. Deferred income tax assets are reduced by a valuation allowance if, in the judgment of the Company’s management, it is more likely than not that such assets will not be realized. The Company evaluated the recoverability of its deferred tax assets at the end of fiscal 2014 in accordance with ASC 740. | ||
ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in the financial statements. This guidance provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the tax position. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of its provision for income taxes. The application of this guidance can create significant variability in the effective tax rate from period to period based upon changes in or adjustments to the Company’s uncertain tax positions. | ||
Stock-Based Compensation Expense | Stock-based Compensation Expense | |
The Company recognizes compensation expense for all stock-based payments net of an estimated forfeiture rate and only recognizes compensation cost for those shares expected to vest using the graded vested method over the requisite service period of the award. For option valuations, the Company determines the fair value at the grant date using the Black-Scholes option-pricing model which requires the input of certain assumptions, including the expected life of the stock-based payment awards, stock price volatility and interest rates. For performance based equity awards with stock price contingencies, the Company determines the fair value using a Monte-Carlo simulation, which creates a normal distribution of future stock prices, which is then used to value the awards based on their individual terms. | ||
Net Loss per Share | Net Loss per Share | |
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. | ||
Foreign Currency Translation and Foreign Currency Transactions | Foreign Currency Translation and Foreign Currency Transactions | |
The Company's reporting currency is the U.S dollar. The functional currencies of the Company's subsidiaries within its EMEA and APAC segments are primarily the Euro, and the Australian dollar and the Japanese yen, respectively. The functional currency of the Company's subsidiaries within its Americas segment is primarily the U.S. dollar. Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are included in the foreign currency translation adjustment, a component of accumulated other comprehensive income in shareholders’ equity. | ||
The Company’s global subsidiaries have various assets and liabilities, primarily receivables and payables, which are denominated in currencies other than their functional currency. These balance sheet items are subject to remeasurement, the impact of which is recorded in "Foreign currency loss/(gain)" within the consolidated statements of operations. | ||
Derivatives | ||
Derivative financial instruments are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of a derivative depends on the use and type of the derivative. The Company’s derivative financial instruments principally consist of foreign currency exchange rate contracts, which the Company uses to manage its exposure to the risk of changes in foreign currency exchange rates. The Company’s objectives are to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not enter into derivative financial instruments for speculative or trading purposes. | ||
Comprehensive Income or Loss | Comprehensive Income or Loss | |
Comprehensive income or loss includes all changes in stockholders’ equity except those resulting from investments by, and distributions to, stockholders. Accordingly, the Company’s consolidated statements of comprehensive loss include its net loss, the fair value gains and losses on certain derivative instruments and adjustments resulting from translating foreign functional currency financial statements into U.S. dollars for the Company's subsidiaries within the EMEA and APAC segments and the foreign entities within the Americas segment. | ||
New Accounting Pronouncements | New Accounting Pronouncements | |
In April 2014, the FASB issued Accounting Standards Update ("ASU") 2014-08 Presentation of Financial Statements (Topic 205) and Property Plant and Equipment (Topic 360), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity which provides amended guidance on the presentation of financial statements and reporting discontinued operations and disclosures of disposals of components of an entity within property, plant and equipment. ASU 2014-08 amends the definition of a discontinued operation and requires entities to disclose additional information about disposal transactions that do not meet the discontinued operations criteria. The effective date of ASU 2014-08 is for disposals that occur in annual periods (and interim periods therein) beginning on or after December 15, 2014, with early adoption permitted. The Company is currently evaluating the impact, if any, that this amended guidance may have on its consolidated financial statements and related disclosures. | ||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides a single, comprehensive framework for all entities in all industries to apply in the determination of when to recognize revenue, and, therefore, supersedes virtually all existing revenue recognition requirements and guidance. This framework is expected to result in less complex guidance in application while providing a consistent and comparable methodology for revenue recognition. The core principle of the guidance is that an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract(s), (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract(s), and (v) recognize revenue when, or as, the entity satisfies a performance obligation. ASU 2014-09 is effective for annual periods (and interim periods therein) beginning on or after December 15, 2016. Early adoption is not permitted. The Company is currently in the process of evaluating the impact that this amended guidance will have on its consolidated financial statements and related disclosures. | ||
In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation, which clarifies accounting for share-based payments for which the terms of an award provide that a performance target could be achieved after the requisite service period. That is the case when an employee is eligible to retire or otherwise terminate employment before the end of the period in which a performance target could be achieved and still be eligible to vest in the award if and when the performance target is achieved. The updated guidance clarifies that such a term should be treated as a performance condition that affects vesting. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The guidance will be effective for the Company beginning with fiscal year 2016, and may be applied either prospectively or retrospectively. The Company does not anticipate that this guidance will materially impact its consolidated financial statements and related disclosures. | ||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern, which will require an entity’s management to assess, for each annual and interim period, whether there is substantial doubt about the entity’s ability to continue as a going concern within one year of the financial statement issuance date. The definition of substantial doubt within the new standard incorporates a likelihood threshold of “probable” similar to the use of that term under current GAAP for loss contingencies. Certain disclosures will be required if conditions give rise to substantial doubt. The guidance will be effective for the Company beginning with fiscal year 2017. Early adoption is permitted. The Company is currently evaluating the impact that this amended guidance will have on its consolidated financial statements and related disclosures. | ||
Derivatives and Hedging | 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. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Impairment Charges Reduced Carrying Amounts Respective Long-Lived Assets | The impairment charges reduced the carrying amounts of the respective long-lived assets as follows: | ||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||
Carrying value of long-lived assets | $ | 10,934 | $ | 10,181 | $ | 7,933 | |||||||
Less: impairment charges | (10,934 | ) | (10,181 | ) | (7,234 | ) | |||||||
Fair value of long-lived assets | $ | — | $ | — | $ | 699 | |||||||
Revenues in Consolidated Statements of Operations | Revenues in the consolidated statements of operations include the following: | ||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||
Product sales, net | $ | 1,559,174 | $ | 1,801,355 | $ | 1,929,086 | |||||||
Royalty and licensing income | 11,225 | 9,215 | 12,763 | ||||||||||
Total | $ | 1,570,399 | $ | 1,810,570 | $ | 1,941,849 | |||||||
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: | ||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||
Shares used in computing basic net loss per share | 170,492 | 167,255 | 164,245 | ||||||||||
Dilutive effect of stock options and restricted stock(1) | — | — | — | ||||||||||
Dilutive effect of stock warrants(1) | — | — | — | ||||||||||
Shares used in computing diluted net loss per share | 170,492 | 167,255 | 164,245 | ||||||||||
-1 | For fiscal 2014, 2013 and 2012, the shares used in computing diluted net loss per share do not include 2,145,000, 3,862,000, and 3,103,000 dilutive stock options and shares of restricted stock, respectively, nor 17,024,000, 17,792,000, and 11,559,000 dilutive warrant shares, respectively, as the effect is anti-dilutive given the Company’s loss. For fiscal 2014, 2013 and 2012, additional stock options outstanding of 4,856,000, 5,409,000, and 10,559,000, respectively, and additional warrant shares outstanding of 8,630,000, 7,862,000, and 14,095,000, respectively, were excluded from the calculation of diluted net loss per share, as their effect would have been anti-dilutive based on the application of the treasury stock method. |
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Information Related to Company's Operating Segments all from Continuing Operations | Information related to the Company’s operating segments, all from continuing operations, is as follows: | ||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||
Revenues, net: | |||||||||||||
Americas | $ | 723,427 | $ | 893,333 | $ | 960,719 | |||||||
EMEA | 583,650 | 631,546 | 671,991 | ||||||||||
APAC | 262,494 | 282,070 | 305,518 | ||||||||||
Corporate operations | 828 | 3,621 | 3,621 | ||||||||||
Total | $ | 1,570,399 | $ | 1,810,570 | $ | 1,941,849 | |||||||
Gross profit/(loss): | |||||||||||||
Americas | $ | 298,910 | $ | 370,288 | $ | 408,361 | |||||||
EMEA | 324,542 | 358,175 | 376,929 | ||||||||||
APAC | 143,452 | 143,874 | 156,328 | ||||||||||
Corporate operations | (4,063 | ) | 94 | (299 | ) | ||||||||
Total | $ | 762,841 | $ | 872,431 | $ | 941,319 | |||||||
SG&A expense: | |||||||||||||
Americas | $ | 317,749 | $ | 319,736 | $ | 349,350 | |||||||
EMEA | 310,861 | 324,346 | 322,715 | ||||||||||
APAC | 155,540 | 146,389 | 157,145 | ||||||||||
Corporate operations | 43,031 | 67,086 | 59,040 | ||||||||||
Total | $ | 827,181 | $ | 857,557 | $ | 888,250 | |||||||
Asset impairments: | |||||||||||||
Americas | $ | 6,672 | $ | 9,211 | $ | 5,267 | |||||||
EMEA | 179,608 | 3,004 | 560 | ||||||||||
APAC | 808 | 112 | 1,407 | ||||||||||
Corporate operations | 2,043 | — | — | ||||||||||
Total | $ | 189,131 | $ | 12,327 | $ | 7,234 | |||||||
Operating (loss)/income: | |||||||||||||
Americas | $ | (25,511 | ) | $ | 41,341 | $ | 53,744 | ||||||
EMEA | (165,927 | ) | 30,825 | 53,654 | |||||||||
APAC | (12,896 | ) | (2,627 | ) | (2,224 | ) | |||||||
Corporate operations | (49,137 | ) | (66,992 | ) | (59,339 | ) | |||||||
Total | $ | (253,471 | ) | $ | 2,547 | $ | 45,835 | ||||||
Identifiable assets: | |||||||||||||
Americas | $ | 467,920 | $ | 581,021 | $ | 576,179 | |||||||
EMEA | 510,896 | 744,936 | 718,537 | ||||||||||
APAC | 202,225 | 222,542 | 224,149 | ||||||||||
Corporate operations | 75,623 | 71,971 | 199,375 | ||||||||||
Total | $ | 1,256,664 | $ | 1,620,470 | $ | 1,718,240 | |||||||
Percentages of Revenues Attributable to Company's Major Product Categories | The Company sells a full range of its products within each geographical segment. The percentages of net revenues from continuing operations attributable to each of the Company’s product groups are as follows: | ||||||||||||
Year Ended October 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Apparel and accessories | 75 | % | 75 | % | 73 | % | |||||||
Footwear | 25 | % | 25 | % | 27 | % | |||||||
Total | 100 | % | 100 | % | 100 | % |
Allowance_for_Doubtful_Account1
Allowance for Doubtful Accounts (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Receivables [Abstract] | |||||||||||||
Allowance for Doubtful Accounts, Includes Bad Debts as Well as Returns and Allowances | The allowance for doubtful accounts, which includes bad debts as well as sales returns and allowances, consisted of the following as of the dates indicated: | ||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||
Balance, beginning of year | $ | 60,912 | $ | 57,563 | $ | 61,341 | |||||||
Provision for doubtful accounts | 21,856 | 5,729 | 4,030 | ||||||||||
Deductions | (18,777 | ) | (2,380 | ) | (7,808 | ) | |||||||
Balance, end of year | $ | 63,991 | $ | 60,912 | $ | 57,563 | |||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Inventories consisted of the following as of the dates indicated: | ||||||||
October 31, | |||||||||
In thousands | 2014 | 2013 | |||||||
Raw materials | $ | 3,524 | $ | 4,725 | |||||
Work in process | 467 | 681 | |||||||
Finished goods | 274,789 | 332,309 | |||||||
Total | $ | 278,780 | $ | 337,715 | |||||
Fixed_Assets_net_Tables
Fixed Assets, net (Tables) | 12 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Summary of Fixed Assets | Fixed assets consisted of the following as of the dates indicated: | ||||||||
October 31, | |||||||||
In thousands | 2014 | 2013 | |||||||
Furniture and other equipment | $ | 103,554 | $ | 128,409 | |||||
Leasehold improvements | 163,894 | 175,698 | |||||||
Computer software and equipment | 106,238 | 110,651 | |||||||
Land use rights | 37,409 | 39,678 | |||||||
Land and buildings | 10,626 | 11,482 | |||||||
Construction in progress | 12,935 | 14,203 | |||||||
Total fixed assets, gross | 434,656 | 480,121 | |||||||
Accumulated depreciation and amortization | (220,888 | ) | (248,860 | ) | |||||
Total fixed assets, net | $ | 213,768 | $ | 231,261 | |||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Intangible Assets | Intangible assets consisted of the following as of the dates indicated: | ||||||||||||||||||||||||
October 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
In thousands | Gross | Amortization | Net Book | Gross | Amortization | Net Book | |||||||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||||||||
Non-amortizable trademarks | $ | 124,121 | $ | — | $ | 124,121 | $ | 124,099 | $ | — | $ | 124,099 | |||||||||||||
Amortizable trademarks | 21,858 | (12,508 | ) | 9,350 | 19,810 | (11,534 | ) | 8,276 | |||||||||||||||||
Amortizable licenses | 11,817 | (11,817 | ) | — | 12,749 | (12,749 | ) | — | |||||||||||||||||
Other amortizable intangibles | 8,406 | (6,367 | ) | 2,039 | 8,185 | (5,964 | ) | 2,221 | |||||||||||||||||
Total | $ | 166,202 | $ | (30,692 | ) | $ | 135,510 | $ | 164,843 | $ | (30,247 | ) | $ | 134,596 | |||||||||||
Summary of Goodwill by Segment | 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 | $ | 76,048 | $ | 186,334 | $ | 135,752 | $ | 398,134 | |||||||||||||||||
Accumulated impairment losses | — | — | (129,545 | ) | (129,545 | ) | |||||||||||||||||||
Net goodwill at October 31, 2011 | $ | 76,048 | $ | 186,334 | $ | 6,207 | $ | 268,589 | |||||||||||||||||
Acquisitions | — | 174 | — | 174 | |||||||||||||||||||||
Foreign currency translation and other | (74 | ) | (11,639 | ) | — | (11,713 | ) | ||||||||||||||||||
Gross goodwill | 75,974 | 174,869 | 135,752 | 386,595 | |||||||||||||||||||||
Accumulated impairment losses | — | — | (129,545 | ) | (129,545 | ) | |||||||||||||||||||
Net goodwill at October 31, 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 October 31, 2013 | $ | 74,943 | $ | 180,475 | $ | 6,207 | $ | 261,625 | |||||||||||||||||
Impairments | — | (178,197 | ) | (178,197 | ) | ||||||||||||||||||||
Foreign currency translation and other | (528 | ) | (2,278 | ) | — | (2,806 | ) | ||||||||||||||||||
Gross goodwill | 74,415 | 178,197 | 135,752 | 388,364 | |||||||||||||||||||||
Accumulated impairment losses | — | (178,197 | ) | (129,545 | ) | (307,742 | ) | ||||||||||||||||||
Net goodwill at October 31, 2014 | $ | 74,415 | $ | — | $ | 6,207 | $ | 80,622 | |||||||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||||
Oct. 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: | ||||||||||
October 31, | |||||||||||
In thousands | Maturity | 2014 | 2013 | ||||||||
Lines of credit - 0.8% Floating | 31-Oct-16 | $ | 32,929 | $ | — | ||||||
EMEA credit facilities | — | 21,594 | |||||||||
2017 Notes - 8.875% Fixed | 15-Dec-17 | 252,188 | 274,952 | ||||||||
ABL Credit Facility - 2.1% to 5.6% Floating | 24-May-18 | 35,933 | 27,408 | ||||||||
2018 Notes - 7.875% Fixed | 1-Aug-18 | 278,834 | 278,612 | ||||||||
2020 Notes - 10.000% Fixed | 1-Aug-20 | 222,582 | 222,285 | ||||||||
Capital lease obligations and other borrowings - Various % | Various | 6,124 | 6,449 | ||||||||
Total debt | 828,590 | 831,300 | |||||||||
Less current portion | (35,361 | ) | (23,488 | ) | |||||||
Long-term debt, net of current portion | $ | 793,229 | $ | 807,812 | |||||||
Summary of Principal Payments on All Long-term Debt Obligations, Including Capital Leases Due | Principal payments on all long-term debt obligations as of the date indicated, including capital leases, are due by fiscal year according to the table below. | ||||||||||
In thousands | 31-Oct-14 | ||||||||||
2015 | $ | 2,432 | |||||||||
2016 | 1,655 | ||||||||||
2017 | 1,508 | ||||||||||
2018 | 567,484 | ||||||||||
2019 | — | ||||||||||
Thereafter | 222,582 | ||||||||||
Total | $ | 795,661 | |||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following as of the dates indicated: | ||||||||
October 31, | |||||||||
In thousands | 2014 | 2013 | |||||||
Accrued employee compensation and benefits | $ | 40,461 | $ | 41,229 | |||||
Accrued sales and payroll taxes | 19,471 | 14,738 | |||||||
Accrued interest | 19,673 | 22,289 | |||||||
Other liabilities(1) | 33,096 | 43,289 | |||||||
Total | $ | 112,701 | $ | 121,545 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Oct. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Lease Payments | The following is a schedule of future minimum lease payments by fiscal year required under such leases as of the date indicated: | ||||
In thousands | 31-Oct-14 | ||||
2015 | $ | 87,883 | |||
2016 | 72,893 | ||||
2017 | 57,355 | ||||
2018 | 45,991 | ||||
2019 | 36,934 | ||||
Thereafter | 95,954 | ||||
Total | $ | 397,010 | |||
Schedule of Future Estimated Minimum Payments | The following is a schedule of future estimated minimum payments required under such endorsement agreements as of the date indicated: | ||||
In thousands | 31-Oct-14 | ||||
2015 | $ | 18,957 | |||
2016 | 11,917 | ||||
2017 | 8,322 | ||||
2018 | 3,377 | ||||
2019 | 319 | ||||
Thereafter | 110 | ||||
Total | $ | 43,002 | |||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||
Schedule of Changes in Shares Under Options Excluding Performance Based Options | Changes in shares under option, excluding performance based options, are summarized as follows: | |||||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
In thousands | Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||
Outstanding, beginning of year | 8,829,618 | $ | 4.83 | 12,325,499 | $ | 4.49 | 13,399,381 | $ | 4.4 | |||||||||||||
Granted | 275,000 | 8.05 | 1,045,000 | 6.68 | 375,000 | 3.66 | ||||||||||||||||
Exercised | (1,058,416 | ) | 4.27 | (2,985,792 | ) | 2.94 | (506,329 | ) | 2.23 | |||||||||||||
Canceled/Forfeited | (1,228,593 | ) | 7.67 | (1,555,089 | ) | 7.02 | (942,553 | ) | 4.08 | |||||||||||||
Outstanding, end of year | 6,817,609 | 4.52 | 8,829,618 | 4.83 | 12,325,499 | 4.49 | ||||||||||||||||
Exercisable, end of year | 5,696,273 | 4.24 | 6,044,792 | 4.72 | 7,903,327 | 4.94 | ||||||||||||||||
Schedule of Outstanding Stock Options, Excluding Performance Based Options | Outstanding stock options, excluding performance based options, at October 31, 2014 consist of the following: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||
Range of Exercise Prices | Shares | Weighted | Weighted | Shares | Weighted | |||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Remaining | Exercise | Exercise | ||||||||||||||||||||
Life (Years) | Price | Price | ||||||||||||||||||||
$1.04 - $2.34 | 1,731,417 | 4.6 | $ | 2.08 | 1,731,417 | $ | 2.08 | |||||||||||||||
$2.35 - $4.60 | 1,631,750 | 5.2 | 3.24 | 1,565,082 | 3.25 | |||||||||||||||||
$4.61 - $6.64 | 2,379,942 | 4.8 | 5.35 | 1,758,608 | 5.32 | |||||||||||||||||
$6.65 - $8.70 | 725,000 | 8 | 7.31 | 291,666 | 7.57 | |||||||||||||||||
$8.71 - $10.75 | 206,500 | 3.1 | 9.03 | 206,500 | 9.03 | |||||||||||||||||
$10.76 - $16.36 | 143,000 | 1.1 | 14.49 | 143,000 | 14.49 | |||||||||||||||||
Total | 6,817,609 | 5 | $ | 4.52 | 5,696,273 | $ | 4.24 | |||||||||||||||
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 year ended October 31, 2014 were as follows: | |||||||||||||||||||||
Shares | Weighted Average | |||||||||||||||||||||
Grant Date | ||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||
Non-vested, beginning of year | 2,784,826 | $ | 2.95 | |||||||||||||||||||
Granted | 275,000 | 5.82 | ||||||||||||||||||||
Vested | (1,733,490 | ) | 2.37 | |||||||||||||||||||
Canceled | (205,000 | ) | 4.75 | |||||||||||||||||||
Non-vested, end of year | 1,121,336 | $ | 4.18 | |||||||||||||||||||
Schedule of Activity Related to Performance Based Options and Performance Based Restricted Stock Units | Activity related to performance based options and performance based restricted stock units for the fiscal year ended October 31, 2014 is as follows: | |||||||||||||||||||||
Performance | Performance | |||||||||||||||||||||
Options | Restricted | |||||||||||||||||||||
Stock Units | ||||||||||||||||||||||
Non-vested, October 31, 2013 | 688,000 | 11,675,782 | ||||||||||||||||||||
Granted | — | 300,000 | ||||||||||||||||||||
Exercised | (12,000 | ) | — | |||||||||||||||||||
Canceled | (36,000 | ) | (1,757,274 | ) | ||||||||||||||||||
Non-vested, October 31, 2014 | 640,000 | 10,218,508 | ||||||||||||||||||||
Schedule of Changes in Restricted Stock Units | Changes in restricted stock are as follows: | |||||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Outstanding restricted stock, beginning of year | 195,000 | 801,667 | 1,911,669 | |||||||||||||||||||
Granted | 105,000 | 105,000 | 105,000 | |||||||||||||||||||
Vested | (95,000 | ) | (685,000 | ) | (1,155,002 | ) | ||||||||||||||||
Forfeited | (30,000 | ) | (26,667 | ) | (60,000 | ) | ||||||||||||||||
Outstanding restricted stock, end of year | 175,000 | 195,000 | 801,667 | |||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||
Oct. 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 | ||||||||||
Instruments | Currency | ||||||||||||
Adjustments | |||||||||||||
Balance, October 31, 2011 | $ | (8,103 | ) | $ | 124,230 | $ | 116,127 | ||||||
Net gains reclassified to Cost of Goods Sold ("COGS") | (365 | ) | — | (365 | ) | ||||||||
Net losses reclassified to foreign currency gain | 929 | — | 929 | ||||||||||
Changes in fair value, net of tax | 13,295 | (43,574 | ) | (30,279 | ) | ||||||||
Balance, October 31, 2012 | $ | 5,756 | $ | 80,656 | $ | 86,412 | |||||||
Net gains reclassified to COGS | (8,137 | ) | — | (8,137 | ) | ||||||||
Net gains reclassified to foreign currency loss | (343 | ) | — | (343 | ) | ||||||||
Changes in fair value, net of tax | (1,867 | ) | (2,147 | ) | (4,014 | ) | |||||||
Balance, October 31, 2013 | $ | (4,591 | ) | $ | 78,509 | $ | 73,918 | ||||||
Net gains reclassified to COGS | (597 | ) | — | (597 | ) | ||||||||
Changes in fair value, net of tax | 9,281 | (25,304 | ) | (16,023 | ) | ||||||||
Balance, October 31, 2014 | $ | 4,093 | $ | 53,205 | $ | 57,298 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Summary of Provision/(Benefit) for Income Taxes from Continuing Operations | A summary of the (benefit)/provision for income taxes from continuing operations is as follows: | ||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
United States: | |||||||||||||
Federal | $ | (14,320 | ) | $ | (1,921 | ) | $ | (2,322 | ) | ||||
State | (2,676 | ) | (60 | ) | (105 | ) | |||||||
Foreign | 18,783 | 13,719 | 15,574 | ||||||||||
1,787 | 11,738 | 13,147 | |||||||||||
Deferred: | |||||||||||||
United States: | |||||||||||||
Federal | $ | 134 | $ | (1,490 | ) | $ | 152 | ||||||
State | 34 | (259 | ) | 322 | |||||||||
Foreign | (6,280 | ) | 156,231 | (9,717 | ) | ||||||||
(6,112 | ) | 154,482 | (9,243 | ) | |||||||||
(Benefit)/provision for income taxes | $ | (4,325 | ) | $ | 166,220 | $ | 3,904 | ||||||
Schedule of Effective Federal Income Tax Rates, Computed and Expected | A reconciliation of the effective income tax rate to a computed “expected” statutory federal income tax rate is as follows: | ||||||||||||
Year Ended October 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Computed “expected” statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal income tax benefit | 0.8 | % | 0.1 | % | 0.8 | % | |||||||
Foreign tax rate differential | (0.8 | )% | (9.2 | )% | (11.2 | )% | |||||||
Goodwill impairment | (18.7 | )% | — | % | — | % | |||||||
Stock-based compensation | (0.3 | )% | (2.2 | )% | (24.9 | )% | |||||||
Uncertain tax positions | (0.2 | )% | 1.2 | % | 12.5 | % | |||||||
Valuation allowance | (13.6 | )% | (250.8 | )% | (88.0 | )% | |||||||
Foreign tax exempt income | — | % | — | % | 36.8 | % | |||||||
Other | (0.9 | )% | (1.2 | )% | 9.7 | % | |||||||
Effective income tax rate | 1.3 | % | (227.1 | )% | (29.3 | )% | |||||||
Components of Net Deferred Income Taxes | The components of net deferred income tax assets/(liabilities) are as follows: | ||||||||||||
October 31, | |||||||||||||
In thousands | 2014 | 2013 | |||||||||||
Deferred income tax assets: | |||||||||||||
Allowance for doubtful accounts | $ | 6,748 | $ | 8,082 | |||||||||
Unrealized gains and losses | 9,351 | 15,342 | |||||||||||
Tax loss carry forwards | 419,584 | 385,375 | |||||||||||
Accruals and other | 80,028 | 82,768 | |||||||||||
Subtotal of deferred income tax assets | 515,711 | 491,567 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation and amortization | (8,411 | ) | (15,155 | ) | |||||||||
Intangibles | (26,766 | ) | (27,244 | ) | |||||||||
Subtotal of deferred income tax liabilities | (35,177 | ) | (42,399 | ) | |||||||||
Deferred income tax assets, net | 480,534 | 449,168 | |||||||||||
Valuation allowance | (495,938 | ) | (459,068 | ) | |||||||||
Net deferred income tax liabilities | $ | (15,404 | ) | $ | (9,900 | ) | |||||||
Summary of Unrecognized Tax Benefits (Excluding Interest and Penalties and Related Tax Carry Forwards) | The following table summarizes the activity related to the Company’s unrecognized tax benefits (excluding interest and penalties and related tax carry forwards): | ||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | |||||||||||
Balance, beginning of year | $ | 11,002 | $ | 10,787 | |||||||||
Gross increases related to current year tax positions | 1,352 | 1,255 | |||||||||||
Gross increases related to prior period tax positions | 645 | — | |||||||||||
Lapse in statute of limitation | (437 | ) | (866 | ) | |||||||||
Foreign exchange and other | (71 | ) | (174 | ) | |||||||||
Balance, end of year | $ | 12,491 | $ | 11,002 | |||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||
Outstanding Derivative Contracts Entered into Hedge Forecasted Purchases and Future Cash Receipts | As of October 31, 2014, the Company had the following outstanding derivative contracts that were entered into to hedge forecasted purchases: | ||||||||||||||||
In thousands | Commodity | Notional | Maturity | Fair Value | |||||||||||||
Amount | |||||||||||||||||
United States dollar | Inventory | $ | 243,904 | Nov 2014 – Oct 2015 | $ | 16,681 | |||||||||||
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 consolidated balance sheet as of the dates indicated: | ||||||||||||||||
Fair Value Measurements Using | Assets (Liabilities) | ||||||||||||||||
In thousands | Level 1 | Level 2 | Level 3 | at Fair Value | |||||||||||||
October 31, 2014: | |||||||||||||||||
Derivative assets: | |||||||||||||||||
Other receivables | $ | — | $ | 16,683 | $ | — | $ | 16,683 | |||||||||
Derivative liabilities: | |||||||||||||||||
Accrued liabilities | — | (2 | ) | — | (2 | ) | |||||||||||
Total fair value | $ | — | $ | 16,681 | $ | — | $ | 16,681 | |||||||||
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 | ) | |||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summary of Quarterly Financial Data | A summary of quarterly financial data (unaudited) is as follows: | ||||||||||||||||
Year Ended October 31, 2014 | |||||||||||||||||
Quarter Ended | |||||||||||||||||
In thousands, except per share amounts | January 31 | April 30 | July 31 | October 31 | |||||||||||||
Revenues, net | $ | 392,612 | $ | 397,121 | $ | 380,016 | $ | 400,650 | |||||||||
Gross profit | 199,836 | 194,354 | 181,700 | 186,951 | |||||||||||||
(Loss)/income from continuing operations attributable to Quiksilver, Inc.(1) | (22,333 | ) | (37,817 | ) | (217,802 | ) | (49,482 | ) | |||||||||
Income/(loss) from discontinued operations attributable to Quiksilver, Inc.(2) | 37,720 | (15,245 | ) | (2,282 | ) | (2,136 | ) | ||||||||||
Net income/(loss) attributable to Quiksilver, Inc.(1) | 15,387 | (53,062 | ) | (220,084 | ) | (51,618 | ) | ||||||||||
(Loss)/income per share from continuing operations attributable to Quiksilver, Inc., assuming dilution | (0.13 | ) | (0.22 | ) | (1.28 | ) | (0.29 | ) | |||||||||
Income/(loss) per share from discontinued operations attributable to Quiksilver, Inc., assuming dilution | 0.22 | (0.09 | ) | (0.01 | ) | (0.01 | ) | ||||||||||
Net income/(loss) per share attributable to Quiksilver, Inc., assuming dilution | 0.09 | (0.31 | ) | (1.29 | ) | (0.30 | ) | ||||||||||
Trade accounts receivable, net | 338,723 | 351,530 | 317,658 | 319,840 | |||||||||||||
Inventories, net | 360,146 | 304,539 | 330,959 | 278,780 | |||||||||||||
Year Ended October 31, 2013 | |||||||||||||||||
Quarter Ended | |||||||||||||||||
In thousands, except per share amounts | January 31 | April 30 | July 31 | October 31 | |||||||||||||
Revenues, net | $ | 412,189 | $ | 447,304 | $ | 475,164 | $ | 475,913 | |||||||||
Gross profit | 209,773 | 205,454 | 233,532 | 223,672 | |||||||||||||
(Loss)/income from continuing operations attributable to Quiksilver, Inc.(3) | (31,568 | ) | (32,474 | ) | 35 | (174,759 | ) | ||||||||||
Income/(loss) from discontinued operations attributable to Quiksilver, Inc.(2) | 439 | 79 | 2,036 | 3,647 | |||||||||||||
Net (loss)/income attributable to Quiksilver, Inc.(3) | (31,129 | ) | (32,395 | ) | 2,071 | (171,112 | ) | ||||||||||
(Loss)/income per share from continuing operations attributable to Quiksilver, Inc., assuming dilution(3) | (0.19 | ) | (0.19 | ) | — | (1.04 | ) | ||||||||||
(Loss)/income per share from discontinued operations attributable to Quiksilver, Inc., assuming dilution | — | — | 0.01 | 0.02 | |||||||||||||
Net (loss)/income per share attributable to Quiksilver, Inc., assuming dilution(3) | (0.19 | ) | (0.19 | ) | 0.01 | (1.01 | ) | ||||||||||
Trade accounts receivable, net | 331,193 | 372,056 | 410,593 | 411,638 | |||||||||||||
Inventories, net | 403,883 | 345,766 | 379,684 | 337,715 | |||||||||||||
-1 | The fiscal quarter ended July 31, 2014 included goodwill impairment charge of $178 million for the EMEA segment. | ||||||||||||||||
-2 | The fiscal quarters ended April 30, 2014, July 31, 2014, and October 31, 2014 include impairment charges of $15 million, $4 million, and $2 million, respectively, related to the Surfdome business. | ||||||||||||||||
-3 | The fiscal quarter ended October 31, 2013 included income tax provision of $157 million for a full valuation allowance against deferred tax assets primarily in the EMEA segment. |
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 12 Months Ended | ||||||||||||
Oct. 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, October 31, 2011 | $ | 1,076 | $ | 6,232 | $ | 7,308 | |||||||
Charged to expense | 9,721 | 3,881 | 13,602 | ||||||||||
Cash payments | (5,462 | ) | (3,257 | ) | (8,719 | ) | |||||||
Balance, October 31, 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 | 19,350 | 15,295 | 34,645 | ||||||||||
Cash payments | (19,999 | ) | (9,943 | ) | (29,942 | ) | |||||||
Balance, October 31, 2014 | $ | 11,510 | $ | 12,291 | $ | 23,801 | |||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
Summarized Results from Discontinued Operations | The operating results of discontinued operations were as follows: | ||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | 2012 | ||||||||||
Revenues, net | $ | 60,605 | $ | 83,209 | $ | 71,390 | |||||||
Income before income taxes | 23,564 | 9,766 | 11,155 | ||||||||||
Provision for income taxes | 15,915 | 3,880 | 3,653 | ||||||||||
Income from discontinued operations | 7,649 | 5,886 | 7,502 | ||||||||||
Less: net loss/(income) attributable to non-controlling interest | 10,408 | 315 | (239 | ) | |||||||||
Income from discontinued operations attributable to Quiksilver, Inc. | $ | 18,057 | $ | 6,201 | $ | 7,263 | |||||||
Components of Major Assets and Liabilities | The components of major assets and liabilities held for sale at October 31, 2014 and 2013 were as follows: | ||||||||||||
Year Ended October 31, | |||||||||||||
In thousands | 2014 | 2013 | |||||||||||
Assets: | |||||||||||||
Receivables, net | $ | — | $ | 24,229 | |||||||||
Inventories, net | 19,659 | 25,915 | |||||||||||
Goodwill | — | 16,109 | |||||||||||
Other | 3,593 | 9,388 | |||||||||||
Total assets | $ | 23,252 | $ | 75,641 | |||||||||
Liabilities: | |||||||||||||
Accounts payable | $ | 12,520 | $ | 13,039 | |||||||||
Accrued liabilities | 120 | 3,381 | |||||||||||
Other | — | 1,719 | |||||||||||
Total liabilities | $ | 12,640 | $ | 18,139 | |||||||||
Total Assets Held for Sale | Total assets held for sale as of October 31, 2014 and 2013 by geographical segment were as follows: | ||||||||||||
October 31, | |||||||||||||
In thousands | 2014 | 2013 | |||||||||||
Americas | $ | 28 | $ | 27,398 | |||||||||
EMEA | 23,224 | 47,588 | |||||||||||
APAC | — | 655 | |||||||||||
Total assets | $ | 23,252 | $ | 75,641 | |||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||||||
Oct. 31, 2014 | ||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||||||
Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||
Revenues, net | $ | 465 | $ | 339,886 | $ | 361,715 | $ | 1,026,090 | $ | (157,757 | ) | $ | 1,570,399 | |||||||||||
Cost of goods sold | 193 | 213,824 | 257,752 | 487,316 | (151,527 | ) | 807,558 | |||||||||||||||||
Gross profit | 272 | 126,062 | 103,963 | 538,774 | (6,230 | ) | 762,841 | |||||||||||||||||
Selling, general and administrative expense | 36,514 | 113,530 | 160,695 | 522,649 | (6,207 | ) | 827,181 | |||||||||||||||||
Asset impairments | 2,043 | 40,430 | 4,267 | 142,391 | — | 189,131 | ||||||||||||||||||
Operating loss | (38,285 | ) | (27,898 | ) | (60,999 | ) | (126,266 | ) | (23 | ) | (253,471 | ) | ||||||||||||
Interest expense, net | 46,464 | 2,917 | (5 | ) | 26,615 | — | 75,991 | |||||||||||||||||
Foreign currency (gain)/(loss) | (216 | ) | (269 | ) | 66 | 3,077 | — | 2,658 | ||||||||||||||||
Equity in earnings | 224,726 | 4,509 | — | — | (229,235 | ) | — | |||||||||||||||||
Loss before provision/(benefit) for income taxes | (309,259 | ) | (35,055 | ) | (61,060 | ) | (155,958 | ) | 229,212 | (332,120 | ) | |||||||||||||
Provision/(benefit) for income taxes | 119 | 584 | (17,531 | ) | 12,503 | — | (4,325 | ) | ||||||||||||||||
Loss from continuing operations | (309,378 | ) | (35,639 | ) | (43,529 | ) | (168,461 | ) | 229,212 | (327,795 | ) | |||||||||||||
Income/(loss) from discontinued operations | — | — | 29,244 | (21,595 | ) | — | 7,649 | |||||||||||||||||
Net loss | (309,378 | ) | (35,639 | ) | (14,285 | ) | (190,056 | ) | 229,212 | (320,146 | ) | |||||||||||||
Net loss attributable to non-controlling interest | — | — | — | 10,769 | — | 10,769 | ||||||||||||||||||
Net loss attributable to Quiksilver, Inc. | (309,378 | ) | (35,639 | ) | (14,285 | ) | (179,287 | ) | 229,212 | (309,377 | ) | |||||||||||||
Other comprehensive loss | (16,620 | ) | — | — | (16,620 | ) | 16,620 | (16,620 | ) | |||||||||||||||
Comprehensive loss attributable to Quiksilver, Inc. | $ | (325,998 | ) | $ | (35,639 | ) | $ | (14,285 | ) | $ | (195,907 | ) | $ | 245,832 | $ | (325,997 | ) | |||||||
Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
Year Ended October 31, 2013 | ||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||
Revenues, net | $ | 464 | $ | 422,210 | $ | 472,864 | $ | 1,158,281 | $ | (243,249 | ) | $ | 1,810,570 | |||||||||||
Cost of goods sold | — | 252,103 | 330,655 | 548,582 | (193,201 | ) | 938,139 | |||||||||||||||||
Gross profit | 464 | 170,107 | 142,209 | 609,699 | (50,048 | ) | 872,431 | |||||||||||||||||
Selling, general and administrative expense | 54,002 | 131,560 | 137,148 | 559,152 | (24,305 | ) | 857,557 | |||||||||||||||||
Asset impairments | — | 1,646 | 5,939 | 4,742 | — | 12,327 | ||||||||||||||||||
Operating (loss)/income | (53,538 | ) | 36,901 | (878 | ) | 45,805 | (25,743 | ) | 2,547 | |||||||||||||||
Interest expense, net | 39,487 | 4,359 | 1 | 27,202 | — | 71,049 | ||||||||||||||||||
Foreign currency (gain)/loss | 318 | 56 | (4 | ) | 4,319 | — | 4,689 | |||||||||||||||||
Equity in earnings | 138,111 | 2,739 | — | — | (140,850 | ) | — | |||||||||||||||||
(Loss)/income before provision/(benefit) for income taxes | (231,454 | ) | 29,747 | (875 | ) | 14,284 | 115,107 | (73,191 | ) | |||||||||||||||
Provision/(benefit) for income taxes | 422 | (665 | ) | (3,488 | ) | 169,951 | — | 166,220 | ||||||||||||||||
(Loss)/income from continuing operations | (231,876 | ) | 30,412 | 2,613 | (155,667 | ) | 115,107 | (239,411 | ) | |||||||||||||||
Income from discontinued operations | (689 | ) | — | 5,211 | 1,353 | 11 | 5,886 | |||||||||||||||||
Net (loss)/income | (232,565 | ) | 30,412 | 7,824 | (154,314 | ) | 115,118 | (233,525 | ) | |||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 960 | — | 960 | ||||||||||||||||||
Net (loss)/income attributable to Quiksilver, Inc. | (232,565 | ) | 30,412 | 7,824 | (153,354 | ) | 115,118 | (232,565 | ) | |||||||||||||||
Other comprehensive loss | (12,494 | ) | — | — | (12,494 | ) | 12,494 | (12,494 | ) | |||||||||||||||
Comprehensive (loss)/income attributable to Quiksilver, Inc. | $ | (245,059 | ) | $ | 30,412 | $ | 7,824 | $ | (165,848 | ) | $ | 127,612 | $ | (245,059 | ) | |||||||||
Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
Year Ended October 31, 2012 | ||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||
Revenues, net | $ | 469 | $ | 453,532 | $ | 537,295 | $ | 1,222,273 | $ | (271,720 | ) | $ | 1,941,849 | |||||||||||
Cost of goods sold | — | 275,179 | 358,290 | 579,152 | (212,091 | ) | 1,000,530 | |||||||||||||||||
Gross profit | 469 | 178,353 | 179,005 | 643,121 | (59,629 | ) | 941,319 | |||||||||||||||||
Selling, general and administrative expense | 56,983 | 147,684 | 151,230 | 562,946 | (30,593 | ) | 888,250 | |||||||||||||||||
Asset impairments | — | 11 | 5,151 | 2,072 | — | 7,234 | ||||||||||||||||||
Operating (loss)/income | (56,514 | ) | 30,658 | 22,624 | 78,103 | (29,036 | ) | 45,835 | ||||||||||||||||
Interest expense, net | 28,987 | 5,352 | 1 | 26,545 | — | 60,885 | ||||||||||||||||||
Foreign currency loss/(gain) | (173 | ) | (148 | ) | 96 | (1,484 | ) | — | (1,709 | ) | ||||||||||||||
Equity in earnings | (74,572 | ) | 4,674 | — | — | 69,898 | — | |||||||||||||||||
(Loss)/income before provision/(benefit) for income taxes | (10,756 | ) | 20,780 | 22,527 | 53,042 | (98,934 | ) | (13,341 | ) | |||||||||||||||
Provision/(benefit) for income taxes | — | 1,144 | (3,097 | ) | 5,857 | — | 3,904 | |||||||||||||||||
(Loss)/income from continuing operations | (10,756 | ) | 19,636 | 25,624 | 47,185 | (98,934 | ) | (17,245 | ) | |||||||||||||||
Income from discontinued operations | — | — | 5,721 | 2,080 | (299 | ) | 7,502 | |||||||||||||||||
Net (loss)/income | (10,756 | ) | 19,636 | 31,345 | 49,265 | (99,233 | ) | (9,743 | ) | |||||||||||||||
Net income attributable to non-controlling interest | — | — | — | (1,013 | ) | — | (1,013 | ) | ||||||||||||||||
Net (loss)/income attributable to Quiksilver, Inc. | (10,756 | ) | 19,636 | 31,345 | 48,252 | (99,233 | ) | (10,756 | ) | |||||||||||||||
Other comprehensive income | (29,715 | ) | — | — | (29,715 | ) | 29,715 | (29,715 | ) | |||||||||||||||
Comprehensive (loss)/income attributable to Quiksilver, Inc. | $ | (40,471 | ) | $ | 19,636 | $ | 31,345 | $ | 18,537 | $ | (69,518 | ) | $ | (40,471 | ) | |||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 158 | $ | 2,867 | $ | (2,701 | ) | $ | 46,340 | $ | — | $ | 46,664 | |||||||||||
Restricted cash | — | — | — | 4,687 | — | 4,687 | ||||||||||||||||||
Trade accounts receivable, net | — | 57,317 | 37,606 | 224,917 | — | 319,840 | ||||||||||||||||||
Other receivables | 10 | 3,402 | 1,071 | 36,644 | (280 | ) | 40,847 | |||||||||||||||||
Inventories | — | 22,006 | 70,923 | 203,305 | (17,454 | ) | 278,780 | |||||||||||||||||
Deferred income taxes | — | 21,554 | — | 4,926 | (21,554 | ) | 4,926 | |||||||||||||||||
Prepaid expenses and other current assets | 1,579 | 6,209 | 2,941 | 17,351 | — | 28,080 | ||||||||||||||||||
Intercompany balances | — | 258,808 | — | — | (258,808 | ) | — | |||||||||||||||||
Current portion of assets held for sale | — | — | 28 | 20,237 | — | 20,265 | ||||||||||||||||||
Total current assets | 1,747 | 372,163 | 109,868 | 558,407 | (298,096 | ) | 744,089 | |||||||||||||||||
Restricted cash | — | 16,514 | — | — | — | 16,514 | ||||||||||||||||||
Fixed assets, net | 20,381 | 34,408 | 21,259 | 137,720 | — | 213,768 | ||||||||||||||||||
Intangible assets, net | 6,674 | 43,815 | 1,150 | 83,871 | — | 135,510 | ||||||||||||||||||
Goodwill | — | 61,982 | 11,089 | 7,551 | — | 80,622 | ||||||||||||||||||
Other assets | 7,097 | 5,160 | 1,255 | 33,574 | — | 47,086 | ||||||||||||||||||
Deferred income taxes long-term | 30,807 | — | 2,052 | 16,088 | (32,859 | ) | 16,088 | |||||||||||||||||
Investment in subsidiaries | 725,088 | 1,525 | — | — | (726,613 | ) | — | |||||||||||||||||
Assets held for sale, net of current portion | — | — | — | 2,987 | — | 2,987 | ||||||||||||||||||
Total assets | $ | 791,794 | $ | 535,567 | $ | 146,673 | $ | 840,198 | $ | (1,057,568 | ) | $ | 1,256,664 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Lines of credit | $ | — | $ | — | $ | — | $ | 32,929 | $ | — | $ | 32,929 | ||||||||||||
Accounts payable | 4,582 | 40,942 | 22,008 | 100,775 | — | 168,307 | ||||||||||||||||||
Accrued liabilities | 17,887 | 15,092 | 7,230 | 72,492 | — | 112,701 | ||||||||||||||||||
Current portion of long-term debt | — | 600 | — | 1,832 | — | 2,432 | ||||||||||||||||||
Income taxes payable | — | — | — | 1,436 | (280 | ) | 1,156 | |||||||||||||||||
Deferred income taxes | 31,450 | — | 4,925 | 4,807 | (21,554 | ) | 19,628 | |||||||||||||||||
Intercompany balances | 179,251 | — | 39,265 | 40,292 | (258,808 | ) | — | |||||||||||||||||
Current portion of assets held for sale | — | — | 6 | 12,634 | — | 12,640 | ||||||||||||||||||
Total current liabilities | 233,170 | 56,634 | 73,434 | 267,197 | (280,642 | ) | 349,793 | |||||||||||||||||
Long-term debt | 501,416 | 22,657 | — | 269,156 | — | 793,229 | ||||||||||||||||||
Deferred income taxes long-term | — | 38,052 | — | 11,597 | (32,859 | ) | 16,790 | |||||||||||||||||
Other long-term liabilities | 1,179 | 9,800 | 7,420 | 20,943 | — | 39,342 | ||||||||||||||||||
Total liabilities | 735,765 | 127,143 | 80,854 | 568,893 | (313,501 | ) | 1,199,154 | |||||||||||||||||
Stockholders’/invested equity | 56,029 | 408,424 | 65,819 | 269,825 | (744,067 | ) | 56,030 | |||||||||||||||||
Non-controlling interest | — | — | — | 1,480 | — | 1,480 | ||||||||||||||||||
Total liabilities and equity | $ | 791,794 | $ | 535,567 | $ | 146,673 | $ | 840,198 | $ | (1,057,568 | ) | $ | 1,256,664 | |||||||||||
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 | ||||||||||||||||||
Income taxes receivable | — | — | — | — | — | — | ||||||||||||||||||
Inventories | — | 43,405 | 93,074 | 224,695 | (23,459 | ) | 337,715 | |||||||||||||||||
Deferred income taxes | — | 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: | ||||||||||||||||||||||||
Lines of credit | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
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 | 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 | 500,896 | — | — | 306,916 | — | 807,812 | ||||||||||||||||||
Deferred income taxes long-term | — | 41,039 | 2,053 | — | (23,196 | ) | 19,896 | |||||||||||||||||
Other long-term liabilities | 1,622 | 6,012 | 8,946 | 19,765 | — | 36,345 | ||||||||||||||||||
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 | ||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net loss | $ | (309,378 | ) | $ | (35,639 | ) | $ | (14,285 | ) | $ | (190,056 | ) | $ | 229,212 | $ | (320,146 | ) | |||||||
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | ||||||||||||||||||||||||
Income from discontinued operations | — | — | (29,244 | ) | 21,595 | — | (7,649 | ) | ||||||||||||||||
Depreciation and amortization | 2,696 | 10,712 | 9,752 | 28,778 | — | 51,938 | ||||||||||||||||||
Stock-based compensation | 17,260 | — | — | — | — | 17,260 | ||||||||||||||||||
Provision for doubtful accounts | — | 15,515 | 437 | 5,904 | — | 21,856 | ||||||||||||||||||
Asset impairments | 2,043 | 40,430 | 4,267 | 142,391 | — | 189,131 | ||||||||||||||||||
Equity in earnings | 224,726 | 4,509 | — | 228 | (229,235 | ) | 228 | |||||||||||||||||
Non-cash interest expense | 1,911 | 1,016 | — | 542 | — | 3,469 | ||||||||||||||||||
Deferred income taxes | — | 1,467 | — | (6,290 | ) | — | (4,823 | ) | ||||||||||||||||
Other adjustments to reconcile net loss | (375 | ) | (295 | ) | (306 | ) | (5,544 | ) | — | (6,520 | ) | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Trade accounts receivable | — | 11,120 | 10,317 | 29,170 | — | 50,607 | ||||||||||||||||||
Inventories | — | 21,131 | 21,039 | (5,096 | ) | 23 | 37,097 | |||||||||||||||||
Intercompany | 132,629 | (45,566 | ) | (128,989 | ) | 41,926 | — | — | ||||||||||||||||
Other operating assets and liabilities | (16,870 | ) | 5,948 | (18,527 | ) | (11,520 | ) | — | (40,969 | ) | ||||||||||||||
Cash provided by/(used by) operating activities of continuing operations | 54,642 | 30,348 | (145,539 | ) | 52,028 | — | (8,521 | ) | ||||||||||||||||
Cash (used by)/provided by operating activities of discontinued operations | — | (18,791 | ) | 16,805 | (16,428 | ) | — | (18,414 | ) | |||||||||||||||
Net cash provided by/(used in) operating activities | 54,642 | 11,557 | (128,734 | ) | 35,600 | — | (26,935 | ) | ||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Proceeds from sale of fixed assets | 174 | 94 | 532 | 4,850 | — | 5,650 | ||||||||||||||||||
Capital expenditures | (6,480 | ) | (12,365 | ) | (10,569 | ) | (24,001 | ) | — | (53,415 | ) | |||||||||||||
Changes in restricted cash | — | (16,514 | ) | — | (4,687 | ) | — | (21,201 | ) | |||||||||||||||
Cash used in investing activities of continuing operations | (6,306 | ) | (28,785 | ) | (10,037 | ) | (23,838 | ) | — | (68,966 | ) | |||||||||||||
Cash provided by/(used by) investing activities of discontinued operations | — | 19,000 | 58,052 | (1,938 | ) | — | 75,114 | |||||||||||||||||
Net cash (used in)/provided by investing activities | (6,306 | ) | (9,785 | ) | 48,015 | (25,776 | ) | — | 6,148 | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Borrowings on lines of credit | — | — | — | 57,413 | — | 57,413 | ||||||||||||||||||
Payments on lines of credit | — | — | — | (24,485 | ) | — | (24,485 | ) | ||||||||||||||||
Borrowings on long-term debt | — | 117,068 | — | 80,018 | — | 197,086 | ||||||||||||||||||
Payments on long-term debt | — | (95,976 | ) | — | (126,196 | ) | — | (222,172 | ) | |||||||||||||||
Payments of debt issuance costs | (160 | ) | 37 | — | — | — | (123 | ) | ||||||||||||||||
Stock option exercises and employee stock purchases | 5,902 | — | — | — | — | 5,902 | ||||||||||||||||||
Intercompany | (53,955 | ) | (22,801 | ) | 76,756 | — | — | — | ||||||||||||||||
Cash (used in)/provided by financing activities of continuing operations | (48,213 | ) | (1,672 | ) | 76,756 | (13,250 | ) | — | 13,621 | |||||||||||||||
Cash (used in)/provided by intercompany financing operations of discontinued operations | — | (966 | ) | 966 | — | — | — | |||||||||||||||||
Net cash provided by/(used in) financing activities | (48,213 | ) | (2,638 | ) | 77,722 | (13,250 | ) | — | 13,621 | |||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (3,450 | ) | — | (3,450 | ) | ||||||||||||||||
Net increase/(decrease) in cash and cash equivalents | 123 | (866 | ) | (2,997 | ) | (6,876 | ) | — | (10,616 | ) | ||||||||||||||
Cash and cash equivalents, beginning of period | 35 | 3,733 | 296 | 53,216 | — | 57,280 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 158 | $ | 2,867 | $ | (2,701 | ) | $ | 46,340 | $ | — | $ | 46,664 | |||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
Year Ended October 31, 2013 | ||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net (loss)/income | $ | (232,565 | ) | $ | 30,412 | $ | 7,824 | $ | (154,314 | ) | $ | 115,118 | $ | (233,525 | ) | |||||||||
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ||||||||||||||||||||||||
Income from discontinued operations | 689 | — | (5,211 | ) | (1,353 | ) | (11 | ) | (5,886 | ) | ||||||||||||||
Depreciation and Amortization | 2,218 | 11,556 | 6,031 | 30,153 | — | 49,958 | ||||||||||||||||||
Stock based compensation | 21,556 | — | — | — | — | 21,556 | ||||||||||||||||||
Provision for doubtful accounts | — | (129 | ) | (1,823 | ) | 7,681 | — | 5,729 | ||||||||||||||||
Asset impairments | — | 1,646 | 5,939 | 4,742 | — | 12,327 | ||||||||||||||||||
Equity in earnings | 138,111 | 2,739 | — | 613 | (140,850 | ) | 613 | |||||||||||||||||
Non-cash interest expense | 4,702 | 1,312 | — | 781 | 6,795 | |||||||||||||||||||
Deferred income taxes | — | (1,750 | ) | — | 160,847 | — | 159,097 | |||||||||||||||||
Other adjustments to reconcile net (loss)/income | 316 | 27 | (196 | ) | (1,529 | ) | — | (1,382 | ) | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Trade accounts receivable | — | (3,339 | ) | 36,610 | (34,491 | ) | — | (1,220 | ) | |||||||||||||||
Inventories | — | (11,182 | ) | 3,830 | (30,251 | ) | 25,743 | (11,860 | ) | |||||||||||||||
Other operating assets and liabilities | 8,327 | 3,080 | (20,748 | ) | 32,027 | — | 22,686 | |||||||||||||||||
Cash (used in)/provided by operating activities of continuing operations | (56,646 | ) | 34,372 | 32,256 | 14,906 | — | 24,888 | |||||||||||||||||
Cash provided by operating activities of discontinued operations | — | — | 1,515 | 789 | — | 2,304 | ||||||||||||||||||
Net cash (used in)/provided by operating activities | (56,646 | ) | 34,372 | 33,771 | 15,695 | — | 27,192 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Proceeds from sale of fixed assets | 55 | — | 12 | 792 | — | 859 | ||||||||||||||||||
Capital expenditures | (7,347 | ) | (6,606 | ) | (7,965 | ) | (30,264 | ) | — | (52,182 | ) | |||||||||||||
Cash used in investing activities of continuing operations | (7,292 | ) | (6,606 | ) | (7,953 | ) | (29,472 | ) | — | (51,323 | ) | |||||||||||||
Cash used in investing activities of discontinued operations | — | — | (268 | ) | (2,302 | ) | — | (2,570 | ) | |||||||||||||||
Net cash used in investing activities | (7,292 | ) | (6,606 | ) | (8,221 | ) | (31,774 | ) | — | (53,893 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Transactions with non-controlling interest owners | — | (58 | ) | — | — | — | (58 | ) | ||||||||||||||||
Borrowings on lines of credit | — | — | — | 6,157 | — | 6,157 | ||||||||||||||||||
Payments on lines of credit | — | — | — | (22,561 | ) | — | (22,561 | ) | ||||||||||||||||
Borrowings on long-term debt | 500,776 | 59,829 | — | 92,310 | — | 652,915 | ||||||||||||||||||
Payments on long-term debt | (400,000 | ) | (129,123 | ) | — | (53,333 | ) | — | (582,456 | ) | ||||||||||||||
Payments of debt issuance costs | (9,965 | ) | (4,312 | ) | — | — | — | (14,277 | ) | |||||||||||||||
Stock option exercises and employee stock purchases | 9,944 | — | — | — | — | 9,944 | ||||||||||||||||||
Intercompany | (37,106 | ) | 47,665 | (23,423 | ) | 12,864 | — | — | ||||||||||||||||
Cash provided by/(used in) financing activities of continuing operations | 63,649 | (25,999 | ) | (23,423 | ) | 35,437 | — | 49,664 | ||||||||||||||||
Cash provided by financing activities of discontinued operations | — | — | — | — | — | — | ||||||||||||||||||
Net cash provided by/(used in) financing activities | 63,649 | (25,999 | ) | (23,423 | ) | 35,437 | — | 49,664 | ||||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (7,506 | ) | — | (7,506 | ) | ||||||||||||||||
Net increase/(decrease) in cash and cash equivalents | (289 | ) | 1,767 | 2,127 | 11,852 | — | 15,457 | |||||||||||||||||
Cash and cash equivalents, beginning of period | 324 | 1,966 | (1,831 | ) | 41,364 | — | 41,823 | |||||||||||||||||
Cash and cash equivalents, end of period | $ | 35 | $ | 3,733 | $ | 296 | $ | 53,216 | $ | — | $ | 57,280 | ||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
Year Ended October 31, 2012 | ||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net (loss)/income | $ | (10,756 | ) | $ | 19,636 | $ | 31,345 | $ | 49,265 | $ | (99,233 | ) | $ | (9,743 | ) | |||||||||
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ||||||||||||||||||||||||
Income from discontinued operations | — | — | (5,721 | ) | (2,080 | ) | 299 | (7,502 | ) | |||||||||||||||
Depreciation and Amortization | 2,088 | 11,314 | 6,483 | 32,533 | — | 52,418 | ||||||||||||||||||
Stock based compensation | 22,552 | — | — | — | — | 22,552 | ||||||||||||||||||
Provision for doubtful accounts | — | (763 | ) | (1,307 | ) | 6,100 | — | 4,030 | ||||||||||||||||
Asset impairments | — | 11 | 5,151 | 2,072 | — | 7,234 | ||||||||||||||||||
Equity in earnings | (74,572 | ) | 4,674 | — | 282 | 69,898 | 282 | |||||||||||||||||
Non-cash interest expense | 1,490 | 1,506 | — | 689 | — | 3,685 | ||||||||||||||||||
Deferred income taxes | — | 474 | — | (9,095 | ) | — | (8,621 | ) | ||||||||||||||||
Other adjustments to reconcile net (loss)/income | (443 | ) | (94 | ) | 130 | (6,114 | ) | — | (6,521 | ) | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Trade accounts receivable | — | (7,227 | ) | (19,368 | ) | (24,155 | ) | — | (50,750 | ) | ||||||||||||||
Inventories | — | 23,444 | (41,966 | ) | (3,331 | ) | 29,036 | 7,183 | ||||||||||||||||
Other operating assets and liabilities | 5,918 | (9,589 | ) | 16,996 | (42,144 | ) | — | (28,819 | ) | |||||||||||||||
Cash (used in)/provided by operating activities of continuing operations | (53,723 | ) | 43,386 | (8,257 | ) | 4,022 | — | (14,572 | ) | |||||||||||||||
Cash provided by/(used in) operating activities of discontinued operations | — | — | (1,521 | ) | 2,554 | — | 1,033 | |||||||||||||||||
Net cash (used in)/provided by operating activities | (53,723 | ) | 43,386 | (9,778 | ) | 6,576 | — | (13,539 | ) | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Proceeds from sale of fixed assets | — | 43 | 2 | 8,153 | — | 8,198 | ||||||||||||||||||
Capital expenditures | (4,388 | ) | (13,744 | ) | (8,527 | ) | (36,684 | ) | — | (63,343 | ) | |||||||||||||
Payment for purchases of companies | — | — | — | — | — | — | ||||||||||||||||||
Cash used in investing activities of continuing operations | (4,388 | ) | (13,701 | ) | (8,525 | ) | (28,531 | ) | — | (55,145 | ) | |||||||||||||
Cash used in investing activities of discontinued operations | — | — | (309 | ) | (11,546 | ) | — | (11,855 | ) | |||||||||||||||
Net cash used in investing activities | (4,388 | ) | (13,701 | ) | (8,834 | ) | (40,077 | ) | — | (67,000 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Transactions with non-controlling interest owners | — | (11,000 | ) | — | — | — | (11,000 | ) | ||||||||||||||||
Borrowings on lines of credit | — | — | — | 15,139 | — | 15,139 | ||||||||||||||||||
Payments on lines of credit | — | — | — | (12,641 | ) | — | (12,641 | ) | ||||||||||||||||
Borrowings on long-term debt | — | 93,500 | — | 46,535 | — | 140,035 | ||||||||||||||||||
Payments on long term debt | — | (70,800 | ) | — | (42,041 | ) | — | (112,841 | ) | |||||||||||||||
Payments of Debt and Equity Issuance Costs | — | — | — | — | — | — | ||||||||||||||||||
Stock option exercises and employee stock purchases | 2,241 | — | — | — | — | 2,241 | ||||||||||||||||||
Intercompany | 56,177 | (44,391 | ) | 20,422 | (32,208 | ) | — | — | ||||||||||||||||
Cash provided by/(used in) financing activities of continuing operations | 58,418 | (32,691 | ) | 20,422 | (25,216 | ) | — | 20,933 | ||||||||||||||||
Cash provided by financing activities of discontinued operations | — | — | — | — | — | — | ||||||||||||||||||
Net cash provided by/(used in) financing activities | 58,418 | (32,691 | ) | 20,422 | (25,216 | ) | — | 20,933 | ||||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (8,324 | ) | — | (8,324 | ) | ||||||||||||||||
Net (decrease)/increase in cash and cash equivalents | 307 | (3,006 | ) | 1,810 | (67,041 | ) | — | (67,930 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | 17 | 4,972 | (3,641 | ) | 108,405 | — | 109,753 | |||||||||||||||||
Cash and cash equivalents, end of period | $ | 324 | $ | 1,966 | $ | (1,831 | ) | $ | 41,364 | $ | — | $ | 41,823 | |||||||||||
Significant_Accounting_Policie3
Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | |||
Jul. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Dec. 17, 2014 | Oct. 31, 2011 | |
Segment | ||||||
Country | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of countries in wide range of distribution channels, over 115 | 115 | |||||
Number of segments | 4 | |||||
Fixed asset impairments related to retail stores | $10,934,000 | $12,327,000 | $7,234,000 | |||
Goodwill impairments | 178,000,000 | 178,197,000 | 0 | 0 | ||
Goodwill | 80,622,000 | 261,625,000 | 257,050,000 | 268,589,000 | ||
Advertising costs | 78,000,000 | 93,000,000 | 118,000,000 | |||
EMEA [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Goodwill impairments | 178,000,000 | 0 | 0 | |||
Minimum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 2 years | |||||
Improvements, basis points range | 0.001 | |||||
Improvements, basis points range | -0.005 | |||||
Minimum [Member] | Long-Lived Assets [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Fair value inputs, annual revenue growth rate | -15.00% | |||||
Minimum [Member] | Goodwill and Intangible Assets [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Fair value inputs, annual revenue growth rate | -14.00% | |||||
Maximum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful lives | 20 years | |||||
Improvements, basis points range | 0.025 | |||||
Improvements, basis points range | 0.129 | |||||
Maximum [Member] | Long-Lived Assets [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Fair value inputs, annual revenue growth rate | 20.00% | |||||
Maximum [Member] | Goodwill and Intangible Assets [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Fair value inputs, annual revenue growth rate | 17.00% | |||||
Subsequent Event [Member] | Surfdome [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Proceeds from sale of business | $16,000,000 |
Significant_Accounting_Policie4
Significant Accounting Policies - Impairment Charges Reduced Carrying Amounts Respective Long-Lived Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Accounting Policies [Abstract] | |||
Carrying value of long-lived assets | $10,934 | $10,181 | $7,933 |
Less: impairment charges | -10,934 | -10,181 | -7,234 |
Fair value of long-lived assets | $0 | $0 | $699 |
Significant_Accounting_Policie5
Significant Accounting Policies - Revenues in Consolidated Statements of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Accounting Policies [Abstract] | |||||||||||
Product sales, net | $1,559,174 | $1,801,355 | $1,929,086 | ||||||||
Royalty and licensing income | 11,225 | 9,215 | 12,763 | ||||||||
Total | $400,650 | $380,016 | $397,121 | $392,612 | $475,913 | $475,164 | $447,304 | $412,189 | $1,570,399 | $1,810,570 | $1,941,849 |
Significant_Accounting_Policie6
Significant Accounting Policies - Reconciliation of Denominator of Each Net Loss Per Share (Detail) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Shares used in computing basic net loss per share | 170,492 | 167,255 | 164,245 | |||
Shares used in computing diluted net loss per share | 170,492 | 167,255 | 164,245 | |||
Stock Options and Restricted Stock [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Dilutive effect of stock | 0 | [1] | 0 | [1] | 0 | [1] |
Warrant [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Dilutive effect of stock | 0 | [1] | 0 | [1] | 0 | [1] |
[1] | For fiscal 2014, 2013 and 2012, the shares used in computing diluted net loss per share do not include 2,145,000, 3,862,000, and 3,103,000 dilutive stock options and shares of restricted stock, respectively, nor 17,024,000, 17,792,000, and 11,559,000 dilutive warrant shares, respectively, as the effect is anti-dilutive given the Company’s loss. For fiscal 2014, 2013 and 2012, additional stock options outstanding of 4,856,000, 5,409,000, and 10,559,000, respectively, and additional warrant shares outstanding of 8,630,000, 7,862,000, and 14,095,000, respectively, were excluded from the calculation of diluted net loss per share, as their effect would have been anti-dilutive based on the application of the treasury stock method. |
Significant_Accounting_Policie7
Significant Accounting Policies - Reconciliation of Denominator of Each Net Loss Per Share (Parenthetical) (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Stock Options and Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares outstanding excluded from the calculation of diluted EPS | 2,145 | 3,862 | 3,103 |
Additional shares outstanding were excluded from the calculation of diluted EPS | 4,856 | 5,409 | 10,559 |
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares outstanding excluded from the calculation of diluted EPS | 17,024 | 17,792 | 11,559 |
Additional shares outstanding were excluded from the calculation of diluted EPS | 8,630 | 7,862 | 14,095 |
Segment_and_Geographic_Informa2
Segment and Geographic Information - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Segment Information [Line Items] | |||
Number of segments | 4 | ||
Identifiable assets | 1,256,664 | 1,620,470 | 1,718,240 |
United States [Member] | |||
Segment Information [Line Items] | |||
Identifiable assets | 462,000 | ||
Largest customer [Member] | |||
Segment Information [Line Items] | |||
Percentage of net revenues from continuing operations | 3.00% | 3.00% | 3.00% |
Sales [Member] | United States [Member] | |||
Segment Information [Line Items] | |||
Percentage of net revenues from continuing operations | 35.00% | 38.00% | 39.00% |
Sales [Member] | France [Member] | |||
Segment Information [Line Items] | |||
Percentage of net revenues from continuing operations | 12.00% | 12.00% | 11.00% |
Sales [Member] | Other Individual Country [Member] | |||
Segment Information [Line Items] | |||
Percentage of net revenues from continuing operations | 7.00% | 7.00% | 7.00% |
Sales [Member] | Foreign Countries [Member] | |||
Segment Information [Line Items] | |||
Percentage of net revenues from continuing operations | 65.00% | 62.00% | 61.00% |
Segment_and_Geographic_Informa3
Segment and Geographic Information - Information Related to Company's Operating Segments all from Continuing Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Revenues, net: | |||||||||||
Revenues, net | $400,650 | $380,016 | $397,121 | $392,612 | $475,913 | $475,164 | $447,304 | $412,189 | $1,570,399 | $1,810,570 | $1,941,849 |
Gross profit/(loss): | |||||||||||
Gross profit | 186,951 | 181,700 | 194,354 | 199,836 | 223,672 | 233,532 | 205,454 | 209,773 | 762,841 | 872,431 | 941,319 |
SG&A expense: | |||||||||||
SG&A expense | 827,181 | 857,557 | 888,250 | ||||||||
Asset impairments: | |||||||||||
Asset impairments | 189,131 | 12,327 | 7,234 | ||||||||
Operating (loss)/income: | |||||||||||
Operating (loss)/income | -253,471 | 2,547 | 45,835 | ||||||||
Identifiable assets: | |||||||||||
Identifiable assets | 1,256,664 | 1,620,470 | 1,256,664 | 1,620,470 | 1,718,240 | ||||||
Operating Segments [Member] | Americas [Member] | |||||||||||
Revenues, net: | |||||||||||
Revenues, net | 723,427 | 893,333 | 960,719 | ||||||||
Gross profit/(loss): | |||||||||||
Gross profit | 298,910 | 370,288 | 408,361 | ||||||||
SG&A expense: | |||||||||||
SG&A expense | 317,749 | 319,736 | 349,350 | ||||||||
Asset impairments: | |||||||||||
Asset impairments | 6,672 | 9,211 | 5,267 | ||||||||
Operating (loss)/income: | |||||||||||
Operating (loss)/income | -25,511 | 41,341 | 53,744 | ||||||||
Identifiable assets: | |||||||||||
Identifiable assets | 467,920 | 581,021 | 467,920 | 581,021 | 576,179 | ||||||
Operating Segments [Member] | EMEA [Member] | |||||||||||
Revenues, net: | |||||||||||
Revenues, net | 583,650 | 631,546 | 671,991 | ||||||||
Gross profit/(loss): | |||||||||||
Gross profit | 324,542 | 358,175 | 376,929 | ||||||||
SG&A expense: | |||||||||||
SG&A expense | 310,861 | 324,346 | 322,715 | ||||||||
Asset impairments: | |||||||||||
Asset impairments | 179,608 | 3,004 | 560 | ||||||||
Operating (loss)/income: | |||||||||||
Operating (loss)/income | -165,927 | 30,825 | 53,654 | ||||||||
Identifiable assets: | |||||||||||
Identifiable assets | 510,896 | 744,936 | 510,896 | 744,936 | 718,537 | ||||||
Operating Segments [Member] | APAC [Member] | |||||||||||
Revenues, net: | |||||||||||
Revenues, net | 262,494 | 282,070 | 305,518 | ||||||||
Gross profit/(loss): | |||||||||||
Gross profit | 143,452 | 143,874 | 156,328 | ||||||||
SG&A expense: | |||||||||||
SG&A expense | 155,540 | 146,389 | 157,145 | ||||||||
Asset impairments: | |||||||||||
Asset impairments | 808 | 112 | 1,407 | ||||||||
Operating (loss)/income: | |||||||||||
Operating (loss)/income | -12,896 | -2,627 | -2,224 | ||||||||
Identifiable assets: | |||||||||||
Identifiable assets | 202,225 | 222,542 | 202,225 | 222,542 | 224,149 | ||||||
Operating Segments [Member] | Corporate Operations [Member] | |||||||||||
Revenues, net: | |||||||||||
Revenues, net | 828 | 3,621 | 3,621 | ||||||||
Gross profit/(loss): | |||||||||||
Gross profit | -4,063 | 94 | -299 | ||||||||
SG&A expense: | |||||||||||
SG&A expense | 43,031 | 67,086 | 59,040 | ||||||||
Asset impairments: | |||||||||||
Asset impairments | 2,043 | 0 | 0 | ||||||||
Operating (loss)/income: | |||||||||||
Operating (loss)/income | -49,137 | -66,992 | -59,339 | ||||||||
Identifiable assets: | |||||||||||
Identifiable assets | $75,623 | $71,971 | $75,623 | $71,971 | $199,375 |
Segment_and_Geographic_Informa4
Segment and Geographic Information - Percentages of Revenues Attributable to Company's Major Product Categories (Detail) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Revenue from External Customer [Line Items] | |||
Percentage of net revenues | 100.00% | 100.00% | 100.00% |
Apparel and accessories [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of net revenues | 75.00% | 75.00% | 73.00% |
Footwear [Member] | |||
Revenue from External Customer [Line Items] | |||
Percentage of net revenues | 25.00% | 25.00% | 27.00% |
Restricted_Cash_Details
Restricted Cash (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Cash and Cash Equivalents [Abstract] | ||
Restricted cash | $21,000,000 | |
Restricted cash, noncurrent | $16,514,000 | $0 |
Allowance_for_Doubtful_Account2
Allowance for Doubtful Accounts - Allowance for Doubtful Accounts, Includes Bad Debts as Well as Returns and Allowances (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance, beginning of year | $60,912 | $57,563 | $61,341 |
Provision for doubtful accounts | 21,856 | 5,729 | 4,030 |
Deductions | -18,777 | -2,380 | -7,808 |
Balance, end of year | $63,991 | $60,912 | $57,563 |
Inventories_Inventories_Detail
Inventories - Inventories (Detail) (USD $) | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 |
In Thousands, unless otherwise specified | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Raw materials | $3,524 | $4,725 | ||||||
Work in process | 467 | 681 | ||||||
Finished goods | 274,789 | 332,309 | ||||||
Total | $278,780 | $330,959 | $304,539 | $360,146 | $337,715 | $379,684 | $345,766 | $403,883 |
Fixed_Assets_net_Summary_of_Fi
Fixed Assets, net - Summary of Fixed Assets (Detail) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets gross | $434,656 | $480,121 |
Accumulated depreciation and amortization | -220,888 | -248,860 |
Fixed assets net | 213,768 | 231,261 |
Furniture and other equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets gross | 103,554 | 128,409 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets gross | 163,894 | 175,698 |
Computer software and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets gross | 106,238 | 110,651 |
Land use rights [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets gross | 37,409 | 39,678 |
Land and buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets gross | 10,626 | 11,482 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets gross | $12,935 | $14,203 |
Fixed_Assets_net_Additional_in
Fixed Assets, net - Additional information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Fixed asset impairments related to retail stores | $10,934 | $12,327 | $7,234 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill - Intangible Assets (Detail) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Amortization | ($30,692) | ($30,247) |
Intangible Assets, Gross | 166,202 | 164,843 |
Intangible Assets, Net | 135,510 | 134,596 |
Amortizable trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite lived intangible asset, gross amount | 21,858 | 19,810 |
Amortization | -12,508 | -11,534 |
Finite live intangible assets, net book value | 9,350 | 8,276 |
Amortizable licenses [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite lived intangible asset, gross amount | 11,817 | 12,749 |
Amortization | -11,817 | -12,749 |
Finite live intangible assets, net book value | 0 | 0 |
Other amortizable intangibles [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite lived intangible asset, gross amount | 8,406 | 8,185 |
Amortization | -6,367 | -5,964 |
Finite live intangible assets, net book value | 2,039 | 2,221 |
Non-amortizable trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite lived intangible assets | $124,121 | $124,099 |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible amortization expense | $2 | $2 | $3 |
Estimated annual amortization expense fiscal 2015 | 2 | ||
Estimated annual amortization expense fiscal 2016 | 2 | ||
Estimated annual amortization expense fiscal 2017 | 1 | ||
Estimated annual amortization expense fiscal 2018 | 1 | ||
Estimated annual amortization expense fiscal 2019 | $1 | ||
Non-Compete Agreements, Patents and Customer Relationships [Member] | Minimum [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Estimated useful life | 5 years | ||
Non-Compete Agreements, Patents and Customer Relationships [Member] | Maximum [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Estimated useful life | 18 years | ||
Trademarks and Licenses [Member] | Minimum [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Estimated useful life | 10 years | ||
Trademarks and Licenses [Member] | Maximum [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Estimated useful life | 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 | Jul. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Goodwill [Roll Forward] | |||||
Net goodwill | $261,625 | $257,050 | $268,589 | ||
Acquisitions | 174 | ||||
Impairments | -178,000 | -178,197 | 0 | 0 | |
Foreign currency translation and other | -2,806 | 4,575 | -11,713 | ||
Gross goodwill | 388,364 | 391,170 | 386,595 | 398,134 | |
Accumulated impairment losses | -307,742 | -129,545 | -129,545 | -129,545 | |
Net goodwill | 80,622 | 261,625 | 257,050 | ||
Americas [Member] | |||||
Goodwill [Roll Forward] | |||||
Net goodwill | 74,943 | 75,974 | 76,048 | ||
Acquisitions | 0 | ||||
Impairments | 0 | ||||
Foreign currency translation and other | -528 | -1,031 | -74 | ||
Gross goodwill | 74,415 | 74,943 | 75,974 | 76,048 | |
Accumulated impairment losses | 0 | 0 | 0 | 0 | |
Net goodwill | 74,415 | 74,943 | 75,974 | ||
EMEA [Member] | |||||
Goodwill [Roll Forward] | |||||
Net goodwill | 180,475 | 174,869 | 186,334 | ||
Acquisitions | 174 | ||||
Impairments | -178,197 | ||||
Foreign currency translation and other | -2,278 | 5,606 | -11,639 | ||
Gross goodwill | 178,197 | 180,475 | 174,869 | 186,334 | |
Accumulated impairment losses | -178,197 | 0 | 0 | 0 | |
Net goodwill | 0 | 180,475 | 174,869 | ||
APAC [Member] | |||||
Goodwill [Roll Forward] | |||||
Net goodwill | 6,207 | 6,207 | 6,207 | ||
Acquisitions | 0 | ||||
Impairments | |||||
Foreign currency translation and other | 0 | 0 | 0 | ||
Gross goodwill | 135,752 | 135,752 | 135,752 | 135,752 | |
Accumulated impairment losses | -129,545 | -129,545 | -129,545 | -129,545 | |
Net goodwill | $6,207 | $6,207 | $6,207 |
Debt_Summary_of_Lines_of_Credi
Debt - Summary of Lines of Credit and Long-term Debt (Detail) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Debt Instrument [Line Items] | ||
Credit facility | $69,000,000 | |
Long-term debt | 795,661,000 | |
Capital lease obligations and other borrowings - Various % | 6,124,000 | 6,449,000 |
Total debt | 828,590,000 | 831,300,000 |
Less current portion | -35,361,000 | -23,488,000 |
Long-term debt, net of current portion | 793,229,000 | 807,812,000 |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate during period | 0.80% | |
Credit facility | 32,929,000 | 0 |
EMEA Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 0 | 21,594,000 |
2017 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 8.88% | |
Long-term debt | 252,188,000 | 274,952,000 |
ABL credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 35,933,000 | 27,408,000 |
Senior secured notes 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 7.88% | |
Long-term debt | 278,834,000 | 278,612,000 |
Senior notes 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 10.00% | |
Long-term debt | $222,582,000 | $222,285,000 |
Minimum [Member] | ABL credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate during period | 2.10% | |
Maximum [Member] | ABL credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate during period | 5.60% |
Debt_Additional_Information_De
Debt - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2010 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | |
USD ($) | USD ($) | USD ($) | EMEA [Member] | EMEA [Member] | 2017 Notes [Member] | 2017 Notes [Member] | U.S. and APAC [Member] | EMEA [Member] | ABL credit facility [Member] | ABL credit facility [Member] | ABL credit facility [Member] | ABL credit facility [Member] | European [Member] | |
EUR (€) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | U.S. borrowers [Member] | 2017 Notes [Member] | |||||
USD ($) | USD ($) | |||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum cash borrowings and letters of credit | $187,000,000 | € 60,000,000 | $230,000,000 | |||||||||||
Direct borrowings | 69,000,000 | |||||||||||||
Letters of credit outstanding | 24,000,000 | 5,000,000 | ||||||||||||
Amount of availability of remaining borrowings | 74,000,000 | |||||||||||||
Amount of remaining borrowing capacity available for letters of credit | 59,000,000 | 21,000,000 | ||||||||||||
Credit Facility term | 3 years | 5 years | ||||||||||||
Lines of credit and long-term debt | 795,661,000 | 200,000,000 | ||||||||||||
Interest rate of senior notes | 8.88% | |||||||||||||
Due date of Senior Notes | 15-Dec-17 | |||||||||||||
Note redemption price rate | 104.40% | |||||||||||||
Debt issuance costs capitalized | 6,000,000 | |||||||||||||
Debt issuance costs amortization period | 7 years | |||||||||||||
Line of credit facility increase in additional borrowing | 57,413,000 | 6,157,000 | 15,139,000 | 125,000,000 | ||||||||||
Sublimit for letters of credit under Revolving Facility | 145,000,000 | |||||||||||||
LIBOR rate plus a spread, minimum percentage | 1.75% | |||||||||||||
LIBOR rate plus a spread, maximum percentage | 2.25% | |||||||||||||
Base Rate plus a spread, percentage | 0.75% | 1.75% | ||||||||||||
Fixed charge coverage ratio, minimum | 1 | |||||||||||||
Fixed charge coverage ratio, maximum | 1 | |||||||||||||
Aggregate excess availability under the Revolving Facility, amount | $15,000,000 | |||||||||||||
Aggregate excess availability under the Revolving Facility, as a percentage | 10.00% | 40.00% |
Debt_Additional_Information_1_
Debt - Additional Information 1 (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||
Oct. 31, 2014 | Apr. 30, 2014 | Jul. 16, 2013 | Jul. 31, 2013 | |
Debt Instrument [Line Items] | ||||
Lines of credit and long-term debt | $795,661,000 | |||
Capital leases and other borrowings | 6,000,000 | |||
Fair Value [Member] | ||||
Debt Instrument [Line Items] | ||||
Lines of credit and long-term debt fair value | 688,000,000 | |||
Lines of credit and long-term debt carrying value | 829,000,000 | |||
Senior secured notes 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Lines of credit and long-term debt | 280,000,000 | |||
Interest rate of senior notes | 7.88% | |||
Net proceeds from offering of Senior Secured Notes | 493,000,000 | |||
Debt issuance costs capitalized | 3,000,000 | |||
Unamortized debt issuance costs | 9,000,000 | |||
Senior notes maturity date | 1-Aug-18 | |||
Public offering price | 99.48% | |||
Percent of equity interests in subsidiaries by Issuer and Guarantors | 100.00% | |||
Senior notes 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Lines of credit and long-term debt | 225,000,000 | 225,000,000 | ||
Interest rate of senior notes | 10.00% | |||
Senior notes maturity date | 1-Aug-20 | |||
Public offering price | 98.76% | |||
Percent of equity interests in foreign subsidiaries by Issuer and Guarantors | 65.00% | |||
Brazil Subsidiary [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issued for purchase of non-controlling interest (financing activities) | $15,000,000 |
Debt_Summary_of_Principal_Paym
Debt - Summary of Principal Payments on All Long-term Debt Obligations, Including Capital Leases Due (Detail) (USD $) | Oct. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2015 | $2,432 |
2016 | 1,655 |
2017 | 1,508 |
2018 | 567,484 |
2019 | 0 |
Thereafter | 222,582 |
Total | $795,661 |
Accrued_Liabilities_Schedule_o
Accrued Liabilities - Schedule of Accrued Liabilities (Detail) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Payables and Accruals [Abstract] | ||||
Accrued employee compensation and benefits | $40,461 | $41,229 | ||
Accrued sales and payroll taxes | 19,471 | 14,738 | ||
Accrued interest | 19,673 | 22,289 | ||
Other liabilities | 33,096 | [1] | 43,289 | [1] |
Total | $112,701 | $121,545 | ||
Other liabilities maximum individual item contribution percent | 5.00% | 5.00% | ||
[1] | Other liabilities consists of various accrued expenses with no individual item accounting for more than 5% of total accrued liabilities. |
Commitments_and_Contingencies_1
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Detail) (USD $) | Oct. 31, 2014 |
In Thousands, unless otherwise specified | |
Leases [Abstract] | |
2015 | $87,883 |
2016 | 72,893 |
2017 | 57,355 |
2018 | 45,991 |
2019 | 36,934 |
Thereafter | 95,954 |
Future minimum lease payments | $397,010 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Total rent expense | $119 | $123 | $134 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Schedule of Future Estimated Minimum Payments (Detail) (USD $) | Oct. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $18,957 |
2016 | 11,917 |
2017 | 8,322 |
2018 | 3,377 |
2019 | 319 |
Thereafter | 110 |
Future estimated minimum payments | $43,002 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Mar. 31, 2014 | |
Stockholders' Equity [Line Items] | ||||
Amount of common stock available for issuance (shares) | 7,224,657 | |||
Vesting period of options | 3 years | |||
Risk-free interest rates | 2.20% | 1.70% | 1.10% | |
Volatility rates | 80.70% | 78.30% | 76.50% | |
Dividend yield | 0.00% | 0.00% | 0.00% | |
Expected lives | 6 years 8 months 6 days | 7 years 1 month 6 days | 7 years 1 month 6 days | |
Weighted average fair value of the options (usd per share) | $5.82 | $4.81 | $2.58 | |
Aggregate intrinsic value of options exercised | $4,000,000 | |||
Aggregate intrinsic value of options, outstanding | 18,000,000 | |||
Aggregate intrinsic value of options, exercisable | 18,000,000 | |||
Weighted average life of options outstanding | 5 years | |||
Weighted average life of options exercisable | 4 years 6 months | |||
Number of shares available for grant | 11,542,572 | |||
Percent of discount from the market price | 15.00% | |||
Shares issued under the plan | 332,812 | 448,896 | 461,088 | |
Proceeds from stock plans | 1,000,000 | 1,000,000 | 1,000,000 | |
Stock-based compensation | 17,260,000 | 21,556,000 | 22,552,000 | |
Common stock warrants, Number of shares entitled | 25,700,000 | |||
Common stock warrants, exercise price per share | 1.86 | |||
Performance Options [Member] | ||||
Stockholders' Equity [Line Items] | ||||
Unrecognized compensation expense | 0 | |||
Performance Based Restricted Stock Units [Member] | ||||
Stockholders' Equity [Line Items] | ||||
Unrecognized compensation expense | 0 | |||
Unrecognized compensation expense, weighted average period | 3 months 18 days | |||
Performance Option [Member] | ||||
Stockholders' Equity [Line Items] | ||||
Unrecognized compensation expense, weighted average period | 1 year 4 months 24 days | |||
Predecessor Plans [Member] | ||||
Stockholders' Equity [Line Items] | ||||
Amount of common stock available for issuance (shares) | 2,764,657 | |||
Additional Issuances [Member] | ||||
Stockholders' Equity [Line Items] | ||||
Amount of common stock available for issuance (shares) | 4,460,000 | 5,500,000 | ||
2000 Plan [Member] | ||||
Stockholders' Equity [Line Items] | ||||
Amount of common stock available for issuance (shares) | 20,080,029 | |||
Non-performance based options [Member] | ||||
Stockholders' Equity [Line Items] | ||||
Unrecognized compensation expense | 2,000,000 | |||
Unrecognized compensation expense, weighted average period | 1 year 9 months 18 days | |||
Restricted Stock [Member] | ||||
Stockholders' Equity [Line Items] | ||||
Dividend yield | 0.00% | 0.00% | ||
Weighted average fair value of the options (usd per share) | $5.16 | $4.21 | ||
Unrecognized compensation expense | $500,000 | |||
Unrecognized compensation expense, weighted average period | 1 year 4 months 24 days | |||
Number of shares available for grant | 9,658,829 | |||
Restricted Stock [Member] | Minimum [Member] | ||||
Stockholders' Equity [Line Items] | ||||
Risk-free interest rates | 0.60% | 0.50% | ||
Volatility rates | 57.70% | 56.40% | ||
Restricted Stock [Member] | Maximum [Member] | ||||
Stockholders' Equity [Line Items] | ||||
Risk-free interest rates | 0.80% | |||
Volatility rates | 88.60% |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Changes in Shares Under Options Excluding Performance Based Options (Detail) (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Shares | |||
Outstanding, beg. of year (shares) | 8,829,618 | 12,325,499 | 13,399,381 |
Granted (shares) | 275,000 | 1,045,000 | 375,000 |
Exercised (shares) | -1,058,416 | -2,985,792 | -506,329 |
Canceled/Forfeited (shares) | -1,228,593 | -1,555,089 | -942,553 |
Outstanding, end of year (shares) | 6,817,609 | 8,829,618 | 12,325,499 |
Exercisable, end of year (shares) | 5,696,273 | 6,044,792 | 7,903,327 |
Weighted Average Price | |||
Outstanding, beg. of year (usd per share) | $4.83 | $4.49 | $4.40 |
Granted (usd per share) | $8.05 | $6.68 | $3.66 |
Exercised (usd per share) | $4.27 | $2.94 | $2.23 |
Canceled/Forfeited (usd per share) | $7.67 | $7.02 | $4.08 |
Outstanding, end of year (usd per share) | $4.52 | $4.83 | $4.49 |
Exercisable, end of year (usd per share) | $4.24 | $4.72 | $4.94 |
Stockholders_Equity_Schedule_o1
Stockholders' Equity - Schedule of Outstanding Stock Options, Excluding Performance Based Options (Detail) (USD $) | 12 Months Ended | |||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Schedule Of Stock Option Activity [Line Items] | ||||
Options Outstanding, Shares | 6,817,609 | 8,829,618 | 12,325,499 | 13,399,381 |
Options Outstanding, Weighted Average Remaining Life | 5 years | |||
Options Outstanding, Weighted Average Exercise Price (usd per share) | $4.52 | $4.83 | $4.49 | $4.40 |
Option Exercisable, Shares | 5,696,273 | 6,044,792 | 7,903,327 | |
Options Exercisable, Weighted Average Exercise Price (usd per share) | $4.24 | $4.72 | $4.94 | |
Range One [Member] | ||||
Schedule Of Stock Option Activity [Line Items] | ||||
Range of Exercise Prices, Minimum | $1.04 | |||
Range of Exercise Prices, Maximum | $2.34 | |||
Options Outstanding, Shares | 1,731,417 | |||
Options Outstanding, Weighted Average Remaining Life | 4 years 7 months 6 days | |||
Options Outstanding, Weighted Average Exercise Price (usd per share) | $2.08 | |||
Option Exercisable, Shares | 1,731,417 | |||
Options Exercisable, Weighted Average Exercise Price (usd per share) | $2.08 | |||
Range Two [Member] | ||||
Schedule Of Stock Option Activity [Line Items] | ||||
Range of Exercise Prices, Minimum | $2.35 | |||
Range of Exercise Prices, Maximum | $4.60 | |||
Options Outstanding, Shares | 1,631,750 | |||
Options Outstanding, Weighted Average Remaining Life | 5 years 2 months 12 days | |||
Options Outstanding, Weighted Average Exercise Price (usd per share) | $3.24 | |||
Option Exercisable, Shares | 1,565,082 | |||
Options Exercisable, Weighted Average Exercise Price (usd per share) | $3.25 | |||
Range Three [Member] | ||||
Schedule Of Stock Option Activity [Line Items] | ||||
Range of Exercise Prices, Minimum | $4.61 | |||
Range of Exercise Prices, Maximum | $6.64 | |||
Options Outstanding, Shares | 2,379,942 | |||
Options Outstanding, Weighted Average Remaining Life | 4 years 9 months 18 days | |||
Options Outstanding, Weighted Average Exercise Price (usd per share) | $5.35 | |||
Option Exercisable, Shares | 1,758,608 | |||
Options Exercisable, Weighted Average Exercise Price (usd per share) | $5.32 | |||
Range Four [Member] | ||||
Schedule Of Stock Option Activity [Line Items] | ||||
Range of Exercise Prices, Minimum | $6.65 | |||
Range of Exercise Prices, Maximum | $8.70 | |||
Options Outstanding, Shares | 725,000 | |||
Options Outstanding, Weighted Average Remaining Life | 8 years | |||
Options Outstanding, Weighted Average Exercise Price (usd per share) | $7.31 | |||
Option Exercisable, Shares | 291,666 | |||
Options Exercisable, Weighted Average Exercise Price (usd per share) | $7.57 | |||
Range Five [Member] | ||||
Schedule Of Stock Option Activity [Line Items] | ||||
Range of Exercise Prices, Minimum | $8.71 | |||
Range of Exercise Prices, Maximum | $10.75 | |||
Options Outstanding, Shares | 206,500 | |||
Options Outstanding, Weighted Average Remaining Life | 3 years 1 month 6 days | |||
Options Outstanding, Weighted Average Exercise Price (usd per share) | $9.03 | |||
Option Exercisable, Shares | 206,500 | |||
Options Exercisable, Weighted Average Exercise Price (usd per share) | $9.03 | |||
Range Six [Member] | ||||
Schedule Of Stock Option Activity [Line Items] | ||||
Range of Exercise Prices, Minimum | $10.76 | |||
Range of Exercise Prices, Maximum | $16.36 | |||
Options Outstanding, Shares | 143,000 | |||
Options Outstanding, Weighted Average Remaining Life | 1 year 1 month 6 days | |||
Options Outstanding, Weighted Average Exercise Price (usd per share) | $14.49 | |||
Option Exercisable, Shares | 143,000 | |||
Options Exercisable, Weighted Average Exercise Price (usd per share) | $14.49 |
Stockholders_Equity_Schedule_o2
Stockholders' Equity - Schedule of Changes in Non-Vested Shares Under Option, Excluding Performance Based Options (Detail) (USD $) | 12 Months Ended |
Oct. 31, 2014 | |
Shares | |
Non-vested, beginning of year (shares) | 2,784,826 |
Granted (shares) | 275,000 |
Vested (shares) | -1,733,490 |
Canceled (shares) | -205,000 |
Non-vested, end of year (shares) | 1,121,336 |
Weighted Average Grant Date Fair Value | |
Non-vested, beginning of year (usd per share) | $2.95 |
Granted (usd per share) | $5.82 |
Vested (usd per share) | $2.37 |
Canceled (usd per share) | $4.75 |
Non-vested, end of year (usd per share) | $4.18 |
Stockholders_Equity_Schedule_o3
Stockholders' Equity - Schedule of Activity Related to Performance Based Options and Performance Based Restricted Stock Units (Detail) | 12 Months Ended |
Oct. 31, 2014 | |
Performance Options [Member] | |
Performance Restricted Stock Units [Line Items] | |
Non-vested, October 31, 2013 (shares) | 688,000 |
Granted (shares) | 0 |
Vested (shares) | -12,000 |
Canceled (shares) | -36,000 |
Non-vested, October 31, 2014 (shares) | 640,000 |
Performance Restricted Stock Units [Member] | |
Performance Restricted Stock Units [Line Items] | |
Non-vested, October 31, 2013 (shares) | 11,675,782 |
Granted (shares) | 300,000 |
Vested (shares) | 0 |
Canceled (shares) | -1,757,274 |
Non-vested, October 31, 2014 (shares) | 10,218,508 |
Stockholders_Equity_Schedule_o4
Stockholders' Equity - Schedule of Changes in Restricted Stock Units (Detail) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Schedule Of Restricted Stock Granted [Line Items] | |||
Outstanding, beg. of year (shares) | 8,829,618 | 12,325,499 | 13,399,381 |
Granted (shares) | 275,000 | 1,045,000 | 375,000 |
Forfeited (shares) | -1,228,593 | -1,555,089 | -942,553 |
Outstanding, end of year (shares) | 6,817,609 | 8,829,618 | 12,325,499 |
Restricted Stock Unit [Member] | |||
Schedule Of Restricted Stock Granted [Line Items] | |||
Outstanding, beg. of year (shares) | 195,000 | 801,667 | 1,911,669 |
Granted (shares) | 105,000 | 105,000 | 105,000 |
Vested (shares) | -95,000 | -685,000 | -1,155,002 |
Forfeited (shares) | -30,000 | -26,667 | -60,000 |
Outstanding, end of year (shares) | 175,000 | 195,000 | 801,667 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $73,918 | $86,412 | $116,127 |
Net losses (gains) reclassified to COGS | -807,558 | -938,139 | -1,000,530 |
Changes in fair value, net of tax | -16,023 | -4,014 | -30,279 |
Ending balance | 57,298 | 73,918 | 86,412 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Net losses (gains) reclassified to COGS | -597 | -8,137 | -365 |
Net losses (gains) reclassified to foreign currency gain | -343 | 929 | |
Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | -4,591 | 5,756 | -8,103 |
Changes in fair value, net of tax | 9,281 | -1,867 | 13,295 |
Ending balance | 4,093 | -4,591 | 5,756 |
Derivative Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Net losses (gains) reclassified to COGS | -597 | -8,137 | -365 |
Net losses (gains) reclassified to foreign currency gain | -343 | 929 | |
Foreign Currency Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 78,509 | 80,656 | 124,230 |
Changes in fair value, net of tax | -25,304 | -2,147 | -43,574 |
Ending balance | 53,205 | 78,509 | 80,656 |
Foreign Currency Adjustments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Net losses (gains) reclassified to COGS | 0 | 0 | 0 |
Net losses (gains) reclassified to foreign currency gain | $0 | $0 |
Income_Taxes_Summary_of_Provis
Income Taxes - Summary of Provision for Income Taxes from Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Current: | |||
Federal | ($14,320) | ($1,921) | ($2,322) |
State | -2,676 | -60 | -105 |
Foreign | 18,783 | 13,719 | 15,574 |
Current income taxes | 1,787 | 11,738 | 13,147 |
Deferred: | |||
Federal | 134 | -1,490 | 152 |
State | 34 | -259 | 322 |
Foreign | -6,280 | 156,231 | -9,717 |
Deferred income taxes | -6,112 | 154,482 | -9,243 |
(Benefit)/provision for income taxes | ($4,325) | $166,220 | $3,904 |
Income_Taxes_Schedule_of_Effec
Income Taxes - Schedule of Effective Federal Income Tax Rates, Computed and Expected (Detail) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Computed “expected†statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal income tax benefit | 0.80% | 0.10% | 0.80% |
Foreign tax rate differential | -0.80% | -9.20% | -11.20% |
Goodwill impairment | -18.70% | 0.00% | 0.00% |
Stock-based compensation | -0.30% | -2.20% | -24.90% |
Uncertain tax positions | -0.20% | 1.20% | 12.50% |
Valuation allowance | -13.60% | -250.80% | -88.00% |
Foreign tax exempt income | 0.00% | 0.00% | 36.80% |
Other | -0.90% | -1.20% | 9.70% |
Effective income tax rate | 1.30% | -227.10% | -29.30% |
Income_Taxes_Components_of_Net
Income Taxes - Components of Net Deferred Income Taxes (Detail) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ||
Allowance for doubtful accounts | $6,748 | $8,082 |
Unrealized gains and losses | 9,351 | 15,342 |
Tax loss carry forwards | 419,584 | 385,375 |
Accruals and other | 80,028 | 82,768 |
Subtotal of deferred income tax assets | 515,711 | 491,567 |
Deferred income tax liabilities: | ||
Depreciation and amortization | -8,411 | -15,155 |
Intangibles | -26,766 | -27,244 |
Subtotal of deferred income tax liabilities | -35,177 | -42,399 |
Deferred income tax assets, net | 480,534 | 449,168 |
Valuation allowance | -495,938 | -459,068 |
Net deferred income tax liabilities | ($15,404) | ($9,900) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Income Taxes [Line Items] | |||
Income/(Loss) before provision for income taxes from continuing operations | ($151,000,000) | ($5,000,000) | $32,000,000 |
Provision for income taxes from discontinued operations | 15,915,000 | 3,880,000 | 3,653,000 |
Unrecorded income tax expense due to valuation allowances | 12,000,000 | ||
Income tax expense | 495,938,000 | 459,068,000 | |
Valuation allowance | 157,000,000 | ||
Uncertain tax position liabilities (excluding interest and penalties) | 11,000,000 | ||
Liability for interest and penalties | 7,000,000 | ||
Reasonably possible outcome within the next 12 months range, reduction of liability for unrecognized tax benefits excluding penalties and interest | 10,000,000 | ||
Reasonably possible outcome within the next 12 months range, increase of liability for unrecognized tax benefits excluding penalties and interest | 4,000,000 | ||
Foreign [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carry forwards | 923,000,000 | ||
Valuation allowance | 884,000,000 | ||
2033 [Member] | Federal [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carry forwards | 330,000,000 | ||
2033 [Member] | State [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carry forwards | 391,000,000 | ||
Utilized [Member] | Foreign [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carry forwards | 870,000,000 | ||
2031 [Member] | Foreign [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carry forwards | 53,000,000 | ||
Mervin And Hawk [Member] | |||
Income Taxes [Line Items] | |||
Provision for income taxes from discontinued operations | $19,000,000 |
Income_Taxes_Summary_of_Unreco
Income Taxes - Summary of Unrecognized Tax Benefits (Excluding Interest and Penalties and Related Tax Carry Forwards) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance, beginning of year | $11,002 | $10,787 |
Gross increases related to current year tax positions | 1,352 | 1,255 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 645 | 0 |
Lapse in statute of limitation | -437 | -866 |
Foreign exchange and other | -71 | -174 |
Balance, end of year | $12,491 | $11,002 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Postemployment Benefits [Abstract] | |||
Compensation expense related to the French Profit Sharing Plan | $0.30 | $0.50 | $0.40 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Losses relating to hedging transactions, net of tax | $4 | ||
Estimate of time to transfer | 12 months | ||
Reclassified into earnings net gain (losses) relating to derivative contracts | $1 | $8 | ($1) |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Outstanding Derivative Contracts Entered into Hedge Forecasted Purchases and Future Cash Receipts (Detail) (Inventory Commodity [Member], United States dollar [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Oct. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Notional Amount | 243,904 |
Fair Value | 16,681 |
Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Maturity | 2014-11 |
Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Maturity | 2015-10 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Fair Values of Assets and Liabilities Measured and Recognized at Fair Value (Detail) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative liabilities: | ||
Derivative liabilities | ($19,673) | ($22,289) |
Fair Value, Measurements, Recurring [Member] | ||
Derivative liabilities: | ||
Total fair value | 16,681 | -905 |
Fair Value, Measurements, Recurring [Member] | Other receivables [Member] | ||
Derivative assets: | ||
Derivative assets | 16,683 | 2,026 |
Fair Value, Measurements, Recurring [Member] | Other assets [Member] | ||
Derivative assets: | ||
Derivative assets | 382 | |
Fair Value, Measurements, Recurring [Member] | Accrued liabilities [Member] | ||
Derivative liabilities: | ||
Derivative liabilities | -2 | -3,313 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Derivative liabilities: | ||
Total fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Other receivables [Member] | ||
Derivative assets: | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Other assets [Member] | ||
Derivative assets: | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Accrued liabilities [Member] | ||
Derivative liabilities: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Derivative liabilities: | ||
Total fair value | 16,681 | -905 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Other receivables [Member] | ||
Derivative assets: | ||
Derivative assets | 16,683 | 2,026 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Other assets [Member] | ||
Derivative assets: | ||
Derivative assets | 382 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Accrued liabilities [Member] | ||
Derivative liabilities: | ||
Derivative liabilities | -2 | -3,313 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Derivative liabilities: | ||
Total fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Other receivables [Member] | ||
Derivative assets: | ||
Derivative assets | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Other assets [Member] | ||
Derivative assets: | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Accrued liabilities [Member] | ||
Derivative liabilities: | ||
Derivative liabilities | $0 | $0 |
Quarterly_Financial_Data_Summa
Quarterly Financial Data - Summary of Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Revenues, net | $400,650,000 | $380,016,000 | $397,121,000 | $392,612,000 | $475,913,000 | $475,164,000 | $447,304,000 | $412,189,000 | $1,570,399,000 | $1,810,570,000 | $1,941,849,000 | ||||||||
Gross profit | 186,951,000 | 181,700,000 | 194,354,000 | 199,836,000 | 223,672,000 | 233,532,000 | 205,454,000 | 209,773,000 | 762,841,000 | 872,431,000 | 941,319,000 | ||||||||
(Loss)/income from continuing operations attributable to Quiksilver, Inc. | -49,482,000 | [1] | -217,802,000 | [1] | -37,817,000 | [1] | -22,333,000 | [1] | -174,759,000 | [2] | 35,000 | [2] | -32,474,000 | [2] | -31,568,000 | [2] | -327,434,000 | -238,766,000 | -18,019,000 |
Income/(loss) from discontinued operations attributable to Quiksilver, Inc. | -2,136,000 | [3] | -2,282,000 | [3] | -15,245,000 | [3] | 37,720,000 | [3] | 3,647,000 | [3] | 2,036,000 | [3] | 79,000 | [3] | 439,000 | [3] | -327,795,000 | -239,411,000 | -17,245,000 |
Net loss attributable to Quiksilver, Inc. | -51,618,000 | [1] | -220,084,000 | [1] | -53,062,000 | [1] | 15,387,000 | [1] | -171,112,000 | [2] | 2,071,000 | [2] | -32,395,000 | [2] | -31,129,000 | [2] | -309,377,000 | -232,565,000 | -10,756,000 |
(Loss)/income per share from continuing operations attributable to Quiksilver, Inc., assuming dilution (usd per share) | ($0.29) | ($1.28) | ($0.22) | ($0.13) | ($1.04) | [2] | $0 | [2] | ($0.19) | [2] | ($0.19) | [2] | ($1.92) | ($1.43) | ($0.11) | ||||
(Loss)/income per share from discontinued operations attributable to Quiksilver, Inc., assuming dilution (usd per share) | ($0.01) | ($0.01) | ($0.09) | $0.22 | $0.02 | $0.01 | $0 | $0 | $0.11 | $0.04 | $0.04 | ||||||||
Net loss per share attributable to Quiksilver, Inc., assuming dilution (usd per share) | ($0.30) | ($1.29) | ($0.31) | $0.09 | ($1.01) | [2] | $0.01 | [2] | ($0.19) | [2] | ($0.19) | [2] | ($1.81) | ($1.39) | ($0.07) | ||||
Trade accounts receivable, net | 319,840,000 | 317,658,000 | 351,530,000 | 338,723,000 | 411,638,000 | 410,593,000 | 372,056,000 | 331,193,000 | 319,840,000 | 411,638,000 | |||||||||
Inventories | 278,780,000 | 330,959,000 | 304,539,000 | 360,146,000 | 337,715,000 | 379,684,000 | 345,766,000 | 403,883,000 | 278,780,000 | 337,715,000 | |||||||||
Goodwill impairment charge | 178,000,000 | 178,197,000 | 0 | 0 | |||||||||||||||
Asset impairment charges | 2,000,000 | 4,000,000 | 15,000,000 | ||||||||||||||||
Provision/(benefit) for income taxes | -4,325,000 | 166,220,000 | 3,904,000 | ||||||||||||||||
Deferred Tax Assets, Valuation Allowance | 495,938,000 | 459,068,000 | 495,938,000 | 459,068,000 | |||||||||||||||
Valuation allowance | $157,000,000 | $157,000,000 | |||||||||||||||||
[1] | The fiscal quarter ended July 31, 2014 included goodwill impairment charge of $178 million for the EMEA segment. | ||||||||||||||||||
[2] | The fiscal quarter ended October 31, 2013 included income tax provision of $157 million for a full valuation allowance against deferred tax assets primarily in the EMEA segment. | ||||||||||||||||||
[3] | The fiscal quarters ended April 30, 2014, July 31, 2014, and October 31, 2014 include impairment charges of $15 million, $4 million, and $2 million, respectively, related to the Surfdome business. |
Restructuring_Charges_Activity
Restructuring Charges - Activity and Liability Balances (Detail) (Restructuring Plan Two Thousand Thirteen And Two Thousand Eleven [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | $19,098 | $12,191 | $7,308 |
Charged to expense | 34,645 | 28,509 | 13,602 |
Cash payments | -29,942 | -21,010 | -8,719 |
Adjustments | -592 | ||
Ending Balance | 23,801 | 19,098 | 12,191 |
Workforce [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 12,159 | 5,335 | 1,076 |
Charged to expense | 19,350 | 22,671 | 9,721 |
Cash payments | -19,999 | -15,847 | -5,462 |
Adjustments | 0 | ||
Ending Balance | 11,510 | 12,159 | 5,335 |
Facility & Other [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 6,939 | 6,856 | 6,232 |
Charged to expense | 15,295 | 5,838 | 3,881 |
Cash payments | -9,943 | -5,163 | -3,257 |
Adjustments | -592 | ||
Ending Balance | $12,291 | $6,939 | $6,856 |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Americas [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charged to expense | $25,000,000 | |
EMEA [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charged to expense | 7,000,000 | |
APAC [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charged to expense | 1,000,000 | |
Corporate Operations [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charged to expense | 2,000,000 | |
Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Charged to expense | 2,000,000 | |
Inventory write downs | 4,000,000 | |
Severance charges | $3,000,000 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Nov. 30, 2013 | Jan. 31, 2014 | Dec. 17, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale of discontinued operations | $29,742,000 | |||||
Provision for income taxes | 15,915,000 | 3,880,000 | 3,653,000 | |||
Asset impairment charges | 189,131,000 | 12,327,000 | 7,234,000 | |||
Mervin [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of business | 58,000,000 | |||||
Hawk Designs Inc [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of business | 19,000,000 | |||||
Gain on sale of discontinued operations | 30,000,000 | |||||
Surfdome [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Provision for income taxes | -3,000,000 | |||||
Mervin And Hawk [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Provision for income taxes | 19,000,000 | |||||
Subsequent Event [Member] | Surfdome [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of business | 16,000,000 | |||||
Discontinued Operations [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Asset impairment charges | $21,000,000 |
Discontinued_Operations_Summar
Discontinued Operations - Summarized Results from Discontinued Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Discontinued Operations and Disposal Groups [Abstract] | |||
Revenues, net | $60,605 | $83,209 | $71,390 |
Income before income taxes | 23,564 | 9,766 | 11,155 |
Provision for income taxes | 15,915 | 3,880 | 3,653 |
Income from discontinued operations | 7,649 | 5,886 | 7,502 |
Less: net loss/(income) attributable to non-controlling interest | 10,408 | 315 | -239 |
Income from discontinued operations attributable to Quiksilver, Inc. | $18,057 | $6,201 | $7,263 |
Discontinued_Operations_Compon
Discontinued Operations - Components of Major Assets and Liabilities (Detail) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Receivables, net | $0 | $24,229 |
Inventories, net | 19,659 | 25,915 |
Goodwill | 0 | 16,109 |
Other | 3,593 | 9,388 |
Total assets | 23,252 | 75,641 |
Liabilities: | ||
Accounts payable | 12,520 | 13,039 |
Accrued liabilities | 120 | 3,381 |
Other | 0 | 1,719 |
Total liabilities | $12,640 | $18,139 |
Discontinued_Operations_Total_
Discontinued Operations - Total Assets Held for Sale (Detail) (USD $) | Oct. 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 | $23,252 | $75,641 |
Americas [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets held for sale | 28 | 27,398 |
EMEA [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets held for sale | 23,224 | 47,588 |
APAC [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets held for sale | $0 | $655 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information - Additional Information (Detail) (USD $) | Oct. 31, 2014 | Jul. 31, 2013 | Jul. 16, 2013 |
Debt Instrument [Line Items] | |||
Notes issued, aggregate principal amount | $795,661,000 | ||
Senior notes 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Notes issued, aggregate principal amount | $225,000,000 | $225,000,000 |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information - Condensed Consolidating Statement of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | ||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Revenues, net | $400,650 | $380,016 | $397,121 | $392,612 | $475,913 | $475,164 | $447,304 | $412,189 | $1,570,399 | $1,810,570 | $1,941,849 | ||||||||
Cost of goods sold | 807,558 | 938,139 | 1,000,530 | ||||||||||||||||
Gross profit | 186,951 | 181,700 | 194,354 | 199,836 | 223,672 | 233,532 | 205,454 | 209,773 | 762,841 | 872,431 | 941,319 | ||||||||
Selling, general and administrative expense | 827,181 | 857,557 | 888,250 | ||||||||||||||||
Asset impairments | 189,131 | 12,327 | 7,234 | ||||||||||||||||
Operating loss | -253,471 | 2,547 | 45,835 | ||||||||||||||||
Interest expense, net | 75,991 | 71,049 | 60,885 | ||||||||||||||||
Foreign currency (gain)/(loss) | 2,658 | 4,689 | -1,709 | ||||||||||||||||
Equity in earnings | 0 | 0 | 0 | ||||||||||||||||
Loss before (benefit)/provision for income taxes | -332,120 | -73,191 | -13,341 | ||||||||||||||||
Provision/(benefit) for income taxes | -4,325 | 166,220 | 3,904 | ||||||||||||||||
Loss from continuing operations | -2,136 | [1] | -2,282 | [1] | -15,245 | [1] | 37,720 | [1] | 3,647 | [1] | 2,036 | [1] | 79 | [1] | 439 | [1] | -327,795 | -239,411 | -17,245 |
Income/(loss) from discontinued operations | 7,649 | 5,886 | 7,502 | ||||||||||||||||
Net loss | -320,146 | -233,525 | -9,743 | ||||||||||||||||
Net loss attributable to non-controlling interest | 10,769 | 960 | -1,013 | ||||||||||||||||
Net loss attributable to Quiksilver, Inc. | -51,618 | [2] | -220,084 | [2] | -53,062 | [2] | 15,387 | [2] | -171,112 | [3] | 2,071 | [3] | -32,395 | [3] | -31,129 | [3] | -309,377 | -232,565 | -10,756 |
Other comprehensive loss | -16,620 | -12,494 | -29,715 | ||||||||||||||||
Comprehensive loss attributable to Quiksilver, Inc. | -325,997 | -245,059 | -40,471 | ||||||||||||||||
Quiksilver, Inc. [Member] | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Revenues, net | 465 | 464 | 469 | ||||||||||||||||
Cost of goods sold | 193 | 0 | 0 | ||||||||||||||||
Gross profit | 272 | 464 | 469 | ||||||||||||||||
Selling, general and administrative expense | 36,514 | 54,002 | 56,983 | ||||||||||||||||
Asset impairments | 2,043 | 0 | 0 | ||||||||||||||||
Operating loss | -38,285 | -53,538 | -56,514 | ||||||||||||||||
Interest expense, net | 46,464 | 39,487 | 28,987 | ||||||||||||||||
Foreign currency (gain)/(loss) | -216 | 318 | -173 | ||||||||||||||||
Equity in earnings | 224,726 | 138,111 | -74,572 | ||||||||||||||||
Loss before (benefit)/provision for income taxes | -309,259 | -231,454 | -10,756 | ||||||||||||||||
Provision/(benefit) for income taxes | 119 | 422 | 0 | ||||||||||||||||
Loss from continuing operations | -309,378 | -231,876 | -10,756 | ||||||||||||||||
Income/(loss) from discontinued operations | 0 | -689 | 0 | ||||||||||||||||
Net loss | -309,378 | -232,565 | -10,756 | ||||||||||||||||
Net loss attributable to non-controlling interest | 0 | 0 | 0 | ||||||||||||||||
Net loss attributable to Quiksilver, Inc. | -309,378 | -232,565 | -10,756 | ||||||||||||||||
Other comprehensive loss | -16,620 | -12,494 | -29,715 | ||||||||||||||||
Comprehensive loss attributable to Quiksilver, Inc. | -325,998 | -245,059 | -40,471 | ||||||||||||||||
QS Wholesale, Inc. [Member] | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Revenues, net | 339,886 | 422,210 | 453,532 | ||||||||||||||||
Cost of goods sold | 213,824 | 252,103 | 275,179 | ||||||||||||||||
Gross profit | 126,062 | 170,107 | 178,353 | ||||||||||||||||
Selling, general and administrative expense | 113,530 | 131,560 | 147,684 | ||||||||||||||||
Asset impairments | 40,430 | 1,646 | 11 | ||||||||||||||||
Operating loss | -27,898 | 36,901 | 30,658 | ||||||||||||||||
Interest expense, net | 2,917 | 4,359 | 5,352 | ||||||||||||||||
Foreign currency (gain)/(loss) | -269 | 56 | -148 | ||||||||||||||||
Equity in earnings | 4,509 | 2,739 | 4,674 | ||||||||||||||||
Loss before (benefit)/provision for income taxes | -35,055 | 29,747 | 20,780 | ||||||||||||||||
Provision/(benefit) for income taxes | 584 | -665 | 1,144 | ||||||||||||||||
Loss from continuing operations | -35,639 | 30,412 | 19,636 | ||||||||||||||||
Income/(loss) from discontinued operations | 0 | 0 | 0 | ||||||||||||||||
Net loss | -35,639 | 30,412 | 19,636 | ||||||||||||||||
Net loss attributable to non-controlling interest | 0 | 0 | 0 | ||||||||||||||||
Net loss attributable to Quiksilver, Inc. | -35,639 | 30,412 | 19,636 | ||||||||||||||||
Other comprehensive loss | 0 | 0 | 0 | ||||||||||||||||
Comprehensive loss attributable to Quiksilver, Inc. | -35,639 | 30,412 | 19,636 | ||||||||||||||||
Guarantor Subsidiaries [Member] | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Revenues, net | 361,715 | 472,864 | 537,295 | ||||||||||||||||
Cost of goods sold | 257,752 | 330,655 | 358,290 | ||||||||||||||||
Gross profit | 103,963 | 142,209 | 179,005 | ||||||||||||||||
Selling, general and administrative expense | 160,695 | 137,148 | 151,230 | ||||||||||||||||
Asset impairments | 4,267 | 5,939 | 5,151 | ||||||||||||||||
Operating loss | -60,999 | -878 | 22,624 | ||||||||||||||||
Interest expense, net | -5 | 1 | 1 | ||||||||||||||||
Foreign currency (gain)/(loss) | 66 | -4 | 96 | ||||||||||||||||
Equity in earnings | 0 | 0 | 0 | ||||||||||||||||
Loss before (benefit)/provision for income taxes | -61,060 | -875 | 22,527 | ||||||||||||||||
Provision/(benefit) for income taxes | -17,531 | -3,488 | -3,097 | ||||||||||||||||
Loss from continuing operations | -43,529 | 2,613 | 25,624 | ||||||||||||||||
Income/(loss) from discontinued operations | 29,244 | 5,211 | 5,721 | ||||||||||||||||
Net loss | -14,285 | 7,824 | 31,345 | ||||||||||||||||
Net loss attributable to non-controlling interest | 0 | 0 | 0 | ||||||||||||||||
Net loss attributable to Quiksilver, Inc. | -14,285 | 7,824 | 31,345 | ||||||||||||||||
Other comprehensive loss | 0 | 0 | 0 | ||||||||||||||||
Comprehensive loss attributable to Quiksilver, Inc. | -14,285 | 7,824 | 31,345 | ||||||||||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Revenues, net | 1,026,090 | 1,158,281 | 1,222,273 | ||||||||||||||||
Cost of goods sold | 487,316 | 548,582 | 579,152 | ||||||||||||||||
Gross profit | 538,774 | 609,699 | 643,121 | ||||||||||||||||
Selling, general and administrative expense | 522,649 | 559,152 | 562,946 | ||||||||||||||||
Asset impairments | 142,391 | 4,742 | 2,072 | ||||||||||||||||
Operating loss | -126,266 | 45,805 | 78,103 | ||||||||||||||||
Interest expense, net | 26,615 | 27,202 | 26,545 | ||||||||||||||||
Foreign currency (gain)/(loss) | 3,077 | 4,319 | -1,484 | ||||||||||||||||
Equity in earnings | 0 | 0 | 0 | ||||||||||||||||
Loss before (benefit)/provision for income taxes | -155,958 | 14,284 | 53,042 | ||||||||||||||||
Provision/(benefit) for income taxes | 12,503 | 169,951 | 5,857 | ||||||||||||||||
Loss from continuing operations | -168,461 | -155,667 | 47,185 | ||||||||||||||||
Income/(loss) from discontinued operations | -21,595 | 1,353 | 2,080 | ||||||||||||||||
Net loss | -190,056 | -154,314 | 49,265 | ||||||||||||||||
Net loss attributable to non-controlling interest | 10,769 | 960 | -1,013 | ||||||||||||||||
Net loss attributable to Quiksilver, Inc. | -179,287 | -153,354 | 48,252 | ||||||||||||||||
Other comprehensive loss | -16,620 | -12,494 | -29,715 | ||||||||||||||||
Comprehensive loss attributable to Quiksilver, Inc. | -195,907 | -165,848 | 18,537 | ||||||||||||||||
Eliminations [Member] | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Revenues, net | -157,757 | -243,249 | -271,720 | ||||||||||||||||
Cost of goods sold | -151,527 | -193,201 | -212,091 | ||||||||||||||||
Gross profit | -6,230 | -50,048 | -59,629 | ||||||||||||||||
Selling, general and administrative expense | -6,207 | -24,305 | -30,593 | ||||||||||||||||
Asset impairments | 0 | 0 | 0 | ||||||||||||||||
Operating loss | -23 | -25,743 | -29,036 | ||||||||||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||||||||||
Foreign currency (gain)/(loss) | 0 | 0 | 0 | ||||||||||||||||
Equity in earnings | -229,235 | -140,850 | 69,898 | ||||||||||||||||
Loss before (benefit)/provision for income taxes | 229,212 | 115,107 | -98,934 | ||||||||||||||||
Provision/(benefit) for income taxes | 0 | 0 | 0 | ||||||||||||||||
Loss from continuing operations | 229,212 | 115,107 | -98,934 | ||||||||||||||||
Income/(loss) from discontinued operations | 0 | 11 | -299 | ||||||||||||||||
Net loss | 229,212 | 115,118 | -99,233 | ||||||||||||||||
Net loss attributable to non-controlling interest | 0 | 0 | 0 | ||||||||||||||||
Net loss attributable to Quiksilver, Inc. | 229,212 | 115,118 | -99,233 | ||||||||||||||||
Other comprehensive loss | 16,620 | 12,494 | 29,715 | ||||||||||||||||
Comprehensive loss attributable to Quiksilver, Inc. | $245,832 | $127,612 | ($69,518) | ||||||||||||||||
[1] | The fiscal quarters ended April 30, 2014, July 31, 2014, and October 31, 2014 include impairment charges of $15 million, $4 million, and $2 million, respectively, related to the Surfdome business. | ||||||||||||||||||
[2] | The fiscal quarter ended July 31, 2014 included goodwill impairment charge of $178 million for the EMEA segment. | ||||||||||||||||||
[3] | The fiscal quarter ended October 31, 2013 included income tax provision of $157 million for a full valuation allowance against deferred tax assets primarily in the EMEA segment. |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Detail) (USD $) | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
In Thousands, unless otherwise specified | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $46,664 | $57,280 | $41,823 | $109,753 | ||||||
Restricted cash | 4,687 | 0 | ||||||||
Trade accounts receivable, net | 319,840 | 317,658 | 351,530 | 338,723 | 411,638 | 410,593 | 372,056 | 331,193 | ||
Other receivables | 40,847 | 23,306 | ||||||||
Income taxes receivable | 0 | |||||||||
Inventories | 278,780 | 330,959 | 304,539 | 360,146 | 337,715 | 379,684 | 345,766 | 403,883 | ||
Deferred income taxes-current | 4,926 | 9,997 | ||||||||
Prepaid expenses and other current assets | 28,080 | 24,124 | ||||||||
Intercompany balances | 0 | 0 | ||||||||
Current portion of assets held for sale | 20,265 | 51,196 | ||||||||
Total current assets | 744,089 | 915,256 | ||||||||
Restricted cash, noncurrent | 16,514 | 0 | ||||||||
Fixed assets, net | 213,768 | 231,261 | ||||||||
Intangible assets, net | 135,510 | 134,596 | ||||||||
Goodwill | 80,622 | 261,625 | 257,050 | 268,589 | ||||||
Other assets | 47,086 | 53,287 | ||||||||
Deferred income taxes long-term | 16,088 | 0 | ||||||||
Investment in subsidiaries | 0 | 0 | ||||||||
Assets held for sale, net of current portion | 2,987 | 24,445 | ||||||||
Total assets | 1,256,664 | 1,620,470 | 1,718,240 | |||||||
Current liabilities: | ||||||||||
Lines of credit | 32,929 | 0 | ||||||||
Accounts payable | 168,307 | 201,675 | ||||||||
Accrued liabilities | 112,701 | 121,545 | ||||||||
Current portion of long-term debt | 2,432 | 23,488 | ||||||||
Income taxes payable | 1,156 | 3,912 | ||||||||
Deferred income taxes-current | 19,628 | 0 | ||||||||
Intercompany balances | 0 | 0 | ||||||||
Current portion of assets held for sale | 12,640 | 16,420 | ||||||||
Total current liabilities | 349,793 | 367,040 | ||||||||
Long-term debt | 793,229 | 807,812 | ||||||||
Deferred income taxes long-term | 16,790 | 19,896 | ||||||||
Other long-term liabilities | 39,342 | 36,345 | ||||||||
Assets held for sale, net of current portion | 0 | 1,719 | ||||||||
Total liabilities | 1,199,154 | 1,232,812 | ||||||||
Stockholders’/invested equity | 56,030 | 369,706 | ||||||||
Non-controlling interest | 1,480 | 17,952 | ||||||||
Total liabilities and equity | 1,256,664 | 1,620,470 | ||||||||
Quiksilver, Inc. [Member] | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | 158 | 35 | 324 | 17 | ||||||
Restricted cash | 0 | |||||||||
Trade accounts receivable, net | 0 | 0 | ||||||||
Other receivables | 10 | 19 | ||||||||
Income taxes receivable | 0 | |||||||||
Inventories | 0 | 0 | ||||||||
Deferred income taxes-current | 0 | 0 | ||||||||
Prepaid expenses and other current assets | 1,579 | 3,372 | ||||||||
Intercompany balances | 0 | 0 | ||||||||
Current portion of assets held for sale | 0 | 0 | ||||||||
Total current assets | 1,747 | 3,426 | ||||||||
Restricted cash, noncurrent | 0 | |||||||||
Fixed assets, net | 20,381 | 21,378 | ||||||||
Intangible assets, net | 6,674 | 4,487 | ||||||||
Goodwill | 0 | 0 | ||||||||
Other assets | 7,097 | 8,025 | ||||||||
Deferred income taxes long-term | 30,807 | 21,085 | ||||||||
Investment in subsidiaries | 725,088 | 949,814 | ||||||||
Assets held for sale, net of current portion | 0 | 0 | ||||||||
Total assets | 791,794 | 1,008,215 | ||||||||
Current liabilities: | ||||||||||
Lines of credit | 0 | 0 | ||||||||
Accounts payable | 4,582 | 4,222 | ||||||||
Accrued liabilities | 17,887 | 17,900 | ||||||||
Current portion of long-term debt | 0 | 0 | ||||||||
Income taxes payable | 0 | 0 | ||||||||
Deferred income taxes-current | 31,450 | 20,365 | ||||||||
Intercompany balances | 179,251 | 92,815 | ||||||||
Current portion of assets held for sale | 0 | 689 | ||||||||
Total current liabilities | 233,170 | 135,991 | ||||||||
Long-term debt | 501,416 | 500,896 | ||||||||
Deferred income taxes long-term | 0 | 0 | ||||||||
Other long-term liabilities | 1,179 | 1,622 | ||||||||
Assets held for sale, net of current portion | 0 | |||||||||
Total liabilities | 735,765 | 638,509 | ||||||||
Stockholders’/invested equity | 56,029 | 369,706 | ||||||||
Non-controlling interest | 0 | 0 | ||||||||
Total liabilities and equity | 791,794 | 1,008,215 | ||||||||
QS Wholesale, Inc. [Member] | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | 2,867 | 3,733 | 1,966 | 4,972 | ||||||
Restricted cash | 0 | |||||||||
Trade accounts receivable, net | 57,317 | 83,991 | ||||||||
Other receivables | 3,402 | 5,613 | ||||||||
Income taxes receivable | 0 | |||||||||
Inventories | 22,006 | 43,405 | ||||||||
Deferred income taxes-current | 21,554 | 24,624 | ||||||||
Prepaid expenses and other current assets | 6,209 | 3,271 | ||||||||
Intercompany balances | 258,808 | 173,547 | ||||||||
Current portion of assets held for sale | 0 | 0 | ||||||||
Total current assets | 372,163 | 338,184 | ||||||||
Restricted cash, noncurrent | 16,514 | |||||||||
Fixed assets, net | 34,408 | 35,152 | ||||||||
Intangible assets, net | 43,815 | 44,596 | ||||||||
Goodwill | 61,982 | 103,880 | ||||||||
Other assets | 5,160 | 5,654 | ||||||||
Deferred income taxes long-term | 0 | 0 | ||||||||
Investment in subsidiaries | 1,525 | 8,795 | ||||||||
Assets held for sale, net of current portion | 0 | 0 | ||||||||
Total assets | 535,567 | 536,261 | ||||||||
Current liabilities: | ||||||||||
Lines of credit | 0 | 0 | ||||||||
Accounts payable | 40,942 | 51,283 | ||||||||
Accrued liabilities | 15,092 | 9,921 | ||||||||
Current portion of long-term debt | 600 | 0 | ||||||||
Income taxes payable | 0 | 121 | ||||||||
Deferred income taxes-current | 0 | 0 | ||||||||
Intercompany balances | 0 | 0 | ||||||||
Current portion of assets held for sale | 0 | 0 | ||||||||
Total current liabilities | 56,634 | 61,325 | ||||||||
Long-term debt | 22,657 | 0 | ||||||||
Deferred income taxes long-term | 38,052 | 41,039 | ||||||||
Other long-term liabilities | 9,800 | 6,012 | ||||||||
Assets held for sale, net of current portion | 0 | |||||||||
Total liabilities | 127,143 | 108,376 | ||||||||
Stockholders’/invested equity | 408,424 | 427,885 | ||||||||
Non-controlling interest | 0 | 0 | ||||||||
Total liabilities and equity | 535,567 | 536,261 | ||||||||
Guarantor Subsidiaries [Member] | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | -2,701 | 296 | -1,831 | -3,641 | ||||||
Restricted cash | 0 | |||||||||
Trade accounts receivable, net | 37,606 | 48,230 | ||||||||
Other receivables | 1,071 | 2,007 | ||||||||
Income taxes receivable | 0 | |||||||||
Inventories | 70,923 | 93,074 | ||||||||
Deferred income taxes-current | 0 | 0 | ||||||||
Prepaid expenses and other current assets | 2,941 | 3,752 | ||||||||
Intercompany balances | 0 | 0 | ||||||||
Current portion of assets held for sale | 28 | 26,051 | ||||||||
Total current assets | 109,868 | 173,410 | ||||||||
Restricted cash, noncurrent | 0 | |||||||||
Fixed assets, net | 21,259 | 21,816 | ||||||||
Intangible assets, net | 1,150 | 1,154 | ||||||||
Goodwill | 11,089 | 7,675 | ||||||||
Other assets | 1,255 | 1,096 | ||||||||
Deferred income taxes long-term | 2,052 | 0 | ||||||||
Investment in subsidiaries | 0 | 0 | ||||||||
Assets held for sale, net of current portion | 0 | 1,676 | ||||||||
Total assets | 146,673 | 206,827 | ||||||||
Current liabilities: | ||||||||||
Lines of credit | 0 | 0 | ||||||||
Accounts payable | 22,008 | 35,910 | ||||||||
Accrued liabilities | 7,230 | 6,929 | ||||||||
Current portion of long-term debt | 0 | 0 | ||||||||
Income taxes payable | 0 | 0 | ||||||||
Deferred income taxes-current | 4,925 | 744 | ||||||||
Intercompany balances | 39,265 | 47,424 | ||||||||
Current portion of assets held for sale | 6 | 3,773 | ||||||||
Total current liabilities | 73,434 | 94,780 | ||||||||
Long-term debt | 0 | 0 | ||||||||
Deferred income taxes long-term | 0 | 2,053 | ||||||||
Other long-term liabilities | 7,420 | 8,946 | ||||||||
Assets held for sale, net of current portion | 187 | |||||||||
Total liabilities | 80,854 | 105,966 | ||||||||
Stockholders’/invested equity | 65,819 | 100,861 | ||||||||
Non-controlling interest | 0 | 0 | ||||||||
Total liabilities and equity | 146,673 | 206,827 | ||||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | 46,340 | 53,216 | 41,364 | 108,405 | ||||||
Restricted cash | 4,687 | |||||||||
Trade accounts receivable, net | 224,917 | 279,417 | ||||||||
Other receivables | 36,644 | 15,667 | ||||||||
Income taxes receivable | 0 | |||||||||
Inventories | 203,305 | 224,695 | ||||||||
Deferred income taxes-current | 4,926 | 6,482 | ||||||||
Prepaid expenses and other current assets | 17,351 | 13,729 | ||||||||
Intercompany balances | 0 | 0 | ||||||||
Current portion of assets held for sale | 20,237 | 25,475 | ||||||||
Total current assets | 558,407 | 618,681 | ||||||||
Restricted cash, noncurrent | 0 | |||||||||
Fixed assets, net | 137,720 | 152,915 | ||||||||
Intangible assets, net | 83,871 | 84,359 | ||||||||
Goodwill | 7,551 | 150,070 | ||||||||
Other assets | 33,574 | 38,512 | ||||||||
Deferred income taxes long-term | 16,088 | 2,111 | ||||||||
Investment in subsidiaries | 0 | 0 | ||||||||
Assets held for sale, net of current portion | 2,987 | 22,769 | ||||||||
Total assets | 840,198 | 1,069,417 | ||||||||
Current liabilities: | ||||||||||
Lines of credit | 32,929 | 0 | ||||||||
Accounts payable | 100,775 | 110,260 | ||||||||
Accrued liabilities | 72,492 | 86,795 | ||||||||
Current portion of long-term debt | 1,832 | 23,488 | ||||||||
Income taxes payable | 1,436 | 3,791 | ||||||||
Deferred income taxes-current | 4,807 | 0 | ||||||||
Intercompany balances | 40,292 | 33,308 | ||||||||
Current portion of assets held for sale | 12,634 | 11,958 | ||||||||
Total current liabilities | 267,197 | 269,600 | ||||||||
Long-term debt | 269,156 | 306,916 | ||||||||
Deferred income taxes long-term | 11,597 | 0 | ||||||||
Other long-term liabilities | 20,943 | 19,765 | ||||||||
Assets held for sale, net of current portion | 1,532 | |||||||||
Total liabilities | 568,893 | 597,813 | ||||||||
Stockholders’/invested equity | 269,825 | 453,652 | ||||||||
Non-controlling interest | 1,480 | 17,952 | ||||||||
Total liabilities and equity | 840,198 | 1,069,417 | ||||||||
Eliminations [Member] | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||||||
Restricted cash | 0 | |||||||||
Trade accounts receivable, net | 0 | 0 | ||||||||
Other receivables | -280 | 0 | ||||||||
Income taxes receivable | 0 | |||||||||
Inventories | -17,454 | -23,459 | ||||||||
Deferred income taxes-current | -21,554 | -21,109 | ||||||||
Prepaid expenses and other current assets | 0 | 0 | ||||||||
Intercompany balances | -258,808 | -173,547 | ||||||||
Current portion of assets held for sale | 0 | -330 | ||||||||
Total current assets | -298,096 | -218,445 | ||||||||
Restricted cash, noncurrent | 0 | |||||||||
Fixed assets, net | 0 | 0 | ||||||||
Intangible assets, net | 0 | 0 | ||||||||
Goodwill | 0 | 0 | ||||||||
Other assets | 0 | 0 | ||||||||
Deferred income taxes long-term | -32,859 | -23,196 | ||||||||
Investment in subsidiaries | -726,613 | -958,609 | ||||||||
Assets held for sale, net of current portion | 0 | 0 | ||||||||
Total assets | -1,057,568 | -1,200,250 | ||||||||
Current liabilities: | ||||||||||
Lines of credit | 0 | 0 | ||||||||
Accounts payable | 0 | 0 | ||||||||
Accrued liabilities | 0 | 0 | ||||||||
Current portion of long-term debt | 0 | 0 | ||||||||
Income taxes payable | -280 | 0 | ||||||||
Deferred income taxes-current | -21,554 | -21,109 | ||||||||
Intercompany balances | -258,808 | -173,547 | ||||||||
Current portion of assets held for sale | 0 | 0 | ||||||||
Total current liabilities | -280,642 | -194,656 | ||||||||
Long-term debt | 0 | 0 | ||||||||
Deferred income taxes long-term | -32,859 | -23,196 | ||||||||
Other long-term liabilities | 0 | 0 | ||||||||
Assets held for sale, net of current portion | 0 | |||||||||
Total liabilities | -313,501 | -217,852 | ||||||||
Stockholders’/invested equity | -744,067 | -982,398 | ||||||||
Non-controlling interest | 0 | 0 | ||||||||
Total liabilities and equity | ($1,057,568) | ($1,200,250) |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Cash flows from operating activities: | |||
Net loss | ($320,146,000) | ($233,525,000) | ($9,743,000) |
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | |||
Income from discontinued operations | -7,649,000 | -5,886,000 | -7,502,000 |
Depreciation and amortization | 51,938,000 | 49,958,000 | 52,418,000 |
Stock-based compensation | 17,260,000 | 21,556,000 | 22,552,000 |
Provision for doubtful accounts | 21,856,000 | 5,729,000 | 4,030,000 |
Asset impairments | 189,131,000 | 12,327,000 | 7,234,000 |
Equity in earnings | 228,000 | 613,000 | 282,000 |
Non-cash interest expense | 3,469,000 | 6,795,000 | 3,685,000 |
Deferred income taxes | -4,823,000 | 159,097,000 | -8,621,000 |
Other adjustments to reconcile net loss | -6,520,000 | -1,382,000 | -6,521,000 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | 50,607,000 | -1,220,000 | -50,750,000 |
Inventories | 37,097,000 | -11,860,000 | 7,183,000 |
Intercompany | 0 | ||
Other operating assets and liabilities | -40,969,000 | 22,686,000 | -28,819,000 |
Cash (used in)/provided by operating activities of continuing operations | -8,521,000 | 24,888,000 | -14,572,000 |
Cash (used in)/provided by operating activities of discontinued operations | -18,414,000 | 2,304,000 | 1,033,000 |
Net cash (used in)/provided by operating activities | -26,935,000 | 27,192,000 | -13,539,000 |
Cash flows from investing activities: | |||
Proceeds from sale of fixed assets | 5,650,000 | 859,000 | 8,198,000 |
Capital expenditures | -53,415,000 | -52,182,000 | -63,343,000 |
Changes in restricted cash | -21,201,000 | ||
Payment for purchases of companies | -21,201,000 | 0 | 0 |
Cash used in investing activities of continuing operations | -68,966,000 | -51,323,000 | -55,145,000 |
Cash provided by/(used in) investing activities of discontinued operations | 75,114,000 | -2,570,000 | -11,855,000 |
Net cash provided by/(used in) investing activities | 6,148,000 | -53,893,000 | -67,000,000 |
Cash flows from financing activities: | |||
Transactions with non-controlling interest owners | 0 | -58,000 | -11,000,000 |
Borrowings on lines of credit | 57,413,000 | 6,157,000 | 15,139,000 |
Payments on lines of credit | -24,485,000 | -22,561,000 | -12,641,000 |
Borrowings on long-term debt | 197,086,000 | 652,915,000 | 140,035,000 |
Payments on long-term debt | -222,172,000 | -582,456,000 | -112,841,000 |
Payments of debt issuance costs | -123,000 | -14,277,000 | 0 |
Stock option exercises and employee stock purchases | 5,902,000 | 9,944,000 | 2,241,000 |
Intercompany | 0 | 0 | 0 |
Cash provided by financing activities of continuing operations | 13,621,000 | 49,664,000 | 20,933,000 |
Cash provided by financing activities of discontinued operations | 0 | 0 | |
Cash (used in)/provided by intercompany financing operations of discontinued operations | 0 | ||
Net cash provided by financing activities | 13,621,000 | 49,664,000 | 20,933,000 |
Effect of exchange rate changes on cash | -3,450,000 | -7,506,000 | -8,324,000 |
Net (decrease)/increase in cash and cash equivalents | -10,616,000 | 15,457,000 | -67,930,000 |
Cash and cash equivalents, beginning of year | 57,280,000 | 41,823,000 | 109,753,000 |
Cash and cash equivalents, end of year | 46,664,000 | 57,280,000 | 41,823,000 |
Quiksilver, Inc. [Member] | |||
Cash flows from operating activities: | |||
Net loss | -309,378,000 | -232,565,000 | -10,756,000 |
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | |||
Income from discontinued operations | 0 | 689,000 | 0 |
Depreciation and amortization | 2,696,000 | 2,218,000 | 2,088,000 |
Stock-based compensation | 17,260,000 | 21,556,000 | 22,552,000 |
Provision for doubtful accounts | 0 | 0 | 0 |
Asset impairments | 2,043,000 | 0 | 0 |
Equity in earnings | 224,726,000 | 138,111,000 | -74,572,000 |
Non-cash interest expense | 1,911,000 | 4,702,000 | 1,490,000 |
Deferred income taxes | 0 | 0 | 0 |
Other adjustments to reconcile net loss | -375,000 | 316,000 | -443,000 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | 0 | 0 | 0 |
Inventories | 0 | 0 | 0 |
Intercompany | 132,629,000 | ||
Other operating assets and liabilities | -16,870,000 | 8,327,000 | 5,918,000 |
Cash (used in)/provided by operating activities of continuing operations | 54,642,000 | -56,646,000 | -53,723,000 |
Cash (used in)/provided by operating activities of discontinued operations | 0 | 0 | 0 |
Net cash (used in)/provided by operating activities | 54,642,000 | -56,646,000 | -53,723,000 |
Cash flows from investing activities: | |||
Proceeds from sale of fixed assets | 174,000 | 55,000 | 0 |
Capital expenditures | -6,480,000 | -7,347,000 | -4,388,000 |
Changes in restricted cash | 0 | ||
Payment for purchases of companies | 0 | ||
Cash used in investing activities of continuing operations | -6,306,000 | -7,292,000 | -4,388,000 |
Cash provided by/(used in) investing activities of discontinued operations | 0 | 0 | 0 |
Net cash provided by/(used in) investing activities | -6,306,000 | -7,292,000 | -4,388,000 |
Cash flows from financing activities: | |||
Transactions with non-controlling interest owners | 0 | 0 | |
Borrowings on lines of credit | 0 | 0 | 0 |
Payments on lines of credit | 0 | 0 | 0 |
Borrowings on long-term debt | 0 | 500,776,000 | 0 |
Payments on long-term debt | 0 | -400,000,000 | 0 |
Payments of debt issuance costs | -160,000 | -9,965,000 | 0 |
Stock option exercises and employee stock purchases | 5,902,000 | 9,944,000 | 2,241,000 |
Intercompany | 53,955,000 | 37,106,000 | -56,177,000 |
Cash provided by financing activities of continuing operations | -48,213,000 | 63,649,000 | 58,418,000 |
Cash provided by financing activities of discontinued operations | 0 | 0 | |
Cash (used in)/provided by intercompany financing operations of discontinued operations | 0 | ||
Net cash provided by financing activities | -48,213,000 | 63,649,000 | 58,418,000 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net (decrease)/increase in cash and cash equivalents | 123,000 | -289,000 | 307,000 |
Cash and cash equivalents, beginning of year | 35,000 | 324,000 | 17,000 |
Cash and cash equivalents, end of year | 158,000 | 35,000 | 324,000 |
QS Wholesale, Inc. [Member] | |||
Cash flows from operating activities: | |||
Net loss | -35,639,000 | 30,412,000 | 19,636,000 |
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | |||
Income from discontinued operations | 0 | 0 | 0 |
Depreciation and amortization | 10,712,000 | 11,556,000 | 11,314,000 |
Stock-based compensation | 0 | 0 | 0 |
Provision for doubtful accounts | 15,515,000 | -129,000 | -763,000 |
Asset impairments | 40,430,000 | 1,646,000 | 11,000 |
Equity in earnings | 4,509,000 | 2,739,000 | 4,674,000 |
Non-cash interest expense | 1,016,000 | 1,312,000 | 1,506,000 |
Deferred income taxes | 1,467,000 | -1,750,000 | 474,000 |
Other adjustments to reconcile net loss | -295,000 | 27,000 | -94,000 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | 11,120,000 | -3,339,000 | -7,227,000 |
Inventories | 21,131,000 | -11,182,000 | 23,444,000 |
Intercompany | -45,566,000 | ||
Other operating assets and liabilities | 5,948,000 | 3,080,000 | -9,589,000 |
Cash (used in)/provided by operating activities of continuing operations | 30,348,000 | 34,372,000 | 43,386,000 |
Cash (used in)/provided by operating activities of discontinued operations | -18,791,000 | 0 | 0 |
Net cash (used in)/provided by operating activities | 11,557,000 | 34,372,000 | 43,386,000 |
Cash flows from investing activities: | |||
Proceeds from sale of fixed assets | 94,000 | 0 | 43,000 |
Capital expenditures | -12,365,000 | -6,606,000 | -13,744,000 |
Changes in restricted cash | -16,514,000 | ||
Payment for purchases of companies | 0 | ||
Cash used in investing activities of continuing operations | -28,785,000 | -6,606,000 | -13,701,000 |
Cash provided by/(used in) investing activities of discontinued operations | 19,000,000 | 0 | 0 |
Net cash provided by/(used in) investing activities | -9,785,000 | -6,606,000 | -13,701,000 |
Cash flows from financing activities: | |||
Transactions with non-controlling interest owners | -58,000 | -11,000,000 | |
Borrowings on lines of credit | 0 | 0 | 0 |
Payments on lines of credit | 0 | 0 | 0 |
Borrowings on long-term debt | 117,068,000 | 59,829,000 | 93,500,000 |
Payments on long-term debt | -95,976,000 | -129,123,000 | -70,800,000 |
Payments of debt issuance costs | 37,000 | -4,312,000 | 0 |
Stock option exercises and employee stock purchases | 0 | 0 | 0 |
Intercompany | 22,801,000 | -47,665,000 | 44,391,000 |
Cash provided by financing activities of continuing operations | -1,672,000 | -25,999,000 | -32,691,000 |
Cash provided by financing activities of discontinued operations | 0 | 0 | |
Cash (used in)/provided by intercompany financing operations of discontinued operations | -966,000 | ||
Net cash provided by financing activities | -2,638,000 | -25,999,000 | -32,691,000 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net (decrease)/increase in cash and cash equivalents | -866,000 | 1,767,000 | -3,006,000 |
Cash and cash equivalents, beginning of year | 3,733,000 | 1,966,000 | 4,972,000 |
Cash and cash equivalents, end of year | 2,867,000 | 3,733,000 | 1,966,000 |
Guarantor Subsidiaries [Member] | |||
Cash flows from operating activities: | |||
Net loss | -14,285,000 | 7,824,000 | 31,345,000 |
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | |||
Income from discontinued operations | -29,244,000 | -5,211,000 | -5,721,000 |
Depreciation and amortization | 9,752,000 | 6,031,000 | 6,483,000 |
Stock-based compensation | 0 | 0 | 0 |
Provision for doubtful accounts | 437,000 | -1,823,000 | -1,307,000 |
Asset impairments | 4,267,000 | 5,939,000 | 5,151,000 |
Equity in earnings | 0 | 0 | 0 |
Non-cash interest expense | 0 | 0 | 0 |
Deferred income taxes | 0 | 0 | 0 |
Other adjustments to reconcile net loss | -306,000 | -196,000 | 130,000 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | 10,317,000 | 36,610,000 | -19,368,000 |
Inventories | 21,039,000 | 3,830,000 | -41,966,000 |
Intercompany | -128,989,000 | ||
Other operating assets and liabilities | -18,527,000 | -20,748,000 | 16,996,000 |
Cash (used in)/provided by operating activities of continuing operations | -145,539,000 | 32,256,000 | -8,257,000 |
Cash (used in)/provided by operating activities of discontinued operations | 16,805,000 | 1,515,000 | -1,521,000 |
Net cash (used in)/provided by operating activities | -128,734,000 | 33,771,000 | -9,778,000 |
Cash flows from investing activities: | |||
Proceeds from sale of fixed assets | 532,000 | 12,000 | 2,000 |
Capital expenditures | -10,569,000 | -7,965,000 | -8,527,000 |
Changes in restricted cash | 0 | ||
Payment for purchases of companies | 0 | ||
Cash used in investing activities of continuing operations | -10,037,000 | -7,953,000 | -8,525,000 |
Cash provided by/(used in) investing activities of discontinued operations | 58,052,000 | -268,000 | -309,000 |
Net cash provided by/(used in) investing activities | 48,015,000 | -8,221,000 | -8,834,000 |
Cash flows from financing activities: | |||
Transactions with non-controlling interest owners | 0 | 0 | |
Borrowings on lines of credit | 0 | 0 | 0 |
Payments on lines of credit | 0 | 0 | 0 |
Borrowings on long-term debt | 0 | 0 | 0 |
Payments on long-term debt | 0 | 0 | 0 |
Payments of debt issuance costs | 0 | 0 | 0 |
Stock option exercises and employee stock purchases | 0 | 0 | 0 |
Intercompany | -76,756,000 | 23,423,000 | -20,422,000 |
Cash provided by financing activities of continuing operations | 76,756,000 | -23,423,000 | 20,422,000 |
Cash provided by financing activities of discontinued operations | 0 | 0 | |
Cash (used in)/provided by intercompany financing operations of discontinued operations | 966,000 | ||
Net cash provided by financing activities | 77,722,000 | -23,423,000 | 20,422,000 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net (decrease)/increase in cash and cash equivalents | -2,997,000 | 2,127,000 | 1,810,000 |
Cash and cash equivalents, beginning of year | 296,000 | -1,831,000 | -3,641,000 |
Cash and cash equivalents, end of year | -2,701,000 | 296,000 | -1,831,000 |
Non-Guarantor Subsidiaries [Member] | |||
Cash flows from operating activities: | |||
Net loss | -190,056,000 | -154,314,000 | 49,265,000 |
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | |||
Income from discontinued operations | 21,595,000 | -1,353,000 | -2,080,000 |
Depreciation and amortization | 28,778,000 | 30,153,000 | 32,533,000 |
Stock-based compensation | 0 | 0 | 0 |
Provision for doubtful accounts | 5,904,000 | 7,681,000 | 6,100,000 |
Asset impairments | 142,391,000 | 4,742,000 | 2,072,000 |
Equity in earnings | 228,000 | 613,000 | 282,000 |
Non-cash interest expense | 542,000 | 781,000 | 689,000 |
Deferred income taxes | -6,290,000 | 160,847,000 | -9,095,000 |
Other adjustments to reconcile net loss | -5,544,000 | -1,529,000 | -6,114,000 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | 29,170,000 | -34,491,000 | -24,155,000 |
Inventories | -5,096,000 | -30,251,000 | -3,331,000 |
Intercompany | 41,926,000 | ||
Other operating assets and liabilities | -11,520,000 | 32,027,000 | -42,144,000 |
Cash (used in)/provided by operating activities of continuing operations | 52,028,000 | 14,906,000 | 4,022,000 |
Cash (used in)/provided by operating activities of discontinued operations | -16,428,000 | 789,000 | 2,554,000 |
Net cash (used in)/provided by operating activities | 35,600,000 | 15,695,000 | 6,576,000 |
Cash flows from investing activities: | |||
Proceeds from sale of fixed assets | 4,850,000 | 792,000 | 8,153,000 |
Capital expenditures | -24,001,000 | -30,264,000 | -36,684,000 |
Changes in restricted cash | -4,687,000 | ||
Payment for purchases of companies | 0 | ||
Cash used in investing activities of continuing operations | -23,838,000 | -29,472,000 | -28,531,000 |
Cash provided by/(used in) investing activities of discontinued operations | -1,938,000 | -2,302,000 | -11,546,000 |
Net cash provided by/(used in) investing activities | -25,776,000 | -31,774,000 | -40,077,000 |
Cash flows from financing activities: | |||
Transactions with non-controlling interest owners | 0 | 0 | |
Borrowings on lines of credit | 57,413,000 | 6,157,000 | 15,139,000 |
Payments on lines of credit | -24,485,000 | -22,561,000 | -12,641,000 |
Borrowings on long-term debt | 80,018,000 | 92,310,000 | 46,535,000 |
Payments on long-term debt | -126,196,000 | -53,333,000 | -42,041,000 |
Payments of debt issuance costs | 0 | 0 | 0 |
Stock option exercises and employee stock purchases | 0 | 0 | 0 |
Intercompany | 0 | -12,864,000 | 32,208,000 |
Cash provided by financing activities of continuing operations | -13,250,000 | 35,437,000 | -25,216,000 |
Cash provided by financing activities of discontinued operations | 0 | 0 | |
Cash (used in)/provided by intercompany financing operations of discontinued operations | 0 | ||
Net cash provided by financing activities | -13,250,000 | 35,437,000 | -25,216,000 |
Effect of exchange rate changes on cash | -3,450,000 | -7,506,000 | -8,324,000 |
Net (decrease)/increase in cash and cash equivalents | -6,876,000 | 11,852,000 | -67,041,000 |
Cash and cash equivalents, beginning of year | 53,216,000 | 41,364,000 | 108,405,000 |
Cash and cash equivalents, end of year | 46,340,000 | 53,216,000 | 41,364,000 |
Eliminations [Member] | |||
Cash flows from operating activities: | |||
Net loss | 229,212,000 | 115,118,000 | -99,233,000 |
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | |||
Income from discontinued operations | 0 | -11,000 | 299,000 |
Depreciation and amortization | 0 | 0 | 0 |
Stock-based compensation | 0 | 0 | 0 |
Provision for doubtful accounts | 0 | 0 | 0 |
Asset impairments | 0 | 0 | 0 |
Equity in earnings | -229,235,000 | -140,850,000 | 69,898,000 |
Non-cash interest expense | 0 | ||
Deferred income taxes | 0 | 0 | 0 |
Other adjustments to reconcile net loss | 0 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | 0 | 0 | 0 |
Inventories | 23,000 | 25,743,000 | 29,036,000 |
Other operating assets and liabilities | 0 | 0 | 0 |
Cash (used in)/provided by operating activities of continuing operations | 0 | 0 | 0 |
Cash (used in)/provided by operating activities of discontinued operations | 0 | 0 | 0 |
Net cash (used in)/provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Proceeds from sale of fixed assets | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 |
Changes in restricted cash | 0 | ||
Payment for purchases of companies | 0 | ||
Cash used in investing activities of continuing operations | 0 | 0 | 0 |
Cash provided by/(used in) investing activities of discontinued operations | 0 | 0 | 0 |
Net cash provided by/(used in) investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Transactions with non-controlling interest owners | 0 | 0 | |
Borrowings on lines of credit | 0 | 0 | 0 |
Payments on lines of credit | 0 | 0 | 0 |
Borrowings on long-term debt | 0 | 0 | 0 |
Payments on long-term debt | 0 | 0 | 0 |
Payments of debt issuance costs | 0 | 0 | 0 |
Stock option exercises and employee stock purchases | 0 | 0 | 0 |
Intercompany | 0 | 0 | 0 |
Cash provided by financing activities of continuing operations | 0 | 0 | 0 |
Cash provided by financing activities of discontinued operations | 0 | 0 | |
Cash (used in)/provided by intercompany financing operations of discontinued operations | 0 | ||
Net cash provided by financing activities | 0 | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Net (decrease)/increase in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of year | 0 | 0 | 0 |
Cash and cash equivalents, end of year | $0 | $0 | $0 |