Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jan. 31, 2015 | Feb. 27, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Jan-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ZQK | |
Entity Registrant Name | QUIKSILVER INC | |
Entity Central Index Key | 805305 | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 171,370,392 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Income Statement [Abstract] | ||
Revenues, net | $340,854 | $394,910 |
Cost of goods sold | 171,410 | 194,270 |
Gross profit | 169,444 | 200,640 |
Selling, general and administrative expense | 170,504 | 203,784 |
Asset impairments | 255 | 883 |
Operating loss | -1,315 | -4,027 |
Interest expense, net | 18,402 | 19,420 |
Foreign currency loss | 657 | 2,828 |
Loss before benefit for income taxes | -20,374 | -26,275 |
Benefit for income taxes | -2,084 | -4,385 |
Loss from continuing operations | -18,290 | -21,890 |
Income from discontinued operations, net of tax (includes net gain on sale of businesses of $6,580 (2015) and $38,103 (2014)) | 6,732 | 37,617 |
Net (loss)/income | -11,558 | 15,727 |
Less: net loss attributable to non-controlling interest | 788 | 464 |
Net (loss)/income | -10,770 | 16,191 |
Loss per share from continuing operations attributable to Quiksilver, Inc. (usd per share) | ($0.11) | ($0.13) |
Income per share from discontinued operations attributable to Quiksilver, Inc. (usd per share) | $0.04 | $0.22 |
Net (loss)/income per share attributable to Quiksilver, Inc. (usd per share) | ($0.06) | $0.10 |
Loss per share from continuing operations attributable to Quiksilver, Inc., assuming dilution (usd per share) | ($0.11) | ($0.13) |
Income per share from discontinued operations attributable to Quiksilver, Inc., assuming dilution (usd per share) | $0.04 | $0.22 |
Net (loss)/income per share attributable to Quiksilver, Inc., assuming dilution (usd per share) | ($0.06) | $0.10 |
Weighted average common shares outstanding, basic | 171,039 | 169,747 |
Weighted average common shares outstanding, diluted | 171,039 | 169,747 |
Amounts attributable to Quiksilver, Inc.: | ||
Loss from continuing operations | -18,290 | -21,529 |
Income from discontinued operations, net of tax | 7,520 | 37,720 |
Net (loss)/income | ($10,770) | $16,191 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Income Statement [Abstract] | ||
Net gain on sales of businesses | $6,580 | $38,103 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive (Loss)/Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Net (loss)/income | ($11,558) | $15,727 |
Other comprehensive (loss)/income: | ||
Comprehensive (loss)/income | -30,177 | 1,305 |
Comprehensive loss attributable to non-controlling interest | 788 | 464 |
Comprehensive (loss)/income attributable to Quiksilver, Inc. | -29,389 | 1,769 |
Foreign Currency Adjustments | ||
Other comprehensive (loss)/income: | ||
Foreign currency translation adjustment | -34,143 | -20,715 |
Derivative Instruments | ||
Other comprehensive (loss)/income: | ||
Net unrealized gain on derivative instruments, net of tax provision of $1,295 (2015) and $1,414 (2014) | 18,442 | 6,107 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Other comprehensive (loss)/income: | ||
Reclassification adjustment for realized gain/(loss) on derivative instruments transferred to earnings, net of tax provision/(benefit) of $213 (2015) and $(93) (2014) | -2,918 | 186 |
Reclassification out of Accumulated Other Comprehensive Income | Foreign Currency Adjustments | ||
Other comprehensive (loss)/income: | ||
Reclassification adjustment for realized gain/(loss) on derivative instruments transferred to earnings, net of tax provision/(benefit) of $213 (2015) and $(93) (2014) | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Instruments | ||
Other comprehensive (loss)/income: | ||
Reclassification adjustment for realized gain/(loss) on derivative instruments transferred to earnings, net of tax provision/(benefit) of $213 (2015) and $(93) (2014) | ($2,918) | $186 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Comprehensive (Loss)/Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Reclassification adjustment from AOCI on derivatives, tax | $213 | ($93) |
Unrealized gain/(loss) on derivative instruments, tax | $1,295 | $1,414 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $60,656 | $46,664 |
Restricted cash | 1,745 | 4,687 |
Trade accounts receivable, less allowances of $54,819 (2015) and $63,991 (2014) | 258,952 | 311,014 |
Other receivables | 51,101 | 40,847 |
Inventories | 306,119 | 284,517 |
Deferred income taxes - current | 4,533 | 4,926 |
Prepaid expenses and other current assets | 31,315 | 28,080 |
Current portion of assets held for sale | 0 | 20,265 |
Total current assets | 714,421 | 741,000 |
Restricted cash | 3,918 | 16,514 |
Fixed assets, less accumulated depreciation and amortization of $209,823 (2015) and $220,888 (2014) | 194,107 | 213,768 |
Intangible assets, net | 137,165 | 135,510 |
Goodwill | 79,805 | 80,622 |
Other assets | 39,946 | 47,086 |
Deferred income taxes long-term | 14,352 | 16,088 |
Assets held for sale, net of current portion | 0 | 5,394 |
Total assets | 1,183,714 | 1,255,982 |
Current liabilities: | ||
Lines of credit | 31,093 | 32,929 |
Accounts payable | 174,090 | 168,307 |
Accrued liabilities | 101,591 | 112,701 |
Current portion of long-term debt | 2,261 | 2,432 |
Income taxes payable | 2,505 | 1,124 |
Deferred income taxes - current | 19,490 | 19,628 |
Current portion of assets held for sale | 0 | 13,266 |
Total current liabilities | 331,030 | 350,387 |
Long-term debt, net of current portion | 770,048 | 793,229 |
Other long-term liabilities | 34,702 | 39,342 |
Deferred income taxes long-term | 21,304 | 16,790 |
Total liabilities | 1,157,084 | 1,199,748 |
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 - 174,255,592 (2015) and 174,057,410 (2014) | 1,743 | 1,741 |
Additional paid-in capital | 591,173 | 589,032 |
Treasury stock, 2,885,200 shares | -6,778 | -6,778 |
Accumulated deficit | -598,177 | -587,407 |
Accumulated other comprehensive income | 38,669 | 57,288 |
Total Quiksilver, Inc. stockholders’ equity | 26,630 | 53,876 |
Non-controlling interest | 0 | 2,358 |
Total equity | 26,630 | 56,234 |
Total liabilities and equity | $1,183,714 | $1,255,982 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowances for trade accounts receivable | $54,819 | $63,991 |
Fixed assets, accumulated depreciation and amortization | $209,823 | $220,888 |
Preferred stock, par value (in dollars 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 (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 285,000,000 | 285,000,000 |
Common stock, shares issued | 174,255,592 | 174,057,410 |
Treasury stock, shares | 2,885,200 | 2,885,200 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Cash flows from operating activities: | ||
Net (loss)/income | ($11,558) | $15,727 |
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities: | ||
Income from discontinued operations | -6,732 | -37,617 |
Depreciation and amortization | 10,758 | 10,545 |
Stock-based compensation | 1,769 | 5,063 |
Provision for doubtful accounts | 1,598 | 1,662 |
Loss/(Gain) on disposal of fixed assets | 342 | -266 |
Unrealized foreign currency (gain)/loss | -647 | 3,065 |
Asset impairments | 255 | 883 |
Non-cash interest expense | 857 | 914 |
Equity in earnings | 596 | 352 |
Deferred income taxes | -5,225 | 5 |
Subtotal of non-cash reconciling adjustments | 3,571 | -15,394 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 32,227 | 61,905 |
Other receivables | -2,313 | -825 |
Inventories | -39,724 | -31,169 |
Prepaid expenses and other current assets | -5,204 | -7,372 |
Other assets | 966 | 2,628 |
Accounts payable | 25,474 | -28,498 |
Accrued liabilities and other long-term liabilities | -8,528 | 124 |
Income taxes payable | 274 | -1,242 |
Subtotal of changes in operating assets and liabilities | 3,172 | -4,449 |
Cash used in operating activities of continuing operations | -4,815 | -4,116 |
Cash provided by/(used in) operating activities of discontinued operations | 4,668 | -7,195 |
Net cash used in operating activities | -147 | -11,311 |
Cash flows from investing activities: | ||
Capital expenditures | -15,944 | -10,558 |
Proceeds from sale of property | 455 | 0 |
Changes in restricted cash | 15,538 | -60,617 |
Cash provided by/(used in) investing activities of continuing operations | 49 | -71,175 |
Cash provided by investing activities of discontinued operations | 10,713 | 76,719 |
Net cash provided by investing activities | 10,762 | 5,544 |
Cash flows from financing activities: | ||
Borrowings on lines of credit | 11,770 | 18,904 |
Payments on lines of credit | -16,575 | -16,591 |
Borrowings on long-term debt | 42,734 | 52,062 |
Payments on long-term debt | -32,420 | -33,779 |
Stock option exercises and employee stock purchases | 372 | 3,138 |
Payments of debt issuance costs | 0 | -335 |
Cash provided by financing activities of continuing operations | 5,881 | 23,399 |
Net cash provided by financing activities | 5,881 | 23,399 |
Effect of exchange rate changes on cash | -2,504 | -4,924 |
Net increase in cash and cash equivalents | 13,992 | 12,708 |
Cash and cash equivalents, beginning of period | 46,664 | 57,280 |
Cash and cash equivalents, end of period | 60,656 | 69,988 |
Cash paid/(received) during the period for: | ||
Interest | 11,954 | 12,894 |
Income taxes paid | 1,502 | 6,516 |
Income taxes received | -440 | 0 |
Summary of significant non-cash transactions | ||
Capital expenditures accrued at period end (investing activities) | 2,148 | 3,453 |
Debt issued for purchase of non-controlling interest (financing activities) | $0 | $17,388 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |
Jan. 31, 2015 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of Presentation | Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statement presentation. | ||
Quiksilver, Inc. and its subsidiaries (the “Company”) has included all adjustments, consisting only of normal and recurring adjustments, necessary for a fair presentation of the results of operations for all periods presented. The Company's fiscal year ends on October 31 (for example, “fiscal 2015” refers to the year ending October 31, 2015). The condensed consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended October 31, 2014 included in the Company’s most recent Annual Report on Form 10-K. Interim results are not necessarily indicative of results for the full year. | ||
Principles of Consolidation | ||
The consolidated financial statements include the accounts of Quiksilver, Inc. and its subsidiaries. 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 of fiscal 2014. In December 2014, the Company sold its majority stake in Surfdome Shop, Ltd. ("Surfdome") for net proceeds of approximately $16 million. As a result, the Company reported 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 condensed consolidated balance sheets (see Note 15 — Discontinued Operations). Unless otherwise indicated, the disclosures accompanying the condensed consolidated financial statements reflect the Company's continuing operations. | ||
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. | ||
Fair Value Measurements | ||
Accounting Standards Codification 820, “Fair Value Measurements and Disclosures,” ("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. | ||
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. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Jan. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements |
Accounting Standards Adopted | |
In November 2014, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2014-17, Pushdown Accounting, which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The Company adopted this guidance on November 18, 2014, the effective date of ASU 2014-17. The adoption of this guidance did not impact the Company's condensed consolidated financial statements and disclosures. | |
In January 2015, the FASB issued ASU 2015-01, Income Statement - Extraordinary and Unusual Items, which eliminates the concept of extraordinary items from GAAP, which required certain classification and presentation of extraordinary items in the income statement and disclosures. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. The Company adopted this guidance on November 1, 2014. The adoption of this guidance did not impact the Company's condensed consolidated financial statements and disclosures. | |
Accounting Standards Not Yet Adopted | |
In April 2014, the FASB issued 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_Information
Segment Information | 3 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Information | Segment Information | ||||||||
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company currently operates in four segments: the Americas, EMEA, and APAC, each of which sells a full range of the Company’s products, as well as Corporate Operations. The Americas segment, consisting of North, South and Central America, includes revenues primarily from the United States, Canada, Brazil and Mexico. The EMEA segment, consisting of Europe, the Middle East and Africa, includes revenues primarily from continental Europe, the United Kingdom, Russia and South Africa. The APAC segment, consisting of Asia and the Pacific Rim, includes revenues primarily from Australia, Japan, New Zealand, South Korea, Taiwan and Indonesia. Costs that support all segments, including trademark protection, trademark maintenance and licensing functions, are part of Corporate Operations. Corporate Operations also includes sourcing income and gross profits earned from the Company’s licensees. | |||||||||
Information related to the Company's operating segments, all from continuing operations, is as follows: | |||||||||
Three Months Ended January 31, | |||||||||
In thousands | 2015 | 2014 | |||||||
Revenues, net: | |||||||||
Americas | $ | 147,767 | $ | 175,463 | |||||
EMEA | 125,813 | 149,397 | |||||||
APAC | 66,598 | 69,875 | |||||||
Corporate Operations | 676 | 175 | |||||||
Total | $ | 340,854 | $ | 394,910 | |||||
Gross profit/(loss): | |||||||||
Americas | $ | 64,309 | $ | 75,914 | |||||
EMEA | 70,500 | 87,849 | |||||||
APAC | 36,850 | 36,808 | |||||||
Corporate Operations | (2,215 | ) | 69 | ||||||
Total | $ | 169,444 | $ | 200,640 | |||||
SG&A expense: | |||||||||
Americas | $ | 70,024 | $ | 89,561 | |||||
EMEA | 66,129 | 78,208 | |||||||
APAC | 34,805 | 33,362 | |||||||
Corporate Operations | (454 | ) | 2,653 | ||||||
Total | $ | 170,504 | $ | 203,784 | |||||
Asset impairments: | |||||||||
Americas | $ | 76 | $ | 222 | |||||
EMEA | 179 | 661 | |||||||
APAC | — | — | |||||||
Corporate Operations | — | — | |||||||
Total | $ | 255 | $ | 883 | |||||
Depreciation and amortization expense: | |||||||||
Americas | $ | 4,108 | $ | 4,516 | |||||
EMEA | 3,816 | 3,287 | |||||||
APAC | 1,741 | 1,888 | |||||||
Corporate Operations | 762 | 654 | |||||||
Total | $ | 10,427 | $ | 10,345 | |||||
Operating (loss)/income: | |||||||||
Americas | $ | (5,791 | ) | $ | (13,869 | ) | |||
EMEA | 4,192 | 8,980 | |||||||
APAC | 2,045 | 3,446 | |||||||
Corporate Operations | (1,761 | ) | (2,584 | ) | |||||
Total | $ | (1,315 | ) | $ | (4,027 | ) | |||
Interest expense: | |||||||||
Americas | $ | 730 | $ | 902 | |||||
EMEA | 4,228 | 4,811 | |||||||
APAC | 526 | 587 | |||||||
Corporate Operations | 12,918 | 13,120 | |||||||
Total | $ | 18,402 | $ | 19,420 | |||||
SG&A expense by segment for the first quarter of fiscal 2014 has been reclassified to conform to the current year presentation which reflects the Company's centralization of certain global business functions and related transfer pricing allocations. | |||||||||
In thousands | January 31, | 31-Oct-14 | |||||||
2015 | |||||||||
Identifiable assets: | |||||||||
Americas | $ | 438,171 | $ | 464,831 | |||||
EMEA | 474,512 | 513,303 | |||||||
APAC | 199,964 | 202,225 | |||||||
Corporate Operations | 71,067 | 75,623 | |||||||
Total | $ | 1,183,714 | $ | 1,255,982 | |||||
Earnings_per_Share_and_StockBa
Earnings per Share and Stock-Based Compensation | 3 Months Ended | |||||||||||||
Jan. 31, 2015 | ||||||||||||||
Earnings per Share and Stock Based Compensation [Abstract] | ||||||||||||||
Earnings per Share and Stock-Based Compensation | Earnings per Share and Stock-Based Compensation | |||||||||||||
The Company reports basic and diluted earnings per share (“EPS”). Basic EPS is based on the weighted average number of shares outstanding during the period, while diluted EPS additionally includes the dilutive effect of the Company’s outstanding stock options, warrants and shares of restricted stock computed using the treasury stock method. | ||||||||||||||
The table below sets forth the reconciliation of the denominator of each net loss/income per share calculation for the three months ended January 31, 2015 and 2014: | ||||||||||||||
Three Months Ended January 31, | ||||||||||||||
In thousands | 2015 | 2014 | ||||||||||||
Shares used in computing basic net loss/income per share | 171,039 | 169,747 | ||||||||||||
Dilutive effect of stock options and restricted stock(1) | — | — | ||||||||||||
Dilutive effect of stock warrants(1) | — | — | ||||||||||||
Shares used in computing diluted net loss/income per share | 171,039 | 169,747 | ||||||||||||
-1 | For the first quarter of fiscal 2015 and 2014, the shares used in computing diluted net loss per share do not include 234,000 and 3,974,000, respectively, of dilutive stock options and shares of restricted stock, nor 1,982,000 and 19,913,000, respectively, of dilutive warrant shares, as the effect is anti-dilutive given the Company’s net loss from continuing operations. For the first quarter of fiscal 2015 and 2014, additional stock options outstanding of 6,492,000 and 3,856,000, respectively, and additional warrant shares outstanding of 23,672,000 and 5,741,000, respectively, were excluded from the calculation of diluted EPS, as their effect would have been anti-dilutive based on the application of the treasury stock method. | |||||||||||||
The Company accounts for stock-based compensation under the fair value recognition provisions of ASC 718, “Compensation – Stock Compensation.” Stock-based compensation expense is included in selling, general and administrative expense ("SG&A"). | ||||||||||||||
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 performance-based stock 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. The weighted average fair value of the performance-based restricted stock units granted in the first quarter ended January 31, 2015 was $1.85. There were no performance-based restricted stock units granted in the first quarter of fiscal 2014. There were no performance options granted in the first quarter of fiscal 2015 or 2014. | ||||||||||||||
Activity related to these performance-based options and performance-based restricted stock units for the three months ended January 31, 2015 was as follows: | ||||||||||||||
Performance | Performance | |||||||||||||
Options | Restricted | |||||||||||||
Stock Units | ||||||||||||||
Outstanding, October 31, 2014 | 640,000 | 10,218,508 | ||||||||||||
Granted | — | 1,486,000 | ||||||||||||
Exercised | — | — | ||||||||||||
Canceled | — | (16,000 | ) | |||||||||||
Outstanding, January 31, 2015 | 640,000 | 11,688,508 | ||||||||||||
As of January 31, 2015, 164,000 of the 640,000 outstanding performance-based stock options were exercisable and none of the performance-based restricted stock units were exercisable. As of January 31, 2015, the Company had unrecognized compensation expense, net of estimated forfeitures, of approximately $0.3 million related to the performance-based stock options and approximately $1.9 million related to the performance-based restricted stock units. This unrecognized compensation expense is expected to be recognized over a weighted average period of approximately 1.3 years and 1.8 years, respectively. | ||||||||||||||
For non-performance-based stock options, the Company uses the Black-Scholes option-pricing model to value compensation expense. Forfeitures are estimated at the date of grant based on historical rates and reduce the compensation expense recognized. The expected term of stock options granted is derived from historical data on employee exercises. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant. Expected volatility is based on the historical volatility of the Company’s stock. For the first quarter of fiscal 2015 and 2014, there were no options granted. The Company records stock-based compensation expense using the graded vested method over the vesting period, which is generally three years. As of January 31, 2015, the Company had approximately $1.1 million of unrecognized compensation expense for non-performance-based stock options expected to be recognized over a weighted average period of approximately 1.8 years. | ||||||||||||||
Changes in shares underlying stock options, excluding performance-based stock options, for the three months ended January 31, 2015 were as follows: | ||||||||||||||
Dollar amounts in thousands, | Shares | Weighted | Weighted | Aggregate | ||||||||||
except per share amounts | Average | Average | Intrinsic | |||||||||||
Price | Life | Value | ||||||||||||
Outstanding, October 31, 2014 | 6,817,609 | $ | 4.52 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | — | — | ||||||||||||
Canceled | (270,833 | ) | 6.16 | |||||||||||
Outstanding, January 31, 2015 | 6,546,776 | $ | 4.46 | 4.8 | $ | 33 | ||||||||
Options exercisable, January 31, 2015 | 5,930,441 | $ | 4.24 | 4.5 | $ | 33 | ||||||||
Changes in non-vested shares underlying stock options, excluding performance-based stock options, for the three months ended January 31, 2015 were as follows: | ||||||||||||||
Shares | Weighted | |||||||||||||
Average Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Non-vested, October 31, 2014 | 1,121,336 | $ | 4.18 | |||||||||||
Granted | — | — | ||||||||||||
Vested | (505,001 | ) | 3.59 | |||||||||||
Canceled | — | — | ||||||||||||
Non-vested, January 31, 2015 | 616,335 | $ | 4.67 | |||||||||||
The Company may also grant restricted stock and restricted stock units under its 2013 Performance Incentive Plan. Restricted stock issued under this plan generally vests in three years while restricted stock units issued under this plan generally vest upon the Company’s achievement of a specified common stock price threshold or performance goals. Restricted stock unit awards granted to our chief executive officer in lieu of a cash annual salary in the first quarter of fiscal 2015 vest in one year. Changes in restricted stock and restricted stock units for the three months ended January 31, 2015 were as follows: | ||||||||||||||
Restricted Stock | Restricted Stock Units | |||||||||||||
Outstanding, October 31, 2014 | 175,000 | — | ||||||||||||
Granted | — | 675,676 | ||||||||||||
Vested | — | — | ||||||||||||
Forfeited | — | — | ||||||||||||
Outstanding, January 31, 2015 | 175,000 | 675,676 | ||||||||||||
Compensation expense for restricted stock is determined using the intrinsic value method. Forfeitures are estimated at the date of grant based on historical rates and reduce the compensation expense recognized. The Company monitors the probability of meeting the restricted stock performance criteria, if any, and adjusts the amortization period as appropriate. As of January 31, 2015, there had been no acceleration of amortization periods and the Company had approximately $1.3 million of unrecognized compensation expense expected to be recognized over a weighted average period of approximately 0.9 years. |
Restricted_Cash
Restricted Cash | 3 Months Ended |
Jan. 31, 2015 | |
Restricted Cash and Investments [Abstract] | |
Restricted Cash | Restricted Cash |
The Company’s restricted cash balance, including both current and non-current portions, was $6 million at January 31, 2015 and $21 million at October 31, 2014. Certain of the Company’s 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 acquisitions of assets. Restricted cash at January 31, 2015 included $4 million of the remaining proceeds from the sale of the Surfdome business in the first quarter of fiscal 2015, which is subject to these restrictions. Consequently, since the restricted cash is required to be invested in long-term assets or to repay long-term debt, it is reflected as a long-term asset. The Company expects to utilize these remaining proceeds during fiscal 2015. |
Inventories
Inventories | 3 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Inventories | ||||||||
Inventories consisted of the following as of the dates indicated: | |||||||||
In thousands | January 31, | 31-Oct-14 | |||||||
2015 | |||||||||
Raw materials | $ | 3,392 | $ | 3,524 | |||||
Work in-process | 653 | 467 | |||||||
Finished goods | 302,074 | 280,526 | |||||||
Total | $ | 306,119 | $ | 284,517 | |||||
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 3 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
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: | |||||||||||||||||||||||||
31-Jan-15 | 31-Oct-14 | ||||||||||||||||||||||||
In thousands | Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | |||||||||||||||||||
Amount | Amortization | Value | Amount | Amortization | Value | ||||||||||||||||||||
Non-amortizable trademarks | $ | 124,118 | $ | — | $ | 124,118 | $ | 124,121 | $ | — | $ | 124,121 | |||||||||||||
Amortizable trademarks | 23,333 | (12,249 | ) | 11,084 | 21,858 | (12,508 | ) | 9,350 | |||||||||||||||||
Amortizable licenses | 10,521 | (10,521 | ) | — | 11,817 | (11,817 | ) | — | |||||||||||||||||
Other amortizable intangibles | 8,410 | (6,447 | ) | 1,963 | 8,406 | (6,367 | ) | 2,039 | |||||||||||||||||
Total | $ | 166,382 | $ | (29,217 | ) | $ | 137,165 | $ | 166,202 | $ | (30,692 | ) | $ | 135,510 | |||||||||||
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 for each of the three months ended January 31, 2015 and 2014 was approximately $0.5 million. Annual amortization expense is estimated to be approximately $2 million in fiscal 2016 and $1 million in fiscal 2017 through fiscal 2020. | |||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
A summary of goodwill by reporting unit, and in total, and changes in the carrying amounts, as of the dates indicated is as follows: | |||||||||||||||||||||||||
In thousands | Americas | EMEA | APAC | Consolidated | |||||||||||||||||||||
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 | |||||||||||||||||
Foreign currency translation and other | (817 | ) | — | — | (817 | ) | |||||||||||||||||||
Gross goodwill | 73,598 | 178,197 | 135,752 | 387,547 | |||||||||||||||||||||
Accumulated impairment losses | — | (178,197 | ) | (129,545 | ) | (307,742 | ) | ||||||||||||||||||
Net goodwill at January 31, 2015 | $ | 73,598 | $ | — | $ | 6,207 | $ | 79,805 | |||||||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
Each reporting period, the Company evaluates the realizability of all of its deferred tax assets in each tax jurisdiction. As of January 31, 2015, the Company continued to maintain a full valuation allowance against its net deferred tax assets in certain jurisdictions in each of its four operating segments due to sustained pre-tax losses. As a result of the valuation allowances recorded, no tax benefits have been recognized for losses incurred in those tax jurisdictions for the first quarters of fiscal 2015 and 2014. | |
The Company's hedging instruments in Europe generated tax expense of approximately $5 million within other comprehensive income in the first quarter of fiscal 2015. However, as the Company does not expect to pay income tax after application of available loss carryforwards, an offsetting income tax benefit was recognized within continuing operations. Before this tax benefit, the Company generated income tax expense in the first quarter ended January 31, 2015 due to being unable to record tax benefits against the losses in certain jurisdictions where the Company has previously recorded valuation allowances. | |
As of January 31, 2015, the Company’s liability for uncertain tax positions was approximately $12 million resulting from unrecognized tax benefits, excluding interest and penalties. If the Company’s positions are favorably sustained by the relevant taxing authority, approximately $11 million (excluding interest and penalties) of uncertain tax position liabilities would favorably impact the Company’s effective tax rate in future periods. | |
During the next 12 months, it is reasonably possible that the Company’s liability for uncertain tax positions may change by a significant amount as a result of the resolution or payment of uncertain tax positions. The Company believes the outcomes which are reasonably possible within the next 12 months range from a reduction of the liability for unrecognized tax benefits of $10 million to an increase of the liability of $4 million, excluding penalties and interest, for its existing tax positions. |
Restructuring_Charges
Restructuring Charges | 3 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
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 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 cost of goods sold ("COGS") in the Company’s condensed 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, 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 | |||||||
Charged to expense | 507 | 401 | 908 | ||||||||||
Cash payments | (5,037 | ) | (1,968 | ) | (7,005 | ) | |||||||
Adjustments | — | (1,976 | ) | (1,976 | ) | ||||||||
Balance, January 31, 2015 | $ | 6,980 | $ | 8,748 | $ | 15,728 | |||||||
Amounts charged to expense during the three months ended January 31, 2015 were primarily composed of severance charges for employees, as well as early lease exit costs. The majority of these charges were within the Americas and EMEA segments. The Company recorded an adjustment to its facility and other restructuring liabilities upon completion of a sub-lease agreement within the Americas segment at more favorable terms than originally expected. | |||||||||||||
In addition to the restructuring charges noted above, the Company also recorded $2 million of additional expenses within SG&A during the three months ended January 31, 2014, related to certain non-core brands and peripheral product categories that have been discontinued, which are not reflected in the table above. |
Debt
Debt | 3 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
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: | |||||||||||
In thousands | Maturity | January 31, | October 31, | ||||||||
2015 | 2014 | ||||||||||
Lines of credit - 0.8% Floating | 31-Oct-16 | $ | 31,093 | $ | 32,929 | ||||||
2017 Notes - 8.875% Fixed | 15-Dec-17 | 225,959 | 252,188 | ||||||||
ABL Credit Facility - 2.1% to 4.6% Floating | 24-May-18 | 39,869 | 35,933 | ||||||||
2018 Notes - 7.875% Fixed | 1-Aug-18 | 278,894 | 278,834 | ||||||||
2020 Notes - 10.000% Fixed | 1-Aug-20 | 222,662 | 222,582 | ||||||||
Capital lease obligations and other borrowings - Various % | Various | 4,925 | 6,124 | ||||||||
Total debt | 803,402 | 828,590 | |||||||||
Less current portion | (33,354 | ) | (35,361 | ) | |||||||
Long-term debt, net of current portion | $ | 770,048 | $ | 793,229 | |||||||
As of January 31, 2015, the Company’s credit facilities allowed for total cash borrowings and letters of credit of $169 million. The total maximum borrowings and actual availability fluctuate with the amount of assets comprising the borrowing base under certain of the credit facilities. At January 31, 2015, the Company had a total of $71 million of direct borrowings and $23 million in letters of credit outstanding. As of January 31, 2015, the remaining availability for borrowings under the Company’s credit facilities was $60 million, $48 million of which could also be used for letters of credit in the United States and APAC. In addition to the $60 million of availability for borrowings, the Company also had $15 million in additional capacity for letters of credit in EMEA as of January 31, 2015. Many of the Company’s debt agreements contain customary default provisions and restrictive covenants. The Company is not subject to financial covenant restrictions unless remaining borrowing availability under the ABL Credit Facility was to fall below the greater of $15 million or 10.0% of total borrowing base availability. | |||||||||||
The estimated fair value of the Company’s borrowings under lines of credit and long-term debt as of January 31, 2015 was $715 million, compared to a carrying value of $803 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 prices of the Company’s 2018 Notes and 2017 Notes (all Level 1 inputs) and the carrying values of the Company’s other debt obligations due to the variable rate nature of those debt obligations. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
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 condensed 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. The results of derivative financial instruments are recorded in cash flows from operating activities on the condensed consolidated statements of cash flows. | |||||||||||||||||
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 accumulated other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. As of January 31, 2015, the Company was hedging a portion of forecasted transactions expected to occur through January 2016. Assuming January 31, 2015 exchange rates remain constant, $20 million of gains, net of tax, related to hedges of these transactions are expected to be reclassified into earnings over the next 12 months. For additional information of the gains/losses related to hedging, see Note 14 — Accumulated Other Comprehensive Income. | |||||||||||||||||
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 $3 million and $(0.2) million for the three months ended January 31, 2015 and 2014, 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 January 31, 2015, the Company had the following outstanding derivative contracts that were entered into to hedge forecasted purchases: | |||||||||||||||||
In thousands | Commodity | Notional | Maturity | Fair | |||||||||||||
Amount | Value | ||||||||||||||||
United States dollars | Inventory | $ | 216,104 | February 2015 – January 2016 | $ | 30,994 | |||||||||||
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 table reflects the fair values of assets and liabilities measured and recognized at fair value on a recurring basis on the accompanying condensed consolidated balance sheets as of the dates indicated: | |||||||||||||||||
Fair Value Measurements Using | Assets/(Liabilities) | ||||||||||||||||
In thousands | Level 1 | Level 2 | Level 3 | At Fair Value | |||||||||||||
January 31, 2015: | |||||||||||||||||
Derivative assets: | |||||||||||||||||
Other receivables | $ | — | $ | 30,994 | $ | — | $ | 30,994 | |||||||||
Total fair value | $ | — | $ | 30,994 | $ | — | $ | 30,994 | |||||||||
October 31, 2014: | |||||||||||||||||
Derivative assets: | |||||||||||||||||
Other receivables | $ | — | $ | 16,683 | $ | — | $ | 16,683 | |||||||||
Derivative liabilities: | |||||||||||||||||
Accrued liabilities | — | (2 | ) | — | (2 | ) | |||||||||||
Total fair value | $ | — | $ | 16,681 | $ | — | $ | 16,681 | |||||||||
Stockholders_Equity_and_Noncon
Stockholders' Equity and Non-controlling Interest | 3 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Stockholders' Equity and Non-controlling Interest | Stockholders' Equity and Non-controlling Interest | ||||||||||||
The following tables summarize the changes in equity attributable to Quiksilver, Inc. and the non-controlling interests of its consolidated subsidiaries: | |||||||||||||
Attributable to | Non- | Total | |||||||||||
Quiksilver, | controlling | Stockholders’ | |||||||||||
In thousands | Inc. | Interest | Equity | ||||||||||
Balance, October 31, 2014 | $ | 53,876 | $ | 2,358 | $ | 56,234 | |||||||
Stock-based compensation expense | 1,769 | — | 1,769 | ||||||||||
Employee stock purchase plan | 374 | — | 374 | ||||||||||
Business disposition | — | (1,570 | ) | (1,570 | ) | ||||||||
Net loss and other comprehensive loss | (29,389 | ) | (788 | ) | (30,177 | ) | |||||||
Balance, January 31, 2015 | $ | 26,630 | $ | — | $ | 26,630 | |||||||
Balance, October 31, 2013 | $ | 366,247 | $ | 17,952 | $ | 384,199 | |||||||
Stock-based compensation expense | 5,063 | — | 5,063 | ||||||||||
Exercise of stock options | 2,465 | — | 2,465 | ||||||||||
Employee stock purchase plan | 673 | — | 673 | ||||||||||
Transactions with non-controlling interest holders | (10,839 | ) | (5,434 | ) | (16,273 | ) | |||||||
Net loss and other comprehensive income | 1,769 | (464 | ) | 1,305 | |||||||||
Balance, January 31, 2014 | $ | 365,378 | $ | 12,054 | $ | 377,432 | |||||||
The business disposition in the first quarter of fiscal 2015 reflects the Company's sale of Surfdome. See Note 15 — Discontinued Operations for further information. Transactions with non-controlling interest holders reflect the Company's acquisition of the remaining non-controlling interests of its Brazil and Mexico subsidiaries in the first quarter of fiscal 2014. |
Litigation_Indemnities_and_Gua
Litigation, Indemnities and Guarantees | 3 Months Ended |
Jan. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation, Indemnities and Guarantees | Litigation, Indemnities and Guarantees |
As part of its global operations, the Company may be involved in legal claims involving trademarks, intellectual property, licensing, employment matters, compliance, contracts and other matters incidental to its business. The Company believes the resolution of any such matter, individually and in aggregate, currently threatened or pending will not have a material adverse effect on its financial condition, results of operations or liquidity. | |
During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These include (i) intellectual property indemnities to the Company’s customers and licensees in connection with the use, sale and/or license of the Company’s products, (ii) indemnities to various lessors in connection with facility leases for certain claims arising from such facilities or leases, (iii) indemnities to vendors and service providers pertaining to claims based on the negligence or willful misconduct of the Company, and (iv) indemnities involving the accuracy of representations and warranties in certain contracts. The duration of these indemnities, commitments and guarantees varies and, in certain cases, may be indefinite. The majority of these indemnities, commitments and guarantees do not provide for any limitation of the maximum potential for future payments the Company could be obligated to make. The Company has not recorded any liability for these indemnities, commitments and guarantees in the accompanying condensed consolidated balance sheets. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
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: | |||||||||||||
Derivative | Foreign | Total | |||||||||||
Instruments | Currency | ||||||||||||
In thousands | Adjustments | ||||||||||||
Balance, October 31, 2014 | $ | 4,093 | $ | 53,195 | $ | 57,288 | |||||||
Net gains reclassified to COGS | (2,918 | ) | — | (2,918 | ) | ||||||||
Changes in fair value, net of tax | 18,442 | (34,143 | ) | (15,701 | ) | ||||||||
Balance, January 31, 2015 | $ | 19,617 | $ | 19,052 | $ | 38,669 | |||||||
Balance, October 31, 2013 | $ | (4,591 | ) | $ | 78,509 | $ | 73,918 | ||||||
Net loss reclassified to COGS | 186 | — | 186 | ||||||||||
Changes in fair value, net of tax | 6,107 | (20,715 | ) | (14,608 | ) | ||||||||
Balance, January 31, 2014 | $ | 1,702 | $ | 57,794 | $ | 59,496 | |||||||
Discontinued_Operations
Discontinued Operations | 3 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
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"), its subsidiary that owned and operated the "Hawk" brand, for $19 million. These transactions resulted in an after-tax gain of approximately $38 million during the first quarter of fiscal 2014, which is included in income from discontinued operations in the table below. 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. The sale resulted in an after-tax gain of $7 million in the first quarter of fiscal 2015, which is included in income from discontinued operations in the table below. 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 condensed consolidated financial statements for all periods presented. The Company’s sale of the Mervin and Hawk businesses generated income tax expense of approximately $10 million within discontinued operations during the first quarter of fiscal 2014. However, as the Company does not expect to pay income tax after application of available loss carry-forwards, an offsetting income tax benefit was recognized within continuing operations. | |||||||||
The operating results of discontinued operations for the three months ended January 31, 2015 and 2014 are as follows: | |||||||||
Three Months Ended January 31, | |||||||||
In thousands | 2015 | 2014 | |||||||
Revenues, net | $ | 13,239 | $ | 20,162 | |||||
Income before income taxes | 6,785 | 48,094 | |||||||
Provision for income taxes | 53 | 10,477 | |||||||
Income from discontinued operations | 6,732 | 37,617 | |||||||
Less: net loss attributable to non-controlling interest | 788 | 103 | |||||||
Income from discontinued operations attributable to Quiksilver, Inc. | $ | 7,520 | $ | 37,720 | |||||
There were no assets classified as held for sale at January 31, 2015. The components of major assets and liabilities held for sale at October 31, 2014 were as follows: | |||||||||
In thousands | 31-Oct-14 | ||||||||
Assets: | |||||||||
Inventories | $ | 19,659 | |||||||
Other | 6,000 | ||||||||
Total | $ | 25,659 | |||||||
Liabilities: | |||||||||
Accounts payable | $ | 12,520 | |||||||
Accrued liabilities | 120 | ||||||||
Deferred tax liabilities | 626 | ||||||||
Total | $ | 13,266 | |||||||
Total assets held for sale as of October 31, 2014 by segment were as follows: | |||||||||
In thousands | 31-Oct-14 | ||||||||
Americas | $ | 28 | |||||||
EMEA | 25,631 | ||||||||
APAC | — | ||||||||
Total | $ | 25,659 | |||||||
Condensed_Consolidation_Financ
Condensed Consolidation Financial Information | 3 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||
Condensed Consolidating Financial Information | Condensed Consolidation 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 existing 100% owned domestic subsidiaries. | |||||||||||||||||||||||||
The Company presents condensed consolidating financial information for Quiksilver, Inc. and its domestic subsidiaries within the notes to the condensed consolidated financial statements in accordance with the criteria established for parent companies in the SEC’s Regulation S-X, Rule 3-10(f). The following condensed consolidating financial information presents the results of operations for the three months ended January 31, 2015 and 2014, the financial position as of January 31, 2015 and October 31, 2014, and cash flows for the three months ended January 31, 2015 and 2014, 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. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. | |||||||||||||||||||||||||
QUIKSILVER, INC. | |||||||||||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||||||
Three Months Ended January 31, 2015 | |||||||||||||||||||||||||
In thousands | Quiksilver, Inc. | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||||
Revenues, net | $ | 116 | $ | 71,536 | $ | 68,535 | $ | 229,897 | $ | (29,230 | ) | $ | 340,854 | ||||||||||||
Cost of goods sold | — | 44,052 | 45,091 | 109,077 | (26,810 | ) | 171,410 | ||||||||||||||||||
Gross profit | 116 | 27,484 | 23,444 | 120,820 | (2,420 | ) | 169,444 | ||||||||||||||||||
Selling, general and administrative expense | 2,475 | 28,778 | 29,705 | 111,496 | (1,950 | ) | 170,504 | ||||||||||||||||||
Asset impairments | — | — | — | 255 | — | 255 | |||||||||||||||||||
Operating (loss)/income | (2,359 | ) | (1,294 | ) | (6,261 | ) | 9,069 | (470 | ) | (1,315 | ) | ||||||||||||||
Interest expense, net | 11,645 | 747 | (2 | ) | 6,012 | — | 18,402 | ||||||||||||||||||
Foreign currency (gain)/loss | (158 | ) | (618 | ) | 402 | 1,031 | — | 657 | |||||||||||||||||
Equity in earnings | (3,106 | ) | (324 | ) | — | — | 3,430 | — | |||||||||||||||||
(Loss)/income before provision/(benefit) for income taxes | (10,740 | ) | (1,099 | ) | (6,661 | ) | 2,026 | (3,900 | ) | (20,374 | ) | ||||||||||||||
Provision/(benefit) for income taxes | 30 | 146 | 303 | (2,563 | ) | — | (2,084 | ) | |||||||||||||||||
(Loss)/income from continuing operations | (10,770 | ) | (1,245 | ) | (6,964 | ) | 4,589 | (3,900 | ) | (18,290 | ) | ||||||||||||||
(Loss)/income from discontinued operations | — | — | (2 | ) | 6,734 | — | 6,732 | ||||||||||||||||||
Net (loss)/income | (10,770 | ) | (1,245 | ) | (6,966 | ) | 11,323 | (3,900 | ) | (11,558 | ) | ||||||||||||||
Net loss attributable to non-controlling interest | — | — | — | 788 | — | 788 | |||||||||||||||||||
Net (loss)/income attributable to Quiksilver, Inc. | (10,770 | ) | (1,245 | ) | (6,966 | ) | 12,111 | (3,900 | ) | (10,770 | ) | ||||||||||||||
Other comprehensive loss | (18,619 | ) | — | — | (18,619 | ) | 18,619 | (18,619 | ) | ||||||||||||||||
Comprehensive (loss)/income attributable to Quiksilver, Inc. | $ | (29,389 | ) | $ | (1,245 | ) | $ | (6,966 | ) | $ | (6,508 | ) | $ | 14,719 | $ | (29,389 | ) | ||||||||
QUIKSILVER, INC. | |||||||||||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||||||
Three Months Ended January 31, 2014 | |||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||||||
Revenues, net | $ | 116 | $ | 85,536 | $ | 98,741 | $ | 269,770 | $ | (59,253 | ) | $ | 394,910 | ||||||||||||
Cost of goods sold | — | 51,264 | 68,202 | 119,784 | (44,980 | ) | 194,270 | ||||||||||||||||||
Gross profit | 116 | 34,272 | 30,539 | 149,986 | (14,273 | ) | 200,640 | ||||||||||||||||||
Selling, general and administrative expense | 9,025 | 55,966 | 22,668 | 121,057 | (4,932 | ) | 203,784 | ||||||||||||||||||
Asset impairments | — | — | 222 | 661 | — | 883 | |||||||||||||||||||
Operating (loss)/income | (8,909 | ) | (21,694 | ) | 7,649 | 28,268 | (9,341 | ) | (4,027 | ) | |||||||||||||||
Interest expense, net | 11,600 | 1,010 | — | 6,810 | — | 19,420 | |||||||||||||||||||
Foreign currency loss/(gain) | 36 | (10 | ) | (224 | ) | 3,026 | — | 2,828 | |||||||||||||||||
Equity in earnings | (35,932 | ) | 74 | — | — | 35,858 | — | ||||||||||||||||||
Income/(loss) before (benefit)/provision for income taxes | 15,387 | (22,768 | ) | 7,873 | 18,432 | (45,199 | ) | (26,275 | ) | ||||||||||||||||
(Benefit)/provision for income taxes | — | (6,169 | ) | (3,945 | ) | 5,729 | — | (4,385 | ) | ||||||||||||||||
Income/(loss) from continuing operations | 15,387 | (16,599 | ) | 11,818 | 12,703 | (45,199 | ) | (21,890 | ) | ||||||||||||||||
Income from discontinued operations | — | 23,922 | 13,531 | 164 | — | 37,617 | |||||||||||||||||||
Net income | 15,387 | 7,323 | 25,349 | 12,867 | (45,199 | ) | 15,727 | ||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 464 | — | 464 | |||||||||||||||||||
Net income attributable to Quiksilver, Inc. | 15,387 | 7,323 | 25,349 | 13,331 | (45,199 | ) | 16,191 | ||||||||||||||||||
Other comprehensive loss | (14,422 | ) | — | — | (14,422 | ) | 14,422 | (14,422 | ) | ||||||||||||||||
Comprehensive income/(loss) attributable to Quiksilver, Inc. | $ | 965 | $ | 7,323 | $ | 25,349 | $ | (1,091 | ) | $ | (30,777 | ) | $ | 1,769 | |||||||||||
QUIKSILVER, INC. | |||||||||||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
January 31, 2015 | |||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 157 | $ | 17,392 | $ | (4,353 | ) | $ | 47,460 | $ | — | $ | 60,656 | ||||||||||||
Restricted cash | — | — | — | 1,745 | — | 1,745 | |||||||||||||||||||
Trade accounts receivable, net | — | 44,120 | 22,138 | 192,694 | — | 258,952 | |||||||||||||||||||
Other receivables | 10 | 2,185 | 1,476 | 47,459 | (29 | ) | 51,101 | ||||||||||||||||||
Inventories | — | 33,719 | 75,499 | 218,634 | (21,733 | ) | 306,119 | ||||||||||||||||||
Deferred income taxes | — | 21,554 | — | 4,533 | (21,554 | ) | 4,533 | ||||||||||||||||||
Prepaid expenses and other current assets | 1,593 | 8,705 | 3,039 | 17,978 | — | 31,315 | |||||||||||||||||||
Intercompany balances | — | 256,475 | — | — | (256,475 | ) | — | ||||||||||||||||||
Total current assets | 1,760 | 384,150 | 97,799 | 530,503 | (299,791 | ) | 714,421 | ||||||||||||||||||
Restricted cash | — | — | — | 3,918 | — | 3,918 | |||||||||||||||||||
Fixed assets, net | 19,754 | 32,336 | 21,783 | 120,234 | — | 194,107 | |||||||||||||||||||
Intangible assets, net | 8,533 | 43,655 | 1,109 | 83,868 | — | 137,165 | |||||||||||||||||||
Goodwill | — | 61,983 | 11,089 | 6,733 | — | 79,805 | |||||||||||||||||||
Other assets | 6,682 | 4,955 | 916 | 27,393 | — | 39,946 | |||||||||||||||||||
Deferred income taxes long-term | 30,807 | — | 2,052 | 14,352 | (32,859 | ) | 14,352 | ||||||||||||||||||
Investment in subsidiaries | 728,200 | 1,849 | — | — | (730,049 | ) | — | ||||||||||||||||||
Total assets | $ | 795,736 | $ | 528,928 | $ | 134,748 | $ | 787,001 | $ | (1,062,699 | ) | $ | 1,183,714 | ||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Lines of credit | $ | — | $ | — | $ | — | $ | 31,093 | $ | — | $ | 31,093 | |||||||||||||
Accounts payable | 2,373 | 36,163 | 18,760 | 116,794 | — | 174,090 | |||||||||||||||||||
Accrued liabilities | 29,258 | 12,435 | 6,157 | 53,741 | — | 101,591 | |||||||||||||||||||
Current portion of long-term debt | — | 600 | — | 1,661 | — | 2,261 | |||||||||||||||||||
Income taxes payable | — | 720 | — | 1,814 | (29 | ) | 2,505 | ||||||||||||||||||
Deferred income taxes | 31,450 | — | 4,925 | 4,669 | (21,554 | ) | 19,490 | ||||||||||||||||||
Intercompany balances | 203,267 | — | 39,528 | 13,680 | (256,475 | ) | — | ||||||||||||||||||
Total current liabilities | 266,348 | 49,918 | 69,370 | 223,452 | (278,058 | ) | 331,030 | ||||||||||||||||||
Long-term debt | 501,556 | 28,580 | — | 239,912 | — | 770,048 | |||||||||||||||||||
Other long-term liabilities | 1,202 | 7,178 | 7,514 | 18,808 | — | 34,702 | |||||||||||||||||||
Deferred income taxes long-term | — | 38,052 | — | 16,111 | (32,859 | ) | 21,304 | ||||||||||||||||||
Total liabilities | 769,106 | 123,728 | 76,884 | 498,283 | (310,917 | ) | 1,157,084 | ||||||||||||||||||
Stockholders’/invested equity | 26,630 | 405,200 | 57,864 | 288,718 | (751,782 | ) | 26,630 | ||||||||||||||||||
Total liabilities and equity | $ | 795,736 | $ | 528,928 | $ | 134,748 | $ | 787,001 | $ | (1,062,699 | ) | $ | 1,183,714 | ||||||||||||
QUIKSILVER, INC. | |||||||||||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
October 31, 2014 | |||||||||||||||||||||||||
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 | — | 51,663 | 34,779 | 224,572 | — | 311,014 | |||||||||||||||||||
Other receivables | 10 | 3,402 | 1,071 | 36,644 | (280 | ) | 40,847 | ||||||||||||||||||
Inventories | — | 25,681 | 72,761 | 203,529 | (17,454 | ) | 284,517 | ||||||||||||||||||
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 | 370,184 | 108,879 | 558,286 | (298,096 | ) | 741,000 | ||||||||||||||||||
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 | 722,935 | 1,525 | — | — | (724,460 | ) | — | ||||||||||||||||||
Assets held for sale, net of current portion | — | — | — | 5,394 | — | 5,394 | |||||||||||||||||||
Total assets | $ | 789,641 | $ | 533,588 | $ | 145,684 | $ | 842,484 | $ | (1,055,415 | ) | $ | 1,255,982 | ||||||||||||
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 | — | — | — | 1,404 | (280 | ) | 1,124 | ||||||||||||||||||
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 | 13,260 | — | 13,266 | |||||||||||||||||||
Total current liabilities | 233,170 | 56,634 | 73,434 | 267,791 | (280,642 | ) | 350,387 | ||||||||||||||||||
Long-term debt | 501,416 | 22,657 | — | 269,156 | — | 793,229 | |||||||||||||||||||
Other long-term liabilities | 1,179 | 9,800 | 7,420 | 20,943 | — | 39,342 | |||||||||||||||||||
Deferred income taxes long-term | — | 38,052 | — | 11,597 | (32,859 | ) | 16,790 | ||||||||||||||||||
Total liabilities | 735,765 | 127,143 | 80,854 | 569,487 | (313,501 | ) | 1,199,748 | ||||||||||||||||||
Stockholders’/invested equity | 53,876 | 406,445 | 64,830 | 270,639 | (741,914 | ) | 53,876 | ||||||||||||||||||
Non-controlling interest | — | — | — | 2,358 | — | 2,358 | |||||||||||||||||||
Total liabilities and equity | $ | 789,641 | $ | 533,588 | $ | 145,684 | $ | 842,484 | $ | (1,055,415 | ) | $ | 1,255,982 | ||||||||||||
QUIKSILVER, INC. | |||||||||||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
Three Months Ended January 31, 2015 | |||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||
Net (loss)/income | $ | (10,770 | ) | $ | (1,245 | ) | $ | (6,966 | ) | $ | 11,323 | $ | (3,900 | ) | $ | (11,558 | ) | ||||||||
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | |||||||||||||||||||||||||
Income from discontinued operations | — | — | 2 | (6,734 | ) | — | (6,732 | ) | |||||||||||||||||
Depreciation and amortization | 738 | 2,373 | 1,573 | 6,074 | — | 10,758 | |||||||||||||||||||
Stock-based compensation | 1,769 | — | — | — | — | 1,769 | |||||||||||||||||||
Provision for doubtful accounts | — | 82 | 206 | 1,310 | — | 1,598 | |||||||||||||||||||
Asset impairments | — | — | — | 255 | — | 255 | |||||||||||||||||||
Equity in earnings | (3,106 | ) | (324 | ) | — | 596 | 3,430 | 596 | |||||||||||||||||
Non-cash interest expense | 507 | 299 | — | 51 | — | 857 | |||||||||||||||||||
Deferred income taxes | — | — | — | (5,225 | ) | — | (5,225 | ) | |||||||||||||||||
Other adjustments to reconcile net (loss)/income | (154 | ) | (615 | ) | 384 | 80 | — | (305 | ) | ||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||
Trade accounts receivable | — | 7,461 | 12,437 | 12,329 | — | 32,227 | |||||||||||||||||||
Inventories | — | (8,038 | ) | (2,267 | ) | (29,889 | ) | 470 | (39,724 | ) | |||||||||||||||
Intercompany | 16,346 | 18,607 | (28,061 | ) | (6,892 | ) | — | — | |||||||||||||||||
Other operating assets and liabilities | 8,992 | (10,697 | ) | (2,109 | ) | 14,483 | — | 10,669 | |||||||||||||||||
Cash (used in)/provided by operating activities of continuing operations | 14,322 | 7,903 | (24,801 | ) | (2,239 | ) | — | (4,815 | ) | ||||||||||||||||
Cash used in operating activities of discontinued operations | — | — | (2 | ) | 4,670 | — | 4,668 | ||||||||||||||||||
Net cash (used in)/provided by operating activities | 14,322 | 7,903 | (24,803 | ) | 2,431 | — | (147 | ) | |||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||
Proceeds from the sale of properties and equipment | — | — | — | 455 | — | 455 | |||||||||||||||||||
Capital expenditures | (2,000 | ) | (887 | ) | (4,318 | ) | (8,739 | ) | — | (15,944 | ) | ||||||||||||||
Changes in restricted cash | — | 16,514 | — | (976 | ) | — | 15,538 | ||||||||||||||||||
Cash used in investing activities of continuing operations | (2,000 | ) | 15,627 | (4,318 | ) | (9,260 | ) | — | 49 | ||||||||||||||||
Cash provided by investing activities of discontinued operations | — | — | — | 10,713 | — | 10,713 | |||||||||||||||||||
Net cash (used in)/provided by investing activities | (2,000 | ) | 15,627 | (4,318 | ) | 1,453 | — | 10,762 | |||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Borrowings on lines of credit | — | — | — | 11,770 | — | 11,770 | |||||||||||||||||||
Payments on lines of credit | — | — | — | (16,575 | ) | — | (16,575 | ) | |||||||||||||||||
Borrowings on long-term debt | — | 22,515 | — | 20,219 | — | 42,734 | |||||||||||||||||||
Payments on long-term debt | — | (16,600 | ) | — | (15,820 | ) | — | (32,420 | ) | ||||||||||||||||
Stock option exercises and employee stock purchases | 372 | — | — | — | — | 372 | |||||||||||||||||||
Intercompany | (12,549 | ) | (14,920 | ) | 27,469 | — | — | — | |||||||||||||||||
Cash provided by financing activities of continuing operations | (12,177 | ) | (9,005 | ) | 27,469 | (406 | ) | — | 5,881 | ||||||||||||||||
Net cash provided by financing activities | (12,177 | ) | (9,005 | ) | 27,469 | (406 | ) | — | 5,881 | ||||||||||||||||
Effect of exchange rate changes on cash | (146 | ) | — | — | (2,358 | ) | — | (2,504 | ) | ||||||||||||||||
Net increase/(decrease) in cash and cash equivalents | (1 | ) | 14,525 | (1,652 | ) | 1,120 | — | 13,992 | |||||||||||||||||
Cash and cash equivalents, beginning of period | 158 | 2,867 | (2,701 | ) | 46,340 | — | 46,664 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 157 | $ | 17,392 | $ | (4,353 | ) | $ | 47,460 | $ | — | $ | 60,656 | ||||||||||||
QUIKSILVER, INC. | |||||||||||||||||||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
Three Months Ended January 31, 2014 | |||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||
Net income | $ | 15,387 | $ | 7,323 | $ | 25,349 | $ | 12,867 | $ | (45,199 | ) | $ | 15,727 | ||||||||||||
Adjustments to reconcile net income to net cash (used in)/provided by operating activities: | |||||||||||||||||||||||||
Income from discontinued operations | — | (23,922 | ) | (13,531 | ) | (164 | ) | — | (37,617 | ) | |||||||||||||||
Depreciation and amortization | 585 | 2,589 | 1,330 | 6,041 | — | 10,545 | |||||||||||||||||||
Stock-based compensation | 5,063 | — | — | — | — | 5,063 | |||||||||||||||||||
Provision for doubtful accounts | — | 1,088 | (209 | ) | 783 | — | 1,662 | ||||||||||||||||||
Asset impairments | — | — | 222 | 661 | — | 883 | |||||||||||||||||||
Equity in earnings | (35,932 | ) | 74 | — | 352 | 35,858 | 352 | ||||||||||||||||||
Non-cash interest expense | 462 | 239 | — | 213 | — | 914 | |||||||||||||||||||
Deferred income taxes | — | — | — | 5 | — | 5 | |||||||||||||||||||
Other adjustments to reconcile net income | 35 | (9 | ) | (219 | ) | 2,992 | — | 2,799 | |||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||
Trade accounts receivable | — | 10,795 | 12,403 | 38,707 | — | 61,905 | |||||||||||||||||||
Inventories | — | (8,275 | ) | (2,386 | ) | (29,849 | ) | 9,341 | (31,169 | ) | |||||||||||||||
Other operating assets and liabilities | 12,141 | (11,998 | ) | (16,366 | ) | (18,962 | ) | — | (35,185 | ) | |||||||||||||||
Cash (used in)/provided by operating activities of continuing operations | (2,259 | ) | (22,096 | ) | 6,593 | 13,646 | — | (4,116 | ) | ||||||||||||||||
Cash used in by operating activities of discontinued operations | — | — | (1,861 | ) | (5,334 | ) | — | (7,195 | ) | ||||||||||||||||
Net cash (used in)/provided by operating activities | (2,259 | ) | (22,096 | ) | 4,732 | 8,312 | — | (11,311 | ) | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||
Capital expenditures | (1,970 | ) | (2,397 | ) | (1,299 | ) | (4,892 | ) | — | (10,558 | ) | ||||||||||||||
Changes in restricted cash | — | (60,214 | ) | — | (403 | ) | — | (60,617 | ) | ||||||||||||||||
Cash used in investing activities of continuing operations | (1,970 | ) | (62,611 | ) | (1,299 | ) | (5,295 | ) | — | (71,175 | ) | ||||||||||||||
Cash provided by/(used) in investing activities of discontinued operations | — | 58,060 | 18,991 | (332 | ) | — | 76,719 | ||||||||||||||||||
Net cash (used in)/provided by investing activities | (1,970 | ) | (4,551 | ) | 17,692 | (5,627 | ) | — | 5,544 | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Borrowings on lines of credit | — | — | — | 18,904 | — | 18,904 | |||||||||||||||||||
Payments on lines of credit | — | — | — | (16,591 | ) | — | (16,591 | ) | |||||||||||||||||
Borrowings on long-term debt | — | 40,500 | — | 11,562 | — | 52,062 | |||||||||||||||||||
Payments on long-term debt | — | (18,500 | ) | — | (15,279 | ) | — | (33,779 | ) | ||||||||||||||||
Payments of debt issuance costs | (373 | ) | 38 | — | — | — | (335 | ) | |||||||||||||||||
Stock option exercises and employee stock purchases | 3,138 | — | — | — | — | 3,138 | |||||||||||||||||||
Intercompany | 1,463 | 8,134 | (24,659 | ) | 15,062 | — | — | ||||||||||||||||||
Cash provided by/(used in) financing activities of continuing operations | 4,228 | 30,172 | (24,659 | ) | 13,658 | — | 23,399 | ||||||||||||||||||
Net cash provided by/(used in) financing activities | 4,228 | 30,172 | (24,659 | ) | 13,658 | — | 23,399 | ||||||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (4,924 | ) | — | (4,924 | ) | |||||||||||||||||
Net (decrease)/increase in cash and cash equivalents | (1 | ) | 3,525 | (2,235 | ) | 11,419 | — | 12,708 | |||||||||||||||||
Cash and cash equivalents, beginning of period | 35 | 3,733 | 296 | 53,216 | — | 57,280 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 34 | $ | 7,258 | $ | (1,939 | ) | $ | 64,635 | $ | — | $ | 69,988 | ||||||||||||
Restatement_of_Prior_Period_Fi
Restatement of Prior Period Financial Statements | 3 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||
Restatement of Prior Period Financial Statements | Restatement of Prior Period Financial Statements | ||||||||
Subsequent to the issuance of the Company's consolidated financial statements for the year ended October 31, 2014, the Company identified errors related to inappropriate revenue cutoff (revenues inappropriately recognized prior to meeting the GAAP revenue recognition criteria) that impacted prior periods, including each quarter of fiscal 2014 and earlier periods. The Company determined that certain shipments previously reported as revenue in its Americas wholesale channel did not meet the criteria for revenue recognition until the subsequent quarter when the shipments were delivered to, and accepted by, its wholesale customers. The impact of the inappropriate revenue cutoff was to understate net revenue and gross margin and to overstate accumulated deficit for the three month period ended January 31, 2014. For fiscal 2014 as a whole, the impact of this error was to overstate net revenue and gross margin and to understate accumulated deficit. | |||||||||
The Company assessed the materiality of these errors to each of the 2014, 2013 and 2012 fiscal years, as well as to each quarter of fiscal 2014, in accordance with the Securities and Exchange Commission's Staff Accounting Bulletin ("SAB") No. 99 and concluded that the errors were not material to any of these periods. However, the Company also concluded that recording an out of period correction would be material to the three months ended January 31, 2015, as it would materially understate first quarter results and key revenue trends within its Americas segment. Consequently, in accordance with SAB No. 108, the accompanying condensed consolidated statement of operations for the first quarter ended January 31, 2014 and condensed consolidated balance sheet as of October 31, 2014 have been revised to correct for these immaterial errors. | |||||||||
During the first quarter of fiscal 2015, the Company also identified an error in the recording of estimated non-cash impairment charges within discontinued operations related to Surfdome in the fourth quarter of fiscal 2014. The impact of this error was to understate assets held for sale, accumulated other comprehensive income, and non-controlling interest, and to overstate accumulated deficit as of October 31, 2014. The Company assessed the materiality of this error and concluded it was not material to previously reported annual and interim amounts. The Company corrected the error in the first quarter of fiscal 2015 in connection with the closing of the sale of Surfdome. | |||||||||
The table below is a summary of the impact of these corrections: | |||||||||
In thousands | As Previously Reported | As Restated | |||||||
Selected Balance Sheet Data: | |||||||||
At October 31, 2014: | |||||||||
Trade accounts receivable | $ | 319,840 | $ | 311,014 | |||||
Inventories | 278,780 | 284,517 | |||||||
Total current assets | 744,089 | 741,000 | |||||||
Assets held for sale, net of current portion | 2,987 | 5,394 | |||||||
Total assets | 1,256,664 | 1,255,982 | |||||||
Income taxes payable | 1,156 | 1,124 | |||||||
Current portion of assets held for sale | 12,640 | 13,266 | |||||||
Total current liabilities | 349,793 | 350,387 | |||||||
Total liabilities | 1,199,154 | 1,199,748 | |||||||
Accumulated deficit | (585,263 | ) | (587,407 | ) | |||||
Accumulated other comprehensive income | 57,298 | 57,288 | |||||||
Total Quiksilver, Inc. stockholders' equity | 56,030 | 53,876 | |||||||
Non-controlling interest | 1,480 | 2,358 | |||||||
Total equity | 57,510 | 56,234 | |||||||
Selected Statement of Operations Data: | |||||||||
For the Three Months Ended January 31, 2014: | |||||||||
Revenues, net | $ | 392,612 | $ | 394,910 | |||||
Gross margin | 199,836 | 200,640 | |||||||
Operating loss | (4,831 | ) | (4,027 | ) | |||||
Loss from continuing operations | (22,694 | ) | (21,890 | ) | |||||
Net income attributable to Quiksilver, Inc. | 15,387 | 16,191 | |||||||
Net income per share attributable to Quiksilver, Inc. | $ | 0.09 | $ | 0.1 | |||||
Selected Americas Segment Data: | |||||||||
For the Three Months Ended January 31, 2014: | |||||||||
Revenues, net | $ | 173,165 | $ | 175,463 | |||||
Gross margin | 75,110 | 75,914 | |||||||
Operating loss | (14,673 | ) | (13,869 | ) | |||||
Selected Segment Data: | |||||||||
At October 31, 2014: | |||||||||
Americas identifiable assets | $ | 467,920 | $ | 464,831 | |||||
EMEA identifiable assets | 510,896 | 513,303 | |||||||
The correction of these errors had no net impact on the Company’s net cash used in operating activities for the three months ended January 31, 2014. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended | |
Jan. 31, 2015 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of Presentation | Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statement presentation. | ||
Quiksilver, Inc. and its subsidiaries (the “Company”) has included all adjustments, consisting only of normal and recurring adjustments, necessary for a fair presentation of the results of operations for all periods presented. The Company's fiscal year ends on October 31 (for example, “fiscal 2015” refers to the year ending October 31, 2015). The condensed consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended October 31, 2014 included in the Company’s most recent Annual Report on Form 10-K. Interim results are not necessarily indicative of results for the full year. | ||
Principles of Consolidation | Principles of Consolidation | |
The consolidated financial statements include the accounts of Quiksilver, Inc. and its subsidiaries. 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 of fiscal 2014. In December 2014, the Company sold its majority stake in Surfdome Shop, Ltd. ("Surfdome") for net proceeds of approximately $16 million. As a result, the Company reported 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 condensed consolidated balance sheets (see Note 15 — Discontinued Operations). Unless otherwise indicated, the disclosures accompanying the condensed consolidated financial statements reflect the Company's continuing operations. | ||
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. | ||
Fair Value Measurements | Fair Value Measurements | |
Accounting Standards Codification 820, “Fair Value Measurements and Disclosures,” ("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. | ||
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. | ||
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. | ||
New Accounting Pronouncements | New Accounting Pronouncements | |
Accounting Standards Adopted | ||
In November 2014, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2014-17, Pushdown Accounting, which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The Company adopted this guidance on November 18, 2014, the effective date of ASU 2014-17. The adoption of this guidance did not impact the Company's condensed consolidated financial statements and disclosures. | ||
In January 2015, the FASB issued ASU 2015-01, Income Statement - Extraordinary and Unusual Items, which eliminates the concept of extraordinary items from GAAP, which required certain classification and presentation of extraordinary items in the income statement and disclosures. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. The Company adopted this guidance on November 1, 2014. The adoption of this guidance did not impact the Company's condensed consolidated financial statements and disclosures. | ||
Accounting Standards Not Yet Adopted | ||
In April 2014, the FASB issued 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 Information | Segment Information | |
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company currently operates in four segments: the Americas, EMEA, and APAC, each of which sells a full range of the Company’s products, as well as Corporate Operations. The Americas segment, consisting of North, South and Central America, includes revenues primarily from the United States, Canada, Brazil and Mexico. The EMEA segment, consisting of Europe, the Middle East and Africa, includes revenues primarily from continental Europe, the United Kingdom, Russia and South Africa. The APAC segment, consisting of Asia and the Pacific Rim, includes revenues primarily from Australia, Japan, New Zealand, South Korea, Taiwan and Indonesia. Costs that support all segments, including trademark protection, trademark maintenance and licensing functions, are part of Corporate Operations. Corporate Operations also includes sourcing income and gross profits earned from the Company’s licensees. | ||
Earnings 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. | |
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 condensed 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. The results of derivative financial instruments are recorded in cash flows from operating activities on the condensed consolidated statements of cash flows. | ||
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 accumulated other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. As of January 31, 2015, the Company was hedging a portion of forecasted transactions expected to occur through January 2016. Assuming January 31, 2015 exchange rates remain constant, $20 million of gains, net of tax, related to hedges of these transactions are expected to be reclassified into earnings over the next 12 months. For additional information of the gains/losses related to hedging, see Note 14 — Accumulated Other Comprehensive Income. | ||
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 $3 million and $(0.2) million for the three months ended January 31, 2015 and 2014, 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. | ||
Income Taxes | Income Taxes | |
Each reporting period, the Company evaluates the realizability of all of its deferred tax assets in each tax jurisdiction. As of January 31, 2015, the Company continued to maintain a full valuation allowance against its net deferred tax assets in certain jurisdictions in each of its four operating segments due to sustained pre-tax losses. As a result of the valuation allowances recorded, no tax benefits have been recognized for losses incurred in those tax jurisdictions for the first quarters of fiscal 2015 and 2014. |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Information Related to Company's Operating Segments | Information related to the Company's operating segments, all from continuing operations, is as follows: | ||||||||
Three Months Ended January 31, | |||||||||
In thousands | 2015 | 2014 | |||||||
Revenues, net: | |||||||||
Americas | $ | 147,767 | $ | 175,463 | |||||
EMEA | 125,813 | 149,397 | |||||||
APAC | 66,598 | 69,875 | |||||||
Corporate Operations | 676 | 175 | |||||||
Total | $ | 340,854 | $ | 394,910 | |||||
Gross profit/(loss): | |||||||||
Americas | $ | 64,309 | $ | 75,914 | |||||
EMEA | 70,500 | 87,849 | |||||||
APAC | 36,850 | 36,808 | |||||||
Corporate Operations | (2,215 | ) | 69 | ||||||
Total | $ | 169,444 | $ | 200,640 | |||||
SG&A expense: | |||||||||
Americas | $ | 70,024 | $ | 89,561 | |||||
EMEA | 66,129 | 78,208 | |||||||
APAC | 34,805 | 33,362 | |||||||
Corporate Operations | (454 | ) | 2,653 | ||||||
Total | $ | 170,504 | $ | 203,784 | |||||
Asset impairments: | |||||||||
Americas | $ | 76 | $ | 222 | |||||
EMEA | 179 | 661 | |||||||
APAC | — | — | |||||||
Corporate Operations | — | — | |||||||
Total | $ | 255 | $ | 883 | |||||
Depreciation and amortization expense: | |||||||||
Americas | $ | 4,108 | $ | 4,516 | |||||
EMEA | 3,816 | 3,287 | |||||||
APAC | 1,741 | 1,888 | |||||||
Corporate Operations | 762 | 654 | |||||||
Total | $ | 10,427 | $ | 10,345 | |||||
Operating (loss)/income: | |||||||||
Americas | $ | (5,791 | ) | $ | (13,869 | ) | |||
EMEA | 4,192 | 8,980 | |||||||
APAC | 2,045 | 3,446 | |||||||
Corporate Operations | (1,761 | ) | (2,584 | ) | |||||
Total | $ | (1,315 | ) | $ | (4,027 | ) | |||
Interest expense: | |||||||||
Americas | $ | 730 | $ | 902 | |||||
EMEA | 4,228 | 4,811 | |||||||
APAC | 526 | 587 | |||||||
Corporate Operations | 12,918 | 13,120 | |||||||
Total | $ | 18,402 | $ | 19,420 | |||||
SG&A expense by segment for the first quarter of fiscal 2014 has been reclassified to conform to the current year presentation which reflects the Company's centralization of certain global business functions and related transfer pricing allocations. | |||||||||
In thousands | January 31, | 31-Oct-14 | |||||||
2015 | |||||||||
Identifiable assets: | |||||||||
Americas | $ | 438,171 | $ | 464,831 | |||||
EMEA | 474,512 | 513,303 | |||||||
APAC | 199,964 | 202,225 | |||||||
Corporate Operations | 71,067 | 75,623 | |||||||
Total | $ | 1,183,714 | $ | 1,255,982 | |||||
Earnings_per_Share_and_StockBa1
Earnings per Share and Stock-Based Compensation (Tables) | 3 Months Ended | |||||||||||||
Jan. 31, 2015 | ||||||||||||||
Earnings per Share and Stock Based Compensation [Abstract] | ||||||||||||||
Reconciliation of Denominator of Each Net Loss per Share | The table below sets forth the reconciliation of the denominator of each net loss/income per share calculation for the three months ended January 31, 2015 and 2014: | |||||||||||||
Three Months Ended January 31, | ||||||||||||||
In thousands | 2015 | 2014 | ||||||||||||
Shares used in computing basic net loss/income per share | 171,039 | 169,747 | ||||||||||||
Dilutive effect of stock options and restricted stock(1) | — | — | ||||||||||||
Dilutive effect of stock warrants(1) | — | — | ||||||||||||
Shares used in computing diluted net loss/income per share | 171,039 | 169,747 | ||||||||||||
-1 | For the first quarter of fiscal 2015 and 2014, the shares used in computing diluted net loss per share do not include 234,000 and 3,974,000, respectively, of dilutive stock options and shares of restricted stock, nor 1,982,000 and 19,913,000, respectively, of dilutive warrant shares, as the effect is anti-dilutive given the Company’s net loss from continuing operations. For the first quarter of fiscal 2015 and 2014, additional stock options outstanding of 6,492,000 and 3,856,000, respectively, and additional warrant shares outstanding of 23,672,000 and 5,741,000, respectively, were excluded from the calculation of diluted EPS, as their effect would have been anti-dilutive based on the application of the treasury stock method. | |||||||||||||
Schedule of Activity Related to Performance Based Equity Instruments | Activity related to these performance-based options and performance-based restricted stock units for the three months ended January 31, 2015 was as follows: | |||||||||||||
Performance | Performance | |||||||||||||
Options | Restricted | |||||||||||||
Stock Units | ||||||||||||||
Outstanding, October 31, 2014 | 640,000 | 10,218,508 | ||||||||||||
Granted | — | 1,486,000 | ||||||||||||
Exercised | — | — | ||||||||||||
Canceled | — | (16,000 | ) | |||||||||||
Outstanding, January 31, 2015 | 640,000 | 11,688,508 | ||||||||||||
Schedule of Changes in Shares under Option, Excluding Performance Based Options | Changes in shares underlying stock options, excluding performance-based stock options, for the three months ended January 31, 2015 were as follows: | |||||||||||||
Dollar amounts in thousands, | Shares | Weighted | Weighted | Aggregate | ||||||||||
except per share amounts | Average | Average | Intrinsic | |||||||||||
Price | Life | Value | ||||||||||||
Outstanding, October 31, 2014 | 6,817,609 | $ | 4.52 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | — | — | ||||||||||||
Canceled | (270,833 | ) | 6.16 | |||||||||||
Outstanding, January 31, 2015 | 6,546,776 | $ | 4.46 | 4.8 | $ | 33 | ||||||||
Options exercisable, January 31, 2015 | 5,930,441 | $ | 4.24 | 4.5 | $ | 33 | ||||||||
Schedule of Changes in Non-Vested Shares under Option, Excluding Performance Based Options | Changes in non-vested shares underlying stock options, excluding performance-based stock options, for the three months ended January 31, 2015 were as follows: | |||||||||||||
Shares | Weighted | |||||||||||||
Average Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Non-vested, October 31, 2014 | 1,121,336 | $ | 4.18 | |||||||||||
Granted | — | — | ||||||||||||
Vested | (505,001 | ) | 3.59 | |||||||||||
Canceled | — | — | ||||||||||||
Non-vested, January 31, 2015 | 616,335 | $ | 4.67 | |||||||||||
Schedule of Restricted Stock Activity | Changes in restricted stock and restricted stock units for the three months ended January 31, 2015 were as follows: | |||||||||||||
Restricted Stock | Restricted Stock Units | |||||||||||||
Outstanding, October 31, 2014 | 175,000 | — | ||||||||||||
Granted | — | 675,676 | ||||||||||||
Vested | — | — | ||||||||||||
Forfeited | — | — | ||||||||||||
Outstanding, January 31, 2015 | 175,000 | 675,676 | ||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Inventories consisted of the following as of the dates indicated: | ||||||||
In thousands | January 31, | 31-Oct-14 | |||||||
2015 | |||||||||
Raw materials | $ | 3,392 | $ | 3,524 | |||||
Work in-process | 653 | 467 | |||||||
Finished goods | 302,074 | 280,526 | |||||||
Total | $ | 306,119 | $ | 284,517 | |||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Intangible Assets | Intangible assets consisted of the following as of the dates indicated: | ||||||||||||||||||||||||
31-Jan-15 | 31-Oct-14 | ||||||||||||||||||||||||
In thousands | Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | |||||||||||||||||||
Amount | Amortization | Value | Amount | Amortization | Value | ||||||||||||||||||||
Non-amortizable trademarks | $ | 124,118 | $ | — | $ | 124,118 | $ | 124,121 | $ | — | $ | 124,121 | |||||||||||||
Amortizable trademarks | 23,333 | (12,249 | ) | 11,084 | 21,858 | (12,508 | ) | 9,350 | |||||||||||||||||
Amortizable licenses | 10,521 | (10,521 | ) | — | 11,817 | (11,817 | ) | — | |||||||||||||||||
Other amortizable intangibles | 8,410 | (6,447 | ) | 1,963 | 8,406 | (6,367 | ) | 2,039 | |||||||||||||||||
Total | $ | 166,382 | $ | (29,217 | ) | $ | 137,165 | $ | 166,202 | $ | (30,692 | ) | $ | 135,510 | |||||||||||
Summary of Goodwill by Segment | A summary of goodwill by reporting unit, and in total, and changes in the carrying amounts, as of the dates indicated is as follows: | ||||||||||||||||||||||||
In thousands | Americas | EMEA | APAC | Consolidated | |||||||||||||||||||||
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 | |||||||||||||||||
Foreign currency translation and other | (817 | ) | — | — | (817 | ) | |||||||||||||||||||
Gross goodwill | 73,598 | 178,197 | 135,752 | 387,547 | |||||||||||||||||||||
Accumulated impairment losses | — | (178,197 | ) | (129,545 | ) | (307,742 | ) | ||||||||||||||||||
Net goodwill at January 31, 2015 | $ | 73,598 | $ | — | $ | 6,207 | $ | 79,805 | |||||||||||||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 3 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
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, 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 | |||||||
Charged to expense | 507 | 401 | 908 | ||||||||||
Cash payments | (5,037 | ) | (1,968 | ) | (7,005 | ) | |||||||
Adjustments | — | (1,976 | ) | (1,976 | ) | ||||||||
Balance, January 31, 2015 | $ | 6,980 | $ | 8,748 | $ | 15,728 | |||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||||
Jan. 31, 2015 | |||||||||||
Debt Disclosure [Abstract] | |||||||||||
Summary of Lines of Credit and Long-term Debt | A summary of borrowings under lines of credit and long-term debt as of the dates indicated is as follows: | ||||||||||
In thousands | Maturity | January 31, | October 31, | ||||||||
2015 | 2014 | ||||||||||
Lines of credit - 0.8% Floating | 31-Oct-16 | $ | 31,093 | $ | 32,929 | ||||||
2017 Notes - 8.875% Fixed | 15-Dec-17 | 225,959 | 252,188 | ||||||||
ABL Credit Facility - 2.1% to 4.6% Floating | 24-May-18 | 39,869 | 35,933 | ||||||||
2018 Notes - 7.875% Fixed | 1-Aug-18 | 278,894 | 278,834 | ||||||||
2020 Notes - 10.000% Fixed | 1-Aug-20 | 222,662 | 222,582 | ||||||||
Capital lease obligations and other borrowings - Various % | Various | 4,925 | 6,124 | ||||||||
Total debt | 803,402 | 828,590 | |||||||||
Less current portion | (33,354 | ) | (35,361 | ) | |||||||
Long-term debt, net of current portion | $ | 770,048 | $ | 793,229 | |||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||
Outstanding Derivative Contracts Entered into Hedge Forecasted Purchases | As of January 31, 2015, the Company had the following outstanding derivative contracts that were entered into to hedge forecasted purchases: | ||||||||||||||||
In thousands | Commodity | Notional | Maturity | Fair | |||||||||||||
Amount | Value | ||||||||||||||||
United States dollars | Inventory | $ | 216,104 | February 2015 – January 2016 | $ | 30,994 | |||||||||||
Fair Values of Assets and Liabilities Measured and Recognized at Fair Value | The following table reflects the fair values of assets and liabilities measured and recognized at fair value on a recurring basis on the accompanying condensed consolidated balance sheets as of the dates indicated: | ||||||||||||||||
Fair Value Measurements Using | Assets/(Liabilities) | ||||||||||||||||
In thousands | Level 1 | Level 2 | Level 3 | At Fair Value | |||||||||||||
January 31, 2015: | |||||||||||||||||
Derivative assets: | |||||||||||||||||
Other receivables | $ | — | $ | 30,994 | $ | — | $ | 30,994 | |||||||||
Total fair value | $ | — | $ | 30,994 | $ | — | $ | 30,994 | |||||||||
October 31, 2014: | |||||||||||||||||
Derivative assets: | |||||||||||||||||
Other receivables | $ | — | $ | 16,683 | $ | — | $ | 16,683 | |||||||||
Derivative liabilities: | |||||||||||||||||
Accrued liabilities | — | (2 | ) | — | (2 | ) | |||||||||||
Total fair value | $ | — | $ | 16,681 | $ | — | $ | 16,681 | |||||||||
Stockholders_Equity_and_Noncon1
Stockholders' Equity and Non-controlling Interest (Tables) | 3 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Summary of Changes in Equity | The following tables summarize the changes in equity attributable to Quiksilver, Inc. and the non-controlling interests of its consolidated subsidiaries: | ||||||||||||
Attributable to | Non- | Total | |||||||||||
Quiksilver, | controlling | Stockholders’ | |||||||||||
In thousands | Inc. | Interest | Equity | ||||||||||
Balance, October 31, 2014 | $ | 53,876 | $ | 2,358 | $ | 56,234 | |||||||
Stock-based compensation expense | 1,769 | — | 1,769 | ||||||||||
Employee stock purchase plan | 374 | — | 374 | ||||||||||
Business disposition | — | (1,570 | ) | (1,570 | ) | ||||||||
Net loss and other comprehensive loss | (29,389 | ) | (788 | ) | (30,177 | ) | |||||||
Balance, January 31, 2015 | $ | 26,630 | $ | — | $ | 26,630 | |||||||
Balance, October 31, 2013 | $ | 366,247 | $ | 17,952 | $ | 384,199 | |||||||
Stock-based compensation expense | 5,063 | — | 5,063 | ||||||||||
Exercise of stock options | 2,465 | — | 2,465 | ||||||||||
Employee stock purchase plan | 673 | — | 673 | ||||||||||
Transactions with non-controlling interest holders | (10,839 | ) | (5,434 | ) | (16,273 | ) | |||||||
Net loss and other comprehensive income | 1,769 | (464 | ) | 1,305 | |||||||||
Balance, January 31, 2014 | $ | 365,378 | $ | 12,054 | $ | 377,432 | |||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||||||
Jan. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Components of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income, net of tax, are as follows: | ||||||||||||
Derivative | Foreign | Total | |||||||||||
Instruments | Currency | ||||||||||||
In thousands | Adjustments | ||||||||||||
Balance, October 31, 2014 | $ | 4,093 | $ | 53,195 | $ | 57,288 | |||||||
Net gains reclassified to COGS | (2,918 | ) | — | (2,918 | ) | ||||||||
Changes in fair value, net of tax | 18,442 | (34,143 | ) | (15,701 | ) | ||||||||
Balance, January 31, 2015 | $ | 19,617 | $ | 19,052 | $ | 38,669 | |||||||
Balance, October 31, 2013 | $ | (4,591 | ) | $ | 78,509 | $ | 73,918 | ||||||
Net loss reclassified to COGS | 186 | — | 186 | ||||||||||
Changes in fair value, net of tax | 6,107 | (20,715 | ) | (14,608 | ) | ||||||||
Balance, January 31, 2014 | $ | 1,702 | $ | 57,794 | $ | 59,496 | |||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||
Summarized Results from Discontinued Operations | The operating results of discontinued operations for the three months ended January 31, 2015 and 2014 are as follows: | ||||||||
Three Months Ended January 31, | |||||||||
In thousands | 2015 | 2014 | |||||||
Revenues, net | $ | 13,239 | $ | 20,162 | |||||
Income before income taxes | 6,785 | 48,094 | |||||||
Provision for income taxes | 53 | 10,477 | |||||||
Income from discontinued operations | 6,732 | 37,617 | |||||||
Less: net loss attributable to non-controlling interest | 788 | 103 | |||||||
Income from discontinued operations attributable to Quiksilver, Inc. | $ | 7,520 | $ | 37,720 | |||||
Components of Major Assets and Liabilities | The components of major assets and liabilities held for sale at October 31, 2014 were as follows: | ||||||||
In thousands | 31-Oct-14 | ||||||||
Assets: | |||||||||
Inventories | $ | 19,659 | |||||||
Other | 6,000 | ||||||||
Total | $ | 25,659 | |||||||
Liabilities: | |||||||||
Accounts payable | $ | 12,520 | |||||||
Accrued liabilities | 120 | ||||||||
Deferred tax liabilities | 626 | ||||||||
Total | $ | 13,266 | |||||||
Total Assets Held for Sale | Total assets held for sale as of October 31, 2014 by segment were as follows: | ||||||||
In thousands | 31-Oct-14 | ||||||||
Americas | $ | 28 | |||||||
EMEA | 25,631 | ||||||||
APAC | — | ||||||||
Total | $ | 25,659 | |||||||
Condensed_Consolidation_Financ1
Condensed Consolidation Financial Information (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2015 | |||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||
Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations | ||||||||||||||||||||||||
Three Months Ended January 31, 2014 | |||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||||||
Revenues, net | $ | 116 | $ | 85,536 | $ | 98,741 | $ | 269,770 | $ | (59,253 | ) | $ | 394,910 | ||||||||||||
Cost of goods sold | — | 51,264 | 68,202 | 119,784 | (44,980 | ) | 194,270 | ||||||||||||||||||
Gross profit | 116 | 34,272 | 30,539 | 149,986 | (14,273 | ) | 200,640 | ||||||||||||||||||
Selling, general and administrative expense | 9,025 | 55,966 | 22,668 | 121,057 | (4,932 | ) | 203,784 | ||||||||||||||||||
Asset impairments | — | — | 222 | 661 | — | 883 | |||||||||||||||||||
Operating (loss)/income | (8,909 | ) | (21,694 | ) | 7,649 | 28,268 | (9,341 | ) | (4,027 | ) | |||||||||||||||
Interest expense, net | 11,600 | 1,010 | — | 6,810 | — | 19,420 | |||||||||||||||||||
Foreign currency loss/(gain) | 36 | (10 | ) | (224 | ) | 3,026 | — | 2,828 | |||||||||||||||||
Equity in earnings | (35,932 | ) | 74 | — | — | 35,858 | — | ||||||||||||||||||
Income/(loss) before (benefit)/provision for income taxes | 15,387 | (22,768 | ) | 7,873 | 18,432 | (45,199 | ) | (26,275 | ) | ||||||||||||||||
(Benefit)/provision for income taxes | — | (6,169 | ) | (3,945 | ) | 5,729 | — | (4,385 | ) | ||||||||||||||||
Income/(loss) from continuing operations | 15,387 | (16,599 | ) | 11,818 | 12,703 | (45,199 | ) | (21,890 | ) | ||||||||||||||||
Income from discontinued operations | — | 23,922 | 13,531 | 164 | — | 37,617 | |||||||||||||||||||
Net income | 15,387 | 7,323 | 25,349 | 12,867 | (45,199 | ) | 15,727 | ||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 464 | — | 464 | |||||||||||||||||||
Net income attributable to Quiksilver, Inc. | 15,387 | 7,323 | 25,349 | 13,331 | (45,199 | ) | 16,191 | ||||||||||||||||||
Other comprehensive loss | (14,422 | ) | — | — | (14,422 | ) | 14,422 | (14,422 | ) | ||||||||||||||||
Comprehensive income/(loss) attributable to Quiksilver, Inc. | $ | 965 | $ | 7,323 | $ | 25,349 | $ | (1,091 | ) | $ | (30,777 | ) | $ | 1,769 | |||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||||||
Three Months Ended January 31, 2015 | |||||||||||||||||||||||||
In thousands | Quiksilver, Inc. | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Subsidiaries | Subsidiaries | |||||||||||||||||||||||
Revenues, net | $ | 116 | $ | 71,536 | $ | 68,535 | $ | 229,897 | $ | (29,230 | ) | $ | 340,854 | ||||||||||||
Cost of goods sold | — | 44,052 | 45,091 | 109,077 | (26,810 | ) | 171,410 | ||||||||||||||||||
Gross profit | 116 | 27,484 | 23,444 | 120,820 | (2,420 | ) | 169,444 | ||||||||||||||||||
Selling, general and administrative expense | 2,475 | 28,778 | 29,705 | 111,496 | (1,950 | ) | 170,504 | ||||||||||||||||||
Asset impairments | — | — | — | 255 | — | 255 | |||||||||||||||||||
Operating (loss)/income | (2,359 | ) | (1,294 | ) | (6,261 | ) | 9,069 | (470 | ) | (1,315 | ) | ||||||||||||||
Interest expense, net | 11,645 | 747 | (2 | ) | 6,012 | — | 18,402 | ||||||||||||||||||
Foreign currency (gain)/loss | (158 | ) | (618 | ) | 402 | 1,031 | — | 657 | |||||||||||||||||
Equity in earnings | (3,106 | ) | (324 | ) | — | — | 3,430 | — | |||||||||||||||||
(Loss)/income before provision/(benefit) for income taxes | (10,740 | ) | (1,099 | ) | (6,661 | ) | 2,026 | (3,900 | ) | (20,374 | ) | ||||||||||||||
Provision/(benefit) for income taxes | 30 | 146 | 303 | (2,563 | ) | — | (2,084 | ) | |||||||||||||||||
(Loss)/income from continuing operations | (10,770 | ) | (1,245 | ) | (6,964 | ) | 4,589 | (3,900 | ) | (18,290 | ) | ||||||||||||||
(Loss)/income from discontinued operations | — | — | (2 | ) | 6,734 | — | 6,732 | ||||||||||||||||||
Net (loss)/income | (10,770 | ) | (1,245 | ) | (6,966 | ) | 11,323 | (3,900 | ) | (11,558 | ) | ||||||||||||||
Net loss attributable to non-controlling interest | — | — | — | 788 | — | 788 | |||||||||||||||||||
Net (loss)/income attributable to Quiksilver, Inc. | (10,770 | ) | (1,245 | ) | (6,966 | ) | 12,111 | (3,900 | ) | (10,770 | ) | ||||||||||||||
Other comprehensive loss | (18,619 | ) | — | — | (18,619 | ) | 18,619 | (18,619 | ) | ||||||||||||||||
Comprehensive (loss)/income attributable to Quiksilver, Inc. | $ | (29,389 | ) | $ | (1,245 | ) | $ | (6,966 | ) | $ | (6,508 | ) | $ | 14,719 | $ | (29,389 | ) | ||||||||
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
October 31, 2014 | |||||||||||||||||||||||||
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 | — | 51,663 | 34,779 | 224,572 | — | 311,014 | |||||||||||||||||||
Other receivables | 10 | 3,402 | 1,071 | 36,644 | (280 | ) | 40,847 | ||||||||||||||||||
Inventories | — | 25,681 | 72,761 | 203,529 | (17,454 | ) | 284,517 | ||||||||||||||||||
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 | 370,184 | 108,879 | 558,286 | (298,096 | ) | 741,000 | ||||||||||||||||||
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 | 722,935 | 1,525 | — | — | (724,460 | ) | — | ||||||||||||||||||
Assets held for sale, net of current portion | — | — | — | 5,394 | — | 5,394 | |||||||||||||||||||
Total assets | $ | 789,641 | $ | 533,588 | $ | 145,684 | $ | 842,484 | $ | (1,055,415 | ) | $ | 1,255,982 | ||||||||||||
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 | — | — | — | 1,404 | (280 | ) | 1,124 | ||||||||||||||||||
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 | 13,260 | — | 13,266 | |||||||||||||||||||
Total current liabilities | 233,170 | 56,634 | 73,434 | 267,791 | (280,642 | ) | 350,387 | ||||||||||||||||||
Long-term debt | 501,416 | 22,657 | — | 269,156 | — | 793,229 | |||||||||||||||||||
Other long-term liabilities | 1,179 | 9,800 | 7,420 | 20,943 | — | 39,342 | |||||||||||||||||||
Deferred income taxes long-term | — | 38,052 | — | 11,597 | (32,859 | ) | 16,790 | ||||||||||||||||||
Total liabilities | 735,765 | 127,143 | 80,854 | 569,487 | (313,501 | ) | 1,199,748 | ||||||||||||||||||
Stockholders’/invested equity | 53,876 | 406,445 | 64,830 | 270,639 | (741,914 | ) | 53,876 | ||||||||||||||||||
Non-controlling interest | — | — | — | 2,358 | — | 2,358 | |||||||||||||||||||
Total liabilities and equity | $ | 789,641 | $ | 533,588 | $ | 145,684 | $ | 842,484 | $ | (1,055,415 | ) | $ | 1,255,982 | ||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
January 31, 2015 | |||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 157 | $ | 17,392 | $ | (4,353 | ) | $ | 47,460 | $ | — | $ | 60,656 | ||||||||||||
Restricted cash | — | — | — | 1,745 | — | 1,745 | |||||||||||||||||||
Trade accounts receivable, net | — | 44,120 | 22,138 | 192,694 | — | 258,952 | |||||||||||||||||||
Other receivables | 10 | 2,185 | 1,476 | 47,459 | (29 | ) | 51,101 | ||||||||||||||||||
Inventories | — | 33,719 | 75,499 | 218,634 | (21,733 | ) | 306,119 | ||||||||||||||||||
Deferred income taxes | — | 21,554 | — | 4,533 | (21,554 | ) | 4,533 | ||||||||||||||||||
Prepaid expenses and other current assets | 1,593 | 8,705 | 3,039 | 17,978 | — | 31,315 | |||||||||||||||||||
Intercompany balances | — | 256,475 | — | — | (256,475 | ) | — | ||||||||||||||||||
Total current assets | 1,760 | 384,150 | 97,799 | 530,503 | (299,791 | ) | 714,421 | ||||||||||||||||||
Restricted cash | — | — | — | 3,918 | — | 3,918 | |||||||||||||||||||
Fixed assets, net | 19,754 | 32,336 | 21,783 | 120,234 | — | 194,107 | |||||||||||||||||||
Intangible assets, net | 8,533 | 43,655 | 1,109 | 83,868 | — | 137,165 | |||||||||||||||||||
Goodwill | — | 61,983 | 11,089 | 6,733 | — | 79,805 | |||||||||||||||||||
Other assets | 6,682 | 4,955 | 916 | 27,393 | — | 39,946 | |||||||||||||||||||
Deferred income taxes long-term | 30,807 | — | 2,052 | 14,352 | (32,859 | ) | 14,352 | ||||||||||||||||||
Investment in subsidiaries | 728,200 | 1,849 | — | — | (730,049 | ) | — | ||||||||||||||||||
Total assets | $ | 795,736 | $ | 528,928 | $ | 134,748 | $ | 787,001 | $ | (1,062,699 | ) | $ | 1,183,714 | ||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Lines of credit | $ | — | $ | — | $ | — | $ | 31,093 | $ | — | $ | 31,093 | |||||||||||||
Accounts payable | 2,373 | 36,163 | 18,760 | 116,794 | — | 174,090 | |||||||||||||||||||
Accrued liabilities | 29,258 | 12,435 | 6,157 | 53,741 | — | 101,591 | |||||||||||||||||||
Current portion of long-term debt | — | 600 | — | 1,661 | — | 2,261 | |||||||||||||||||||
Income taxes payable | — | 720 | — | 1,814 | (29 | ) | 2,505 | ||||||||||||||||||
Deferred income taxes | 31,450 | — | 4,925 | 4,669 | (21,554 | ) | 19,490 | ||||||||||||||||||
Intercompany balances | 203,267 | — | 39,528 | 13,680 | (256,475 | ) | — | ||||||||||||||||||
Total current liabilities | 266,348 | 49,918 | 69,370 | 223,452 | (278,058 | ) | 331,030 | ||||||||||||||||||
Long-term debt | 501,556 | 28,580 | — | 239,912 | — | 770,048 | |||||||||||||||||||
Other long-term liabilities | 1,202 | 7,178 | 7,514 | 18,808 | — | 34,702 | |||||||||||||||||||
Deferred income taxes long-term | — | 38,052 | — | 16,111 | (32,859 | ) | 21,304 | ||||||||||||||||||
Total liabilities | 769,106 | 123,728 | 76,884 | 498,283 | (310,917 | ) | 1,157,084 | ||||||||||||||||||
Stockholders’/invested equity | 26,630 | 405,200 | 57,864 | 288,718 | (751,782 | ) | 26,630 | ||||||||||||||||||
Total liabilities and equity | $ | 795,736 | $ | 528,928 | $ | 134,748 | $ | 787,001 | $ | (1,062,699 | ) | $ | 1,183,714 | ||||||||||||
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||||||
Three Months Ended January 31, 2015 | |||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||
Net (loss)/income | $ | (10,770 | ) | $ | (1,245 | ) | $ | (6,966 | ) | $ | 11,323 | $ | (3,900 | ) | $ | (11,558 | ) | ||||||||
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | |||||||||||||||||||||||||
Income from discontinued operations | — | — | 2 | (6,734 | ) | — | (6,732 | ) | |||||||||||||||||
Depreciation and amortization | 738 | 2,373 | 1,573 | 6,074 | — | 10,758 | |||||||||||||||||||
Stock-based compensation | 1,769 | — | — | — | — | 1,769 | |||||||||||||||||||
Provision for doubtful accounts | — | 82 | 206 | 1,310 | — | 1,598 | |||||||||||||||||||
Asset impairments | — | — | — | 255 | — | 255 | |||||||||||||||||||
Equity in earnings | (3,106 | ) | (324 | ) | — | 596 | 3,430 | 596 | |||||||||||||||||
Non-cash interest expense | 507 | 299 | — | 51 | — | 857 | |||||||||||||||||||
Deferred income taxes | — | — | — | (5,225 | ) | — | (5,225 | ) | |||||||||||||||||
Other adjustments to reconcile net (loss)/income | (154 | ) | (615 | ) | 384 | 80 | — | (305 | ) | ||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||
Trade accounts receivable | — | 7,461 | 12,437 | 12,329 | — | 32,227 | |||||||||||||||||||
Inventories | — | (8,038 | ) | (2,267 | ) | (29,889 | ) | 470 | (39,724 | ) | |||||||||||||||
Intercompany | 16,346 | 18,607 | (28,061 | ) | (6,892 | ) | — | — | |||||||||||||||||
Other operating assets and liabilities | 8,992 | (10,697 | ) | (2,109 | ) | 14,483 | — | 10,669 | |||||||||||||||||
Cash (used in)/provided by operating activities of continuing operations | 14,322 | 7,903 | (24,801 | ) | (2,239 | ) | — | (4,815 | ) | ||||||||||||||||
Cash used in operating activities of discontinued operations | — | — | (2 | ) | 4,670 | — | 4,668 | ||||||||||||||||||
Net cash (used in)/provided by operating activities | 14,322 | 7,903 | (24,803 | ) | 2,431 | — | (147 | ) | |||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||
Proceeds from the sale of properties and equipment | — | — | — | 455 | — | 455 | |||||||||||||||||||
Capital expenditures | (2,000 | ) | (887 | ) | (4,318 | ) | (8,739 | ) | — | (15,944 | ) | ||||||||||||||
Changes in restricted cash | — | 16,514 | — | (976 | ) | — | 15,538 | ||||||||||||||||||
Cash used in investing activities of continuing operations | (2,000 | ) | 15,627 | (4,318 | ) | (9,260 | ) | — | 49 | ||||||||||||||||
Cash provided by investing activities of discontinued operations | — | — | — | 10,713 | — | 10,713 | |||||||||||||||||||
Net cash (used in)/provided by investing activities | (2,000 | ) | 15,627 | (4,318 | ) | 1,453 | — | 10,762 | |||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Borrowings on lines of credit | — | — | — | 11,770 | — | 11,770 | |||||||||||||||||||
Payments on lines of credit | — | — | — | (16,575 | ) | — | (16,575 | ) | |||||||||||||||||
Borrowings on long-term debt | — | 22,515 | — | 20,219 | — | 42,734 | |||||||||||||||||||
Payments on long-term debt | — | (16,600 | ) | — | (15,820 | ) | — | (32,420 | ) | ||||||||||||||||
Stock option exercises and employee stock purchases | 372 | — | — | — | — | 372 | |||||||||||||||||||
Intercompany | (12,549 | ) | (14,920 | ) | 27,469 | — | — | — | |||||||||||||||||
Cash provided by financing activities of continuing operations | (12,177 | ) | (9,005 | ) | 27,469 | (406 | ) | — | 5,881 | ||||||||||||||||
Net cash provided by financing activities | (12,177 | ) | (9,005 | ) | 27,469 | (406 | ) | — | 5,881 | ||||||||||||||||
Effect of exchange rate changes on cash | (146 | ) | — | — | (2,358 | ) | — | (2,504 | ) | ||||||||||||||||
Net increase/(decrease) in cash and cash equivalents | (1 | ) | 14,525 | (1,652 | ) | 1,120 | — | 13,992 | |||||||||||||||||
Cash and cash equivalents, beginning of period | 158 | 2,867 | (2,701 | ) | 46,340 | — | 46,664 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 157 | $ | 17,392 | $ | (4,353 | ) | $ | 47,460 | $ | — | $ | 60,656 | ||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
Three Months Ended January 31, 2014 | |||||||||||||||||||||||||
In thousands | Quiksilver, | QS Wholesale, | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||
Inc. | Inc. | Subsidiaries | Subsidiaries | ||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||
Net income | $ | 15,387 | $ | 7,323 | $ | 25,349 | $ | 12,867 | $ | (45,199 | ) | $ | 15,727 | ||||||||||||
Adjustments to reconcile net income to net cash (used in)/provided by operating activities: | |||||||||||||||||||||||||
Income from discontinued operations | — | (23,922 | ) | (13,531 | ) | (164 | ) | — | (37,617 | ) | |||||||||||||||
Depreciation and amortization | 585 | 2,589 | 1,330 | 6,041 | — | 10,545 | |||||||||||||||||||
Stock-based compensation | 5,063 | — | — | — | — | 5,063 | |||||||||||||||||||
Provision for doubtful accounts | — | 1,088 | (209 | ) | 783 | — | 1,662 | ||||||||||||||||||
Asset impairments | — | — | 222 | 661 | — | 883 | |||||||||||||||||||
Equity in earnings | (35,932 | ) | 74 | — | 352 | 35,858 | 352 | ||||||||||||||||||
Non-cash interest expense | 462 | 239 | — | 213 | — | 914 | |||||||||||||||||||
Deferred income taxes | — | — | — | 5 | — | 5 | |||||||||||||||||||
Other adjustments to reconcile net income | 35 | (9 | ) | (219 | ) | 2,992 | — | 2,799 | |||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||
Trade accounts receivable | — | 10,795 | 12,403 | 38,707 | — | 61,905 | |||||||||||||||||||
Inventories | — | (8,275 | ) | (2,386 | ) | (29,849 | ) | 9,341 | (31,169 | ) | |||||||||||||||
Other operating assets and liabilities | 12,141 | (11,998 | ) | (16,366 | ) | (18,962 | ) | — | (35,185 | ) | |||||||||||||||
Cash (used in)/provided by operating activities of continuing operations | (2,259 | ) | (22,096 | ) | 6,593 | 13,646 | — | (4,116 | ) | ||||||||||||||||
Cash used in by operating activities of discontinued operations | — | — | (1,861 | ) | (5,334 | ) | — | (7,195 | ) | ||||||||||||||||
Net cash (used in)/provided by operating activities | (2,259 | ) | (22,096 | ) | 4,732 | 8,312 | — | (11,311 | ) | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||
Capital expenditures | (1,970 | ) | (2,397 | ) | (1,299 | ) | (4,892 | ) | — | (10,558 | ) | ||||||||||||||
Changes in restricted cash | — | (60,214 | ) | — | (403 | ) | — | (60,617 | ) | ||||||||||||||||
Cash used in investing activities of continuing operations | (1,970 | ) | (62,611 | ) | (1,299 | ) | (5,295 | ) | — | (71,175 | ) | ||||||||||||||
Cash provided by/(used) in investing activities of discontinued operations | — | 58,060 | 18,991 | (332 | ) | — | 76,719 | ||||||||||||||||||
Net cash (used in)/provided by investing activities | (1,970 | ) | (4,551 | ) | 17,692 | (5,627 | ) | — | 5,544 | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||
Borrowings on lines of credit | — | — | — | 18,904 | — | 18,904 | |||||||||||||||||||
Payments on lines of credit | — | — | — | (16,591 | ) | — | (16,591 | ) | |||||||||||||||||
Borrowings on long-term debt | — | 40,500 | — | 11,562 | — | 52,062 | |||||||||||||||||||
Payments on long-term debt | — | (18,500 | ) | — | (15,279 | ) | — | (33,779 | ) | ||||||||||||||||
Payments of debt issuance costs | (373 | ) | 38 | — | — | — | (335 | ) | |||||||||||||||||
Stock option exercises and employee stock purchases | 3,138 | — | — | — | — | 3,138 | |||||||||||||||||||
Intercompany | 1,463 | 8,134 | (24,659 | ) | 15,062 | — | — | ||||||||||||||||||
Cash provided by/(used in) financing activities of continuing operations | 4,228 | 30,172 | (24,659 | ) | 13,658 | — | 23,399 | ||||||||||||||||||
Net cash provided by/(used in) financing activities | 4,228 | 30,172 | (24,659 | ) | 13,658 | — | 23,399 | ||||||||||||||||||
Effect of exchange rate changes on cash | — | — | — | (4,924 | ) | — | (4,924 | ) | |||||||||||||||||
Net (decrease)/increase in cash and cash equivalents | (1 | ) | 3,525 | (2,235 | ) | 11,419 | — | 12,708 | |||||||||||||||||
Cash and cash equivalents, beginning of period | 35 | 3,733 | 296 | 53,216 | — | 57,280 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 34 | $ | 7,258 | $ | (1,939 | ) | $ | 64,635 | $ | — | $ | 69,988 | ||||||||||||
Restatement_of_Prior_Period_Fi1
Restatement of Prior Period Financial Statements (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||
Schedule of Error Corrections | The table below is a summary of the impact of these corrections: | ||||||||
In thousands | As Previously Reported | As Restated | |||||||
Selected Balance Sheet Data: | |||||||||
At October 31, 2014: | |||||||||
Trade accounts receivable | $ | 319,840 | $ | 311,014 | |||||
Inventories | 278,780 | 284,517 | |||||||
Total current assets | 744,089 | 741,000 | |||||||
Assets held for sale, net of current portion | 2,987 | 5,394 | |||||||
Total assets | 1,256,664 | 1,255,982 | |||||||
Income taxes payable | 1,156 | 1,124 | |||||||
Current portion of assets held for sale | 12,640 | 13,266 | |||||||
Total current liabilities | 349,793 | 350,387 | |||||||
Total liabilities | 1,199,154 | 1,199,748 | |||||||
Accumulated deficit | (585,263 | ) | (587,407 | ) | |||||
Accumulated other comprehensive income | 57,298 | 57,288 | |||||||
Total Quiksilver, Inc. stockholders' equity | 56,030 | 53,876 | |||||||
Non-controlling interest | 1,480 | 2,358 | |||||||
Total equity | 57,510 | 56,234 | |||||||
Selected Statement of Operations Data: | |||||||||
For the Three Months Ended January 31, 2014: | |||||||||
Revenues, net | $ | 392,612 | $ | 394,910 | |||||
Gross margin | 199,836 | 200,640 | |||||||
Operating loss | (4,831 | ) | (4,027 | ) | |||||
Loss from continuing operations | (22,694 | ) | (21,890 | ) | |||||
Net income attributable to Quiksilver, Inc. | 15,387 | 16,191 | |||||||
Net income per share attributable to Quiksilver, Inc. | $ | 0.09 | $ | 0.1 | |||||
Selected Americas Segment Data: | |||||||||
For the Three Months Ended January 31, 2014: | |||||||||
Revenues, net | $ | 173,165 | $ | 175,463 | |||||
Gross margin | 75,110 | 75,914 | |||||||
Operating loss | (14,673 | ) | (13,869 | ) | |||||
Selected Segment Data: | |||||||||
At October 31, 2014: | |||||||||
Americas identifiable assets | $ | 467,920 | $ | 464,831 | |||||
EMEA identifiable assets | 510,896 | 513,303 | |||||||
Basis_of_Presentation_Basis_of
Basis of Presentation Basis of Presentation (Details) (Surfdome, USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Surfdome | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Proceeds from sale of business | $16 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Jan. 31, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of segments | 4 |
Segment_Information_Informatio
Segment Information - Information Related to Company's Operating Segments (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Revenues, net | $340,854 | $394,910 | |
Gross profit/(loss) | 169,444 | 200,640 | |
SG&A expense | 170,504 | 203,784 | |
Asset impairments | 255 | 883 | |
Depreciation and amortization | 10,427 | 10,345 | |
Operating income/ (loss) | -1,315 | -4,027 | |
Interest expense | 18,402 | 19,420 | |
Identifiable assets | 1,183,714 | 1,255,982 | |
Americas | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 4,108 | 4,516 | |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 3,816 | 3,287 | |
APAC | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 1,741 | 1,888 | |
Corporate Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 762 | 654 | |
Operating Segments | Americas | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 147,767 | 175,463 | |
Gross profit/(loss) | 64,309 | 75,914 | |
SG&A expense | 70,024 | 89,561 | |
Asset impairments | 76 | 222 | |
Operating income/ (loss) | -5,791 | -13,869 | |
Interest expense | 730 | 902 | |
Identifiable assets | 438,171 | 464,831 | |
Operating Segments | EMEA | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 125,813 | 149,397 | |
Gross profit/(loss) | 70,500 | 87,849 | |
SG&A expense | 66,129 | 78,208 | |
Asset impairments | 179 | 661 | |
Operating income/ (loss) | 4,192 | 8,980 | |
Interest expense | 4,228 | 4,811 | |
Identifiable assets | 474,512 | 513,303 | |
Operating Segments | APAC | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 66,598 | 69,875 | |
Gross profit/(loss) | 36,850 | 36,808 | |
SG&A expense | 34,805 | 33,362 | |
Asset impairments | 0 | 0 | |
Operating income/ (loss) | 2,045 | 3,446 | |
Interest expense | 526 | 587 | |
Identifiable assets | 199,964 | 202,225 | |
Operating Segments | Corporate Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues, net | 676 | 175 | |
Gross profit/(loss) | -2,215 | 69 | |
SG&A expense | -454 | 2,653 | |
Asset impairments | 0 | 0 | |
Operating income/ (loss) | -1,761 | -2,584 | |
Interest expense | 12,918 | 13,120 | |
Identifiable assets | $71,067 | $75,623 |
Earnings_per_Share_and_StockBa2
Earnings per Share and Stock-Based Compensation - Reconciliation of Denominator of Each Net Loss per Share (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Earnings per Share and Stock Based Compensation [Abstract] | ||
Shares used in computing basic net loss/income per share (shares) | 171,039 | 169,747 |
Dilutive effect of stock options and restricted stock (shares) | 0 | 0 |
Dilutive effect of stock warrants (shares) | 0 | 0 |
Shares used in computing diluted net loss/income per share (shares) | 171,039 | 169,747 |
Earnings_per_Share_and_StockBa3
Earnings per Share and Stock-Based Compensation - Reconciliation of Denominator of Each Net Loss per Share-Additional Information (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Dilutive Stock Options and Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded in computing diluted net loss per share | 234 | 3,974 |
Additional shares excluded from calculation of diluted EPS | 6,492 | 3,856 |
Dilutive Stock Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded in computing diluted net loss per share | 1,982 | 19,913 |
Additional shares excluded from calculation of diluted EPS | 23,672 | 5,741 |
Earnings_per_Share_and_StockBa4
Earnings per Share and Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Risk-free interest rate, minimum | 0.60% | ||
Risk-free interest rate, maximum | 0.70% | ||
Outstanding options exercisable (shares) | 5,930,441 | ||
Outstanding options (shares) | 6,546,776 | 6,817,609 | |
Options granted (shares) | 0 | ||
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average fair value of the restricted stock units (usd per share) | 1.85 | ||
Options granted (shares) | 0 | ||
Unrecognized compensation expense | 1.3 | ||
Unrecognized compensation expense, weighted average period | 10 months 21 days | ||
Vesting period | 3 years | ||
Performance Based Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Options granted (shares) | 0 | 0 | |
Performance Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding options exercisable (shares) | 164,000 | ||
Outstanding options (shares) | 640,000 | 640,000 | |
Unrecognized compensation expense | 0.3 | ||
Unrecognized compensation expense, weighted average period | 1 year 3 months 29 days | ||
Options granted (shares) | 0 | ||
Performance Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding options exercisable (shares) | 0 | ||
Outstanding options (shares) | 11,688,508 | 10,218,508 | |
Unrecognized compensation expense | 1.9 | ||
Unrecognized compensation expense, weighted average period | 1 year 9 months 29 days | ||
Options granted (shares) | 1,486,000 | ||
Non-Performance Based Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average fair value of grants (usd per share) | 0 | ||
Weighted average fair value of the restricted stock units (usd per share) | 4.67 | 4.18 | |
Options granted (shares) | 0 | ||
Unrecognized compensation expense | 1.1 | ||
Unrecognized compensation expense, weighted average period | 1 year 9 months 21 days | ||
Vesting period | 3 years |
Earnings_per_Share_and_StockBa5
Earnings per Share and Stock-Based Compensation - Schedule of Activity Related to Performance Based Equity Instruments (Detail) | 3 Months Ended |
Jan. 31, 2015 | |
Activity related to these performance-based equity instruments | |
Outstanding, October 31, 2014 (shares) | 6,817,609 |
Granted (shares) | 0 |
Exercised (shares) | 0 |
Canceled (shares) | -270,833 |
Outstanding, January 31, 2015 (shares) | 6,546,776 |
Performance Options | |
Activity related to these performance-based equity instruments | |
Outstanding, October 31, 2014 (shares) | 640,000 |
Granted (shares) | 0 |
Exercised (shares) | 0 |
Canceled (shares) | 0 |
Outstanding, January 31, 2015 (shares) | 640,000 |
Performance Restricted Stock Units | |
Activity related to these performance-based equity instruments | |
Outstanding, October 31, 2014 (shares) | 10,218,508 |
Granted (shares) | 1,486,000 |
Exercised (shares) | 0 |
Canceled (shares) | -16,000 |
Outstanding, January 31, 2015 (shares) | 11,688,508 |
Earnings_per_Share_and_StockBa6
Earnings per Share and Stock-Based Compensation - Schedule of Changes in Shares under Option, Excluding Performance Based Options (Detail) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2015 |
Shares | |
Outstanding, October 31, 2014 (shares) | 6,817,609 |
Granted (shares) | 0 |
Exercised (shares) | 0 |
Canceled (shares) | -270,833 |
Outstanding, January 31, 2015 (shares) | 6,546,776 |
Options exercisable, January 31, 2015 (shares) | 5,930,441 |
Weighted Average Price | |
Outstanding, October 31, 2014 (usd per share) | $4.52 |
Granted (usd per share) | $0 |
Exercised (usd per share) | $0 |
Canceled (usd per share) | $6.16 |
Outstanding, January 31, 2015 (usd per share) | $4.46 |
Options exercisable, January 31, 2015 (usd per share) | $4.24 |
Outstanding, Weighted Average Life, ending balance | 4 years 9 months 14 days |
Options exercisable, Weighted Average Life, January 31, 2015 | 4 years 5 months 30 days |
Outstanding, Aggregate Intrinsic Value, ending balance | $33 |
Options exercisable, January 31, 2015, Aggregate Intrinsic Value | $33 |
Earnings_per_Share_and_StockBa7
Earnings per Share and Stock-Based Compensation - Schedule of Changes in Non-Vested Shares under Option, Excluding Performance Based Options (Detail) (Non-Performance Based Options, USD $) | 3 Months Ended |
Jan. 31, 2015 | |
Non-Performance Based Options | |
Shares | |
Non-vested, October 31, 2014 (shares) | 1,121,336 |
Granted (shares) | 0 |
Vested (shares) | -505,001 |
Canceled (shares) | 0 |
Non-vested, January 31, 2015 (shares) | 616,335 |
Weighted Average Grant Date Fair Value | |
Non-vested, October 31, 2014 (usd per share) | $4.18 |
Granted (usd per share) | $0 |
Vested (usd per share) | $3.59 |
Canceled (usd per share) | $0 |
Non-vested, January 31, 2015 (usd per share) | $4.67 |
Earnings_per_Share_and_StockBa8
Earnings per Share and Stock-Based Compensation - Schedule of Restricted Stock Activity (Detail) | 3 Months Ended |
Jan. 31, 2015 | |
Restricted Stock | |
Shares | |
Non-vested, October 31, 2014 (shares) | 175,000 |
Granted (shares) | 0 |
Vested (shares) | 0 |
Forfeited (shares) | 0 |
Non-vested, January 31, 2015 (shares) | 175,000 |
Restricted Stock Units (RSUs) | |
Shares | |
Non-vested, October 31, 2014 (shares) | 0 |
Granted (shares) | 675,676 |
Vested (shares) | 0 |
Forfeited (shares) | 0 |
Non-vested, January 31, 2015 (shares) | 675,676 |
Restricted_Cash_Additional_Inf
Restricted Cash - Additional Information (Detail) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | $6,000,000 | $21,000,000 |
Restricted cash balance | 1,745,000 | 4,687,000 |
Surfdome | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash balance | $4,000,000 |
Inventories_Detail
Inventories (Detail) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $3,392 | $3,524 |
Work in-process | 653 | 467 |
Finished goods | 302,074 | 280,526 |
Total | $306,119 | $284,517 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill - Intangible Assets (Detail) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Amount, Total | $166,382 | $166,202 |
Accumulated Amortization | -29,217 | -30,692 |
Net Book Value, Total | 137,165 | 135,510 |
Amortizable trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Amount | 23,333 | 21,858 |
Accumulated Amortization | -12,249 | -12,508 |
Net Book Value | 11,084 | 9,350 |
Amortizable licenses | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Amount | 10,521 | 11,817 |
Accumulated Amortization | -10,521 | -11,817 |
Net Book Value | 0 | 0 |
Other amortizable intangibles | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Amount | 8,410 | 8,406 |
Accumulated Amortization | -6,447 | -6,367 |
Net Book Value | 1,963 | 2,039 |
Non-amortizable trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Amount | 124,118 | 124,121 |
Accumulated Amortization | 0 | 0 |
Net Book Value | $124,118 | $124,121 |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2014 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible amortization expense | $500,000 | $500,000 | |
Estimated annual amortization expense fiscal 2016 | 2,000,000 | ||
Estimated annual amortization expense fiscal 2017 | 1,000,000 | ||
Estimated annual amortization expense fiscal 2018 | 1,000,000 | ||
Estimated annual amortization expense fiscal 2019 | 1,000,000 | ||
Estimated annual amortization expense fiscal 2020 | 1,000,000 | ||
Impairments | 178,197,000 | ||
EMEA | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairments | 178,197,000 | ||
Non-Compete Agreements, Patents and Customer Relationships | Minimum | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Estimated useful life of trademarks and licenses | 5 years | ||
Non-Compete Agreements, Patents and Customer Relationships | Maximum | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Estimated useful life of trademarks and licenses | 18 years | ||
Trademarks and Licenses | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Finite lived intangible asset residual value | $0 | ||
Trademarks and Licenses | Minimum | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Estimated useful life of trademarks and licenses | 10 years | ||
Trademarks and Licenses | Maximum | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Estimated useful life of trademarks and licenses | 25 years |
Intangible_Assets_and_Goodwill4
Intangible Assets and Goodwill - Summary of Goodwill by Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Oct. 31, 2014 |
Goodwill [Roll Forward] | ||
Net goodwill | $80,622 | $261,625 |
Impairments | -178,197 | |
Foreign currency translation and other | -817 | -2,806 |
Gross goodwill | 387,547 | 388,364 |
Accumulated impairment losses | -307,742 | -307,742 |
Net goodwill | 79,805 | 80,622 |
Americas | ||
Goodwill [Roll Forward] | ||
Net goodwill | 74,415 | 74,943 |
Impairments | 0 | |
Foreign currency translation and other | -817 | -528 |
Gross goodwill | 73,598 | 74,415 |
Accumulated impairment losses | 0 | 0 |
Net goodwill | 73,598 | 74,415 |
EMEA | ||
Goodwill [Roll Forward] | ||
Net goodwill | 0 | 180,475 |
Impairments | -178,197 | |
Foreign currency translation and other | 0 | -2,278 |
Gross goodwill | 178,197 | 178,197 |
Accumulated impairment losses | -178,197 | -178,197 |
Net goodwill | 0 | 0 |
APAC | ||
Goodwill [Roll Forward] | ||
Net goodwill | 6,207 | 6,207 |
Impairments | 0 | |
Foreign currency translation and other | 0 | 0 |
Gross goodwill | 135,752 | 135,752 |
Accumulated impairment losses | -129,545 | -129,545 |
Net goodwill | $6,207 | $6,207 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2015 |
Segment | |
Income Tax Contingency [Line Items] | |
Number of segments | 4 |
Liability for uncertain tax positions | $12 |
Uncertain tax position liabilities excluding interest and penalties | 11 |
Reasonably possible outcome within the next 12 months range, reduction of liability for unrecognized tax benefits excluding penalties and interest | 10 |
Reasonably possible outcome within the next 12 months range, increase of liability for unrecognized tax benefits excluding penalties and interest | 4 |
Foreign Tax Authority | |
Income Tax Contingency [Line Items] | |
Tax expense, other comprehensive income | $5 |
Restructuring_Charges_Activity
Restructuring Charges - Activity and Liability Balances (Detail) (Restructuring Plan Two Thousand Thirteen and Two Thousand Eleven, USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Oct. 31, 2014 |
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | $23,801 | $19,098 |
Charged to expense | 908 | 34,645 |
Cash payments | -7,005 | -29,942 |
Adjustments | -1,976 | |
Ending Balance | 15,728 | 23,801 |
Workforce | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 11,510 | 12,159 |
Charged to expense | 507 | 19,350 |
Cash payments | -5,037 | -19,999 |
Adjustments | 0 | |
Ending Balance | 6,980 | 11,510 |
Facility & Other | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Balance | 12,291 | 6,939 |
Charged to expense | 401 | 15,295 |
Cash payments | -1,968 | -9,943 |
Adjustments | -1,976 | |
Ending Balance | $8,748 | $12,291 |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (Selling, General and Administrative Expenses [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2014 |
Selling, General and Administrative Expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Additional reserves and expenses | $2 |
Debt_Summary_of_Lines_of_Credi
Debt - Summary of Lines of Credit and Long-term Debt (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Oct. 31, 2014 |
Debt Instrument [Line Items] | ||
Credit facility | $71,000 | |
Capital lease obligations and other borrowings | 4,925 | 6,124 |
Total debt | 803,402 | 828,590 |
Less current portion | -33,354 | -35,361 |
Long-term debt, net of current portion | 770,048 | 793,229 |
2017 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 8.88% | |
Lines of credit and long-term debt | 225,959 | 252,188 |
2018 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 7.88% | |
Lines of credit and long-term debt | 278,894 | 278,834 |
2020 Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 10.00% | |
Lines of credit and long-term debt | 222,662 | 222,582 |
ABL Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate, minimum | 2.10% | |
Effective interest rate, maximum | 5.60% | |
Credit facility | 39,869 | 35,933 |
Line of Credit, 0.8% Floating Interest [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 0.80% | |
Credit facility | $31,093 | $32,929 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Debt Instrument [Line Items] | ||
Maximum cash borrowings and letters of credit | $169,000,000 | |
Direct borrowings | 71,000,000 | |
Letters of credit outstanding | 23,000,000 | |
Amount of remaining borrowing capacity available for letters of credit | 11,770,000 | 18,904,000 |
U.S. and APAC [Member] | ||
Debt Instrument [Line Items] | ||
Amount of availability of remaining borrowings | 60,000,000 | |
Amount of remaining borrowing capacity available for letters of credit | 48,000,000 | |
EMEA | ||
Debt Instrument [Line Items] | ||
Amount of availability of remaining borrowings | 15,000,000 | |
Fair Value [Member] | ||
Debt Instrument [Line Items] | ||
Lines of credit and long-term debt fair value | 715,000,000 | |
Lines of credit and long-term debt carrying value | 803,000,000 | |
ABL Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Threshold to be subject to financial covenant restrictions, remaining borrowing capacity | $15,000,000 | |
Threshold to be subject to financial covenant restrictions, percent of total borrowing base availability | 10.00% |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gains relating to hedging transactions, net of tax | $20 | |
Reclassification estimate of time to transfer | 12 months | |
Reclassified into earnings net gain/(loss) relating to derivative contracts | $3 | $0 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Outstanding Derivative Contracts Entered into Hedge Forecasted Purchases (Detail) (Inventory Commodity, United States Dollars, USD $) | Jan. 31, 2015 |
In Thousands, unless otherwise specified | |
Inventory Commodity | United States Dollars | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Notional Amount | $216,104 |
Fair Value | $30,994 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Fair Values of Assets and Liabilities Measured and Recognized at Fair Value (Detail) (Fair Value, Measurements, Recurring, USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivative liabilities: | ||
Total fair value | $30,994 | $16,681 |
Other Receivables | ||
Derivative assets: | ||
Derivative assets | 30,994 | 16,683 |
Accrued Liabilities | ||
Derivative liabilities: | ||
Derivative liabilities | -2 | |
Level 1 | ||
Derivative liabilities: | ||
Total fair value | 0 | 0 |
Level 1 | Other Receivables | ||
Derivative assets: | ||
Derivative assets | 0 | 0 |
Level 1 | Accrued Liabilities | ||
Derivative liabilities: | ||
Derivative liabilities | 0 | |
Level 2 | ||
Derivative liabilities: | ||
Total fair value | 30,994 | 16,681 |
Level 2 | Other Receivables | ||
Derivative assets: | ||
Derivative assets | 30,994 | 16,683 |
Level 2 | Accrued Liabilities | ||
Derivative liabilities: | ||
Derivative liabilities | -2 | |
Level 3 | ||
Derivative liabilities: | ||
Total fair value | 0 | 0 |
Level 3 | Other Receivables | ||
Derivative assets: | ||
Derivative assets | 0 | 0 |
Level 3 | Accrued Liabilities | ||
Derivative liabilities: | ||
Derivative liabilities | $0 |
Stockholders_Equity_and_Noncon2
Stockholders' Equity and Non-controlling Interest - Summary of Changes in Equity (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $56,234 | $384,199 |
Stock-based compensation expense | 1,769 | 5,063 |
Exercise of stock options | 2,465 | |
Employee stock purchase plan | 374 | 673 |
Business disposition | -1,570 | |
Transactions with non-controlling interest holders | -16,273 | |
Net loss and other comprehensive income/(loss) | -30,177 | 1,305 |
Ending Balance | 26,630 | 377,432 |
Attributable to Quiksilver, Inc. | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 53,876 | 366,247 |
Stock-based compensation expense | 1,769 | 5,063 |
Exercise of stock options | 2,465 | |
Employee stock purchase plan | 374 | 673 |
Business disposition | 0 | |
Transactions with non-controlling interest holders | -10,839 | |
Net loss and other comprehensive income/(loss) | -29,389 | 1,769 |
Ending Balance | 26,630 | 365,378 |
Non- controlling Interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 2,358 | 17,952 |
Stock-based compensation expense | 0 | 0 |
Exercise of stock options | 0 | |
Employee stock purchase plan | 0 | 0 |
Business disposition | -1,570 | |
Transactions with non-controlling interest holders | -5,434 | |
Net loss and other comprehensive income/(loss) | -788 | -464 |
Ending Balance | $0 | $12,054 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $57,288 | $73,918 |
Changes in fair value, net of tax, total | -15,701 | -14,608 |
Ending balance | 38,669 | 59,496 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Net loss reclassified to COGS | -2,918 | 186 |
Derivative Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 4,093 | -4,591 |
Changes in fair value, derivative instruments, net of tax | 18,442 | 6,107 |
Ending balance | 19,617 | 1,702 |
Derivative Instruments | Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Net loss reclassified to COGS | -2,918 | 186 |
Foreign Currency Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 53,195 | 78,509 |
Changes in fair value, foreign currency adjustments, net of tax | -34,143 | -20,715 |
Ending balance | 19,052 | 57,794 |
Foreign Currency Adjustments | Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Net loss reclassified to COGS | $0 | $0 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | |||
Jan. 31, 2015 | Jan. 31, 2014 | Nov. 30, 2013 | Jan. 31, 2014 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net gain (loss) on sale | $6,580,000 | $38,103,000 | |||
Income tax expense | 53,000 | 10,477,000 | |||
Mervin | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of business | 58,000,000 | ||||
Hawk | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of business | 19,000,000 | ||||
Net gain (loss) on sale | 38,000,000 | ||||
Surfdome | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of business | 16,000,000 | ||||
Net gain (loss) on sale | 7,000,000 | ||||
Mervin And Hawk | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Income tax expense | $10,000,000 |
Discontinued_Operations_Summar
Discontinued Operations - Summarized Results from Discontinued Operations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Discontinued Operations and Disposal Groups [Abstract] | ||
Revenues, net | $13,239 | $20,162 |
Income before income taxes | 6,785 | 48,094 |
Provision for income taxes | 53 | 10,477 |
Income from discontinued operations | 6,732 | 37,617 |
Less: net loss attributable to non-controlling interest | 788 | 103 |
Income from discontinued operations, net of tax | $7,520 | $37,720 |
Discontinued_Operations_Compon
Discontinued Operations - Components of Major Assets and Liabilities (Detail) (USD $) | Oct. 31, 2014 |
In Thousands, unless otherwise specified | |
Assets: | |
Inventories | $19,659 |
Other | 6,000 |
Total assets | 25,659 |
Liabilities: | |
Accounts payable | 12,520 |
Accrued liabilities | 120 |
Deferred tax liabilities | 626 |
Total liabilities | $13,266 |
Discontinued_Operations_Total_
Discontinued Operations - Total Assets Held for Sale (Detail) (USD $) | Oct. 31, 2014 |
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 | $25,659 |
Americas | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total assets held for sale | 28 |
EMEA | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total assets held for sale | 25,631 |
APAC | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total assets held for sale | $0 |
Condensed_Consolidation_Financ2
Condensed Consolidation Financial Information - Additional Information (Detail) (USD $) | Jan. 31, 2015 | Jul. 31, 2013 | Nov. 30, 2013 |
In Thousands, unless otherwise specified | |||
Guarantor Subsidiaries | |||
Debt Instrument [Line Items] | |||
Percentage of ownership owned by parent in subsidiaries | 100.00% | ||
2020 Notes | |||
Debt Instrument [Line Items] | |||
Notes issued, aggregate principal amount | $225,000 | ||
2020 Notes | Domestic Subsidiaries | |||
Debt Instrument [Line Items] | |||
Percentage of ownership owned by parent in subsidiaries | 100.00% |
Condensed_Consolidation_Financ3
Condensed Consolidation Financial Information - Condensed Consolidating Statement of Operations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||
Revenues, net | $340,854 | $394,910 |
Cost of goods sold | 171,410 | 194,270 |
Gross profit | 169,444 | 200,640 |
Selling, general and administrative expense | 170,504 | 203,784 |
Asset impairments | 255 | 883 |
Operating loss | -1,315 | -4,027 |
Interest expense, net | 18,402 | 19,420 |
Foreign currency (gain)/loss | 657 | 2,828 |
Equity in earnings | 0 | 0 |
(Loss)/income before provision/(benefit) for income taxes | -20,374 | -26,275 |
Benefit for income taxes | -2,084 | -4,385 |
Loss from continuing operations | -18,290 | -21,890 |
Income from discontinued operations | 6,732 | 37,617 |
Net (loss)/income | -11,558 | 15,727 |
Net loss/(income) attributable to non-controlling interest | 788 | 464 |
Net (loss)/income | -10,770 | 16,191 |
Other comprehensive (loss)/income | -18,619 | -14,422 |
Comprehensive (loss)/income attributable to Quiksilver, Inc. | -29,389 | 1,769 |
Quiksilver, Inc. | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenues, net | 116 | 116 |
Cost of goods sold | 0 | 0 |
Gross profit | 116 | 116 |
Selling, general and administrative expense | 2,475 | 9,025 |
Asset impairments | 0 | 0 |
Operating loss | -2,359 | -8,909 |
Interest expense, net | 11,645 | 11,600 |
Foreign currency (gain)/loss | -158 | 36 |
Equity in earnings | -3,106 | -35,932 |
(Loss)/income before provision/(benefit) for income taxes | -10,740 | 15,387 |
Benefit for income taxes | 30 | 0 |
Loss from continuing operations | -10,770 | 15,387 |
Income from discontinued operations | 0 | 0 |
Net (loss)/income | -10,770 | 15,387 |
Net loss/(income) attributable to non-controlling interest | 0 | 0 |
Net (loss)/income | -10,770 | 15,387 |
Other comprehensive (loss)/income | -18,619 | -14,422 |
Comprehensive (loss)/income attributable to Quiksilver, Inc. | -29,389 | 965 |
QS Wholesale, Inc. | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenues, net | 71,536 | 85,536 |
Cost of goods sold | 44,052 | 51,264 |
Gross profit | 27,484 | 34,272 |
Selling, general and administrative expense | 28,778 | 55,966 |
Asset impairments | 0 | 0 |
Operating loss | -1,294 | -21,694 |
Interest expense, net | 747 | 1,010 |
Foreign currency (gain)/loss | -618 | -10 |
Equity in earnings | -324 | 74 |
(Loss)/income before provision/(benefit) for income taxes | -1,099 | -22,768 |
Benefit for income taxes | 146 | -6,169 |
Loss from continuing operations | -1,245 | -16,599 |
Income from discontinued operations | 0 | 23,922 |
Net (loss)/income | -1,245 | 7,323 |
Net loss/(income) attributable to non-controlling interest | 0 | 0 |
Net (loss)/income | -1,245 | 7,323 |
Other comprehensive (loss)/income | 0 | 0 |
Comprehensive (loss)/income attributable to Quiksilver, Inc. | -1,245 | 7,323 |
Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenues, net | 68,535 | 98,741 |
Cost of goods sold | 45,091 | 68,202 |
Gross profit | 23,444 | 30,539 |
Selling, general and administrative expense | 29,705 | 22,668 |
Asset impairments | 0 | 222 |
Operating loss | -6,261 | 7,649 |
Interest expense, net | -2 | 0 |
Foreign currency (gain)/loss | 402 | -224 |
Equity in earnings | 0 | 0 |
(Loss)/income before provision/(benefit) for income taxes | -6,661 | 7,873 |
Benefit for income taxes | 303 | -3,945 |
Loss from continuing operations | -6,964 | 11,818 |
Income from discontinued operations | -2 | 13,531 |
Net (loss)/income | -6,966 | 25,349 |
Net loss/(income) attributable to non-controlling interest | 0 | 0 |
Net (loss)/income | -6,966 | 25,349 |
Other comprehensive (loss)/income | 0 | 0 |
Comprehensive (loss)/income attributable to Quiksilver, Inc. | -6,966 | 25,349 |
Non-Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenues, net | 229,897 | 269,770 |
Cost of goods sold | 109,077 | 119,784 |
Gross profit | 120,820 | 149,986 |
Selling, general and administrative expense | 111,496 | 121,057 |
Asset impairments | 255 | 661 |
Operating loss | 9,069 | 28,268 |
Interest expense, net | 6,012 | 6,810 |
Foreign currency (gain)/loss | 1,031 | 3,026 |
Equity in earnings | 0 | 0 |
(Loss)/income before provision/(benefit) for income taxes | 2,026 | 18,432 |
Benefit for income taxes | -2,563 | 5,729 |
Loss from continuing operations | 4,589 | 12,703 |
Income from discontinued operations | 6,734 | 164 |
Net (loss)/income | 11,323 | 12,867 |
Net loss/(income) attributable to non-controlling interest | 788 | 464 |
Net (loss)/income | 12,111 | 13,331 |
Other comprehensive (loss)/income | -18,619 | -14,422 |
Comprehensive (loss)/income attributable to Quiksilver, Inc. | -6,508 | -1,091 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenues, net | -29,230 | -59,253 |
Cost of goods sold | -26,810 | -44,980 |
Gross profit | -2,420 | -14,273 |
Selling, general and administrative expense | -1,950 | -4,932 |
Asset impairments | 0 | 0 |
Operating loss | -470 | -9,341 |
Interest expense, net | 0 | 0 |
Foreign currency (gain)/loss | 0 | 0 |
Equity in earnings | 3,430 | 35,858 |
(Loss)/income before provision/(benefit) for income taxes | -3,900 | -45,199 |
Benefit for income taxes | 0 | 0 |
Loss from continuing operations | -3,900 | -45,199 |
Income from discontinued operations | 0 | 0 |
Net (loss)/income | -3,900 | -45,199 |
Net loss/(income) attributable to non-controlling interest | 0 | 0 |
Net (loss)/income | -3,900 | -45,199 |
Other comprehensive (loss)/income | 18,619 | 14,422 |
Comprehensive (loss)/income attributable to Quiksilver, Inc. | $14,719 | ($30,777) |
Condensed_Consolidation_Financ4
Condensed Consolidation Financial Information - Condensed Consolidating Balance Sheet (Detail) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 | Jan. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $60,656 | $46,664 | $69,988 | $57,280 |
Restricted cash | 1,745 | 4,687 | ||
Trade accounts receivable, net | 258,952 | 311,014 | ||
Other receivables | 51,101 | 40,847 | ||
Inventories | 306,119 | 284,517 | ||
Deferred income taxes - current | 4,533 | 4,926 | ||
Prepaid expenses and other current assets | 31,315 | 28,080 | ||
Intercompany balances | 0 | 0 | ||
Current portion of assets held for sale | 0 | 20,265 | ||
Total current assets | 714,421 | 741,000 | ||
Restricted cash | 3,918 | 16,514 | ||
Fixed assets, net | 194,107 | 213,768 | ||
Intangible assets, net | 137,165 | 135,510 | ||
Goodwill | 79,805 | 80,622 | 261,625 | |
Other assets | 39,946 | 47,086 | ||
Deferred income taxes long-term | 14,352 | 16,088 | ||
Investment in subsidiaries | 0 | 0 | ||
Assets held for sale, net of current portion | 0 | 5,394 | ||
Total assets | 1,183,714 | 1,255,982 | ||
Current liabilities: | ||||
Lines of credit | 31,093 | 32,929 | ||
Accounts payable | 174,090 | 168,307 | ||
Accrued liabilities | 101,591 | 112,701 | ||
Current portion of long-term debt | 2,261 | 2,432 | ||
Income taxes payable | 2,505 | 1,124 | ||
Deferred income taxes - current | 19,490 | 19,628 | ||
Intercompany balances | 0 | 0 | ||
Current portion of assets held for sale | 0 | 13,266 | ||
Total current liabilities | 331,030 | 350,387 | ||
Long-term debt, net of current portion | 770,048 | 793,229 | ||
Other long-term liabilities | 34,702 | 39,342 | ||
Deferred income taxes long-term | 21,304 | 16,790 | ||
Total liabilities | 1,157,084 | 1,199,748 | ||
Stockholders’/invested equity | 26,630 | 53,876 | ||
Non-controlling interest | 0 | 2,358 | ||
Total liabilities and equity | 1,183,714 | 1,255,982 | ||
Quiksilver, Inc. | ||||
Current assets: | ||||
Cash and cash equivalents | 157 | 158 | 34 | 35 |
Restricted cash | 0 | 0 | ||
Trade accounts receivable, net | 0 | 0 | ||
Other receivables | 10 | 10 | ||
Inventories | 0 | 0 | ||
Deferred income taxes - current | 0 | 0 | ||
Prepaid expenses and other current assets | 1,593 | 1,579 | ||
Intercompany balances | 0 | 0 | ||
Current portion of assets held for sale | 0 | |||
Total current assets | 1,760 | 1,747 | ||
Restricted cash | 0 | 0 | ||
Fixed assets, net | 19,754 | 20,381 | ||
Intangible assets, net | 8,533 | 6,674 | ||
Goodwill | 0 | 0 | ||
Other assets | 6,682 | 7,097 | ||
Deferred income taxes long-term | 30,807 | 30,807 | ||
Investment in subsidiaries | 728,200 | 722,935 | ||
Assets held for sale, net of current portion | 0 | |||
Total assets | 795,736 | 789,641 | ||
Current liabilities: | ||||
Lines of credit | 0 | 0 | ||
Accounts payable | 2,373 | 4,582 | ||
Accrued liabilities | 29,258 | 17,887 | ||
Current portion of long-term debt | 0 | 0 | ||
Income taxes payable | 0 | 0 | ||
Deferred income taxes - current | 31,450 | 31,450 | ||
Intercompany balances | 203,267 | 179,251 | ||
Current portion of assets held for sale | 0 | |||
Total current liabilities | 266,348 | 233,170 | ||
Long-term debt, net of current portion | 501,556 | 501,416 | ||
Other long-term liabilities | 1,202 | 1,179 | ||
Deferred income taxes long-term | 0 | 0 | ||
Total liabilities | 769,106 | 735,765 | ||
Stockholders’/invested equity | 26,630 | 53,876 | ||
Non-controlling interest | 0 | |||
Total liabilities and equity | 795,736 | 789,641 | ||
QS Wholesale, Inc. | ||||
Current assets: | ||||
Cash and cash equivalents | 17,392 | 2,867 | 7,258 | 3,733 |
Restricted cash | 0 | 0 | ||
Trade accounts receivable, net | 44,120 | 51,663 | ||
Other receivables | 2,185 | 3,402 | ||
Inventories | 33,719 | 25,681 | ||
Deferred income taxes - current | 21,554 | 21,554 | ||
Prepaid expenses and other current assets | 8,705 | 6,209 | ||
Intercompany balances | 256,475 | 258,808 | ||
Current portion of assets held for sale | 0 | |||
Total current assets | 384,150 | 370,184 | ||
Restricted cash | 0 | 16,514 | ||
Fixed assets, net | 32,336 | 34,408 | ||
Intangible assets, net | 43,655 | 43,815 | ||
Goodwill | 61,983 | 61,982 | ||
Other assets | 4,955 | 5,160 | ||
Deferred income taxes long-term | 0 | 0 | ||
Investment in subsidiaries | 1,849 | 1,525 | ||
Assets held for sale, net of current portion | 0 | |||
Total assets | 528,928 | 533,588 | ||
Current liabilities: | ||||
Lines of credit | 0 | 0 | ||
Accounts payable | 36,163 | 40,942 | ||
Accrued liabilities | 12,435 | 15,092 | ||
Current portion of long-term debt | 600 | 600 | ||
Income taxes payable | 720 | 0 | ||
Deferred income taxes - current | 0 | 0 | ||
Intercompany balances | 0 | 0 | ||
Current portion of assets held for sale | 0 | |||
Total current liabilities | 49,918 | 56,634 | ||
Long-term debt, net of current portion | 28,580 | 22,657 | ||
Other long-term liabilities | 7,178 | 9,800 | ||
Deferred income taxes long-term | 38,052 | 38,052 | ||
Total liabilities | 123,728 | 127,143 | ||
Stockholders’/invested equity | 405,200 | 406,445 | ||
Non-controlling interest | 0 | |||
Total liabilities and equity | 528,928 | 533,588 | ||
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | -4,353 | -2,701 | -1,939 | 296 |
Restricted cash | 0 | 0 | ||
Trade accounts receivable, net | 22,138 | 34,779 | ||
Other receivables | 1,476 | 1,071 | ||
Inventories | 75,499 | 72,761 | ||
Deferred income taxes - current | 0 | 0 | ||
Prepaid expenses and other current assets | 3,039 | 2,941 | ||
Intercompany balances | 0 | 0 | ||
Current portion of assets held for sale | 28 | |||
Total current assets | 97,799 | 108,879 | ||
Restricted cash | 0 | 0 | ||
Fixed assets, net | 21,783 | 21,259 | ||
Intangible assets, net | 1,109 | 1,150 | ||
Goodwill | 11,089 | 11,089 | ||
Other assets | 916 | 1,255 | ||
Deferred income taxes long-term | 2,052 | 2,052 | ||
Investment in subsidiaries | 0 | 0 | ||
Assets held for sale, net of current portion | 0 | |||
Total assets | 134,748 | 145,684 | ||
Current liabilities: | ||||
Lines of credit | 0 | 0 | ||
Accounts payable | 18,760 | 22,008 | ||
Accrued liabilities | 6,157 | 7,230 | ||
Current portion of long-term debt | 0 | 0 | ||
Income taxes payable | 0 | 0 | ||
Deferred income taxes - current | 4,925 | 4,925 | ||
Intercompany balances | 39,528 | 39,265 | ||
Current portion of assets held for sale | 6 | |||
Total current liabilities | 69,370 | 73,434 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Other long-term liabilities | 7,514 | 7,420 | ||
Deferred income taxes long-term | 0 | 0 | ||
Total liabilities | 76,884 | 80,854 | ||
Stockholders’/invested equity | 57,864 | 64,830 | ||
Non-controlling interest | 0 | |||
Total liabilities and equity | 134,748 | 145,684 | ||
Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 47,460 | 46,340 | 64,635 | 53,216 |
Restricted cash | 1,745 | 4,687 | ||
Trade accounts receivable, net | 192,694 | 224,572 | ||
Other receivables | 47,459 | 36,644 | ||
Inventories | 218,634 | 203,529 | ||
Deferred income taxes - current | 4,533 | 4,926 | ||
Prepaid expenses and other current assets | 17,978 | 17,351 | ||
Intercompany balances | 0 | 0 | ||
Current portion of assets held for sale | 20,237 | |||
Total current assets | 530,503 | 558,286 | ||
Restricted cash | 3,918 | 0 | ||
Fixed assets, net | 120,234 | 137,720 | ||
Intangible assets, net | 83,868 | 83,871 | ||
Goodwill | 6,733 | 7,551 | ||
Other assets | 27,393 | 33,574 | ||
Deferred income taxes long-term | 14,352 | 16,088 | ||
Investment in subsidiaries | 0 | 0 | ||
Assets held for sale, net of current portion | 5,394 | |||
Total assets | 787,001 | 842,484 | ||
Current liabilities: | ||||
Lines of credit | 31,093 | 32,929 | ||
Accounts payable | 116,794 | 100,775 | ||
Accrued liabilities | 53,741 | 72,492 | ||
Current portion of long-term debt | 1,661 | 1,832 | ||
Income taxes payable | 1,814 | 1,404 | ||
Deferred income taxes - current | 4,669 | 4,807 | ||
Intercompany balances | 13,680 | 40,292 | ||
Current portion of assets held for sale | 13,260 | |||
Total current liabilities | 223,452 | 267,791 | ||
Long-term debt, net of current portion | 239,912 | 269,156 | ||
Other long-term liabilities | 18,808 | 20,943 | ||
Deferred income taxes long-term | 16,111 | 11,597 | ||
Total liabilities | 498,283 | 569,487 | ||
Stockholders’/invested equity | 288,718 | 270,639 | ||
Non-controlling interest | 2,358 | |||
Total liabilities and equity | 787,001 | 842,484 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Trade accounts receivable, net | 0 | 0 | ||
Other receivables | -29 | -280 | ||
Inventories | -21,733 | -17,454 | ||
Deferred income taxes - current | -21,554 | -21,554 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Intercompany balances | -256,475 | -258,808 | ||
Current portion of assets held for sale | 0 | |||
Total current assets | -299,791 | -298,096 | ||
Restricted cash | 0 | 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 | -32,859 | ||
Investment in subsidiaries | -730,049 | -724,460 | ||
Assets held for sale, net of current portion | 0 | |||
Total assets | -1,062,699 | -1,055,415 | ||
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 | -29 | -280 | ||
Deferred income taxes - current | -21,554 | -21,554 | ||
Intercompany balances | -256,475 | -258,808 | ||
Current portion of assets held for sale | 0 | |||
Total current liabilities | -278,058 | -280,642 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Deferred income taxes long-term | -32,859 | -32,859 | ||
Total liabilities | -310,917 | -313,501 | ||
Stockholders’/invested equity | -751,782 | -741,914 | ||
Non-controlling interest | 0 | |||
Total liabilities and equity | ($1,062,699) | ($1,055,415) |
Condensed_Consolidation_Financ5
Condensed Consolidation Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Cash flows from operating activities: | ||
Net (loss)/income | ($11,558) | $15,727 |
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ||
Income from discontinued operations | -6,732 | -37,617 |
Depreciation and amortization | 10,758 | 10,545 |
Stock based compensation | 1,769 | 5,063 |
Provision for doubtful accounts | 1,598 | 1,662 |
Asset impairments | 255 | 883 |
Equity in earnings | 596 | 352 |
Non-cash interest expense | 857 | 914 |
Deferred income taxes | -5,225 | 5 |
Other adjustments to reconcile net (loss)/income | -305 | 2,799 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 32,227 | 61,905 |
Inventories | -39,724 | -31,169 |
Intercompany | 0 | |
Other operating assets and liabilities | 10,669 | -35,185 |
Cash used in operating activities of continuing operations | -4,815 | -4,116 |
Cash provided by/(used in) operating activities of discontinued operations | 4,668 | -7,195 |
Net cash used in operating activities | -147 | -11,311 |
Cash flows from investing activities | ||
Proceeds from sale of property | 455 | 0 |
Capital expenditures | -15,944 | -10,558 |
Changes in restricted cash | 15,538 | -60,617 |
Cash used in investing activities of continuing operations | 49 | -71,175 |
Cash provided by investing activities of discontinued operations | 10,713 | 76,719 |
Net cash provided by investing activities | 10,762 | 5,544 |
Cash flows from financing activities: | ||
Borrowings on lines of credit | 11,770 | 18,904 |
Payments on lines of credit | -16,575 | -16,591 |
Borrowings on long-term debt | 42,734 | 52,062 |
Payments on long-term debt | -32,420 | -33,779 |
Payments on short-term debt | 0 | |
Payments of debt issuance costs | 0 | -335 |
Stock option exercises and employee stock purchases | 372 | 3,138 |
Payments to (Proceeds from) Intercompany Activity | 0 | 0 |
Cash provided by financing activities of continuing operations | 5,881 | 23,399 |
Cash provided by financing activities of discontinued operations | 0 | |
Net cash provided by financing activities | 5,881 | 23,399 |
Effect of exchange rate changes on cash | -2,504 | -4,924 |
Net increase in cash and cash equivalents | 13,992 | 12,708 |
Cash and cash equivalents, beginning of period | 46,664 | 57,280 |
Cash and cash equivalents, end of period | 60,656 | 69,988 |
Quiksilver, Inc. | ||
Cash flows from operating activities: | ||
Net (loss)/income | -10,770 | 15,387 |
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ||
Income from discontinued operations | 0 | 0 |
Depreciation and amortization | 738 | 585 |
Stock based compensation | 1,769 | 5,063 |
Provision for doubtful accounts | 0 | 0 |
Asset impairments | 0 | 0 |
Equity in earnings | -3,106 | -35,932 |
Non-cash interest expense | 507 | 462 |
Deferred income taxes | 0 | 0 |
Other adjustments to reconcile net (loss)/income | -154 | 35 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 0 | 0 |
Inventories | 0 | 0 |
Intercompany | 16,346 | |
Other operating assets and liabilities | 8,992 | 12,141 |
Cash used in operating activities of continuing operations | 14,322 | -2,259 |
Cash provided by/(used in) operating activities of discontinued operations | 0 | 0 |
Net cash used in operating activities | 14,322 | -2,259 |
Cash flows from investing activities | ||
Proceeds from sale of property | 0 | |
Capital expenditures | -2,000 | -1,970 |
Changes in restricted cash | 0 | 0 |
Cash used in investing activities of continuing operations | -2,000 | -1,970 |
Cash provided by investing activities of discontinued operations | 0 | 0 |
Net cash provided by investing activities | -2,000 | -1,970 |
Cash flows from financing activities: | ||
Borrowings on lines of credit | 0 | 0 |
Payments on lines of credit | 0 | 0 |
Borrowings on long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Payments on short-term debt | 0 | |
Payments of debt issuance costs | -373 | |
Stock option exercises and employee stock purchases | 372 | 3,138 |
Payments to (Proceeds from) Intercompany Activity | -12,549 | 1,463 |
Cash provided by financing activities of continuing operations | -12,177 | 4,228 |
Cash provided by financing activities of discontinued operations | 0 | |
Net cash provided by financing activities | -12,177 | 4,228 |
Effect of exchange rate changes on cash | -146 | 0 |
Net increase in cash and cash equivalents | -1 | -1 |
Cash and cash equivalents, beginning of period | 158 | 35 |
Cash and cash equivalents, end of period | 157 | 34 |
QS Wholesale, Inc. | ||
Cash flows from operating activities: | ||
Net (loss)/income | -1,245 | 7,323 |
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ||
Income from discontinued operations | 0 | -23,922 |
Depreciation and amortization | 2,373 | 2,589 |
Stock based compensation | 0 | 0 |
Provision for doubtful accounts | 82 | 1,088 |
Asset impairments | 0 | 0 |
Equity in earnings | -324 | 74 |
Non-cash interest expense | 299 | 239 |
Deferred income taxes | 0 | 0 |
Other adjustments to reconcile net (loss)/income | -615 | -9 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 7,461 | 10,795 |
Inventories | -8,038 | -8,275 |
Intercompany | 18,607 | |
Other operating assets and liabilities | -10,697 | -11,998 |
Cash used in operating activities of continuing operations | 7,903 | -22,096 |
Cash provided by/(used in) operating activities of discontinued operations | 0 | 0 |
Net cash used in operating activities | 7,903 | -22,096 |
Cash flows from investing activities | ||
Proceeds from sale of property | 0 | |
Capital expenditures | -887 | -2,397 |
Changes in restricted cash | 16,514 | -60,214 |
Cash used in investing activities of continuing operations | 15,627 | -62,611 |
Cash provided by investing activities of discontinued operations | 0 | 58,060 |
Net cash provided by investing activities | 15,627 | -4,551 |
Cash flows from financing activities: | ||
Borrowings on lines of credit | 0 | 0 |
Payments on lines of credit | 0 | 0 |
Borrowings on long-term debt | 22,515 | 40,500 |
Payments on long-term debt | -16,600 | -18,500 |
Payments on short-term debt | 0 | |
Payments of debt issuance costs | 38 | |
Stock option exercises and employee stock purchases | 0 | 0 |
Payments to (Proceeds from) Intercompany Activity | -14,920 | 8,134 |
Cash provided by financing activities of continuing operations | -9,005 | 30,172 |
Cash provided by financing activities of discontinued operations | 0 | |
Net cash provided by financing activities | -9,005 | 30,172 |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase in cash and cash equivalents | 14,525 | 3,525 |
Cash and cash equivalents, beginning of period | 2,867 | 3,733 |
Cash and cash equivalents, end of period | 17,392 | 7,258 |
Guarantor Subsidiaries | ||
Cash flows from operating activities: | ||
Net (loss)/income | -6,966 | 25,349 |
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ||
Income from discontinued operations | 2 | -13,531 |
Depreciation and amortization | 1,573 | 1,330 |
Stock based compensation | 0 | 0 |
Provision for doubtful accounts | 206 | -209 |
Asset impairments | 0 | 222 |
Equity in earnings | 0 | 0 |
Non-cash interest expense | 0 | 0 |
Deferred income taxes | 0 | 0 |
Other adjustments to reconcile net (loss)/income | 384 | -219 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 12,437 | 12,403 |
Inventories | -2,267 | -2,386 |
Intercompany | -28,061 | |
Other operating assets and liabilities | -2,109 | -16,366 |
Cash used in operating activities of continuing operations | -24,801 | 6,593 |
Cash provided by/(used in) operating activities of discontinued operations | -2 | -1,861 |
Net cash used in operating activities | -24,803 | 4,732 |
Cash flows from investing activities | ||
Proceeds from sale of property | 0 | |
Capital expenditures | -4,318 | -1,299 |
Changes in restricted cash | 0 | 0 |
Cash used in investing activities of continuing operations | -4,318 | -1,299 |
Cash provided by investing activities of discontinued operations | 0 | 18,991 |
Net cash provided by investing activities | -4,318 | 17,692 |
Cash flows from financing activities: | ||
Borrowings on lines of credit | 0 | 0 |
Payments on lines of credit | 0 | 0 |
Borrowings on long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Payments on short-term debt | 0 | |
Stock option exercises and employee stock purchases | 0 | 0 |
Payments to (Proceeds from) Intercompany Activity | 27,469 | -24,659 |
Cash provided by financing activities of continuing operations | 27,469 | -24,659 |
Cash provided by financing activities of discontinued operations | 0 | |
Net cash provided by financing activities | 27,469 | -24,659 |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase in cash and cash equivalents | -1,652 | -2,235 |
Cash and cash equivalents, beginning of period | -2,701 | 296 |
Cash and cash equivalents, end of period | -4,353 | -1,939 |
Non-Guarantor Subsidiaries | ||
Cash flows from operating activities: | ||
Net (loss)/income | 11,323 | 12,867 |
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ||
Income from discontinued operations | -6,734 | -164 |
Depreciation and amortization | 6,074 | 6,041 |
Stock based compensation | 0 | 0 |
Provision for doubtful accounts | 1,310 | 783 |
Asset impairments | 255 | 661 |
Equity in earnings | 596 | 352 |
Non-cash interest expense | 51 | 213 |
Deferred income taxes | -5,225 | 5 |
Other adjustments to reconcile net (loss)/income | 80 | 2,992 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 12,329 | 38,707 |
Inventories | -29,889 | -29,849 |
Intercompany | -6,892 | |
Other operating assets and liabilities | 14,483 | -18,962 |
Cash used in operating activities of continuing operations | -2,239 | 13,646 |
Cash provided by/(used in) operating activities of discontinued operations | 4,670 | -5,334 |
Net cash used in operating activities | 2,431 | 8,312 |
Cash flows from investing activities | ||
Proceeds from sale of property | 455 | |
Capital expenditures | -8,739 | -4,892 |
Changes in restricted cash | -976 | -403 |
Cash used in investing activities of continuing operations | -9,260 | -5,295 |
Cash provided by investing activities of discontinued operations | 10,713 | -332 |
Net cash provided by investing activities | 1,453 | -5,627 |
Cash flows from financing activities: | ||
Borrowings on lines of credit | 11,770 | 18,904 |
Payments on lines of credit | -16,575 | -16,591 |
Borrowings on long-term debt | 20,219 | 11,562 |
Payments on long-term debt | -15,820 | -15,279 |
Payments on short-term debt | 0 | |
Stock option exercises and employee stock purchases | 0 | 0 |
Payments to (Proceeds from) Intercompany Activity | 0 | 15,062 |
Cash provided by financing activities of continuing operations | -406 | 13,658 |
Cash provided by financing activities of discontinued operations | 0 | |
Net cash provided by financing activities | -406 | 13,658 |
Effect of exchange rate changes on cash | -2,358 | -4,924 |
Net increase in cash and cash equivalents | 1,120 | 11,419 |
Cash and cash equivalents, beginning of period | 46,340 | 53,216 |
Cash and cash equivalents, end of period | 47,460 | 64,635 |
Eliminations | ||
Cash flows from operating activities: | ||
Net (loss)/income | -3,900 | -45,199 |
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ||
Income from discontinued operations | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Stock based compensation | 0 | 0 |
Provision for doubtful accounts | 0 | 0 |
Asset impairments | 0 | 0 |
Equity in earnings | 3,430 | 35,858 |
Non-cash interest expense | 0 | 0 |
Deferred income taxes | 0 | 0 |
Other adjustments to reconcile net (loss)/income | 0 | 0 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 0 | 0 |
Inventories | 470 | 9,341 |
Intercompany | 0 | |
Other operating assets and liabilities | 0 | 0 |
Cash used in operating activities of continuing operations | 0 | 0 |
Cash provided by/(used in) operating activities of discontinued operations | 0 | 0 |
Net cash used in operating activities | 0 | 0 |
Cash flows from investing activities | ||
Proceeds from sale of property | 0 | |
Capital expenditures | 0 | 0 |
Changes in restricted cash | 0 | 0 |
Cash used in investing activities of continuing operations | 0 | 0 |
Cash provided by investing activities of discontinued operations | 0 | 0 |
Net cash provided by investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Borrowings on lines of credit | 0 | 0 |
Payments on lines of credit | 0 | 0 |
Borrowings on long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Payments on short-term debt | 0 | |
Stock option exercises and employee stock purchases | 0 | 0 |
Payments to (Proceeds from) Intercompany Activity | 0 | 0 |
Cash provided by financing activities of continuing operations | 0 | 0 |
Cash provided by financing activities of discontinued operations | 0 | |
Net cash provided by financing activities | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $0 | $0 |
Restatement_of_Prior_Period_Fi2
Restatement of Prior Period Financial Statements (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2013 |
Trade accounts receivable, net | $258,952 | $311,014 | ||
Inventories | 306,119 | 284,517 | ||
Assets, Current | 714,421 | 741,000 | ||
Assets held for sale, net of current portion | 0 | 5,394 | ||
Total assets | 1,183,714 | 1,255,982 | ||
Income taxes payable | 2,505 | 1,124 | ||
Current portion of assets held for sale | 0 | 13,266 | ||
Liabilities, Current | 331,030 | 350,387 | ||
Liabilities | 1,157,084 | 1,199,748 | ||
Accumulated deficit | -598,177 | -587,407 | ||
Accumulated other comprehensive income | 38,669 | 59,496 | 57,288 | 73,918 |
Stockholders’/invested equity | 26,630 | 53,876 | ||
Non-controlling interest | 0 | 2,358 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 26,630 | 377,432 | 56,234 | 384,199 |
Revenues, net | 340,854 | 394,910 | ||
Gross Margin | 169,444 | 200,640 | ||
Operating loss | -1,315 | -4,027 | ||
Loss from continuing operations | -18,290 | -21,890 | ||
Net (loss)/income | -10,770 | 16,191 | ||
Net (loss)/income per share attributable to Quiksilver, Inc. (usd per share) | ($0.06) | $0.10 | ||
As Previously Reported | ||||
Trade accounts receivable, net | 319,840 | |||
Inventories | 278,780 | |||
Assets, Current | 744,089 | |||
Assets held for sale, net of current portion | 2,987 | |||
Total assets | 1,256,664 | |||
Income taxes payable | 1,156 | |||
Current portion of assets held for sale | 12,640 | |||
Liabilities, Current | 349,793 | |||
Liabilities | 1,199,154 | |||
Accumulated deficit | -585,263 | |||
Accumulated other comprehensive income | 57,298 | |||
Stockholders’/invested equity | 56,030 | |||
Non-controlling interest | 1,480 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 57,510 | |||
Revenues, net | 392,612 | |||
Gross Margin | 199,836 | |||
Operating loss | -4,831 | |||
Net (loss)/income | 15,387 | |||
Net (loss)/income per share attributable to Quiksilver, Inc. (usd per share) | $0.09 | |||
Americas | ||||
Revenues, net | 175,463 | |||
Gross Margin | 75,914 | |||
Operating loss | -13,869 | |||
Identifiable assets | 464,831 | |||
Americas | As Previously Reported | ||||
Revenues, net | 173,165 | |||
Gross Margin | 75,110 | |||
Operating loss | -14,673 | |||
Identifiable assets | 467,920 | |||
EMEA | ||||
Identifiable assets | 513,303 | |||
EMEA | As Previously Reported | ||||
Identifiable assets | $510,896 |