Crocs Results Presentation Deck

APPENDIX Non-GAAP Reconciliation (Cont'd) Non-GAAP Income Tax Expense (Benefit) and Effective Tax Rate Reconciliation: Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 2022 2022 GAAP income from operations GAAP income before income taxes (1) Non-GAAP income from operations GAAP non-operating income (expenses): Foreign currency gains (losses), net Interest income Interest expense Other income (expense), net Non-GAAP income before income taxes GAAP income tax expense Tax effect of non-GAAP operating adjustments Impact of intra-entity IP transfers (²) Non-GAAP income tax expense GAAP effective income tax rate Non-GAAP effective income tax rate 318,489 277,242 324,579 551 548 (43,063) 717 283,332 64,830 1,544 (7,695) 58,679 23.4% 20.7 % (in thousands) 247,964 $ 214,304 290,614 (1,202) 86 (32,963) 419 256,954 53,989 8,416 (6,799) 55,606 $ 25.2 % 21.6% 553,417 469,008 571,620 148 719 (85,700) 424 487,211 107,053 4,614 (12,516) 99,151 22.8 % 20.4 % $ 366,641 313,364 466,077 (722) 188 (52,215) (528) 412,800 80,289 16,038 (9,906) 86,421 25.6 % 20.9 % (2) (!)See 'Non-GAAP income from operations and operating margin reconciliation' above for more details. In the fourth quarter of 2020, and subsequently in the fourth quarter of 2021, we made changes to our international legal structure, including an intra-entity transfer of certain intellectual property rights, primarily to align with current and future international operations. The transfers resulted in a step-up in the tax basis of intellectual property rights and correlated increases in foreign deferred tax assets based on the fair value of the transferred intellectual property rights. This adjustment represents the current period impact of these transfers. The prior year adjustment also includes the release of the valuation allowance as a result of a tax law change. CROCS inc 37

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