Crocs Investor Day Presentation Deck
PICKING UP THE PACE I APPENDIX
DEFINITIONS AND NON-GAAP RECONCILIATIONS
Adjusted Operating Margin: (GAAP income from operations adjusted for non-recurring items) / (GAAP revenues)
Free Cash Flow: (GAAP cash provided by operating activities) - (Purchases of property, equipment, and software)
Reconciliation of 2021 GAAP to Non-GAAP Financial Guidance:
Third Quarter 2021:
Non-GAAP operating margin reconciliation:
GAAP operating margin
Non-GAAP adjustments associated with distribution center investments
Non-GAAP operating margin
Full Year 2021:
Non-GAAP operating margin reconciliation:
GAAP operating margin
Non-GAAP adjustments associated with distribution center investments
Non-GAAP operating margin
Non-GAAP effective tax rate reconciliation:
GAAP effective tax rate
Non-GAAP adjustments associated with the 2020 intra-entity IP transfer
Non-GAAP effective tax rate
Approximately:
23% to 25%
1%
24% to 26%
crocs™ | INVESTOR DAY 2021
Approximately:
24%
1%
25%
(3)%
26%
23%
Our guidance for "Adjusted Operating Margin", "Non-GAAP Tax Rate" and "Free Cash Flow" are non-GAAP financial measures that exclude or otherwise have been adjusted for special items
from our U.S. GAAP financial statements, such as inventory write-offs, duplicate rent costs, bad debt expense. We consider these items to be necessary adjustments for purposes of evaluating
our ongoing business performance and are often considered non-recurring. Such adjustments are subjective and involve significant management judgment. We are unable to reconcile the
above described 2026E guidance measures to their nearest U.S. GAAP measures without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual
impact of the special and other non-core items. By their very nature, special and other non-core items are difficult to anticipate with precision because they are generally associated with
unexpected and unplanned events that impact our company and its financial results. Therefore, we are unable to provide a reconciliation of these measures.
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