Crocs Investor Day Presentation Deck slide image

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. 92
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