Crocs Mergers and Acquisitions Presentation Deck slide image

Crocs Mergers and Acquisitions Presentation Deck

DEFINITIONS AND NON-GAAP RECONCILIATIONS Adjusted Operating Margin: (GAAP income from operations adjusted for non-recurring items) / (GAAP revenues) Reconciliation of GAAP to Non-GAAP Financial Guidance: Full Year 2021 (as provided on October 21, 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 Full Year 2022 (as provided on October 21, 2021) Non-GAAP operating margin reconciliation: GAAP operating margin Non-GAAP adjustments associated with air freight Non-GAAP operating margin Approximately: 27% 1% 28% crocs™ (3)% 26% 23% Approximately: 25% 3% 28% Our guidance for "Adjusted Operating Margin" is a non-GAAP financial measure that excludes or otherwise has 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 Crocs 2026E and HEYDUDE 2024E adjusted operating margin 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. 22
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