Crocs Investor Presentation Deck
APPENDIX
Non-GAAP Reconciliation (Cont'd)
Non-GAAP Income Tax Expense (Benefit) and Effective Tax Rate Reconciliation:
Nine Months Ended September 30,
Three Months Ended September 30,
2023
2022
2023
2022
GAAP income from operations
GAAP income before income taxes
(1)
Non-GAAP income from operations
GAAP non-operating income (expenses):
Foreign currency 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
273,852
233,405
295,919
(1,770)
506
(39,207)
24
255,472
56,380
5,462
(6,717)
55,125
24.2%
21.6%
(in thousands)
264,063 $
229,575
274,465
(393)
31
(34,142)
16
239,977
60,226
2,751
(8,368)
54,609
26.2%
22.8%
$
827,269
702,413
867,539
(1,622)
1,225
(124,907)
448
742,683
163,433
10,076
(19,233)
154,276 $
23.3 %
20.8%
630,704
542,939
740,542
(1,115)
219
(86,357)
(512)
652,777
140,515
18,789
(18,274)
141,030
25.9 %
21.6%
(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
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