FULL YEAR 2020 FINANCIAL GUIDANCE

NON-GAAP RECONCILIATION (CONT'D) Non-GAAP income (loss) from operations and operating margin reconciliation: Non-GAAP income tax expense (benefit) and effective tax rate reconciliation: Three Months Ended December 31, Year Ended December 31, Three Months Ended December 31, Year Ended December 31, 2019 2018 2019 2018 2019 (in thousands) 2018 (in thousands) 2019 2018 GAAP revenues $ 262,979 $ 215,989 $ 1,230,593 $ 1,088,205 GAAP income (loss) from operations GAAP income (loss) before income taxes $ 8,356 $ 6,220 (13,937) $ 128,649 $ (14,016) 62,944 119,322 65,157 GAAP income (loss) from operations Non-GAAP cost of sales adjustments (¹) 8,356 $ 3,329 (13,937) $ 128,649 $ 11,485 62,944 Non-GAAP selling, general and administrative expenses adjustments (2) 1,173 Non-GAAP income (loss) from operations $ 12,858 $ 4,556 (9,381) $ 2,871 143,005 $ 21,100 84,044 Non-GAAP income (loss) from operations (¹) GAAP non-operating income (expenses): Foreign currency gains (losses), net $ 12,858 $ (9,381) $ 143,005 $ 84,044 Interest income (430) 108 (269) 434 (1,323) 1,318 601 1,281 GAAP operating margin Non-GAAP operating margin 3.2% 4.9% (6.5)% 10.5% 5.8% Interest expense (1,893) Other income, net 79 (4.3)% 11.6% 7.7% Non-GAAP income (loss) before income taxes $ 10,722 $ (584) 340 (9,460) $ (8,636) (955) 31 569 133,678 $ 86,257 (1) See 'Non-GAAP cost of sales reconciliation' above for more details. (2) See 'Non-GAAP selling, general and administrative expenses reconciliation' above for more details. GAAP income tax expense (benefit) $ (13,693) $ (3,130) $ (175) $ 14,720 Tax effect of non-GAAP operating adjustments and benefit of U.S. deferred tax assets previously subiect to valuation allowance (2) crocs™ Non-GAAP income tax expense GAAP effective income tax rate Non-GAAP effective income tax rate $ 15,781 2,088 $ 18,244 (3,130) $ 18,069 $ 14,720 (220.1)% 19.5 % 22.3% (0.1)% 22.6% 33.1% 13.5 % 17.1% (1) See 'Non-GAAP income (loss) from operations and operating margin reconciliation' above for more details. (2) Prior to the quarter ended December 31, 2019, non-GAAP operating adjustments were in jurisdictions subject to a full valuation allowance, and thus had no net tax impact. 25 45

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