Crocs Investor Presentation Deck slide image

Crocs Investor Presentation Deck

NON-GAAP RECONCILIATION (cont'd) Non-GAAP income tax expense (benefit) and effective tax rate reconciliation: GAAP income from operations GAAP income before income taxes Non-GAAP income from operations (1) GAAP non-operating income (expenses): Foreign currency losses, net Interest income Interest expense Other income, net Non-GAAP income before income taxes GAAP income tax expense Tax effect of non-GAAP operating adjustments Impact of 2020 intra-entity IP transfer (2) Non-GAAP income tax expense GAAP effective income tax rate Non-GAAP effective income tax rate crocs™ Three Months Ended June 30, 2021 2020 195,322 190,566 196,437 (117) 71 (4,712) 2 191,681 (128,388) 279 175,411 47,302 (67.4)% 24.7 % $ (in thousands) 56,595 $ 54,694 73,813 $ (687) 49 (2,170) 907 71,912 (1,857) 4,075 2,218 (3.4)% 3.1 % Six Months Ended June 30, 2021 320,008 313,154 322,108 (621) 98 (6,344) 13 315,254 (104,198) 528 175,059 71,389 (33.3)% 22.6 % 2020 77,407 73,472 100, 165 (918) 146 (4,091) 928 96,230 5,830 5,460 11,290 (1) See 'Non-GAAP income from operations and operating margin reconciliation' above for more details. (2) In the fourth quarter of 2020, 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 transfer resulted in a step-up in the tax basis of intellectual property rights and a correlated increase in foreign deferred tax assets based on the fair value of the transferred intellectual property rights. This adjustment represents the current period impact of this transfer, including the release of the valuation allowance as a result of a tax law change. 7.9 % 11.7% 27
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