Crocs Investor Presentation Deck slide image

Crocs Investor Presentation Deck

cr CS cr CS CI OC! Cl APPENDIX NON-GAAP RECONCILIATION (CONT'D) Non-GAAP Income Tax Expense (Benefit) and Effective Tax Rate Reconciliation: Year Ended December 31, GAAP income from operations GAAP income before income taxes Non-GAAP income from operations (1) GAAP non-operating income (expenses): Foreign currency loss, net Interest income Interest expense Other income (loss), net Non-GAAP income before income taxes GAAP income tax expense (benefit) Tax effect of non-GAAP operating adjustments Impact of intra-entity IP transfers (2) Non-GAAP income tax expense GAAP effective tax rate Non-GAAP effective tax rate Three Months Ended December 31, 2022 220,052 175,569 245,790 4,343 801 (49,801) 174 $ 201,307 $ 37,834 $ 4,629 (6,737) 35,726 21.5 % 17.7% $ 2021 (in thousands) 159,988 152,959 168,055 (56) 62 (8,817) 1,782 161,026 $ (1,894) $ 439 33,076 31,621 (1.2)% 19.6 % 2022 $ 850,756 718,508 986,332 3,228 1,020 (136,158) (338) 854,084 $ 24.8 % 20.7 % $ 178,349 $ 23,418 (25,011) 176,756 $ 2021 683,064 663,849 695,262 (140) 775 (21,647) 1,797 676,047 (61,845) 1,477 206,579 146,211 (9.3)% 21.6% (1) See 'Non-GAAP income from operations and operating margin reconciliation' above for more details. (2) 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. 38
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