Crocs Investor Presentation Deck
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APPENDIX
NON-GAAP RECONCILIATION (CONT'D)
Reconciliation of GAAP to Non-GAAP Financial Guidance:
First Quarter 2023:
Non-GAAP operating margin reconciliation:
GAAP operating margin
Non-GAAP adjustments, primarily related to capital investments to support growth (1)
Non-GAAP operating margin
Non-GAAP diluted earnings per share reconciliation:
GAAP diluted earnings per share
Non-GAAP adjustments, primarily related to capital investments to support growth and amortization of intellectual property (1)(2)
Non-GAAP diluted earnings per share
Full Year 2023:
Non-GAAP operating margin reconciliation:
GAAP operating margin
Non-GAAP adjustments, primarily related to capital investments to support growth (1)
Non-GAAP operating margin
Non-GAAP effective tax rate reconciliation:
GAAP effective tax rate
Non-GAAP adjustments associated with amortization of intellectual property (2)
Non-GAAP effective tax rate
Non-GAAP diluted earnings per share reconciliation:
GAAP diluted earnings per share
Non-GAAP adjustments, primarily related to capital investments to support growth and amortization of intellectual property
Non-GAAP diluted earnings per share
Approximately:
($ in millions, except per share data)
23% to 24%
$190 to $200
$10
1%
24% to 25%
$200 to $$210
$1.91 to $2.04
$0.15
$2.06 to $2.19
Approximately:
25%
1%
26%
24%
(4)%
20%
$10.54 to $10.85
$0.46
$11.00 to $11.31
$990 to $1,010
$30
$1,020 to $1,040
(1) For the full year 2023, we expect to incur $30 million costs primarily related to capital investments to support growth and to be fairly balanced across COGS and SG&A. We expect to incur $10 million of these costs in Q1 2023.
(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. This adjustment represents the amortization of the deferred tax asset related to these intellectual property rights in this period and the tax impact of cost of sales and SG&A non-GAAP adjustments.
Our long-term guidance for "Consolidated 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. 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
expected long-term consolidated adjusted operating margin to its nearest U.S. GAAP measure without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual impact of the special and
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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.View entire presentation