Crocs Investor Presentation Deck slide image

Crocs Investor Presentation Deck

NON-GAAP RECONCILIATION (cont'd) Non-GAAP income from operations and operating margin reconciliation: GAAP revenues GAAP income from operations Non-GAAP cost of sales adjustments (1) Non-GAAP selling, general and administrative expenses adjustments (2) Non-GAAP income from operations Three Months Ended December 31. crocs™ $ $ $ 2020 411,506 64,631 $ 1,550 20,850 87,031 $ 15.7% 21.1% 2019 8,356 3,329 GAAP operating margin Non-GAAP operating margin (1) See 'Non-GAAP cost of sales and gross margin reconciliation' above for more details. (2) See 'Non-GAAP selling, general and administrative expenses reconciliation' above for more details. 1,173 $ 12,858 (in thousands) 262,979 $ 1,385,951 $ 1,230,593 3.2% 4.9% $ Year Ended December 31, $ 2020 214,124 $ 6,701 41,736 262,561 2019 15.4% 18.9% 128,649 11,485 2,871 $ 143,005 10.5 9 11.6% 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 gains (losses), net Interest income Interest expense Other income (expense), net Non-GAAP income before income taxes GAAP income tax benefit Tax effect of non-GAAP operating adjustments Benefit of U.S. deferred tax assets previously subject to valuation allowance in 2019 Intra-entity IP transfer (2) Non-GAAP income tax expense GAAP effective income tax rate Non-GAAP effective income tax rate Three Months Ended December 31, $ $ $ 2020 64,631 $ 63,423 87,031 306 26 (1,149) (391) 85,823 (119,907) 6,014 127,718 13,825 (189.1)% 16.1% $ $ $ $ 2019 12,858 (in thousands) 8,356 $ 214,124 $ 6,220 206,979 (430) 108 (1,893) 79 10,722 2,088 $ (13,693) $ 1,126 14,655 (220.1)% 19.5% Year Ended December 31, 2019 2020 $ 262,561 (1,128) 215 (6,742) 510 $ 255,416 $ (105,882) 12,123 127,718 33,959 $ (51.2)% 13.3% $ $ 128,649 119,322 143,005 (1,323) 601 (8,636) 31 133,678 (175) 3,589 14,655 18,069 (0.1)⁰ 13.5 9 (¹) See 'Non-GAAP income from operations and operating margin reconciliation' above for more details. (2) Represents 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 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. 28
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