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 income (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 income tax rate Non-GAAP effective income tax rate crocs™ Three Months Ended December 31, 2021 2020 $ 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 % $ $ (in thousands) 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 % $ 2021 Year Ended December 31, 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% 2020 $ 214,124 206,979 $ 262,561 (1,128) 215 (6,742) 510 $ 255,416 $ (105,882) 12,123 127,718 33,959 $ (51.2)% 13.3% (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, including the release of the 2020 valuation allowance as a result of a tax law change. 34
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