2020 Highlights and Growth Strategy
NON-GAAP RECONCILIATION (cont'd)
Non-GAAP income from operations and operating margin reconciliation:
Three Months Ended December
Non-GAAP income tax expense (benefit) and effective tax rate reconciliation:
31,
Year Ended
December 31,
Three Months Ended December
31,
Year Ended
December 31,
2020
2019
2020
2019
2020
GAAP revenues
$
411,506 $
(in thousands)
262,979
2019
(in thousands)
2020
2019
$ 1,385,951 $
1,230,593
GAAP income from operations
$
GAAP income before income taxes
64,631 $
63,423
206,979
8,356 $ 214,124 $ 128,649
6,220
119,322
GAAP income from operations
$
Non-GAAP cost of sales adjustments (1)
64,631
1,550
$
8,356
3,329
$
214,124 $
6,701
128,649
11,485
Non-GAAP selling, general and administrative
expenses adjustments (2)
20,850
Non-GAAP income from operations
$
87,031
$
1,173
12,858
$
41,736
262,561
$
2,871
143,005
Non-GAAP income from operations (1)
GAAP non-operating income (expenses):
Foreign currency gains (losses), net
Interest income
$
87,031 $
12,858 $ 262,561 $
143,005
306
26
(430)
108
(1,128)
215
(1,323)
601
Interest expense
(1,149)
(1,893)
GAAP operating margin
15.7%
3.2 %
15.4 %
10.5°
Other income (expense), net
Non-GAAP operating margin
21.1 %
4.9%
18.9%
11.6°
Non-GAAP income before income taxes
$
(391)
85,823 $
79
10,722
$
(6,742)
510
255,416 $ 133,678
(8,636)
31
(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.
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
$
(119,907) $
6,014
(13,693)
1,126
$
(105,882) $
12,123
(175)
3,589
14,655
14,655
Intra-entity IP transfer (2)
Non-GAAP income tax expense
$
127,718
13,825 $
127,718
2,088 $
33,959 $
18,069
GAAP effective income tax rate
Non-GAAP effective income tax rate
(189.1)%
16.1 %
(220.1)%
19.5 %
(51.2)%
(0.1)º
13.3 %
13.59
crocs™
(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.
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