Global Business Update and Q3 Financial Results slide image

Global Business Update and Q3 Financial Results

NON-GAAP RECONCILIATION (cont'd) Non-GAAP income from operations and operating margin reconciliation: Non-GAAP earnings per share reconciliation: Three Months Ended September 30, 2020 2019 Nine Months Ended September 30, 2020 2019 Three Months Ended September 30, 2020 2019 Nine Months Ended September 30, 2020 2019 GAAP revenues $ 361,736 $ (in thousands) 312,766 $ 974,445 $ 967,614 (in thousands, except per share data) Numerator: GAAP income from operations GAAP net income $ $ Non-GAAP cost of sales adjustments (1) 72,086 $ 1,016 39,884 3,720 $ 149,493 5,151 $ 120,293 8,156 Non-GAAP selling, general and Non-GAAP cost of sales adjustments (¹) Non-GAAP selling, general and 61,889 1,016 $ 35,676 $ 3,720 129,531 S 5,151 99,584 8,156 administrative expenses adjustments (2) 2,263 Non-GAAP income from operations $ 75,365 $ 809 44,413 $ 20,886 175,530 $ 1,698 130,147 GAAP operating margin Non-GAAP operating margin 19.9% 20.8 % 12.8% 15.3 % 12.49 administrative expenses adjustments (2) Non-GAAP other income adjustment (3) Tax effect of non-GAAP adjustments (4) Non-GAAP net income 2,263 809 20,886 1,698 (919) (649) (6,109) $ 64,519 $ 40,205 $ 148,540 $ 109,438 14.2 % 18.0 % 13.5% Denominator: GAAP weighted average common shares (1) See 'Non-GAAP cost of sales, gross profit, and gross margin reconciliation' above for more details. (2) See 'Non-GAAP selling, general and administrative expenses reconciliation' above for more details. outstanding - basic 67,473 69,097 67,606 71,003 Plus: GAAP dilutive effect of stock options and unvested restricted stock units 912 1,079 1,002 1,339 GAAP weighted average common shares outstanding - diluted 68,385 70,176 68,608 72,342 GAAP net income per common share: Basic $ 0.92 Diluted $ 0.91 $ $ 0.52 $ 0.51 $ 1.92 $ 1.40 1.89 $ 1.38 Non-GAAP net income per common share: Basic $ 0.96 $ Diluted $ 0.94 $ 0.58 $ 0.57 $ 2.20 $ 1.54 2.17 $ 1.51 (1) See 'Non-GAAP cost of sales, gross profit, and gross margin reconciliation' above for more information. (2) See 'Non-GAAP selling, general and administrative expenses reconciliation' above for more information. (3) Represents a fair value adjustment associated with our donations of inventory. crocs™ 27 27 (4) In the three months and nine months ended September 30, 2019, non-GAAP adjustments were in jurisdictions subject to a full valuation allowance, and thus had no material net tax impact.
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