XML 31 R22.htm IDEA: XBRL DOCUMENT v3.22.2.2
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION
Crocs, Inc. has four reportable operating segments. For the Crocs Brand, we have three reportable operating segments based on the geographic nature of our operations: North America, Asia Pacific, and EMEALA. Beginning in the three months ended March 31, 2022, our HEYDUDE Brand also became a reportable segment on the Acquisition Date. Each of the reportable operating segments derives its revenues from the sale of footwear and accessories to external customers.

Additionally, Crocs ‘Brand corporate’ costs represent operating expense that includes product creation, design, and marketing expenses centrally managed for the Crocs Brand, as well as certain royalty income. Crocs Brand corporate costs are included within the Crocs Brand for presentation purposes to align with the way management views the Company. ‘Enterprise corporate’ costs include global corporate costs associated with both brands, including legal, information technology, human resources, and finance, as well as costs associated with global digital operations.

Each segment’s performance is evaluated based on segment results without allocating Brand corporate or Enterprise corporate expenses. Segment profits or losses include adjustments to eliminate inter-segment sales. Reconciling items between segment income from operations and income from operations consist of unallocated brand and enterprise corporate and other expenses, as well as inter-segment eliminations.

We do not report asset information by segment because that information is not used to evaluate performance or allocate resources between segments.
The following tables set forth information related to reportable operating segments:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(in thousands)
Revenues:
North America (1)
$445,327 $437,746 $1,187,713 $1,098,165 
Asia Pacific138,450 83,645 383,187 293,071 
EMEALA (1)
131,929 104,503 422,226 335,481 
Brand corporate (2)
1 25 22 73 
Total Crocs Brand715,707 625,919 1,993,148 1,726,790 
HEYDUDE Brand (3)
269,387 — 616,675 — 
Total consolidated revenues$985,094 $625,919 $2,609,823 $1,726,790 
Income from operations:
North America (1)
$191,438 $224,118 $498,413 $524,991 
Asia Pacific40,286 16,361 121,823 70,492 
EMEALA (1)
40,506 35,721 128,819 117,128 
Brand corporate (2)
(36,896)(27,992)(95,864)(69,393)
Total Crocs Brand235,334 248,208 653,191 643,218 
HEYDUDE Brand (3)
79,056 — 136,381 — 
Reconciliation of total segment income from operations to income before income taxes:
  
Enterprise corporate (2)
(50,327)(45,140)(158,868)(120,142)
Income from operations
264,063 203,068 630,704 523,076 
Foreign currency gains (losses), net(393)537 (1,115)(84)
Interest income31 615 219 713 
Interest expense(34,142)(6,486)(86,357)(12,830)
Other income (expense), net16 2 (512)15 
Income before income taxes$229,575 $197,736 $542,939 $510,890 
Depreciation and amortization:
North America (1)
$2,705 $3,035 $7,514 $4,766 
Asia Pacific508 449 1,528 1,061 
EMEALA (1)
746 698 2,166 1,064 
Brand corporate (2)
164 135 529 5,610 
Total Crocs Brand
4,123 4,317 11,737 12,501 
HEYDUDE Brand (3)
3,500 — 8,750 — 
Enterprise corporate (2)
2,121 3,766 6,011 11,331 
Total consolidated depreciation and amortization
$9,744 $8,083 $26,498 $23,832 
(1) In the first quarter of 2022, certain revenues and expenses associated with our Latin America businesses previously reported in our ‘Americas’ segment were shifted into the ‘EMEA’ segment to better align with how we manage our distributor business. To reflect this change, we renamed our ‘Americas’ segment to ‘North America’ and renamed our ‘EMEA’ segment to ‘EMEALA.’ As a result of these changes, the previously reported amounts for revenues, income from operations, and depreciation and amortization for the three and nine months ended September 30, 2021 have been revised to conform to current period presentation. Refer to Part I - Item I. Financial Statements in our Quarterly Report on Form 10-Q for the period ended June 30, 2022 for more information.
(2) In the first quarter of 2022, as a result of the Acquisition, all costs previously reported in “Unallocated corporate and other” were recast between ‘Brand corporate’ costs associated with the Crocs Brand and ‘Enterprise corporate’ costs, each of which is defined in the section preceding the above table. As a result of these changes, the previously reported amounts for income from operations and depreciation and amortization for the three and nine months ended September 30, 2021 have been revised to conform to current period presentation.
Refer to Part I - Item I. Financial Statements in our Quarterly Report on Form 10-Q for the period ended June 30, 2022 for more information.(3) We acquired HEYDUDE on February 17, 2022 and in connection therewith added the HEYDUDE Brand as a new operating segment. Therefore, the amounts shown above for the nine months ended September 30, 2022 represent results during the partial period beginning on the Acquisition Date through September 30, 2022, and there are no comparative amounts for the three and nine months ended September 30, 2021.