CROCS, INC., 10-Q filed on 4/27/2023
Quarterly Report
v3.23.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2023
Apr. 20, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2023  
Document Transition Report false  
Entity File Number 000-51754  
Entity Registrant Name CROCS, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 20-2164234  
Entity Address, Address Line One 13601 Via Varra  
Entity Address, City or Town Broomfield  
Entity Address, State or Province CO  
Entity Address, Postal Zip Code 80020  
City Area Code 303  
Local Phone Number 848-7000  
Title of 12(b) Security Common Stock, par value $0.001 per share  
Trading Symbol CROX  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   62,025,478
Amendment Flag false  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2023  
Entity Central Index Key 0001334036  
Current Fiscal Year End Date --12-31  
v3.23.1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Income Statement [Abstract]    
Revenues $ 884,166 $ 660,148
Cost of sales 407,796 335,224
Gross profit 476,370 324,924
Selling, general and administrative expenses 241,442 206,247
Income from operations 234,928 118,677
Foreign currency gains (losses), net (403) 480
Interest income 171 102
Interest expense (42,637) (19,252)
Other expense, net (293) (947)
Income before income taxes 191,766 99,060
Income tax expense 42,223 26,300
Net income $ 149,543 $ 72,760
Net income per common share:    
Basic (in dollars per share) $ 2.42 $ 1.22
Diluted (in dollars per share) $ 2.39 $ 1.19
Weighted average common shares outstanding:    
Basic (in shares) 61,836 59,823
Diluted (in shares) 62,629 60,896
v3.23.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Statement of Comprehensive Income [Abstract]    
Net income $ 149,543 $ 72,760
Derivatives designated as hedging instruments:    
Unrealized gains (losses) on derivative instruments (379) 0
Reclassification adjustment for realized (gains) losses on derivative instruments 383 0
Net increase (decrease) from derivatives designated as hedging instruments 4 0
Foreign currency translation gains (losses), net 3,953 (10,151)
Total comprehensive income, net of tax $ 153,500 $ 62,609
v3.23.1
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 125,687 $ 191,629
Restricted cash - current 2 2
Accounts receivable, net of allowances of $25,960 and $24,493, respectively 418,959 295,594
Inventories 476,112 471,551
Income taxes receivable 3,083 14,752
Other receivables 31,481 18,842
Prepaid expenses and other assets 59,338 33,605
Total current assets 1,114,662 1,025,975
Property and equipment, net of accumulated depreciation and amortization of $104,088 and $97,136, respectively 190,492 181,529
Intangible assets, net of accumulated amortization of $130,768 and $125,014, respectively 1,798,918 1,800,167
Goodwill 711,560 714,814
Deferred tax assets, net 533,480 528,278
Restricted cash 3,240 3,254
Right-of-use assets 233,981 239,905
Other assets 9,302 7,875
Total assets 4,595,635 4,501,797
Current liabilities:    
Accounts payable 232,383 230,821
Accrued expenses and other liabilities 201,821 239,424
Income taxes payable 109,632 89,211
Current borrowings 32,970 24,362
Current operating lease liabilities 57,560 57,456
Total current liabilities 634,366 641,274
Deferred tax liabilities, net 301,968 302,030
Long-term income taxes payable 228,165 224,837
Long-term borrowings 2,250,288 2,298,027
Long-term operating lease liabilities 209,817 215,119
Other liabilities 2,531 2,579
Total liabilities 3,627,135 3,683,866
Commitments and contingencies
Stockholders’ equity:    
Common stock, par value $0.001 per share, 250.0 million shares authorized, 109.8 million and 109.5 million issued, 62.0 million and 61.7 million outstanding, respectively 110 110
Treasury stock, at cost, 47.8 million and 47.7 million shares, respectively (1,705,896) (1,695,501)
Additional paid-in capital 805,078 797,614
Retained earnings 1,968,742 1,819,199
Accumulated other comprehensive loss (99,534) (103,491)
Total stockholders’ equity 968,500 817,931
Total liabilities and stockholders’ equity $ 4,595,635 $ 4,501,797
v3.23.1
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Accounts receivable, net of allowance $ 25,960 $ 24,493
Less: Accumulated depreciation and amortization 104,088 97,136
Intangible assets, net of accumulated amortization $ 130,768 $ 125,014
Common stock par value (in dollars per share) $ 0.001 $ 0.001
Common stock authorized (in shares) 250,000,000 250,000,000
Common stock issued (in shares) 109,800,000 109,500,000
Common stock outstanding (in shares) 62,000,000 61,700,000
Treasury stock (in shares) 47,800,000 47,700,000
v3.23.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Treasury Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2021   58,330        
Beginning balance at Dec. 31, 2021 $ 14,082 $ 106 $ (1,684,262) $ 496,036 $ 1,279,040 $ (76,838)
Beginning balance (in shares) at Dec. 31, 2021     47,583      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Share-based compensation 8,275     8,275    
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units, net of shares withheld for taxes (in shares)   390 75      
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units, net of shares withheld for taxes (6,192)   $ (6,050) (142)    
Share issuance at acquisition (in shares)   2,852        
Share issuance at Acquisition 270,396 $ 3   270,393    
Net income 72,760       72,760  
Other comprehensive income (10,151)         (10,151)
Ending balance (in shares) at Mar. 31, 2022   61,572        
Ending balance at Mar. 31, 2022 $ 349,170 $ 109 $ (1,690,312) 774,562 1,351,800 (86,989)
Ending balance (in shares) at Mar. 31, 2022     47,658      
Beginning balance (in shares) at Dec. 31, 2022 61,700 61,749        
Beginning balance at Dec. 31, 2022 $ 817,931 $ 110 $ (1,695,501) 797,614 1,819,199 (103,491)
Beginning balance (in shares) at Dec. 31, 2022 47,700   47,730      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Share-based compensation $ 7,464     7,464    
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units, net of shares withheld for taxes (in shares)   274 83      
Exercises of stock options, issuance of restricted stock awards, and vests of restricted stock units, net of shares withheld for taxes (10,395)   $ (10,395)      
Net income 149,543       149,543  
Other comprehensive income $ 3,957         3,957
Ending balance (in shares) at Mar. 31, 2023 62,000 62,023        
Ending balance at Mar. 31, 2023 $ 968,500 $ 110 $ (1,705,896) $ 805,078 $ 1,968,742 $ (99,534)
Ending balance (in shares) at Mar. 31, 2023 47,800   47,813      
v3.23.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Cash flows from operating activities:    
Net income $ 149,543 $ 72,760
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 13,136 7,895
Operating lease cost 18,199 14,231
Share-based compensation 7,464 8,275
Other non-cash items 383 9,695
Changes in operating assets and liabilities, net of acquired assets and assumed liabilities:    
Accounts receivable (122,144) (130,661)
Inventories (5,220) (28,124)
Prepaid expenses and other assets (35,859) (14,584)
Accounts payable, accrued expenses and other liabilities [1] (31,824) (11,226)
Right-of-use assets and operating lease liabilities (17,421) (14,742)
Income taxes [1] 33,674 17,716
Cash provided by (used in) operating activities 9,931 (68,765)
Cash flows from investing activities:    
Purchases of property, equipment, and software (27,581) (39,786)
Acquisition of HEYDUDE, net of cash acquired 0 (2,031,765)
Other 0 85
Cash used in investing activities (27,581) (2,071,466)
Cash flows from financing activities:    
Proceeds from borrowings 214,634 2,240,163
Repayments of borrowings (256,000) (85,000)
Deferred debt issuance costs (545) (49,486)
Repurchases of common stock for tax withholding (10,395) (6,288)
Other 0 95
Cash provided by (used in) financing activities (52,306) 2,099,484
Effect of exchange rate changes on cash, cash equivalents, and restricted cash 4,000 (810)
Net change in cash, cash equivalents, and restricted cash (65,956) (41,557)
Cash, cash equivalents, and restricted cash—beginning of period 194,885 216,925
Cash, cash equivalents, and restricted cash—end of period $ 128,929 $ 175,368
[1] Amounts for the three months ended March 31, 2022 have been reclassified to conform to current period presentation.
v3.23.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Unless otherwise noted in this report, any description of the “Company,” “we,” “us,” or “our” includes Crocs, Inc. and our consolidated subsidiaries within our reportable operating segments and corporate operations. We are engaged in the design, development, worldwide marketing, distribution, and sale of casual lifestyle footwear and accessories for women, men, and children. We strive to be the global leader in the sale of casual footwear characterized by functionality, comfort, color, and lightweight design.

Our reportable operating segments include: (i) North America for the Crocs Brand, operating throughout the United States and Canada; (ii) Asia Pacific for the Crocs Brand, operating throughout Asia, Australia, and New Zealand; (iii) Europe, Middle East, Africa, and Latin America (“EMEALA”) for the Crocs Brand; and (iv) the HEYDUDE Brand. See Note 13 — Operating Segments and Geographic Information for additional information.

The accompanying unaudited condensed consolidated interim financial statements include our accounts and those of our wholly-owned subsidiaries and reflect all adjustments which are necessary for a fair statement of the financial position, results of operations, and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Such unaudited condensed consolidated interim financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP.

These unaudited condensed consolidated interim financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022 (“Annual Report”) and have been prepared on a consistent basis with the accounting policies described in Note 1 of the Notes to Consolidated Financial Statements included in our Annual Report. Our accounting policies did not change during the three months ended March 31, 2023, other than with respect to the new accounting pronouncements adopted as described in Note 2 — Recent Accounting Pronouncements.

Reclassifications

We have reclassified certain amounts on the condensed consolidated statements of cash flows and Note 3 — Accrued Expenses and Other Liabilities to conform to current period presentation.

Use of Estimates

U.S. GAAP requires us to make certain estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions used to determine certain amounts that affect the financial statements are reasonable, based on information available at the time they are made. Management believes that the estimates, judgments, and assumptions made when accounting for items and matters such as, but not limited to, the allowance for doubtful accounts, customer rebates, sales returns, impairment assessments and charges, recoverability of long-lived assets, deferred tax assets, valuation allowances, uncertain tax positions, income tax expense, share-based compensation expense, the assessment of lower of cost or net realizable value on inventory, useful lives assigned to long-lived assets, depreciation and amortization are reasonable based on information available at the time they are made. To the extent there are differences between these estimates and actual results, our condensed consolidated financial statements may be materially affected.
Condensed Consolidated Statements of Cash Flows - Supplemental Disclosures

Three Months Ended March 31,
20232022
(in thousands)
Cash paid for interest$47,729 $15,926 
Cash paid for income taxes8,011 8,769 
Cash paid for operating leases17,436 14,500 
Non-Cash Investing and Financing Activities:
Right-of-use assets obtained in exchange for operating lease liabilities, net of terminations$9,108 $13,888 
Accrued purchases of property, equipment, and software
11,720 9,369 
Share issuance at Acquisition (1)
— 270,396 
Adjustment Holdback Amount— 8,500 
(1) On February 17, 2022 (the “Acquisition Date”), we acquired (the “Acquisition”) 100% of the equity of a privately-owned casual footwear brand business (“HEYDUDE”), pursuant to a securities purchase agreement (the “SPA”) entered into on December 22, 2021.
v3.23.1
RECENT ACCOUNTING PRONOUNCEMENTS
 3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
RECENT ACCOUNTING PRONOUNCEMENTS RECENT ACCOUNTING PRONOUNCEMENTS
 
New Accounting Pronouncement Adopted

Income Taxes

The CHIPS and Science Act of 2022 (“CHIPS”) and the Inflation Reduction Act (“IRA”) of 2022 were signed into law on August 9, 2022 and August 16, 2022, respectively. The legislation introduces new options for monetizing certain credits, a corporate alternative minimum tax, and a stock repurchase excise tax. The corporate alternative minimum tax and stock repurchase excise tax were effective as of January 1, 2023 and are the main provisions that may be applicable to us. The Company is currently evaluating the impact of both the CHIPS and IRA, but at present does not expect that any of the provisions included in these acts would result in a material impact to our deferred tax assets, liabilities, or income taxes payable.

New Accounting Pronouncement Not Yet Adopted

Pillar Two Global Minimum Tax

On October 8, 2021, the Organization for Economic Co-operation and Development (“OECD”) released a statement on the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, which agreed to a two-pillar solution to address tax challenges of the digital economy. On December 20, 2021, the OECD released Pillar Two model rules defining a 15% global minimum tax rate for large multinational corporations. The OECD continues to release additional guidance and countries are implementing legislation with widespread adoption of the Pillar Two Framework expected by 2024. We are continuing to evaluate the Pillar Two Framework and its potential impact on future periods.

Other new pronouncements issued but not effective until after March 31, 2023 are not expected to have a material impact on our condensed consolidated financial statements.
v3.23.1
ACCRUED EXPENSES AND OTHER LIABILITIES
 3 Months Ended
Mar. 31, 2023
Payables and Accruals [Abstract]  
ACCRUED EXPENSES AND OTHER LIABILITIES ACCRUED EXPENSES AND OTHER LIABILITIES
 
Amounts reported in ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheets were:
March 31, 2023December 31, 2022
 (in thousands)
Accrued compensation and benefits$41,755 $55,474 
Professional services 39,229 45,351 
Fulfillment, freight, and duties34,408 41,646 
Return liabilities21,792 27,651 
Sales/use and value added taxes payable25,119 27,249 
Royalties payable and deferred revenue8,746 10,528 
Accrued rent and occupancy6,362 8,972 
Accrued legal fees (1)
5,637 2,602 
Other (1)
18,773 19,951 
Total accrued expenses and other liabilities$201,821 $239,424 
(1) Amounts as of December 31, 2022 have been reclassified to conform to current period presentation.
v3.23.1
LEASES
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
LEASES LEASES
Right-of-Use Assets and Operating Lease Liabilities

Amounts reported in the condensed consolidated balance sheets were:
March 31, 2023December 31, 2022
(in thousands)
Assets:
Right-of-use assets$233,981 $239,905 
Liabilities:
Current operating lease liabilities$57,560 $57,456 
Long-term operating lease liabilities209,817 215,119 
Total operating lease liabilities$267,377 $272,575 

Lease Costs and Other Information

Lease-related costs reported within ‘Cost of sales’ and ‘Selling, general and administrative expenses’ in our condensed consolidated statements of income were:
Three Months Ended March 31,
20232022
(in thousands)
Operating lease cost $18,199 $14,231 
Short-term lease cost3,042 2,632 
Variable lease cost5,548 4,552 
Total lease costs$26,789 $21,415 

The weighted average remaining lease term and discount rate related to our lease liabilities as of March 31, 2023 were 6.7 years and 4.0%, respectively. As of March 31, 2022, the weighted average remaining lease term and discount rate related to our lease liabilities were 7.2 years and 3.6%, respectively.
Maturities

The maturities of our operating lease liabilities were:
As of
March 31, 2023
(in thousands)
2023 (remainder of year)$45,707 
202454,986 
202541,082 
202634,593 
202729,672 
Thereafter100,166 
Total future minimum lease payments306,206 
Less: imputed interest(38,829)
Total operating lease liabilities$267,377 

Leases That Have Not Yet Commenced

As of March 31, 2023, we had significant obligations for a lease not yet commenced related to a new HEYDUDE distribution center in Las Vegas, Nevada. The total contractual commitment related to the lease, with payments expected to begin in the third quarter of 2023 and continue through December 2033, is approximately $111 million.
v3.23.1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
 
Recurring Fair Value Measurements
 
All of our derivative instruments are classified as Level 2 of the fair value hierarchy and are reported in the condensed consolidated balance sheets within either ‘Prepaid expenses and other assets’ or ‘Accrued expenses and other liabilities’ at March 31, 2023 and December 31, 2022. The fair values of our derivative instruments were an insignificant asset and an insignificant liability at both March 31, 2023 and December 31, 2022. See Note 6 — Derivative Financial Instruments for more information.

The carrying amounts of our cash, cash equivalents, and restricted cash, accounts receivable, accounts payable, current accrued expenses and other liabilities, and our Asia revolving facilities approximate their fair value as recorded due to the short-term maturity of these instruments.

Our borrowing instruments are recorded at their carrying values in the condensed consolidated balance sheets, which may differ from their respective fair values. The Term Loan B Facility (as defined below) and the Notes (as defined below) are classified as Level 1 of the fair value hierarchy and are reported in our condensed consolidated balance sheet at face value, less unamortized issuance costs. The fair value of our Revolving Facility (as defined below) approximates its carrying value at March 31, 2023 and December 31, 2022 based on interest rates currently available to us for similar borrowings. The carrying value and fair value of our borrowing instruments as of March 31, 2023 and December 31, 2022 were:

March 31, 2023December 31, 2022
Carrying ValueFair ValueCarrying ValueFair Value
(in thousands)
Term Loan B Facility$1,425,000 $1,422,328 $1,675,000 $1,642,547 
2029 Notes350,000 306,345 350,000 297,596 
2031 Notes350,000 289,291 350,000 284,240 
Revolving Facility200,000 200,000 — — 
Non-Financial Assets and Liabilities

Our non-financial assets, which primarily consist of property and equipment, right-of-use assets, goodwill, and other intangible assets, are not required to be carried at fair value on a recurring basis and are reported at carrying value. The fair values of these assets are determined, as required, based on Level 3 measurements, including estimates of the amount and timing of future cash flows based upon historical experience, expected market conditions, and management’s plans.
v3.23.1
DERIVATIVE FINANCIAL INSTRUMENTS
 3 Months Ended
Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS
 
We transact business in various foreign entities and are therefore exposed to foreign currency exchange rate risk that impacts the reported U.S. Dollar (“USD”) amounts of revenues, expenses, and certain foreign currency monetary assets and liabilities. In order to manage exposure to fluctuations in foreign currency and to reduce the volatility in earnings caused by fluctuations in foreign exchange rates, we may enter into forward contracts to buy and sell foreign currency. By policy, we do not enter into these contracts for trading purposes or speculation.

Counterparty default risk is considered low because the forward contracts we enter into are over-the-counter instruments transacted with highly-rated financial institutions. We were not required to and did not post collateral as of March 31, 2023 or December 31, 2022.

Our derivative instruments are recorded at fair value as a derivative asset or liability in the condensed consolidated balance sheets within either ‘Prepaid expenses and other assets’ or ‘Accrued expenses and other liabilities’ at March 31, 2023 or December 31, 2022. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged transactions in a cash flow hedge. We may enter into derivative contracts that are intended to economically hedge certain components of its risk, even though hedge accounting does not apply, or we elect not to apply hedge accounting.

We report derivative instruments with the same counterparty on a net basis when a master netting arrangement is in place. For the condensed consolidated statements of cash flows, we classify cash flows from derivative instruments at settlement in the same category as the cash flows from the related hedged items within ‘Cash provided by (used in) operating activities.’

As of March 31, 2023, we have derivatives not designated as hedging instruments (“non-hedged derivatives”), which consist of foreign currency forward contracts primarily used to hedge monetary assets and liabilities denominated in non-functional currencies. For our non-hedged derivatives, changes in fair value are recognized within ‘Foreign currency gains (losses), net’ in the condensed consolidated statements of income.

We also have cash flow hedges (“hedged derivatives”) as of March 31, 2023. We are exposed to fluctuations in various foreign currencies against our functional currency, the U.S. Dollar. Specifically, we have subsidiaries that transact in currencies other than their functional currency. We use cash flow hedges to minimize the variability in cash flows caused by fluctuations in foreign currency exchange rates related to our external sales and external purchases of inventory. Currency forward agreements involve fixing the exchange rates for delivery of a specified amount of foreign currency on a specified date. The currency forward agreements are typically cash settled in USD for their fair value at or close to their settlement date. We may also use currency option contracts under which we will pay a premium for the right to sell a specified amount of a foreign currency prior to the maturity date of the option.

For derivatives designated and that qualify as cash flow hedges of foreign exchange risk, the gain or loss on the derivative is recorded in ‘Accumulated other comprehensive loss’ in the condensed consolidated balance sheets. In the period during which the hedged transaction affects earnings, the related gain or loss is subsequently reclassified to ‘Revenues’ or ‘Cost of sales’ in the condensed consolidated statement of income, which is consistent with the nature of the hedged transaction. During the three months ended March 31, 2023, there was a loss of $0.5 million recognized due to reclassification from ‘Accumulated other comprehensive loss’ to ‘Revenues’ or ‘Cost of sales’ related to our hedged derivatives. During the next twelve months, we estimate that a loss of approximately $0.5 million will be reclassified to our condensed consolidated statement of income.
The fair values of derivative assets and liabilities, net, all of which are classified as Level 2, reported within either ‘Accrued expenses and other liabilities’ or ‘Prepaid expenses and other assets’ in the condensed consolidated balance sheets, were:
March 31, 2023December 31, 2022
Derivative AssetsDerivative LiabilitiesDerivative AssetsDerivative Liabilities
(in thousands)
Non-hedged derivatives:
Forward foreign currency exchange contracts$783 $(429)$345 $(360)
Hedged derivatives:
Cash flow foreign currency contracts60 (519)348 (1,116)
Total derivatives843 (948)693 (1,476)
Netting of counterparty contracts(495)495 (345)345 
Total derivatives, net of counterparty contracts$348 $(453)$348 $(1,131)

The notional amounts of outstanding foreign currency forward exchange contracts presented below report the total U.S. Dollar equivalent position and the net contract fair values for each foreign currency position.
March 31, 2023December 31, 2022
NotionalFair ValueNotionalFair Value
(in thousands)
Non-hedged derivatives:
Singapore Dollar$26,760 $165 $26,760 $207 
Indian Rupee24,945 (334)24,945 (10)
South Korean Won18,403 332 18,403 (320)
British Pound Sterling14,695 (26)14,509 128 
Japanese Yen12,265 280 8,953 9 
Euro5,068 (63)5,068 (29)
Total non-hedged derivatives102,136 354 98,638 (15)
Hedged derivatives:
Euro 22,917 (303)51,914 (360)
British Pound Sterling10,812 (5)23,025 235 
South Korean Won5,407 (168)12,285 (756)
Indian Rupee3,010 17 7,203 113 
Total hedged derivatives42,146 (459)94,427 (768)
Total derivatives$144,282 $(105)$193,065 $(783)
Latest maturity date, non-hedged derivativesApril 2023April 2023
Latest maturity date, hedged derivativesJune 2023June 2023
Amounts reported in ‘Foreign currency gains (losses), net’ in the condensed consolidated statements of income include both realized and unrealized gains (losses) from foreign currency transactions and derivative contracts and were:
Three Months Ended March 31,
 20232022
 (in thousands)
Non-hedged derivatives:
Foreign currency transaction losses
$(771)$(917)
Foreign currency forward exchange contracts gains
368 1,397 
Foreign currency gains (losses), net
$(403)$480 
v3.23.1
BORROWINGS
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
BORROWINGS BORROWINGS
 
Our long-term borrowings were as follows:
MaturityStated Interest RateEffective Interest RateMarch 31, 2023December 31, 2022
(in thousands)
Notes issuance of $350.0 million
20294.250 %4.64 %$350,000 $350,000 
Notes issuance of $350.0 million
20314.125 %4.35 %350,000 350,000 
Term Loan B Facility20291,425,000 1,675,000 
Revolving Facility200,000 — 
Total face value of long-term borrowings2,325,000 2,375,000 
Less:
Unamortized issuance costs54,712 56,973 
Current portion of long-term borrowings (1)
20,000 20,000 
Total long-term borrowings$2,250,288 $2,298,027 
(1) Represents the current portion of the borrowings under the Term Loan B facility.

At March 31, 2023 and December 31, 2022, $3.2 million and $10.8 million, respectively, of accrued interest related to our borrowings was reported in ‘Accounts payable’ in the condensed consolidated balance sheets.

Senior Revolving Credit Facility

In July 2019, the Company and certain of its subsidiaries (the “Borrowers”) entered into a Second Amended and Restated Credit Agreement (as amended, the “Credit Agreement”), with the lenders named therein and PNC Bank, National Association, as a lender and administrative agent for the lenders. Since that time, we have amended the Credit Agreement, which, as amended to date, provides for a revolving credit facility of $750.0 million, which can be increased by an additional $250.0 million subject to certain conditions (the “Revolving Facility”). Borrowings under the Credit Agreement bear interest at a variable interest rate based on (A) a Base Rate (defined as the highest of (i) the Overnight Bank Funding Rate (as defined in the Credit Agreement), plus 0.25%, (ii) the Prime Rate (as defined in the Credit Agreement), and (iii) the Daily Simple SOFR (as defined in the Credit Agreement), plus 1.00%), plus an applicable margin ranging from 0.25% to 0.875% based on our leverage ratio or 1.35% to 1.975% for the Daily Simple SOFR based on the leverage ratio, or (B) the Term SOFR Rate (as defined in the Credit Agreement), plus an applicable margin ranging from 1.35% to 1.975% based on our leverage ratio for one-month interest periods and 1.40% to 2.025% based on our leverage ratio for three month interest periods. Borrowings under the Credit Agreement are secured by all of the assets of the Borrowers and guaranteed by certain other subsidiaries of the Borrowers.

The Credit Agreement requires us to maintain a minimum interest coverage ratio of 3.00 to 1.00, and a maximum leverage ratio of (i) 4.00 to 1.00 from the quarter ended March 31, 2022 through, and including, the quarter ending December 31, 2023, (ii) 3.75 to 1.00 for the quarter ending March 31, 2024, (iii) 3.50 to 1.00 for the quarter ending June 30, 2024, and (iv) 3.25 to 1.00 for the quarter ending September 30, 2024 and thereafter (subject to adjustment in certain circumstances). The Credit Agreement permits, among other things, (i) stock repurchases subject to certain restrictions, including after giving effect to such stock repurchases, the maximum leverage ratio does not exceed certain levels; and (ii) certain acquisitions so long as there is borrowing availability under the Credit Agreement of at least $40.0 million. As of March 31, 2023, we were in compliance with all financial covenants under the Credit Agreement.
As of March 31, 2023, the total commitments available from the lenders under the Revolving Facility were $750.0 million. At March 31, 2023, we had $200.0 million in outstanding borrowings and $1.3 million in outstanding letters of credit under the Revolving Facility, which reduces amounts available for borrowing under the Revolving Facility. As of March 31, 2023 and December 31, 2022, we had $548.7 million and $748.7 million, respectively, of available borrowing capacity under the Revolving Facility, which matures November 2027.

Term Loan B Facility

On February 17, 2022, the Company entered into a credit agreement (the “Term Loan B Credit Agreement”) with Citibank, N.A., as administrative agent and lender, to among other things, finance a portion of the cash consideration for the Acquisition.

The Term Loan B Credit Agreement provides for an aggregate term loan B facility in the principal amount of $2.0 billion (the “Term Loan B Facility”), which is secured by substantially all of the Company’s and each subsidiary guarantor’s assets on a pari passu basis with their obligations arising from the Credit Agreement and is scheduled to mature on February 17, 2029, subject to certain exceptions set forth in the Term Loan B Credit Agreement. Additionally, subject to certain conditions, including, without limitation, satisfying certain leverage ratios, the Company may, at any time, on one or more occasions, add one or more new classes of term facilities and/or increase the principal amount of the loans of any existing class by requesting one or more incremental term facilities.

Each term loan borrowing which is an alternate base rate borrowing bears interest at a rate per annum equal to the Alternate Base Rate (as defined in the Term Loan B Credit Agreement), plus 2.50%. Each term loan borrowing which is a term benchmark borrowing bears interest at a rate per annum equal to the Adjusted Term SOFR Rate (as defined in the Term Loan B Credit Agreement) plus 3.50%.

Outstanding principal under the Term Loan B Facility is payable on the last business day of each March, June, September and December, in a quarterly aggregate principal amount of $5.0 million. Quarterly aggregate principal payments began on June 30, 2022, with the remaining principal amount due on February 17, 2029, the maturity date. As of March 31, 2023, we had $1,425.0 million in outstanding principal and the Term Loan B Facility was fully drawn with no remaining borrowing capacity.

The Term Loan B Credit Agreement also contains customary affirmative and negative covenants, incurrence financial covenants, representations and warranties, events of default and other provisions. As of March 31, 2023, we were in compliance with all financial covenants under the Term Loan B Credit Agreement.

Asia Revolving Credit Facilities

During the three months ended March 31, 2023, we had two revolving credit facilities in Asia, the revolving credit facility with China Merchants Bank Company Limited, Shanghai Branch (the “CMBC Facility”), which matured in January 2023 and provided up to 10.0 million RMB, or $1.5 million using current exchange rates as of January 2023, and the revolving credit facility with Citibank (China) Company Limited, Shanghai Branch (the “Citibank Facility”), which, as amended, provides up to an equivalent of $15.0 million.

As of March 31, 2023, we had borrowings outstanding of $13.0 million on the Citibank Facility, which are due between May 2023 and September 2023. As of December 31, 2022, we had no outstanding borrowings on the CMBC Facility, and we had borrowings outstanding of $4.3 million on the Citibank Facility.

Senior Notes Issuances

In March 2021, the Company completed the issuance and sale of $350.0 million aggregate principal amount of 4.250% Senior Notes due March 15, 2029 (the “2029 Notes”), pursuant to the indenture related thereto (as amended and/or supplemented to date, the “2029 Notes Indenture”). Additionally, in August 2021, the Company completed the issuance and sale of $350.0 million aggregate principal amount of 4.125% Senior Notes due August 15, 2031 (the “2031 Notes”), pursuant to the indenture related thereto (as amended and/or supplemented to date, “the 2031 Notes Indenture” and, together with the 2029 Notes Indenture, the “Indentures” and, each, an “Indenture”). Interest on each of the 2029 Notes and the 2031 Notes (collectively, the “Notes”) is payable semi-annually.

The Company will have the option to redeem all or any portion of the 2029 Notes, at once or over time, at any time on or after March 15, 2024, at a redemption price equal to 100% of the principal amount thereof, plus a premium declining ratably on an annual basis to par and accrued and unpaid interest, if any, to, but excluding, the date of redemption. The Company will also have the option to redeem some or all of the 2029 Notes at any time before March 15, 2024 at a redemption price of 100% of
the principal amount to be redeemed, plus a “make-whole” premium and accrued and unpaid interest, if any, to, but excluding, the date of redemption. In addition, at any time before March 15, 2024, the Company may redeem up to 40% of the aggregate principal amount of the 2029 Notes at a redemption price of 104.250% of the principal amount with the proceeds from certain equity issuances, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption.

The Company will have the option to redeem all or any portion of the 2031 Notes, at once or over time, at any time on or after August 15, 2026, at a redemption price equal to 100% of the principal amount thereof, plus a premium declining ratably on an annual basis to par and accrued and unpaid interest, if any, to, but excluding, the date of redemption. The Company will also have the option to redeem some or all of the 2031 Notes at any time before August 15, 2026 at a redemption price of 100% of the principal amount to be redeemed, plus a “make-whole” premium and accrued and unpaid interest, if any, to, but excluding, the date of redemption. In addition, at any time before August 15, 2024, the Company may redeem up to 40% of the aggregate principal amount of the 2031 Notes at a redemption price of 104.125% of the principal amount with the proceeds from certain equity issuances, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption.

The Notes rank pari passu in right of payment with all of the Company’s existing and future senior debt, including the Credit Agreement, and are senior in right of payment to any of the Company’s future debt that is, by its term, expressly subordinated in right of payment to the Notes. The Notes are unconditionally guaranteed by each of the Company’s restricted subsidiaries that is a borrower or guarantor under the Credit Agreement and by each of the Company’s wholly-owned restricted subsidiaries that guarantees any debt of the Company or any guarantor under any syndicated credit facility or capital markets debt in an aggregate principal amount in excess of $25.0 million.

The Indentures contain covenants that, among other things, limit the ability of the Company and its restricted subsidiaries to incur additional debt or issue certain preferred stock; pay dividends or repurchase or redeem capital stock or make other restricted payments; declare or pay dividends or other payments; incur liens; enter into certain types of transactions with the Company’s affiliates; and consolidate or merge with or into other companies. As of March 31, 2023, we were in compliance with all financial covenants under the Notes.
v3.23.1
COMMON STOCK REPURCHASE PROGRAM
 3 Months Ended
Mar. 31, 2023
Equity [Abstract]  
COMMON STOCK REPURCHASE PROGRAM COMMON STOCK REPURCHASE PROGRAM 
During the three months ended March 31, 2023 and 2022, we did not repurchase any shares of our common stock.

As of March 31, 2023, we had remaining authorization to repurchase approximately $1,050.0 million of our common stock, subject to restrictions under our Indentures, Credit Agreement, and Term Loan B Credit Agreement.
v3.23.1
REVENUES
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Revenues by channel and brand were:

Three Months Ended March 31, 2023
Crocs BrandHEYDUDE BrandTotal
(in thousands)
Channel:
Wholesale$410,563 $167,863 $578,426 
Direct-to-consumer 238,215 67,525 305,740 
Total revenues$648,778 $235,388 $884,166 

Three Months Ended March 31, 2022
Crocs Brand
HEYDUDE Brand (1)
Total
(in thousands)
Channel:
Wholesale$344,258 $86,919 $431,177 
Direct-to-consumer200,967 28,004 228,971 
Total revenues$545,225 $114,923 $660,148 
(1) We acquired HEYDUDE on February 17, 2022 and, as a result, added the HEYDUDE Brand as a new operating segment. Therefore, the amounts shown above for the three months ended March 31, 2022 represent results during the partial period beginning February 17, 2022 through March 31, 2022.
v3.23.1
INCOME TAXES
 3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income tax expense and effective tax rates were:
Three Months Ended March 31,
 20232022
(in thousands, except effective tax rate)
Income before income taxes$191,766 $99,060 
Income tax expense 42,223 26,300 
Effective tax rate22.0 %26.5 %

The decrease in the effective tax rate for the three months ended March 31, 2023, compared to the same period in 2022, was primarily driven by a shift in the mix of the Company's domestic and foreign earnings. Our effective income tax rate, for each period presented, also differs from the federal U.S. statutory rate due to differences in income tax rates between U.S. and foreign jurisdictions. We had unrecognized tax benefits of $222.0 million and $219.4 million at March 31, 2023 and December 31, 2022, respectively, and we do not expect any significant changes in tax benefits in the next twelve months.

Our tax rate is volatile and may increase or decrease with changes in, among other things, the amount of income or loss by jurisdiction, our ability to utilize net operating losses and foreign tax credits, changes in tax laws, and the movement of liabilities established pursuant to accounting guidance for uncertain tax positions as statutes of limitations expire, positions are effectively settled, or when additional information becomes available.
v3.23.1
EARNINGS PER SHARE
 3 Months Ended
Mar. 31, 2023
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
 
Basic and diluted earnings per common share (“EPS”) for the three months ended March 31, 2023 and 2022 were:
Three Months Ended March 31,
20232022
(in thousands, except per share data)
Numerator:  
Net income
$149,543 $72,760 
Denominator:  
Weighted average common shares outstanding - basic
61,836 59,823 
Plus: Dilutive effect of stock options and unvested restricted stock units
793 1,073 
Weighted average common shares outstanding - diluted
62,629 60,896 
Net income per common share:
  
Basic$2.42 $1.22 
Diluted$2.39 $1.19 

In the three months ended March 31, 2023 and 2022, an insignificant number of outstanding shares issued under share-based compensation awards were anti-dilutive and, therefore, excluded from the calculation of diluted EPS.
v3.23.1
COMMITMENTS AND CONTINGENCIES
 3 Months Ended
Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Purchase Commitments

As of March 31, 2023, we had purchase commitments to third-party manufacturers, primarily for materials and supplies used in the manufacture of our products, for an aggregate of $366.3 million. We expect to fulfill our commitments under these agreements in the normal course of business, and as such, no liability has been recorded.

Other

We are regularly subject to, and are currently undergoing, audits by various tax authorities in the United States and several foreign jurisdictions, including customs duties, import, and other taxes for prior tax years.

During our normal course of business, we may make certain indemnities, commitments, and guarantees under which we may be required to make payments. We cannot determine a range of estimated future payments and have not recorded any liability for indemnities, commitments, and guarantees in the accompanying condensed consolidated balance sheets.

We are also subject to litigation from time to time in the ordinary course of business, including employment, intellectual property, and product liability claims. Other than as set forth below, we are not party to any other pending legal proceedings that we believe would reasonably have a material adverse impact on our business, financial results, and cash flows.

For all claims and disputes, we have accrued insignificant estimated losses within ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheet as of March 31, 2023. As we are able, we estimate reasonably possible losses or a range of reasonably possible losses. As of March 31, 2023, we estimated that reasonably possible losses associated with these claims and other disputes could potentially exceed amounts accrued by an insignificant amount.
v3.23.1
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION
We have 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. Our HEYDUDE Brand is also a reportable operating segment. 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 March 31,
20232022
(in thousands)
Revenues:
North America $351,308 $319,450 
Asia Pacific140,002 95,847 
EMEALA 157,467 129,921 
Brand corporate 1 7 
Total Crocs Brand648,778 545,225 
HEYDUDE Brand (1)
235,388 114,923 
Total consolidated revenues$884,166 $660,148 
Income from operations:
North America $127,783 $129,611 
Asia Pacific56,605 30,106 
EMEALA 65,776 34,927 
Brand corporate (32,157)(30,709)
Total Crocs Brand218,007 163,935 
HEYDUDE Brand (1)
76,620 15,658 
Reconciliation of total segment income from operations to income before income taxes:
  
Enterprise corporate (59,699)(60,916)
Income from operations
234,928 118,677 
Foreign currency gains (losses), net(403)480 
Interest income171 102 
Interest expense(42,637)(19,252)
Other expense, net(293)(947)
Income before income taxes$191,766 $99,060 
Depreciation and amortization:
North America $4,367 $2,220 
Asia Pacific630 523 
EMEALA 1,230 724 
Brand corporate 1,210 186 
Total Crocs Brand
7,437 3,653 
HEYDUDE Brand (1)
3,506 2,444 
Enterprise corporate 2,193 1,798 
Total consolidated depreciation and amortization
$13,136 $7,895 
(1) 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 three months ended March 31, 2022 represent results during the partial period beginning February 17, 2022 through March 31, 2022.
v3.23.1
ACQUISITION OF HEYDUDE
 3 Months Ended
Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
ACQUISITION OF HEYDUDE ACQUISITION OF HEYDUDEOn February 17, 2022, we acquired 100% of the equity of HEYDUDE, pursuant to the SPA. HEYDUDE is engaged in the business of distributing and selling casual footwear under the brand name “HEYDUDE.” The Acquisition has allowed us to diversify and expand our business by adding a second brand to the Crocs, Inc. portfolio.
The aggregate preliminary purchase price at the closing of the Acquisition was $2.3 billion. We paid aggregate consideration of $2.05 billion in cash (the “Cash Consideration”), subject to adjustment based on, among other things, the cash, indebtedness, transaction expenses, and working capital of the companies comprising HEYDUDE and their respective subsidiaries as of the Acquisition Date, and issued 2,852,280 shares of the Company’s common stock to one of the sellers (the “Equity Consideration Shares”). The Equity Consideration Shares were subject to a lock-up period beginning on the Acquisition Date, which has since expired so all of the Equity Consideration Shares have been released from the lock-up. The purchase price paid to the sellers is final.

The Cash Consideration was financed via the Company’s entry into the $2.0 billion Term Loan B Facility and $50.0 million of borrowings under the Revolving Facility. As a result of the Acquisition, HEYDUDE became wholly owned by Crocs, Inc. Accordingly, the results of HEYDUDE are included in our condensed consolidated financial statements from the Acquisition Date and are reported in the HEYDUDE operating segment. HEYDUDE contributed revenue of $114.9 million and income from operations of $15.7 million from the Acquisition Date through March 31, 2022.

Purchase Price Allocation

The Acquisition was accounted for in accordance with the ASC Topic 805 Business Combinations. As a result, we applied acquisition accounting, which requires, among other things, that the assets acquired and liabilities assumed be recognized at their estimated fair values as of the Acquisition Date. For certain assets and liabilities, those fair values were consistent with historical carrying values. The fair value of inventory was determined using both a market approach and a cost approach. With respect to intangible assets, the estimated fair value was based on the Multi Period Excess Earnings approach for the trademark and the distributor method for the customer relationships. These models used primarily Level 2 and Level 3 inputs, including an estimate of future revenues, future cash flows, and discount rates.

The following table summarizes the final allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed on the Acquisition Date:
February 17, 2022
(in thousands)
Cash and cash equivalents $6,232 
Accounts receivable, net 68,698 
Inventories 155,773 
Prepaid expenses and other assets (1)
7,880 
Intangible assets 1,780,000 
Goodwill (1)(2)
710,034 
Right-of-use assets 2,844 
Accounts payable (2)
(30,017)
Accrued expenses and other liabilities (18,860)
Income taxes payable (30,572)
Long-term deferred tax liability
(312,656)
Long-term income taxes payable (13,004)
Operating lease liabilities(2,843)
Net assets acquired $2,323,509 
(1) Includes a valuation adjustment that increased prepaid expenses and other assets by $3.5 million and decreased goodwill by $3.5 million during the three months ended March 31, 2023.
(2) Includes a valuation adjustment that increased goodwill by $0.2 million and increased accounts payable by $0.2 million during the three months ended March 31, 2023.
Intangible Assets

The components of intangible assets acquired in connection with the Acquisition were as follows:
Weighted-Average Useful LifeAmortization MethodEstimated Fair Value
(in thousands)
Customer relationships15Straight-line$210,000 
TrademarkIndefinite—1,570,000 
Total intangible assets$1,780,000 

Goodwill

The excess of the purchase price over the fair value of the acquired business's net assets represents goodwill. The goodwill amount of $710.0 million at March 31, 2023 includes an aggregate adjustment of $3.3 million recorded in the three months ended March 31, 2023 as a result of changes to preliminary valuation estimates. The purchase price allocation was finalized during the three months ended March 31, 2023.

Goodwill largely consists of the acquired workforce and economies of scale resulting from the Acquisition. The total goodwill amount acquired was assigned to the HEYDUDE operating segment. None of the goodwill will be deductible for income tax purposes.

Escrow and Holdback Amounts

Additionally, $125.0 million of the Cash Consideration (the “Escrow Amount”) was placed in an escrow account to partially secure the indemnification obligations of the sellers. The Escrow Amount will be released to the sellers after the date that is 18 months after the Acquisition Date, less any amounts that have been released to compensate the Company and any amounts for claims that were noticed prior to the date that is 18 months after the Acquisition Date but not yet resolved by that date, as provided in the SPA. As of March 31, 2023, certain receivables had been recorded related to the Escrow Amount. Further, $8.5 million of the Cash Consideration (the “Adjustment Holdback Amount”) was held back and retained as security (but not as the sole source of recovery) for any downward adjustments to the purchase price made in accordance with the SPA. During the year ended December 31, 2022, the Adjustment Holdback Amount was paid to the sellers.

Acquisition-related Costs

Costs incurred to complete the Acquisition are expensed as incurred and included in ‘Selling, general, and administrative expenses’ in our condensed consolidated statement of income. During the three months ended March 31, 2023, no Acquisition-related costs were recognized. During the three months ended March 31, 2022, $20.6 million of Acquisition-related costs were recognized.

Unaudited Pro Forma Information

The following unaudited pro forma financial information for the three months ended March 31, 2022 combines the historical results of Crocs and HEYDUDE, assuming that the companies were combined as of January 1, 2021 and include business combination accounting effects from the Acquisition, including amortization charges from acquired intangible assets, adjustments to the fair value of inventory, interest expense on the financing transactions used to fund the Acquisition, and Acquisition-related transaction costs and tax-related effects. The pro forma information as presented below is for informational purposes only and is not indicative of the results of operations that would have been achieved if the Acquisition had taken place on January 1, 2021.
Three Months Ended March 31,
2022
(in thousands)
Revenues$750,477 
Net income115,092 
v3.23.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Unless otherwise noted in this report, any description of the “Company,” “we,” “us,” or “our” includes Crocs, Inc. and our consolidated subsidiaries within our reportable operating segments and corporate operations. We are engaged in the design, development, worldwide marketing, distribution, and sale of casual lifestyle footwear and accessories for women, men, and children. We strive to be the global leader in the sale of casual footwear characterized by functionality, comfort, color, and lightweight design.
Segment Reporting Our reportable operating segments include: (i) North America for the Crocs Brand, operating throughout the United States and Canada; (ii) Asia Pacific for the Crocs Brand, operating throughout Asia, Australia, and New Zealand; (iii) Europe, Middle East, Africa, and Latin America (“EMEALA”) for the Crocs Brand; and (iv) the HEYDUDE Brand. See Note 13 — Operating Segments and Geographic Information for additional information.
Principles of Consolidation The accompanying unaudited condensed consolidated interim financial statements include our accounts and those of our wholly-owned subsidiaries and reflect all adjustments which are necessary for a fair statement of the financial position, results of operations, and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Such unaudited condensed consolidated interim financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP.These unaudited condensed consolidated interim financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022 (“Annual Report”) and have been prepared on a consistent basis with the accounting policies described in Note 1 of the Notes to Consolidated Financial Statements included in our Annual Report.
Reclassifications
Reclassifications

We have reclassified certain amounts on the condensed consolidated statements of cash flows and Note 3 — Accrued Expenses and Other Liabilities to conform to current period presentation.
Use of Estimates
Use of Estimates

U.S. GAAP requires us to make certain estimates, judgments, and assumptions. We believe that the estimates, judgments, and assumptions used to determine certain amounts that affect the financial statements are reasonable, based on information available at the time they are made. Management believes that the estimates, judgments, and assumptions made when accounting for items and matters such as, but not limited to, the allowance for doubtful accounts, customer rebates, sales returns, impairment assessments and charges, recoverability of long-lived assets, deferred tax assets, valuation allowances, uncertain tax positions, income tax expense, share-based compensation expense, the assessment of lower of cost or net realizable value on inventory, useful lives assigned to long-lived assets, depreciation and amortization are reasonable based on information available at the time they are made. To the extent there are differences between these estimates and actual results, our condensed consolidated financial statements may be materially affected.
New Accounting Pronouncement Adopted and Not Yet Adopted
New Accounting Pronouncement Adopted

Income Taxes

The CHIPS and Science Act of 2022 (“CHIPS”) and the Inflation Reduction Act (“IRA”) of 2022 were signed into law on August 9, 2022 and August 16, 2022, respectively. The legislation introduces new options for monetizing certain credits, a corporate alternative minimum tax, and a stock repurchase excise tax. The corporate alternative minimum tax and stock repurchase excise tax were effective as of January 1, 2023 and are the main provisions that may be applicable to us. The Company is currently evaluating the impact of both the CHIPS and IRA, but at present does not expect that any of the provisions included in these acts would result in a material impact to our deferred tax assets, liabilities, or income taxes payable.

New Accounting Pronouncement Not Yet Adopted

Pillar Two Global Minimum Tax

On October 8, 2021, the Organization for Economic Co-operation and Development (“OECD”) released a statement on the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, which agreed to a two-pillar solution to address tax challenges of the digital economy. On December 20, 2021, the OECD released Pillar Two model rules defining a 15% global minimum tax rate for large multinational corporations. The OECD continues to release additional guidance and countries are implementing legislation with widespread adoption of the Pillar Two Framework expected by 2024. We are continuing to evaluate the Pillar Two Framework and its potential impact on future periods.

Other new pronouncements issued but not effective until after March 31, 2023 are not expected to have a material impact on our condensed consolidated financial statements.
Fair Value of Non-Financial Assets and Liabilities
Non-Financial Assets and Liabilities

Our non-financial assets, which primarily consist of property and equipment, right-of-use assets, goodwill, and other intangible assets, are not required to be carried at fair value on a recurring basis and are reported at carrying value. The fair values of these assets are determined, as required, based on Level 3 measurements, including estimates of the amount and timing of future cash flows based upon historical experience, expected market conditions, and management’s plans.
Derivatives Financial Instruments During the three months ended March 31, 2023, there was a loss of $0.5 million recognized due to reclassification from ‘Accumulated other comprehensive loss’ to ‘Revenues’ or ‘Cost of sales’ related to our hedged derivatives. During the next twelve months, we estimate that a loss of approximately $0.5 million will be reclassified to our condensed consolidated statement of income.
v3.23.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 3 Months Ended
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Schedule of Non-Cash Investing and Financing Activities
Condensed Consolidated Statements of Cash Flows - Supplemental Disclosures

Three Months Ended March 31,
20232022
(in thousands)
Cash paid for interest$47,729 $15,926 
Cash paid for income taxes8,011 8,769 
Cash paid for operating leases17,436 14,500 
Non-Cash Investing and Financing Activities:
Right-of-use assets obtained in exchange for operating lease liabilities, net of terminations$9,108 $13,888 
Accrued purchases of property, equipment, and software
11,720 9,369 
Share issuance at Acquisition (1)
— 270,396 
Adjustment Holdback Amount— 8,500 
(1) On February 17, 2022 (the “Acquisition Date”), we acquired (the “Acquisition”) 100% of the equity of a privately-owned casual footwear brand business (“HEYDUDE”), pursuant to a securities purchase agreement (the “SPA”) entered into on December 22, 2021.
v3.23.1
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)
 3 Months Ended
Mar. 31, 2023
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses and Other Liabilities
Amounts reported in ‘Accrued expenses and other liabilities’ in the condensed consolidated balance sheets were:
March 31, 2023December 31, 2022
 (in thousands)
Accrued compensation and benefits$41,755 $55,474 
Professional services 39,229 45,351 
Fulfillment, freight, and duties34,408 41,646 
Return liabilities21,792 27,651 
Sales/use and value added taxes payable25,119 27,249 
Royalties payable and deferred revenue8,746 10,528 
Accrued rent and occupancy6,362 8,972 
Accrued legal fees (1)
5,637 2,602 
Other (1)
18,773 19,951 
Total accrued expenses and other liabilities$201,821 $239,424 
(1) Amounts as of December 31, 2022 have been reclassified to conform to current period presentation.
v3.23.1
LEASES (Tables)
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
Schedule of Rights-of-Use Assets and Operating Lease Liabilities Amounts reported in the condensed consolidated balance sheets were:
March 31, 2023December 31, 2022
(in thousands)
Assets:
Right-of-use assets$233,981 $239,905 
Liabilities:
Current operating lease liabilities$57,560 $57,456 
Long-term operating lease liabilities209,817 215,119 
Total operating lease liabilities$267,377 $272,575 
Schedule of Lease Costs and Other Information
Lease-related costs reported within ‘Cost of sales’ and ‘Selling, general and administrative expenses’ in our condensed consolidated statements of income were:
Three Months Ended March 31,
20232022
(in thousands)
Operating lease cost $18,199 $14,231 
Short-term lease cost3,042 2,632 
Variable lease cost5,548 4,552 
Total lease costs$26,789 $21,415 
Schedule of Maturities of Operating Lease Liabilities
The maturities of our operating lease liabilities were:
As of
March 31, 2023
(in thousands)
2023 (remainder of year)$45,707 
202454,986 
202541,082 
202634,593 
202729,672 
Thereafter100,166 
Total future minimum lease payments306,206 
Less: imputed interest(38,829)
Total operating lease liabilities$267,377 
v3.23.1
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value of the Company's Outstanding Borrowings The carrying value and fair value of our borrowing instruments as of March 31, 2023 and December 31, 2022 were:
March 31, 2023December 31, 2022
Carrying ValueFair ValueCarrying ValueFair Value
(in thousands)
Term Loan B Facility$1,425,000 $1,422,328 $1,675,000 $1,642,547 
2029 Notes350,000 306,345 350,000 297,596 
2031 Notes350,000 289,291 350,000 284,240 
Revolving Facility200,000 200,000 — — 
v3.23.1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Values of Derivative Assets and Liabilities
The fair values of derivative assets and liabilities, net, all of which are classified as Level 2, reported within either ‘Accrued expenses and other liabilities’ or ‘Prepaid expenses and other assets’ in the condensed consolidated balance sheets, were:
March 31, 2023December 31, 2022
Derivative AssetsDerivative LiabilitiesDerivative AssetsDerivative Liabilities
(in thousands)
Non-hedged derivatives:
Forward foreign currency exchange contracts$783 $(429)$345 $(360)
Hedged derivatives:
Cash flow foreign currency contracts60 (519)348 (1,116)
Total derivatives843 (948)693 (1,476)
Netting of counterparty contracts(495)495 (345)345 
Total derivatives, net of counterparty contracts$348 $(453)$348 $(1,131)
Schedule of Derivative Financial Instruments Notional Amounts on Outstanding Positions
The notional amounts of outstanding foreign currency forward exchange contracts presented below report the total U.S. Dollar equivalent position and the net contract fair values for each foreign currency position.
March 31, 2023December 31, 2022
NotionalFair ValueNotionalFair Value
(in thousands)
Non-hedged derivatives:
Singapore Dollar$26,760 $165 $26,760 $207 
Indian Rupee24,945 (334)24,945 (10)
South Korean Won18,403 332 18,403 (320)
British Pound Sterling14,695 (26)14,509 128 
Japanese Yen12,265 280 8,953 9 
Euro5,068 (63)5,068 (29)
Total non-hedged derivatives102,136 354 98,638 (15)
Hedged derivatives:
Euro 22,917 (303)51,914 (360)
British Pound Sterling10,812 (5)23,025 235 
South Korean Won5,407 (168)12,285 (756)
Indian Rupee3,010 17 7,203 113 
Total hedged derivatives42,146 (459)94,427 (768)
Total derivatives$144,282 $(105)$193,065 $(783)
Latest maturity date, non-hedged derivativesApril 2023April 2023
Latest maturity date, hedged derivativesJune 2023June 2023
Schedule of Gain (Losses) from Foreign Currency Transactions and Derivative Contracts
Amounts reported in ‘Foreign currency gains (losses), net’ in the condensed consolidated statements of income include both realized and unrealized gains (losses) from foreign currency transactions and derivative contracts and were:
Three Months Ended March 31,
 20232022
 (in thousands)
Non-hedged derivatives:
Foreign currency transaction losses
$(771)$(917)
Foreign currency forward exchange contracts gains
368 1,397 
Foreign currency gains (losses), net
$(403)$480 
v3.23.1
BORROWINGS (Tables)
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Schedule of Other Term Borrowings
Our long-term borrowings were as follows:
MaturityStated Interest RateEffective Interest RateMarch 31, 2023December 31, 2022
(in thousands)
Notes issuance of $350.0 million
20294.250 %4.64 %$350,000 $350,000 
Notes issuance of $350.0 million
20314.125 %4.35 %350,000 350,000 
Term Loan B Facility20291,425,000 1,675,000 
Revolving Facility200,000 — 
Total face value of long-term borrowings2,325,000 2,375,000 
Less:
Unamortized issuance costs54,712 56,973 
Current portion of long-term borrowings (1)
20,000 20,000 
Total long-term borrowings$2,250,288 $2,298,027 
(1) Represents the current portion of the borrowings under the Term Loan B facility.
v3.23.1
REVENUES (Tables)
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Revenues by Channel and Brand
Revenues by channel and brand were:

Three Months Ended March 31, 2023
Crocs BrandHEYDUDE BrandTotal
(in thousands)
Channel:
Wholesale$410,563 $167,863 $578,426 
Direct-to-consumer 238,215 67,525 305,740 
Total revenues$648,778 $235,388 $884,166 

Three Months Ended March 31, 2022
Crocs Brand
HEYDUDE Brand (1)
Total
(in thousands)
Channel:
Wholesale$344,258 $86,919 $431,177 
Direct-to-consumer200,967 28,004 228,971 
Total revenues$545,225 $114,923 $660,148 
(1) We acquired HEYDUDE on February 17, 2022 and, as a result, added the HEYDUDE Brand as a new operating segment. Therefore, the amounts shown above for the three months ended March 31, 2022 represent results during the partial period beginning February 17, 2022 through March 31, 2022.
v3.23.1
INCOME TAXES (Tables)
 3 Months Ended
Mar. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense and Effective Tax Rates
Income tax expense and effective tax rates were:
Three Months Ended March 31,
 20232022
(in thousands, except effective tax rate)
Income before income taxes$191,766 $99,060 
Income tax expense 42,223 26,300 
Effective tax rate22.0 %26.5 %
v3.23.1
EARNINGS PER SHARE (Tables)
 3 Months Ended
Mar. 31, 2023
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Earnings Per Share
Basic and diluted earnings per common share (“EPS”) for the three months ended March 31, 2023 and 2022 were:
Three Months Ended March 31,
20232022
(in thousands, except per share data)
Numerator:  
Net income
$149,543 $72,760 
Denominator:  
Weighted average common shares outstanding - basic
61,836 59,823 
Plus: Dilutive effect of stock options and unvested restricted stock units
793 1,073 
Weighted average common shares outstanding - diluted
62,629 60,896 
Net income per common share:
  
Basic$2.42 $1.22 
Diluted$2.39 $1.19 
v3.23.1
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION (Tables)
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Schedule of Information Related to Reportable Operating Segments
The following tables set forth information related to reportable operating segments:
Three Months Ended March 31,
20232022
(in thousands)
Revenues:
North America $351,308 $319,450 
Asia Pacific140,002 95,847 
EMEALA 157,467 129,921 
Brand corporate 1 7 
Total Crocs Brand648,778 545,225 
HEYDUDE Brand (1)
235,388 114,923 
Total consolidated revenues$884,166 $660,148 
Income from operations:
North America $127,783 $129,611 
Asia Pacific56,605 30,106 
EMEALA 65,776 34,927 
Brand corporate (32,157)(30,709)
Total Crocs Brand218,007 163,935 
HEYDUDE Brand (1)
76,620 15,658 
Reconciliation of total segment income from operations to income before income taxes:
  
Enterprise corporate (59,699)(60,916)
Income from operations
234,928 118,677 
Foreign currency gains (losses), net(403)480 
Interest income171 102 
Interest expense(42,637)(19,252)
Other expense, net(293)(947)
Income before income taxes$191,766 $99,060 
Depreciation and amortization:
North America $4,367 $2,220 
Asia Pacific630 523 
EMEALA 1,230 724 
Brand corporate 1,210 186 
Total Crocs Brand
7,437 3,653 
HEYDUDE Brand (1)
3,506 2,444 
Enterprise corporate 2,193 1,798 
Total consolidated depreciation and amortization
$13,136 $7,895 
(1) 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 three months ended March 31, 2022 represent results during the partial period beginning February 17, 2022 through March 31, 2022.
v3.23.1
ACQUISITION OF HEYDUDE (Tables)
 3 Months Ended
Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table summarizes the final allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed on the Acquisition Date:
February 17, 2022
(in thousands)
Cash and cash equivalents $6,232 
Accounts receivable, net 68,698 
Inventories 155,773 
Prepaid expenses and other assets (1)
7,880 
Intangible assets 1,780,000 
Goodwill (1)(2)
710,034 
Right-of-use assets 2,844 
Accounts payable (2)
(30,017)
Accrued expenses and other liabilities (18,860)
Income taxes payable (30,572)
Long-term deferred tax liability
(312,656)
Long-term income taxes payable (13,004)
Operating lease liabilities(2,843)
Net assets acquired $2,323,509 
(1) Includes a valuation adjustment that increased prepaid expenses and other assets by $3.5 million and decreased goodwill by $3.5 million during the three months ended March 31, 2023.
(2) Includes a valuation adjustment that increased goodwill by $0.2 million and increased accounts payable by $0.2 million during the three months ended March 31, 2023.
Schedule of Intangible Assets Acquired in Connection with the Acquisition
The components of intangible assets acquired in connection with the Acquisition were as follows:
Weighted-Average Useful LifeAmortization MethodEstimated Fair Value
(in thousands)
Customer relationships15Straight-line$210,000 
TrademarkIndefinite—1,570,000 
Total intangible assets$1,780,000 
Schedule of Pro Forma Information The pro forma information as presented below is for informational purposes only and is not indicative of the results of operations that would have been achieved if the Acquisition had taken place on January 1, 2021.
Three Months Ended March 31,
2022
(in thousands)
Revenues$750,477 
Net income115,092 
v3.23.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Feb. 17, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Cash paid for interest $ 47,729 $ 15,926  
Cash paid for income taxes 8,011 8,769  
Cash paid for operating leases 17,436 14,500  
Non-Cash Investing and Financing Activities:      
Right-of-use assets obtained in exchange for operating lease liabilities, net of terminations 9,108 13,888  
Accrued purchases of property, equipment, and software 11,720 9,369  
Share issuance at Acquisition 0 270,396  
Adjustment Holdback Amount $ 0 $ 8,500  
HEYDUDE      
Business Acquisition [Line Items]      
Percentage of voting interests acquired     100.00%
v3.23.1
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Payables and Accruals [Abstract]    
Accrued compensation and benefits $ 41,755 $ 55,474
Professional services 39,229 45,351
Fulfillment, freight, and duties 34,408 41,646
Return liabilities 21,792 27,651
Sales/use and value added taxes payable 25,119 27,249
Royalties payable and deferred revenue 8,746 10,528
Accrued rent and occupancy 6,362 8,972
Accrued legal fees 5,637 2,602
Other 18,773 19,951
Total accrued expenses and other liabilities $ 201,821 $ 239,424
v3.23.1
LEASES - Right-of-Use Assets and Operating Lease Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Assets:    
Right-of-use assets $ 233,981 $ 239,905
Liabilities:    
Current operating lease liabilities 57,560 57,456
Long-term operating lease liabilities 209,817 215,119
Total operating lease liabilities $ 267,377 $ 272,575
v3.23.1
LEASES - Lease Costs and Other Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Leases [Abstract]    
Operating lease cost $ 18,199 $ 14,231
Short-term lease cost 3,042 2,632
Variable lease cost 5,548 4,552
Total lease costs $ 26,789 $ 21,415
v3.23.1
LEASES - Narrative (Details)
Mar. 31, 2023
Mar. 31, 2022
Leases [Abstract]    
Weighted average remaining lease term 6 years 8 months 12 days 7 years 2 months 12 days
Weighted average discount rate (percent) 4.00% 3.60%
v3.23.1
LEASES - Maturities of Company's Operating Lease Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
2023 (remainder of year) $ 45,707  
2024 54,986  
2025 41,082  
2026 34,593  
2027 29,672  
Thereafter 100,166  
Total future minimum lease payments 306,206  
Less: imputed interest (38,829)  
Total operating lease liabilities 267,377 $ 272,575
Expected payments on leases not yet commenced $ 111,000  
v3.23.1
FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities at Fair Value (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Carrying Value | Line of Credit | Term Loan B Facility    
Fair Value and Carrying Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Outstanding borrowings $ 1,425,000 $ 1,675,000
Carrying Value | Line of Credit | Revolving Facility    
Fair Value and Carrying Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Outstanding borrowings 200,000 0
Carrying Value | 2029 Notes | Senior Notes    
Fair Value and Carrying Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Outstanding borrowings 350,000 350,000
Carrying Value | 2031 Notes | Senior Notes    
Fair Value and Carrying Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Outstanding borrowings 350,000 350,000
Fair Value | Line of Credit | Term Loan B Facility    
Fair Value and Carrying Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Outstanding borrowings 1,422,328 1,642,547
Fair Value | Line of Credit | Revolving Facility    
Fair Value and Carrying Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Outstanding borrowings 200,000 0
Fair Value | 2029 Notes | Senior Notes    
Fair Value and Carrying Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Outstanding borrowings 306,345 297,596
Fair Value | 2031 Notes | Senior Notes    
Fair Value and Carrying Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Outstanding borrowings $ 289,291 $ 284,240
v3.23.1
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2023
USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Foreign currency cash flow hedge loss reclassified to earnings, net $ 0.5
Foreign currency cash flow hedge loss to be reclassified during next 12 months $ 0.5
v3.23.1
DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value of Derivative Assets and Liabilities (Details) - Level 2 - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Foreign Currency Derivatives    
Derivative asset, net foreign currency forward contract derivatives $ 348 $ 348
Derivative liability, net foreign currency forward contract derivatives (453) (1,131)
Not Designated as Hedging Instrument    
Foreign Currency Derivatives    
Derivative asset, gross forward foreign currency exchange contracts 783 345
Derivative liability, gross forward foreign currency exchange contracts (429) (360)
Designated as Hedging Instrument    
Foreign Currency Derivatives    
Derivative asset, gross forward foreign currency exchange contracts 843 693
Derivative asset, netting of counterparty contracts (495) (345)
Derivative liability, gross forward foreign currency exchange contracts (948) (1,476)
Derivative liability, netting of counterparty contracts 495 345
Designated as Hedging Instrument | Foreign Exchange Contract    
Foreign Currency Derivatives    
Derivative asset, gross forward foreign currency exchange contracts 60 348
Derivative liability, gross forward foreign currency exchange contracts $ (519) $ (1,116)
v3.23.1
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Derivative Financial Instruments Notional Amounts on Outstanding Positions (Details) - USD ($)
$ in Thousands
Mar. 31, 2023
Dec. 31, 2022
Derivatives - Fair Value [Line Items]    
Notional $ 144,282 $ 193,065
Fair Value (105) (783)
Not Designated as Hedging Instrument    
Derivatives - Fair Value [Line Items]    
Notional 102,136 98,638
Fair Value 354 (15)
Designated as Hedging Instrument    
Derivatives - Fair Value [Line Items]    
Notional 42,146 94,427
Fair Value (459) (768)
Singapore Dollar | Not Designated as Hedging Instrument    
Derivatives - Fair Value [Line Items]    
Notional 26,760 26,760
Fair Value 165 207
Indian Rupee | Not Designated as Hedging Instrument    
Derivatives - Fair Value [Line Items]    
Notional 24,945 24,945
Fair Value (334) (10)
Indian Rupee | Designated as Hedging Instrument    
Derivatives - Fair Value [Line Items]    
Notional 3,010 7,203
Fair Value 17 113
South Korean Won | Not Designated as Hedging Instrument    
Derivatives - Fair Value [Line Items]    
Notional 18,403 18,403
Fair Value 332 (320)
South Korean Won | Designated as Hedging Instrument    
Derivatives - Fair Value [Line Items]    
Notional 5,407 12,285
Fair Value (168) (756)
British Pound Sterling | Not Designated as Hedging Instrument    
Derivatives - Fair Value [Line Items]    
Notional 14,695 14,509
Fair Value (26) 128
British Pound Sterling | Designated as Hedging Instrument    
Derivatives - Fair Value [Line Items]    
Notional 10,812 23,025
Fair Value (5) 235
Japanese Yen | Not Designated as Hedging Instrument    
Derivatives - Fair Value [Line Items]    
Notional 12,265 8,953
Fair Value 280 9
Euro | Not Designated as Hedging Instrument    
Derivatives - Fair Value [Line Items]    
Notional 5,068 5,068
Fair Value (63) (29)
Euro | Designated as Hedging Instrument    
Derivatives - Fair Value [Line Items]    
Notional 22,917 51,914
Fair Value $ (303) $ (360)
v3.23.1
DERIVATIVE FINANCIAL INSTRUMENTS - Gains / Losses on Foreign Currency Derivatives (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Derivatives - Fair Value [Line Items]    
Foreign currency gains (losses), net $ (403) $ 480
Not Designated as Hedging Instrument    
Derivatives - Fair Value [Line Items]    
Foreign currency transaction losses (771) (917)
Foreign currency forward exchange contracts gains 368 1,397
Foreign currency gains (losses), net $ (403) $ 480
v3.23.1
BORROWINGS - Schedule of the Company's Borrowings (Details) - USD ($)
Mar. 31, 2023
Dec. 31, 2022
Aug. 31, 2021
Mar. 31, 2021
Debt Instrument [Line Items]        
Total face value of long-term borrowings $ 2,325,000,000 $ 2,375,000,000    
Unamortized issuance costs 54,712,000 56,973,000    
Current portion of long-term borrowings 32,970,000 24,362,000    
Total long-term borrowings 2,250,288,000 2,298,027,000    
Senior Notes | 2029 Notes        
Debt Instrument [Line Items]        
Note issuance cost $ 350,000,000     $ 350,000,000
Stated Interest Rate 4.25%     4.25%
Effective Interest Rate 4.64%      
Total face value of long-term borrowings $ 350,000,000 350,000,000    
Senior Notes | 2031 Notes        
Debt Instrument [Line Items]        
Note issuance cost $ 350,000,000   $ 350,000,000  
Stated Interest Rate 4.125%   4.125%  
Effective Interest Rate 4.35%      
Total face value of long-term borrowings $ 350,000,000 350,000,000    
Line of Credit | Term Loan B Facility        
Debt Instrument [Line Items]        
Total face value of long-term borrowings 1,425,000,000 1,675,000,000    
Current portion of long-term borrowings 20,000,000 20,000,000    
Line of Credit | Revolving Facility        
Debt Instrument [Line Items]        
Total face value of long-term borrowings $ 200,000,000 $ 0    
v3.23.1
BORROWINGS - Narrative (Details)
¥ in Millions
 1 Months Ended 3 Months Ended
Feb. 17, 2022
USD ($)
Jul. 31, 2019
USD ($)
Mar. 31, 2023
USD ($)
facility
Mar. 31, 2023
CNY (¥)
Dec. 31, 2022
USD ($)
Revolving Credit Facilities and Bank Borrowings          
Total face value of long-term borrowings     $ 2,325,000,000   $ 2,375,000,000
Number of credit facility | facility     2    
Revolving Facility | Line of Credit          
Revolving Credit Facilities and Bank Borrowings          
Total face value of long-term borrowings     $ 200,000,000   0
Revolving Facility | Senior Revolving Credit Facility          
Revolving Credit Facilities and Bank Borrowings          
Borrowing capacity under revolving credit facility   $ 750,000,000      
Additional borrowing under credit agreement   $ 250,000,000      
Minimum interest coverage ratio   3.00      
Minimum borrowing availability for certain acquisitions   $ 40,000,000      
Commitments available under credit facility     750,000,000    
Available borrowing capacity     548,700,000   748,700,000
Revolving Facility | Senior Revolving Credit Facility | From Quarter Ended March 31, 2022 to Quarter Ended December 31, 2023          
Revolving Credit Facilities and Bank Borrowings          
Maximum leverage coverage ratio   4.00      
Revolving Facility | Senior Revolving Credit Facility | From Quarter Ended March 31, 2024          
Revolving Credit Facilities and Bank Borrowings          
Maximum leverage coverage ratio   3.75      
Revolving Facility | Senior Revolving Credit Facility | From Quarter Ended June 30, 2024          
Revolving Credit Facilities and Bank Borrowings          
Maximum leverage coverage ratio   3.50      
Revolving Facility | Senior Revolving Credit Facility | From Quarter Ended September 30, 2024          
Revolving Credit Facilities and Bank Borrowings          
Maximum leverage coverage ratio   3.25      
Revolving Facility | Senior Revolving Credit Facility | Federal Funds Open Rate          
Revolving Credit Facilities and Bank Borrowings          
Margin on variable rate (percent)   0.25%      
Revolving Facility | Senior Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)          
Revolving Credit Facilities and Bank Borrowings          
Margin on variable rate (percent)   1.00%      
Revolving Facility | Senior Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Minimum | Debt Instrument, Redemption, Period One          
Revolving Credit Facilities and Bank Borrowings          
Margin on variable rate (percent)   1.35%      
Revolving Facility | Senior Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Maximum | Debt Instrument, Redemption, Period One          
Revolving Credit Facilities and Bank Borrowings          
Margin on variable rate (percent)   1.975%      
Revolving Facility | Senior Revolving Credit Facility | Base Rate | Minimum          
Revolving Credit Facilities and Bank Borrowings          
Margin on variable rate (percent)   0.25%      
Revolving Facility | Senior Revolving Credit Facility | Base Rate | Maximum          
Revolving Credit Facilities and Bank Borrowings          
Margin on variable rate (percent)   0.875%      
Revolving Facility | Senior Revolving Credit Facility | Simple Secured Overnight Financing Rate (SOFR) | Minimum          
Revolving Credit Facilities and Bank Borrowings          
Margin on variable rate (percent)   1.35%      
Revolving Facility | Senior Revolving Credit Facility | Simple Secured Overnight Financing Rate (SOFR) | Maximum          
Revolving Credit Facilities and Bank Borrowings          
Margin on variable rate (percent)   1.975%      
Revolving Facility | CMBC Revolving Credit Facility          
Revolving Credit Facilities and Bank Borrowings          
Commitments available under credit facility     1,500,000 ¥ 10.0  
Current borrowings         0
Revolving Facility | Asia Pacific Citibank Revolving Credit Facility          
Revolving Credit Facilities and Bank Borrowings          
Commitments available under credit facility     15,000,000    
Current borrowings     13,000,000   4,300,000
Revolving Facility | Revolving Facility          
Revolving Credit Facilities and Bank Borrowings          
Outstanding letters of credit     1,300,000    
Term Loan B Facility | Line of Credit          
Revolving Credit Facilities and Bank Borrowings          
Borrowing capacity under revolving credit facility $ 2,000,000,000        
Total face value of long-term borrowings     1,425,000,000   1,675,000,000
Borrowings outstanding     5,000,000    
Term Loan B Facility | Secured Overnight Financing Rate (SOFR) | Line of Credit          
Revolving Credit Facilities and Bank Borrowings          
Margin on variable rate (percent) 3.50%        
Term Loan B Facility | Base Rate | Line of Credit          
Revolving Credit Facilities and Bank Borrowings          
Margin on variable rate (percent) 2.50%        
Accounts Payable          
Revolving Credit Facilities and Bank Borrowings          
Interest payable     $ 3,200,000   $ 10,800,000
v3.23.1
BORROWINGS - Senior Notes Issuance (Details) - Senior Notes - USD ($)
 1 Months Ended
Aug. 31, 2021
Mar. 31, 2021
Mar. 31, 2023
2029 Notes      
Debt Instrument [Line Items]      
Aggregate principal amount   $ 350,000,000 $ 350,000,000
Stated Interest Rate   4.25% 4.25%
2029 Notes | Debt Instrument, Redemption, Period One      
Debt Instrument [Line Items]      
Redemption price, percentage   100.00%  
2029 Notes | Debt Instrument, Redemption, Period Two      
Debt Instrument [Line Items]      
Redemption price, percentage   100.00%  
2029 Notes | Debt Instrument, Redemption, Period Three      
Debt Instrument [Line Items]      
Redemption price, percentage   104.25%  
Percentage of principal amount redeemable   40.00%  
2031 Notes      
Debt Instrument [Line Items]      
Aggregate principal amount $ 350,000,000   $ 350,000,000
Stated Interest Rate 4.125%   4.125%
Guarantor $ 25,000,000    
2031 Notes | Debt Instrument, Redemption, Period One      
Debt Instrument [Line Items]      
Redemption price, percentage 100.00%    
2031 Notes | Debt Instrument, Redemption, Period Two      
Debt Instrument [Line Items]      
Redemption price, percentage 100.00%    
2031 Notes | Debt Instrument, Redemption, Period Three      
Debt Instrument [Line Items]      
Redemption price, percentage 104.125%    
Percentage of principal amount redeemable 40.00%    
v3.23.1
COMMON STOCK REPURCHASE PROGRAM (Details) - Common Stock - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Class of Stock [Line Items]    
Stock repurchased during period (in shares) 0 0
Remaining authorization to repurchase common stock $ 1,050.0  
v3.23.1
REVENUES (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Disaggregation of Revenue [Line Items]    
Revenues $ 884,166 $ 660,148
Wholesale    
Disaggregation of Revenue [Line Items]    
Revenues 578,426 431,177
Direct-to-consumer    
Disaggregation of Revenue [Line Items]    
Revenues 305,740 228,971
Crocs Brand    
Disaggregation of Revenue [Line Items]    
Revenues 648,778 545,225
Crocs Brand | Wholesale    
Disaggregation of Revenue [Line Items]    
Revenues 410,563 344,258
Crocs Brand | Direct-to-consumer    
Disaggregation of Revenue [Line Items]    
Revenues 238,215 200,967
HEYDUDE Brand    
Disaggregation of Revenue [Line Items]    
Revenues 235,388 114,923
HEYDUDE Brand | Wholesale    
Disaggregation of Revenue [Line Items]    
Revenues 167,863 86,919
HEYDUDE Brand | Direct-to-consumer    
Disaggregation of Revenue [Line Items]    
Revenues $ 67,525 $ 28,004
v3.23.1
INCOME TAXES - Summary of Tax Expense and Effective Tax Rates (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Income Tax Disclosure [Abstract]    
Income before income taxes $ 191,766 $ 99,060
Income tax expense $ 42,223 $ 26,300
Effective tax rate 22.00% 26.50%
v3.23.1
INCOME TAXES - Narrative (Details) - USD ($)
$ in Millions
Mar. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]    
Unrecognized tax benefits $ 222.0 $ 219.4
v3.23.1
EARNINGS PER SHARE (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Numerator:    
Net income $ 149,543 $ 72,760
Denominator:    
Weighted average common shares outstanding - basic (in shares) 61,836 59,823
Plus: Dilutive effect of stock options and unvested restricted stock units (in shares) 793 1,073
Weighted average common shares outstanding - diluted (in shares) 62,629 60,896
Net income per common share:    
Basic (in dollars per share) $ 2.42 $ 1.22
Diluted (in dollars per share) $ 2.39 $ 1.19
v3.23.1
COMMITMENTS AND CONTINGENCIES (Details)
$ in Millions
Mar. 31, 2023
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Purchase commitments with third party manufacturers $ 366.3
v3.23.1
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION - Narrative (Details)
 3 Months Ended
Mar. 31, 2023
segment
Crocs, Inc  
Segment Reporting Information [Line Items]  
Number of reportable segments 4
Crocs Brand  
Segment Reporting Information [Line Items]  
Number of reportable segments 3
v3.23.1
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION - Information Related to Reportable Operating Business Segments (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
Segment Reporting Information [Line Items]    
Total consolidated revenues $ 884,166 $ 660,148
Income from operations 234,928 118,677
Foreign currency gains (losses), net (403) 480
Interest income 171 102
Interest expense (42,637) (19,252)
Other expense, net (293) (947)
Income before income taxes 191,766 99,060
Total consolidated depreciation and amortization 13,136 7,895
Total Crocs Brand    
Segment Reporting Information [Line Items]    
Total consolidated revenues 648,778 545,225
HEYDUDE Brand    
Segment Reporting Information [Line Items]    
Total consolidated revenues 235,388 114,923
Reportable Operating Segments | Total Crocs Brand    
Segment Reporting Information [Line Items]    
Total consolidated revenues 648,778 545,225
Income from operations 218,007 163,935
Total consolidated depreciation and amortization 7,437 3,653
Reportable Operating Segments | North America    
Segment Reporting Information [Line Items]    
Total consolidated revenues 351,308 319,450
Income from operations 127,783 129,611
Total consolidated depreciation and amortization 4,367 2,220
Reportable Operating Segments | Asia Pacific    
Segment Reporting Information [Line Items]    
Total consolidated revenues 140,002 95,847
Income from operations 56,605 30,106
Total consolidated depreciation and amortization 630 523
Reportable Operating Segments | EMEALA    
Segment Reporting Information [Line Items]    
Total consolidated revenues 157,467 129,921
Income from operations 65,776 34,927
Total consolidated depreciation and amortization 1,230 724
Reportable Operating Segments | HEYDUDE Brand    
Segment Reporting Information [Line Items]    
Total consolidated revenues 235,388 114,923
Income from operations 76,620 15,658
Total consolidated depreciation and amortization 3,506 2,444
Brand corporate | Brand corporate    
Segment Reporting Information [Line Items]    
Total consolidated revenues 1 7
Income from operations (32,157) (30,709)
Total consolidated depreciation and amortization 1,210 186
Enterprise corporate    
Segment Reporting Information [Line Items]    
Income from operations (59,699) (60,916)
Total consolidated depreciation and amortization $ 2,193 $ 1,798
v3.23.1
ACQUISITION OF HEYDUDE - Narrative (Details) - USD ($)
 1 Months Ended 3 Months Ended
Feb. 17, 2022
Mar. 31, 2022
Mar. 31, 2023
Mar. 31, 2022
Dec. 31, 2022
Business Acquisition [Line Items]          
Revenues     $ 884,166,000 $ 660,148,000  
Income from operations     234,928,000 118,677,000  
Goodwill     711,560,000   $ 714,814,000
Goodwill valuation adjustment     (3,500,000)    
Escrow Amount          
Business Acquisition [Line Items]          
Escrow deposit $ 125,000,000        
Business acquisition, escrow period 18 months        
Adjustment Holdback Amount          
Business Acquisition [Line Items]          
Escrow deposit $ 8,500,000        
Term Loan B Facility | Line of Credit          
Business Acquisition [Line Items]          
Borrowing capacity under revolving credit facility $ 2,000,000,000        
HEYDUDE          
Business Acquisition [Line Items]          
Percentage of voting interests acquired 100.00%        
Consideration transferred $ 2,300,000,000        
Cash consideration $ 2,050,000,000.00        
Equity interest issued (in shares) 2,852,280        
Revenue of acquiree since acquisition date, actual   $ 114,900,000      
Income from acquiree   $ 15,700,000      
Goodwill $ 710,034,000   710,000,000    
Goodwill valuation adjustment     3,300,000    
Goodwill deductible for income tax purposes     0    
Acquisition-related costs     $ 0 $ 20,600,000  
HEYDUDE | Term Loan B Facility | Line of Credit          
Business Acquisition [Line Items]          
Borrowing capacity under revolving credit facility 2,000,000,000        
HEYDUDE | Revolving Facility | Line of Credit          
Business Acquisition [Line Items]          
Borrowing capacity under revolving credit facility $ 50,000,000        
v3.23.1
ACQUISITION OF HEYDUDE - Schedule of Asset Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2023
Dec. 31, 2022
Feb. 17, 2022
Business Acquisition [Line Items]      
Goodwill $ 711,560 $ 714,814  
Prepaid expenses and other assets 3,500    
Goodwill valuation adjustment 3,500    
Goodwill adjustment 200    
Accounts payable 200    
HEYDUDE      
Business Acquisition [Line Items]      
Cash and cash equivalents     $ 6,232
Accounts receivable, net     68,698
Inventories     155,773
Prepaid expenses and other assets     7,880
Total intangible assets     1,780,000
Goodwill 710,000   710,034
Right-of-use assets     2,844
Accounts payable     (30,017)
Accrued expenses and other liabilities     (18,860)
Income taxes payable     (30,572)
Long-term deferred tax liability     (312,656)
Long-term income taxes payable     (13,004)
Operating lease liabilities     (2,843)
Net assets acquired     $ 2,323,509
Goodwill valuation adjustment $ (3,300)    
v3.23.1
ACQUISITION OF HEYDUDE - Schedule of Intangible Assets (Details) - HEYDUDE
$ in Thousands
Feb. 17, 2022
USD ($)
Business Acquisition [Line Items]  
Total intangible assets $ 1,780,000
Trademark  
Business Acquisition [Line Items]  
Indefinite-lived intangible assets acquired $ 1,570,000
Customer relationships  
Business Acquisition [Line Items]  
Weighted-Average Useful Life 15 years
Finite-lived intangible assets acquired $ 210,000
v3.23.1
ACQUISITION OF HEYDUDE - Proforma Information (Details) - HEYDUDE
$ in Thousands
 3 Months Ended
Mar. 31, 2022
USD ($)
Business Acquisition [Line Items]  
Revenues $ 750,477
Net income $ 115,092