CROCS, INC., 10-K filed on 2/15/2024
Annual Report
v3.24.0.1
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2023
Feb. 08, 2024
Jun. 30, 2023
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2023    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 0-51754    
Entity Registrant Name CROCS, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 20-2164234    
Entity Address, Address Line One 500 Eldorado Boulevard    
Entity Address, Address Line Two Building 5    
Entity Address, City or Town Broomfield    
Entity Address, State or Province CO    
Entity Address, Postal Zip Code 80021    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 6.8
Entity Common Stock, Shares Outstanding   60,498,530  
Documents Incorporated by Reference
Part III incorporates certain information by reference from the registrant’s proxy statement for the 2024 annual meeting of stockholders to be filed no later than 120 days after the end of the registrant’s fiscal year ended December 31, 2023.
    
Amendment Flag false    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2023    
Entity Central Index Key 0001334036    
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Audit Information
 12 Months Ended
Dec. 31, 2023
Audit Information [Abstract]  
Auditor Name Deloitte & Touche LLP
Auditor Location Denver, Colorado
Auditor Firm ID 34
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CONSOLIDATED STATEMENTS OF INCOME - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Statement [Abstract]      
Revenues $ 3,962,347 $ 3,554,985 $ 2,313,416
Cost of sales 1,752,337 1,694,703 893,196
Gross profit 2,210,010 1,860,282 1,420,220
Selling, general and administrative expenses 1,163,940 1,009,526 737,156
Asset impairments 9,287 0 0
Income from operations 1,036,783 850,756 683,064
Foreign currency gains (losses), net (1,240) 3,228 (140)
Interest income 2,406 1,020 775
Interest expense (161,351) (136,158) (21,647)
Other income (expense), net (326) (338) 1,797
Income before income taxes 876,272 718,508 663,849
Income tax expense (benefit) 83,706 178,349 (61,845)
Net income $ 792,566 $ 540,159 $ 725,694
Net income per common share:      
Basic (in dollars per share) $ 12.91 $ 8.82 $ 11.62
Diluted (in dollars per share) $ 12.79 $ 8.71 $ 11.39
Weighted average common shares outstanding:      
Basic (in shares) 61,386 61,220 62,464
Diluted (in shares) 61,952 62,006 63,718
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net income $ 792,566 $ 540,159 $ 725,694
Derivatives designated as hedging instruments:      
Unrealized gains (losses) on derivative instruments (281) (576) 0
Reclassification adjustment for realized gains (losses) on derivative instruments 563 0 0
Net increase (decrease) from derivatives designated as hedging instruments 282 (576) 0
Foreign currency gains (losses), net 7,441 (17,929) (20,484)
Reclassification of foreign currency translation (gain) loss to income [1] 0 (8,148) 0
Total comprehensive income, net of tax $ 800,289 $ 513,506 $ 705,210
[1] Represents the reclassification of a cumulative foreign currency translation adjustment upon substantial liquidation of foreign subsidiaries which is presented within ‘Selling, general and administrative expenses’ in the consolidated statements of operations.
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 149,288 $ 191,629
Restricted cash — current 2 2
Accounts receivable, net of allowances of $27,591 and $24,493, respectively 305,747 295,594
Inventories 385,054 471,551
Income taxes receivable 4,413 14,752
Other receivables 21,071 18,842
Prepaid expenses and other assets 45,129 33,605
Total current assets 910,704 1,025,975
Property and equipment, net 238,315 181,529
Intangible assets, net 1,792,562 1,800,167
Goodwill 711,588 714,814
Deferred tax assets, net 667,972 528,278
Restricted cash 3,807 3,254
Right-of-use assets 287,440 239,905
Other assets 31,446 7,875
Total assets 4,643,834 4,501,797
Current liabilities:    
Accounts payable 260,978 230,821
Accrued expenses and other liabilities 285,771 239,424
Income taxes payable 65,952 89,211
Current borrowings 23,328 24,362
Current operating lease liabilities 62,267 57,456
Total current liabilities 698,296 641,274
Deferred tax liabilities, net 12,912 302,030
Long-term income taxes payable 565,171 224,837
Long-term borrowings 1,640,996 2,298,027
Long-term operating lease liabilities 269,769 215,119
Other liabilities 2,767 2,579
Total liabilities 3,189,911 3,683,866
Stockholders’ equity:    
Common stock, par value $0.001 per share, 110.1 million and 109.5 million issued, 60.5 million and 61.7 million shares outstanding, respectively 110 110
Treasury stock, at cost, 49.6 million and 47.7 million shares, respectively (1,888,869) (1,695,501)
Additional paid-in capital 826,685 797,614
Retained earnings 2,611,765 1,819,199
Accumulated other comprehensive loss (95,768) (103,491)
Total stockholders’ equity 1,453,923 817,931
Total liabilities and stockholders’ equity $ 4,643,834 $ 4,501,797
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands, shares in Millions
Dec. 31, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Allowances $ 27,591 $ 24,493
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock issued (in shares) 110.1 109.5
Common shares outstanding (in shares) 60.5 61.7
Treasury stock (in shares) 49.6 47.7
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CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
$ in Thousands
Total
Common Stock
Treasury Stock
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive (Loss)
Beginning balance (in shares) at Dec. 31, 2020   65,856,000        
Beginning balance at Dec. 31, 2020 $ 290,633 $ 105 $ (688,849) $ 482,385 $ 553,346 $ (56,354)
Beginning balance (in shares) at Dec. 31, 2020     39,132,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Share-based compensation 38,122     38,122    
Exercises of stock options and issuance of restricted stock units, net of shares withheld for taxes (in shares)   716,000 209,000      
Exercises of stock options and issuance of restricted stock units, net of shares withheld for taxes (19,883) $ 1 $ (20,119) 235    
Repurchases of common stock, including excise tax (in shares)   (8,242,000) 8,242,000      
Repurchases of common stock, including excise tax (1,000,000)   $ (975,294) (24,706)    
Net income 725,694       725,694  
Other comprehensive (loss) income (20,484)         (20,484)
Ending balance (in shares) at Dec. 31, 2021   58,330,000        
Ending balance at Dec. 31, 2021 14,082 $ 106 $ (1,684,262) 496,036 1,279,040 (76,838)
Ending balance (in shares) at Dec. 31, 2021     47,583,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Share-based compensation 31,303     31,303    
Exercises of stock options and issuance of restricted stock units, net of shares withheld for taxes (in shares)   567,000 147,000      
Exercises of stock options and issuance of restricted stock units, net of shares withheld for taxes (11,356) $ 1 $ (11,239) (118)    
Share issuance at Acquisition (in shares)   2,852,000        
Share issuance at Acquisition 270,396 $ 3   270,393    
Repurchases of common stock, including excise tax (in shares)   0        
Net income 540,159       540,159  
Other comprehensive (loss) income $ (26,653)         (26,653)
Ending balance (in shares) at Dec. 31, 2022 61,700,000 61,749,000        
Ending balance at Dec. 31, 2022 $ 817,931 $ 110 $ (1,695,501) 797,614 1,819,199 (103,491)
Ending balance (in shares) at Dec. 31, 2022 47,700,000   47,730,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Share-based compensation $ 29,072     29,072    
Exercises of stock options and issuance of restricted stock units, net of shares withheld for taxes (in shares)   427,000 147,000      
Exercises of stock options and issuance of restricted stock units, net of shares withheld for taxes (17,087)   $ (17,086) (1)    
Repurchases of common stock, including excise tax (in shares)   (1,681,000) 1,681,000      
Repurchases of common stock, including excise tax (176,282) $ (175,000) $ (176,282)      
Net income 792,566       792,566  
Other comprehensive (loss) income $ 7,723         7,723
Ending balance (in shares) at Dec. 31, 2023 60,500,000 60,495,000        
Ending balance at Dec. 31, 2023 $ 1,453,923 $ 110 $ (1,888,869) $ 826,685 $ 2,611,765 $ (95,768)
Ending balance (in shares) at Dec. 31, 2023 49,600,000   49,558,000      
v3.24.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash flows from operating activities:      
Net income $ 792,566 $ 540,159 $ 725,694
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 54,304 39,229 31,976
Loss on disposal of assets 419 9,063 310
Operating lease cost 79,543 66,012 58,283
Inventory donations 2,078 2,770 1,264
Provision (recovery) for doubtful accounts, net 3,568 1,101 (2,629)
Share-based compensation 29,072 31,303 38,122
Asset impairments 9,287 0 0
Deferred taxes (410,319) (4,760) (241,283)
Other non-cash items 3,401 9,947 (46)
Changes in operating assets and liabilities, net of acquired assets and assumed liabilities:      
Accounts receivable, net of allowances (13,317) (56,766) (35,063)
Inventories 86,350 (91,614) (43,063)
Prepaid expenses and other assets (31,839) (14,435) (6,212)
Accounts payable 37,197 41,701 34,868
Accrued expenses and other liabilities 46,695 38,629 38,448
Right-of-use assets and operating lease liabilities (75,107) (63,355) (52,752)
Income taxes 316,546 54,158 19,248
Cash provided by operating activities 930,444 603,142 567,165
Cash flows from investing activities:      
Purchases of property, equipment, and software (115,625) (104,190) (55,916)
Acquisition of HEYDUDE, net of cash acquired 0 (2,046,881) 0
Other (46) (20) (9)
Cash used in investing activities (115,671) (2,151,091) (55,925)
Cash flows from financing activities:      
Proceeds from notes issuance 0 0 700,000
Proceeds from bank borrowings 257,905 2,169,898 390,000
Repayments of bank borrowings (923,703) (575,285) (485,000)
Deferred debt issuance costs (1,736) (53,596) (14,755)
Repurchases of common stock (175,019) 0 (1,000,000)
Repurchases of common stock for tax withholding (17,086) (11,477) (20,119)
Other 0 119 236
Cash provided by (used in) financing activities (859,639) 1,529,659 (429,638)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash 3,078 (3,750) (3,950)
Net change in cash, cash equivalents, and restricted cash (41,788) (22,040) 77,652
Cash, cash equivalents, and restricted cash — beginning of year 194,885 216,925 139,273
Cash, cash equivalents, and restricted cash — end of year 153,097 194,885 216,925
Supplemental Schedule of Non-Cash Investing and Financing Activities      
Cash paid for interest 151,621 127,809 10,210
Cash paid for income taxes 179,721 130,084 159,680
Cash paid for operating leases 74,729 62,852 61,412
Right-of-use assets obtained in exchange for operating lease liabilities, net of terminations 120,865 137,554 55,035
Accrued purchases of property, equipment, and software 7,668 18,245 15,831
Share issuance at Acquisition $ 0 $ 270,396 $ 0
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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 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 its 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 all. We strive to be the global leader in the sale of casual footwear characterized by functionality, comfort, color, and lightweight design.

On February 17, 2022, 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. HEYDUDE is engaged in the business of distributing and selling casual footwear under the brand name “HEYDUDE.”

Our business has continued to evolve in the period following the consummation of the HEYDUDE acquisition, as we have grown the brand and staffed and developed our leadership team at HEYDUDE. In the fourth quarter of 2023, to reflect changes in the way management evaluates performance, makes operating decisions, and allocates resources, we updated our reportable operating segments to be (i) Crocs Brand and (ii) HEYDUDE Brand. See Note 17 — Operating Segments and Geographic Information for additional information.

Basis of Presentation and Consolidation

Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries, and they reflect all adjustments which are necessary for a fair statement of results of operations, financial position, and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

Our consolidated financial statements are prepared in accordance with U.S. GAAP. These accounting principles require 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 and allowances, 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, goodwill, and indefinite-lived intangible assets, and purchase price allocation for the Acquisition, as described in Note 3 — Acquisition of HEYDUDE, are reasonable based on information available at the time they are made.

Additionally, we are periodically exposed to various contingencies in the ordinary course of conducting our business, including certain litigation, contractual disputes, employee relations matters, various tax or other governmental audits, and trademark and intellectual property matters and disputes. We record a liability for such contingencies to the extent that we conclude their occurrence is probable and the related losses are estimable. If it is reasonably possible that an unfavorable settlement of a contingency could exceed the established liability, we disclose the estimated impact on our liquidity, financial condition, and results of operations, if practicable. As the ultimate resolution of contingencies is inherently unpredictable, these assessments can involve a series of complex judgments about future events including, but not limited to, court rulings, negotiations between affected parties, and governmental actions. As a result, the accounting for loss contingencies relies heavily on management’s judgment in developing the related estimates and assumptions. See Note 16 — Commitments and Contingencies for additional information regarding our contingencies and legal proceedings.

To the extent there are differences between these estimates and actual results, our consolidated financial statements may be materially affected.

Reclassifications

We have reclassified certain amounts in Note 6 — Accrued Expenses and Other Liabilities, Note 12 — Revenues, and Note 17 — Operating Segments and Geographic Information to conform to current period presentation.
Cash and Cash Equivalents

Cash and cash equivalents represent cash and short-term, highly-liquid investments with maturities of three months or less at the date of purchase. We report receivables from credit card companies in cash and cash equivalents.

Restricted Cash

Restricted cash primarily consists of funds to secure certain retail store leases, certain customs requirements, and other contractual arrangements.

Accounts Receivable, Net

Accounts receivable are recorded at invoiced amounts, net of reserves and allowances. We reduce the carrying value for estimated uncollectible accounts based on a variety of factors including the length of time receivables are past due, economic trends and conditions affecting our customer base, and historical collection experience. Specific provisions are recorded for individual receivables when we become aware of a customer’s inability to meet its financial obligations. We write off accounts receivable to the reserves when they are deemed uncollectible or, in certain jurisdictions, when legally able to do so. See Schedule II in Item 15. Exhibits, Financial Statement Schedule of this Annual Report on Form 10-K for more information.

Inventories

Inventories are comprised of finished goods, are stated at the lower of cost or net realizable value, and are recognized using the first-in-first-out method of inventory costing. We estimate the market value of inventory based on an analysis of historical sales trends of our individual product lines, the impact of market trends and economic conditions, and a forecast of future demand, giving consideration to the value of current orders in-house for future sales of inventory, as well as plans to sell discontinued or end-of-life inventory through our outlet stores, among other off-price channels. Estimates may differ from actual results due to the quantity, quality, and mix of products in inventory, consumer and retailer preferences, and market conditions. If the estimated market value is less than its carrying value, the carrying value is adjusted to the market value, and the difference is recorded in ‘Cost of sales’ in our consolidated statements of operations.

Reserves for the risk of physical loss of inventory are estimated based on historical experience and are adjusted based upon physical inventory counts, and they are recorded within ‘Cost of sales’ in our consolidated statements of operations.

Property and Equipment, Net

Property, equipment, furniture, and fixtures are stated at original cost, less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful asset lives. The useful lives are reviewed periodically and typically range from 2 to 10 years for machinery and equipment and furniture, fixtures and others. Leasehold improvements are stated at cost and amortized on a straight-line basis over their estimated economic useful lives or the lease term, whichever is shorter. Costs of enhancements or modifications that substantially extend the capacity or useful life of an asset are capitalized and depreciated accordingly. Ordinary repairs and maintenance are expensed as incurred. Depreciation of warehouse- and distribution-related assets is included in ‘Cost of sales’ in our consolidated statements of operations. Depreciation related to retail store, corporate, and non-product assets is included in ‘Selling, general and administrative expenses’ in our consolidated statements of operations. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from our consolidated balance sheets, and the resulting gain or loss, if any, is reflected in ‘Income from operations’ in the consolidated statements of operations.

Goodwill and Other Intangible Assets, Net

We evaluate the carrying value of our goodwill and indefinite-lived intangible assets for impairment at the reporting unit level at least annually or when an interim triggering event has occurred indicating potential impairment.

The excess of the purchase price over the fair value of acquired net assets represents goodwill. Our goodwill balance as of December 31, 2023 was $711.6 million and primarily related to the acquisition of HEYDUDE during the year ended December 31, 2022. As of December 31, 2023, a goodwill amount of $710.0 million was assigned to the HEYDUDE Brand segment and consisted of the acquired workforce and economies of scale resulting from the Acquisition.
When performing our annual test for impairment, we may assess goodwill and indefinite-lived intangible assets for potential impairment using either a qualitative or quantitative assessment. Significant judgments and assumptions are required in such impairment evaluations. For the quantitative assessment, we compare the estimated fair value of a reporting unit with its carrying value, including the goodwill assigned to the reporting unit. If the carrying value of the reporting unit exceeds its estimated fair value, an impairment charge is recorded. For the year ended December 31, 2023, we performed a qualitative and quantitative assessment for the HEYDUDE Brand reporting unit goodwill, and we performed a quantitative assessment for the HEYDUDE Brand indefinite-lived intangible assets. The estimated fair values of the HEYDUDE Brand reporting unit goodwill and indefinite-lived trademark exceeded their carrying values. For the year ended December 31, 2022, we performed a quantitative assessment for the HEYDUDE Brand reporting unit goodwill and the HEYDUDE Brand indefinite-lived intangible assets, each of which indicated the estimated fair values exceeded their carrying values. Additionally for the years ended December 31, 2023, 2022, and 2021, we performed a qualitative assessment for the goodwill in our Crocs Brand segment, which indicated that it was more likely than not that the estimated fair value exceeded its carrying value. We did not record any impairment charges in the years ended December 31, 2023, 2022, or 2021 based on the results of our goodwill and indefinite-lived intangible assets impairment testing.

We continuously monitor the performance of our definite-lived intangible assets, which includes software, customer relationships, patents, copyrights, and certain trademarks, and evaluate for impairment when evidence exists that certain events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Significant judgments and assumptions are required in such impairment evaluations. Definite-lived intangible assets are stated at cost, less accumulated amortization. Amortization is recorded using the straight-line method over the estimated lives of the assets.

We amortize our customer relationships on a straight-line basis over a useful life of 15 years. Amortization for patents, copyrights, and trademarks is provided using the straight-line method over the estimated useful asset lives, which are reviewed periodically and typically range from 7 to 25 years.

Internal-Use Software and Cloud Computing Arrangements

We capitalize direct costs of materials and services used in the development and purchase of internal-use software. Amounts capitalized are amortized on a straight-line basis over a period of 2 to 8 years and are reported as a component of ‘Intangible assets, net’ in the consolidated balance sheets.

We also capitalize certain costs incurred during the application development stage of implementation of internal-use software in cloud computing arrangements. Amounts capitalized are amortized on a straight-line basis over the expected length of the related contract and are reported as a component of ‘Other assets’ in the consolidated balance sheets.

Amortization of capitalized software used in warehouse- and distribution-related activities is included in ‘Cost of sales’ in the consolidated statements of operations. Amortization related to corporate and non-product, assets, such as our global information systems, is included in ‘Selling, general, and administrative expenses’ in the consolidated statements of operations.

Leases

Our lease portfolio consists primarily of real estate assets, which includes retail, warehouse, distribution center, and office spaces, under operating leases expiring at various dates through 2034. Leases with an original term of twelve months or less are not reported in the consolidated balance sheets; expense for these short-term leases is recognized on a straight-line basis over the lease term.

Many leases include one or more options to renew, with renewal terms that, if exercised by us, may extend the lease term. The exercise of these renewal options is at our discretion. When assessing the likelihood of a renewal or termination, we consider the significance of leasehold improvements, availability of alternative locations, and the cost of relocation or replacement, among other considerations. The depreciable lives of leasehold improvements are the shorter of the useful lives of the improvements or the expected lease term. We determine the lease term for each lease based on the terms of each contract and factor in renewal and early termination options if such options are reasonably certain to be exercised. We do not generally believe such options are reasonably certain, and therefore, we have excluded them from the recorded right-of-use assets and operating lease liabilities.

Due to our centralized treasury function, we utilize a portfolio approach to discount our lease obligations. We assess the expected lease term at lease inception and discount the lease using a fully-secured annual incremental borrowing rate, adjusted for time value corresponding with the expected lease term.
Certain of our retail store leases include rental payments based upon a percentage of retail sales in excess of a minimum fixed rental. In some cases, there is no fixed minimum rental, and the entire rental payment is based upon a percentage of sales. In addition, certain leases include rental payments adjusted periodically for changes in price level indices. We recognize expense for these types of payments as incurred and report them as variable lease expense. See Note 7 — Leases for additional information.

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 December 31, 2023 or 2022.

Our derivative instruments are recorded at fair value as a derivative asset or liability in the consolidated balance sheets within either ‘Prepaid expenses and other assets’ or ‘Accrued expenses and other liabilities’ at December 31, 2023 and 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 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 operating activities.’

As of December 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 consolidated statements of operations.

We also have cash flow hedges (“hedged derivatives”) as of December 31, 2023. We are exposed to fluctuations in various foreign currencies against our functional currency, the USD. 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 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 consolidated statement of operations, which is consistent with the nature of the hedged transaction.

See Note 9 — Derivative Financial Instruments for further information on derivative financial instruments.
Other Comprehensive Income

Our foreign subsidiaries use their foreign currency as their functional currency. Functional currency assets and liabilities are translated into USD using exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates during the period. Resulting translation gains and losses are reported in other comprehensive income (loss), until the substantial liquidation of a subsidiary, at which time accumulated translation gains or losses are reclassified into net income. During the year ended December 31, 2022, we recognized a net loss of $8.1 million of cumulative foreign currency translation adjustments related to the substantial liquidation of a foreign subsidiary.

Revenue Recognition

See Note 12 — Revenues for a summary of our revenue recognition policy.

Shipping and Handling Costs and Fees

Shipping and handling costs are expensed as incurred and are included in ‘Cost of sales’ in the consolidated statements of operations. Shipping and handling fees billed to customers are included in revenues.

Taxes Assessed by Governmental Authorities

Taxes assessed by governmental authorities that are directly imposed on a revenue transaction, including value added tax, are recorded on a net basis and are therefore excluded from revenues.

Cost of Sales

Our cost of sales includes costs incurred to design, produce, procure, and ship our footwear. These costs include our raw materials, both direct and indirect labor, shipping and handling including freight costs, utilities, maintenance costs, licensing fees, depreciation, amortization, packaging, and other warehouse and distribution overhead and costs.

Selling, General and Administrative Expenses

Selling, general and administrative expenses consist primarily of labor and outside services, rent expense, bad debt expense, legal costs, amortization of intangible assets, as well as certain depreciation costs related to corporate and non-product assets and share-based compensation. Selling, general and administrative expenses also include costs for our marketing and sales organizations, and other functions including finance, legal, human resources, and information technology.

Our selling, general and administrative expenses include media advertising (television, radio, print, social, digital), tactical advertising (signs, banners, point-of-sale materials) and promotional costs. Advertising production costs are expensed when the advertising is first run. Advertising communication costs are expensed in the periods that the communications occur. Certain of our promotional expenses result from payments under endorsement contracts. Endorsement-related expenses are recognized as performance is received over the term of each endorsement agreement.

Total marketing expenses, inclusive of advertising, production, promotion, and agency expenses, including variable marketing expenses, were $317.4 million, $260.8 million, and $172.7 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Research, Design and Development Expenses

We continue to dedicate resources to product design and development based on opportunities we identify in the marketplace. We incurred expenses of $21.4 million, $18.7 million, and $13.7 million in research, design, and development activities for the years ended December 31, 2023, 2022, and 2021, respectively, which are expensed as incurred and are reported in ‘Selling, general and administrative expenses’ in the consolidated statements of operations.

Share-Based Compensation

Restricted Stock Awards (“RSAs”) and Restricted Stock Units (“RSUs”)

We grant RSAs, service-condition RSUs, performance-condition RSUs, and market-condition RSUs. The grant date fair values of RSAs, service-condition RSUs, and performance-condition RSUs are based on the closing market price of our common stock
on the grant date; the grant date fair value and derived service period of market-condition RSUs are estimated using a Monte Carlo simulation valuation model. Our service-condition RSUs vest based on continued service; our performance-condition RSUs vest based on achievement of multiple weighted performance goals, certification of performance achievement by the Compensation Committee of the Board of Directors, and continued service; and our market-condition RSUs vest based on the market price of our stock and continued service. Compensation expense, net of forfeitures, is recognized on a straight-line basis over the requisite service period. For performance-condition RSUs, compensation expense is updated for our expected performance level against performance goals at the end of each reporting period, which involves judgment as to the achievement of certain performance metrics.

See Note 13 — Share-Based Compensation for additional information related to share-based compensation.

Impairment of Long-Lived Assets

Long-lived assets to be held and used are evaluated for impairment when events or circumstances indicate the carrying value of a long-lived asset or asset group is less than the undiscounted cash flows from its use and eventual disposition over its remaining economic life. We assess recoverability by comparing the sum of projected undiscounted cash flows from the use and eventual disposition over the remaining economic life of a long-lived asset or asset group to its carrying value, and record a loss from impairment if the carrying value is more than its undiscounted cash flows. For customer relationships, impairment testing is performed at the customer group level. For assets involved in our retail businesses, the asset group is at the retail store level. As retail store performance will vary in new and existing markets due to many factors, including maturity of the market and brand recognition, we periodically evaluate the fixed assets, leasehold improvements, and right-of-use assets related to our retail locations for impairment. For all other long-lived assets, we perform impairment testing at the asset group level for which separately identifiable cash flows are available. Assets or asset groups to be abandoned are written down to zero in the period it is determined they will no longer be used and are removed entirely from service. See Note 4 — Property and Equipment, Net, Note 5 — Goodwill and Intangible Assets, Net, and Note 7 — Leases for a discussion of impairment losses recorded during the periods presented.

Foreign Currency Gains (Losses), Net

Foreign currency gains (losses), net includes realized and unrealized foreign exchange gains and losses resulting from remeasurement and settlement of foreign-currency transactions denominated in a currency other than the functional currency of an entity and realized and unrealized gains and losses on forward foreign currency exchange derivative contracts that do not qualify for hedge accounting.

Other Income (Expense), Net

Other income (expense), net primarily includes gains and losses associated with activities not directly related to making and selling footwear.

Income Taxes

Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of other assets and liabilities. We provide for income taxes at the current and future enacted tax rates and laws applicable in each taxing jurisdiction. We account for the tax effects of global intangible low-taxed income (“GILTI”) as a component of income tax expense in the period the tax arises, to the extent applicable. We use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. We recognize interest and penalties related to income tax matters in income tax expense in the consolidated statements of operations. See Note 14 — Income Taxes for further discussion.

Earnings per Share

Basic and diluted earnings per common share (“EPS”) is presented using the treasury stock method. Diluted EPS reflects the potential dilution to common shareholders from securities that could share in our earnings and is calculated by adjusting weighted average outstanding shares, assuming conversion of all potentially dilutive stock options and awards. Anti-dilutive securities are excluded from diluted EPS. See Note 15 — Earnings per Share for additional information.
Fair Value

U.S. GAAP for fair value establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). We utilize a combination of market and income approaches to value derivative instruments. Our financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels of the hierarchy and the related inputs are as follows:
LevelInputs
1Unadjusted quoted prices in active markets for identical assets and liabilities.
2Unadjusted quoted prices in active markets for similar assets and liabilities;
Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or
Inputs other than quoted prices that are observable for the asset or liability.
3Unobservable inputs for the asset or liability.

We categorize fair value measurements within the fair value hierarchy based upon the lowest level of the most significant inputs used to determine fair value.

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. However, on a periodic basis or whenever events or changes in circumstances indicate that their carrying value may not be fully recoverable (and at least annually for goodwill and indefinite-lived intangible assets), non-financial instruments are assessed for impairment and, if applicable, written down to and recorded at fair value. See Note 8 — Fair Value Measurements for further discussion related to estimated fair value measurements.
v3.24.0.1
RECENT ACCOUNTING PRONOUNCEMENTS
 12 Months Ended
Dec. 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 are applicable to us. We are currently monitoring the impact of both the CHIPS and IRA but do 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. Additionally, we resumed our share repurchase program in July 2023. As such, we began recognizing an accrual for the new stock repurchase excise tax, which did not have a material impact on our consolidated financial position.

New Accounting Pronouncements 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 “Pillar Two Framework”). 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.

Income Taxes: Improvements to Income Tax Disclosure

In December 2023, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance related to the disclosure of rate reconciliation and income taxes paid. This guidance becomes effective for annual periods beginning after December 15, 2024 with early adoption permitted and should be applied on a prospective basis. We do not expect this standard to have a material impact on our consolidated financial statements, but it will require increased disclosures within the notes to our consolidated financial statements.
Segment Reporting: Improvements to Reportable Segment Disclosures

In November 2023, the FASB issued authoritative guidance related to the segment disclosures. This guidance becomes effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024, with early adoption permitted and should be applied on a retrospective basis. We do not expect this standard to have a material impact on our consolidated financial statements, but it will require increased disclosures within the notes to our consolidated financial statements.

New pronouncements issued but not effective until after December 31, 2023 are not expected to have a material impact on our consolidated financial statements.
v3.24.0.1
ACQUISITION OF HEYDUDE
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
ACQUISITION OF HEYDUDE ACQUISITION OF HEYDUDE
On February 17, 2022, (the “Acquisition Date”), 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 allows 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 (as defined below) and $50.0 million of borrowings under the Revolving Facility (as defined below). As a result of the Acquisition, HEYDUDE has become wholly owned by us.

Purchase Price Allocation

The Acquisition was accounted for in accordance with the ASC Topic 805 Business Combinations. As a result, we have 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, net68,698 
Inventories155,773 
Prepaid expenses and other assets (1)
7,880 
Intangible assets1,780,000 
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’ net assets represents goodwill. The goodwill amount of $710.0 million at December 31, 2023 includes an aggregate adjustment of $3.3 million recorded in the three months March 31, 2023 as a result of changes to preliminary valuation estimates. The total goodwill amount acquired was assigned to the HEYDUDE reporting segment. None of the goodwill will be deductible for income tax purposes. The purchase price allocation was finalized during the three months ended March 31, 2023.

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. As of December 31, 2023, a substantial portion of the Escrow Amount remained in the escrow account in connection with claims that were noticed prior to the date that was 18 months after the Acquisition Date but was not yet resolved by that date, as provided in the SPA. 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 consolidated statement of operations. During the year ended December 31, 2023, no Acquisition-related costs were recognized. During the year ended December 31, 2022, there were approximately $25.7 million of Acquisition-related costs recognized. These costs represent legal, professional, and transaction fees.

Unaudited Pro Forma Information

The following unaudited pro forma financial information for the year ended December 31, 2022 and 2021 combines the historical results of the Crocs and HEYDUDE Brands, 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.
Year Ended December 31,
20222021
(in thousands)
Revenues$3,645,291 $2,894,094 
Net income614,463 706,853 
v3.24.0.1
PROPERTY AND EQUIPMENT, NET
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET PROPERTY AND EQUIPMENT, NET
‘Property and equipment, net’ consists of the following:
 December 31,
 20232022
 (in thousands)
Machinery and equipment$163,919 $146,821 
Leasehold improvements149,132 76,363 
Furniture, fixtures, and other32,356 26,782 
Construction-in-progress13,418 28,699 
Property and equipment358,825 278,665 
Less: Accumulated depreciation and amortization(120,510)(97,136)
Property and equipment, net$238,315 $181,529 

Asset Retirement Obligations

We are contractually obligated, under certain of our lease agreements, to restore certain retail and office facilities back to their original condition. At lease inception, the estimated fair value of these liabilities is recorded along with a related asset. Asset retirement obligations were not significant to the consolidated balance sheets in the years ended December 31, 2023 or 2022.

Depreciation and Amortization Expense

Depreciation and amortization expense related to property and equipment, reported in ‘Cost of sales’ and ‘Selling, general and administrative expenses’ was:
Year Ended December 31,
202320222021
(in thousands)
Cost of sales$18,809 $10,043 $6,234 
Selling, general and administrative expenses12,876 9,599 8,708 
Total depreciation and amortization expense$31,685 $19,642 $14,942 
Disposals of Property and Equipment and Intangible Assets

During the years ended December 31, 2023, 2022, and 2021, we recognized net losses on disposals of property and equipment and intangible assets of $0.4 million, $1.0 million, and $0.3 million, respectively. Gains and losses on disposals of property and equipment and intangible assets are included in ‘Selling, general and administrative expenses’ in the consolidated statements of operations.

Additionally, we impaired our leasehold improvement assets for our former corporate headquarters in the year ended December 31, 2023, as described in Note 8 — Fair Value Measurements.
v3.24.0.1
GOODWILL AND INTANGIBLE ASSETS, NET
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS, NET GOODWILL AND INTANGIBLE ASSETS, NET
Goodwill

The changes in goodwill for the years ended December 31, 2023 and 2022 were:
Goodwill
(in thousands)
Balance at December 31, 2021
$1,600 
HEYDUDE Acquisition713,308 
Foreign currency translation (1)
(94)
Balance at December 31, 2022
714,814 
HEYDUDE valuation adjustment (2)
(3,274)
Foreign currency translation (1)
48 
Balance at December 31, 2023
$711,588 
(1) Foreign currency translation only relates to the goodwill in our Crocs Brand operating segment, as described below.
(2) We acquired HEYDUDE on February 17, 2022, and the purchase price allocation was finalized during the year ended December 31, 2023, resulting in a change to the goodwill balance. During the year ended December 31, 2023, there were valuation adjustments that resulted in a net decrease to goodwill of $3.3 million. Refer to Note 3 — Acquisition of HEYDUDE for additional details.

At December 31, 2023, accumulated goodwill impairment was $0.8 million.

Intangible Assets, Net

‘Intangible assets, net’ reported in the consolidated balance sheets consist of the following:
December 31, 2023December 31, 2022
GrossAccum. Amortiz.NetGrossAccum. Amortiz.Net
(in thousands)
Intangible assets subject to amortization:
Capitalized software$136,343 $(108,675)$27,668 $132,295 $(109,227)$23,068 
Customer relationships210,000 (26,250)183,750 210,000 (12,250)197,750 
Patents, copyrights, and trademarks5,055 (3,686)1,369 5,124 (3,537)1,587 
Intangible assets not subject to amortization:
HEYDUDE trademark1,570,000 — 1,570,000 1,570,000 — 1,570,000 
In progress8,562 — 8,562 7,537 — 7,537 
Other1,213 — 1,213 225 — 225 
Total$1,931,173 $(138,611)$1,792,562 $1,925,181 $(125,014)$1,800,167 

At December 31, 2023, the weighted average remaining useful life of intangibles subject to amortization was approximately 13.6 years.
Amortization Expense

Amortization expense related to definite-lived intangible assets, reported in ‘Cost of sales’ and ‘Selling, general and administrative expenses’ was:
Year Ended December 31,
202320222021
(in thousands)
Cost of sales$3,080 $2,366 $4,779 
Selling, general and administrative expenses19,539 17,221 12,255 
Total amortization expense$22,619 $19,587 $17,034 

Estimated future annual amortization expense of intangible assets is:
As of
December 31, 2023

(in thousands)
2024$22,778 
202521,582 
202620,073 
202718,080 
202816,060 
Thereafter114,214 
Total$212,787 
v3.24.0.1
ACCRUED EXPENSES AND OTHER LIABILITIES
 12 Months Ended
Dec. 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 consolidated balance sheets were:
December 31,
20232022
 (in thousands)
Professional services$80,986 $45,351 
Accrued compensation and benefits70,245 55,474 
Return liabilities38,644 27,651 
Sales/use and value added taxes payable23,768 27,249 
Fulfillment, freight, and duties22,269 41,646 
Royalties payable and deferred revenue15,053 10,528 
Accrued rent and occupancy8,246 8,972 
Accrued legal fees (1)
2,546 2,602 
Other (1)
24,014 19,951 
Total accrued expenses and other liabilities$285,771 $239,424 
(1) Amounts as of December 31, 2022 have been reclassified to conform to current period presentation.
v3.24.0.1
LEASES
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
LEASES LEASES
Right-of-Use Assets and Operating Lease Liabilities

Amounts reported in the consolidated balance sheets were:
December 31,
20232022
(in thousands)
Assets:
Right-of-use assets$287,440 $239,905 
Liabilities:
Current operating lease liabilities$62,267 $57,456 
Long-term operating lease liabilities269,769 215,119 
Total operating lease liabilities$332,036 $272,575 

Lease Costs and Other Information

Lease-related costs reported within ‘Cost of sales’ and ‘Selling, general and administrative expenses’ were:
Year Ended December 31,
20232022
(in thousands)
Operating lease cost $79,543 $66,012 
Short-term lease cost13,258 9,590 
Variable lease cost44,706 37,536 
Total lease costs$137,507 $113,138 

The weighted average remaining lease term and discount rate related to our lease liabilities as of December 31, 2023 were 7.1 years and 5.5%, respectively. As of December 31, 2022, the weighted average remaining lease term and discount rate related to our lease liabilities were 6.9 years and 3.9%, respectively.

We also impaired our right-of-use asset for our former corporate headquarters, as described in Note 8 — Fair Value Measurements.

Maturities

The maturities of our operating lease liabilities were:
As of
December 31, 2023
(in thousands)
2024$71,524 
202562,169 
202651,131 
202745,008 
202836,156 
Thereafter139,898 
Total future minimum lease payments405,886 
Less: imputed interest(73,850)
Total operating lease liabilities$332,036 
v3.24.0.1
FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
 
Recurring Fair Value Measurements

The financial assets and liabilities that are measured and recorded at fair value on a recurring basis consist of our derivative instruments. Our derivative instruments are forward foreign currency exchange contracts. We manage credit risk of our derivative instruments on the basis of our net exposure with our counterparty. All of our derivative instruments are classified as Level 2 of the fair value hierarchy and are reported in the consolidated balance sheets within either ‘Prepaid expenses and other assets’ or ‘Accrued expenses and other liabilities’ at December 31, 2023 and 2022, netted by counterparty. The fair values of our derivative instruments were an insignificant asset and an insignificant liability at December 31, 2023 and an insignificant asset and an insignificant liability at December 31, 2022. See Note 9 — 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 consolidated balance sheets, which may differ from their respective fair values. During the year ended December 31, 2022, we entered into a credit agreement for an aggregate term loan B facility in the principal amount of $2.0 billion (the “Term Loan B Facility”), as described in more detail in Note 10 — Borrowings. The Term Loan B Facility is classified as Level 1 of the fair value hierarchy. The Notes (as defined below) are also classified as Level 1 of the fair value hierarchy and are reported in our 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 December 31, 2023 and 2022 based on interest rates currently available to us for similar borrowings. The carrying values and fair values of our borrowing instruments as of December 31, 2023 and 2022 were:
December 31, 2023December 31, 2022
Carrying ValueFair
Value		Carrying ValueFair
Value
(in thousands)
Term Loan B Facility$820,000 $824,100 $1,675,000 $1,642,547 
2029 Notes350,000 313,987 350,000 297,596 
2031 Notes350,000 296,742 350,000 284,240 
Revolving Facility190,000 190,000 — — 

Non-Financial Assets and Liabilities

Our non-financial assets, which primarily consist of property and equipment, right-of-use assets, goodwill, trademarks, customer relationships, 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 were determined 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. We recorded impairments as follows:
Year Ended December 31,
 202320222021
 (in thousands)
Leasehold improvement assets impairment (1)
$1,007 $— $— 
Right-of-use assets impairment (1)
8,280 — — 
Total asset impairments$9,287 $— $— 
(1) During the year ended December 31, 2023, we recognized an impairment of $9.3 million for our former corporate headquarters in Broomfield, Colorado.
v3.24.0.1
DERIVATIVE FINANCIAL INSTRUMENTS
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS
As of December 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, and cash flow hedges (“hedged derivatives”), which are used 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. During the year ended December 31, 2023 and December 31, 2022, there was a loss of $0.8 million and $0.5 million, respectively, 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 less than $0.1 million will be reclassified to the consolidated statement of operations.

The fair values of derivative assets and liabilities, net, all of which are classified as Level 2, are reported within either ‘Prepaid expenses and other assets’ or ‘Accrued expenses and other liabilities’ in the consolidated balance sheets and were:
December 31, 2023December 31, 2022
Derivative AssetsDerivative LiabilitiesDerivative AssetsDerivative Liabilities
(in thousands)
Non-hedged derivatives:
Forward foreign currency exchange contracts$2,850 $(1,333)$345 $(360)
Hedged derivatives:
Cash flow foreign currency contracts142 (229)348 (1,116)
Total derivatives2,992 (1,562)693 (1,476)
Netting of counterparty contracts(1,547)1,547 (345)345 
Total derivatives, net of counterparty contracts$1,445 $(15)$348 $(1,131)

The notional amounts of outstanding forward foreign currency exchange contracts shown below report the total U.S. Dollar equivalent position and the net contract fair values for each foreign currency position.
December 31, 2023December 31, 2022
NotionalFair ValueNotionalFair Value
(in thousands)
Non-hedged derivatives:
Singapore Dollar $41,441 $1,507 $26,760 $207 
Euro30,757 1,343 5,068 (29)
British Pound Sterling17,662 (835)14,509 128 
South Korean Won9,759 (428)18,403 (320)
Indian Rupee5,291 (23)24,945 (10)
Japanese Yen969 (47)8,953 9 
Total non-hedged derivatives105,879 1,517 98,638 (15)
Hedged derivatives:
 Euro 40,014 (186)51,914 (360)
 British Pound Sterling 22,320 135 23,025 235 
 South Korean Won 11,093 (42)12,285 (756)
 Indian Rupee 5,703 6 7,203 113 
Total hedged derivatives79,130 (87)94,427 (768)
Total derivatives$185,009 $1,430 $193,065 $(783)
Latest maturity date, non-hedged derivativesJanuary 2024April 2023
Latest maturity date, hedged derivativesDecember 2024June 2023
Amounts reported in ‘Foreign currency gains (losses), net’ in the consolidated statements of operations include both realized and unrealized gains (losses) from foreign currency transactions and derivative contracts and were as follows:
Year Ended December 31,
 202320222021
 (in thousands)
Foreign currency transaction gains (losses)
$(1,992)$(2,858)$100 
Foreign currency forward exchange contracts gains (losses)
752 6,086 (240)
Foreign currency gains (losses), net
$(1,240)$3,228 $(140)
v3.24.0.1
BORROWINGS
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
BORROWINGS BORROWINGS
 
Our long-term borrowings were as follows:
Stated Interest RateEffective Interest RateDecember 31,
Maturity20232022
(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 Facility2029820,000 1,675,000 
Revolving Facility190,000 — 
Total face value of long-term borrowings1,710,000 2,375,000 
Less:
Unamortized issuance costs49,004 56,973 
Current portion of long-term borrowings (1)
20,000 20,000 
Total long-term borrowings$1,640,996 $2,298,027 
(1) Represents the current portion of the borrowings on the Term Loan B facility.

At December 31, 2023 and 2022, $10.7 million and $10.8 million, respectively, of accrued interest related to our borrowings was reported in ‘Accounts payable’ in the 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 ended 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 December 31, 2023, we were in compliance with all financial covenants under the Credit Agreement.
As of December 31, 2023, the total commitments available from the lenders under the Revolving Facility were $750.0 million. At December 31, 2023, we had $190.0 million 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 December 31, 2023 and 2022, we had $558.7 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 “Original 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, which was amended on August 8, 2023 (the “August 2023 Amendment”) (the Original Term Loan B Credit Agreement, as amended by the Amendment, the “Existing Term Loan B Credit Agreement”).

The Original Term Loan B Credit Agreement provided for an aggregate term loan B facility in the principal amount of $2.0 billion. Among other things, the August 2023 Amendment provided for a new $1.18 billion tranche of term loans (the “2023 Refinancing Term Loans” and, such facility, 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 Existing 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.

Pursuant to the reduced interest rate margins applicable to the 2023 Refinancing Term Loans, each term loan borrowing which was an alternate base rate borrowing bore interest at a rate per annum equal to the Alternate Base Rate (as defined in the Term Loan B Credit Agreement), plus 2.00%. Each term loan borrowing which was a term SOFR borrowing bore interest at a rate per annum equal to the Adjusted Term SOFR Rate (as defined in the Existing Term Loan B Credit Agreement) plus 3.00%.

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 December 31, 2023, we had $820.0 million in outstanding principal and the Term Loan B Facility was fully drawn with no remaining borrowing capacity.

The Existing 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 December 31, 2023, we were in compliance with all financial covenants under the Existing Term Loan B Credit Agreement.

Subsequently, on February 13, 2024, the Company, the subsidiary guarantors party thereto and Citibank, N.A., as administrative agent (the “Administrative Agent”), entered into a Refinancing Amendment (the “February 2024 Amendment”) to the Existing Term Loan B Credit Agreement (as amended by the February 2024 Amendment, the “Term Loan B Credit Agreement”). Among other things, the February 2024 Amendment (i) provides for a new $820.0 million tranche of term loans maturing in 2029 (the “2024 Refinancing Term Loans”) and (ii) reduces the interest rate margins applicable to the approximately $820.0 million outstanding under the term loan B facility such that each term loan borrowing which is (1) an alternate base rate borrowing will bear interest at a rate per annum equal to the Alternate Base Rate (as defined in the Term Loan B Credit Agreement), plus 1.25%, and (2) a term SOFR borrowing will bear interest at a rate per annum equal to (a) the Adjusted Term SOFR Rate (as defined in the Term Loan B Credit Agreement), plus (b) 2.25%. The 2024 Refinancing Term Loans replaced and refinanced all outstanding term loans under the Existing Term Loan B Credit Agreement.

Asia Revolving Credit Facilities

During the year ended December 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 at current exchange rates as of January 2023, and the revolving credit facility with Citibank (China) Company Limited, Shanghai Branch (the “Citibank Facility”), which provides up to an equivalent of $15.0 million. For RMB loans under the CMBC Facility, interest was based on a National Interbank Funding Center 1-year prime rate, plus 65 basis points. For USD loans under the Citibank Facility, interest is mutually agreed upon prior to utilization of a loan.
As of December 31, 2023, we had borrowings outstanding of $3.3 million on the Citibank Facility, which became due in January 2024. 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 December 31, 2023, we were in compliance with all financial covenants under the Notes.
v3.24.0.1
EQUITY
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
EQUITY EQUITY
Common Stock

We have one class of common stock with a par value of $0.001 per share. There are 250.0 million shares of common stock authorized for issuance. Holders of common stock are entitled to one vote per share on all matters presented to common stockholders.
Common Stock Repurchase Program

On April 23, 2021, the Board approved and authorized a program to repurchase up to $1.0 billion of our common stock. Additionally, on September 23, 2021, the Board approved an increase of $1.0 billion to our share repurchase authorization. The number, price, structure, and timing of the repurchases are at our sole discretion and may be made depending on market conditions, liquidity needs, restrictions under the agreements governing our indebtedness, and other factors. The Board of Directors may suspend, modify, or terminate the program at any time without prior notice. Share repurchases may be made in the open market or in privately negotiated transactions. The repurchase authorization does not have an expiration date and does not obligate us to acquire any amount of our common stock. Under Delaware state law, these shares are not retired, and we have the right to resell any of the shares repurchased.

During the year ended December 31, 2023 we repurchased 1.7 million shares of our common stock at a cost of $175.0 million, including commissions. As of December 31, 2023, we also recorded an accrual for the stock repurchase excise tax of $1.3 million, which is reported in ‘Accrued expenses and other liabilities’ and ‘Treasury stock’ in our consolidated balance sheet. During the year ended December 31, 2022, we did not repurchase any shares of our common stock.

As of December 31, 2023, we had remaining authorization to repurchase approximately $875.0 million of our common stock, subject to restrictions under our Indentures, Credit Agreement, and Term Loan B Credit Agreement.

Preferred Stock

We have authorized and available for issuance 5.0 million shares of preferred stock. Of these preferred shares, 1.0 million were authorized as Series A Convertible Preferred Stock with a par value of $0.001 per share and none were issued and outstanding as of December 31, 2023.
v3.24.0.1
REVENUES
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Revenues by reportable operating segment and by channel were:

Year Ended December 31,
202320222021
Crocs Brand:
North America:
Wholesale$652,943 $644,215 $674,230 
Direct-to-consumer1,124,942 1,000,441 879,748 
Total North America (1)
1,777,885 1,644,656 1,553,978 
International:
Wholesale840,594 733,087 499,851 
Direct-to-consumer394,475 281,382 259,587 
Total International1,235,069 1,014,469 759,438 
Total Crocs Brand$3,012,954 $2,659,125 $2,313,416 
Crocs Brand:
Total Wholesale$1,493,537 $1,377,302 $1,174,081 
Total Direct-to-consumer1,519,417 1,281,823 1,139,335 
Total Crocs Brand3,012,954 2,659,125 2,313,416 
HEYDUDE Brand:
Wholesale566,937 574,140 — 
Direct-to-consumer382,456 321,720 — 
Total HEYDUDE Brand (2)
949,393 895,860 — 
Total consolidated revenues$3,962,347 $3,554,985 $2,313,416 
(1) North America includes the United States and Canada.
(2) We acquired HEYDUDE on February 17, 2022 and, as a result, added the HEYDUDE Brand as a new reportable operating segment. Therefore, the amounts shown above for the year ended December 31, 2022 represent results during the Partial Period, and there are no comparative amounts for the year ended December 31, 2021. The vast majority of HEYDUDE Brand revenues are derived from North America.

Revenues are recognized in the amount expected to be received in exchange for when control of the products transfers to customers and excludes various forms of promotions, which range from contractually-fixed percentage price reductions to sales returns, discounts, rebates, and other incentives that may vary in amount, must be estimated, and are reported as a reduction in revenues. Variable amounts are estimated based on an analysis of historical experience and adjusted as better estimates become available. During the years ended December 31, 2023, 2022, and 2021, we recognized no changes to estimates for wholesale or direct-to-consumer revenues.

We have also elected to expense incremental costs to obtain customer contracts, consisting primarily of commission incentives, when incurred because the related amortization period is short-term. These costs are reported within ‘Selling, general and administrative expenses’ in our consolidated statements of operations.

The following is a description of our principal revenue-generating activities by distribution channel. We have two reportable operating segments and sell our products using two primary distribution channels. For more detailed information about reportable operating segments, see Note 17 — Operating Segments and Geographic Information.

Wholesale Channel

For the majority of wholesale customers, control transfers and revenues are recognized when the product is shipped or delivered from a manufacturing facility or distribution center to the wholesale customer. In certain cases, control of the product transfers and revenues are recognized when the customer receives the product at the designated delivery point. For certain customers, primarily in international markets, cash payment is required in advance of delivery and revenues are recognized upon the
transfer of control to the customer. We may accept returns from our wholesale customers, on an exception basis, to ensure that our products are merchandised in the proper assortments and may provide markdown allowances at our sole discretion to key wholesalers and distributors to facilitate sales of slower moving products. Wholesale revenues are reduced by estimates of returns and allowances based on historical experience, and adjustments to our estimates are made when the most likely amount of consideration we expect to receive changes.

We have arrangements that grant certain wholesale customers exclusive licenses, concurrent with the terms of the related distribution agreements, to use our intellectual property in exchange for a sales-based royalty. Sales-based royalty revenues are recognized over the terms of the related license agreements as sales are made by the wholesalers.

Direct-to-Consumer Channel

Direct-to-consumer revenues consist of sales generated through our company-operated retail stores and company-operated e-commerce websites and third-party e-commerce marketplaces. We transfer control of products and recognize revenues at company-operated retail stores at the point of sale, in exchange for cash or other payment. For sales made through company-operated e-commerce websites and third-party e-commerce marketplaces, we transfer control and recognize revenues when the product is shipped from the distribution centers, the point at which payment, primarily through debit and credit card and other e-payment methods, is made. A portion of the transaction price charged to our customers is variable, primarily due to promotional discounts or allowances. When recognizing revenues, the amount of revenues associated with expected sales returns is estimated based on historical experience, and adjustments to our estimates are made when the most likely amount of consideration we expect to receive changes.

Contract Liabilities

Contract liabilities consist of advance cash deposits received from wholesale customers to secure product orders in connection with selling seasons and payments received in advance of delivery. As products are shipped and control transfers, we recognize the deferred revenue in ‘Revenues’ in the consolidated statements of operations. At December 31, 2023 and 2022, we recorded an insignificant amount and $6.8 million, respectively, of deferred revenues associated with advance customer deposits in ‘Accrued expenses and other liabilities’ in the consolidated balance sheets.

Refund Liabilities

Refund liabilities, primarily associated with product sales returns, retrospective volume rebates, and early payment discounts are estimated based on an analysis of historical experience, and adjustments to revenues made when the most likely amount of consideration expected changes. At December 31, 2023 and 2022, $38.6 million and $27.7 million, respectively, of refund liabilities, primarily associated with product returns, were reported in ‘Accrued expenses and other liabilities’ in the consolidated balance sheets.
v3.24.0.1
SHARE-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION
Our share-based compensation awards are issued under the 2020 Equity Incentive Plan (“2020 Plan”) and predecessor plan, the 2015 Equity Incentive Plan (“2015 Plan”). Any awards that expire or are forfeited under the 2015 Plan become available for issuance under the 2020 Plan. We account for forfeitures as they occur when calculating share-based compensation expense. The aforementioned plans provide for the issuance of previously unissued common stock in connection with the exercise of stock options and conversion of other share-based awards. As of December 31, 2023, 3.6 million shares of common stock remained available for future issuance under all plans, subject to adjustment for future stock splits, stock dividends, and similar changes in capitalization.

The majority of share-based compensation expense is reported in our consolidated statements of operations as ‘Selling, general and administrative expenses’ with an insignificant amount recorded within ‘Cost of sales.’
Stock Option Activity

Stock option activity during the year ended December 31, 2023 was:
Number of OptionsWeighted Average Exercise PriceWeighted Average Contractual Life (Years)Aggregate Intrinsic Value
(in thousands, except exercise price and years)
Outstanding as of December 31, 2022
210 $7.44 4.28$21,208 
Granted— — 
Exercised— — 
Forfeited or expired— — 
Outstanding as of December 31, 2023
210 $7.44 3.28$18,053 
Exercisable at December 31, 2023
210 $7.44 3.28$18,053 
Vested at December 31, 2023
210 $7.44 3.28$18,053 

No stock options were granted during 2023, 2022, or 2021. No stock options were exercised during 2023. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2022 and 2021 was $0.4 million and $0.8 million, respectively. During the years ended December 31, 2022 and 2021, we received $0.1 million, and $0.2 million cash, respectively, in connection with the exercise of stock options. As of December 31, 2023, we did not have any unrecognized share-based compensation expense related to unvested options.

Stock options under our equity incentive plans generally vest ratably over four years with the first vesting occurring one year from the date of grant, followed by monthly vesting for the remaining three years, and expire ten years after the date of grant.

Restricted Stock Awards and Restricted Stock Units Activity

From time to time, we grant RSAs and RSUs. RSAs and RSUs generally vest over three years, depending on the terms of the grant. Holders of unvested RSAs have the same rights as those of common stockholders including voting rights and non-forfeitable dividend rights. However, ownership of unvested RSAs cannot be transferred until vested. Holders of unvested RSUs have a contractual right to receive shares of common stock upon vesting. RSUs have dividend equivalent rights, which accrue over the term of the award and are paid if and when the RSUs vest, but RSU holders have no voting rights. We grant service-condition RSUs, performance-condition RSUs, and market-condition RSUs.

Service-condition RSUs are typically granted on an annual basis and vest over time in three equal annual installments, beginning one year after the grant date. During each of the years ended December 31, 2023, 2022, and 2021, we granted 0.2 million service-condition RSUs.

Performance-condition RSUs are typically granted on an annual basis and consist of a performance-based and service-based component. The performance targets and vesting conditions for performance-condition RSUs are based on achievement of multiple weighted performance goals. The number of performance-condition RSUs ultimately awarded may be between 0% and 200%, based on performance. These RSUs vest in three equal annual installments beginning one year after the grant date, pending certification of performance achievement by the Compensation Committee of our Board of Directors and continued service. The fair value of performance-condition awards is based on the closing market price of our common stock on the grant date. Compensation expense, net of forfeitures, is updated for our probable expected performance level against performance goals at the end of each reporting period. We also periodically grant market-condition RSUs to certain executives. The grant date fair value and derived service period for market-condition RSUs are estimated using a Monte Carlo simulation model. During the years ended December 31, 2023, 2022, and 2021, we granted 0.2 million, 0.3 million, and 0.5 million performance- and market-condition RSUs, respectively.
RSA and RSU activity during the year ended December 31, 2023 was:
Restricted Stock AwardsRestricted Stock Units
SharesWeighted Average Grant Date Fair ValueSharesWeighted Average Grant Date Fair Value
(in thousands, except fair value data)
Unvested at December 31, 2022
5 $51.13 1,181 $62.93 
Granted4 105.95 440 122.97 
Vested(7)69.62 (558)55.68 
Forfeited— — (216)83.58 
Unvested at December 31, 2023
2 $105.95 847 $94.05 

The weighted average grant date fair value of RSAs granted during the years ended December 31, 2023, 2022, and 2021 was $105.95, $51.13, and $88.68 per share, respectively. RSAs vested during the years ended December 31, 2023, 2022, and 2021 consisted entirely of service-condition awards. The total grant date fair value of RSAs vested in the years ended December 31, 2023, 2022, and 2021 was $0.5 million, $0.3 million and $0.4 million, respectively.

As of December 31, 2023, unrecognized share-based compensation expense for RSAs was $0.2 million, which is expected to amortize over a remaining weighted average period of 0.5 years.

The weighted average grant date fair value of RSUs granted during the years ended December 31, 2023, 2022, and 2021 was $122.97, $76.06, and $76.28 per share, respectively. RSUs vested during the year ended December 31, 2023 consisted of 0.3 million service-condition awards and 0.3 million performance- and market-condition awards. RSUs vested during the year ended December 31, 2022 consisted of 0.3 million service-condition awards and 0.4 million performance- and market-condition awards. RSUs vested during the year ended December 31, 2021 consisted of 0.4 million service-condition awards and 0.5 million performance- and market-condition awards. The total grant date fair value of RSUs vested during the years ended December 31, 2023, 2022, and 2021 was $31.1 million, $29.7 million and $24.9 million, respectively.

As of December 31, 2023, unrecognized share-based compensation expenses for service-condition RSUs were $24.7 million and for performance- and market-condition RSUs were $8.9 million, and are expected to amortize over remaining weighted average periods of 1.7 years and 1.5 years, respectively.
v3.24.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
During the three months ended December 31, 2023, we completed intra-entity transfers of certain intellectual property rights primarily to align with current and future international operations. Each transfer resulted in a step-up in tax basis of intellectual property rights and a correlated increase in foreign deferred tax assets based on the fair value of the transferred intellectual property rights. Foreign deferred tax assets increased by $611.4 million, inclusive of the reversal of certain deferred tax liabilities. This benefit was offset by an increase in uncertain tax positions of $318.6 million, and an incremental valuation allowance of $164.0 million for amounts not more-likely-than-not to be realized based on available objective evidence. As such, a net change in deferred tax asset of $128.9 million was recognized along with a corresponding foreign income tax benefit.

During 2020 and 2021, we completed an intra-entity transfer of certain intellectual property rights primarily to align with current and future international operations. The transaction was executed using transfer pricing guidelines issued by the relevant taxing authorities. Significant estimates and assumptions were required to compute the valuation of this transaction. These estimates and assumptions include, but are not limited to, estimated future revenue growth and discount rates, which by their nature are inherently uncertain, and, therefore, may ultimately differ materially from our actual results.

We have recorded certain tax reserves to address potential differences involving our income tax positions. These potential tax liabilities result from the varying application of statutes, rules, regulations and interpretations by different taxing jurisdictions. While our tax position is not uncertain, because of the significant estimates used in the value of certain intellectual property rights, our tax reserves contain assumptions based on past experiences and judgments about the interpretation of statutes, rules and regulations by taxing jurisdictions. It is possible that the costs of the ultimate tax liability or benefit from these matters may be materially more or less than the amount that we estimated.
In order to support and sustain the amortizable tax basis for these transactions (and associated deferred tax asset, net of uncertain tax position), we must demonstrate economic ownership, including the appropriate authority and expertise to manage the IP owned and serviced in the Netherlands and Singapore. The determination of economic substance is a judgment that has to be evaluated by management on a continual basis requiring understanding and expertise of local laws of each associated tax jurisdiction. The Netherlands and Singapore subsidiaries serve as the primary corporate headquarters outside of the U.S. and already perform significant functions in support of the economic ownership of the IP. In 2023, we undertook many additional activities to align business operations that support the economic substance of the IP.

The following table sets forth income before taxes and the expense for income taxes:
 Year Ended December 31,
 202320222021
 (in thousands)
Income before taxes:   
U.S. $309,098 $312,501 $510,706 
Foreign567,174 406,007 153,143 
Total income before taxes$876,272 $718,508 $663,849 
Income tax expense (benefit):   
Current income taxes:   
U.S. federal$85,075 $76,092 $94,548 
U.S. state21,884 19,257 28,460 
Foreign387,066 87,760 56,430 
Total current income taxes494,025 183,109 179,438 
Deferred income taxes:   
U.S. federal(12,873)(12,032)791 
U.S. state(1,662)861 32 
Foreign(395,784)6,411 (242,106)
Total deferred income taxes(410,319)(4,760)(241,283)
Total income tax expense (benefit)
$83,706 $178,349 $(61,845)

The following table sets forth income reconciliations of the statutory federal income tax rate to actual rates based on income or loss before income taxes:
 Year Ended December 31,
 202320222021
 (in thousands)
Income tax expense and rate attributable to:
Federal income tax rate$184,017 21.0 %$150,887 21.0 %$139,408 21.0 %
State income tax rate, net of federal benefit
16,854 1.9 %15,981 2.2 %22,952 3.5 %
Foreign income tax rate differential31,495 3.6 %12,405 1.7 %18,890 2.8 %
GILTI, net44,003 5.0 %4,834 0.7 %14,157 2.1 %
Non-deductible / non-taxable items(1,129)(0.1)%3,743 0.5 %9,637 1.5 %
Change in valuation allowance156,312 17.8 %4,414 0.6 %(192,337)(29.0)%
U.S. tax on foreign earnings1,752 0.2 %16,822 2.3 %— — %
Foreign tax credits(55,648)(6.4)%(28,087)(3.9)%(19,925)(3.0)%
Research and development credits(6,754)(0.8)%(5,488)(0.8)%(13,104)(2.0)%
Uncertain tax positions330,819 37.8 %3,952 0.6 %21,341 3.2 %
Share-based compensation(2,097)(0.2)%(1,231)(0.2)%(11,930)(1.8)%
Intra-Entity IP Transfer(611,403)(69.8)%— — %(41,858)(6.3)%
Enacted changes in tax law— — %— — %(9,554)(1.4)%
Other(4,515)(0.4)%117 0.1 %478 0.1 %
Effective income tax expense and rate$83,706 9.6 %$178,349 24.8 %$(61,845)(9.3)%
Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table sets forth deferred income tax assets and liabilities as of the date shown:
 December 31,
 20232022
 (in thousands)
Non-current deferred tax assets:  
Share-based compensation expense$3,248 $3,130 
Accruals, reserves, and other expenses27,914 24,324 
Net operating loss47,951 21,455 
Intangible assets737,976 438,712 
Foreign tax credit28,053 45,746 
Operating lease liabilities71,012 55,624 
Other43,661 25,354 
Valuation allowance(183,545)(28,118)
Total non-current deferred tax assets$776,270 $586,227 
Non-current deferred tax liabilities:  
Unrealized gain on foreign currency$— $(1,760)
Property and equipment(13,948)(2,381)
Right-of-use assets(59,806)(47,641)
Intangible assets(46,177)(307,474)
Other(1,280)(723)
Total non-current deferred tax liabilities$(121,211)$(359,979)

The intra-entity transfers of intellectual property rights resulted in an increase in the intangible assets deferred tax asset of $352.4 million and an increase in the valuation allowance of $163.9 million. The intra-entity transfers of intellectual property rights resulted in a decrease in the intangible asset deferred tax liability of $259.0 million.

During 2023, valuation allowances recorded against deferred tax assets increased by $155.4 million. The change in the valuation allowance includes an increase of $156.3 million related to income tax expense and a decrease of $0.9 million that does not impact the tax provision because this amount reflects the cumulative impact of unrecorded tax attributes related to changes in cumulative translation adjustments. During 2022, valuation allowances increased by $1.7 million. The change in the valuation allowance includes $4.4 million related to income tax benefit and $2.8 million that does not impact the tax provision because this amount reflects the impact of unrecorded tax attributes related to changes in cumulative translation adjustments. 

Our valuation allowances are primarily the result of uncertainties regarding the future realization of tax attributes recorded in various jurisdictions. The measurement of deferred tax assets is reduced by a valuation allowance if, based upon available evidence, it is more likely than not the deferred tax assets will not be realized. We have evaluated the realizability of our deferred tax assets in each jurisdiction by assessing the adequacy of expected taxable income, including the reversal of existing temporary differences, historical and projected operating results and the availability of prudent and feasible tax planning strategies. In assessing our valuation allowance we considered all available evidence, including the magnitude of recent and current operating results, the duration of statutory carryforward periods, our historical experience utilizing tax attributes prior to their expiration dates, the historical volatility of operating results of these jurisdictions and our assessment regarding the sustainability of their profitability. The weight we give to any particular item is, in part, dependent upon the degree to which it can be objectively verified. Separate from the intra-entity transfers of intellectual property rights the company released immaterial valuation allowances in various jurisdictions. Valuation allowances recorded against deferred tax assets increased by a net $155.4 million.

In certain other jurisdictions, we recorded additional attributes, primarily driven by operational losses recognized based on local tax accounting requirements. These carryforwards were generated in jurisdictions where results indicate it is not more likely than not the deferred tax assets would be realized. We maintain a valuation allowance against the majority of these balances.
We have included in the table above deferred tax assets related to U.S. federal tax carryforwards of foreign tax credits and various state tax credits which expire starting in 2030 of $3.8 million and $0 million at December 31, 2023 and 2022, respectively. We have included in the table above deferred tax assets related to U.S. state tax net operating loss carryforwards, some of which expire at various dates beginning in 2034 and others of which do not expire, of $0.3 million and $1.4 million at December 31, 2023 and 2022, respectively. We have recorded deferred tax assets related to foreign tax carryforwards, including foreign tax credits and net operating losses, which expire starting in 2024 and those which do not expire of $73.3 million and $66.4 million as of December 31, 2023 and 2022, respectively.

The transition tax in the Tax Act imposed a tax on undistributed and previously untaxed foreign earnings at various tax rates. This tax largely eliminated the differences between the financial reporting and income tax basis of foreign undistributed earnings. Furthermore, as of December 31, 2023, foreign withholding taxes have not been provided on unremitted earnings of subsidiaries operating outside of the U.S. as these amounts are considered to be indefinitely reinvested.

The following table sets forth a reconciliation of the beginning and ending amount of unrecognized tax benefits:
 Year Ended December 31,
 202320222021
 (in thousands)
Unrecognized tax benefit as of January 1$219,363 $218,399 $206,209 
Additions in tax positions taken in prior period3,690 1,697 6,169 
Reductions in tax positions taken in prior period(7)(904)(963)
Additions in tax positions taken in current period325,058 2,948 23,061 
Settlements— (375)(763)
Lapse of statute of limitations(148)(510)(342)
Current year acquisitions— 10,426 — 
Cumulative foreign currency translation adjustment8,526 (12,318)(14,972)
Unrecognized tax benefit as of December 31$556,482 $219,363 $218,399 

We recorded a net expense of $330.8 million related to increases in 2023 unrecognized tax benefits. The intra-entity transfers of intellectual property rights resulted in an increase in unrecognized tax benefits of $318.6 million. The primary impact of uncertain tax benefits on the rate reconciliation includes net increases in position changes and accrued interest expense.

Any settlements or statute of limitations expirations could result in a significant decrease in our uncertain tax positions. Our assessments are based on estimates and assumptions using the best available information to management. However, our estimates of unrecognized tax benefits and potential tax benefits may not be representative of actual outcomes, and any variation from such estimates could materially affect our financial statements in the period of settlement or when the statutes of limitations expire. Finalizing audits with the relevant taxing authorities can include formal administrative and legal proceedings, and, as a result, it is difficult to estimate the timing and range of possible change related to our uncertain tax positions, and such changes could be significant.

Interest and penalties related to income tax liabilities are included in ‘Income tax expense (benefit)’ in the consolidated statements of operations. For the years ended December 31, 2023, 2022, and 2021, we recorded approximately $3.2 million, $3.8 million, and $1.0 million, respectively, of penalties and interest. During the year ended December 31, 2023, we released $0.1 million of interest from settlements, lapse of statutes, and change in certainty. The cumulative accrued balance of penalties and interest was $8.8 million, $5.6 million, and $2.0 million, as of December 31, 2023, 2022, and 2021, respectively.

Unrecognized tax benefits of $562.0 million, $222.5 million, and $218.7 million as of December 31, 2023, 2022, and 2021, respectively, if recognized, would reduce the annual effective tax rate offset by deferred tax assets recorded for uncertain tax positions.
The following table sets forth the tax years subject to examination for the major jurisdictions where we conduct business as of December 31, 2023:
The Netherlands2011 to 2023
Canada2015 to 2023
Hong Kong2020 to 2023
Japan2015 to 2023
China2017 to 2023
Singapore2018 to 2023
United States2007 to 2023

U.S state tax returns are generally subject to examination for a period of three to five years after filing of the respective return. The state impact of any federal changes remains subject to examination by various state jurisdictions for a period up to two years after formal notification to the states. As such, U.S. state income tax returns for us are generally subject to examination for the years 2018 to 2023. Although the timing of income tax audit resolutions and negotiations with taxing authorities is highly uncertain, we do not anticipate a significant change in the total amount of unrecognized tax benefits within the next twelve months.
v3.24.0.1
EARNINGS PER SHARE
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
 
Basic and diluted EPS for the years ended December 31, 2023, 2022, and 2021 were as follows: 
Year Ended December 31,
202320222021
(in thousands, except per share data)
Numerator:
Net income attributable to common stockholders
$792,566 $540,159 $725,694 
Denominator:   
Weighted average common shares outstanding - basic61,386 61,220 62,464 
Plus: Dilutive effect of stock options and unvested restricted stock units
566 786 1,254 
Weighted average common shares outstanding - diluted
61,952 62,006 63,718 
Net income per common share:
Basic$12.91 $8.82 $11.62 
Diluted$12.79 $8.71 $11.39 
For the years ended December 31, 2023, 2022, and 2021, an insignificant number of outstanding shares issued under share-based compensation awards were anti-dilutive and, therefore, excluded from the calculation of diluted EPS.
v3.24.0.1
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
 
Purchase Commitments

As of December 31, 2023 and 2022, we had purchase commitments to our third-party manufacturers, primarily for materials and supplies used in the manufacture of our products, for an aggregate of $344.3 million and $380.5 million, respectively. 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 U.S. 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 in relation to certain matters. We cannot determine a range of estimated future payments and have not recorded any liability for such payments in the accompanying 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 estimated losses of an insignificant amount within ‘Accrued expenses and other liabilities’ in our consolidated balance sheet as of December 31, 2023. As we are able, we estimate reasonably possible losses or a range of reasonably possible losses for claims and other disputes. As of December 31, 2023, we estimated that reasonably possible losses could potentially exceed amounts accrued by an insignificant amount.
v3.24.0.1
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION
Our business has continued to evolve in the period following the consummation of the HEYDUDE acquisition, as we have grown the brand and staffed and developed our leadership team at HEYDUDE. In the fourth quarter of 2023, to reflect changes in the way management evaluates performance, makes operating decisions, and allocates resources, we updated our reportable operating segments.

We have two reportable operating segments: the Crocs Brand and the HEYDUDE Brand. Each of the reportable operating segments derives its revenues from the sale of footwear and accessories to external customers.

Additionally, ‘Enterprise corporate’ costs include global corporate costs associated with both brands, including legal, information technology, human resources, and finance.

Each segment’s performance is evaluated based on segment results without allocating 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 enterprise corporate expenses.

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:
Year Ended December 31,
202320222021
(in thousands)
Revenues:
Crocs Brand (1)
$3,012,954 $2,659,125 $2,313,416 
HEYDUDE Brand (2)
949,393 895,860 — 
Total consolidated revenues$3,962,347 $3,554,985 $2,313,416 
Income from operations:
Crocs Brand (1)
$1,079,330 $852,025 $861,394 
HEYDUDE Brand (2)
212,386 211,361 — 
Reconciliation of segment income from operations to income before income taxes:
Enterprise corporate(254,933)(212,630)(178,330)
Total consolidated income from operations1,036,783 850,756 683,064 
Foreign currency gains (losses), net(1,240)3,228 (140)
Interest income2,406 1,020 775 
Interest expense(161,351)(136,158)(21,647)
Other income (expense), net(326)(338)1,797 
Income before income taxes$876,272 $718,508 $663,849 
Depreciation and amortization:
Crocs Brand (1)
$31,950 $18,877 $16,931 
HEYDUDE Brand (2)
14,200 12,248 — 
Enterprise corporate8,154 8,104 15,045 
Total consolidated depreciation and amortization$54,304 $39,229 $31,976 
(1) In the fourth quarter of 2023, to reflect changes in the way management evaluates performance, makes operating decisions, and allocates resources, we updated our reportable operating segments to be (i) Crocs Brand and (ii) HEYDUDE Brand. Our ‘North America,’ ‘Asia Pacific,’ and ‘EMEALA’ segments as well as revenues and expenses related to Crocs ‘Brand corporate’ have been consolidated to the ‘Crocs Brand.’ As a result of these changes, the previously reported amounts for revenues, income from operations, and depreciation and amortization for the years ended December 31, 2022 and 2021 have been recast to conform to current period presentation.
(2) We acquired HEYDUDE on February 17, 2022 and in connection therewith added the HEYDUDE Brand as a new reportable operating segment. Therefore, the amounts shown above for the year ended December 31, 2022 represent results during the partial period beginning on the Acquisition Date through December 31, 2022, and there are no comparative amounts for the year ended December 31, 2021.

There were no customers who represented 10% or more of consolidated revenues during the years ended December 31, 2023, 2022 and 2021. The following table sets forth certain geographical information regarding our consolidated revenues for the periods as shown:
 Year Ended December 31,
 202320222021
 (in thousands)
Location:   
United States$2,573,663 $2,438,923 $1,507,482 
International (1)
1,388,684 1,116,062 805,934 
Total revenues$3,962,347 $3,554,985 $2,313,416 
(1) No individual international country represented 10% or more of consolidated revenues in any of the years presented.
The following table sets forth geographical information regarding property and equipment assets as of the dates shown:
 December 31,
 20232022
 (in thousands)
Location:  
United States$200,869 $148,078 
International (1)
37,446 33,451 
Total property and equipment, net$238,315 $181,529 
(1) As of December 31, 2023 and 2022, property and equipment, net in the Netherlands represented approximately 12% and 15%, respectively, of consolidated property and equipment, net, comprised primarily of property and equipment related to the distribution center in Dordrecht. No other individual international country represented 10% or more of consolidated property and equipment, net in any of the years presented.
v3.24.0.1
EMPLOYEE BENEFIT PLAN
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLAN EMPLOYEE BENEFIT PLAN
Defined Contribution Plan

We sponsor a qualified defined contribution benefit plan (the “Plan”), covering substantially all of our U.S. employees. The Plan includes a savings plan feature under Section 401(k) of the Internal Revenue Code. We make matching contributions to the plans equal to 100% of the first 3%, and up to 50% of the next 2% of salary contributed by an eligible employee. Participants are vested 100% in our matching contributions when made. Contributions made by us under the Plan were $12.6 million, $9.0 million and $7.4 million for the years ended December 31, 2023, 2022, and 2021, respectively.
v3.24.0.1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
 12 Months Ended
Dec. 31, 2023
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
CROCS, INC. AND SUBSIDIARIES
Balance at Beginning of PeriodCharged to Costs and Expenses
Deductions (1)
Balance at End of Period
(in thousands)
Year Ended December 31, 2023
Allowance for doubtful accounts$10,513 $3,567 $(453)$13,627 
Reserve for sales returns and allowances8,877 271,990 (272,739)8,128 
Reserve for unapplied rebates5,103 8,181 (7,448)5,836 
Total$24,493 $283,738 $(280,640)$27,591 
Year Ended December 31, 2022
Allowance for doubtful accounts$7,828 $1,101 $1,584 $10,513 
Reserve for sales returns and allowances9,606 192,543 (193,272)8,877 
Reserve for unapplied rebates3,281 6,107 (4,285)5,103 
Total$20,715 $199,751 $(195,973)$24,493 
Year Ended December 31, 2021
Allowance for doubtful accounts$11,154 $— $(3,326)$7,828 
Reserve for sales returns and allowances5,782 148,893 (145,069)9,606 
Reserve for unapplied rebates4,157 4,678 (5,554)3,281 
Total$21,093 $153,571 $(153,949)$20,715 
(1) Deductions include accounts written off, net of recoveries, and the effects of foreign currency translation.
v3.24.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Pay vs Performance Disclosure      
Net income $ 792,566 $ 540,159 $ 725,694
v3.24.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.0.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries, and they reflect all adjustments which are necessary for a fair statement of results of operations, financial position, and cash flows for the periods presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Basis of Consolidation All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
Use of Estimates

Our consolidated financial statements are prepared in accordance with U.S. GAAP. These accounting principles require 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 and allowances, 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, goodwill, and indefinite-lived intangible assets, and purchase price allocation for the Acquisition, as described in Note 3 — Acquisition of HEYDUDE, are reasonable based on information available at the time they are made.

Additionally, we are periodically exposed to various contingencies in the ordinary course of conducting our business, including certain litigation, contractual disputes, employee relations matters, various tax or other governmental audits, and trademark and intellectual property matters and disputes. We record a liability for such contingencies to the extent that we conclude their occurrence is probable and the related losses are estimable. If it is reasonably possible that an unfavorable settlement of a contingency could exceed the established liability, we disclose the estimated impact on our liquidity, financial condition, and results of operations, if practicable. As the ultimate resolution of contingencies is inherently unpredictable, these assessments can involve a series of complex judgments about future events including, but not limited to, court rulings, negotiations between affected parties, and governmental actions. As a result, the accounting for loss contingencies relies heavily on management’s judgment in developing the related estimates and assumptions. See Note 16 — Commitments and Contingencies for additional information regarding our contingencies and legal proceedings.

To the extent there are differences between these estimates and actual results, our consolidated financial statements may be materially affected.
Reclassifications
Reclassifications

We have reclassified certain amounts in Note 6 — Accrued Expenses and Other Liabilities, Note 12 — Revenues, and Note 17 — Operating Segments and Geographic Information to conform to current period presentation.
Cash and Cash Equivalents
Cash and Cash Equivalents

Cash and cash equivalents represent cash and short-term, highly-liquid investments with maturities of three months or less at the date of purchase. We report receivables from credit card companies in cash and cash equivalents.
Restricted Cash
Restricted Cash

Restricted cash primarily consists of funds to secure certain retail store leases, certain customs requirements, and other contractual arrangements.
Accounts Receivable, Net
Accounts Receivable, Net

Accounts receivable are recorded at invoiced amounts, net of reserves and allowances. We reduce the carrying value for estimated uncollectible accounts based on a variety of factors including the length of time receivables are past due, economic trends and conditions affecting our customer base, and historical collection experience. Specific provisions are recorded for individual receivables when we become aware of a customer’s inability to meet its financial obligations. We write off accounts receivable to the reserves when they are deemed uncollectible or, in certain jurisdictions, when legally able to do so. See Schedule II in Item 15. Exhibits, Financial Statement Schedule of this Annual Report on Form 10-K for more information.
Inventories
Inventories

Inventories are comprised of finished goods, are stated at the lower of cost or net realizable value, and are recognized using the first-in-first-out method of inventory costing. We estimate the market value of inventory based on an analysis of historical sales trends of our individual product lines, the impact of market trends and economic conditions, and a forecast of future demand, giving consideration to the value of current orders in-house for future sales of inventory, as well as plans to sell discontinued or end-of-life inventory through our outlet stores, among other off-price channels. Estimates may differ from actual results due to the quantity, quality, and mix of products in inventory, consumer and retailer preferences, and market conditions. If the estimated market value is less than its carrying value, the carrying value is adjusted to the market value, and the difference is recorded in ‘Cost of sales’ in our consolidated statements of operations.

Reserves for the risk of physical loss of inventory are estimated based on historical experience and are adjusted based upon physical inventory counts, and they are recorded within ‘Cost of sales’ in our consolidated statements of operations.
Property and Equipment, Net
Property and Equipment, Net

Property, equipment, furniture, and fixtures are stated at original cost, less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful asset lives. The useful lives are reviewed periodically and typically range from 2 to 10 years for machinery and equipment and furniture, fixtures and others. Leasehold improvements are stated at cost and amortized on a straight-line basis over their estimated economic useful lives or the lease term, whichever is shorter. Costs of enhancements or modifications that substantially extend the capacity or useful life of an asset are capitalized and depreciated accordingly. Ordinary repairs and maintenance are expensed as incurred. Depreciation of warehouse- and distribution-related assets is included in ‘Cost of sales’ in our consolidated statements of operations. Depreciation related to retail store, corporate, and non-product assets is included in ‘Selling, general and administrative expenses’ in our consolidated statements of operations. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from our consolidated balance sheets, and the resulting gain or loss, if any, is reflected in ‘Income from operations’ in the consolidated statements of operations.
Goodwill and Other Intangible Assets, Net
Goodwill and Other Intangible Assets, Net

We evaluate the carrying value of our goodwill and indefinite-lived intangible assets for impairment at the reporting unit level at least annually or when an interim triggering event has occurred indicating potential impairment.

The excess of the purchase price over the fair value of acquired net assets represents goodwill. Our goodwill balance as of December 31, 2023 was $711.6 million and primarily related to the acquisition of HEYDUDE during the year ended December 31, 2022. As of December 31, 2023, a goodwill amount of $710.0 million was assigned to the HEYDUDE Brand segment and consisted of the acquired workforce and economies of scale resulting from the Acquisition.
When performing our annual test for impairment, we may assess goodwill and indefinite-lived intangible assets for potential impairment using either a qualitative or quantitative assessment. Significant judgments and assumptions are required in such impairment evaluations. For the quantitative assessment, we compare the estimated fair value of a reporting unit with its carrying value, including the goodwill assigned to the reporting unit. If the carrying value of the reporting unit exceeds its estimated fair value, an impairment charge is recorded. For the year ended December 31, 2023, we performed a qualitative and quantitative assessment for the HEYDUDE Brand reporting unit goodwill, and we performed a quantitative assessment for the HEYDUDE Brand indefinite-lived intangible assets. The estimated fair values of the HEYDUDE Brand reporting unit goodwill and indefinite-lived trademark exceeded their carrying values. For the year ended December 31, 2022, we performed a quantitative assessment for the HEYDUDE Brand reporting unit goodwill and the HEYDUDE Brand indefinite-lived intangible assets, each of which indicated the estimated fair values exceeded their carrying values. Additionally for the years ended December 31, 2023, 2022, and 2021, we performed a qualitative assessment for the goodwill in our Crocs Brand segment, which indicated that it was more likely than not that the estimated fair value exceeded its carrying value. We did not record any impairment charges in the years ended December 31, 2023, 2022, or 2021 based on the results of our goodwill and indefinite-lived intangible assets impairment testing.

We continuously monitor the performance of our definite-lived intangible assets, which includes software, customer relationships, patents, copyrights, and certain trademarks, and evaluate for impairment when evidence exists that certain events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. Significant judgments and assumptions are required in such impairment evaluations. Definite-lived intangible assets are stated at cost, less accumulated amortization. Amortization is recorded using the straight-line method over the estimated lives of the assets.

We amortize our customer relationships on a straight-line basis over a useful life of 15 years. Amortization for patents, copyrights, and trademarks is provided using the straight-line method over the estimated useful asset lives, which are reviewed periodically and typically range from 7 to 25 years.

Internal-Use Software and Cloud Computing Arrangements

We capitalize direct costs of materials and services used in the development and purchase of internal-use software. Amounts capitalized are amortized on a straight-line basis over a period of 2 to 8 years and are reported as a component of ‘Intangible assets, net’ in the consolidated balance sheets.

We also capitalize certain costs incurred during the application development stage of implementation of internal-use software in cloud computing arrangements. Amounts capitalized are amortized on a straight-line basis over the expected length of the related contract and are reported as a component of ‘Other assets’ in the consolidated balance sheets.

Amortization of capitalized software used in warehouse- and distribution-related activities is included in ‘Cost of sales’ in the consolidated statements of operations. Amortization related to corporate and non-product, assets, such as our global information systems, is included in ‘Selling, general, and administrative expenses’ in the consolidated statements of operations.
Leases
Leases

Our lease portfolio consists primarily of real estate assets, which includes retail, warehouse, distribution center, and office spaces, under operating leases expiring at various dates through 2034. Leases with an original term of twelve months or less are not reported in the consolidated balance sheets; expense for these short-term leases is recognized on a straight-line basis over the lease term.

Many leases include one or more options to renew, with renewal terms that, if exercised by us, may extend the lease term. The exercise of these renewal options is at our discretion. When assessing the likelihood of a renewal or termination, we consider the significance of leasehold improvements, availability of alternative locations, and the cost of relocation or replacement, among other considerations. The depreciable lives of leasehold improvements are the shorter of the useful lives of the improvements or the expected lease term. We determine the lease term for each lease based on the terms of each contract and factor in renewal and early termination options if such options are reasonably certain to be exercised. We do not generally believe such options are reasonably certain, and therefore, we have excluded them from the recorded right-of-use assets and operating lease liabilities.

Due to our centralized treasury function, we utilize a portfolio approach to discount our lease obligations. We assess the expected lease term at lease inception and discount the lease using a fully-secured annual incremental borrowing rate, adjusted for time value corresponding with the expected lease term.
Certain of our retail store leases include rental payments based upon a percentage of retail sales in excess of a minimum fixed rental. In some cases, there is no fixed minimum rental, and the entire rental payment is based upon a percentage of sales. In addition, certain leases include rental payments adjusted periodically for changes in price level indices. We recognize expense for these types of payments as incurred and report them as variable lease expense. See Note 7 — Leases for additional information.
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 December 31, 2023 or 2022.

Our derivative instruments are recorded at fair value as a derivative asset or liability in the consolidated balance sheets within either ‘Prepaid expenses and other assets’ or ‘Accrued expenses and other liabilities’ at December 31, 2023 and 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 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 operating activities.’

As of December 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 consolidated statements of operations.

We also have cash flow hedges (“hedged derivatives”) as of December 31, 2023. We are exposed to fluctuations in various foreign currencies against our functional currency, the USD. 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 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 consolidated statement of operations, which is consistent with the nature of the hedged transaction.

See Note 9 — Derivative Financial Instruments for further information on derivative financial instruments.
Other Comprehensive Income
Other Comprehensive Income
Our foreign subsidiaries use their foreign currency as their functional currency. Functional currency assets and liabilities are translated into USD using exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates during the period. Resulting translation gains and losses are reported in other comprehensive income (loss), until the substantial liquidation of a subsidiary, at which time accumulated translation gains or losses are reclassified into net income. During the year ended December 31, 2022, we recognized a net loss of $8.1 million of cumulative foreign currency translation adjustments related to the substantial liquidation of a foreign subsidiary.
Revenue Recognition, Shipping and Handling Costs and Fees and Cost of Sales
Revenue Recognition

See Note 12 — Revenues for a summary of our revenue recognition policy.

Shipping and Handling Costs and Fees

Shipping and handling costs are expensed as incurred and are included in ‘Cost of sales’ in the consolidated statements of operations. Shipping and handling fees billed to customers are included in revenues.
Cost of Sales

Our cost of sales includes costs incurred to design, produce, procure, and ship our footwear. These costs include our raw materials, both direct and indirect labor, shipping and handling including freight costs, utilities, maintenance costs, licensing fees, depreciation, amortization, packaging, and other warehouse and distribution overhead and costs.
Taxes Assessed by Governmental Authorities
Taxes Assessed by Governmental Authorities

Taxes assessed by governmental authorities that are directly imposed on a revenue transaction, including value added tax, are recorded on a net basis and are therefore excluded from revenues.
Selling, General and Administrative Expenses
Selling, General and Administrative Expenses

Selling, general and administrative expenses consist primarily of labor and outside services, rent expense, bad debt expense, legal costs, amortization of intangible assets, as well as certain depreciation costs related to corporate and non-product assets and share-based compensation. Selling, general and administrative expenses also include costs for our marketing and sales organizations, and other functions including finance, legal, human resources, and information technology.

Our selling, general and administrative expenses include media advertising (television, radio, print, social, digital), tactical advertising (signs, banners, point-of-sale materials) and promotional costs. Advertising production costs are expensed when the advertising is first run. Advertising communication costs are expensed in the periods that the communications occur. Certain of our promotional expenses result from payments under endorsement contracts. Endorsement-related expenses are recognized as performance is received over the term of each endorsement agreement.
Research, Design and Development Expenses
Research, Design and Development Expenses

We continue to dedicate resources to product design and development based on opportunities we identify in the marketplace. We incurred expenses of $21.4 million, $18.7 million, and $13.7 million in research, design, and development activities for the years ended December 31, 2023, 2022, and 2021, respectively, which are expensed as incurred and are reported in ‘Selling, general and administrative expenses’ in the consolidated statements of operations.
Share-Based Compensation
Share-Based Compensation

Restricted Stock Awards (“RSAs”) and Restricted Stock Units (“RSUs”)

We grant RSAs, service-condition RSUs, performance-condition RSUs, and market-condition RSUs. The grant date fair values of RSAs, service-condition RSUs, and performance-condition RSUs are based on the closing market price of our common stock
on the grant date; the grant date fair value and derived service period of market-condition RSUs are estimated using a Monte Carlo simulation valuation model. Our service-condition RSUs vest based on continued service; our performance-condition RSUs vest based on achievement of multiple weighted performance goals, certification of performance achievement by the Compensation Committee of the Board of Directors, and continued service; and our market-condition RSUs vest based on the market price of our stock and continued service. Compensation expense, net of forfeitures, is recognized on a straight-line basis over the requisite service period. For performance-condition RSUs, compensation expense is updated for our expected performance level against performance goals at the end of each reporting period, which involves judgment as to the achievement of certain performance metrics.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets

Long-lived assets to be held and used are evaluated for impairment when events or circumstances indicate the carrying value of a long-lived asset or asset group is less than the undiscounted cash flows from its use and eventual disposition over its remaining economic life. We assess recoverability by comparing the sum of projected undiscounted cash flows from the use and eventual disposition over the remaining economic life of a long-lived asset or asset group to its carrying value, and record a loss from impairment if the carrying value is more than its undiscounted cash flows. For customer relationships, impairment testing is performed at the customer group level. For assets involved in our retail businesses, the asset group is at the retail store level. As retail store performance will vary in new and existing markets due to many factors, including maturity of the market and brand recognition, we periodically evaluate the fixed assets, leasehold improvements, and right-of-use assets related to our retail locations for impairment. For all other long-lived assets, we perform impairment testing at the asset group level for which separately identifiable cash flows are available. Assets or asset groups to be abandoned are written down to zero in the period it is determined they will no longer be used and are removed entirely from service. See Note 4 — Property and Equipment, Net, Note 5 — Goodwill and Intangible Assets, Net, and Note 7 — Leases for a discussion of impairment losses recorded during the periods presented.
Foreign Currency Gains (Losses), Net
Foreign Currency Gains (Losses), Net
Foreign currency gains (losses), net includes realized and unrealized foreign exchange gains and losses resulting from remeasurement and settlement of foreign-currency transactions denominated in a currency other than the functional currency of an entity and realized and unrealized gains and losses on forward foreign currency exchange derivative contracts that do not qualify for hedge accounting.
Other Income (Expense), Net
Other Income (Expense), Net

Other income (expense), net primarily includes gains and losses associated with activities not directly related to making and selling footwear.
Income Taxes
Income Taxes
Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of other assets and liabilities. We provide for income taxes at the current and future enacted tax rates and laws applicable in each taxing jurisdiction. We account for the tax effects of global intangible low-taxed income (“GILTI”) as a component of income tax expense in the period the tax arises, to the extent applicable. We use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. We recognize interest and penalties related to income tax matters in income tax expense in the consolidated statements of operations.
Earnings per Share
Earnings per Share
Basic and diluted earnings per common share (“EPS”) is presented using the treasury stock method. Diluted EPS reflects the potential dilution to common shareholders from securities that could share in our earnings and is calculated by adjusting weighted average outstanding shares, assuming conversion of all potentially dilutive stock options and awards. Anti-dilutive securities are excluded from diluted EPS.
Fair Value
Fair Value

U.S. GAAP for fair value establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). We utilize a combination of market and income approaches to value derivative instruments. Our financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels of the hierarchy and the related inputs are as follows:
LevelInputs
1Unadjusted quoted prices in active markets for identical assets and liabilities.
2Unadjusted quoted prices in active markets for similar assets and liabilities;
Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or
Inputs other than quoted prices that are observable for the asset or liability.
3Unobservable inputs for the asset or liability.

We categorize fair value measurements within the fair value hierarchy based upon the lowest level of the most significant inputs used to determine fair value.

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. However, on a periodic basis or whenever events or changes in circumstances indicate that their carrying value may not be fully recoverable (and at least annually for goodwill and indefinite-lived intangible assets), non-financial instruments are assessed for impairment and, if applicable, written down to and recorded at fair value. See Note 8 — Fair Value Measurements for further discussion related to estimated fair value measurements.
Non-Financial Assets and Liabilities

Our non-financial assets, which primarily consist of property and equipment, right-of-use assets, goodwill, trademarks, customer relationships, and other intangible assets, are not required to be carried at fair value on a recurring basis and are reported at carrying value.
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 are applicable to us. We are currently monitoring the impact of both the CHIPS and IRA but do 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. Additionally, we resumed our share repurchase program in July 2023. As such, we began recognizing an accrual for the new stock repurchase excise tax, which did not have a material impact on our consolidated financial position.

New Accounting Pronouncements 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 “Pillar Two Framework”). 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.

Income Taxes: Improvements to Income Tax Disclosure

In December 2023, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance related to the disclosure of rate reconciliation and income taxes paid. This guidance becomes effective for annual periods beginning after December 15, 2024 with early adoption permitted and should be applied on a prospective basis. We do not expect this standard to have a material impact on our consolidated financial statements, but it will require increased disclosures within the notes to our consolidated financial statements.
Segment Reporting: Improvements to Reportable Segment Disclosures

In November 2023, the FASB issued authoritative guidance related to the segment disclosures. This guidance becomes effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024, with early adoption permitted and should be applied on a retrospective basis. We do not expect this standard to have a material impact on our consolidated financial statements, but it will require increased disclosures within the notes to our consolidated financial statements.

New pronouncements issued but not effective until after December 31, 2023 are not expected to have a material impact on our consolidated financial statements.
v3.24.0.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Fair Value Measurements, Valuation Techniques The three levels of the hierarchy and the related inputs are as follows:
LevelInputs
1Unadjusted quoted prices in active markets for identical assets and liabilities.
2Unadjusted quoted prices in active markets for similar assets and liabilities;
Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or
Inputs other than quoted prices that are observable for the asset or liability.
3Unobservable inputs for the asset or liability.
v3.24.0.1
ACQUISITION OF HEYDUDE (Tables)
 12 Months Ended
Dec. 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, net68,698 
Inventories155,773 
Prepaid expenses and other assets (1)
7,880 
Intangible assets1,780,000 
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 
Business Acquisition, 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.
Year Ended December 31,
20222021
(in thousands)
Revenues$3,645,291 $2,894,094 
Net income614,463 706,853 
v3.24.0.1
PROPERTY AND EQUIPMENT, NET (Tables)
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment and Depreciation Expense
‘Property and equipment, net’ consists of the following:
 December 31,
 20232022
 (in thousands)
Machinery and equipment$163,919 $146,821 
Leasehold improvements149,132 76,363 
Furniture, fixtures, and other32,356 26,782 
Construction-in-progress13,418 28,699 
Property and equipment358,825 278,665 
Less: Accumulated depreciation and amortization(120,510)(97,136)
Property and equipment, net$238,315 $181,529 
Depreciation and amortization expense related to property and equipment, reported in ‘Cost of sales’ and ‘Selling, general and administrative expenses’ was:
Year Ended December 31,
202320222021
(in thousands)
Cost of sales$18,809 $10,043 $6,234 
Selling, general and administrative expenses12,876 9,599 8,708 
Total depreciation and amortization expense$31,685 $19,642 $14,942 
v3.24.0.1
GOODWILL AND INTANGIBLE ASSETS, NET (Tables)
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The changes in goodwill for the years ended December 31, 2023 and 2022 were:
Goodwill
(in thousands)
Balance at December 31, 2021
$1,600 
HEYDUDE Acquisition713,308 
Foreign currency translation (1)
(94)
Balance at December 31, 2022
714,814 
HEYDUDE valuation adjustment (2)
(3,274)
Foreign currency translation (1)
48 
Balance at December 31, 2023
$711,588 
(1) Foreign currency translation only relates to the goodwill in our Crocs Brand operating segment, as described below.
(2) We acquired HEYDUDE on February 17, 2022, and the purchase price allocation was finalized during the year ended December 31, 2023, resulting in a change to the goodwill balance. During the year ended December 31, 2023, there were valuation adjustments that resulted in a net decrease to goodwill of $3.3 million. Refer to Note 3 — Acquisition of HEYDUDE for additional details.
Schedule of Intangible Assets, net
‘Intangible assets, net’ reported in the consolidated balance sheets consist of the following:
December 31, 2023December 31, 2022
GrossAccum. Amortiz.NetGrossAccum. Amortiz.Net
(in thousands)
Intangible assets subject to amortization:
Capitalized software$136,343 $(108,675)$27,668 $132,295 $(109,227)$23,068 
Customer relationships210,000 (26,250)183,750 210,000 (12,250)197,750 
Patents, copyrights, and trademarks5,055 (3,686)1,369 5,124 (3,537)1,587 
Intangible assets not subject to amortization:
HEYDUDE trademark1,570,000 — 1,570,000 1,570,000 — 1,570,000 
In progress8,562 — 8,562 7,537 — 7,537 
Other1,213 — 1,213 225 — 225 
Total$1,931,173 $(138,611)$1,792,562 $1,925,181 $(125,014)$1,800,167 
Schedule of Intangible Asset Amortization Expense
Amortization expense related to definite-lived intangible assets, reported in ‘Cost of sales’ and ‘Selling, general and administrative expenses’ was:
Year Ended December 31,
202320222021
(in thousands)
Cost of sales$3,080 $2,366 $4,779 
Selling, general and administrative expenses19,539 17,221 12,255 
Total amortization expense$22,619 $19,587 $17,034 
Schedule of Future Amortization of Intangible Assets
Estimated future annual amortization expense of intangible assets is:
As of
December 31, 2023

(in thousands)
2024$22,778 
202521,582 
202620,073 
202718,080 
202816,060 
Thereafter114,214 
Total$212,787 
v3.24.0.1
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses and Other Liabilities
Amounts reported in ‘Accrued expenses and other liabilities’ in the consolidated balance sheets were:
December 31,
20232022
 (in thousands)
Professional services$80,986 $45,351 
Accrued compensation and benefits70,245 55,474 
Return liabilities38,644 27,651 
Sales/use and value added taxes payable23,768 27,249 
Fulfillment, freight, and duties22,269 41,646 
Royalties payable and deferred revenue15,053 10,528 
Accrued rent and occupancy8,246 8,972 
Accrued legal fees (1)
2,546 2,602 
Other (1)
24,014 19,951 
Total accrued expenses and other liabilities$285,771 $239,424 
(1) Amounts as of December 31, 2022 have been reclassified to conform to current period presentation.
v3.24.0.1
LEASES (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Schedule of Rights-of-use Assets and Operating Lease Liabilities
Amounts reported in the consolidated balance sheets were:
December 31,
20232022
(in thousands)
Assets:
Right-of-use assets$287,440 $239,905 
Liabilities:
Current operating lease liabilities$62,267 $57,456 
Long-term operating lease liabilities269,769 215,119 
Total operating lease liabilities$332,036 $272,575 
Schedule of Lease Costs and Other Information
Lease-related costs reported within ‘Cost of sales’ and ‘Selling, general and administrative expenses’ were:
Year Ended December 31,
20232022
(in thousands)
Operating lease cost $79,543 $66,012 
Short-term lease cost13,258 9,590 
Variable lease cost44,706 37,536 
Total lease costs$137,507 $113,138 
Schedule of Maturities of Operating Lease Liabilities
The maturities of our operating lease liabilities were:
As of
December 31, 2023
(in thousands)
2024$71,524 
202562,169 
202651,131 
202745,008 
202836,156 
Thereafter139,898 
Total future minimum lease payments405,886 
Less: imputed interest(73,850)
Total operating lease liabilities$332,036 
v3.24.0.1
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value of Company's Notes Payable The carrying values and fair values of our borrowing instruments as of December 31, 2023 and 2022 were:
December 31, 2023December 31, 2022
Carrying ValueFair
Value		Carrying ValueFair
Value
(in thousands)
Term Loan B Facility$820,000 $824,100 $1,675,000 $1,642,547 
2029 Notes350,000 313,987 350,000 297,596 
2031 Notes350,000 296,742 350,000 284,240 
Revolving Facility190,000 190,000 — — 
Fair Value of Company's Non-financial Assets
The fair values of these assets were determined 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. We recorded impairments as follows:
Year Ended December 31,
 202320222021
 (in thousands)
Leasehold improvement assets impairment (1)
$1,007 $— $— 
Right-of-use assets impairment (1)
8,280 — — 
Total asset impairments$9,287 $— $— 
(1) During the year ended December 31, 2023, we recognized an impairment of $9.3 million for our former corporate headquarters in Broomfield, Colorado.
v3.24.0.1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 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, are reported within either ‘Prepaid expenses and other assets’ or ‘Accrued expenses and other liabilities’ in the consolidated balance sheets and were:
December 31, 2023December 31, 2022
Derivative AssetsDerivative LiabilitiesDerivative AssetsDerivative Liabilities
(in thousands)
Non-hedged derivatives:
Forward foreign currency exchange contracts$2,850 $(1,333)$345 $(360)
Hedged derivatives:
Cash flow foreign currency contracts142 (229)348 (1,116)
Total derivatives2,992 (1,562)693 (1,476)
Netting of counterparty contracts(1,547)1,547 (345)345 
Total derivatives, net of counterparty contracts$1,445 $(15)$348 $(1,131)
Summary of Derivative Financial Instruments Notional Amounts on Outstanding Positions
The notional amounts of outstanding forward foreign currency exchange contracts shown below report the total U.S. Dollar equivalent position and the net contract fair values for each foreign currency position.
December 31, 2023December 31, 2022
NotionalFair ValueNotionalFair Value
(in thousands)
Non-hedged derivatives:
Singapore Dollar $41,441 $1,507 $26,760 $207 
Euro30,757 1,343 5,068 (29)
British Pound Sterling17,662 (835)14,509 128 
South Korean Won9,759 (428)18,403 (320)
Indian Rupee5,291 (23)24,945 (10)
Japanese Yen969 (47)8,953 9 
Total non-hedged derivatives105,879 1,517 98,638 (15)
Hedged derivatives:
 Euro 40,014 (186)51,914 (360)
 British Pound Sterling 22,320 135 23,025 235 
 South Korean Won 11,093 (42)12,285 (756)
 Indian Rupee 5,703 6 7,203 113 
Total hedged derivatives79,130 (87)94,427 (768)
Total derivatives$185,009 $1,430 $193,065 $(783)
Latest maturity date, non-hedged derivativesJanuary 2024April 2023
Latest maturity date, hedged derivativesDecember 2024June 2023
Schedule of Gains / Losses from Foreign Currency Transactions and Derivative Contracts
Amounts reported in ‘Foreign currency gains (losses), net’ in the consolidated statements of operations include both realized and unrealized gains (losses) from foreign currency transactions and derivative contracts and were as follows:
Year Ended December 31,
 202320222021
 (in thousands)
Foreign currency transaction gains (losses)
$(1,992)$(2,858)$100 
Foreign currency forward exchange contracts gains (losses)
752 6,086 (240)
Foreign currency gains (losses), net
$(1,240)$3,228 $(140)
v3.24.0.1
BORROWINGS (Tables)
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Components Of Our Consolidated Debt
Our long-term borrowings were as follows:
Stated Interest RateEffective Interest RateDecember 31,
Maturity20232022
(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 Facility2029820,000 1,675,000 
Revolving Facility190,000 — 
Total face value of long-term borrowings1,710,000 2,375,000 
Less:
Unamortized issuance costs49,004 56,973 
Current portion of long-term borrowings (1)
20,000 20,000 
Total long-term borrowings$1,640,996 $2,298,027 
(1) Represents the current portion of the borrowings on the Term Loan B facility.
v3.24.0.1
REVENUES (Tables)
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Revenues by Reportable Operating Segment and by Channel
Revenues by reportable operating segment and by channel were:

Year Ended December 31,
202320222021
Crocs Brand:
North America:
Wholesale$652,943 $644,215 $674,230 
Direct-to-consumer1,124,942 1,000,441 879,748 
Total North America (1)
1,777,885 1,644,656 1,553,978 
International:
Wholesale840,594 733,087 499,851 
Direct-to-consumer394,475 281,382 259,587 
Total International1,235,069 1,014,469 759,438 
Total Crocs Brand$3,012,954 $2,659,125 $2,313,416 
Crocs Brand:
Total Wholesale$1,493,537 $1,377,302 $1,174,081 
Total Direct-to-consumer1,519,417 1,281,823 1,139,335 
Total Crocs Brand3,012,954 2,659,125 2,313,416 
HEYDUDE Brand:
Wholesale566,937 574,140 — 
Direct-to-consumer382,456 321,720 — 
Total HEYDUDE Brand (2)
949,393 895,860 — 
Total consolidated revenues$3,962,347 $3,554,985 $2,313,416 
(1) North America includes the United States and Canada.
(2) We acquired HEYDUDE on February 17, 2022 and, as a result, added the HEYDUDE Brand as a new reportable operating segment. Therefore, the amounts shown above for the year ended December 31, 2022 represent results during the Partial Period, and there are no comparative amounts for the year ended December 31, 2021. The vast majority of HEYDUDE Brand revenues are derived from North America.
v3.24.0.1
SHARE-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stock Option Activity
Stock option activity during the year ended December 31, 2023 was:
Number of OptionsWeighted Average Exercise PriceWeighted Average Contractual Life (Years)Aggregate Intrinsic Value
(in thousands, except exercise price and years)
Outstanding as of December 31, 2022
210 $7.44 4.28$21,208 
Granted— — 
Exercised— — 
Forfeited or expired— — 
Outstanding as of December 31, 2023
210 $7.44 3.28$18,053 
Exercisable at December 31, 2023
210 $7.44 3.28$18,053 
Vested at December 31, 2023
210 $7.44 3.28$18,053 
Schedule Of Restricted Stock Award And Restricted Stock Unit Activity
RSA and RSU activity during the year ended December 31, 2023 was:
Restricted Stock AwardsRestricted Stock Units
SharesWeighted Average Grant Date Fair ValueSharesWeighted Average Grant Date Fair Value
(in thousands, except fair value data)
Unvested at December 31, 2022
5 $51.13 1,181 $62.93 
Granted4 105.95 440 122.97 
Vested(7)69.62 (558)55.68 
Forfeited— — (216)83.58 
Unvested at December 31, 2023
2 $105.95 847 $94.05 
v3.24.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The following table sets forth income before taxes and the expense for income taxes:
 Year Ended December 31,
 202320222021
 (in thousands)
Income before taxes:   
U.S. $309,098 $312,501 $510,706 
Foreign567,174 406,007 153,143 
Total income before taxes$876,272 $718,508 $663,849 
Income tax expense (benefit):   
Current income taxes:   
U.S. federal$85,075 $76,092 $94,548 
U.S. state21,884 19,257 28,460 
Foreign387,066 87,760 56,430 
Total current income taxes494,025 183,109 179,438 
Deferred income taxes:   
U.S. federal(12,873)(12,032)791 
U.S. state(1,662)861 32 
Foreign(395,784)6,411 (242,106)
Total deferred income taxes(410,319)(4,760)(241,283)
Total income tax expense (benefit)
$83,706 $178,349 $(61,845)
Summary of Tax Expense and Effective Tax Rates
The following table sets forth income reconciliations of the statutory federal income tax rate to actual rates based on income or loss before income taxes:
 Year Ended December 31,
 202320222021
 (in thousands)
Income tax expense and rate attributable to:
Federal income tax rate$184,017 21.0 %$150,887 21.0 %$139,408 21.0 %
State income tax rate, net of federal benefit
16,854 1.9 %15,981 2.2 %22,952 3.5 %
Foreign income tax rate differential31,495 3.6 %12,405 1.7 %18,890 2.8 %
GILTI, net44,003 5.0 %4,834 0.7 %14,157 2.1 %
Non-deductible / non-taxable items(1,129)(0.1)%3,743 0.5 %9,637 1.5 %
Change in valuation allowance156,312 17.8 %4,414 0.6 %(192,337)(29.0)%
U.S. tax on foreign earnings1,752 0.2 %16,822 2.3 %— — %
Foreign tax credits(55,648)(6.4)%(28,087)(3.9)%(19,925)(3.0)%
Research and development credits(6,754)(0.8)%(5,488)(0.8)%(13,104)(2.0)%
Uncertain tax positions330,819 37.8 %3,952 0.6 %21,341 3.2 %
Share-based compensation(2,097)(0.2)%(1,231)(0.2)%(11,930)(1.8)%
Intra-Entity IP Transfer(611,403)(69.8)%— — %(41,858)(6.3)%
Enacted changes in tax law— — %— — %(9,554)(1.4)%
Other(4,515)(0.4)%117 0.1 %478 0.1 %
Effective income tax expense and rate$83,706 9.6 %$178,349 24.8 %$(61,845)(9.3)%
Schedule of Deferred Tax Assets and Liabilities
Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table sets forth deferred income tax assets and liabilities as of the date shown:
 December 31,
 20232022
 (in thousands)
Non-current deferred tax assets:  
Share-based compensation expense$3,248 $3,130 
Accruals, reserves, and other expenses27,914 24,324 
Net operating loss47,951 21,455 
Intangible assets737,976 438,712 
Foreign tax credit28,053 45,746 
Operating lease liabilities71,012 55,624 
Other43,661 25,354 
Valuation allowance(183,545)(28,118)
Total non-current deferred tax assets$776,270 $586,227 
Non-current deferred tax liabilities:  
Unrealized gain on foreign currency$— $(1,760)
Property and equipment(13,948)(2,381)
Right-of-use assets(59,806)(47,641)
Intangible assets(46,177)(307,474)
Other(1,280)(723)
Total non-current deferred tax liabilities$(121,211)$(359,979)
Schedule of Unrecognized Tax Benefits Roll Forward
The following table sets forth a reconciliation of the beginning and ending amount of unrecognized tax benefits:
 Year Ended December 31,
 202320222021
 (in thousands)
Unrecognized tax benefit as of January 1$219,363 $218,399 $206,209 
Additions in tax positions taken in prior period3,690 1,697 6,169 
Reductions in tax positions taken in prior period(7)(904)(963)
Additions in tax positions taken in current period325,058 2,948 23,061 
Settlements— (375)(763)
Lapse of statute of limitations(148)(510)(342)
Current year acquisitions— 10,426 — 
Cumulative foreign currency translation adjustment8,526 (12,318)(14,972)
Unrecognized tax benefit as of December 31$556,482 $219,363 $218,399 
Summary of Income Tax Examinations
The following table sets forth the tax years subject to examination for the major jurisdictions where we conduct business as of December 31, 2023:
The Netherlands2011 to 2023
Canada2015 to 2023
Hong Kong2020 to 2023
Japan2015 to 2023
China2017 to 2023
Singapore2018 to 2023
United States2007 to 2023
v3.24.0.1
EARNINGS PER SHARE (Tables)
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Summary Of Basic And Diluted Earnings Per Share
Basic and diluted EPS for the years ended December 31, 2023, 2022, and 2021 were as follows: 
Year Ended December 31,
202320222021
(in thousands, except per share data)
Numerator:
Net income attributable to common stockholders
$792,566 $540,159 $725,694 
Denominator:   
Weighted average common shares outstanding - basic61,386 61,220 62,464 
Plus: Dilutive effect of stock options and unvested restricted stock units
566 786 1,254 
Weighted average common shares outstanding - diluted
61,952 62,006 63,718 
Net income per common share:
Basic$12.91 $8.82 $11.62 
Diluted$12.79 $8.71 $11.39 
v3.24.0.1
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Information Related to Reportable Operating Segments
The following tables set forth information related to reportable operating segments:
Year Ended December 31,
202320222021
(in thousands)
Revenues:
Crocs Brand (1)
$3,012,954 $2,659,125 $2,313,416 
HEYDUDE Brand (2)
949,393 895,860 — 
Total consolidated revenues$3,962,347 $3,554,985 $2,313,416 
Income from operations:
Crocs Brand (1)
$1,079,330 $852,025 $861,394 
HEYDUDE Brand (2)
212,386 211,361 — 
Reconciliation of segment income from operations to income before income taxes:
Enterprise corporate(254,933)(212,630)(178,330)
Total consolidated income from operations1,036,783 850,756 683,064 
Foreign currency gains (losses), net(1,240)3,228 (140)
Interest income2,406 1,020 775 
Interest expense(161,351)(136,158)(21,647)
Other income (expense), net(326)(338)1,797 
Income before income taxes$876,272 $718,508 $663,849 
Depreciation and amortization:
Crocs Brand (1)
$31,950 $18,877 $16,931 
HEYDUDE Brand (2)
14,200 12,248 — 
Enterprise corporate8,154 8,104 15,045 
Total consolidated depreciation and amortization$54,304 $39,229 $31,976 
(1) In the fourth quarter of 2023, to reflect changes in the way management evaluates performance, makes operating decisions, and allocates resources, we updated our reportable operating segments to be (i) Crocs Brand and (ii) HEYDUDE Brand. Our ‘North America,’ ‘Asia Pacific,’ and ‘EMEALA’ segments as well as revenues and expenses related to Crocs ‘Brand corporate’ have been consolidated to the ‘Crocs Brand.’ As a result of these changes, the previously reported amounts for revenues, income from operations, and depreciation and amortization for the years ended December 31, 2022 and 2021 have been recast to conform to current period presentation.
(2) We acquired HEYDUDE on February 17, 2022 and in connection therewith added the HEYDUDE Brand as a new reportable operating segment. Therefore, the amounts shown above for the year ended December 31, 2022 represent results during the partial period beginning on the Acquisition Date through December 31, 2022, and there are no comparative amounts for the year ended December 31, 2021.

There were no customers who represented 10% or more of consolidated revenues during the years ended December 31, 2023, 2022 and 2021. The following table sets forth certain geographical information regarding our consolidated revenues for the periods as shown:
 Year Ended December 31,
 202320222021
 (in thousands)
Location:   
United States$2,573,663 $2,438,923 $1,507,482 
International (1)
1,388,684 1,116,062 805,934 
Total revenues$3,962,347 $3,554,985 $2,313,416 
(1) No individual international country represented 10% or more of consolidated revenues in any of the years presented.
The following table sets forth geographical information regarding property and equipment assets as of the dates shown:
 December 31,
 20232022
 (in thousands)
Location:  
United States$200,869 $148,078 
International (1)
37,446 33,451 
Total property and equipment, net$238,315 $181,529 
(1) As of December 31, 2023 and 2022, property and equipment, net in the Netherlands represented approximately 12% and 15%, respectively, of consolidated property and equipment, net, comprised primarily of property and equipment related to the distribution center in Dordrecht. No other individual international country represented 10% or more of consolidated property and equipment, net in any of the years presented.
v3.24.0.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
renewalOption
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Feb. 17, 2022
USD ($)
Related Party Transaction [Line Items]        
Goodwill $ 711,588 $ 714,814 $ 1,600  
Number of renewal options (or more) | renewalOption 1      
Reclassification of foreign currency translation loss to income [1] $ 0 8,148 0  
Marketing expenses, including advertising, production, promotion, and agency expenses 317,400 260,800 172,700  
Research, design and development expense 21,400 $ 18,700 $ 13,700  
HEYDUDE Brand        
Related Party Transaction [Line Items]        
Goodwill 710,000      
HEYDUDE        
Related Party Transaction [Line Items]        
Percentage of voting interests acquired       100.00%
Goodwill $ 710,000     $ 710,034
Customer relationships        
Related Party Transaction [Line Items]        
Intangible asset useful life 15 years      
Minimum | Patents, copyrights, and trademarks        
Related Party Transaction [Line Items]        
Intangible asset useful life 7 years      
Minimum | Capitalized software        
Related Party Transaction [Line Items]        
Intangible asset useful life 2 years      
Minimum | Machinery and equipment        
Related Party Transaction [Line Items]        
Property and equipment useful life 2 years      
Minimum | Furniture, fixtures, and other        
Related Party Transaction [Line Items]        
Property and equipment useful life 2 years      
Maximum | Patents, copyrights, and trademarks        
Related Party Transaction [Line Items]        
Intangible asset useful life 25 years      
Maximum | Capitalized software        
Related Party Transaction [Line Items]        
Intangible asset useful life 8 years      
Maximum | Machinery and equipment        
Related Party Transaction [Line Items]        
Property and equipment useful life 10 years      
Maximum | Furniture, fixtures, and other        
Related Party Transaction [Line Items]        
Property and equipment useful life 10 years      
[1] Represents the reclassification of a cumulative foreign currency translation adjustment upon substantial liquidation of foreign subsidiaries which is presented within ‘Selling, general and administrative expenses’ in the consolidated statements of operations.
v3.24.0.1
ACQUISITION OF HEYDUDE (Narrative) (Details) - USD ($)
 3 Months Ended 12 Months Ended
Feb. 17, 2022
Mar. 31, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Business Acquisition [Line Items]          
Goodwill     $ 711,588,000 $ 714,814,000 $ 1,600,000
Goodwill valuation adjustments     (3,274,000)    
Term Loan B Facility | Line of Credit          
Business Acquisition [Line Items]          
Borrowing capacity under revolving credit facility $ 2,000,000,000     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        
Goodwill $ 710,034,000   710,000,000    
Goodwill valuation adjustments   $ 3,300,000      
Goodwill deductible for income tax purposes     0    
Business combination, acquisition related costs     $ 0 $ 25,700,000  
HEYDUDE | Escrow Amount          
Business Acquisition [Line Items]          
Escrow deposit 125,000,000        
HEYDUDE | Adjustment Holdback Amount          
Business Acquisition [Line Items]          
Escrow deposit 8,500,000        
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        
v3.24.0.1
ACQUISITION OF HEYDUDE (Schedule of Asset Acquired and Liabilities Assumed) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2023
Dec. 31, 2023
Dec. 31, 2022
Feb. 17, 2022
Dec. 31, 2021
Business Acquisition [Line Items]          
Goodwill   $ 711,588 $ 714,814   $ 1,600
Goodwill valuation adjustments increase (decrease)   (3,274)      
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  
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 adjustments increase (decrease) $ 3,300        
HEYDUDE | Adjustment 1          
Business Acquisition [Line Items]          
Increase in valuation adjustment, prepaid expenses and other assets 3,500        
Goodwill valuation adjustments increase (decrease) (3,500)        
HEYDUDE | Adjustment 2          
Business Acquisition [Line Items]          
Goodwill valuation adjustments increase (decrease) 200        
Increase in valuation adjustment, accounts payable $ 200        
v3.24.0.1
ACQUISITION OF HEYDUDE (Schedule of Intangible Assets) (Details) - HEYDUDE
$ in Thousands
Feb. 17, 2022
USD ($)
Business Acquisition [Line Items]  
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
v3.24.0.1
ACQUISITION OF HEYDUDE (Proforma Information) (Details) - HEYDUDE - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Business Acquisition [Line Items]    
Revenues $ 3,645,291 $ 2,894,094
Net income $ 614,463 $ 706,853
v3.24.0.1
PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Property, plant and equipment [Line Items]    
Property and equipment $ 358,825 $ 278,665
Less: Accumulated depreciation and amortization (120,510) (97,136)
Property and equipment, net 238,315 181,529
Machinery and equipment    
Property, plant and equipment [Line Items]    
Property and equipment 163,919 146,821
Leasehold improvements    
Property, plant and equipment [Line Items]    
Property and equipment 149,132 76,363
Furniture, fixtures, and other    
Property, plant and equipment [Line Items]    
Property and equipment 32,356 26,782
Construction-in-progress    
Property, plant and equipment [Line Items]    
Property and equipment $ 13,418 $ 28,699
v3.24.0.1
PROPERTY AND EQUIPMENT, NET (Schedule of Depreciation and Amortization Expense) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, plant and equipment [Line Items]      
Total depreciation and amortization expense $ 31,685 $ 19,642 $ 14,942
Cost of sales      
Property, plant and equipment [Line Items]      
Total depreciation and amortization expense 18,809 10,043 6,234
Selling, general and administrative expenses      
Property, plant and equipment [Line Items]      
Total depreciation and amortization expense $ 12,876 $ 9,599 $ 8,708
v3.24.0.1
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Abstract]      
Net losses on disposal of property and equipment and intangible assets $ 0.4 $ 1.0 $ 0.3
v3.24.0.1
GOODWILL AND INTANGIBLE ASSETS, NET (Goodwill Rollforward) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Goodwill [Roll Forward]    
Goodwill, beginning balance $ 714,814 $ 1,600
HEYDUDE Acquisition   713,308
HEYDUDE Valuation Adjustment (3,274)  
Foreign currency translation 48 (94)
Goodwill, ending balance $ 711,588 $ 714,814
v3.24.0.1
GOODWILL AND INTANGIBLE ASSETS, NET (Goodwill) (Narrative) (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Accumulated goodwill impairment $ 0.8
v3.24.0.1
GOODWILL AND INTANGIBLE ASSETS, NET (Summary of Intangible Assets) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Accumulated amortization $ (138,611) $ (125,014)
Total 212,787  
Intangible assets, gross 1,931,173 1,925,181
Intangible assets, net $ 1,792,562 1,800,167
Weighted average remaining useful life of intangible assets 13 years 7 months 6 days  
HEYDUDE trademark    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets $ 1,570,000 1,570,000
In progress    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 8,562 7,537
Other    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 1,213 225
Capitalized software    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount of finite-lived intangible assets 136,343 132,295
Accumulated amortization (108,675) (109,227)
Total 27,668 23,068
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount of finite-lived intangible assets 210,000 210,000
Accumulated amortization (26,250) (12,250)
Total 183,750 197,750
Patents, copyrights, and trademarks    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount of finite-lived intangible assets 5,055 5,124
Accumulated amortization (3,686) (3,537)
Total $ 1,369 $ 1,587
v3.24.0.1
GOODWILL AND INTANGIBLE ASSETS, NET (Schedule of Intangible Asset Amortization Expense) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]      
Total amortization expense $ 22,619 $ 19,587 $ 17,034
Cost of sales      
Finite-Lived Intangible Assets [Line Items]      
Total amortization expense 3,080 2,366 4,779
Selling, general and administrative expenses      
Finite-Lived Intangible Assets [Line Items]      
Total amortization expense $ 19,539 $ 17,221 $ 12,255
v3.24.0.1
GOODWILL AND INTANGIBLE ASSETS, NET (Schedule Of Future Amortization Of Intangible Assets) (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2024 $ 22,778
2025 21,582
2026 20,073
2027 18,080
2028 16,060
Thereafter 114,214
Total $ 212,787
v3.24.0.1
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Payables and Accruals [Abstract]    
Professional services $ 80,986 $ 45,351
Accrued compensation and benefits 70,245 55,474
Return liabilities 38,644 27,651
Sales/use and value added taxes payable 23,768 27,249
Fulfillment, freight, and duties 22,269 41,646
Royalties payable and deferred revenue 15,053 10,528
Accrued rent and occupancy 8,246 8,972
Accrued legal fees 2,546 2,602
Other 24,014 19,951
Total accrued expenses and other liabilities $ 285,771 $ 239,424
v3.24.0.1
LEASES (Right-of-Use Assets and Operating Lease Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Assets:    
Right-of-use assets $ 287,440 $ 239,905
Liabilities:    
Current operating lease liabilities 62,267 57,456
Long-term operating lease liabilities 269,769 215,119
Total operating lease liabilities $ 332,036 $ 272,575
v3.24.0.1
LEASES (Lease Costs and Other Information) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]      
Operating lease cost $ 79,543 $ 66,012 $ 58,283
Short-term lease cost 13,258 9,590  
Variable lease cost 44,706 37,536  
Total lease costs $ 137,507 $ 113,138  
v3.24.0.1
LEASES (Narrative) (Details)
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
Weighted average remaining lease term 7 years 1 month 6 days 6 years 10 months 24 days
Weighted average discount rate 5.50% 3.90%
v3.24.0.1
LEASES (Maturities of Company's Operating Lease Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
2024 $ 71,524  
2025 62,169  
2026 51,131  
2027 45,008  
2028 36,156  
Thereafter 139,898  
Total future minimum lease payments 405,886  
Less: imputed interest (73,850)  
Total operating lease liabilities $ 332,036 $ 272,575
v3.24.0.1
FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($)
Dec. 31, 2022
Feb. 17, 2022
Line of Credit | Term Loan B Facility    
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]    
Borrowing capacity under revolving credit facility $ 2,000,000,000 $ 2,000,000,000
v3.24.0.1
FAIR VALUE MEASUREMENTS (Schedule of Assets and Liabilities at Fair Value) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Carrying Value | Line of Credit | Term Loan B Facility    
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]    
Outstanding borrowings $ 820,000 $ 1,675,000
Carrying Value | Line of Credit | Revolving Facility    
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]    
Outstanding borrowings 190,000 0
Carrying Value | 2029 Notes | Senior Notes    
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]    
Outstanding borrowings 350,000 350,000
Carrying Value | 2031 Notes | Senior Notes    
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]    
Outstanding borrowings 350,000 350,000
Fair Value | Line of Credit | Term Loan B Facility    
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]    
Outstanding borrowings 824,100 1,642,547
Fair Value | Line of Credit | Revolving Facility    
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]    
Outstanding borrowings 190,000 0
Fair Value | 2029 Notes | Senior Notes    
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]    
Outstanding borrowings 313,987 297,596
Fair Value | 2031 Notes | Senior Notes    
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]    
Outstanding borrowings $ 296,742 $ 284,240
v3.24.0.1
FAIR VALUE MEASUREMENTS (Impairments) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]      
Asset impairments $ 9,287 $ 0 $ 0
Corporate Headquarters Relocation      
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]      
Right-of-use assets impairment 9,300    
Nonrecurring | Level 3 | Fair Value      
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]      
Leasehold improvement assets impairment 1,007 0 0
Right-of-use assets impairment 8,280 0 0
Asset impairments $ 9,287 $ 0 $ 0
v3.24.0.1
DERIVATIVE FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Foreign currency cash flow hedge loss reclassified to earnings, net $ (0.8) $ (0.5)
Foreign currency cash flow hedge loss to be reclassified during next 12 months $ (0.1)  
v3.24.0.1
DERIVATIVE FINANCIAL INSTRUMENTS (Fair Value of Derivative Assets and Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Foreign Currency Derivatives [Abstract]    
Derivative liability, statement of financial position [Extensible Enumeration] Accrued expenses and other liabilities  
Derivative asset, statement of financial position [Extensible Enumeration] Prepaid expenses and other assets  
Level 2    
Foreign Currency Derivatives [Abstract]    
Derivative assets - foreign currency forward contract derivatives $ 1,445 $ 348
Derivative liabilities - foreign currency forward contract derivatives (15) (1,131)
Level 2 | Not Designated as Hedging Instrument    
Foreign Currency Derivatives [Abstract]    
Derivative assets - forward foreign currency exchange contracts 2,850 345
Derivative liabilities - forward foreign currency exchange contracts (1,333) (360)
Level 2 | Designated as Hedging Instrument    
Foreign Currency Derivatives [Abstract]    
Derivative assets - forward foreign currency exchange contracts 2,992 693
Derivative asset, netting of counterparty contracts (1,547) (345)
Derivative liabilities - forward foreign currency exchange contracts (1,562) (1,476)
Derivative liabilities - netting of counterparty contracts 1,547 345
Level 2 | Designated as Hedging Instrument | Foreign Exchange Contract    
Foreign Currency Derivatives [Abstract]    
Derivative assets - forward foreign currency exchange contracts 142 348
Derivative liabilities - forward foreign currency exchange contracts $ (229) $ (1,116)
v3.24.0.1
DERIVATIVE FINANCIAL INSTRUMENTS (Summary Of Derivative Financial Instruments Notional Amounts On Outstanding Positions) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Derivatives, Fair Value [Line Items]    
Notional $ 185,009 $ 193,065
Fair Value 1,430 (783)
Not Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional 105,879 98,638
Fair Value 1,517 (15)
Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional 79,130 94,427
Fair Value (87) (768)
Singapore Dollar | Not Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional 41,441 26,760
Fair Value 1,507 207
Euro | Not Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional 30,757 5,068
Fair Value 1,343 (29)
Euro | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional 40,014 51,914
Fair Value (186) (360)
British Pound Sterling | Not Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional 17,662 14,509
Fair Value (835) 128
British Pound Sterling | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional 22,320 23,025
Fair Value 135 235
South Korean Won | Not Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional 9,759 18,403
Fair Value (428) (320)
South Korean Won | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional 11,093 12,285
Fair Value (42) (756)
Indian Rupee | Not Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional 5,291 24,945
Fair Value (23) (10)
Indian Rupee | Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional 5,703 7,203
Fair Value 6 113
Japanese Yen | Not Designated as Hedging Instrument    
Derivatives, Fair Value [Line Items]    
Notional 969 8,953
Fair Value $ (47) $ 9
v3.24.0.1
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule of Gain (Losses) from Foreign Currency Transactions and Derivative Contracts) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Derivatives, Fair Value [Line Items]      
Foreign currency gains (losses), net $ (1,240) $ 3,228 $ (140)
Not Designated as Hedging Instrument      
Derivatives, Fair Value [Line Items]      
Foreign currency transaction gains (losses) (1,992) (2,858) 100
Foreign currency forward exchange contracts gains (losses) 752 6,086 (240)
Foreign currency gains (losses), net $ (1,240) $ 3,228 $ (140)
v3.24.0.1
BORROWINGS (Components Of Our Consolidated Debt And Capital Lease Obligations) (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
Total face value of long-term borrowings $ 1,710,000,000 $ 2,375,000,000
Unamortized issuance costs 49,004,000 56,973,000
Current portion of long-term borrowings 23,328,000 24,362,000
Long-term borrowings 1,640,996,000 2,298,027,000
Senior Notes | 2029 Notes    
Debt Instrument [Line Items]    
Aggregate principal amount $ 350,000,000  
Stated Interest Rate 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]    
Aggregate principal amount $ 350,000,000  
Stated Interest Rate 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 820,000,000 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 $ 190,000,000 $ 0
v3.24.0.1
BORROWINGS (Revolving Credit Facilities and Notes Payable) (Details)
¥ in Millions
 1 Months Ended 12 Months Ended
Feb. 13, 2024
USD ($)
Feb. 17, 2022
USD ($)
Aug. 31, 2021
USD ($)
Mar. 31, 2021
Jul. 31, 2019
USD ($)
Dec. 31, 2023
USD ($)
facility
Aug. 08, 2023
USD ($)
Jan. 31, 2023
USD ($)
Jan. 31, 2023
CNY (¥)
Dec. 31, 2022
USD ($)
Line of Credit Facility [Line Items]                    
Total face value of long-term borrowings           $ 1,710,000,000       $ 2,375,000,000
Number of credit facility | facility           2        
Accounts Payable                    
Line of Credit Facility [Line Items]                    
Interest payable           $ 10,700,000       10,800,000
Revolving Facility | Senior Revolving Credit Facility                    
Line of Credit Facility [Line Items]                    
Borrowing capacity under revolving credit facility         $ 750,000,000          
Additional borrowing capacity available under revolving credit facility         $ 250,000,000          
Minimum interest coverage ratio         3.00          
Minimum borrowing capacity available for certain acquisitions         $ 40,000,000          
Outstanding borrowings on the facility           190,000,000        
Outstanding letters of credit           1,300,000        
Available borrowing capacity           558,700,000       748,700,000
Revolving Facility | Senior Revolving Credit Facility | Debt Instrument, Covenant Period Two                    
Line of Credit Facility [Line Items]                    
Maximum leverage coverage ratio         4.00          
Revolving Facility | Senior Revolving Credit Facility | Debt Instrument, Covenant Period Three                    
Line of Credit Facility [Line Items]                    
Maximum leverage coverage ratio         3.75          
Revolving Facility | Senior Revolving Credit Facility | Debt Instrument, Covenant Period Four                    
Line of Credit Facility [Line Items]                    
Maximum leverage coverage ratio         3.50          
Revolving Facility | Senior Revolving Credit Facility | Debt Instrument, Covenant Period Five                    
Line of Credit Facility [Line Items]                    
Maximum leverage coverage ratio         3.25          
Revolving Facility | Senior Revolving Credit Facility | Fed Funds Rate                    
Line of Credit Facility [Line Items]                    
Margin on variable rate         0.25%          
Revolving Facility | Senior Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)                    
Line of Credit Facility [Line Items]                    
Margin on variable rate         1.00%          
Revolving Facility | Senior Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Minimum                    
Line of Credit Facility [Line Items]                    
Margin on variable rate         1.40%          
Revolving Facility | Senior Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Maximum                    
Line of Credit Facility [Line Items]                    
Margin on variable rate         2.025%          
Revolving Facility | Senior Revolving Credit Facility | Base Rate | Minimum                    
Line of Credit Facility [Line Items]                    
Margin on variable rate         0.25%          
Revolving Facility | Senior Revolving Credit Facility | Base Rate | Maximum                    
Line of Credit Facility [Line Items]                    
Margin on variable rate         0.875%          
Revolving Facility | Senior Revolving Credit Facility | Simple Secured Overnight Financing Rate (SOFR) | Minimum                    
Line of Credit Facility [Line Items]                    
Margin on variable rate         1.35%          
Revolving Facility | Senior Revolving Credit Facility | Simple Secured Overnight Financing Rate (SOFR) | Maximum                    
Line of Credit Facility [Line Items]                    
Margin on variable rate         1.975%          
Revolving Facility | Asia Pacific CMBC Revolving Credit Facility                    
Line of Credit Facility [Line Items]                    
Current borrowing capacity               $ 1,500,000 ¥ 10.0  
Revolving Facility | Asia Pacific Citybank Revolving Credit Facility                    
Line of Credit Facility [Line Items]                    
Current borrowing capacity           $ 15,000,000        
Revolving Facility | Asia Pacific Citybank Revolving Credit Facility | Prime Rate                    
Line of Credit Facility [Line Items]                    
Margin on variable rate           0.65%        
Revolving Facility | Asia Pacific Revolving Credit Facility                    
Line of Credit Facility [Line Items]                    
Outstanding borrowings           $ 3,300,000       4,300,000
Line of Credit | Revolving Facility                    
Line of Credit Facility [Line Items]                    
Total face value of long-term borrowings           190,000,000       0
Line of Credit | Term Loan B Facility                    
Line of Credit Facility [Line Items]                    
Borrowing capacity under revolving credit facility   $ 2,000,000,000               2,000,000,000
Available borrowing capacity           0        
Debt instrument, periodic payment, principal           5,000,000        
Total face value of long-term borrowings           820,000,000       1,675,000,000
Line of Credit | Term Loan B Facility | Secured Overnight Financing Rate (SOFR)                    
Line of Credit Facility [Line Items]                    
Margin on variable rate   3.00%                
Line of Credit | Term Loan B Facility | Secured Overnight Financing Rate (SOFR) | Subsequent event                    
Line of Credit Facility [Line Items]                    
Margin on variable rate 2.25%                  
Line of Credit | Term Loan B Facility | Base Rate                    
Line of Credit Facility [Line Items]                    
Margin on variable rate   2.00%                
Line of Credit | Term Loan B Facility | Base Rate | Subsequent event                    
Line of Credit Facility [Line Items]                    
Margin on variable rate 1.25%                  
Line of Credit | Term Loan B Credit Agreement                    
Line of Credit Facility [Line Items]                    
Borrowing capacity under revolving credit facility             $ 1,180,000,000      
Line of Credit | Term Loan B Credit Agreement | Subsequent event                    
Line of Credit Facility [Line Items]                    
Borrowing capacity under revolving credit facility $ 820,000,000                  
Total face value of long-term borrowings $ 820,000,000                  
Senior Notes | 2029 Notes                    
Line of Credit Facility [Line Items]                    
Total face value of long-term borrowings           350,000,000       350,000,000
Aggregate principal amount           $ 350,000,000        
Stated Interest Rate           4.25%        
Senior Notes | 2029 Notes | Debt Instrument, Redemption, Period One                    
Line of Credit Facility [Line Items]                    
Redemption price, percentage       100.00%            
Senior Notes | 2029 Notes | Debt Instrument, Redemption, Period Two                    
Line of Credit Facility [Line Items]                    
Redemption price, percentage       100.00%            
Senior Notes | 2029 Notes | Debt Instrument, Redemption, Period Three                    
Line of Credit Facility [Line Items]                    
Redemption price, percentage       104.25%            
Percentage of principal amount redeemable       40.00%            
Senior Notes | 2031 Notes                    
Line of Credit Facility [Line Items]                    
Total face value of long-term borrowings           $ 350,000,000       $ 350,000,000
Aggregate principal amount           $ 350,000,000        
Stated Interest Rate           4.125%        
Guarantor     $ 25,000,000              
Senior Notes | 2031 Notes | Debt Instrument, Redemption, Period One                    
Line of Credit Facility [Line Items]                    
Redemption price, percentage     100.00%              
Senior Notes | 2031 Notes | Debt Instrument, Redemption, Period Two                    
Line of Credit Facility [Line Items]                    
Redemption price, percentage     100.00%              
Senior Notes | 2031 Notes | Debt Instrument, Redemption, Period Three                    
Line of Credit Facility [Line Items]                    
Redemption price, percentage     104.125%              
Percentage of principal amount redeemable     40.00%              
v3.24.0.1
EQUITY (Details)
 12 Months Ended
Dec. 31, 2023
USD ($)
vote
class_of_stock
$ / shares
shares
Dec. 31, 2022
$ / shares
shares
Dec. 31, 2021
USD ($)
shares
Sep. 23, 2021
USD ($)
Apr. 23, 2021
USD ($)
Class of Stock [Line Items]          
Number of classes of stock | class_of_stock 1        
Common stock, par value (in dollars per share) | $ / shares $ 0.001 $ 0.001      
Common stock authorized (in shares) 250,000,000        
Number of votes entitled to for each common share | vote 1        
Repurchases of common stock | $ $ 176,282,000   $ 1,000,000,000    
Excise tax payable | $ $ 1,300,000        
Preferred stock authorized (in shares) 5,000,000        
Common Stock          
Class of Stock [Line Items]          
Common stock authorized for repurchase | $       $ 1,000,000,000 $ 1,000,000,000
Stock repurchased during period (in shares) 1,681,000 0 8,242,000    
Repurchases of common stock | $ $ 175,000,000        
Remaining authorization to repurchase | $ $ 875,000,000        
Series A Convertible Preferred Stock          
Class of Stock [Line Items]          
Preferred stock authorized (in shares) 1,000,000        
Preferred stock, par value (in dollars per share) | $ / shares $ 0.001        
Preferred stock issued (in shares) 0        
Preferred stock outstanding (in shares) 0        
v3.24.0.1
REVENUES (Revenue by Reportable Operating Segment and by Channel) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Revenues $ 3,962,347 $ 3,554,985 $ 2,313,416
Crocs Brand      
Disaggregation of Revenue [Line Items]      
Revenues 3,012,954 2,659,125 2,313,416
Crocs Brand | North America      
Disaggregation of Revenue [Line Items]      
Revenues 1,777,885 1,644,656 1,553,978
Crocs Brand | International      
Disaggregation of Revenue [Line Items]      
Revenues 1,235,069 1,014,469 759,438
HEYDUDE Brand      
Disaggregation of Revenue [Line Items]      
Revenues 949,393 895,860 0
Wholesale | Crocs Brand      
Disaggregation of Revenue [Line Items]      
Revenues 1,493,537 1,377,302 1,174,081
Wholesale | Crocs Brand | North America      
Disaggregation of Revenue [Line Items]      
Revenues 652,943 644,215 674,230
Wholesale | Crocs Brand | International      
Disaggregation of Revenue [Line Items]      
Revenues 840,594 733,087 499,851
Wholesale | HEYDUDE Brand      
Disaggregation of Revenue [Line Items]      
Revenues 566,937 574,140 0
Direct-to-consumer | Crocs Brand      
Disaggregation of Revenue [Line Items]      
Revenues 1,519,417 1,281,823 1,139,335
Direct-to-consumer | Crocs Brand | North America      
Disaggregation of Revenue [Line Items]      
Revenues 1,124,942 1,000,441 879,748
Direct-to-consumer | Crocs Brand | International      
Disaggregation of Revenue [Line Items]      
Revenues 394,475 281,382 259,587
Direct-to-consumer | HEYDUDE Brand      
Disaggregation of Revenue [Line Items]      
Revenues $ 382,456 $ 321,720 $ 0
v3.24.0.1
REVENUES (Narrative) (Details)
 12 Months Ended
Dec. 31, 2023
USD ($)
segment
distribution_channel
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Revenue from External Customer [Line Items]      
Number of reportable segments | segment 2    
Number of distribution channels | distribution_channel 2    
Advance Customer Deposits      
Revenue from External Customer [Line Items]      
Deferred revenues   $ 6,800,000  
Refund Liability      
Revenue from External Customer [Line Items]      
Deferred revenues $ 38,600,000 27,700,000  
Change in Estimate of Product Transfers | Wholesale      
Revenue from External Customer [Line Items]      
Increase (decrease) in revenues $ 0 $ 0 $ 0
v3.24.0.1
SHARE-BASED COMPENSATION (Narrative) (Details)
shares in Millions
Dec. 31, 2023
shares
Share-Based Payment Arrangement [Abstract]  
Shares available for future issuance (in shares) 3.6
v3.24.0.1
SHARE-BASED COMPENSATION (Stock Option Activity) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Number of Options      
Options outstanding at beginning of period (in shares) 210,000    
Granted (in shares) 0 0 0
Exercised (in shares) 0    
Forfeited or expired (in shares) 0    
Options outstanding at end of period (in shares) 210,000 210,000  
Exercisable at end of period (in shares) 210,000    
Vested at end of period (in shares) 210,000    
Weighted Average Exercise Price      
Beginning of period (in dollars per share) $ 7.44    
Granted (in dollars per share) 0    
Exercised (in dollars per share) 0    
Forfeited or expired (in dollars per share) 0    
End of period (in dollars per share) 7.44 $ 7.44  
Exercisable, weighted average exercise price at end of period (in dollars per share) 7.44    
Vested, weighted average exercise price at end of period (in dollars per share) $ 7.44    
Weighted Average Contractual Life (Years)      
Weighted average contractual life at beginning of period 3 years 3 months 10 days 4 years 3 months 10 days  
Exercisable, weighted average contractual life at end of period 3 years 3 months 10 days    
Vested, weighted average contractual life at end of period 3 years 3 months 10 days    
Aggregate Intrinsic Value      
Aggregate intrinsic value, outstanding $ 18,053 $ 21,208  
Exercisable, aggregate intrinsic value at end of period 18,053    
Vested, aggregate intrinsic value at end of period $ 18,053    
v3.24.0.1
SHARE-BASED COMPENSATION (Stock Option Activity Narrative) (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in shares) 0 0 0
Exercised (in shares) 0    
Stock Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Aggregate intrinsic value of options exercised   $ 400,000 $ 800,000
Proceeds from options exercised   $ 100,000 $ 200,000
Unrecognized share-based compensation expense related to unvested options $ 0    
Options vesting period 4 years    
Options expiration period 10 years    
Stock Options | Remaining Years Monthly Vesting      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Options vesting period 3 years    
v3.24.0.1
SHARE-BASED COMPENSATION (Restricted Stock Awards And Restricted Stock Units Activity Narrative) (Details)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
vesting_installment
$ / shares
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Restricted Stock Awards      
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items]      
RSAs and RSUs general vesting period 3 years    
Shares granted in period (in shares) 4    
Granted (in dollars per share) | $ / shares $ 105.95 $ 51.13 $ 88.68
Grant date fair value of awards | $ $ 0.5 $ 0.3 $ 0.4
Unrecognized share-based compensation expense related to unvested awards | $ $ 0.2    
Amortized over a weighted average period 6 months    
Awards vested in period (in shares) 7    
Restricted Stock Units      
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items]      
Shares granted in period (in shares) 440    
Granted (in dollars per share) | $ / shares $ 122.97 $ 76.06 $ 76.28
Grant date fair value of awards | $ $ 31.1 $ 29.7 $ 24.9
Awards vested in period (in shares) 558    
Time-based RSUs      
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items]      
Number of annual vesting installments | vesting_installment 3    
Shares granted in period (in shares) 200 200 200
Unrecognized share-based compensation expense related to unvested awards | $ $ 24.7    
Amortized over a weighted average period 1 year 8 months 12 days    
Awards vested in period (in shares) 300 300 400
Performance-based RSUs      
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items]      
Number of annual vesting installments | vesting_installment 3    
Shares granted in period (in shares) 200 300 500
Unrecognized share-based compensation expense related to unvested awards | $ $ 8.9    
Amortized over a weighted average period 1 year 6 months    
Awards vested in period (in shares) 300 400 500
Performance-based RSUs | Minimum      
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items]      
Percentage of performance range of RSUs that may be awarded (percent) 0.00%    
Performance-based RSUs | Maximum      
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items]      
Percentage of performance range of RSUs that may be awarded (percent) 200.00%    
v3.24.0.1
SHARE-BASED COMPENSATION (Schedule Of Restricted Stock Award And Restricted Stock Unit Activity) (Details) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restricted Stock Awards      
Shares      
Unvested beginning balance (in shares) 5    
Granted (in shares) 4    
Vested (in shares) (7)    
Forfeited (in shares) 0    
Unvested ending balance (in shares) 2 5  
Weighted Average Grant Date Fair Value      
Beginning balance (in dollars per share) $ 51.13    
Granted (in dollars per share) 105.95 $ 51.13 $ 88.68
Vested (in dollars per share) 69.62    
Forfeited (in dollars per share) 0    
Ending balance (in dollars per share) $ 105.95 $ 51.13  
Restricted Stock Units      
Shares      
Unvested beginning balance (in shares) 1,181    
Granted (in shares) 440    
Vested (in shares) (558)    
Forfeited (in shares) (216)    
Unvested ending balance (in shares) 847 1,181  
Weighted Average Grant Date Fair Value      
Beginning balance (in dollars per share) $ 62.93    
Granted (in dollars per share) 122.97 $ 76.06 $ 76.28
Vested (in dollars per share) 55.68    
Forfeited (in dollars per share) 83.58    
Ending balance (in dollars per share) $ 94.05 $ 62.93  
v3.24.0.1
INCOME TAXES (Narrative) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating Loss Carryforwards [Line Items]        
Unrecognized tax benefit $ 556,482 $ 219,363 $ 218,399 $ 206,209
Net increase (decrease) in deferred tax asset valuation allowance 155,400 (1,700)    
Net expense related to increase in unrecognized tax benefits 330,800      
Income tax penalties and interest 3,200 3,800 1,000  
Interest from settlements, lapse of statutes, and change in certainty released 100      
Cumulative accrued balance of penalties and interest 8,800 5,600 2,000  
Unrecognized tax benefits that would impact effective tax rate 562,000 222,500 $ 218,700  
Intra-Entity Transfer of Certain Intellectual Property Rights        
Operating Loss Carryforwards [Line Items]        
Deferred tax asset, net 611,400      
Unrecognized tax benefit 318,600      
Uncertain tax positions not to be realizable 164,000      
Net deferred tax assets 128,900      
Net increase (decrease) in deferred tax asset intangible assets 352,400      
Net increase (decrease) in deferred tax asset valuation allowance 163,900      
Net increase (decrease) in deferred tax liabilities intangible assets (259,000)      
Net expense related to increase in unrecognized tax benefits 318,600      
U.S. State Tax        
Operating Loss Carryforwards [Line Items]        
Tax credit carryforwards   0    
Aggregate tax loss carryforward 300 1,400    
Foreign Taxing Authority        
Operating Loss Carryforwards [Line Items]        
Tax credit carryforwards 3,800      
Aggregate tax loss carryforward 73,300 66,400    
Valuation Allowance Related To Income Tax Benefit        
Operating Loss Carryforwards [Line Items]        
Net increase (decrease) in deferred tax asset valuation allowance 156,300      
Impact of Unrecorded Tax Attributes Related to Changes in Cumulative Translation Adjustments        
Operating Loss Carryforwards [Line Items]        
Net increase (decrease) in deferred tax asset valuation allowance $ (900) (2,800)    
Valuation Allowance Related To Income Tax Expense        
Operating Loss Carryforwards [Line Items]        
Net increase (decrease) in deferred tax asset valuation allowance   $ (4,400)    
v3.24.0.1
INCOME TAXES (Components of Income Tax Expense) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income before taxes:      
U.S.  $ 309,098 $ 312,501 $ 510,706
Foreign 567,174 406,007 153,143
Income before income taxes 876,272 718,508 663,849
Current income taxes:      
U.S. federal 85,075 76,092 94,548
U.S. state 21,884 19,257 28,460
Foreign 387,066 87,760 56,430
Total current income taxes 494,025 183,109 179,438
Deferred income taxes:      
U.S. federal (12,873) (12,032) 791
U.S. state (1,662) 861 32
Foreign (395,784) 6,411 (242,106)
Total deferred income taxes (410,319) (4,760) (241,283)
Total income tax expense (benefit) $ 83,706 $ 178,349 $ (61,845)
v3.24.0.1
INCOME TAXES (Effective Income Tax Reconciliation) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income tax expense and rate attributable to:      
Federal income tax rate $ 184,017 $ 150,887 $ 139,408
State income tax rate, net of federal benefit 16,854 15,981 22,952
Foreign income tax rate differential 31,495 12,405 18,890
GILTI, net 44,003 4,834 14,157
Non-deductible / non-taxable items (1,129) 3,743 9,637
Change in valuation allowance 156,312 4,414 (192,337)
U.S. tax on foreign earnings 1,752 16,822 0
Foreign tax credits (55,648) (28,087) (19,925)
Research and development credits (6,754) (5,488) (13,104)
Uncertain tax positions 330,819 3,952 21,341
Share-based compensation (2,097) (1,231) (11,930)
Intra-Entity IP Transfer (611,403) 0 (41,858)
Enacted changes in tax law 0 0 (9,554)
Other (4,515) 117 478
Total income tax expense (benefit) $ 83,706 $ 178,349 $ (61,845)
Income tax expense and rate attributable to (percent):      
Federal income tax rate 21.00% 21.00% 21.00%
State income tax rate, net of federal benefit 1.90% 2.20% 3.50%
Foreign income tax rate differential 3.60% 1.70% 2.80%
GILTI, net 5.00% 0.70% 2.10%
Non-deductible / non-taxable items (0.10%) 0.50% 1.50%
Change in valuation allowance 17.80% 0.60% (29.00%)
U.S. tax on foreign earnings 0.20% 2.30% 0.00%
Foreign tax credits (6.40%) (3.90%) (3.00%)
Research and development credits (0.80%) (0.80%) (2.00%)
Uncertain tax positions 37.80% 0.60% 3.20%
Share-based compensation (0.20%) (0.20%) (1.80%)
Intra-Entity IP Transfer (69.80%) 0.00% (6.30%)
Enacted changes in tax law 0.00% 0.00% (1.40%)
Other (0.40%) 0.10% 0.10%
Effective income tax expense and rate 9.60% 24.80% (9.30%)
v3.24.0.1
INCOME TAXES (Deferred Income Tax Assets and Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Non-current deferred tax assets:    
Share-based compensation expense $ 3,248 $ 3,130
Accruals, reserves, and other expenses 27,914 24,324
Net operating loss 47,951 21,455
Intangible assets 737,976 438,712
Foreign tax credit 28,053 45,746
Operating lease liabilities 71,012 55,624
Other 43,661 25,354
Valuation allowance (183,545) (28,118)
Total non-current deferred tax assets 776,270 586,227
Non-current deferred tax liabilities:    
Unrealized gain on foreign currency 0 (1,760)
Property and equipment (13,948) (2,381)
Right-of-use assets (59,806) (47,641)
Intangible assets (46,177) (307,474)
Other (1,280) (723)
Total non-current deferred tax liabilities $ (121,211) $ (359,979)
v3.24.0.1
INCOME TAXES (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Unrecognized tax benefit as of January 1 $ 219,363 $ 218,399 $ 206,209
Additions in tax positions taken in prior period 3,690 1,697 6,169
Reductions in tax positions taken in prior period (7) (904) (963)
Additions in tax positions taken in current period 325,058 2,948 23,061
Settlements 0 (375) (763)
Lapse of statute of limitations (148) (510) (342)
Current year acquisitions 0 10,426 0
Cumulative foreign currency translation adjustment 8,526    
Cumulative foreign currency translation adjustment   (12,318) (14,972)
Unrecognized tax benefit as of December 31 $ 556,482 $ 219,363 $ 218,399
v3.24.0.1
EARNINGS PER SHARE (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Numerator:      
Net income attributable to common stockholders $ 792,566 $ 540,159 $ 725,694
Denominator:      
Weighted average common shares outstanding - basic (in shares) 61,386 61,220 62,464
Plus: dilutive effect of stock options and unvested restricted stock units (in shares) 566 786 1,254
Weighted average common shares outstanding - diluted (in shares) 61,952 62,006 63,718
Net income per common share:      
Basic (in dollars per share) $ 12.91 $ 8.82 $ 11.62
Diluted (in dollars per share) $ 12.79 $ 8.71 $ 11.39
v3.24.0.1
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Purchase commitment    
Purchase Commitment, Excluding Long-term Commitment [Line Items]    
Purchase commitments with third party manufacturers $ 344.3 $ 380.5
v3.24.0.1
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION (Narrative) (Details) - segment
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]    
Number of operating segments 2  
Property, Plant and Equipment | Geographic Concentration Risk | Netherlands    
Segment Reporting Information [Line Items]    
Percentage of consolidated revenues (percent) 12.00% 15.00%
v3.24.0.1
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION (Information Related To Reportable Operating Business Segments) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Segment Reporting Information [Line Items]      
Total consolidated revenues $ 3,962,347 $ 3,554,985 $ 2,313,416
Income (loss) from operations 1,036,783 850,756 683,064
Foreign currency gains (losses), net (1,240) 3,228 (140)
Interest income 2,406 1,020 775
Interest expense (161,351) (136,158) (21,647)
Other income (expense), net (326) (338) 1,797
Income before income taxes 876,272 718,508 663,849
Total consolidated depreciation and amortization 54,304 39,229 31,976
Total property and equipment, net 238,315 181,529  
United States      
Segment Reporting Information [Line Items]      
Total consolidated revenues 2,573,663 2,438,923 1,507,482
Total property and equipment, net 200,869 148,078  
International      
Segment Reporting Information [Line Items]      
Total consolidated revenues 1,388,684 1,116,062 805,934
Total property and equipment, net 37,446 33,451  
Crocs Brand      
Segment Reporting Information [Line Items]      
Total consolidated revenues 3,012,954 2,659,125 2,313,416
HEYDUDE Brand      
Segment Reporting Information [Line Items]      
Total consolidated revenues 949,393 895,860 0
Reportable Operating Segments | Crocs Brand      
Segment Reporting Information [Line Items]      
Total consolidated revenues 3,012,954 2,659,125 2,313,416
Income (loss) from operations 1,079,330 852,025 861,394
Total consolidated depreciation and amortization 31,950 18,877 16,931
Reportable Operating Segments | HEYDUDE Brand      
Segment Reporting Information [Line Items]      
Total consolidated revenues 949,393 895,860 0
Income (loss) from operations 212,386 211,361 0
Total consolidated depreciation and amortization 14,200 12,248 0
Enterprise corporate      
Segment Reporting Information [Line Items]      
Income (loss) from operations (254,933) (212,630) (178,330)
Total consolidated depreciation and amortization $ 8,154 $ 8,104 $ 15,045
v3.24.0.1
EMPLOYEE BENEFIT PLAN (Details) - Defined Contribution Plan - Defined Contribution Benefit Plan - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Defined Contribution Plan Disclosure [Line Items]      
Employees' vesting percentage in matching contributions (percent) 100.00%    
Contributions made by the company under the Plan $ 12.6 $ 9.0 $ 7.4
Tranches One      
Defined Contribution Plan Disclosure [Line Items]      
Employer matching contribution (percent) 100.00%    
Employee's salary contribution (percent) 3.00%    
Tranches Two      
Defined Contribution Plan Disclosure [Line Items]      
Employer matching contribution (percent) 50.00%    
Employee's salary contribution (percent) 2.00%    
v3.24.0.1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 24,493 $ 20,715 $ 21,093
Charged to Costs and Expenses 283,738 199,751 153,571
Deductions (280,640) (195,973) (153,949)
Balance at End of Period 27,591 24,493 20,715
Allowance for doubtful accounts      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 10,513 7,828 11,154
Charged to Costs and Expenses 3,567 1,101 0
Deductions (453) 1,584 (3,326)
Balance at End of Period 13,627 10,513 7,828
Reserve for sales returns and allowances      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 8,877 9,606 5,782
Charged to Costs and Expenses 271,990 192,543 148,893
Deductions (272,739) (193,272) (145,069)
Balance at End of Period 8,128 8,877 9,606
Reserve for unapplied rebates      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 5,103 3,281 4,157
Charged to Costs and Expenses 8,181 6,107 4,678
Deductions (7,448) (4,285) (5,554)
Balance at End of Period $ 5,836 $ 5,103 $ 3,281