CROCS, INC., 10-K filed on 2/16/2022
Annual Report
v3.22.0.1
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2021
Feb. 09, 2022
Jun. 30, 2021
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
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 13601 Via Varra    
Entity Address, City or Town Broomfield    
Entity Address, State or Province CO    
Entity Address, Postal Zip Code 80020    
City Area Code 303    
Local Phone Number 848-7000    
Title of 12(b) Security Common Stock, par value $0.001 per share    
Trading Symbol CROX    
Security Exchange Name NASDAQ    
Entity 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    
Entity Shell Company false    
Entity Public Float     $ 4.6
Entity Common Stock, Shares Outstanding   58,353,973  
Documents Incorporated by Reference Part III incorporates certain information by reference from the registrant’s proxy statement for the 2022 annual meeting of stockholders to be filed no later than 120 days after the end of the registrant’s fiscal year ended December 31, 2021.    
Amendment Flag false    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2021    
Entity Central Index Key 0001334036    
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Audit Information
 12 Months Ended
Dec. 31, 2021
Audit Information [Abstract]  
Auditor Name Deloitte & Touche LLP
Auditor Location Denver, Colorado
Auditor Firm ID 34
v3.22.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Statement [Abstract]      
Revenues $ 2,313,416 $ 1,385,951 $ 1,230,593
Cost of sales 893,196 636,003 613,537
Gross profit 1,420,220 749,948 617,056
Selling, general and administrative expenses 737,156 514,753 488,407
Asset impairments 0 21,071 0
Income from operations 683,064 214,124 128,649
Foreign currency losses, net (140) (1,128) (1,323)
Interest income 775 215 601
Interest expense (21,647) (6,742) (8,636)
Other income, net 1,797 510 31
Income before income taxes 663,849 206,979 119,322
Income tax benefit (61,845) (105,882) (175)
Net income $ 725,694 $ 312,861 $ 119,497
Net income per common share:      
Basic (in dollars per share) $ 11.62 $ 4.64 $ 1.70
Diluted (in dollars per share) $ 11.39 $ 4.56 $ 1.66
Weighted average common shares outstanding:      
Basic (shares) 62,464 67,386 70,357
Diluted (shares) 63,718 68,544 71,771
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Net income $ 725,694 $ 312,861 $ 119,497
Other comprehensive income:      
Foreign currency gains (losses), net (20,484) 2,189 (3,659)
Reclassification of foreign currency translation loss to income [1] 0 (164) (68)
Total comprehensive income $ 705,210 $ 314,886 $ 115,770
[1] Represents the reclassification of cumulative foreign currency translation adjustment upon liquidation of foreign subsidiaries during the year ended December 31, 2020, and upon closure of manufacturing operations during the year ended December 31, 2019, both of which are 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, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 213,197 $ 135,802
Restricted cash — current 65 1,542
Accounts receivable, net of allowances of $20,715 and $21,093, respectively 182,629 149,847
Inventories 213,520 175,121
Income taxes receivable 22,301 1,857
Other receivables 12,252 10,816
Prepaid expenses and other assets 22,605 17,856
Total current assets 666,569 492,841
Property and equipment, net 108,398 57,467
Intangible assets, net 28,802 37,636
Goodwill 1,600 1,719
Deferred tax assets, net 567,201 350,784
Restricted cash 3,663 1,929
Right-of-use assets 160,768 167,421
Other assets 8,067 8,926
Total assets 1,545,068 1,118,723
Current liabilities:    
Accounts payable 162,145 112,778
Accrued expenses and other liabilities 166,887 126,704
Income taxes payable 16,279 5,038
Current operating lease liabilities 42,932 47,064
Total current liabilities 388,243 291,584
Long-term income taxes payable 219,744 205,974
Long-term borrowings 771,390 180,000
Long-term operating lease liabilities 149,237 146,401
Other liabilities 2,372 4,131
Total liabilities 1,530,986 828,090
Commitments and contingencies
Stockholders’ equity:    
Common stock, par value $0.001 per share, 105.9 million and 105.0 million issued, 58.3 million and 65.9 million shares outstanding, respectively 106 105
Treasury stock, at cost, 47.6 million and 39.1 million shares, respectively (1,684,262) (688,849)
Additional paid-in capital 496,036 482,385
Retained earnings 1,279,040 553,346
Accumulated other comprehensive loss (76,838) (56,354)
Total stockholders’ equity 14,082 290,633
Total liabilities and stockholders’ equity $ 1,545,068 $ 1,118,723
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands, shares in Millions
Dec. 31, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Allowances $ 20,715 $ 21,093
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock issued (shares) 105.9 105.0
Common shares outstanding (shares) 58.3 65.9
Treasury stock (shares) 47.6 39.1
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CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
 [1]
Common Stock
Treasury Stock
Additional Paid-in Capital
Retained Earnings
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
 [1]
Accumulated Other Comprehensive (Loss)
Beginning balance (shares) at Dec. 31, 2018     73,306 29,656        
Stockholders' equity - beginning balance at Dec. 31, 2018 $ 150,308 $ (227) $ 103 $ (397,491) $ 481,133 $ 121,215 $ (227) $ (54,652)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Share-based compensation 14,412       14,412      
Exercises of stock options and issuance of restricted stock awards (shares)     1,008 58        
Exercises of stock options and issuance of restricted stock awards (1,168)   $ 1 $ (1,527) 358      
Repurchases of common stock (shares)     (6,082) 6,082        
Repurchases of common stock (147,190)     $ (147,190)        
Net income 119,497         119,497    
Other comprehensive income (loss) (3,727)             (3,727)
Ending balance (shares) at Dec. 31, 2019     68,232 35,796        
Stockholders' equity - ending balance at Dec. 31, 2019 131,905   $ 104 $ (546,208) 495,903 240,485   (58,379)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Share-based compensation 16,361       16,361      
Exercises of stock options and issuance of restricted stock awards (shares)     836 124        
Exercises of stock options and issuance of restricted stock awards (1,687)   $ 1 $ (3,059) 1,371      
Repurchases of common stock (shares)     (3,212) 3,212        
Repurchases of common stock (170,832)     $ (139,582) (31,250)      
Net income 312,861         312,861    
Other comprehensive income (loss) 2,025             2,025
Ending balance (shares) at Dec. 31, 2020     65,856 39,132        
Stockholders' equity - ending balance at Dec. 31, 2020 290,633   $ 105 $ (688,849) 482,385 553,346   (56,354)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Share-based compensation 38,122       38,122      
Exercises of stock options and issuance of restricted stock awards (shares)     716 209        
Exercises of stock options and issuance of restricted stock awards (19,883)   $ 1 $ (20,119) 235      
Repurchases of common stock (shares)     (8,242) 8,242        
Repurchases of common stock (1,000,000)     $ (975,294) (24,706)      
Net income 725,694         725,694    
Other comprehensive income (loss) (20,484)             (20,484)
Ending balance (shares) at Dec. 31, 2021     58,330 47,583        
Stockholders' equity - ending balance at Dec. 31, 2021 $ 14,082   $ 106 $ (1,684,262) $ 496,036 $ 1,279,040   $ (76,838)
[1] The decrease to beginning retained earnings is as a result of the prior year adoption of new lease accounting standards as of January 1, 2019.
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities:      
Net income $ 725,694 $ 312,861 $ 119,497
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 31,976 27,619 24,213
Operating lease cost 58,283 61,583 60,142
Inventory donations 1,264 8,994 109
Provision (recovery) for doubtful accounts, net (2,629) 5,779 1,566
Share-based compensation 38,122 16,361 14,412
Asset impairments 0 21,071 0
Deferred taxes (241,283) (325,061) (16,259)
Other non-cash items 264 5,307 (2,425)
Changes in operating assets and liabilities:      
Accounts receivable, net of allowances (35,063) (47,045) (15,015)
Inventories (43,063) (13,462) (48,156)
Prepaid expenses and other assets (6,212) 5,007 (4,012)
Accounts payable 34,868 23,229 6,032
Accrued expenses and other liabilities 38,448 22,358 13,265
Right-of-use assets and operating lease liabilities (52,752) (61,178) (64,313)
Income taxes 19,248 203,479 902
Cash provided by operating activities 567,165 266,902 89,958
Cash flows from investing activities:      
Purchases of property, equipment, and software (55,916) (42,033) (36,576)
Proceeds from disposal of property and equipment 6 463 616
Other (15) (192) (276)
Cash used in investing activities (55,925) (41,762) (36,236)
Cash flows from financing activities:      
Proceeds from notes issuance 700,000 0 0
Proceeds from bank borrowings 390,000 210,000 315,000
Repayments of bank borrowings (485,000) (235,000) (230,000)
Deferred debt issuance costs (14,755) (518) (1,796)
Dividends — Series A convertible preferred stock [1] 0 0 (2,985)
Repurchases of common stock (1,000,000) (170,832) (147,190)
Repurchases of common stock for tax withholding (20,119) (3,060) (1,527)
Other 236 1,372 (140)
Cash used in financing activities (429,638) (198,038) (68,638)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (3,950) 126 (569)
Net change in cash, cash equivalents, and restricted cash 77,652 27,228 (15,485)
Cash, cash equivalents, and restricted cash — beginning of year 139,273 112,045 127,530
Cash, cash equivalents, and restricted cash — end of year 216,925 139,273 112,045
Supplemental Schedule of Non-Cash Investing and Financing Activities      
Cash paid for interest 10,210 6,658 7,519
Cash paid for income taxes 159,680 20,816 16,050
Accrued purchases of property, equipment, and software $ 15,831 $ 4,222 $ 15,206
[1] Represents $3.0 million paid to induce conversion of Series A Convertible Preferred Stock to common stock during the year ended December 31, 2019.
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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)
$ in Millions
 12 Months Ended
Dec. 31, 2019
USD ($)
Statement of Cash Flows [Abstract]  
Inducements paid $ 3.0
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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2021
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,” “Crocs,” “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 women, men, and children. We strive to be the global leader in the sale of molded footwear characterized by functionality, comfort, color, and lightweight design. Our reportable operating segments include: the Americas, operating in North and South America; Asia Pacific, operating throughout Asia, Australia, and New Zealand; and Europe, Middle East, and Africa (“EMEA”), operating throughout Europe, Russia, the Middle East, and Africa.

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, 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, and depreciation and amortization, 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 17 — Legal Proceedings for additional information regarding our contingencies and legal proceedings.

The full impact of COVID-19 is unknown and cannot be reasonably estimated as of the reporting date. However, we have made appropriate accounting estimates based on the facts and circumstances available as of the reporting date.

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 13 — Income Taxes and on the consolidated statements of cash flows to conform to current period presentation.

Transactions with Affiliates

In 2019, we received services from three affiliates of Blackstone Capital Partners VI L.P. (“Blackstone”). Blackstone and certain of its permitted transferees beneficially owned 6,899,027 shares of our common stock until Blackstone sold 6,864,545 shares of common stock held directly by Blackstone and its affiliates on November 4, 2019 in an underwritten public offering. The other 34,482 shares of common stock were held by Gregg S. Ribatt, our former Chief Executive Officer and former
member of our Board of Directors, which Blackstone may have been deemed to beneficially own, and were sold by Mr. Ribatt in October 2019. We incurred expenses to Blackstone’s legal counsel of $0.3 million in relation to this transaction.

Certain Blackstone affiliates provide various services to us, including inventory count services, cybersecurity and consulting, and workforce management services. We incurred expenses for services from these affiliates of $2.2 million during the period of Blackstone’s beneficial ownership in 2019. Expenses related to these services are reported in ‘Selling, general and administrative expenses’ in the consolidated statements of operations.

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, if expected to be received within five days, 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 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 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, non-product, and non-manufacturing 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. Our annual test is performed as of the last day of our fiscal fourth quarter. We continuously monitor the performance of our definite-lived intangible assets 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.

Direct costs of acquiring or developing internal-use computer software, including costs of employees, are capitalized and classified within intangible assets. Software maintenance and training costs are expensed in the period incurred. Initial costs associated with internally-developed-and-used software are expensed until it is determined that the project has reached the application development stage, after which subsequent additions, modifications, or upgrades are capitalized to the extent that they add functionality. Our capitalized software consists primarily of enterprise resource system software, warehouse management software, and point of sale software. Amortization for software is provided using the straight-line method over the estimated useful asset lives, which are reviewed periodically and range from 2 to 8 years. 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, non-product, and non-manufacturing assets, such as our global information systems, is included in ‘Selling, general, and administrative expenses’ in the consolidated statements of operations.

Amortization for patents, copyrights, and trademarks is provided using the straight-line method over the estimated useful asset lives, which are reviewed periodically and range from 7 to 25 years.

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 2033. 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.

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 6 — Leases for additional information.

Derivative Foreign Currency Contracts

We enter into forward foreign currency exchange contracts to mitigate the potential impact of foreign currency exchange rate risk. By policy, we do not enter into these contracts for trading purposes or speculation. The fair value of these contracts is reported either as an asset or liability in our consolidated balance sheets. Changes in the fair value of these contracts are recorded in ‘Foreign currency losses, net’ in our consolidated statements of operations. We did not designate any derivative instruments for hedge accounting during any of the periods presented. See Note 8 — Derivative Financial Instruments for further information.
Other Comprehensive Income

Our foreign subsidiaries use their foreign currency as their functional currency. Functional currency assets and liabilities are translated into U.S. Dollars 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 disposition of a subsidiary, at which time accumulated translation gains or losses are reclassified into net income.

Revenue Recognition

See Note 11 — 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, depreciation, 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 also 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 $172.7 million, $101.0 million, and $83.2 million for the years ended December 31, 2021, 2020, and 2019, respectively. Prepaid advertising and promotional endorsement expenses of $1.2 million and $2.0 million, were included in ‘Prepaid expenses and other assets’ in the consolidated balance sheets at December 31, 2021 and 2020, 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 $13.7 million, $10.2 million, and $11.8 million in research, design, and development activities for the years ended December 31, 2021, 2020, and 2019, respectively, which are expensed as incurred and are reported in ‘Selling, general and administrative expenses’ in the consolidated statements of operations.
Share-Based Compensation

Stock Options

Stock options are granted with exercise prices equal to the fair market value of our common stock on the date of grant. We use the Black-Scholes option-pricing model to estimate the grant date fair value of stock options, which requires the use of assumptions, including the expected term of the option, expected volatility of our stock price, our expected dividend yield, and the risk-free interest rate, among others. These assumptions reflect our best estimates; however, they involve inherent uncertainties including market conditions and employee behavior that are generally outside of our control. We expense all share-based compensation awarded based on the grant date fair value of the awards using the straight-line method over the requisite service period, adjusted for forfeitures as they occur.

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 12 — 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 assets involved in Crocs’ retail business, 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. 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 3 — Property and Equipment, Net and Note 6 — Leases for a discussion of impairment losses recorded during the periods presented.

Foreign Currency Losses, Net

Foreign currency 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.

Other Income, Net

Other income, 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 13 — 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 14 — 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, 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 7 — Fair Value Measurements for further discussion related to estimated fair value measurements.
v3.22.0.1
RECENT ACCOUNTING PRONOUNCEMENTS
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
RECENT ACCOUNTING PRONOUNCEMENTS RECENT ACCOUNTING PRONOUNCEMENTS
New Accounting Pronouncement Adopted

Simplifying Accounting for Income Taxes

In December 2019, the FASB issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements, and interim recognition of enactment of tax laws or rate changes. On January 1, 2021, we adopted the guidance. The adoption did not have a material effect on our consolidated financial statements.
New Accounting Pronouncements Not Yet Adopted

Reference Rate Reform

In March 2020, the FASB issued optional guidance related to reference rate reform, which provides practical expedients for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. This guidance is applicable for our revolving borrowing instruments, which use LIBOR as a reference rate, and is available for adoption effective immediately, but is only available through December 31, 2022. We are currently evaluating the potential impact of this standard on our consolidated financial statements.

Business Combinations

In October 2021, the FASB issued new guidance primarily related to the accounting for contract assets and contract liabilities from contracts with customers in a business combination. The standard will be effective for annual reporting periods beginning after December 31, 2022, including interim reporting periods within those periods, with early adoption permitted. We are currently evaluating the impact of adopting this new accounting guidance on our consolidated financial statements.

Other Pronouncements

Other new pronouncements issued but not effective until after December 31, 2021 are not expected to have a material impact on our consolidated financial statements.
v3.22.0.1
PROPERTY AND EQUIPMENT, NET
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET PROPERTY AND EQUIPMENT, NET
‘Property and equipment, net’ consists of the following:
 December 31,
 20212020
 (in thousands)
Leasehold improvements$64,625 $66,661 
Machinery and equipment53,976 47,107 
Furniture, fixtures, and other20,210 21,817 
Construction-in-progress53,332 8,187 
Property and equipment192,143 143,772 
Less: Accumulated depreciation and amortization(83,745)(86,305)
Property and equipment, net$108,398 $57,467 

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 material to the consolidated balance sheets in the years ended December 31, 2021 or 2020.

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,
202120202019
(in thousands)
Cost of sales$6,234 $3,921 $1,711 
Selling, general and administrative expenses8,708 7,914 7,174 
Total depreciation and amortization expense$14,942 $11,835 $8,885 
Disposals of Property and Equipment and Intangible Assets

We recognized net gains on disposals of property and equipment and intangible assets of $0.3 million and $0.2 million, respectively, for the years ended December 31, 2021 and 2019, and a net loss on disposals of property and equipment and intangible assets of $0.3 million for the year ended December 31, 2020, which are included in ‘Selling, general and administrative expenses’ in the consolidated statement of operations.

Additionally, we impaired our leasehold improvement assets for a retail location in the year ended December 31, 2020, as described in Note 7 — Fair Value Measurements.
v3.22.0.1
GOODWILL AND INTANGIBLE ASSETS, NET
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS, NET GOODWILL AND INTANGIBLE ASSETS, NET
Goodwill
In the years ended December 31, 2021 and 2020, there were no changes to our goodwill, which is in our EMEA segment, aside from immaterial changes related to foreign currency translation. At December 31, 2021, 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, 2021December 31, 2020
GrossAccum. Amortiz.NetGrossAccum. Amortiz.Net
(in thousands)
Intangible assets subject to amortization:
Capitalized software$128,843 $(104,637)$24,206 $124,544 $(92,075)$32,469 
Patents, copyrights, and trademarks4,308 (3,530)778 3,774 (3,351)423 
Intangible assets not subject to amortization:
In progress3,739 — 3,739 4,660 — 4,660 
Trademarks and other79 — 79 84 — 84 
Total$136,969 $(108,167)$28,802 $133,062 $(95,426)$37,636 

At December 31, 2021, the weighted average remaining useful life of intangibles subject to amortization was approximately 5.9 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,
202120202019
(in thousands)
Cost of sales$4,779 $3,975 $3,398 
Selling, general and administrative expenses12,255 11,809 11,930 
Total amortization expense$17,034 $15,784 $15,328 
Estimated future annual amortization expense of intangible assets is:
As of
December 31, 2021

(in thousands)
2022$6,999 
20236,280 
20245,107 
20253,805 
20262,132 
Thereafter661 
Total$24,984 
v3.22.0.1
ACCRUED EXPENSES AND OTHER LIABILITIES
 12 Months Ended
Dec. 31, 2021
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,
20212020
 (in thousands)
Accrued compensation and benefits$62,945 $48,870 
Professional services 33,997 18,478 
Fulfillment, freight, and duties15,629 17,868 
Sales/use and value added taxes payable13,049 12,480 
Return liabilities10,342 6,906 
Accrued rent and occupancy7,431 3,818 
Royalties payable and deferred revenue7,425 6,254 
Other16,069 12,030 
Total accrued expenses and other liabilities$166,887 $126,704 
v3.22.0.1
LEASES
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
LEASES LEASES
As a result of the COVID-19 pandemic, we received lease concessions from landlords in the form of rent abatements and rent deferrals in the years ended December 31, 2021 and 2020. We chose to implement the policy election provided by the FASB in April 2020 to record rent concessions as if no modification to lease contracts were made, and thus no changes to the lease obligations were recorded in respect to these concessions. In the year ended December 31, 2021, we received $1.4 million of rent abatements, and we had an immaterial amount of outstanding deferred rent as of December 31, 2021. In the year ended December 31, 2020, we received rent abatements of $1.5 million, and we had outstanding deferred rent of $0.4 million as of December 31, 2020.

Right-of-Use Assets and Operating Lease Liabilities

Amounts reported in the consolidated balance sheets were:
December 31,
20212020
(in thousands)
Assets:
Right-of-use assets$160,768 $167,421 
Liabilities:
Current operating lease liabilities$42,932 $47,064 
Long-term operating lease liabilities149,237 146,401 
Total operating lease liabilities$192,169 $193,465 
Lease Costs and Other Information

Lease-related costs reported within ‘Cost of sales’ and ‘Selling, general and administrative expenses’ were:
Year Ended December 31,
20212020
(in thousands)
Operating lease cost $58,283 $61,583 
Short-term lease cost7,585 4,898 
Variable lease cost32,490 15,691 
Total lease costs$98,358 $82,172 

Other information related to leases, including supplemental cash flow information, consists of:
Year Ended December 31,
20212020
(in thousands)
Cash paid for operating leases$61,412 $59,579 
Right-of-use assets obtained in exchange for operating lease liabilities55,035 55,369 

The weighted average remaining lease term and discount rate related to our lease liabilities as of December 31, 2021 were 7.1 years and 3.8%, respectively. As of December 31, 2020, the weighted average remaining lease term and discount rate related to our lease liabilities were 6.7 years and 4.4%, respectively.

We also impaired our right-of-use assets for a retail location and our former corporate headquarters in the year ended December 31, 2020, as described in Note 7 — Fair Value Measurements.

Maturities

The maturities of our operating lease liabilities were:
As of
December 31, 2021
(in thousands)
2022$44,898 
202338,819 
202425,802 
202518,934 
202616,605 
Thereafter75,421 
Total future minimum lease payments220,479 
Less: imputed interest(28,310)
Total operating lease liabilities$192,169 

Leases That Have Not Yet Commenced

As of December 31, 2021, we had significant obligations for a lease not yet commenced related to the expansion of our Americas distribution center in Dayton, Ohio. The total contractual commitment related to the lease, with payments expected to begin in the first quarter of 2022 and continue through September 2032, is approximately $39 million. Additionally, as of December 31, 2021, we had significant obligations for a lease not yet commenced related to the upcoming move of our corporate headquarters within Broomfield, Colorado. The total contractual commitment related to this lease, with regular payments expected to begin in November 2023 and continue through September 2033, is approximately $44 million.
v3.22.0.1
FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2021
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, 2021 and 2020. The fair values of our derivative instruments were a liability of $0.2 million and a liability of $0.4 million at December 31, 2021 and 2020, respectively. See Note 8 — Derivative Financial Instruments for more information.

The carrying amounts of our cash, cash equivalents, and restricted cash, accounts receivable, accounts payable, and current accrued expenses and other liabilities 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, 2021, we completed the issuance and sale of $350.0 million aggregate principal amount of 2029 Notes (as defined below) and $350.0 million aggregate principal amount of 2031 Notes (as defined below), as described in more detail in Note 9 — Long-Term Borrowings. The Notes (as defined below) are 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 carrying and fair values of our revolving credit facilities approximate their carrying values at December 31, 2021 and 2020 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, 2021 and 2020 were:
December 31, 2021December 31, 2020
Carrying ValueFair
Value		Carrying ValueFair
Value
(in thousands)
2029 Notes$350,000 $346,281 $— $— 
2031 Notes350,000 341,250 — — 
Revolving credit facilities85,000 85,000 180,000 180,000 

Inventory donations were immaterial during the years ended December 31, 2021 or 2019. During the year ended December 31, 2020, we recorded inventory donations of $9.9 million at fair value within ‘Selling, general and administrative expenses’ in our consolidated statements of operations.

Non-Financial Assets and Liabilities

Our non-financial assets, which primarily consist of property and equipment, right-of-use assets, goodwill, and other intangible assets, are not required to be carried at fair value on a recurring basis and are reported at carrying value.

The fair values of these assets 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,
202120202019
(in thousands)
Retail store assets impairment (1)
$— $2,412 $— 
Right-of-use assets impairment (1)
— 18,659 — 
Total asset impairments$— $21,071 $— 
(1) During the year ended December 31, 2020, we recognized impairments for a retail location in New York City of $2.4 million to retail store assets and $17.6 million to the right-of-use asset. We also recognized an impairment of $1.1 million to the right-of-use asset for our corporate headquarters in Niwot, Colorado, as a result of our relocation to Broomfield, Colorado.
v3.22.0.1
DERIVATIVE FINANCIAL INSTRUMENTS
 12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS
 
We transact business in various foreign countries and are therefore exposed to foreign currency exchange rate risk that impacts the reported U.S. Dollar 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, 2021 or 2020.

Our derivative instruments are recorded at fair value as a derivative asset or liability in the consolidated balance sheets. We report derivative instruments with the same counterparty on a net basis when a master netting arrangement is in place. Changes in fair value are recognized within ‘Foreign currency losses, net’ in the consolidated statements of operations. 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.’

Results of Derivative Activities

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, 2021December 31, 2020
Derivative AssetsDerivative LiabilitiesDerivative AssetsDerivative Liabilities
(in thousands)
Forward foreign currency exchange contracts$724 $(938)$794 $(1,225)
Netting of counterparty contracts(724)724 (794)794 
Foreign currency forward contract derivatives$— $(214)$— $(431)

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, 2021December 31, 2020
NotionalFair ValueNotionalFair Value
(in thousands)
Singapore Dollar$43,723 $(296)$24,211 $457 
British Pound Sterling25,795 104 16,134 (182)
Euro21,198 162 28,851 (82)
South Korean Won14,201 (112)3,741 (56)
Japanese Yen12,910 80 17,447 (240)
Indian Rupee10,379 (86)18,937 (134)
Other currencies19,481 (66)9,675 (194)
Total$147,687 $(214)$118,996 $(431)
Latest maturity dateJanuary 2022January 2021

Amounts reported in ‘Foreign currency 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,
 202120202019
 (in thousands)
Foreign currency transaction gains (losses)
$100 $941 $(356)
Foreign currency forward exchange contracts losses
(240)(2,069)(967)
Foreign currency losses, net
$(140)$(1,128)$(1,323)
v3.22.0.1
LONG-TERM BORROWINGS
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
LONG-TERM BORROWINGS LONG-TERM BORROWINGS
 
Our borrowings were as follows:
Stated Interest RateEffective Interest RateDecember 31,
Maturity20212020
(in thousands)
Notes issuance of $350.0 million
20294.250 %4.64 %$350,000 $— 
Notes issuance of $350.0 million
20314.125 %4.35 %350,000 — 
Revolving credit facilities85,000 180,000 
Total face value of long-term borrowings785,000 180,000 
Less:
Unamortized issuance costs13,610 — 
Current portion of borrowings— — 
Total long-term borrowings$771,390 $180,000 

Senior Revolving Credit Facility

In July 2019, Crocs, Inc. and certain of its subsidiaries (the “Borrowers”) entered into a Second Amended and Restated Credit Agreement (as amended, the “Revolving Credit Agreement”), with the lenders named therein and PNC Bank, National Association, as a lender and administrative agent for the lenders, which provides for a revolving credit facility of $500.0 million, which can be increased by an additional $100.0 million subject to certain conditions (the “Revolving Facility”). Borrowings under the Revolving Credit Agreement bear interest at a variable rate based on (A) a domestic base rate (defined as the highest of (i) the Federal Funds open rate, plus 0.25%, (ii) the Prime Rate, and (iii) the Daily LIBOR rate, plus 1.00%), plus an applicable margin ranging from 0.25% to 0.875% based on our leverage ratio, or (B) a LIBOR rate, plus an applicable margin ranging from 1.25% to 1.875% based on our leverage ratio. Borrowings under the Revolving Credit Agreement are secured by all of the assets of the Borrowers and guaranteed by certain other subsidiaries of the Borrowers.

The Revolving Credit Agreement required us to maintain a minimum interest coverage ratio of 4.00 to 1.00 and a maximum leverage ratio of 3.50 to 1.00 from the quarter ended December 31, 2020 to the quarter ended December 31, 2021. Additionally, the Revolving Credit Agreement requires us to maintain a minimum interest coverage ratio of 4.00 to 1.00 and a maximum leverage ratio of 3.25 to 1.00 from the quarter ending March 31, 2022 and thereafter (subject to adjustment in certain circumstances). The Revolving Credit Agreement permits (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 Revolving Credit Agreement of at least $40.0 million. As of December 31, 2021, we were in compliance with all financial covenants under the Revolving Credit Agreement.

As of December 31, 2021, the total commitments available from the lenders under the Revolving Facility were $500.0 million. At December 31, 2021, we had $85.0 million in outstanding borrowings, which are due when the Revolving Facility matures in July 2024, and $0.3 million in outstanding letters of credit under the Revolving Facility, which reduces amounts available for borrowing under the Revolving Facility. As of December 31, 2021 and 2020, we had $414.7 million and $319.4 million, respectively, of available borrowing capacity under the Revolving Facility.
Asia Revolving Credit Facilities

Our revolving credit facility with China Merchants Bank Company Limited, Shanghai Branch (the “CMBC Facility”), matured in May 2021 and provided up to 30.0 million RMB, or $4.7 million using current exchange rates as of May 2021. We renewed the CMBC Facility, effective January 2022. The CMBC Facility now provides a revolving credit facility of up to 10.0 million RMB, or $1.6 million at current exchange rates, and matures in January 2023. For RMB loans under the CMBC Facility, interest is determined at the time of borrowing based on variable rates in effect at that time.

The revolving credit facility with Citibank (China) Company Limited, Shanghai Branch (the “Citibank Facility”) provides up to an equivalent of $10.0 million. For RMB loans under the Citibank Facility, interest is based on a National Interbank Funding Center 1-year prime rate, plus 65 basis points. For USD loans under the Citibank Facility, interest is based on a LIBOR rate, plus 1.5%.

We had no borrowings under our Asia revolving facilities during the years ended December 31, 2021 and 2020 or outstanding at December 31, 2021 or 2020.

Senior Notes Issuances

On March 12, 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 (“the March Indenture”). Additionally, on August 10, 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 (“the August Indenture” and, together with the March Indenture, the “Indentures”). 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 Revolving 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 Revolving 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; declare and pay dividends or repurchase or redeem capital stock or make other restricted payments; declare and 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, 2021, we were in compliance with all financial covenants under the Indentures.
v3.22.0.1
EQUITY
 12 Months Ended
Dec. 31, 2021
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 February 20, 2018, the Board of Directors approved and authorized a program to repurchase up to $500.0 million of our common stock. On May 5, 2019, the Board approved an increase to the repurchase authorization of an additional $500.0 million of our common stock. On April 23, 2021, the Board approved a $712.2 million increase to our share repurchase authorization. Additionally, on September 23, 2021, the Board approved an increase of $1,000.0 million 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.

We repurchased 8.2 million shares of our common stock at a cost of $1,000.0 million, including commissions, during the year ended December 31, 2021. This includes 3.2 million shares delivered under the $500.0 million accelerated share repurchase arrangement (“ASR”) entered into in September 2021, 2.9 million shares delivered under the $300.0 million ASR entered into in April 2021, and 0.5 million shares delivered in January 2021 at the conclusion of the purchase period for the ASR entered into in November 2020. Under each ASR, a financial institution delivered shares of our common stock during the purchase period in exchange for an up-front payment. The total number of shares ultimately delivered under the ASR, and therefore the average repurchase price paid per share, was determined based on the volume-weighted average price of our common stock during the purchase period. The shares received were recorded in the period they were delivered, and the up-front payment was accounted for as a reduction to stockholders’ equity in our consolidated balance sheet in the period the payment was made. As of December 31, 2021, we had remaining authorization to repurchase approximately $1,050.0 million of our common stock, subject to restrictions under the agreements governing our indebtedness.

During the year ended December 31, 2020, we repurchased 3.2 million shares of our common stock at a cost of $170.8 million, including commissions. This included 1.5 million shares delivered under a $125.0 million November 2020 ASR. During the year ended December 31, 2019, we repurchased 6.1 million shares of our common stock at a cost of $147.2 million, including commissions.

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, 2021.
v3.22.0.1
REVENUES
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Revenues by reportable operating segment and by channel were:
Year Ended December 31, 2021
AmericasAsia PacificEMEAOther BusinessesTotal
(in thousands)
Channel:
Wholesale$727,264 $184,335 $262,395 $87 $1,174,081 
Direct-to-consumer (1)
879,748 165,825 93,762 — 1,139,335 
Total revenues$1,607,012 $350,160 $356,157 $87 $2,313,416 
Year Ended December 31, 2020
AmericasAsia PacificEMEAOther BusinessesTotal
(in thousands)
Channel:
Wholesale$390,930 $133,416 $168,410 $163 $692,919 
Direct-to-consumer (1)
472,683 145,099 75,250 — 693,032 
Total revenues$863,613 $278,515 $243,660 $163 $1,385,951 
Year Ended December 31, 2019
AmericasAsia PacificEMEAOther BusinessesTotal
(in thousands)
Channel:
Wholesale$275,284 $207,405 $173,480 $58 $656,227 
Direct-to-consumer (1)
365,231 140,667 68,468 — 574,366 
Total revenues$640,515 $348,072 $241,948 $58 $1,230,593 
(1) Direct-to-consumer revenues consist of sales generated through our company-operated retail stores (previously our “Retail” channel) and company-operated e-commerce websites and third-party e-commerce marketplaces (previously our “E-commerce” channel).

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 year ended December 31, 2021, we recognized no changes to estimates for wholesale or direct-to-consumer revenues. During the year ended December 31, 2020, we recognized a net increase of $0.6 million to wholesale revenues and an increase of $1.1 million to direct-to-consumer revenues due to changes in estimates related to products transferred to customers in prior periods. During the year ended December 31, 2019, we recognized a net increase of $0.4 million to wholesale revenues and a decrease of $0.1 million to direct-to-consumer revenues due to changes in estimates related to products transferred to customers in prior periods.

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 statement of operations.

The following is a description of our principal revenue-generating activities by distribution channel. We have three reportable operating segments and sell our products using two primary distribution channels. For more detailed information about reportable operating segments, see Note 16 — 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 the Asia Pacific region, cash payment is required in advance of delivery and revenues are recognized upon the transfer of control to the customer. For a small number of customers in the Asia Pacific region, products are sold on consignment and revenues are recognized on a sell-through basis.

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 (previously our “Retail” channel) and company-operated e-commerce websites and third-party e-commerce marketplaces (previously our “E-commerce”
channel). 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, 2021 and 2020, $0.1 million and $0.7 million, respectively, of deferred revenues associated with advance customer deposits were reported 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, 2021 and 2020, $10.3 million and $6.9 million, respectively, of refund liabilities, primarily associated with product returns, were reported in ‘Accrued expenses and other liabilities’ in the consolidated balance sheets.
v3.22.0.1
SHARE-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2021
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, 2021, 4.3 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.

Share-Based Compensation Expense

Pre-tax share-based compensation expense reported in the consolidated statements of operations was:
Year Ended December 31,
202120202019
(in thousands)
Cost of sales$461 $210 $580 
Selling, general and administrative expenses37,661 16,151 13,832 
Total share-based compensation expense$38,122 $16,361 $14,412 
Stock Option Activity

Stock option activity during the year ended December 31, 2021 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, 2020
232 $8.29 5.84$12,586 
Granted— — 
Exercised(15)15.73 
Forfeited or expired— — 
Outstanding as of December 31, 2021
217 $7.78 5.14$26,076 
Exercisable at December 31, 2021
217 $7.78 5.14$26,076 
Vested at December 31, 2021
217 $7.78 5.14$26,076 

No stock options were granted during 2021, 2020, or 2019. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2021, 2020, and 2019 was $0.8 million, $0.8 million, and $0.4 million, respectively. During the years ended December 31, 2021, 2020, and 2019, we received $0.2 million, $1.4 million, and $0.4 million cash, respectively, in connection with the exercise of stock options. As of December 31, 2021, 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 the years ended December 31, 2021, 2020, and 2019, we granted 0.2 million, 0.6 million, and 0.3 million service-condition RSUs, respectively.

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. On January 11, 2021, our Board awarded 0.4 million market-condition RSUs to certain senior executives (“January market-condition RSUs”). For the executives to earn the target number of shares, the 30 trading day average of the daily volume weighted average trading price of the common stock must meet or exceed certain performance hurdles. Any earned shares will also be subject to time vesting. When a performance hurdle is met or exceeded, one third of the earned portion of the RSUs will vest immediately, and the remaining two thirds will be subject to the executive’s continued employment, with one third vesting one year later and the remaining one third vesting two years later, but in no case later than the fourth anniversary of the award, in each case, subject to certain change in control provisions. As of December 31, 2021, each of the performance hurdles of the January market-condition RSUs had been met or exceeded.
During the years ended December 31, 2021, 2020, and 2019, we granted 0.6 million, 0.5 million, and 1.0 million performance- and market-condition RSUs, respectively.

RSA and RSU activity during the year ended December 31, 2021 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, 2020
3 $37.79 1,830 $25.25 
Granted5 88.68 774 76.28 
Vested(6)63.24 (895)27.79 
Forfeited— — (254)31.67 
Unvested at December 31, 2021
2 $105.18 1,455 $49.70 

The weighted average grant date fair value of RSAs granted during the years ended December 31, 2021, 2020, and 2019 was $88.68, $38.10, and $20.53 per share, respectively. RSAs vested during the years ended December 31, 2021, 2020, and 2019 consisted entirely of service-condition awards. The total grant date fair value of RSAs vested in the years ended December 31, 2021, 2020, and 2019 was $0.4 million, $0.2 million and $0.2 million, respectively.

As of December 31, 2021, unrecognized share-based compensation expense for RSAs was $0.1 million, which is expected to amortize over a remaining weighted average period of 0.4 years.

The weighted average grant date fair value of RSUs granted during the years ended December 31, 2021, 2020, and 2019 was $76.28, $29.14, and $25.37 per share, respectively. 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. RSUs vested during the year ended December 31, 2020 consisted of 0.5 million service-condition awards and 0.4 million performance- and market-condition awards. RSUs vested during the year ended December 31, 2019 consisted of 0.6 million service-condition awards and 0.4 million performance- and market-condition awards. The total grant date fair value of RSUs vested during the years ended December 31, 2021, 2020, and 2019 was $24.9 million, $11.9 million and $9.9 million, respectively.

As of December 31, 2021, unrecognized share-based compensation expenses for service-condition RSUs were $20.4 million and for performance- and market-condition RSUs were $18.5 million, and are expected to amortize over remaining weighted average periods of 1.5 years and 1.8 years, respectively.
v3.22.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
During the three months ended December 31, 2021, we completed an intra-entity transfer of certain intellectual property rights primarily to align with current and future international operations. This 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 (and associated deferred tax asset, net of uncertain tax position), we must demonstrate economic ownership, including the appropriate authority and expertise to manage the intellectual property owned and serviced in the Netherlands. 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 subsidiary serves as the principal Crocs corporate headquarters outside of the U.S. and already performs significant functions in support of the economic ownership of the intellectual property in the Netherlands. In 2021, we undertook many additional activities to align business operations that support the economic substance of the intellectual property in the Netherlands.

The transfer resulted in a step-up in tax basis of intellectual property rights and a correlated increase in foreign deferred tax assets based on the fair value of the transferred intellectual property rights. We recorded a deferred tax asset of $40.3 million, net of a reserve for uncertain tax positions of $16.1 million. As such, a net deferred tax asset of $24.2 million was recognized along with a corresponding foreign deferred income tax benefit.

The following table sets forth income before taxes and the expense for income taxes:
 Year Ended December 31,
 202120202019
 (in thousands)
Income before taxes:   
U.S. $510,706 $133,574 $58,822 
Foreign153,143 73,405 60,500 
Total income before taxes$663,849 $206,979 $119,322 
Income tax expense (benefit):   
Current income taxes:   
U.S. federal$94,548 $698 $1,284 
U.S. state28,460 6,577 1,427 
Foreign56,430 211,904 13,373 
Total current income taxes179,438 219,179 16,084 
Deferred income taxes:   
U.S. federal791 529 (10,249)
U.S. state32 (2,381)(3,579)
Foreign(242,106)(323,209)(2,431)
Total deferred income taxes(241,283)(325,061)(16,259)
Total income tax benefit
$(61,845)$(105,882)$(175)
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,
 202120202019
 (in thousands)
Income tax expense and rate attributable to:
Federal income tax rate$139,408 21.0 %$43,466 21.0 %$25,058 21.0 %
State income tax rate, net of federal benefit
22,952 3.5 %7,231 3.5 %5,983 5.0 %
Foreign income tax rate differential18,890 2.8 %(6,060)(2.9)%1,994 1.7 %
GILTI, net14,157 2.1 %7,515 3.6 %7,585 6.4 %
Non-deductible / non-taxable items9,637 1.5 %6,871 3.3 %6,727 5.7 %
Change in valuation allowance(192,337)(29.0)%143,012 69.0 %(33,691)(28.2)%
Foreign tax credits(19,925)(3.0)%(15,904)(7.7)%(12,541)(10.4)%
Research and development credits(13,104)(2.0)%(148)(0.1)%(189)(0.2)%
Uncertain tax positions21,341 3.2 %200,571 96.9 %278 0.2 %
Share-based compensation(11,930)(1.8)%(1,303)(0.6)%(2,715)(2.3)%
Intra-Entity IP Transfer(41,858)(6.3)%(492,470)(237.9)%— — %
Enacted changes in tax law(9,554)(1.4)%— — %634 0.5 %
Other478 0.1 %1,337 0.7 %702 0.5 %
Effective income tax expense and rate$(61,845)(9.3)%$(105,882)(51.2)%$(175)(0.1)%

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,
 20212020
 (in thousands)
Non-current deferred tax assets:  
Share-based compensation expense$2,706 $1,934 
Accruals, reserves, and other expenses24,346 16,905 
Net operating loss24,573 26,842 
Intangible assets502,100 493,701 
Foreign tax credit39,442 38,948 
Operating lease liabilities35,755 41,391 
Other5,811 5,601 
Valuation allowance(26,467)(226,655)
Total non-current deferred tax assets$608,266 $398,667 
Non-current deferred tax liabilities:  
Unrealized gain on foreign currency$— $(506)
Property and equipment(12,189)(13,583)
Right-of-use assets(28,598)(33,769)
Other(278)(25)
Total non-current deferred tax liabilities$(41,065)$(47,883)

During 2021, valuation allowances recorded against deferred tax assets decreased by $200.2 million. The change in the valuation allowance includes $192.3 million related to income tax benefit and $7.9 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 2020, valuation allowances increased by $147.6 million. The change in the valuation allowance
includes $143.0 million related to income tax expense and $4.6 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. During the three months ended June 30, 2021, a jurisdiction for which we have historically recorded significant valuation allowances enacted a favorable change in the tax law related to net operating loss carryforwards. The change in tax law impacted the assessment of valuation allowances in the jurisdiction as the reversal of existing deferred tax assets would generate indefinite carryforward net operating losses instead of losses with a limited carryforward period. During 2021, valuation allowances recorded against deferred tax assets decreased by $200.2 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.

During 2021, all U.S. federal tax credits were utilized. We have included in the table above the prior year deferred tax assets related to U.S. federal tax carryforwards, including foreign tax credits and other tax credits, of $5.8 million as of December 31, 2020. 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 2031 and some of which do not expire, of $2.4 million and $3.6 million at December 31, 2021 and 2020, respectively. We have recorded deferred tax assets related to foreign tax carryforwards, including foreign tax credits and net operating losses, which expire starting in 2022 and those which do not expire of $61.5 million and $58.4 million as of December 31, 2021 and 2020, respectively. We maintain a valuation allowance against a portion of the foreign carryforwards and other attributes.

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, 2021, 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,
 202120202019
 (in thousands)
Unrecognized tax benefit as of January 1$206,209 $4,613 $4,511 
Additions in tax positions taken in prior period6,169 519 631 
Reductions in tax positions taken in prior period(963)(340)(1,532)
Additions in tax positions taken in current period23,061 200,947 1,786 
Settlements(763)(294)(391)
Lapse of statute of limitations(342)(258)(368)
Cumulative foreign currency translation adjustment(14,972)1,022 (24)
Unrecognized tax benefit as of December 31$218,399 $206,209 $4,613 

We recorded a net expense of $21.3 million related to increases in 2021 unrecognized tax benefits combined with amounts effectively settled under audit. Unrecognized tax benefits as of December 31, 2021 relate to tax years that are currently open under the statute of limitation. The primary impact of uncertain tax benefits on the rate reconciliation includes audit settlements, 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 benefit’ in the consolidated statements of operations. For the years ended December 31, 2021, 2020, and 2019, we recorded approximately $1.0 million, $0.6 million, and $0.4 million, respectively, of penalties and interest. During the year ended December 31, 2021, 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 $2.0 million, $1.2 million, and $0.7 million, as of December 31, 2021, 2020, and 2019, respectively.

Unrecognized tax benefits of $218.7 million, $205.6 million, and $4.0 million as of December 31, 2021, 2020, and 2019, 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, 2021:
The Netherlands2009 to 2021
Canada2014 to 2021
Japan2014 to 2021
China2011 to 2021
Singapore2017 to 2021
United States2007 to 2021

We are currently under audit in China. 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 2016 to 2021. 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.
v3.22.0.1
EARNINGS PER SHARE
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
 
Basic and diluted EPS for the years ended December 31, 2021, 2020, and 2019 were as follows: 
Year Ended December 31,
202120202019
(in thousands, except per share data)
Numerator:
Net income attributable to common stockholders
$725,694 $312,861 $119,497 
Denominator:   
Weighted average common shares outstanding - basic62,464 67,386 70,357 
Plus: Dilutive effect of stock options and unvested restricted stock units
1,254 1,158 1,414 
Weighted average common shares outstanding - diluted
63,718 68,544 71,771 
Net income per common share:
Basic$11.62 $4.64 $1.70 
Diluted$11.39 $4.56 $1.66 
For the year ended December 31, 2021, there were less than 0.1 million outstanding shares issued under share-based compensation awards that were anti-dilutive and, therefore, excluded from the calculation of diluted EPS. For the years ended December 31, 2020 and 2019, no outstanding shares issued under share-based compensation awards were anti-dilutive and, therefore, excluded from the calculation of diluted EPS.
v3.22.0.1
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
 
Purchase Commitments

As of December 31, 2021 and 2020, 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 $274.9 million and $220.8 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.

HEYDUDE Acquisition

On December 22, 2021, we entered into a definitive agreement to acquire the HEYDUDE brand (the “HEYDUDE Acquisition”), a privately-owned casual footwear brand, pursuant to a Securities Purchase Agreement (the “Securities Purchase Agreement”). The Securities Purchase Agreement provides that we will purchase all of the issued and outstanding equity securities of HEYDUDE for a purchase price of $2.05 billion in cash (the “Cash Consideration”) and 2,852,280 in Crocs shares to be issued to one of the sellers. The Cash Consideration is subject to adjustment based on, among other things, the cash, indebtedness, transaction expenses, and working capital of HEYDUDE as of the closing of the HEYDUDE Acquisition. The HEYDUDE Acquisition is expected to close in February 2022, subject to customary closing conditions.

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.

See Note 17 — Legal Proceedings for further details regarding potential loss contingencies related to government tax audits and other current legal proceedings.
v3.22.0.1
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION
We have three reportable operating segments: the Americas, Asia Pacific, and Europe, Middle East, and Africa (“EMEA”). Each of the reportable operating segments derives its revenues from the sale of footwear and accessories to external customers.

Segment performance is evaluated based on segment results without allocating corporate expenses, or indirect general, administrative, and other 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 other businesses and unallocated corporate expenses, as well as inter-segment eliminations.

In the three months ended March 31, 2021, certain costs previously reported within ‘Other Businesses’ were shifted to the Americas, Asia Pacific, and EMEA segments, as applicable, to reflect changes in the way management evaluates segment performance, makes operating decisions, and allocates resources. Additionally, any costs remaining in ‘Other Businesses,’ including depreciation and amortization, had been consolidated into ‘Unallocated corporate and other.’ The previously reported amounts for income from operations for the years ended December 31, 2020 and 2019 have been revised to conform to current period presentation, as shown in the following tables.

In the three months ended June 30, 2021, to reflect changes in the way management evaluates segment performance, makes operating decisions, and allocates resources, and as a response to our incremental investments in marketing in line with our growth, certain marketing expenses previously reported within ‘Unallocated corporate and other’ were shifted to the Americas, Asia Pacific, and EMEA segments, as applicable, to better align these investments with segment profitability. The previously reported amounts for income from operations for the years ended December 31, 2020 and 2019 have been revised to conform to current period presentation, as shown in the following tables.

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,
202120202019
(in thousands)
Revenues:
Americas$1,607,012 $863,613 $640,515 
Asia Pacific350,160 278,515 348,072 
EMEA356,157 243,660 241,948 
Segment revenues2,313,329 1,385,788 1,230,535 
Other businesses87 163 58 
Total consolidated revenues$2,313,416 $1,385,951 $1,230,593 
Income from operations (1)(2):
Americas$778,310 $323,512 $179,199 
Asia Pacific71,936 32,830 60,724 
EMEA111,539 65,914 64,771 
Total segment income from operations961,785 422,256 304,694 
Reconciliation of segment income from operations to income before income taxes:
Unallocated corporate and other (1)(2)
(278,721)(208,132)(176,045)
Total consolidated income from operations683,064 214,124 128,649 
Foreign currency gains (losses), net(140)(1,128)(1,323)
Interest income775 215 601 
Interest expense(21,647)(6,742)(8,636)
Other income, net1,797 510 31 
Income before income taxes$663,849 $206,979 $119,322 
Depreciation and amortization:
Americas$7,747 $3,528 $3,593 
Asia Pacific1,629 1,138 963 
EMEA1,728 730 793 
Total segment depreciation and amortization11,104 5,396 5,349 
Unallocated corporate and other (1)(2)
20,872 22,223 18,864 
Total consolidated depreciation and amortization$31,976 $27,619 $24,213 
(1) In the first quarter of 2021, certain costs previously reported within ‘Other Businesses’ were shifted to the Americas, Asia Pacific, and EMEA segments. Additionally, any costs remaining in ‘Other Businesses,’ including depreciation and amortization, have been consolidated into ‘Unallocated corporate and other.’ In the second quarter of 2021, certain marketing expenses previously reported within ‘Unallocated corporate and other’ were shifted to the Americas, Asia Pacific, and EMEA segments. The previously reported amounts for income from operations for the years ended December 31, 2020 and 2019 have been revised to conform to current period presentation. See the ‘Impacts of segment composition change’ and ‘Impacts of marketing expense allocations’ tables below for more information.
(2) Unallocated corporate and other primarily includes corporate support and administrative functions, certain royalty income, costs associated with share-based compensation, research and development, brand marketing, legal, and depreciation and amortization of corporate and other assets not allocated to operating segments.
Impacts of segment composition change:
Year Ended December 31,
20202019
(in thousands)
Impacts on income from operations:
Americas$(29,285)$(12,123)
Asia Pacific(4,512)(6,497)
EMEA4,410 (3,240)
Total impact on segment income from operations$(29,387)$(21,860)
Unallocated corporate and other$29,387 $21,860 

Impacts of marketing expense allocations:
Year Ended December 31,
20202019
(in thousands)
Impacts on income from operations:
Americas$(9,133)$(13,546)
Asia Pacific(10,100)(13,424)
EMEA(1,810)(2,315)
Total impact on segment income from operations$(21,043)$(29,285)
Unallocated corporate and other$21,043 $29,285 

There were no customers who represented 10% or more of consolidated revenues during the years ended December 31, 2021, 2020 and 2019. The following table sets forth certain geographical information regarding Crocs’ revenues for the periods as shown:
 Year Ended December 31,
 202120202019
 (in thousands)
Location:   
United States$1,507,482 $802,952 $563,473 
International (1)
805,934 582,999 667,120 
Total revenues$2,313,416 $1,385,951 $1,230,593 
(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,
 20212020
 (in thousands)
Location:  
United States$80,613 $49,527 
International (1)
27,785 7,940 
Total property and equipment, net$108,398 $57,467 
(1) During the year ended December 31, 2021, property and equipment, net in the Netherlands represented approximately 20% of consolidated property and equipment, net, comprised primarily of property and equipment related to the distribution center in Dordrecht and the warehouses in Rotterdam and Oudenbosch. No other individual country represented 10% or more of consolidated property and equipment, net in any of the years presented.
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LEGAL PROCEEDINGS
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
LEGAL PROCEEDINGS LEGAL PROCEEDINGS
We were subject to an audit by the Brazilian Federal Tax Authorities related to imports of footwear from China between 2010 and 2014. On January 13, 2015, we were notified about the issuance of assessments totaling 14.4 million Brazilian Real (“BRL”), or approximately $2.6 million at current exchange rates, plus interest and penalties, for the period January 2010 through May 2011. We disputed these assessments and asserted defenses to the claims. On February 25, 2015, we received additional assessments totaling 33.3 million BRL, or approximately $6.0 million at current exchange rates, plus interest and penalties, related to the remainder of the audit period. We also disputed these assessments and asserted defenses to these claims in administrative appeals. On August 29, 2017, we received a favorable ruling on our appeal of the first assessment, which dismissed all fines, penalties, and interest. The tax authorities have appealed that decision and we challenged the appeal on both the merits and procedure. Additionally, the second appeal for the remaining assessments was heard on March 22, 2018. That decision was partially favorable for us and resulted in an approximately 38% reduction in principal, penalties, and interest. The tax authorities have appealed that decision, and we filed a response to the tax authorities’ appeal as well as a separate appeal against the unfavorable portion of the ruling. Taking current rulings into consideration, we estimate the remaining principal for these assessments to be $4.5 million at current exchange rates, plus interest and penalties. Should the Brazilian Tax Authority prevail in these final administrative appeals, we may challenge the assessments through the court system, which would likely require the posting of a bond. We have not recorded these items within the consolidated financial statements as it is not possible at this time to predict the timing or outcome of this matter or to estimate a potential amount of loss, if any.

For all other claims and disputes, we have accrued estimated losses of $1.5 million within ‘Accrued expenses and other liabilities’ in our consolidated balance sheet as of December 31, 2021. 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, 2021, we estimated that reasonably possible losses could potentially exceed amounts accrued by an immaterial amount.

Although we are subject to other litigation from time to time in the ordinary course of business, including employment, intellectual property and product liability claims, other than as set forth above, 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.
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EMPLOYEE BENEFIT PLAN
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLAN EMPLOYEE BENEFIT PLAN Defined Contribution PlanWe 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 $7.4 million, $4.7 million and $5.1 million for the years ended December 31, 2021, 2020, and 2019, respectively.
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UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL INFORMATION
 12 Months Ended
Dec. 31, 2021
Quarterly Financial Information Disclosure [Abstract]  
UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL INFORMATION UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL INFORMATION
 For the Quarter Ended
 March 31, 2021June 30, 2021September 30, 2021December 31, 2021
 (in thousands, except per share data)
Revenues$460,098 $640,773 $625,919 $586,626 
Gross profit253,219 395,181 399,796 372,024 
Income from operations
124,686 195,322 203,068 159,988 
Net income (1)
98,398 318,954 153,489 154,853 
Basic income per common share (2)
$1.50 $5.02 $2.47 $2.63 
Diluted income per common share (2)
$1.47 $4.93 $2.42 $2.57 
(1) During the three months ended June 30, 2021, a jurisdiction for which we have historically recorded significant valuation allowances enacted a favorable change in the tax law related to net operating loss carryforwards. This change in tax law impacted the assessment of valuation allowances in the jurisdiction. This resulted in a $176.9 million discrete tax benefit for the release of valuation allowances resulting from the enactment of this tax law change.
(2) Basic and diluted income per common share are computed independently for each of the quarters presented. Therefore, the sum of the quarters may not equal the annual amounts presented in the consolidated statements of operations.
 For the Quarter Ended
 March 31, 2020June 30, 2020September 30, 2020December 31, 2020
 (in thousands, except per share data)
Revenues$281,160 $331,549 $361,736 $411,506 
Gross profit134,162 179,933 206,769 229,084 
Income from operations
20,812 56,595 72,086 64,631 
Net income (1)
11,091 56,551 61,889 183,330 
Basic income (loss) per common share (2)
$0.16 $0.84 $0.92 $2.75 
Diluted income (loss) per common share (2)
$0.16 $0.83 $0.91 $2.69 
(1) During the three months ended December 31, 2020, we completed an intra-entity transfer of certain intellectual property rights, resulting in the recognition of a $127.7 million tax benefit. See Note 13 — Income Taxes for more information. Additionally, in the three months ended December 31, 2020, we recorded an impairment for a retail location in New York City of $20.0 million and for our former corporate headquarters of $1.1 million.
(2) Basic and diluted income per common share are computed independently for each of the quarters presented. Therefore, the sum of the quarters may not equal the annual amounts presented in the consolidated statements of operations. Additionally, for the three months ended December 31, 2020, basic and diluted income per common share include the impact of the repurchase of 1.7 million shares of our common stock for $131.7 million, including a $125.0 million ASR, as described in more detail in Note 10 — Equity.
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SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
 12 Months Ended
Dec. 31, 2021
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, 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 
Year Ended December 31, 2020
Allowance for doubtful accounts$8,276 $5,779 $(2,901)$11,154 
Reserve for sales returns and allowances5,261 95,740 (95,219)5,782 
Reserve for unapplied rebates5,260 4,920 (6,023)4,157 
Total$18,797 $106,439 $(104,143)$21,093 
Year Ended December 31, 2019
Allowance for doubtful accounts$10,959 $1,566 $(4,249)$8,276 
Reserve for sales returns and allowances2,741 73,027 (70,507)5,261 
Reserve for unapplied rebates6,777 6,837 (8,354)5,260 
Total$20,477 $81,430 $(83,110)$18,797 
(1) Deductions include accounts written off, net of recoveries, and the effects of foreign currency translation.
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BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2021
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, 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, and depreciation and amortization, 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 17 — Legal Proceedings for additional information regarding our contingencies and legal proceedings.

The full impact of COVID-19 is unknown and cannot be reasonably estimated as of the reporting date. However, we have made appropriate accounting estimates based on the facts and circumstances available as of the reporting date.

To the extent there are differences between these estimates and actual results, our consolidated financial statements may be materially affected.
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, if expected to be received within five days, 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 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 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, non-product, and non-manufacturing 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. Our annual test is performed as of the last day of our fiscal fourth quarter. We continuously monitor the performance of our definite-lived intangible assets 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.

Direct costs of acquiring or developing internal-use computer software, including costs of employees, are capitalized and classified within intangible assets. Software maintenance and training costs are expensed in the period incurred. Initial costs associated with internally-developed-and-used software are expensed until it is determined that the project has reached the application development stage, after which subsequent additions, modifications, or upgrades are capitalized to the extent that they add functionality. Our capitalized software consists primarily of enterprise resource system software, warehouse management software, and point of sale software. Amortization for software is provided using the straight-line method over the estimated useful asset lives, which are reviewed periodically and range from 2 to 8 years. 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, non-product, and non-manufacturing assets, such as our global information systems, is included in ‘Selling, general, and administrative expenses’ in the consolidated statements of operations.

Amortization for patents, copyrights, and trademarks is provided using the straight-line method over the estimated useful asset lives, which are reviewed periodically and range from 7 to 25 years.
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 2033. 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.

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 6 — Leases for additional information.
Derivative Foreign Currency Contracts
Derivative Foreign Currency Contracts

We enter into forward foreign currency exchange contracts to mitigate the potential impact of foreign currency exchange rate risk. By policy, we do not enter into these contracts for trading purposes or speculation. The fair value of these contracts is reported either as an asset or liability in our consolidated balance sheets. Changes in the fair value of these contracts are recorded in ‘Foreign currency losses, net’ in our consolidated statements of operations. We did not designate any derivative instruments for hedge accounting during any of the periods presented. See Note 8 — Derivative Financial Instruments for further information.
Our derivative instruments are recorded at fair value as a derivative asset or liability in the consolidated balance sheets. We report derivative instruments with the same counterparty on a net basis when a master netting arrangement is in place. Changes in fair value are recognized within ‘Foreign currency losses, net’ in the consolidated statements of operations. 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.
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 U.S. Dollars 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 disposition of a subsidiary, at which time accumulated translation gains or losses are reclassified into net income.
Revenue Recognition, Shipping and Handling Costs and Fees and Cost of Sales
Revenue Recognition

See Note 11 — 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, depreciation, 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 also 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.
Share-Based Compensation
Share-Based Compensation

Stock Options

Stock options are granted with exercise prices equal to the fair market value of our common stock on the date of grant. We use the Black-Scholes option-pricing model to estimate the grant date fair value of stock options, which requires the use of assumptions, including the expected term of the option, expected volatility of our stock price, our expected dividend yield, and the risk-free interest rate, among others. These assumptions reflect our best estimates; however, they involve inherent uncertainties including market conditions and employee behavior that are generally outside of our control. We expense all share-based compensation awarded based on the grant date fair value of the awards using the straight-line method over the requisite service period, adjusted for forfeitures as they occur.

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 12 — Share-Based Compensation for additional information related to share-based compensation.
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 assets involved in Crocs’ retail business, 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. 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 3 — Property and Equipment, Net and Note 6 — Leases for a discussion of impairment losses recorded during the periods presented.
Foreign Currency Losses, Net Foreign Currency Losses, NetForeign currency 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.
Other Income, Net
Other Income, Net

Other income, net primarily includes gains and losses associated with activities not directly related to making and selling footwear.
Income Taxes Income TaxesIncome 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 ShareBasic 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, 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 7 — Fair Value Measurements for further discussion related to estimated fair value measurements.
Recent Accounting Pronouncements
New Accounting Pronouncement Adopted

Simplifying Accounting for Income Taxes

In December 2019, the FASB issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements, and interim recognition of enactment of tax laws or rate changes. On January 1, 2021, we adopted the guidance. The adoption did not have a material effect on our consolidated financial statements.
New Accounting Pronouncements Not Yet Adopted

Reference Rate Reform

In March 2020, the FASB issued optional guidance related to reference rate reform, which provides practical expedients for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. This guidance is applicable for our revolving borrowing instruments, which use LIBOR as a reference rate, and is available for adoption effective immediately, but is only available through December 31, 2022. We are currently evaluating the potential impact of this standard on our consolidated financial statements.

Business Combinations

In October 2021, the FASB issued new guidance primarily related to the accounting for contract assets and contract liabilities from contracts with customers in a business combination. The standard will be effective for annual reporting periods beginning after December 31, 2022, including interim reporting periods within those periods, with early adoption permitted. We are currently evaluating the impact of adopting this new accounting guidance on our consolidated financial statements.

Other Pronouncements

Other new pronouncements issued but not effective until after December 31, 2021 are not expected to have a material impact on our consolidated financial statements.
v3.22.0.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2021
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.
v3.22.0.1
PROPERTY AND EQUIPMENT, NET (Tables)
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property, Plant and Equipment and Depreciation Expense
‘Property and equipment, net’ consists of the following:
 December 31,
 20212020
 (in thousands)
Leasehold improvements$64,625 $66,661 
Machinery and equipment53,976 47,107 
Furniture, fixtures, and other20,210 21,817 
Construction-in-progress53,332 8,187 
Property and equipment192,143 143,772 
Less: Accumulated depreciation and amortization(83,745)(86,305)
Property and equipment, net$108,398 $57,467 
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,
202120202019
(in thousands)
Cost of sales$6,234 $3,921 $1,711 
Selling, general and administrative expenses8,708 7,914 7,174 
Total depreciation and amortization expense$14,942 $11,835 $8,885 
v3.22.0.1
GOODWILL AND INTANGIBLE ASSETS, NET (Tables)
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets, net
‘Intangible assets, net’ reported in the consolidated balance sheets consist of the following:
December 31, 2021December 31, 2020
GrossAccum. Amortiz.NetGrossAccum. Amortiz.Net
(in thousands)
Intangible assets subject to amortization:
Capitalized software$128,843 $(104,637)$24,206 $124,544 $(92,075)$32,469 
Patents, copyrights, and trademarks4,308 (3,530)778 3,774 (3,351)423 
Intangible assets not subject to amortization:
In progress3,739 — 3,739 4,660 — 4,660 
Trademarks and other79 — 79 84 — 84 
Total$136,969 $(108,167)$28,802 $133,062 $(95,426)$37,636 
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,
202120202019
(in thousands)
Cost of sales$4,779 $3,975 $3,398 
Selling, general and administrative expenses12,255 11,809 11,930 
Total amortization expense$17,034 $15,784 $15,328 
Schedule of Future Amortization of Intangible Assets Estimated future annual amortization expense of intangible assets is:
As of
December 31, 2021

(in thousands)
2022$6,999 
20236,280 
20245,107 
20253,805 
20262,132 
Thereafter661 
Total$24,984 
v3.22.0.1
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2021
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,
20212020
 (in thousands)
Accrued compensation and benefits$62,945 $48,870 
Professional services 33,997 18,478 
Fulfillment, freight, and duties15,629 17,868 
Sales/use and value added taxes payable13,049 12,480 
Return liabilities10,342 6,906 
Accrued rent and occupancy7,431 3,818 
Royalties payable and deferred revenue7,425 6,254 
Other16,069 12,030 
Total accrued expenses and other liabilities$166,887 $126,704 
v3.22.0.1
LEASES (Tables)
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Schedule of Rights-of-use Assets and Operating Lease Liabilities
Amounts reported in the consolidated balance sheets were:
December 31,
20212020
(in thousands)
Assets:
Right-of-use assets$160,768 $167,421 
Liabilities:
Current operating lease liabilities$42,932 $47,064 
Long-term operating lease liabilities149,237 146,401 
Total operating lease liabilities$192,169 $193,465 
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,
20212020
(in thousands)
Operating lease cost $58,283 $61,583 
Short-term lease cost7,585 4,898 
Variable lease cost32,490 15,691 
Total lease costs$98,358 $82,172 

Other information related to leases, including supplemental cash flow information, consists of:
Year Ended December 31,
20212020
(in thousands)
Cash paid for operating leases$61,412 $59,579 
Right-of-use assets obtained in exchange for operating lease liabilities55,035 55,369 
Schedule of Maturities of Operating Lease Liabilities
The maturities of our operating lease liabilities were:
As of
December 31, 2021
(in thousands)
2022$44,898 
202338,819 
202425,802 
202518,934 
202616,605 
Thereafter75,421 
Total future minimum lease payments220,479 
Less: imputed interest(28,310)
Total operating lease liabilities$192,169 
v3.22.0.1
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2021
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, 2021 and 2020 were:
December 31, 2021December 31, 2020
Carrying ValueFair
Value		Carrying ValueFair
Value
(in thousands)
2029 Notes$350,000 $346,281 $— $— 
2031 Notes350,000 341,250 — — 
Revolving credit facilities85,000 85,000 180,000 180,000 
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,
202120202019
(in thousands)
Retail store assets impairment (1)
$— $2,412 $— 
Right-of-use assets impairment (1)
— 18,659 — 
Total asset impairments$— $21,071 $— 
(1) During the year ended December 31, 2020, we recognized impairments for a retail location in New York City of $2.4 million to retail store assets and $17.6 million to the right-of-use asset. We also recognized an impairment of $1.1 million to the right-of-use asset for our corporate headquarters in Niwot, Colorado, as a result of our relocation to Broomfield, Colorado.
v3.22.0.1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2021
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, 2021December 31, 2020
Derivative AssetsDerivative LiabilitiesDerivative AssetsDerivative Liabilities
(in thousands)
Forward foreign currency exchange contracts$724 $(938)$794 $(1,225)
Netting of counterparty contracts(724)724 (794)794 
Foreign currency forward contract derivatives$— $(214)$— $(431)
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, 2021December 31, 2020
NotionalFair ValueNotionalFair Value
(in thousands)
Singapore Dollar$43,723 $(296)$24,211 $457 
British Pound Sterling25,795 104 16,134 (182)
Euro21,198 162 28,851 (82)
South Korean Won14,201 (112)3,741 (56)
Japanese Yen12,910 80 17,447 (240)
Indian Rupee10,379 (86)18,937 (134)
Other currencies19,481 (66)9,675 (194)
Total$147,687 $(214)$118,996 $(431)
Latest maturity dateJanuary 2022January 2021
Schedule of Gains / Losses from Foreign Currency Transactions and Derivative Contracts Amounts reported in ‘Foreign currency 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,
 202120202019
 (in thousands)
Foreign currency transaction gains (losses)
$100 $941 $(356)
Foreign currency forward exchange contracts losses
(240)(2,069)(967)
Foreign currency losses, net
$(140)$(1,128)$(1,323)
v3.22.0.1
LONG-TERM BORROWINGS (Tables)
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Components Of Our Consolidated Debt Our borrowings were as follows:
Stated Interest RateEffective Interest RateDecember 31,
Maturity20212020
(in thousands)
Notes issuance of $350.0 million
20294.250 %4.64 %$350,000 $— 
Notes issuance of $350.0 million
20314.125 %4.35 %350,000 — 
Revolving credit facilities85,000 180,000 
Total face value of long-term borrowings785,000 180,000 
Less:
Unamortized issuance costs13,610 — 
Current portion of borrowings— — 
Total long-term borrowings$771,390 $180,000 
v3.22.0.1
REVENUES (Tables)
 12 Months Ended
Dec. 31, 2021
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, 2021
AmericasAsia PacificEMEAOther BusinessesTotal
(in thousands)
Channel:
Wholesale$727,264 $184,335 $262,395 $87 $1,174,081 
Direct-to-consumer (1)
879,748 165,825 93,762 — 1,139,335 
Total revenues$1,607,012 $350,160 $356,157 $87 $2,313,416 
Year Ended December 31, 2020
AmericasAsia PacificEMEAOther BusinessesTotal
(in thousands)
Channel:
Wholesale$390,930 $133,416 $168,410 $163 $692,919 
Direct-to-consumer (1)
472,683 145,099 75,250 — 693,032 
Total revenues$863,613 $278,515 $243,660 $163 $1,385,951 
Year Ended December 31, 2019
AmericasAsia PacificEMEAOther BusinessesTotal
(in thousands)
Channel:
Wholesale$275,284 $207,405 $173,480 $58 $656,227 
Direct-to-consumer (1)
365,231 140,667 68,468 — 574,366 
Total revenues$640,515 $348,072 $241,948 $58 $1,230,593 
(1) Direct-to-consumer revenues consist of sales generated through our company-operated retail stores (previously our “Retail” channel) and company-operated e-commerce websites and third-party e-commerce marketplaces (previously our “E-commerce” channel).
v3.22.0.1
SHARE-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Schedule of Share-based Compensation Expense
Pre-tax share-based compensation expense reported in the consolidated statements of operations was:
Year Ended December 31,
202120202019
(in thousands)
Cost of sales$461 $210 $580 
Selling, general and administrative expenses37,661 16,151 13,832 
Total share-based compensation expense$38,122 $16,361 $14,412 
Stock Option Activity
Stock option activity during the year ended December 31, 2021 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, 2020
232 $8.29 5.84$12,586 
Granted— — 
Exercised(15)15.73 
Forfeited or expired— — 
Outstanding as of December 31, 2021
217 $7.78 5.14$26,076 
Exercisable at December 31, 2021
217 $7.78 5.14$26,076 
Vested at December 31, 2021
217 $7.78 5.14$26,076 
Schedule Of Restricted Stock Award And Restricted Stock Unit Activity
RSA and RSU activity during the year ended December 31, 2021 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, 2020
3 $37.79 1,830 $25.25 
Granted5 88.68 774 76.28 
Vested(6)63.24 (895)27.79 
Forfeited— — (254)31.67 
Unvested at December 31, 2021
2 $105.18 1,455 $49.70 
v3.22.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2021
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,
 202120202019
 (in thousands)
Income before taxes:   
U.S. $510,706 $133,574 $58,822 
Foreign153,143 73,405 60,500 
Total income before taxes$663,849 $206,979 $119,322 
Income tax expense (benefit):   
Current income taxes:   
U.S. federal$94,548 $698 $1,284 
U.S. state28,460 6,577 1,427 
Foreign56,430 211,904 13,373 
Total current income taxes179,438 219,179 16,084 
Deferred income taxes:   
U.S. federal791 529 (10,249)
U.S. state32 (2,381)(3,579)
Foreign(242,106)(323,209)(2,431)
Total deferred income taxes(241,283)(325,061)(16,259)
Total income tax benefit
$(61,845)$(105,882)$(175)
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,
 202120202019
 (in thousands)
Income tax expense and rate attributable to:
Federal income tax rate$139,408 21.0 %$43,466 21.0 %$25,058 21.0 %
State income tax rate, net of federal benefit
22,952 3.5 %7,231 3.5 %5,983 5.0 %
Foreign income tax rate differential18,890 2.8 %(6,060)(2.9)%1,994 1.7 %
GILTI, net14,157 2.1 %7,515 3.6 %7,585 6.4 %
Non-deductible / non-taxable items9,637 1.5 %6,871 3.3 %6,727 5.7 %
Change in valuation allowance(192,337)(29.0)%143,012 69.0 %(33,691)(28.2)%
Foreign tax credits(19,925)(3.0)%(15,904)(7.7)%(12,541)(10.4)%
Research and development credits(13,104)(2.0)%(148)(0.1)%(189)(0.2)%
Uncertain tax positions21,341 3.2 %200,571 96.9 %278 0.2 %
Share-based compensation(11,930)(1.8)%(1,303)(0.6)%(2,715)(2.3)%
Intra-Entity IP Transfer(41,858)(6.3)%(492,470)(237.9)%— — %
Enacted changes in tax law(9,554)(1.4)%— — %634 0.5 %
Other478 0.1 %1,337 0.7 %702 0.5 %
Effective income tax expense and rate$(61,845)(9.3)%$(105,882)(51.2)%$(175)(0.1)%
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,
 20212020
 (in thousands)
Non-current deferred tax assets:  
Share-based compensation expense$2,706 $1,934 
Accruals, reserves, and other expenses24,346 16,905 
Net operating loss24,573 26,842 
Intangible assets502,100 493,701 
Foreign tax credit39,442 38,948 
Operating lease liabilities35,755 41,391 
Other5,811 5,601 
Valuation allowance(26,467)(226,655)
Total non-current deferred tax assets$608,266 $398,667 
Non-current deferred tax liabilities:  
Unrealized gain on foreign currency$— $(506)
Property and equipment(12,189)(13,583)
Right-of-use assets(28,598)(33,769)
Other(278)(25)
Total non-current deferred tax liabilities$(41,065)$(47,883)
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,
 202120202019
 (in thousands)
Unrecognized tax benefit as of January 1$206,209 $4,613 $4,511 
Additions in tax positions taken in prior period6,169 519 631 
Reductions in tax positions taken in prior period(963)(340)(1,532)
Additions in tax positions taken in current period23,061 200,947 1,786 
Settlements(763)(294)(391)
Lapse of statute of limitations(342)(258)(368)
Cumulative foreign currency translation adjustment(14,972)1,022 (24)
Unrecognized tax benefit as of December 31$218,399 $206,209 $4,613 
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, 2021:
The Netherlands2009 to 2021
Canada2014 to 2021
Japan2014 to 2021
China2011 to 2021
Singapore2017 to 2021
United States2007 to 2021
v3.22.0.1
EARNINGS PER SHARE (Tables)
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Summary Of Basic And Diluted Earnings Per Share
Basic and diluted EPS for the years ended December 31, 2021, 2020, and 2019 were as follows: 
Year Ended December 31,
202120202019
(in thousands, except per share data)
Numerator:
Net income attributable to common stockholders
$725,694 $312,861 $119,497 
Denominator:   
Weighted average common shares outstanding - basic62,464 67,386 70,357 
Plus: Dilutive effect of stock options and unvested restricted stock units
1,254 1,158 1,414 
Weighted average common shares outstanding - diluted
63,718 68,544 71,771 
Net income per common share:
Basic$11.62 $4.64 $1.70 
Diluted$11.39 $4.56 $1.66 
v3.22.0.1
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Information Related to Reportable Operating Segments
The following tables set forth information related to reportable operating segments:
Year Ended December 31,
202120202019
(in thousands)
Revenues:
Americas$1,607,012 $863,613 $640,515 
Asia Pacific350,160 278,515 348,072 
EMEA356,157 243,660 241,948 
Segment revenues2,313,329 1,385,788 1,230,535 
Other businesses87 163 58 
Total consolidated revenues$2,313,416 $1,385,951 $1,230,593 
Income from operations (1)(2):
Americas$778,310 $323,512 $179,199 
Asia Pacific71,936 32,830 60,724 
EMEA111,539 65,914 64,771 
Total segment income from operations961,785 422,256 304,694 
Reconciliation of segment income from operations to income before income taxes:
Unallocated corporate and other (1)(2)
(278,721)(208,132)(176,045)
Total consolidated income from operations683,064 214,124 128,649 
Foreign currency gains (losses), net(140)(1,128)(1,323)
Interest income775 215 601 
Interest expense(21,647)(6,742)(8,636)
Other income, net1,797 510 31 
Income before income taxes$663,849 $206,979 $119,322 
Depreciation and amortization:
Americas$7,747 $3,528 $3,593 
Asia Pacific1,629 1,138 963 
EMEA1,728 730 793 
Total segment depreciation and amortization11,104 5,396 5,349 
Unallocated corporate and other (1)(2)
20,872 22,223 18,864 
Total consolidated depreciation and amortization$31,976 $27,619 $24,213 
(1) In the first quarter of 2021, certain costs previously reported within ‘Other Businesses’ were shifted to the Americas, Asia Pacific, and EMEA segments. Additionally, any costs remaining in ‘Other Businesses,’ including depreciation and amortization, have been consolidated into ‘Unallocated corporate and other.’ In the second quarter of 2021, certain marketing expenses previously reported within ‘Unallocated corporate and other’ were shifted to the Americas, Asia Pacific, and EMEA segments. The previously reported amounts for income from operations for the years ended December 31, 2020 and 2019 have been revised to conform to current period presentation. See the ‘Impacts of segment composition change’ and ‘Impacts of marketing expense allocations’ tables below for more information.
(2) Unallocated corporate and other primarily includes corporate support and administrative functions, certain royalty income, costs associated with share-based compensation, research and development, brand marketing, legal, and depreciation and amortization of corporate and other assets not allocated to operating segments.
Impacts of segment composition change:
Year Ended December 31,
20202019
(in thousands)
Impacts on income from operations:
Americas$(29,285)$(12,123)
Asia Pacific(4,512)(6,497)
EMEA4,410 (3,240)
Total impact on segment income from operations$(29,387)$(21,860)
Unallocated corporate and other$29,387 $21,860 

Impacts of marketing expense allocations:
Year Ended December 31,
20202019
(in thousands)
Impacts on income from operations:
Americas$(9,133)$(13,546)
Asia Pacific(10,100)(13,424)
EMEA(1,810)(2,315)
Total impact on segment income from operations$(21,043)$(29,285)
Unallocated corporate and other$21,043 $29,285 

There were no customers who represented 10% or more of consolidated revenues during the years ended December 31, 2021, 2020 and 2019. The following table sets forth certain geographical information regarding Crocs’ revenues for the periods as shown:
 Year Ended December 31,
 202120202019
 (in thousands)
Location:   
United States$1,507,482 $802,952 $563,473 
International (1)
805,934 582,999 667,120 
Total revenues$2,313,416 $1,385,951 $1,230,593 
(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,
 20212020
 (in thousands)
Location:  
United States$80,613 $49,527 
International (1)
27,785 7,940 
Total property and equipment, net$108,398 $57,467 
(1) During the year ended December 31, 2021, property and equipment, net in the Netherlands represented approximately 20% of consolidated property and equipment, net, comprised primarily of property and equipment related to the distribution center in Dordrecht and the warehouses in Rotterdam and Oudenbosch. No other individual country represented 10% or more of consolidated property and equipment, net in any of the years presented.
v3.22.0.1
UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2021
Quarterly Financial Information Disclosure [Abstract]  
Unaudited Quarterly Consolidated Financial Information
 For the Quarter Ended
 March 31, 2021June 30, 2021September 30, 2021December 31, 2021
 (in thousands, except per share data)
Revenues$460,098 $640,773 $625,919 $586,626 
Gross profit253,219 395,181 399,796 372,024 
Income from operations
124,686 195,322 203,068 159,988 
Net income (1)
98,398 318,954 153,489 154,853 
Basic income per common share (2)
$1.50 $5.02 $2.47 $2.63 
Diluted income per common share (2)
$1.47 $4.93 $2.42 $2.57 
(1) During the three months ended June 30, 2021, a jurisdiction for which we have historically recorded significant valuation allowances enacted a favorable change in the tax law related to net operating loss carryforwards. This change in tax law impacted the assessment of valuation allowances in the jurisdiction. This resulted in a $176.9 million discrete tax benefit for the release of valuation allowances resulting from the enactment of this tax law change.
(2) Basic and diluted income per common share are computed independently for each of the quarters presented. Therefore, the sum of the quarters may not equal the annual amounts presented in the consolidated statements of operations.
 For the Quarter Ended
 March 31, 2020June 30, 2020September 30, 2020December 31, 2020
 (in thousands, except per share data)
Revenues$281,160 $331,549 $361,736 $411,506 
Gross profit134,162 179,933 206,769 229,084 
Income from operations
20,812 56,595 72,086 64,631 
Net income (1)
11,091 56,551 61,889 183,330 
Basic income (loss) per common share (2)
$0.16 $0.84 $0.92 $2.75 
Diluted income (loss) per common share (2)
$0.16 $0.83 $0.91 $2.69 
(1) During the three months ended December 31, 2020, we completed an intra-entity transfer of certain intellectual property rights, resulting in the recognition of a $127.7 million tax benefit. See Note 13 — Income Taxes for more information. Additionally, in the three months ended December 31, 2020, we recorded an impairment for a retail location in New York City of $20.0 million and for our former corporate headquarters of $1.1 million.
(2) Basic and diluted income per common share are computed independently for each of the quarters presented. Therefore, the sum of the quarters may not equal the annual amounts presented in the consolidated statements of operations. Additionally, for the three months ended December 31, 2020, basic and diluted income per common share include the impact of the repurchase of 1.7 million shares of our common stock for $131.7 million, including a $125.0 million ASR, as described in more detail in Note 10 — Equity.
v3.22.0.1
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
$ in Millions
 10 Months Ended 12 Months Ended
Nov. 04, 2019
shares
Nov. 04, 2019
USD ($)
Dec. 31, 2021
USD ($)
renewalOption
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
affiliate
Nov. 03, 2019
shares
Related Party Transaction [Line Items]            
Number of affiliates that provided services | affiliate         3  
Number of renewal options (or more) | renewalOption     1      
Marketing expenses, including advertising, production, promotion, and agency expenses     $ 172.7 $ 101.0 $ 83.2  
Prepaid advertising and promotional endorsement costs     1.2 2.0    
Research, design and development expense     $ 13.7 $ 10.2 11.8  
Minimum | Capitalized software            
Related Party Transaction [Line Items]            
Intangible asset useful life     2 years      
Minimum | Patents, copyrights, and trademarks            
Related Party Transaction [Line Items]            
Intangible asset useful life     7 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 | Capitalized software            
Related Party Transaction [Line Items]            
Intangible asset useful life     8 years      
Maximum | Patents, copyrights, and trademarks            
Related Party Transaction [Line Items]            
Intangible asset useful life     25 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      
Blackstone            
Related Party Transaction [Line Items]            
Paid for services received   $ 2.2        
Blackstone | Legal Costs For Blackstone Affiliates Public Offering Transaction            
Related Party Transaction [Line Items]            
Paid for services received         $ 0.3  
Blackstone Capital Partners VI LP. | Blackstone            
Related Party Transaction [Line Items]            
Number of shares owned (shares) | shares           6,899,027
Number of shares sold (shares) | shares 6,864,545          
Gregg S. Ribatt | Blackstone            
Related Party Transaction [Line Items]            
Number of shares sold (shares) | shares 34,482          
v3.22.0.1
PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Property, plant and equipment [Line Items]    
Property and equipment $ 192,143 $ 143,772
Less: Accumulated depreciation and amortization (83,745) (86,305)
Property and equipment, net 108,398 57,467
Leasehold improvements    
Property, plant and equipment [Line Items]    
Property and equipment 64,625 66,661
Machinery and equipment    
Property, plant and equipment [Line Items]    
Property and equipment 53,976 47,107
Furniture, fixtures, and other    
Property, plant and equipment [Line Items]    
Property and equipment 20,210 21,817
Construction-in-progress    
Property, plant and equipment [Line Items]    
Property and equipment $ 53,332 $ 8,187
v3.22.0.1
PROPERTY AND EQUIPMENT, NET (Schedule of Depreciation and Amortization Expense) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Property, plant and equipment [Line Items]      
Depreciation $ 14,942 $ 11,835 $ 8,885
Cost of sales      
Property, plant and equipment [Line Items]      
Depreciation 6,234 3,921 1,711
Selling, general and administrative expenses      
Property, plant and equipment [Line Items]      
Depreciation $ 8,708 $ 7,914 $ 7,174
v3.22.0.1
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Abstract]      
Net gain (loss) on disposal of property and equipment and intangible assets $ 0.3 $ (0.3) $ 0.2
v3.22.0.1
GOODWILL AND INTANGIBLE ASSETS, NET (Goodwill) (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Accumulated goodwill impairment $ 0.8
v3.22.0.1
GOODWILL AND INTANGIBLE ASSETS, NET (Summary of Intangible Assets) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Accumulated amortization $ (108,167) $ (95,426)
Total 24,984  
Intangible assets, gross 136,969 133,062
Intangible assets, net $ 28,802 37,636
Weighted average remaining useful life of intangible assets 5 years 10 months 24 days  
In progress    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets $ 3,739 4,660
Trademarks and other    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 79 84
Capitalized software    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount of finite-lived intangible assets 128,843 124,544
Accumulated amortization (104,637) (92,075)
Total 24,206 32,469
Patents, copyrights, and trademarks    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying amount of finite-lived intangible assets 4,308 3,774
Accumulated amortization (3,530) (3,351)
Total $ 778 $ 423
v3.22.0.1
GOODWILL AND INTANGIBLE ASSETS, NET (Schedule of Intangible Asset Amortization Expense) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]      
Amortization expense $ 17,034 $ 15,784 $ 15,328
Cost of sales      
Finite-Lived Intangible Assets [Line Items]      
Amortization expense 4,779 3,975 3,398
Selling, general and administrative expenses      
Finite-Lived Intangible Assets [Line Items]      
Amortization expense $ 12,255 $ 11,809 $ 11,930
v3.22.0.1
GOODWILL AND INTANGIBLE ASSETS, NET (Schedule Of Future Amortization Of Intangible Assets) (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2022 $ 6,999
2023 6,280
2024 5,107
2025 3,805
2026 2,132
Thereafter 661
Total $ 24,984
v3.22.0.1
ACCRUED EXPENSES AND OTHER LIABILITIES (Schedule Of Accrued Expenses & Other Current Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Payables and Accruals [Abstract]    
Accrued compensation and benefits $ 62,945 $ 48,870
Professional services 33,997 18,478
Fulfillment, freight, and duties 15,629 17,868
Sales/use and value added taxes payable 13,049 12,480
Return liabilities 10,342 6,906
Accrued rent and occupancy 7,431 3,818
Royalties payable and deferred revenue 7,425 6,254
Other 16,069 12,030
Total accrued expenses and other liabilities $ 166,887 $ 126,704
v3.22.0.1
LEASES (Narrative) (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Lessee, Lease, Description [Line Items]    
Rent abatement $ 1,400,000 $ 1,500,000
Outstanding deferred rent $ 0 $ 400,000
Weighted average remaining lease term 7 years 1 month 6 days 6 years 8 months 12 days
Weighted average discount rate 3.80% 4.40%
Dayton, Ohio    
Lessee, Lease, Description [Line Items]    
Leases not yet commenced $ 39,000,000  
Broomfield, Colorado    
Lessee, Lease, Description [Line Items]    
Leases not yet commenced $ 44,000,000  
v3.22.0.1
LEASES (Right-of-Use Assets and Operating Lease Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
Right-of-use assets $ 160,768 $ 167,421
Current operating lease liabilities 42,932 47,064
Long-term operating lease liabilities 149,237 146,401
Total operating lease liabilities $ 192,169 $ 193,465
v3.22.0.1
LEASES (Lease Costs and Other Information) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]      
Operating lease cost $ 58,283 $ 61,583 $ 60,142
Short-term lease cost 7,585 4,898  
Variable lease cost 32,490 15,691  
Total lease costs 98,358 82,172  
Cash paid for operating leases 61,412 59,579  
Right-of-use assets obtained in exchange for operating lease liabilities $ 55,035 $ 55,369  
v3.22.0.1
LEASES (Maturities of Company's Operating Lease Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
2022 $ 44,898  
2023 38,819  
2024 25,802  
2025 18,934  
2026 16,605  
Thereafter 75,421  
Total future minimum lease payments 220,479  
Less: imputed interest (28,310)  
Total operating lease liabilities $ 192,169 $ 193,465
v3.22.0.1
FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]      
Inventory donation $ 0 $ 9,900,000 $ 0
Senior Notes | 2029 Notes      
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]      
Aggregate principal amount 350,000,000    
Senior Notes | 2031 Notes      
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]      
Aggregate principal amount 350,000,000    
Recurring      
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]      
Fair value of Company's derivative liability $ (200,000) $ (400,000)  
v3.22.0.1
FAIR VALUE MEASUREMENTS (Schedule of Assets and Liabilities at Fair Value) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]        
Total asset impairments   $ 0 $ 21,071 $ 0
New York City Retail Location        
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]        
Retail store assets impairment     2,400  
Right-of-use assets impairment     17,600  
Corporate Headquarters Relocation        
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]        
Right-of-use assets impairment $ 1,100      
Carrying Value | Line of Credit | Revolving credit facilities        
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]        
Outstanding borrowings 180,000 85,000 180,000  
Carrying Value | 2029 Notes | Senior Notes        
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]        
Outstanding borrowings 0 350,000 0  
Carrying Value | 2031 Notes | Senior Notes        
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]        
Outstanding borrowings 0 350,000 0  
Fair Value | Line of Credit | Revolving credit facilities        
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]        
Outstanding borrowings 180,000 85,000 180,000  
Fair Value | 2029 Notes | Senior Notes        
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]        
Outstanding borrowings 0 346,281 0  
Fair Value | 2031 Notes | Senior Notes        
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]        
Outstanding borrowings $ 0 341,250 0  
Nonrecurring | Fair Value | Level 3        
Fair value assets and liabilities measured on a recurring and nonrecurring Basis [Line Items]        
Retail store assets impairment   0 2,412 0
Right-of-use assets impairment   0 18,659 0
Total asset impairments   $ 0 $ 21,071 $ 0
v3.22.0.1
DERIVATIVE FINANCIAL INSTRUMENTS (Fair Value of Derivative Assets and Liabilities) (Details) - Level 2 - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Foreign Currency Derivatives [Abstract]    
Derivative assets - Forward foreign currency exchange contracts $ 724 $ 794
Derivative assets - Netting of counterparty contracts (724) (794)
Derivative assets - Foreign currency forward contract derivatives 0 0
Derivative liabilities - Forward foreign currency exchange contracts (938) (1,225)
Derivative liabilities - Netting of counterparty contracts 724 794
Derivative liabilities - Foreign currency forward contract derivatives $ (214) $ (431)
v3.22.0.1
DERIVATIVE FINANCIAL INSTRUMENTS (Summary Of Derivative Financial Instruments Notional Amounts On Outstanding Positions) (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Derivatives, Fair Value [Line Items]    
Notional $ 147,687 $ 118,996
Fair Value (214) (431)
Singapore Dollar    
Derivatives, Fair Value [Line Items]    
Notional 43,723 24,211
Fair Value (296) 457
British Pound Sterling    
Derivatives, Fair Value [Line Items]    
Notional 25,795 16,134
Fair Value 104 (182)
Euro    
Derivatives, Fair Value [Line Items]    
Notional 21,198 28,851
Fair Value 162 (82)
South Korean Won    
Derivatives, Fair Value [Line Items]    
Notional 14,201 3,741
Fair Value (112) (56)
Japanese Yen    
Derivatives, Fair Value [Line Items]    
Notional 12,910 17,447
Fair Value 80 (240)
Indian Rupee    
Derivatives, Fair Value [Line Items]    
Notional 10,379 18,937
Fair Value (86) (134)
Other currencies    
Derivatives, Fair Value [Line Items]    
Notional 19,481 9,675
Fair Value $ (66) $ (194)
v3.22.0.1
DERIVATIVE FINANCIAL INSTRUMENTS (Losses on Foreign Currency Derivatives) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]      
Foreign currency transaction gains (losses) $ 100 $ 941 $ (356)
Foreign currency forward exchange contracts losses (240) (2,069) (967)
Foreign currency losses, net $ (140) $ (1,128) $ (1,323)
v3.22.0.1
LONG-TERM BORROWINGS (Components Of Our Consolidated Debt And Capital Lease Obligations) (Details) - USD ($)
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
Total face value of long-term borrowings $ 785,000,000 $ 180,000,000
Unamortized issuance costs 13,610,000 0
Current portion of borrowings 0 0
Long-term borrowings 771,390,000 180,000,000
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 0
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 0
Line of Credit | Revolving credit facilities    
Debt Instrument [Line Items]    
Total face value of long-term borrowings $ 85,000,000 $ 180,000,000
v3.22.0.1
LONG-TERM BORROWINGS (Revolving Credit Facilities and Notes Payable) (Details)
 1 Months Ended 12 Months Ended
Aug. 10, 2021
USD ($)
Mar. 12, 2021
Jul. 31, 2019
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Jan. 31, 2022
USD ($)
Jan. 31, 2022
CNY (¥)
May 31, 2021
USD ($)
May 31, 2021
CNY (¥)
Mar. 31, 2020
Line of Credit Facility [Line Items]                    
Borrowings under credit facility       $ 0 $ 0          
Revolving credit facilities | Senior Revolving Credit Facility                    
Line of Credit Facility [Line Items]                    
Current borrowing capacity     $ 500,000,000 500,000,000            
Additional borrowing capacity available under revolving credit facility     $ 100,000,000              
Minimum interest coverage ratio     4.00              
Minimum borrowing capacity available for certain acquisitions     $ 40,000,000              
Outstanding borrowings on the Facility       85,000,000            
Available borrowing capacity       414,700,000 319,400,000          
Revolving credit facilities | Senior Revolving Credit Facility | From December 31, 2020 and thereafter                    
Line of Credit Facility [Line Items]                    
Maximum leverage coverage ratio     3.50             3.25
Revolving credit facilities | Senior Revolving Credit Facility | Fed Funds Rate                    
Line of Credit Facility [Line Items]                    
Margin on variable rate     0.25%              
Revolving credit facilities | Senior Revolving Credit Facility | Daily London Interbank Offered Rate                    
Line of Credit Facility [Line Items]                    
Margin on variable rate     1.00%              
Revolving credit facilities | Senior Revolving Credit Facility | Base Rate | Minimum                    
Line of Credit Facility [Line Items]                    
Margin on variable rate     0.25%              
Revolving credit facilities | Senior Revolving Credit Facility | Base Rate | Maximum                    
Line of Credit Facility [Line Items]                    
Margin on variable rate     0.875%              
Revolving credit facilities | Senior Revolving Credit Facility | LIBOR | Minimum                    
Line of Credit Facility [Line Items]                    
Margin on variable rate     1.25%              
Revolving credit facilities | Senior Revolving Credit Facility | LIBOR | Maximum                    
Line of Credit Facility [Line Items]                    
Margin on variable rate     1.875%              
Revolving credit facilities | Asia Pacific CMBC Revolving Credit Facility                    
Line of Credit Facility [Line Items]                    
Current borrowing capacity               $ 4,700,000 ¥ 30,000,000  
Revolving credit facilities | Asia Pacific CMBC Revolving Credit Facility | Subsequent event                    
Line of Credit Facility [Line Items]                    
Borrowing capacity under revolving credit facility           $ 1,600,000 ¥ 10,000,000      
Revolving credit facilities | Asia Pacific Citybank Revolving Credit Facility                    
Line of Credit Facility [Line Items]                    
Current borrowing capacity       $ 10,000,000            
Revolving credit facilities | Asia Pacific Citybank Revolving Credit Facility | LIBOR                    
Line of Credit Facility [Line Items]                    
Margin on variable rate       1.50%            
Revolving credit facilities | Asia Pacific Citybank Revolving Credit Facility | Prime Rate                    
Line of Credit Facility [Line Items]                    
Margin on variable rate       0.65%            
Revolving credit facilities | Asia Pacific Revolving Credit Facility                    
Line of Credit Facility [Line Items]                    
Outstanding borrowings on the Facility       $ 0 $ 0          
Letter of Credit | Senior Revolving Credit Facility                    
Line of Credit Facility [Line Items]                    
Outstanding borrowings on the Facility       300,000            
Senior Notes | 2029 Notes                    
Line of Credit Facility [Line Items]                    
Aggregate principal amount       350,000,000            
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]                    
Aggregate principal amount       $ 350,000,000            
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%                  
v3.22.0.1
EQUITY (Details)
 1 Months Ended 3 Months Ended 12 Months Ended
Jan. 31, 2021
shares
Dec. 31, 2020
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
vote
class_of_stock
$ / shares
shares
Dec. 31, 2020
USD ($)
$ / shares
shares
Dec. 31, 2019
USD ($)
shares
Sep. 23, 2021
USD ($)
Apr. 23, 2021
USD ($)
May 05, 2019
USD ($)
Feb. 20, 2018
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 $ 0.001          
Common stock authorized (shares)     250,000,000            
Number of votes entitled to for each common share | vote     1            
Stock repurchased during period (shares)   1,700,000              
Stock repurchased during period | $   $ 131,700,000              
Accelerated share repurchase program | $   $ 125,000,000              
Preferred stock authorized (shares)     5,000,000            
Common Stock                  
Class of Stock [Line Items]                  
Common stock authorized for repurchase | $           $ 1,000,000,000 $ 712,200,000   $ 500,000,000
Increase in amounts authorized for repurchase | $               $ 500,000,000  
Stock repurchased during period (shares)     8,200,000 3,200,000 6,100,000        
Stock repurchased during period | $     $ 1,000,000,000   $ 147,200,000        
Remaining authorization to repurchase | $     $ 1,050,000,000            
Common Stock | September 2021                  
Class of Stock [Line Items]                  
Stock repurchased during period (shares)     3,200,000            
Accelerated share repurchase program | $     $ 500,000,000            
Common Stock | April 2021                  
Class of Stock [Line Items]                  
Stock repurchased during period (shares)     2,900,000            
Accelerated share repurchase program | $     $ 300,000,000            
Common Stock | January 2021                  
Class of Stock [Line Items]                  
Stock repurchased during period (shares) 500,000                
Common Stock | November 2020                  
Class of Stock [Line Items]                  
Stock repurchased during period (shares)       1,500,000          
Stock repurchased during period | $       $ 170,800,000          
Accelerated share repurchase program | $       $ 125,000,000          
Series A Convertible Preferred Stock                  
Class of Stock [Line Items]                  
Preferred stock authorized (shares)     1,000,000            
Preferred stock, par value (in dollars per share) | $ / shares     $ 0.001            
Preferred stock issued (shares)     0            
Preferred stock outstanding (shares)     0            
v3.22.0.1
REVENUES (Revenue by Reportable Operating Segment and by Channel) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue [Line Items]                      
Revenues $ 586,626 $ 625,919 $ 640,773 $ 460,098 $ 411,506 $ 361,736 $ 331,549 $ 281,160 $ 2,313,416 $ 1,385,951 $ 1,230,593
Americas                      
Disaggregation of Revenue [Line Items]                      
Revenues                 1,607,012 863,613 640,515
Asia Pacific                      
Disaggregation of Revenue [Line Items]                      
Revenues                 350,160 278,515 348,072
EMEA                      
Disaggregation of Revenue [Line Items]                      
Revenues                 356,157 243,660 241,948
Other Businesses                      
Disaggregation of Revenue [Line Items]                      
Revenues                 87 163 58
Wholesale                      
Disaggregation of Revenue [Line Items]                      
Revenues                 1,174,081 692,919 656,227
Wholesale | Americas                      
Disaggregation of Revenue [Line Items]                      
Revenues                 727,264 390,930 275,284
Wholesale | Asia Pacific                      
Disaggregation of Revenue [Line Items]                      
Revenues                 184,335 133,416 207,405
Wholesale | EMEA                      
Disaggregation of Revenue [Line Items]                      
Revenues                 262,395 168,410 173,480
Wholesale | Other Businesses                      
Disaggregation of Revenue [Line Items]                      
Revenues                 87 163 58
Direct-to-consumer                      
Disaggregation of Revenue [Line Items]                      
Revenues                 1,139,335 693,032 574,366
Direct-to-consumer | Americas                      
Disaggregation of Revenue [Line Items]                      
Revenues                 879,748 472,683 365,231
Direct-to-consumer | Asia Pacific                      
Disaggregation of Revenue [Line Items]                      
Revenues                 165,825 145,099 140,667
Direct-to-consumer | EMEA                      
Disaggregation of Revenue [Line Items]                      
Revenues                 93,762 75,250 68,468
Direct-to-consumer | Other Businesses                      
Disaggregation of Revenue [Line Items]                      
Revenues                 $ 0 $ 0 $ 0
v3.22.0.1
REVENUES (Narrative) (Details)
 12 Months Ended
Dec. 31, 2021
USD ($)
segment
distribution_channel
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Revenue from External Customer [Line Items]      
Number of reportable segments | segment 3    
Number of distribution channels | distribution_channel 2    
Advance Customer Deposits      
Revenue from External Customer [Line Items]      
Deferred revenues $ 100,000 $ 700,000  
Refund Liability      
Revenue from External Customer [Line Items]      
Deferred revenues 10,300,000 6,900,000  
Change in Estimate of Product Transfers | Wholesale      
Revenue from External Customer [Line Items]      
Increase (decrease) in revenues $ 0 600,000 $ 400,000
Change in Estimate of Product Transfers | Direct-to-consumer      
Revenue from External Customer [Line Items]      
Increase (decrease) in revenues   $ 1,100,000 $ (100,000)
v3.22.0.1
SHARE-BASED COMPENSATION (Narrative) (Details)
shares in Millions
Dec. 31, 2021
shares
Share-based Payment Arrangement [Abstract]  
Shares available for future issuance (shares) 4.3
v3.22.0.1
SHARE-BASED COMPENSATION (Schedule of Share-based Compensation Expense) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total share-based compensation expense $ 38,122 $ 16,361 $ 14,412
Cost of sales      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total share-based compensation expense 461 210 580
Selling, general and administrative expenses      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Total share-based compensation expense $ 37,661 $ 16,151 $ 13,832
v3.22.0.1
SHARE-BASED COMPENSATION (Stock Option Activity) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Number of Options      
Options outstanding at beginning of period (shares) 232,000    
Granted (shares) 0 0 0
Exercised (shares) (15,000)    
Forfeited or expired (shares) 0    
Options outstanding at end of period (shares) 217,000 232,000  
Options exercisable at end of period (shares) 217,000    
Weighted Average Exercise Price      
Options outstanding, Weighted average exercise price at beginning of period (in dollars per share) $ 8.29    
Options granted, Weighted average exercise price (in dollars per share) 0    
Options exercised, Weighted average exercise price (in dollars per share) 15.73    
Options forfeited or expired, Weighted average exercise price (in dollars per share) 0    
Options outstanding, Weighted average exercise price at end of period (in dollars per share) 7.78 $ 8.29  
Options exercisable, Weighted average exercise price at end of period (in dollars per share) $ 7.78    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]      
Options outstanding, Weighted average remaining contractual life at beginning of period 5 years 1 month 20 days 5 years 10 months 2 days  
Options exercisable, Weighted average remaining contractual life at end of period 5 years 1 month 20 days    
Aggregate Intrinsic Value, Outstanding $ 26,076 $ 12,586  
Options exercisable, Aggregate intrinsic value at end of period $ 26,076    
Vested at December 31, 2021      
Vested and expected to vest at end of period (shares) 217,000    
Vested and expected to vest, Weighted average exercise price at end of period (in dollars per share) $ 7.78    
Vested and expected to vest, Weighted average remaining contractual life at end of period 5 years 1 month 20 days    
Vested and expected to vest, Aggregate intrinsic value at end of period $ 26,076    
v3.22.0.1
SHARE-BASED COMPENSATION (Stock Option Activity Narrative) (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (shares) 0 0 0
Stock Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Aggregate intrinsic value of options exercised $ 800,000 $ 800,000 $ 400,000
Proceeds from options exercised 200,000 $ 1,400,000 $ 400,000
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    
v3.22.0.1
SHARE-BASED COMPENSATION (Restricted Stock Awards And Restricted Stock Units Activity Narrative) (Details)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Jan. 11, 2021
shares
Dec. 31, 2021
USD ($)
vesting_installment
$ / shares
shares
Dec. 31, 2020
USD ($)
$ / shares
shares
Dec. 31, 2019
USD ($)
$ / shares
shares
Tranche One        
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items]        
Vesting percentage   33.00%    
Tranche Two        
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items]        
Vesting percentage   33.00%    
Tranche Three        
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items]        
Vesting percentage   33.00%    
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 (shares)   5    
Weighted average grant date fair value of granted (in dollars per share) | $ / shares   $ 88.68 $ 38.10 $ 20.53
Grant date fair value of awards | $   $ 0.4 $ 0.2 $ 0.2
Unrecognized share-based compensation expense related to unvested awards | $   $ 0.1    
Amortized over a weighted average period   4 months 24 days    
Awards vested in period (shares)   6    
Restricted Stock Units        
Schedule of Restricted Stock Award and Restricted Stock Unit Activity [Line Items]        
Shares granted in period (shares) 400 774    
Weighted average grant date fair value of granted (in dollars per share) | $ / shares   $ 76.28 $ 29.14 $ 25.37
Grant date fair value of awards | $   $ 24.9 $ 11.9 $ 9.9
Awards vested in period (shares)   895    
Weighted average trading price average trading days 30 days      
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 (shares)   200 600 300
Unrecognized share-based compensation expense related to unvested awards | $   $ 20.4    
Amortized over a weighted average period   1 year 6 months    
Awards vested in period (shares)   400 500 600
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 (shares)   600 500 1,000
Unrecognized share-based compensation expense related to unvested awards | $   $ 18.5    
Amortized over a weighted average period   1 year 9 months 18 days    
Awards vested in period (shares)   500 400 400
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%    
v3.22.0.1
SHARE-BASED COMPENSATION (Schedule Of Restricted Stock Award And Restricted Stock Unit Activity) (Details) - $ / shares
shares in Thousands
 12 Months Ended
Jan. 11, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Restricted Stock Awards        
Shares        
Unvested beginning balance (shares)   3    
Granted (shares)   5    
Vested (shares)   (6)    
Forfeited (shares)   0    
Unvested ending balance (shares)   2 3  
Weighted Average Grant Date Fair Value        
Weighted average grant date fair value beginning balance (in dollars per share)   $ 37.79    
Weighted average grant date fair value of granted (in dollars per share)   88.68 $ 38.10 $ 20.53
Weighted average grant date fair value of vested (in dollars per share)   63.24    
Weighted average grant date fair value of forfeited (in dollars per share)   0    
Weighted average grant date fair value ending balance (in dollars per share)   $ 105.18 $ 37.79  
Restricted Stock Units        
Shares        
Unvested beginning balance (shares)   1,830    
Granted (shares) 400 774    
Vested (shares)   (895)    
Forfeited (shares)   (254)    
Unvested ending balance (shares)   1,455 1,830  
Weighted Average Grant Date Fair Value        
Weighted average grant date fair value beginning balance (in dollars per share)   $ 25.25    
Weighted average grant date fair value of granted (in dollars per share)   76.28 $ 29.14 $ 25.37
Weighted average grant date fair value of vested (in dollars per share)   27.79    
Weighted average grant date fair value of forfeited (in dollars per share)   31.67    
Weighted average grant date fair value ending balance (in dollars per share)   $ 49.70 $ 25.25  
v3.22.0.1
INCOME TAXES (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Operating Loss Carryforwards [Line Items]        
Deferred tax asset $ 40,300   $ 40,300  
Net expense related to increase in unrecognized tax benefits   $ 21,300    
Net deferred tax asset 24,200   24,200  
Valuation allowance 226,655 26,467 226,655  
Net increase (decrease) in deferred tax asset valuation allowance   (200,200) 147,600  
Income tax penalties and interest   1,000 600 $ 400
Interest from settlements, lapse of statutes, and change in certainty released   100    
Cumulative accrued balance of penalties and interest 1,200 2,000 1,200 700
Unrecognized tax benefits that would impact effective tax rate 205,600 218,700 205,600 $ 4,000
U.S Federal Taxing Authority        
Operating Loss Carryforwards [Line Items]        
Aggregate tax loss carryforward 5,800   5,800  
U.S. State Tax        
Operating Loss Carryforwards [Line Items]        
Aggregate tax loss carryforward 3,600 2,400 3,600  
Foreign Taxing Authority        
Operating Loss Carryforwards [Line Items]        
Aggregate tax loss carryforward 58,400 61,500 58,400  
Valuation Allowance Related To Intra-entity Transfer, Asset Other Than Inventory        
Operating Loss Carryforwards [Line Items]        
Net expense related to increase in unrecognized tax benefits $ 16,100      
Valuation Allowance Related To Income Tax Benefit        
Operating Loss Carryforwards [Line Items]        
Net increase (decrease) in deferred tax asset valuation allowance   192,300    
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   7,900 (4,600)  
Valuation Allowance Related To Income Tax Expense        
Operating Loss Carryforwards [Line Items]        
Net increase (decrease) in deferred tax asset valuation allowance     $ (143,000)  
Valuation Allowance Not Related To Intra-entity Intellectual Property Rights Transfer        
Operating Loss Carryforwards [Line Items]        
Net increase (decrease) in deferred tax asset valuation allowance   $ (200,200)    
v3.22.0.1
INCOME TAXES (Components of Income Tax Expense) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income before taxes:      
U.S.  $ 510,706 $ 133,574 $ 58,822
Foreign 153,143 73,405 60,500
Income before income taxes 663,849 206,979 119,322
Current income taxes:      
U.S. federal 94,548 698 1,284
U.S. state 28,460 6,577 1,427
Foreign 56,430 211,904 13,373
Total current income taxes 179,438 219,179 16,084
Deferred income taxes:      
U.S. federal 791 529 (10,249)
U.S. state 32 (2,381) (3,579)
Foreign (242,106) (323,209) (2,431)
Total deferred income taxes (241,283) (325,061) (16,259)
Total income tax benefit $ (61,845) $ (105,882) $ (175)
v3.22.0.1
INCOME TAXES (Effective Income Tax Reconciliation) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income tax expense and rate attributable to:        
Federal income tax rate   $ 139,408 $ 43,466 $ 25,058
State income tax rate, net of federal benefit   22,952 7,231 5,983
Foreign income tax rate differential   18,890 (6,060) 1,994
GILTI, net   14,157 7,515 7,585
Non-deductible / non-taxable items   9,637 6,871 6,727
Change in valuation allowance $ (176,900) (192,337) 143,012 (33,691)
Foreign tax credits   (19,925) (15,904) (12,541)
Research and development credits   (13,104) (148) (189)
Uncertain tax positions   21,341 200,571 278
Share-based compensation   (11,930) (1,303) (2,715)
Intra-Entity IP Transfer   (41,858) (492,470) 0
Enacted changes in tax law   (9,554) 0 634
Other   478 1,337 702
Total income tax benefit   $ (61,845) $ (105,882) $ (175)
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   3.50% 3.50% 5.00%
Foreign income tax rate differential   2.80% (2.90%) 1.70%
GILTI, net   2.10% 3.60% 6.40%
Non-deductible / non-taxable items   1.50% 3.30% 5.70%
Change in valuation allowance   (29.00%) 69.00% (28.20%)
Foreign tax credits   (3.00%) (7.70%) (10.40%)
Research and development credits   (2.00%) (0.10%) (0.20%)
Uncertain tax positions   3.20% 96.90% 0.20%
Share-based compensation   (1.80%) (0.60%) (2.30%)
Intra-Entity IP Transfer   (6.30%) (237.90%) 0.00%
Enacted changes in tax law   (1.40%) 0.00% 0.50%
Other   0.10% 0.70% 0.50%
Effective income tax expense and rate   (9.30%) (51.20%) (0.10%)
v3.22.0.1
INCOME TAXES (Deferred Income Tax Assets and Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Non-current deferred tax assets:    
Share-based compensation expense $ 2,706 $ 1,934
Accruals, reserves, and other expenses 24,346 16,905
Net operating loss 24,573 26,842
Intangible assets 502,100 493,701
Foreign tax credit 39,442 38,948
Operating lease liabilities 35,755 41,391
Other 5,811 5,601
Valuation allowance (26,467) (226,655)
Total non-current deferred tax assets 608,266 398,667
Non-current deferred tax liabilities:    
Unrealized gain on foreign currency 0 (506)
Property and equipment (12,189) (13,583)
Right-of-use assets (28,598) (33,769)
Other (278) (25)
Total non-current deferred tax liabilities $ (41,065) $ (47,883)
v3.22.0.1
INCOME TAXES (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Unrecognized tax benefit as of January 1 $ 206,209 $ 4,613 $ 4,511
Additions in tax positions taken in prior period 6,169 519 631
Reductions in tax positions taken in prior period (963) (340) (1,532)
Additions in tax positions taken in current period 23,061 200,947 1,786
Settlements (763) (294) (391)
Lapse of statute of limitations (342) (258) (368)
Cumulative foreign currency translation adjustment   1,022  
Cumulative foreign currency translation adjustment (14,972)   (24)
Unrecognized tax benefit as of December 31 $ 218,399 $ 206,209 $ 4,613
v3.22.0.1
EARNINGS PER SHARE (Summary Of Basic And Diluted Earnings Per Share) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Earnings Per Share [Abstract]                      
Net income attributable to common stockholders                 $ 725,694 $ 312,861 $ 119,497
Weighted average common shares outstanding - basic (shares)                 62,464,000 67,386,000 70,357,000
Plus: dilutive effect of stock options and unvested restricted stock units (shares)                 1,254,000 1,158,000 1,414,000
Weighted average common shares outstanding - diluted (shares)                 63,718,000 68,544,000 71,771,000
Basic (in dollars per share) $ 2.63 $ 2.47 $ 5.02 $ 1.50 $ 2.75 $ 0.92 $ 0.84 $ 0.16 $ 11.62 $ 4.64 $ 1.70
Diluted (in dollars per share) $ 2.57 $ 2.42 $ 4.93 $ 1.47 $ 2.69 $ 0.91 $ 0.83 $ 0.16 $ 11.39 $ 4.56 $ 1.66
Outstanding shares issued under share-based compensation awards excluded from computation of diluted EPS (less than) (shares)                 100,000 0 0
v3.22.0.1
COMMITMENTS AND CONTINGENCIES (Purchase Commitments) (Details) - USD ($)
$ in Millions
Dec. 22, 2021
Dec. 31, 2021
Dec. 31, 2020
HEYDUDE      
Purchase Commitment, Excluding Long-term Commitment [Line Items]      
Cash consideration $ 2,050.0    
Shares issued (in shares) 2,852,280    
Purchase commitment      
Purchase Commitment, Excluding Long-term Commitment [Line Items]      
Purchase commitments with third party manufacturers   $ 274.9 $ 220.8
v3.22.0.1
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION (Narrative) (Details)
 12 Months Ended
Dec. 31, 2021
segment
Segment Reporting [Abstract]  
Number of operating segments 3
Property, Plant and Equipment | Geographic Concentration Risk | Netherlands  
Segment Reporting Information [Line Items]  
Percentage of consolidated revenues (percent) 20.00%
v3.22.0.1
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION (Information Related To Reportable Operating Business Segments) (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]                      
Total consolidated revenues $ 586,626 $ 625,919 $ 640,773 $ 460,098 $ 411,506 $ 361,736 $ 331,549 $ 281,160 $ 2,313,416 $ 1,385,951 $ 1,230,593
Income from operations 159,988 $ 203,068 $ 195,322 $ 124,686 64,631 $ 72,086 $ 56,595 $ 20,812 683,064 214,124 128,649
Foreign currency gains (losses), net                 (140) (1,128) (1,323)
Interest income                 775 215 601
Interest expense                 (21,647) (6,742) (8,636)
Other income, net                 1,797 510 31
Income before income taxes                 663,849 206,979 119,322
Total consolidated depreciation and amortization                 31,976 27,619 24,213
Total property and equipment, net 108,398       57,467       108,398 57,467  
Americas                      
Segment Reporting Information [Line Items]                      
Total consolidated revenues                 1,607,012 863,613 640,515
Asia Pacific                      
Segment Reporting Information [Line Items]                      
Total consolidated revenues                 350,160 278,515 348,072
EMEA                      
Segment Reporting Information [Line Items]                      
Total consolidated revenues                 356,157 243,660 241,948
Other businesses                      
Segment Reporting Information [Line Items]                      
Total consolidated revenues                 87 163 58
United States                      
Segment Reporting Information [Line Items]                      
Total consolidated revenues                 1,507,482 802,952 563,473
Total property and equipment, net 80,613       49,527       80,613 49,527  
International                      
Segment Reporting Information [Line Items]                      
Total consolidated revenues                 805,934 582,999 667,120
Total property and equipment, net $ 27,785       $ 7,940       27,785 7,940  
Reportable Operating Segments                      
Segment Reporting Information [Line Items]                      
Total consolidated revenues                 2,313,329 1,385,788 1,230,535
Income from operations                 961,785 422,256 304,694
Total consolidated depreciation and amortization                 11,104 5,396 5,349
Reportable Operating Segments | Americas                      
Segment Reporting Information [Line Items]                      
Total consolidated revenues                 1,607,012 863,613 640,515
Income from operations                 778,310 323,512 179,199
Total consolidated depreciation and amortization                 7,747 3,528 3,593
Reportable Operating Segments | Asia Pacific                      
Segment Reporting Information [Line Items]                      
Total consolidated revenues                 350,160 278,515 348,072
Income from operations                 71,936 32,830 60,724
Total consolidated depreciation and amortization                 1,629 1,138 963
Reportable Operating Segments | EMEA                      
Segment Reporting Information [Line Items]                      
Total consolidated revenues                 356,157 243,660 241,948
Income from operations                 111,539 65,914 64,771
Total consolidated depreciation and amortization                 1,728 730 793
Reportable Operating Segments | Other businesses                      
Segment Reporting Information [Line Items]                      
Total consolidated revenues                 87 163 58
Unallocated corporate and other                      
Segment Reporting Information [Line Items]                      
Income from operations                 (278,721) (208,132) (176,045)
Total consolidated depreciation and amortization                 $ 20,872 $ 22,223 $ 18,864
v3.22.0.1
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION - Impact of Segment Composition Change (Details) - Other Businesses Expense - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]    
Other Operating Income (Expense), Net $ (29,387) $ (21,860)
Operating Segments | Americas    
Segment Reporting Information [Line Items]    
Other Operating Income (Expense), Net (29,285) (12,123)
Operating Segments | Asia Pacific    
Segment Reporting Information [Line Items]    
Other Operating Income (Expense), Net (4,512) (6,497)
Operating Segments | EMEA    
Segment Reporting Information [Line Items]    
Other Operating Income (Expense), Net 4,410 (3,240)
Unallocated corporate and other    
Segment Reporting Information [Line Items]    
Other Operating Income (Expense), Net $ 29,387 $ 21,860
v3.22.0.1
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION - Impact of Marketing Expense Allocations (Details) - Marketing Expense - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]    
Other Operating Income (Expense), Net $ (21,043) $ (29,285)
Operating Segments | Americas    
Segment Reporting Information [Line Items]    
Other Operating Income (Expense), Net (9,133) (13,546)
Operating Segments | Asia Pacific    
Segment Reporting Information [Line Items]    
Other Operating Income (Expense), Net (10,100) (13,424)
Operating Segments | EMEA    
Segment Reporting Information [Line Items]    
Other Operating Income (Expense), Net (1,810) (2,315)
Unallocated corporate and other    
Segment Reporting Information [Line Items]    
Other Operating Income (Expense), Net $ 21,043 $ 29,285
v3.22.0.1
LEGAL PROCEEDINGS (Details)
R$ in Millions, $ in Millions
 12 Months Ended
Mar. 22, 2018
Feb. 25, 2015
BRL (R$)
Feb. 25, 2015
USD ($)
Jan. 13, 2015
BRL (R$)
Jan. 13, 2015
USD ($)
Dec. 31, 2021
USD ($)
Loss Contingency [Abstract]            
Assessments sought again entity | R$   R$ 33.3   R$ 14.4    
Brazilian Federal Tax Authorities            
Loss Contingency [Abstract]            
Reduction in principal, penalties and interest 38.00%          
Pending Litigation | Brazilian Federal Tax Authorities            
Loss Contingency [Abstract]            
Assessments sought again entity | $     $ 6.0   $ 2.6 $ 4.5
v3.22.0.1
LEGAL PROCEEDINGS (Accrued Estimated Losses) (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Accrued estimated losses $ 1.5
v3.22.0.1
EMPLOYEE BENEFIT PLAN (Narrative) (Details) - Defined Contribution Plan - Defined Contribution Benefit Plan - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Defined Contribution Plan Disclosure [Line Items]      
Employees' vesting percentage in matching contributions (percent) 100.00%    
Contributions made by the Company under the Plan $ 7.4 $ 4.7 $ 5.1
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%    
v3.22.0.1
UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (Details) - USD ($)
$ / shares in Units, $ in Thousands, shares in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]                      
Revenues $ 586,626 $ 625,919 $ 640,773 $ 460,098 $ 411,506 $ 361,736 $ 331,549 $ 281,160 $ 2,313,416 $ 1,385,951 $ 1,230,593
Gross profit 372,024 399,796 395,181 253,219 229,084 206,769 179,933 134,162 1,420,220 749,948 617,056
Income from operations 159,988 203,068 195,322 124,686 64,631 72,086 56,595 20,812 683,064 214,124 128,649
Net income $ 154,853 $ 153,489 $ 318,954 $ 98,398 $ 183,330 $ 61,889 $ 56,551 $ 11,091 $ 725,694 $ 312,861 $ 119,497
Basic income per common shares (in dollars per share) $ 2.63 $ 2.47 $ 5.02 $ 1.50 $ 2.75 $ 0.92 $ 0.84 $ 0.16 $ 11.62 $ 4.64 $ 1.70
Diluted income per common share (in dollars per share) $ 2.57 $ 2.42 $ 4.93 $ 1.47 $ 2.69 $ 0.91 $ 0.83 $ 0.16 $ 11.39 $ 4.56 $ 1.66
Property, plant and equipment [Line Items]                      
Benefit for valuation allowance     $ 176,900           $ 192,337 $ (143,012) $ 33,691
Income benefit, intra-entity transfer of certain intellectual property rights         $ 127,700            
Asset impairments                 $ 0 $ 21,071 $ 0
Stock repurchased during period (shares)         1.7            
Stock repurchased during period         $ 131,700            
Accelerated share repurchase program         125,000            
Corporate Headquarters Relocation                      
Property, plant and equipment [Line Items]                      
Right-of-use assets impairment         1,100            
Retail location in New York City                      
Property, plant and equipment [Line Items]                      
Asset impairments         $ 20,000            
v3.22.0.1
Schedule II - SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 21,093 $ 18,797 $ 20,477
Charged to Costs and Expenses 153,571 106,439 81,430
Deductions (153,949) (104,143) (83,110)
Balance at End of Period 20,715 21,093 18,797
Allowance for doubtful accounts      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 11,154 8,276 10,959
Charged to Costs and Expenses 0 5,779 1,566
Deductions (3,326) (2,901) (4,249)
Balance at End of Period 7,828 11,154 8,276
Reserve for sales returns and allowances      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 5,782 5,261 2,741
Charged to Costs and Expenses 148,893 95,740 73,027
Deductions (145,069) (95,219) (70,507)
Balance at End of Period 9,606 5,782 5,261
Reserve for unapplied rebates      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 4,157 5,260 6,777
Charged to Costs and Expenses 4,678 4,920 6,837
Deductions (5,554) (6,023) (8,354)
Balance at End of Period $ 3,281 $ 4,157 $ 5,260
v3.22.0.1
Label Element Value
Accounting Standards Update [Extensible Enumeration] us-gaap_AccountingStandardsUpdateExtensibleList Accounting Standards Update 2016-02 [Member]