v3.24.3
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION
We have two reportable operating segments: the Crocs Brand and the HEYDUDE Brand. Each of the reportable operating segments derives its revenues from the sale of footwear and accessories to external customers.

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

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

We do not report asset information by segment because that information is not used to evaluate performance or allocate resources between segments.

The following tables set forth information related to reportable operating segments:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(in thousands)
Revenues:
Crocs Brand (1)
$858,098 $798,769 $2,515,903 $2,280,497 
HEYDUDE Brand204,102 246,948 596,432 721,753 
Total consolidated revenues$1,062,200 $1,045,717 $3,112,335 $3,002,250 
Income from operations:
Crocs Brand (1)(2)
$313,264 $297,456 $932,921 $833,145 
HEYDUDE Brand (2)
26,191 31,776 108,704 173,905 
Total segment income from operations
$339,455 $329,232 $1,041,625 $1,007,050 
Reconciliation of total segment income from operations to income before income taxes:
  
Enterprise corporate (2)
(69,626)(55,380)(219,629)(179,781)
Income from operations
269,829 273,852 821,996 827,269 
Foreign currency losses, net(332)(1,770)(3,928)(1,622)
Interest income1,366 506 2,908 1,225 
Interest expense(26,203)(39,207)(85,927)(124,907)
Other income, net237 24 302 448 
Income before income taxes$244,897 $233,405 $735,351 $702,413 
Depreciation and amortization:
Crocs Brand (1)
$9,066 $8,692 $26,463 $23,228 
HEYDUDE Brand5,032 3,919 13,790 10,987 
Enterprise corporate 4,087 2,140 11,637 6,316 
Total consolidated depreciation and amortization
$18,185 $14,751 $51,890 $40,531 
(1) Our business has continued to evolve in the period following the consummation of the HEYDUDE acquisition, as we have grown the brand and staffed and developed our leadership team at HEYDUDE. In the fourth quarter of 2023, to reflect changes in the way management evaluates performance, makes operating decisions, and allocates resources, we updated our reportable operating segments to be (i) Crocs Brand and (ii) HEYDUDE Brand. Our ‘North America,’ ‘Asia Pacific,’ and ‘EMEALA’ segments as well as revenues and expenses related to Crocs ‘Brand corporate’ have been consolidated to the ‘Crocs Brand.’ As a result of these changes, the previously reported amounts for revenues, income from operations, and depreciation and amortization for the three and nine months ended September 30, 2023 have been recast to conform to current period presentation.
(2) In the first quarter of 2024, to reflect a change in the way management evaluates segment performance, makes operating decisions, and allocates resources, we made changes to segment profitability related to certain foreign currency amounts impacting cost of sales. These amounts have shifted costs or benefits that were previously presented in each of our reportable segments to ‘Enterprise corporate.’ We believe that the impact of these changes on prior periods is insignificant to each segment and thus have not recast prior periods.