Condensed Consolidating Financial Information (Tables)

9 Months Ended

Jul. 31, 2012

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Statement of Operations

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	117		$	258,595	$	285,858		$	(32,131	)	$	512,439
Cost of goods sold		—			152,405		130,167			(23,621	)		258,951
Gross profit		117			106,190		155,691			(8,510	)		253,488
Selling, general and administrative expense		13,533			81,506		137,695			(6,946	)		225,788
Asset impairments		—			141		—			—			141
Operating (loss) income		(13,416	)		24,543		17,996			(1,564	)		27,559
Interest expense		7,253			1,245		6,336			—			14,834
Foreign currency (gain) loss		(185	)		22		(2,079	)		—			(2,242	)
Equity in earnings		(33,094	)		—		—			33,094			—
Income before provision for income taxes		12,610			23,276		13,739			(34,658	)		14,967
Provision for income taxes		—			513		1,995			—			2,508
Net income		12,610			22,763		11,744			(34,658	)		12,459
Net loss (income) attributable to non-controlling interest		—			234		(83	)		—			151
Net income attributable to Quiksilver, Inc.	$	12,610		$	22,997	$	11,661		$	(34,658	)	$	12,610

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	216,614		$	302,377		$	(15,790	)	$	503,317
Cost of goods sold		—			122,044			133,825			(7,670	)		248,199
Gross profit		116			94,570			168,552			(8,120	)		255,118
Selling, general and administrative expense		11,366			75,528			140,199			(5,921	)		221,172
Operating (loss) income		(11,250	)		19,042			28,353			(2,199	)		33,946
Interest expense		7,225			1,197			7,241			—			15,663
Foreign currency gain		(23	)		(646	)		(787	)		—			(1,456	)
Equity in earnings		(28,889	)		—			—			28,889			—
Income before provision for income taxes		10,437			18,491			21,899			(31,088	)		19,739
Provision for income taxes		—			1,223			7,773			—			8,996
Net income		10,437			17,268			14,126			(31,088	)		10,743
Net income attributable to non-controlling interest		—			(306	)		—			—			(306	)
Net income attributable to Quiksilver, Inc.	$	10,437		$	16,962		$	14,126		$	(31,088	)	$	10,437

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	353		$	615,658		$	919,474		$	(81,212	)	$	1,454,273
Cost of goods sold		—			366,655			422,012			(57,981	)		730,686
Gross profit		353			249,003			497,462			(23,231	)		723,587
Selling, general and administrative expense		43,318			233,937			425,162			(22,204	)		680,213
Asset impairments		—			556			—			—			556
Operating (loss) income		(42,965	)		14,510			72,300			(1,027	)		42,818
Interest expense		21,732			3,930			19,802			—			45,464
Foreign currency (gain) loss		(298	)		31			(4,434	)		—			(4,701	)
Equity in earnings		(49,284	)		—			—			49,284			—
(Loss) income before provision for income taxes		(15,115	)		10,549			56,932			(50,311	)		2,055
Provision for income taxes		—			945			13,968			—			14,913
Net (loss) income		(15,115	)		9,604			42,964			(50,311	)		(12,858	)
Net income attributable to non-controlling interest		—			(1,886	)		(371	)		—			(2,257	)
Net (loss) income attributable to Quiksilver, Inc.	$	(15,115	)	$	7,718		$	42,593		$	(50,311	)	$	(15,115	)

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	348		$	532,662		$	910,923		$	(36,073	)	$	1,407,860
Cost of goods sold		—			289,527			392,799			(15,223	)		667,103
Gross profit		348			243,135			518,124			(20,850	)		740,757
Selling, general and administrative expense		29,960			220,425			416,353			(18,382	)		648,356
Asset impairments		—			465			74,145			—			74,610
Operating (loss) income		(29,612	)		22,245			27,626			(2,468	)		17,791
Interest expense		21,646			2,970			35,111			—			59,727
Foreign currency loss (gain)		34			(245	)		(5,675	)		—			(5,886	)
Equity in earnings		37,864			—			—			(37,864	)		—
(Loss) income before (benefit) provision for income taxes		(89,156	)		19,520			(1,810	)		35,396			(36,050	)
(Benefit) provision for income taxes		—			(616	)		50,553			—			49,937
Net (loss) income		(89,156	)		20,136			(52,363	)		35,396			(85,987	)
Net income attributable to non-controlling interest		—			(3,169	)		—			—			(3,169	)
Net (loss) income attributable to Quiksilver, Inc.	$	(89,156	)	$	16,967		$	(52,363	)	$	35,396		$	(89,156	)

Condensed Consolidating Balance Sheet

In thousands	Quiksilver, Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	15	$	2,421		$	79,467		$	—		$	81,903
Trade accounts receivable, net		—		172,969			225,553			—			398,522
Other receivables		25		5,053			26,366			—			31,444
Inventories		—		118,236			274,380			(1,564	)		391,052
Deferred income taxes		—		(1,182	)		15,873			—			14,691
Prepaid expenses and other current assets		2,373		12,237			18,068			—			32,678
Total current assets		2,413		309,734			639,707			(1,564	)		950,290
Fixed assets, net		18,384		69,887			145,571			—			233,842
Intangible assets, net		3,134		48,025			85,586			—			136,745
Goodwill		—		112,216			146,599			—			258,815
Other assets		3,175		3,177			41,915			—			48,267
Deferred income taxes		—		(16,682	)		115,807			—			99,125
Investment in subsidiaries		1,083,565		—			—			(1,083,565	)		—
Total assets	$	1,110,671	$	526,357		$	1,175,185		$	(1,085,129	)	$	1,727,084
LIABILITIES AND EQUITY
Current liabilities:
Lines of credit	$	—	$	—		$	15,032		$	—		$	15,032
Accounts payable		2,192		98,037			133,294			—			233,523
Accrued liabilities		13,033		29,118			68,989			—			111,140
Current portion of long-term debt		—		8,594			36,046			—			44,640
Income taxes payable		—		(7,199	)		10,851			—			3,652
Intercompany balances		142,117		(82,808	)		(59,309	)		—			—
Total current liabilities		157,342		45,742			204,903			—			407,987
Long-term debt, net of current portion		400,000		75,700			248,072			—			723,772
Other long-term liabilities		—		20,515			11,734			—			32,249
Total liabilities		557,342		141,957			464,709			—			1,164,008
Stockholders’/invested equity		553,329		376,788			708,341			(1,085,129	)		553,329
Non-controlling interest		—		7,612			2,135			—			9,747
Total liabilities and equity	$	1,110,671	$	526,357		$	1,175,185		$	(1,085,129	)	$	1,727,084

In thousands	Quiksilver, Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	17	$	1,331		$	108,405		$	—		$	109,753
Trade accounts receivable, net		—		150,782			246,307			—			397,089
Other receivables		122		5,918			17,150			—			23,190
Income taxes receivable		—		21,338			(17,073	)		—			4,265
Inventories		—		115,456			234,266			(1,965	)		347,757
Deferred income taxes		—		(1,182	)		33,990			—			32,808
Prepaid expenses and other current assets		2,378		8,525			14,526			—			25,429
Total current assets		2,517		302,168			637,571			(1,965	)		940,291
Fixed assets, net		17,602		64,943			155,562			—			238,107
Intangible assets, net		3,007		48,743			86,393			—			138,143
Goodwill		—		112,216			156,373			—			268,589
Other assets		4,457		3,936			47,421			—			55,814
Deferred income taxes		—		(16,682	)		139,961			—			123,279
Investment in subsidiaries		1,082,427		—			—			(1,082,427	)		—
Total assets	$	1,110,010	$	515,324		$	1,223,281		$	(1,084,392	)	$	1,764,223
LIABILITIES AND EQUITY
Current liabilities:
Lines of credit	$	—	$	—		$	18,335		$	—		$	18,335
Accounts payable		2,510		88,280			112,233			—			203,023
Accrued liabilities		6,673		30,088			96,183			—			132,944
Current portion of long-term debt		—		3,000			1,628			—			4,628
Intercompany balances		90,729		(44,001	)		(46,728	)		—			—
Total current liabilities		99,912		77,367			181,651			—			358,930
Long-term debt, net of current portion		400,000		36,542			288,181			—			724,723
Other long-term liabilities		—		41,219			16,729			—			57,948
Total liabilities		499,912		155,128			486,561			—			1,141,601
Stockholders’/invested equity		610,098		347,995			736,397			(1,084,392	)		610,098
Non-controlling interest		—		12,201			323			—			12,524
Total liabilities and equity	$	1,110,010	$	515,324		$	1,223,281		$	(1,084,392	)	$	1,764,223

Condensed consolidated statements of cash flows.

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	(15,115	)	$	9,604		$	42,964		$	(50,311	)	$	(12,858	)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization		1,598			13,338			24,501			—			39,437
Stock-based compensation		17,272			—			—			—			17,272
Provision for doubtful accounts		—			(2,530	)		4,131			—			1,601
Asset impairments		—			556			—			—			556
Equity in earnings		(49,284	)		—			(19	)		49,284			(19	)
Non-cash interest expense		1,111			1,190			513			—			2,814
Deferred income taxes		—			—			9,349			—			9,349
Other adjustments to reconcile net (loss) income		(322	)		36			(2,008	)		—			(2,294	)
Changes in operating assets and liabilities:
Trade accounts receivable		—			(19,657	)		(6,048	)		—			(25,705	)
Inventories		—			(3,095	)		(53,616	)		1,027			(55,684	)
Other operating assets and liabilities		4,623			416			3,611			—			8,650
Net cash (used in) provided by operating activities		(40,117	)		(142	)		23,378			—			(16,881	)
Cash flows from investing activities:
Capital expenditures		(2,861	)		(18,736	)		(25,580	)		—			(47,177	)
Business acquisitions, net of cash acquired		—			—			(9,117	)		—			(9,117	)
Net cash used in investing activities		(2,861	)		(18,736	)		(34,697	)		—			(56,294	)
Cash flows from financing activities:
Borrowings on lines of credit		—			—			11,377			—			11,377
Payments on lines of credit		—			—			(12,326	)		—			(12,326	)
Borrowings on long-term debt		—			80,500			46,534			—			127,034
Payments on long-term debt		—			(43,856	)		(13,657	)		—			(57,513	)
Stock option exercises and employee stock purchases		1,335			—			—			—			1,335
Transactions with non-controlling interest owners		—			(11,000	)		—			—			(11,000	)
Intercompany		41,641			(5,676	)		(35,965	)		—			—
Net cash provided by (used in) financing activities		42,976			19,968			(4,037	)		—			58,907
Effect of exchange rate changes on cash		—			—			(13,582	)		—			(13,582	)
Net (decrease) increase in cash and cash equivalents		(2	)		1,090			(28,938	)		—			(27,850	)
Cash and cash equivalents, beginning of period		17			1,331			108,405			—			109,753
Cash and cash equivalents, end of period	$	15		$	2,421		$	79,467		$	—		$	81,903

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss) income	$	(89,156	)	$	20,136		$	(52,363	)	$	35,396		$	(85,987	)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization		1,190			14,945			24,019			—			40,154
Stock-based compensation		9,916			—			—			—			9,916
Provision for doubtful accounts		—			2,699			5,913			—			8,612
Asset impairments		—			465			74,145			—			74,610
Equity in earnings		37,864			(158	)		(472	)		(37,864	)		(630	)
Non-cash interest expense		1,034			1,291			15,742			—			18,067
Deferred income taxes		—			1,586			44,329			—			45,915
Other adjustments to reconcile net (loss) income		33			484			(3,081	)		—			(2,564	)
Changes in operating assets and liabilities:
Trade accounts receivable		—			(21,912	)		2,827			—			(19,085	)
Inventories		—			(21,504	)		(64,303	)		2,468			(83,339	)
Other operating assets and liabilities		5,277			3,200			33,027			—			41,504
Net cash (used in) provided by operating activities		(33,842	)		1,232			79,783			—			47,173
Cash flows from investing activities:
Capital expenditures		(9,195	)		(22,177	)		(15,316	)		—			(46,688	)
Business acquisitions, net of cash acquired		—			(528	)		(5,050	)		—			(5,578	)
Net cash used in investing activities		(9,195	)		(22,705	)		(20,366	)		—			(52,266	)
Cash flows from financing activities:
Borrowings on lines of credit		—			—			14,807			—			14,807
Payments on lines of credit		—			—			(29,172	)		—			(29,172	)
Borrowings on long-term debt		—			21,500			270,967			—			292,467
Payments on long-term debt		—			(1,675	)		(259,143	)		—			(260,818	)
Payments of debt issuance costs		—			—			(6,308	)		—			(6,308	)
Stock option exercises and employee stock purchases		4,116			—			—			—			4,116
Intercompany		39,034			(37,124	)		(1,910	)		—			—
Net cash provided by (used in) financing activities		43,150			(17,299	)		(10,759	)		—			15,092
Effect of exchange rate changes on cash		—			—			(4,382	)		—			(4,382	)
Net increase (decrease) in cash and cash equivalents		113			(38,772	)		44,276			—			5,617
Cash and cash equivalents, beginning of period		164			39,172			81,257			—			120,593
Cash and cash equivalents, end of period	$	277		$	400		$	125,533		$	—		$	126,210