Condensed Consolidating Financial Information (Tables)

6 Months Ended

12 Months Ended

Apr. 30, 2013

Oct. 31, 2012

Quiksilver, Inc. [Member]

Condensed Consolidated Statement of Operations

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Second Quarter Ended April 30, 2013

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	190,265		$	290,111		$	(21,744	)	$	458,748
Cost of goods sold		—			117,488			144,071			(13,947	)		247,612
Gross profit		116			72,777			146,040			(7,797	)		211,136
Selling, general and administrative expense		11,753			72,999			141,282			(7,830	)		218,204
Asset impairments		—			4,988			344			—			5,332
Operating (loss)/income		(11,637	)		(5,210	)		4,414			33			(12,400	)
Interest expense		7,269			1,386			6,634			—			15,289
Foreign currency (gain)/loss		(28	)		198			(2,788	)		—			(2,618	)
Equity in earnings and other income		13,517			(483	)		—			(13,034	)		—
(Loss)/income before provision for income taxes		(32,395	)		(6,311	)		568			13,067			(25,071	)
Provision for income taxes		—			1,654			5,493			—			7,147
Net loss		(32,395	)		(7,965	)		(4,925	)		13,067			(32,218	)
Less: net income attributable to non-controlling interest		—			—			(177	)		—			(177	)
Net loss attributable to Quiksilver, Inc.		(32,395	)		(7,965	)		(5,102	)		13,067			(32,395	)
Other comprehensive loss		(16,723	)		—			(16,723	)		16,723			(16,723	)
Comprehensive loss attributable to Quiksilver, Inc.	$	(49,118	)	$	(7,965	)	$	(21,825	)	$	29,790		$	(49,118	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Second Quarter Ended April 30, 2012

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	120		$	185,686		$	328,589		$	(22,182	)	$	492,213
Cost of goods sold		—			109,044			155,662			(14,642	)		250,064
Gross profit		120			76,642			172,927			(7,540	)		242,149
Selling, general and administrative expense		12,869			74,934			144,422			(8,215	)		224,010
Asset impairments		—			415			—			—			415
Operating (loss)/income		(12,749	)		1,293			28,505			675			17,724
Interest expense		7,239			1,391			6,955			—			15,585
Foreign currency loss/(gain)		13			212			(834	)		—			(609	)
Equity in earnings and other income		(14,881	)		482			—			14,399			—
(Loss)/income before provision for income taxes		(5,120	)		(792	)		22,384			(13,724	)		2,748
Provision for income taxes		—			216			6,939			—			7,155
Net (loss)/income		(5,120	)		(1,008	)		15,445			(13,724	)		(4,407	)
Less: net income attributable to non-controlling interest		—			—			(713	)		—			(713	)
Net (loss)/income attributable to Quiksilver, Inc.		(5,120	)		(1,008	)		14,732			(13,724	)		(5,120	)
Other comprehensive loss		(1,271	)		—			(1,271	)		1,271			(1,271	)
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(6,391	)	$	(1,008	)	$	13,461		$	(12,453	)	$	(6,391	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

First Half Ended April 30, 2013

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	232		$	356,011		$	587,455		$	(53,932	)	$	889,766
Cost of goods sold		—			221,220			277,756			(40,053	)		458,923
Gross profit		232			134,791			309,699			(13,879	)		430,843
Selling, general and administrative expense		27,728			147,187			283,436			(14,888	)		443,463
Asset impairments		—			6,323			2,177			—			8,500
Operating (loss)/income		(27,496	)		(18,719	)		24,086			1,009			(21,120	)
Interest expense		14,538			2,854			13,404			—			30,796
Foreign currency loss		126			363			66			—			555
Equity in earnings and other income		21,364			(687	)		—			(20,677	)		—
(Loss)/income before provision for income taxes		(63,524	)		(21,249	)		10,616			21,686			(52,471	)
Provision for income taxes		—			467			9,904			—			10,371
Net (loss)/income		(63,524	)		(21,716	)		712			21,686			(62,842	)
Less: net income attributable to non-controlling interest		—			—			(682	)		—			(682	)
Net (loss)/income attributable to Quiksilver, Inc.		(63,524	)		(21,716	)		30			21,686			(63,524	)
Other comprehensive loss		(8,613	)		—			(8,613	)		8,613			(8,613	)
Comprehensive loss attributable to Quiksilver, Inc.	$	(72,137	)	$	(21,716	)	$	(8,583	)	$	30,299		$	(72,137	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

First Half Ended April 30, 2012

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	236		$	357,063		$	633,616		$	(49,081	)	$	941,834
Cost of goods sold		—			214,250			291,845			(34,360	)		471,735
Gross profit		236			142,813			341,771			(14,721	)		470,099
Selling, general and administrative expense		29,785			152,431			287,467			(15,258	)		454,425
Asset impairments		—			415			—			—			415
Operating (loss)/income		(29,549	)		(10,033	)		54,304			537			15,259
Interest expense		14,479			2,685			13,466			—			30,630
Foreign currency (gain)/loss		(113	)		9			(2,355	)		—			(2,459	)
Equity in earnings and other income		(16,190	)		1,733			—			14,457			—
(Loss)/income before provision for income taxes		(27,725	)		(14,460	)		43,193			(13,920	)		(12,912	)
Provision for income taxes		—			432			11,973			—			12,405
Net (loss)/income		(27,725	)		(14,892	)		31,220			(13,920	)		(25,317	)
Less: net income attributable to non-controlling interest		—			—			(2,408	)		—			(2,408	)
Net (loss)/income attributable to Quiksilver, Inc.		(27,725	)		(14,892	)		28,812			(13,920	)		(27,725	)
Other comprehensive loss		(21,031	)		—			(21,031	)		21,031			(21,031	)
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(48,756	)	$	(14,892	)	$	7,781		$	7,111		$	(48,756	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended October 31, 2012

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	469		$	854,754		$	1,262,757		$	(104,741	)	$	2,013,239
Cost of goods sold		—			505,420			602,115			(74,642	)		1,032,893
Gross profit		469			349,334			660,642			(30,099	)		980,346
Selling, general and administrative expense		56,983			311,886			577,868			(30,593	)		916,144
Asset impairments		—			5,162			2,072			—			7,234
Operating (loss)/income		(56,514	)		32,286			80,702			494			56,968
Interest expense		28,987			5,351			26,485			—			60,823
Foreign currency gain		(173	)		(35	)		(1,461	)		—			(1,669	)
Equity in earnings		(74,572	)		4,674			—			69,898			—
(Loss)/income before provision for income taxes		(10,756	)		22,296			55,678			(69,404	)		(2,186	)
Provision for income taxes		—			1,144			6,413			—			7,557
Net (loss)/income		(10,756	)		21,152			49,265			(69,404	)		(9,743	)
Less: net income attributable to non-controlling interest		—			—			(1,013	)		—			(1,013	)
Net (loss)/income attributable to Quiksilver, Inc.		(10,756	)		21,152			48,252			(69,404	)		(10,756	)
Other Comprehensive Loss	(29,715)			—			(29,715)			29,715			(29,715)
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$(40,471)			$21,152			$18,537			$(39,689)			$(40,471)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended October 31, 2011

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	464		$	736,110		$	1,270,320		$	(53,833	)	$	1,953,061
Cost of goods sold		—			399,493			554,593			(24,859	)		929,227
Gross profit		464			336,617			715,727			(28,974	)		1,023,834
Selling, general and administrative expense		43,045			311,840			566,703			(25,639	)		895,949
Asset impairments		—			3,399			82,974			—			86,373
Operating (loss)/income		(42,581	)		21,378			66,050			(3,335	)		41,512
Interest expense		28,871			3,785			41,152			—			73,808
Foreign currency loss/(gain)		30			(40	)		(101	)		—			(111	)
Equity in earnings		(50,224	)		(836	)		—			51,060			—
(Loss)/income before provision/(benefit) for income taxes		(21,258	)		18,469			24,999			(54,395	)		(32,185	)
Provision/(benefit) for income taxes		—			165			(14,480	)		—			(14,315	)
Net (loss)/income		(21,258	)		18,304			39,479			(54,395	)		(17,870	)
Less: net income attributable to non-controlling interest		—			—			(3,388	)		—			(3,388	)
Net (loss)/income attributable to Quiksilver, Inc.		(21,258	)		18,304			36,091			(54,395	)		(21,258	)
Other comprehensive income		2,445			—			2,445			(2,445	)		2,445
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(18,813	)	$	18,304		$	38,536		$	(56,840	)	$	(18,813	)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

Year Ended October 31, 2010

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	376		$	683,767		$	1,195,536		$	(42,059	)	$	1,837,620
Cost of goods sold		—			373,740			511,777			(15,145	)		870,372
Gross profit		376			310,027			683,759			(26,914	)		967,248
Selling, general and administrative expense		36,867			283,347			537,153			(25,301	)		832,066
Asset impairments		—			7,585			4,072			—			11,657
Operating (loss)/income		(36,491	)		19,095			142,534			(1,613	)		123,525
Interest expense, net		28,721			55,070			30,318			—			114,109
Foreign currency gain		(285	)		(124	)		(5,508	)		—			(5,917	)
Equity in earnings and other (income)/expense		(50,399	)		(1,482	)		—			51,881			—
(Loss)/income before (benefit)/provision for income taxes		(14,528	)		(34,369	)		117,724			(53,494	)		15,333
(Benefit)/provision for income taxes		(4,844	)		522			27,755			—			23,433
(Loss)/income from continuing operations		(9,684	)		(34,891	)		89,969			(53,494	)		(8,100	)
Income from discontinued operations		—			1,485			345			—			1,830
Net (loss)/income		(9,684	)		(33,406	)		90,314			(53,494	)		(6,270	)
Less: net income attributable to non-controlling interest		—			—			(3,414	)		—			(3,414	)
Net (loss)/income attributable to Quiksilver, Inc.		(9,684	)		(33,406	)		86,900			(53,494	)		(9,684	)
Other comprehensive income		18,286			—			18,286			(18,286	)		18,286
Comprehensive income/(loss) attributable to Quiksilver, Inc.	$	8,602		$	(33,406	)	$	105,186		$	(71,780	)	$	8,602

Condensed Consolidating Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEET

At April 30, 2013

In thousands	Quiksilver, Inc.		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	108	$	694	$	47,091	$	—		$	47,893
Trade accounts receivable, net		—		127,762		247,574		—			375,336
Other receivables		19		8,526		23,388		—			31,933
Income taxes receivable		—		—		4,917		(4,917	)		—
Inventories		—		131,136		234,160		1,008			366,304
Deferred income taxes, short-term		—		5,209		20,487		—			25,696
Prepaid expenses and other current assets		4,594		9,910		18,953		—			33,457
Intercompany balances		—		108,623		52,777		(161,400	)		—
Total current assets		4,721		391,860		649,347		(165,309	)		880,619
Fixed assets, net		19,454		57,774		155,727		—			232,955
Intangible assets, net		3,752		47,171		87,826		—			138,749
Goodwill		—		112,216		160,548		—			272,764
Other assets		1,902		1,982		39,875		—			43,759
Deferred income taxes, long-term		—		—		137,941		(23,550	)		114,391
Investment in subsidiaries		1,066,560		6,986		—		(1,073,546	)		—
Total assets	$	1,096,389	$	617,989	$	1,231,264	$	(1,262,405	)	$	1,683,237
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	2,756	$	85,025	$	97,789	$	—		$	185,570
Accrued liabilities		6,049		22,658		73,773		—			102,480
Long-term debt, current portion		—		6,094		38,740		—			44,834
Income taxes payable		—		5,368		—		(4,917	)		451
Intercompany balances		161,400		—		—		(161,400	)		—
Total current liabilities		170,205		119,145		210,302		(166,317	)		333,335
Long-term debt, net of current portion		400,000		76,000		293,108		—			769,108
Deferred income taxes, long-term		—		23,550		—		(23,550	)		—
Other long-term liabilities		—		23,987		10,971		—			34,958
Total liabilities		570,205		242,682		514,381		(189,867	)		1,137,401
Stockholders’/invested equity		526,184		375,307		697,231		(1,072,538	)		526,184
Non-controlling interest		—		—		19,652		—			19,652
Total liabilities and equity	$	1,096,389	$	617,989	$	1,231,264	$	(1,262,405	)	$	1,683,237

CONDENSED CONSOLIDATING BALANCE SHEET

At October 31, 2012

In thousands	Quiksilver, Inc.		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	324	$	135	$	41,364	$	—		$	41,823
Trade accounts receivable, net		—		181,945		251,798		—			433,743
Other receivables		20		6,158		26,640		—			32,818
Income taxes receivable		—		117		—		(117	)		—
Inventories		—		107,722		237,465		(441	)		344,746
Deferred income taxes		—		5,209		21,159		—			26,368
Prepaid expenses and other current assets		2,277		9,548		14,546		—			26,371
Intercompany balances		—		95,809		23,025		(118,834	)		—
Total current assets		2,621		406,643		615,997		(119,392	)		905,869
Fixed assets, net		18,802		64,496		155,015		—			238,313
Intangible assets, net		3,228		47,746		88,475		—			139,449
Goodwill		—		112,216		160,951		—			273,167
Other assets		2,753		2,677		42,359		—			47,789
Deferred income taxes long-term		—		—		137,203		(23,550	)		113,653
Investment in subsidiaries		1,087,924		5,028		—		(1,092,952	)		—
Total assets	$	1,115,328	$	638,806	$	1,200,000	$	(1,235,894	)	$	1,718,240
LIABILITIES AND EQUITY
Current liabilities:
Lines of credit	$	—	$	—	$	18,147	$	—		$	18,147
Accounts payable		6,995		95,355		101,222		—			203,572
Accrued liabilities		6,189		28,343		80,359		—			114,891
Current portion of long-term debt		—		8,594		10,053		—			18,647
Income taxes payable		—		—		1,476		(117	)		1,359
Intercompany balances		118,834		—		—		(118,834	)		—
Total current liabilities		132,018		132,292		211,257		(118,951	)		356,616
Long-term debt, net of current portion		400,000		60,700		260,475		—			721,175
Deferred income taxes long-term		—		23,550		—		(23,550	)		—
Other long-term liabilities		—		25,241		12,972		—			38,213
Total liabilities		532,018		241,783		484,704		(142,501	)		1,116,004
Stockholders’/invested equity		583,310		397,023		696,370		(1,093,393	)		583,310
Non-controlling interest		—		—		18,926		—			18,926
Total liabilities and equity	$	1,115,328	$	638,806	$	1,200,000	$	(1,235,894	)	$	1,718,240

CONDENSED CONSOLIDATING BALANCE SHEET

At October 31, 2012

In thousands	Quiksilver, Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	324	$	135		$	41,364		$	—		$	41,823
Trade accounts receivable, net		—		181,945			251,798			—			433,743
Other receivables		20		6,158			26,640			—			32,818
Inventories		—		107,722			237,465			(441	)		344,746
Deferred income taxes		—		5,209			21,159			—			26,368
Prepaid expenses and other current assets		2,277		9,548			14,546			—			26,371
Total current assets		2,621		310,717			592,972			(441	)		905,869
Fixed assets, net		18,802		64,496			155,015			—			238,313
Intangible assets, net		3,228		47,746			88,475			—			139,449
Goodwill		—		112,216			160,951			—			273,167
Other assets		2,753		2,677			42,359			—			47,789
Deferred income taxes long-term		—		(23,550	)		137,203			—			113,653
Investment in subsidiaries		1,087,924		5,028			—			(1,092,952	)		—
Total assets	$	1,115,328	$	519,330		$	1,176,975		$	(1,093,393	)	$	1,718,240
LIABILITIES AND EQUITY
Current liabilities:
Lines of credit	$	—	$	—		$	18,147		$	—		$	18,147
Accounts payable		6,995		95,355			101,222			—			203,572
Accrued liabilities		6,189		28,343			80,359			—			114,891
Current portion of long-term debt		—		8,594			10,053			—			18,647
Income taxes payable		—		(117	)		1,476			—			1,359
Intercompany balances		118,834		(95,809	)		(23,025	)		—			—
Total current liabilities		132,018		36,366			188,232			—			356,616
Long-term debt, net of current portion		400,000		60,700			260,475			—			721,175
Other long-term liabilities		—		25,241			12,972			—			38,213
Total liabilities		532,018		122,307			461,679			—			1,116,004
Stockholders’/invested equity		583,310		397,023			696,370			(1,093,393	)		583,310
Non-controlling interest		—		—			18,926			—			18,926
Total liabilities and equity	$	1,115,328	$	519,330		$	1,176,975		$	(1,093,393	)	$	1,718,240

CONDENSED CONSOLIDATING BALANCE SHEET

At October 31, 2011

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 long-term		—		(16,682	)		139,961			—			123,279
Investment in subsidiaries		1,084,745		8,929			—			(1,093,674	)		—
Total assets	$	1,112,328	$	524,253		$	1,223,281		$	(1,095,639	)	$	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		93,047		(34,611	)		(58,436	)		—			—
Total current liabilities		102,230		86,757			169,943			—			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		502,230		164,518			474,853			—			1,141,601
Stockholders’/invested equity		610,098		359,735			735,904			(1,095,639	)		610,098
Non-controlling interest		—		—			12,524			—			12,524
Total liabilities and equity	$	1,112,328	$	524,253		$	1,223,281		$	(1,095,639	)	$	1,764,223

Condensed Consolidated Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

First Half Ended April 30, 2013

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(63,524	)	$	(21,716	)	$	712		$	21,686		$	(62,842	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Depreciation and amortization		1,124			9,014			14,889			—			25,027
Stock-based compensation		11,223			—			—			—			11,223
Provision for doubtful accounts		—			(1,056	)		4,584			—			3,528
Asset impairments		—			6,323			2,177			—			8,500
Equity in earnings		21,364			(687	)		1,058			(20,677	)		1,058
Non-cash interest expense		785			675			378			—			1,838
Deferred income taxes		—			—			184			—			184
Other adjustments to reconcile net (loss)/income		126			(17	)		(377	)		—			(268	)
Changes in operating assets and liabilities:
Trade accounts receivable		—			55,239			1,346			—			56,585
Inventories		—			(23,280	)		2,186			(1,009	)		(22,103	)
Other operating assets and liabilities		(582	)		(20,416	)		(20,126	)		—			(41,124	)
Net cash (used in)/provided by operating activities		(29,484	)		4,079			7,011			—			(18,394	)
Cash flows from investing activities:
Capital expenditures		(3,971	)		(7,601	)		(17,072	)		—			(28,644	)
Net cash used in investing activities		(3,971	)		(7,601	)		(17,072	)		—			(28,644	)
Cash flows from financing activities:
Borrowings on lines of credit		—			—			6,157			—			6,157
Payments on lines of credit		—			—			(8,860	)		—			(8,860	)
Borrowings on long-term debt		—			49,000			54,134			—			103,134
Payments on long-term debt		—			(36,200	)		(9,502	)		—			(45,702	)
Stock option exercises and employee stock purchases		3,832			—			—			—			3,832
Intercompany		29,407			(8,719	)		(20,688	)		—			—
Net cash provided by financing activities		33,239			4,081			21,241			—			58,561
Effect of exchange rate changes on cash		—			—			(5,453	)		—			(5,453	)
Net (decrease)/increase in cash and cash equivalents		(216	)		559			5,727			—			6,070
Cash and cash equivalents, beginning of period		324			135			41,364			—			41,823
Cash and cash equivalents, end of period	$	108		$	694		$	47,091		$	—		$	47,893

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

First Half Ended April 30, 2012

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(27,725	)	$	(14,892	)	$	31,220		$	(13,920	)	$	(25,317	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Depreciation and amortization		1,138			9,082			16,905			—			27,125
Stock-based compensation		12,400			—			—			—			12,400
Provision for doubtful accounts		—			(1,416	)		1,835			—			419
Asset impairments		—			415			—			—			415
Equity in earnings		(16,190	)		1,733			501			14,457			501
Non-cash interest expense		732			888			344			—			1,964
Deferred income taxes		—			—			9,295			—			9,295
Other adjustments to reconcile net (loss)/income		(138	)		12			(586	)		—			(712	)
Changes in operating assets and liabilities:
Trade accounts receivable		—			25,895			(8,184	)		—			17,711
Inventories		—			(14,290	)		(3,695	)		(537	)		(18,522	)
Other operating assets and liabilities		(1,825	)		(11,645	)		(29,491	)		—			(42,961	)
Net cash (used in)/provided by operating activities		(31,608	)		(4,218	)		18,144			—			(17,682	)
Cash flows from investing activities:
Capital expenditures		(1,559	)		(14,094	)		(18,676	)		—			(34,329	)
Business acquisitions, net of cash acquired		—			—			(9,117	)		—			(9,117	)
Net cash used in investing activities		(1,559	)		(14,094	)		(27,793	)		—			(43,446	)
Cash flows from financing activities:
Borrowings on lines of credit		—			—			8,464			—			8,464
Payments on lines of credit		—			—			(12,326	)		—			(12,326	)
Borrowings on long-term debt		—			62,500			29,477			—			91,977
Payments on long-term debt		—			(35,256	)		(12,100	)		—			(47,356	)
Stock option exercises and employee stock purchases		779			—			—			—			779
Intercompany		32,394			(8,330	)		(24,064	)		—			—
Net cash provided by/(used in) financing activities		33,173			18,914			(10,549	)		—			41,538
Effect of exchange rate changes on cash		—			—			(10,986	)		—			(10,986	)
Net increase/(decrease) in cash and cash equivalents		6			602			(31,184	)		—			(30,576	)
Cash and cash equivalents, beginning of period		17			1,331			108,405			—			109,753
Cash and cash equivalents, end of period	$	23		$	1,933		$	77,221		$	—		$	79,177

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended October 31, 2012

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(10,756	)	$	21,152		$	49,265		$	(69,404	)	$	(9,743	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Depreciation and amortization		2,088			18,002			33,142			—			53,232
Stock-based compensation		22,552			—			—			—			22,552
Provision for doubtful accounts		—			(1,642	)		6,236			—			4,594
Asset impairments		—			5,162			2,072			—			7,234
Equity in earnings		(74,572	)		4,674			282			69,898			282
Non-cash interest expense		1,490			1,506			689			—			3,685
Deferred income taxes		—			474			(9,056	)		—			(8,582	)
Other adjustments to reconcile net (loss)/income		(443	)		36			(6,092	)		—			(6,499	)
Changes in operating assets and liabilities:
Trade accounts receivable		—			(29,521	)		(23,884	)		—			(53,405	)
Inventories		—			7,195			(11,679	)		(494	)		(4,978	)
Other operating assets and liabilities		10,255			2,233			(34,399	)		—			(21,911	)
Net cash (used in)/provided by operating activities		(49,386	)		29,271			6,576			—			(13,539	)
Cash flows from investing activities:
Proceeds from the sale of properties and equipment		—			45			8,153			—			8,198
Capital expenditures		(4,388	)		(22,580	)		(39,113	)		—			(66,081	)
Business acquisitions, net of cash acquired		—			—			(9,117	)		—			(9,117	)
Net cash used in investing activities		(4,388	)		(22,535	)		(40,077	)		—			(67,000	)
Cash flows from financing activities:
Transactions with non-controlling interest owners		—			(11,000	)		—			—			(11,000	)
Borrowings on lines of credit		—			—			15,139			—			15,139
Payments on lines of credit		—			—			(12,641	)		—			(12,641	)
Borrowings on long-term debt		—			93,500			46,535			—			140,035
Payments on long-term debt		—			(70,800	)		(42,041	)		—			(112,841	)
Stock option exercises and employee stock purchases		2,241			—			—			—			2,241
Intercompany		51,840			(19,632	)		(32,208	)		—			—
Net cash provided by/(used in) financing activities		54,081			(7,932	)		(25,216	)		—			20,933
Effect of exchange rate changes on cash		—			—			(8,324	)		—			(8,324	)
Net increase/(decrease) in cash and cash equivalents		307			(1,196	)		(67,041	)		—			(67,930	)
Cash and cash equivalents, beginning of period		17			1,331			108,405			—			109,753
Cash and cash equivalents, end of period	$	324		$	135		$	41,364			—		$	41,823

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended October 31, 2011

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(21,258	)	$	18,304		$	39,479		$	(54,395	)	$	(17,870	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Depreciation and amortization		1,735			20,445			33,079			—			55,259
Stock-based compensation		14,414			—			—			—			14,414
Provision for doubtful accounts		—			1,363			7,369			—			8,732
Asset impairments		—			3,399			82,974			—			86,373
Equity in earnings		(50,224	)		(994	)		(197	)		51,060			(355	)
Non-cash interest expense		1,387			1,808			15,917			—			19,112
Deferred income taxes		—			3,703			(31,951	)		—			(28,248	)
Other adjustments to reconcile net (loss)/income		72			481			(6,219	)		—			(5,666	)
Changes in operating assets and liabilities:
Trade accounts receivable		—			(22,106	)		(11,879	)		—			(33,985	)
Inventories		—			(23,322	)		(50,719	)		3,335			(70,706	)
Other operating assets and liabilities		1,090			(4,275	)		30,274			—			27,089
Net cash (used in)/provided by operating activities		(52,784	)		(1,194	)		108,127			—			54,149
Cash flows from investing activities:
Proceeds from the sale of properties and equipment		—			15			12,531			—			12,546
Capital expenditures		(12,570	)		(34,624	)		(42,396	)		—			(89,590	)
Business acquisitions, net of cash acquired		—			(528	)		(5,050	)		—			(5,578	)
Net cash used in investing activities		(12,570	)		(35,137	)		(34,915	)		—			(82,622	)
Cash flows from financing activities:
Borrowings on lines of credit		—			—			30,070			—			30,070
Payments on lines of credit		—			—			(35,303	)		—			(35,303	)
Borrowings on long-term debt		—			44,500			270,830			—			315,330
Payments on long-term debt		—			(25,524	)		(259,152	)		—			(284,676	)
Payments of debt issuance costs		—			—			(6,391	)		—			(6,391	)
Stock option exercises and employee stock purchases		4,129			—			—			—			4,129
Intercompany		61,078			(20,486	)		(40,592	)		—			—
Net cash provided by/(used in) financing activities		65,207			(1,510	)		(40,538	)		—			23,159
Effect of exchange rate changes on cash		—			—			(5,526	)		—			(5,526	)
Net (decrease)/increase in cash and cash equivalents		(147	)		(37,841	)		27,148			—			(10,840	)
Cash and cash equivalents, beginning of period		164			39,172			81,257			—			120,593
Cash and cash equivalents, end of period	$	17		$	1,331		$	108,405			—		$	109,753

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

Year Ended October 31, 2010

In thousands	Quiksilver, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(9,684	)	$	(33,406	)	$	90,314		$	(53,494	)	$	(6,270	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income from discontinued operations		—			(1,485	)		(345	)		—			(1,830	)
Depreciation and amortization		1,519			21,494			30,848			—			53,861
Stock-based compensation		12,831			—			—			—			12,831
Provision for doubtful accounts		—			4,360			10,947			—			15,307
Equity in earnings		(50,399	)		(1,482	)		(524	)		51,881			(524	)
Asset impairments		—			8,403			3,254			—			11,657
Non-cash interest expense		1,292			42,740			12,663			—			56,695
Deferred taxes		—			(5,652	)		13,681			—			8,029
Other adjustments to reconcile net (loss)/income		(195	)		(1,455	)		(1,892	)		—			(3,542	)
Changes in operating assets and liabilities:
Trade accounts receivable		—			15,735			24,111			—			39,846
Inventories		—			(5,075	)		7,967			1,613			4,505
Other operating assets and liabilities		16,733			7,960			(15,561	)		—			9,132
Cash (used in)/provided by operating activities of continuing operations		(27,903	)		52,137			175,463			—			199,697
Cash provided by operating activities of discontinued operations		—			1,507			2,278			—			3,785
Net cash (used in)/provided by operating activities		(27,903	)		53,644			177,741			—			203,482
Cash flows from investing activities:
Proceeds from the sale of properties and equipment		34			4,519			109			—			4,662
Capital expenditures		(4,194	)		(10,730	)		(32,873	)		—			(47,797	)
Changes in restricted cash		—			—			52,706			—			52,706
Net cash (used in)/provided by investing activities		(4,160	)		(6,211	)		19,942			—			9,571
Cash flows from financing activities:
Borrowings on lines of credit		—			—			16,581			—			16,581
Payments on lines of credit		—			—			(27,021	)		—			(27,021	)
Borrowings on long-term debt		—			42,735			16,618			—			59,353
Payments on long-term debt		—			(51,489	)		(169,077	)		—			(220,566	)
Payments of debt and equity issuance costs		(7,750	)		—			(1,823	)		—			(9,573	)
Proceeds from stock option exercises		3,639			—			—			—			3,639
Transactions with non-controlling interests owners		—			(1,542	)		(3,632	)		—			(5,174	)
Intercompany		36,017			900			(36,917	)		—			—
Net cash provided by/(used in) financing activities		31,906			(9,396	)		(205,271	)		—			(182,761	)
Effect of exchange rate changes on cash		—			—			(9,215	)		—			(9,215	)
Net (decrease)/increase in cash and cash equivalents		(157	)		38,037			(16,803	)		—			21,077
Cash and cash equivalents, beginning of period		321			1,135			98,060			—			99,516
Cash and cash equivalents, end of period	$	164		$	39,172		$	81,257			—		$	120,593

Quiksilver, Inc. and QS Wholesale, Inc. [Member]

Condensed Consolidated Statement of Operations

Condensed Consolidating Statement of Operations

Second Quarter Ended April 30, 2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	105,393		$	108,336		$	290,111		$	(45,208	)	$	458,748
Cost of goods sold		—			65,353			71,696			144,071			(33,508	)		247,612
Gross profit		116			40,040			36,640			146,040			(11,700	)		211,136
Selling, general and administrative expense		11,753			36,182			36,817			141,282			(7,830	)		218,204
Asset impairments		—			1,646			3,342			344			—			5,332
Operating (loss)/income		(11,637	)		2,212			(3,519	)		4,414			(3,870	)		(12,400	)
Interest expense, net		7,269			1,440			(54	)		6,634			—			15,289
Foreign currency (gain)/loss		(28	)		73			125			(2,788	)		—			(2,618	)
Equity in earnings		13,094			(483	)		—			—			(12,611	)		—
(Loss)/income before provision for income taxes		(31,972	)		1,182			(3,590	)		568			8,741			(25,071	)
Provision for income taxes		423			1,231			—			5,493			—			7,147
Net loss		(32,395	)		(49	)		(3,590	)		(4,925	)		8,741			(32,218	)
Less: Net income attributable to non-controlling interest		—			—			—			(177	)		—			(177	)
Net loss attributable to Quiksilver, Inc.		(32,395	)		(49	)		(3,590	)		(5,102	)		8,741			(32,395	)
Other comprehensive loss		(16,723	)		—			—			(16,723	)		16,723			(16,723	)
Comprehensive loss attributable to Quiksilver, Inc.	$	(49,118	)	$	(49	)	$	(3,590	)	$	(21,825	)	$	25,464		$	(49,118	)

Condensed Consolidating Statement of Operations

Second Quarter Ended April 30, 2012

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	120		$	102,789	$	109,272	$	328,589		$	(48,557	)	$	492,213
Cost of goods sold		—			64,425		65,796		155,662			(35,819	)		250,064
Gross profit		120			38,364		43,476		172,927			(12,738	)		242,149
Selling, general and administrative expense		12,869			35,782		39,152		144,422			(8,215	)		224,010
Asset impairments		—			—		415		—			—			415
Operating (loss)/income		(12,749	)		2,582		3,909		28,505			(4,523	)		17,724
Interest expense, net		7,239			1,391		—		6,955			—			15,585
Foreign currency loss/(gain)		13			131		81		(834	)		—			(609	)
Equity in earnings		(14,881	)		482		—		—			14,399			—
(Loss)/income before provision for income taxes		(5,120	)		578		3,828		22,384			(18,922	)		2,748
Provision for income taxes		—			216		—		6,939			—			7,155
Net (loss)/income		(5,120	)		362		3,828		15,445			(18,922	)		(4,407	)
Less: Net income attributable to non-controlling interest		—			—		—		(713	)		—			(713	)
Net (loss)/income attributable to Quiksilver, Inc.		(5,120	)		362		3,828		14,732			(18,922	)		(5,120	)
Other comprehensive loss		(1,271	)		—		—		(1,271	)		1,271			(1,271	)
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(6,391	)	$	362	$	3,828	$	13,461		$	(17,651	)	$	(6,391	)

Condensed Consolidating Statement of Operations

First Half Ended April 30, 2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	232		$	193,912		$	222,717		$	587,455		$	(114,550	)	$	889,766
Cost of goods sold		—			117,959			159,945			277,756			(96,737	)		458,923
Gross profit		232			75,953			62,772			309,699			(17,813	)		430,843
Selling, general and administrative expense		27,728			72,129			75,058			283,436			(14,888	)		443,463
Asset impairments		—			1,646			4,677			2,177			—			8,500
Operating (loss)/income		(27,496	)		2,178			(16,963	)		24,086			(2,925	)		(21,120	)
Interest expense, net		14,538			2,909			(55	)		13,404			—			30,796
Foreign currency loss		126			86			277			66			—			555
Equity in earnings		20,941			(687	)		—			—			(20,254	)		—
(Loss)/income before provision for income taxes		(63,101	)		(130	)		(17,185	)		10,616			17,329			(52,471	)
Provision for income taxes		423			44			—			9,904			—			10,371
Net (loss)/income		(63,524	)		(174	)		(17,185	)		712			17,329			(62,842	)
Less: Net income attributable to non-controlling interest		—			—			—			(682	)		—			(682	)
Net (loss)/income attributable to Quiksilver, Inc		(63,524	)		(174	)		(17,185	)		30			17,329			(63,524	)
Other comprehensive loss		(8,613	)		—			—			(8,613	)		8,613			(8,613	)
Comprehensive loss attributable to Quiksilver, Inc.	$	(72,137	)	$	(174	)	$	(17,185	)	$	(8,583	)	$	25,942		$	(72,137	)

Condensed Consolidating Statement of Operations

First Half Ended April 30, 2012

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	236		$	232,949		$	226,151		$	633,616		$	(151,118	)	$	941,834
Cost of goods sold		—			146,286			150,591			291,845			(116,987	)		471,735
Gross profit		236			86,663			75,560			341,771			(34,131	)		470,099
Selling, general and administrative expense		29,785			73,689			78,742			287,467			(15,258	)		454,425
Asset impairments		—			—			415			—			—			415
Operating (loss)/income		(29,549	)		12,974			(3,597	)		54,304			(18,873	)		15,259
Interest expense, net		14,479			2,685			—			13,466			—			30,630
Foreign currency (gain)/loss		(113	)		(124	)		133			(2,355	)		—			(2,459	)
Equity in earnings		(16,190	)		1,733			—			—			14,457			—
(Loss)/income before provision for income taxes		(27,725	)		8,680			(3,730	)		43,193			(33,330	)		(12,912	)
Provision for income taxes		—			432			—			11,973			—			12,405
Net (loss)/income		(27,725	)		8,248			(3,730	)		31,220			(33,330	)		(25,317	)
Less: Net income attributable to non-controlling interest		—			—			—			(2,408	)		—			(2,408	)
Net (loss)/income attributable to Quiksilver, Inc		(27,725	)		8,248			(3,730	)		28,812			(33,330	)		(27,725	)
Other comprehensive loss		(21,031	)		—			—			(21,031	)		21,031			(21,031	)
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(48,756	)	$	8,248		$	(3,730	)	$	7,781		$	(12,299	)	$	(48,756	)

Condensed Consolidating Statement of Operations

Year Ended October 31, 2012

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	469		$	453,532		$	573,826		$	1,262,757		$	(277,345	)	$	2,013,239
Cost of goods sold		—			275,179			373,016			602,115			(217,417	)		1,032,893
Gross profit		469			178,353			200,810			660,642			(59,928	)		980,346
Selling, general and administrative expense		56,983			147,684			164,202			577,868			(30,593	)		916,144
Asset impairments		—			11			5,151			2,072			—			7,234
Operating (loss)/income		(56,514	)		30,658			31,457			80,702			(29,335	)		56,968
Interest expense, net		28,987			5,352			(1	)		26,485			—			60,823
Foreign currency (gain)/loss		(173	)		(148	)		113			(1,461	)		—			(1,669	)
Equity in earnings		(74,572	)		4,674			—			—			69,898			—
(Loss)/income before provision for income taxes		(10,756	)		20,780			31,345			55,678			(99,233	)		(2,186	)
Provision for income taxes		—			1,144			—			6,413			—			7,557
Net (loss)/income		(10,756	)		19,636			31,345			49,265			(99,233	)		(9,743	)
Less: Net income attributable to non-controlling interest		—			—			—			(1,013	)		—			(1,013	)
Net (loss)/income attributable to Quiksilver, Inc		(10,756	)		19,636			31,345			48,252			(99,233	)		(10,756	)
Other comprehensive loss		(29,715	)		—			—			(29,715	)		29,715			(29,715	)
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(40,471	)	$	19,636		$	31,345		$	18,537		$	(69,518	)	$	(40,471	)

Condensed Consolidating Statement of Operations

Year Ended October 31, 2011

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	464		$	440,088		$	479,559		$	1,270,320		$	(237,370	)	$	1,953,061
Cost of goods sold		—			268,361			291,972			554,593			(185,699	)		929,227
Gross profit		464			171,727			187,587			715,727			(51,671	)		1,023,834
Selling, general and administrative expense		43,045			139,530			172,310			566,703			(25,639	)		895,949
Asset impairments		—			1,778			1,621			82,974			—			86,373
Operating (loss)/income		(42,581	)		30,419			13,656			66,050			(26,032	)		41,512
Interest expense, net		28,871			3,795			(10	)		41,152			—			73,808
Foreign currency loss/(gain)		30			(229	)		189			(101	)		—			(111	)
Equity in earnings		(50,224	)		(836	)		—			—			51,060			—
(Loss)/income before provision/(benefit) for income taxes		(21,258	)		27,689			13,477			24,999			(77,092	)		(32,185	)
Provision/(benefit) for income taxes		—			165			—			(14,480	)		—			(14,315	)
Net (loss)/income		(21,258	)		27,524			13,477			39,479			(77,092	)		(17,870	)
Less: Net income attributable to non-controlling interest		—			—			—			(3,388	)		—			(3,388	)
Net (loss)/income attributable to Quiksilver, Inc		(21,258	)		27,524			13,477			36,091			(77,092	)		(21,258	)
Other comprehensive income		2,445			—			—			2,445			(2,445	)		2,445
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(18,813	)	$	27,524		$	13,477		$	38,536		$	(79,537	)	$	(18,813	)

Condensed Consolidating Statement of Operations

Year Ended October 31, 2010

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	376		$	418,623		$	421,759		$	1,195,536		$	(198,674	)	$	1,837,620
Cost of goods sold		—			261,491			240,660			511,777			(143,556	)		870,372
Gross profit		376			157,132			181,099			683,759			(55,118	)		967,248
Selling, general and administrative expense		36,867			133,730			149,617			537,153			(29,817	)		832,066
Asset impairments		—			667			6,918			4,072			—			11,657
Operating (loss)/income		(36,491	)		22,735			24,564			142,534			(29,817	)		123,525
Interest expense, net		28,721			55,070			—			30,318			—			114,109
Foreign currency gain		(285	)		(113	)		(11	)		(5,508	)		—			(5,917	)
Equity in earnings and other (income)/expense		(50,399	)		(1,482	)		—			—			51,881			—
(Loss)/income before (benefit)/provision for income taxes		(14,528	)		(30,740	)		24,575			117,724			(81,698	)		15,333
(Benefit)/provision for income taxes		(4,844	)		522			—			27,755			—			23,433
(Loss)/income from continuing operations		(9,684	)		(31,262	)		24,575			89,969			(81,698	)		(8,100	)
Income from discontinued operations		—			—			1,485			345			—			1,830
Net (loss)/income		(9,684	)		(31,262	)		26,060			90,314			(81,698	)		(6,270	)
Less: Net income attributable to non-controlling interest		—			—			—			(3,414	)		—			(3,414	)
Net (loss) income attributable to Quiksilver, Inc		(9,684	)		(31,262	)		26,060			86,900			(81,698	)		(9,684	)
Other comprehensive income		18,286			—			—			18,286			(18,286	)		18,286
Comprehensive income/(loss) attributable to Quiksilver, Inc.	$	8,602		$	(31,262	)	$	26,060		$	105,186		$	(99,984	)	$	8,602

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

April 30, 2013

In thousands	Quiksilver, Inc.		QS Wholesale, Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	108	$	2,186	$	(1,492	)	$	47,091	$	—		$	47,893
Trade accounts receivable, net		—		82,867		44,895			247,574		—			375,336
Other receivables		19		2,925		5,601			23,388		—			31,933
Income taxes receivable		—		232		—			—		(232	)		—
Inventories		—		46,391		103,330			234,160		(17,577	)		366,304
Deferred income taxes		—		26,617		—			20,487		(21,408	)		25,696
Prepaid expenses and other current assets		4,594		5,011		4,899			18,953		—			33,457
Intercompany balances		—		34,756		59,069			67,483		(161,308	)		—
Total current assets		4,721		200,985		216,302			659,136		(200,525	)		880,619
Fixed assets, net		19,454		35,349		22,425			155,727		—			232,955
Intangible assets, net		3,752		45,039		2,132			87,826		—			138,749
Goodwill		—		103,880		8,336			160,548		—			272,764
Other assets		1,902		1,396		586			39,875		—			43,759
Deferred income taxes long-term		20,387		—		—			139,240		(45,236	)		114,391
Investment in subsidiaries		1,066,983		161,231		—			—		(1,228,214	)		—
Total assets	$	1,117,199	$	547,880	$	249,781		$	1,242,352	$	(1,473,975	)	$	1,683,237
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	2,756	$	46,944	$	38,081		$	97,789	$	—		$	185,570
Accrued liabilities		6,049		13,345		9,313			73,773		—			102,480
Current portion of long-term debt		—		6,094		—			38,740		—			44,834
Income taxes payable		—		—		—			683		(232	)		451
Deferred income taxes		20,902		—		506			—		(21,408	)		—
Intercompany balances		161,308		—		—			—		(161,308	)		—
Total current liabilities		191,015		66,383		47,900			210,985		(182,948	)		333,335
Long-term debt		400,000		76,000		—			293,108		—			769,108
Deferred income taxes long-term		—		42,951		2,285			—		(45,236	)		—
Other long-term liabilities		—		5,108		8,474			21,376		—			34,958
Total liabilities		591,015		190,442		58,659			525,469		(228,184	)		1,137,401
Stockholders’/invested equity:		526,184		357,438		191,122			697,231		(1,245,791	)		526,184
Non-controlling interest		—		—		—			19,652		—			19,652
Total liabilities and equity	$	1,117,199	$	547,880	$	249,781		$	1,242,352	$	(1,473,975	)	$	1,683,237

Condensed Consolidating Balance Sheet

October 31, 2012

In thousands	Quiksilver, Inc.		QS Wholesale, Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	324	$	1,966	$	(1,831	)	$	41,364	$	—		$	41,823
Trade accounts receivable, net		—		80,522		101,423			251,798		—			433,743
Other receivables		20		2,767		3,391			26,640		—			32,818
Income taxes receivable		—		117		—			—		(117	)		—
Inventories		—		32,156		97,522			237,465		(22,397	)		344,746
Deferred income taxes		—		26,617		—			21,159		(21,408	)		26,368
Prepaid expenses and other current assets		2,277		4,463		5,085			14,546		—			26,371
Intercompany balances		—		40,248		45,565			32,506		(118,319	)		—
Total current assets		2,621		188,856		251,155			625,478		(162,241	)		905,869
Fixed assets, net		18,802		39,175		25,321			155,015		—			238,313
Intangible assets, net		3,228		45,547		2,199			88,475		—			139,449
Goodwill		—		103,880		8,336			160,951		—			273,167
Other assets		2,753		2,083		594			42,359		—			47,789
Deferred income taxes long-term		20,387		—		—			138,502		(45,236	)		113,653
Investment in subsidiaries		1,087,924		159,273		—			—		(1,247,197	)		—
Total assets	$	1,135,715	$	538,814	$	287,605		$	1,210,780	$	(1,454,674	)	$	1,718,240
LIABILITIES AND EQUITY
Current liabilities:
Lines of credit		—		—		—			18,147		—			18,147
Accounts payable		6,995		39,542		55,813			101,222		—			203,572
Accrued liabilities		6,189		15,699		12,644			80,359		—			114,891
Current portion of long-term debt		—		8,594		—			10,053		—			18,647
Income taxes payable		—		—		—			1,476		(117	)		1,359
Deferred income taxes		20,902		—		506			—		(21,408	)		—
Intercompany balances		118,319		—		—			—		(118,319	)		—
Total current liabilities		152,405		63,835		68,963			211,257		(139,844	)		356,616
Long-term debt		400,000		60,700		—			260,475		—			721,175
Deferred income taxes long-term		—		42,951		2,285			—		(45,236	)		—
Other long-term liabilities		—		5,413		9,048			23,752		—			38,213
Total liabilities		552,405		172,899		80,296			495,484		(185,080	)		1,116,004
Stockholders’/invested equity:		583,310		365,915		207,309			696,370		(1,269,594	)		583,310
Non-controlling interest		—		—		—			18,926		—			18,926
Total liabilities and equity	$	1,135,715	$	538,814	$	287,605		$	1,210,780	$	(1,454,674	)	$	1,718,240

Condensed Consolidating Balance Sheet

October 31, 2012

In thousands	Quiksilver, Inc.		QS Wholesale, Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	324	$	1,966	$	(1,831	)	$	41,364	$	—		$	41,823
Trade accounts receivable, net		—		80,522		101,423			251,798		—			433,743
Other receivables		20		2,767		3,391			26,640		—			32,818
Income taxes receivable		—		117		—			—		(117	)		—
Inventories		—		32,156		97,522			237,465		(22,397	)		344,746
Deferred income taxes		—		26,617		—			21,159		(21,408	)		26,368
Prepaid expenses and other current assets		2,277		4,463		5,085			14,546		—			26,371
Intercompany balances				40,248		45,565			32,506		(118,319	)		—
Total current assets		2,621		188,856		251,155			625,478		(162,241	)		905,869
Fixed assets, net		18,802		39,175		25,321			155,015		—			238,313
Intangible assets, net		3,228		45,547		2,199			88,475		—			139,449
Goodwill		—		103,880		8,336			160,951		—			273,167
Other assets		2,753		2,083		594			42,359		—			47,789
Deferred income taxes long-term		20,387		—		—			138,502		(45,236	)		113,653
Investment in subsidiaries		1,087,924		159,273					—		(1,247,197	)		—
Total assets	$	1,135,715	$	538,814	$	287,605		$	1,210,780	$	(1,454,674	)	$	1,718,240
LIABILITIES AND EQUITY
Current liabilities:
Lines of credit		—		—		—			18,147		—			18,147
Accounts payable		6,995		39,542		55,813			101,222		—			203,572
Accrued liabilities		6,189		15,699		12,644			80,359		—			114,891
Current portion of long-term debt		—		8,594		—			10,053		—			18,647
Income taxes payable				—		—			1,476		(117	)		1,359
Deferred income taxes		20,902		—		506			—		(21,408	)		0
Intercompany balances		118,319		—		—			—		(118,319	)		—
Total current liabilities		152,405		63,835		68,963			211,257		(139,844	)		356,616
Long-term debt		400,000		60,700		—			260,475		—			721,175
Deferred income taxes long-term		—		42,951		2,285			—		(45,236	)		0
Other long-term liabilities		—		5,413		9,048			23,752		—			38,213
Total liabilities		552,405		172,899		80,296			495,484		(185,080	)		1,116,004
Stockholders’/invested equity:		583,310		365,915		207,309			696,370		(1,269,594	)		583,310
Non-controlling interest		—		—		—			18,926		—			18,926
Total liabilities and equity	$	1,135,715	$	538,814	$	287,605		$	1,210,780	$	(1,454,674	)	$	1,718,240

Condensed Consolidating Balance Sheet

October 31, 2011

In thousands	Quiksilver, Inc.		QS Wholesale, Inc.		Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	17	$	4,972	$	(3,641	)	$	108,405	$	—		$	109,753
Trade accounts receivable, net		—		72,533		78,249			246,307		—			397,089
Other receivables		122		3,024		2,894			17,150		—			23,190
Income taxes receivable		—		390		—			3,875		—			4,265
Inventories		—		57,862		74,754			234,266		(19,125	)		347,757
Deferred income taxes		—		15,111		—			33,990		(16,293	)		32,808
Prepaid expenses and other current assets		2,378		3,507		5,018			14,526		—			25,429
Intercompany balances		—		—		67,075			65,631		(132,706	)		—
Total current assets		2,517		157,399		224,349			724,150		(168,124	)		940,291
Fixed assets, net		17,602		36,493		28,450			155,562		—			238,107
Intangible assets, net		3,007		46,510		2,233			86,393		—			138,143
Goodwill		—		103,880		8,336			156,373		—			268,589
Other assets		4,457		3,377		559			47,421		—			55,814
Deferred income taxes long-term		11,531		—		1,577			141,554		(31,383	)		123,279
Investment in subsidiaries		1,084,745		163,174		—			—		(1,247,919	)		—
Total assets	$	1,123,859	$	510,833	$	265,504		$	1,311,453	$	(1,447,426	)	$	1,764,223
LIABILITIES AND EQUITY
Current liabilities:
Lines of credit		—		—		—			18,335		—			18,335
Accounts payable		2,510		50,858		37,422			112,233		—			203,023
Accrued liabilities		6,673		12,666		17,422			96,183		—			132,944
Current portion of long-term debt		—		3,000		—			1,628		—			4,628
Income taxes payable		—		—		—			—		—			—
Deferred income taxes		11,998		—		4,295			—		(16,293	)		0
Intercompany balances		92,580		40,126		—			—		(132,706	)		—
Total current liabilities		113,761		106,650		59,139			228,379		(148,999	)		358,930
Long-term debt		400,000		36,542		—			288,181		—			724,723
Deferred income taxes long-term		—		31,383		—			—		(31,383	)		0
Other long-term liabilities		—		6,546		4,937			46,465		—			57,948
Total liabilities		513,761		181,121		64,076			563,025		(180,882	)		1,141,601
Stockholders’/invested equity:		610,098		329,712		201,428			735,904		(1,267,044	)		610,098
Non-controlling interest		—		—		—			12,524		—			12,524
Total liabilities and equity	$	1,123,859	$	510,833	$	265,504		$	1,311,453	$	(1,447,426	)	$	1,764,223

Condensed Consolidated Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

First Half Ended April 30, 2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(63,524	)	$	(174	)	$	(17,185	)	$	712		$	17,329		$	(62,842	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Depreciation and Amortization		1,124			5,921			3,093			14,889			—			25,027
Stock based compensation		11,223			—			—			—			—			11,223
Provision for doubtful accounts		—			325			(1,381	)		4,584			—			3,528
Asset impairments		—			1,646			4,677			2,177			—			8,500
Equity in earnings		20,941			(687	)		—			1,058			(20,254	)		1,058
Non-cash interest expense		785			675			—			378			—			1,838
Deferred income taxes		—			—			—			184			—			184
Other adjustments to reconcile net (loss)/income		126			—			(17	)		(377	)		—			(268	)
Changes in operating assets and liabilities:
Trade accounts receivable		—			(2,670	)		57,909			1,346			—			56,585
Inventories		—			(18,169	)		(9,045	)		2,186			2,925			(22,103	)
Other operating assets and liabilities		(582	)		4,377			(24,793	)		(20,126	)		—			(41,124	)
Net cash (used in)/provided by operating activities		(29,907	)		(8,756	)		13,258			7,011			—			(18,394	)
Cash flows from investing activities:
Capital expenditures		(3,971	)		(3,562	)		(4,039	)		(17,072	)		—			(28,644	)
Net cash used in investing activities		(3,971	)		(3,562	)		(4,039	)		(17,072	)		—			(28,644	)
Cash flows from financing activities:
Borrowings on lines of credit		—			—			—			6,157			—			6,157
Payments on lines of credit		—			—			—			(8,860	)		—			(8,860	)
Borrowings on long-term debt		—			49,000			—			54,134			—			103,134
Payments on long-term debt		—			(36,200	)		—			(9,502	)		—			(45,702	)
Stock option exercises and employee stock purchases		3,832			—			—			—			—			3,832
Intercompany		29,830			(262	)		(8,880	)		(20,688	)		—			—
Net cash provided by/(used in) financing activities		33,662			12,538			(8,880	)		21,241			—			58,561
Effect of exchange rate changes on cash		—			—			—			(5,453	)		—			(5,453	)
Net (decrease)/increase in cash and cash equivalents		(216	)		220			339			5,727			—			6,070
Cash and cash equivalents, beginning of period		324			1,966			(1,831	)		41,364			—			41,823
Cash and cash equivalents, end of period	$	108		$	2,186		$	(1,492	)	$	47,091		$	—		$	47,893

Condensed Consolidating Statement of Cash Flows

First Half Ended April 30, 2012

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(27,725	)	$	8,248		$	(3,730	)	$	31,220		$	(33,330	)	$	(25,317	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Depreciation and Amortization		1,138			5,722			3,360			16,905			—			27,125
Stock based compensation		12,400			—			—			—			—			12,400
Provision for doubtful accounts		—			(661	)		(755	)		1,835			—			419
Asset impairments		—			—			415			—			—			415
Equity in earnings		(16,190	)		1,733			—			501			14,457			501
Non-cash interest expense		732			888			—			344			—			1,964
Deferred income taxes		—			—			—			9,295			—			9,295
Other adjustments to reconcile net (loss)/income		(138	)		7			5			(586	)		—			(712	)
Changes in operating assets and liabilities:
Trade accounts receivable		—			(4,562	)		30,457			(8,184	)		—			17,711
Inventories		—			22,831			(56,531	)		(3,695	)		18,873			(18,522	)
Other operating assets and liabilities		(4,781	)		(11,202	)		2,513			(29,491	)		—			(42,961	)
Net cash (used in)/provided by operating activities		(34,564	)		23,004			(24,266	)		18,144			—			(17,682	)
Cash flows from investing activities:
Capital expenditures		(1,559	)		(9,084	)		(5,010	)		(18,676	)		—			(34,329	)
Business acquisitions, net of cash acquired		—			—			—			(9,117	)		—			(9,117	)
Net cash used in investing activities		(1,559	)		(9,084	)		(5,010	)		(27,793	)		—			(43,446	)
Cash flows from financing activities:
Borrowings on lines of credit		—			—			—			8,464			—			8,464
Payments on lines of credit		—			—			—			(12,326	)		—			(12,326	)
Borrowings on long-term debt		—			62,500			—			29,477			—			91,977
Payments on long-term debt		—			(35,256	)		—			(12,100	)		—			(47,356	)
Stock option exercises and employee stock purchases		779			—			—			—			—			779
Intercompany		35,350			(42,151	)		30,865			(24,064	)		—			—
Net cash provided by/(used in) financing activities		36,129			(14,907	)		30,865			(10,549	)		—			41,538
Effect of exchange rate changes on cash		—			—			—			(10,986	)		—			(10,986	)
Net increase/(decrease) in cash and cash equivalents		6			(987	)		1,589			(31,184	)		—			(30,576	)
Cash and cash equivalents, beginning of period		17			4,972			(3,641	)		108,405			—			109,753
Cash and cash equivalents, end of period	$	23		$	3,985		$	(2,052	)	$	77,221		$	—		$	79,177

Condensed Consolidating Statement of Cash Flows

Year Ended October 31, 2012

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(10,756	)	$	19,636		$	31,345		$	49,265		$	(99,233	)	$	(9,743	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Depreciation and Amortization		2,088			11,314			6,688			33,142			—			53,232
Stock based compensation		22,552						—			—			—			22,552
Provision for doubtful accounts		—			(763	)		(879	)		6,236			—			4,594
Asset impairments		—			11			5,151			2,072			—			7,234
Equity in earnings		(74,572	)		4,674						282			69,898			282
Non-cash interest expense		1,490			1,506			—			689			—			3,685
Deferred income taxes		—			62			412			(9,056	)		—			(8,582	)
Other adjustments to reconcile net (loss)/income		(443	)		(94	)		130			(6,092	)		—			(6,499	)
Changes in operating assets and liabilities:
Trade accounts receivable		—			(7,227	)		(22,294	)		(23,884	)		—			(53,405	)
Inventories		—			23,444			(46,078	)		(11,679	)		29,335			(4,978	)
Other operating assets and liabilities		5,918			(9,589	)		16,159			(34,399	)		—			(21,911	)
Net cash (used in)/provided by operating activities		(53,723	)		42,974			(9,366	)		6,576			—			(13,539	)
Cash flows from investing activities:
Proceeds from the sale of properties and equipment		—			43			2			8,153			—			8,198
Capital expenditures		(4,388	)		(13,744	)		(8,836	)		(39,113	)		—			(66,081	)
Business acquisitions, net of cash acquired		—			—			—			(9,117	)		—			(9,117	)
Net cash used in investing activities		(4,388	)		(13,701	)		(8,834	)		(40,077	)		—			(67,000	)
Cash flows from financing activities:
Borrowings on lines of credit		—			—			—			15,139			—			15,139
Payments on lines of credit		—			—			—			(12,641	)		—			(12,641	)
Borrowings on long-term debt		—			93,500			—			46,535			—			140,035
Payments on long-term debt		—			(70,800	)		—			(42,041	)		—			(112,841	)
Stock option exercises and employee stock purchases		2,241			—			—			—			—			2,241
Transactions with non-controlling interest owners		—			(11,000	)		—			—			—			(11,000	)
Intercompany		56,177			(43,979	)		20,010			(32,208	)		—			—
Net cash provided by/(used in) financing activities		58,418			(32,279	)		20,010			(25,216	)		—			20,933
Effect of exchange rate changes on cash		—			—			—			(8,324	)		—			(8,324	)
Net increase/(decrease) in cash and cash equivalents		307			(3,006	)		1,810			(67,041	)		—			(67,930	)
Cash and cash equivalents, beginning of period		17			4,972			(3,641	)		108,405			—			109,753
Cash and cash equivalents, end of period	$	324		$	1,966		$	(1,831	)	$	41,364		$	—		$	41,823

Condensed Consolidating Statement of Cash Flows

Year Ended October 31, 2011

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(21,258	)	$	27,524		$	13,477		$	39,479		$	(77,092	)	$	(17,870	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Depreciation and Amortization		1,735			13,191			7,254			33,079			—			55,259
Stock based compensation		14,414			—			—			—			—			14,414
Provision for doubtful accounts		—			225			1,138			7,369			—			8,732
Asset impairments		—			1,778			1,621			82,974			—			86,373
Equity in earnings		(50,224	)		(994	)		—			(197	)		51,060			(355	)
Non-cash interest expense		1,387			1,808			—			15,917			—			19,112
Deferred income taxes		—			93			3,610			(31,951	)		—			(28,248	)
Other adjustments to reconcile net (loss)/income		72			351			130			(6,219	)		—			(5,666	)
Changes in operating assets and liabilities:
Trade accounts receivable		—			(8,811	)		(13,295	)		(11,879	)		—			(33,985	)
Inventories		—			(49,448	)		3,429			(50,719	)		26,032			(70,706	)
Other operating assets and liabilities		(17,134	)		5,146			8,803			30,274			—			27,089
Net cash (used in)/provided by operating activities		(71,008	)		(9,137	)		26,167			108,127			—			54,149
Cash flows from investing activities:
Proceeds from the sale of properties and equipment		—			5			10			12,531			—			12,546
Capital expenditures		(12,570	)		(21,726	)		(12,898	)		(42,396	)		—			(89,590	)
Business acquisitions, net of cash acquired		—			—			(528	)		(5,050	)		—			(5,578	)
Net cash used in investing activities		(12,570	)		(21,721	)		(13,416	)		(34,915	)		—			(82,622	)
Cash flows from financing activities:
Borrowings on lines of credit		—			—			—			30,070			—			30,070
Payments on lines of credit		—			—			—			(35,303	)		—			(35,303	)
Borrowings on long-term debt		—			44,500			—			270,830			—			315,330
Payments on long-term debt		—			(25,524	)		—			(259,152	)		—			(284,676	)
Payments of debt issuance costs		—			—			—			(6,391	)		—			(6,391	)
Stock option exercises and employee stock purchases		4,129			—			—			—			—			4,129
Intercompany		79,302			(21,853	)		(16,857	)		(40,592	)		—			—
Net cash provided by/(used in) financing activities		83,431			(2,877	)		(16,857	)		(40,538	)		—			23,159
Effect of exchange rate changes on cash		—			—			—			(5,526	)		—			(5,526	)
Net (decrease)/increase in cash and cash equivalents		(147	)		(33,735	)		(4,106	)		27,148			—			(10,840	)
Cash and cash equivalents, beginning of period		164			38,707			465			81,257			—			120,593
Cash and cash equivalents, end of period	$	17		$	4,972		$	(3,641	)	$	108,405		$	—		$	109,753

Condensed Consolidating Statement of Cash Flows

Year Ended October 31, 2010

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(9,684	)	$	(31,262	)	$	26,060		$	90,314		$	(81,698	)	$	(6,270	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income from discontinued operations		—			—			(1,485	)		(345	)		—			(1,830	)
Depreciation and Amortization		1,519			12,134			9,360			30,848			—			53,861
Stock based compensation		12,831			—			—			—			—			12,831
Provision for doubtful accounts		—			2,982			1,378			10,947			—			15,307
Equity in earnings		(50,399	)		(1,482	)		—			(524	)		51,881			(524	)
Asset impairments		—			667			6,918			4,072			—			11,657
Non-Cash interest expense		1,292			42,740			—			12,663			—			56,695
Deferred taxes		—			(2,203	)		(3,449	)		13,681			—			8,029
Other adjustments to reconcile net (loss)/income		(195	)		(1,225	)		(230	)		(1,892	)		—			(3,542	)
Changes in operating assets and liabilities:
Trade accounts receivable		—			10,464			5,271			24,111			—			39,846
Inventories		—			(27,021	)		(6,258	)		7,967			29,817			4,505
Other operating assets and liabilities		8,350			7,975			8,368			(15,561	)		—			9,132
Cash (used in)/provided by operating activities of continuing operations		(36,286	)		13,769			45,933			176,281			—			199,697
Cash provided by operating activities of discontinued operations		—			—			1,507			2,278			—			3,785
Net cash (used in)/provided by operating activities		(36,286	)		13,769			47,440			178,559			—			203,482
Cash flows from investing activities:
Proceeds from the sale of properties and equipment		34			4,500			19			109			—			4,662
Capital expenditures		(4,194	)		(6,901	)		(3,829	)		(32,873	)		—			(47,797	)
Changes in restricted cash		—			—			—			52,706			—			52,706
Net cash (used in)/provided by investing activities		(4,160	)		(2,401	)		(3,810	)		19,942			—			9,571
Cash flows from financing activities:
Borrowings on lines of credit		—			—			—			16,581			—			16,581
Payments on lines of credit		—			—			—			(27,021	)		—			(27,021	)
Borrowings on long-term debt		—			42,735			—			16,618			—			59,353
Payments on long-term debt		—			(51,489	)		—			(169,077	)		—			(220,566	)
Payments of debt and equity issuance costs		(7,750	)		—			—			(1,823	)		—			(9,573	)
Proceeds from stock option exercises		3,639			—			—			—			—			3,639
Transactions with non-controlling interest owners		—			(1,542	)		—			(3,632	)		—			(5,174	)
Intercompany		44,400			36,553			(43,218	)		(37,735	)		—			—
Net cash provided by/(used in) financing activities		40,289			26,257			(43,218	)		(206,089	)		—			(182,761	)
Effect of exchange rate changes on cash		—			—			—			(9,215	)		—			(9,215	)
Net (decrease)/increase in cash and cash equivalents		(157	)		37,625			412			(16,803	)		—			21,077
Cash and cash equivalents, beginning of period		321			1,082			53			98,060			—			99,516
Cash and cash equivalents, end of period	$	164		$	38,707		$	465		$	81,257		$	—		$	120,593