10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 31, 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 1-14229

QUIKSILVER, INC.

(Exact name of registrant as specified in its charter)

Delaware	33-0199426
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)

15202 Graham Street

Huntington Beach, California

92649

(Address of principal executive offices)

(Zip Code)

(714) 889-2200

(Registrant’s telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

The number of shares outstanding of Registrant’s Common Stock, par value $0.01 per share, at February 28, 2014 was 170,413,719.

QUIKSILVER, INC.

FORM 10-Q

INDEX

	Page No.
PART I - FINANCIAL INFORMATION
Item 1.         Financial Statements (Unaudited):
Quiksilver, Inc. Condensed Consolidated Statements of Operations First Quarter (Three Months) Ended January 31, 2014 and 2013		1
Quiksilver, Inc. Condensed Consolidated Statements of Comprehensive Income/Loss First Quarter (Three Months) Ended January 31, 2014 and 2013		1
Quiksilver, Inc. Condensed Consolidated Balance Sheets January 31, 2014 and October 31, 2013		2
Quiksilver, Inc. Condensed Consolidated Statements of Cash Flows First Quarter (Three Months) Ended January 31, 2014 and 2013		3
Quiksilver, Inc. Notes to Condensed Consolidated Financial Statements		4
Item 2.          Management’s Discussion and Analysis of Financial Condition and Results of Operations:
Cautionary Note Regarding Forward-Looking Statements		22
Business Overview		23
Results of Operations		24
First Quarter (Three Months) Ended January  31, 2014 Compared to First Quarter (Three Months) Ended January 31, 2013		25
Financial Position, Capital Resources and Liquidity		29
Critical Accounting Policies		30
New Accounting Pronouncements		32
Item 3.          Quantitative and Qualitative Disclosures About Market Risk		32
Item 4.         Controls and Procedures		33
Part II - OTHER INFORMATION
Item 1A.      Risk Factors		34
Item 6.         Exhibits		44
SIGNATURES		45

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

QUIKSILVER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	First Quarter Ended January 31,
In thousands, except per share amounts	2014			2013
Revenues, net	$	392,612		$	412,189
Cost of goods sold		192,776			202,416
Gross profit		199,836			209,773
Selling, general and administrative expense		203,784			216,339
Asset impairments		883			3,168
Operating loss		(4,831	)		(9,734	)
Interest expense, net		19,420			15,501
Foreign currency loss		2,828			3,065
Loss before (benefit)/provision for income taxes		(27,079	)		(28,300	)
(Benefit)/provision for income taxes		(4,385	)		2,949
Loss from continuing operations		(22,694	)		(31,249	)
Income from discontinued operations, net of tax (includes net gain on sales of businesses of $38,103, and $0, respectively)		37,617			625
Net income/(loss)		14,923			(30,624	)
Less: net loss/(income) attributable to non-controlling interest		464			(505	)
Net income/(loss) attributable to Quiksilver, Inc.	$	15,387		$	(31,129	)
Loss per share from continuing operations attributable to Quiksilver, Inc.	$	(0.13	)	$	(0.19	)
Income per share from discontinued operations attributable to Quiksilver, Inc.	$	0.22		$	0.00
Net income/(loss) per share attributable to Quiksilver, Inc.	$	0.09		$	(0.19	)
Loss per share from continuing operations attributable to Quiksilver, Inc., assuming dilution	$	(0.13	)	$	(0.19	)
Income per share from discontinued operations attributable to Quiksilver, Inc., assuming dilution	$	0.22		$	0.00
Net income/(loss) per share attributable to Quiksilver, Inc., assuming dilution	$	0.09		$	(0.19	)
Weighted average common shares outstanding, basic and diluted		169,747			165,767
Amounts attributable to Quiksilver, Inc.:
Loss from continuing operations	$	(22,333	)	$	(31,568	)
Income from discontinued operations, net of tax		37,720			439
Net income/(loss)	$	15,387		$	(31,129	)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(Unaudited)

	First Quarter Ended January 31,
In thousands	2014			2013
Net income/(loss)	$	14,923		$	(30,624	)
Other comprehensive income/(loss):
Foreign currency translation adjustment		(20,715	)		11,758
Net unrealized gain/(loss) on derivative instruments, net of tax provision/(benefit) of $1,321 (2014) and $(1,628) (2013)		6,293			(3,648	)
Comprehensive income/(loss)		501			(22,514	)
Comprehensive loss/(income) attributable to non-controlling interest		464			(505	)
Comprehensive income/(loss) attributable to Quiksilver, Inc.	$	965		$	(23,019	)

See Notes to Condensed Consolidated Financial Statements

1

QUIKSILVER, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	January 31,			October 31,
In thousands, except share and per share amounts	2014			2013
ASSETS
Current assets:
Cash and cash equivalents	$	69,988		$	57,280
Restricted cash		60,617			—
Trade accounts receivable, less allowances of $61,534 (2014) and $60,912 (2013)		338,723			411,638
Other receivables		27,278			23,306
Inventories, net		360,146			337,715
Deferred income taxes - current		9,563			9,997
Prepaid expenses and other current assets		29,243			24,124
Current portion of assets held for sale		13,676			51,196
Total current assets		909,234			915,256
Fixed assets, less accumulated depreciation and amortization of $239,565 (2014) and $248,860 (2013)		224,914			231,261
Intangible assets, net		134,665			134,596
Goodwill		258,238			261,625
Other assets		50,389			53,287
Assets held for sale, net of current portion		23,715			24,445
Total assets	$	1,601,155		$	1,620,470
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	168,005		$	201,675
Accrued liabilities		119,757			121,545
Current portion of long-term debt		43,424			23,488
Income taxes payable		1,913			3,912
Current portion of assets held for sale		9,075			16,420
Total current liabilities		342,174			367,040
Long-term debt, net of current portion		821,224			807,812
Other long-term liabilities		34,503			36,345
Deferred income taxes long-term		21,590			19,896
Assets held for sale, net of current portion		1,577			1,719
Total liabilities		1,221,068			1,232,812
Equity:
Preferred stock, $0.01 par value, authorized shares - 5,000,000; issued and outstanding shares - none		—			—
Common stock, $0.01 par value, authorized shares - 285,000,000; issued shares - 173,278,919 (2014) and 172,579,182 (2013)		1,733			1,726
Additional paid-in capital		574,081			576,726
Treasury stock, 2,885,200 shares		(6,778	)		(6,778	)
Accumulated deficit		(260,499	)		(275,886	)
Accumulated other comprehensive income		59,496			73,918
Total Quiksilver, Inc. stockholders’ equity		368,033			369,706
Non-controlling interest		12,054			17,952
Total equity		380,087			387,658
Total liabilities and equity	$	1,601,155		$	1,620,470

See Notes to Condensed Consolidated Financial Statements

2

QUIKSILVER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	First Quarter ended January 31,
In thousands	2014			2013
Cash flows from operating activities:
Net income/(loss)	$	14,923		$	(30,624	)
Adjustments to reconcile net income/(loss) to net cash (used in)/provided by operating activities:
Income from discontinued operations		(37,617	)		(625	)
Depreciation and amortization		10,545			11,943
Stock-based compensation		5,063			7,336
Provision for doubtful accounts		1,662			1,248
(Gain)/loss on disposal of fixed assets		(266	)		2
Unrealized foreign currency loss		3,065			2,659
Asset impairments		883			3,168
Non-cash interest expense		914			911
Equity in earnings		352			(11	)
Deferred income taxes		5			1,135
Changes in operating assets and liabilities:
Trade accounts receivable		64,203			85,538
Other receivables		(825	)		3,475
Inventories		(32,663	)		(69,405	)
Prepaid expenses and other current assets		(7,372	)		(11,605	)
Other assets		2,628			3,330
Accounts payable		(28,498	)		16,673
Accrued liabilities and other long-term liabilities		124			(14,012	)
Income taxes payable		(1,242	)		(1,174	)
Cash (used in)/provided by operating activities of continuing operations		(4,116	)		9,962
Cash (used in)/provided by operating activities of discontinued operations		(7,195	)		13,354
Net cash (used in)/provided by operating activities		(11,311	)		23,316
Cash flows from investing activities:
Capital expenditures		(10,558	)		(12,100	)
Changes in restricted cash		(60,617	)		—
Cash used in investing activities of continuing operations		(71,175	)		(12,100	)
Cash provided by/(used in) investing activities of discontinued operations		76,719			(678	)
Net cash provided by/(used in) investing activities		5,544			(12,778	)
Cash flows from financing activities:
Borrowings on lines of credit		—			1,963
Payments on lines of credit		—			(8,042	)
Borrowings on long-term debt		70,966			47,879
Payments on long-term debt		(50,370	)		(23,200	)
Stock option exercises and employee stock purchases		3,138			3,319
Payments of debt issuance costs		(335	)		—
Cash provided by financing activities of continuing operations		23,399			21,919
Cash provided by financing activities of discontinued operations		—			—
Net cash provided by financing activities		23,399			21,919
Effect of exchange rate changes on cash		(4,924	)		(5,919	)
Net increase in cash and cash equivalents		12,708			26,538
Cash and cash equivalents, beginning of period		57,280			41,823
Cash and cash equivalents, end of period	$	69,988		$	68,361
Supplementary cash flow information:
Cash paid during the period for:
Interest	$	12,894		$	13,431
Income taxes	$	6,516		$	2,731
Non-cash investing activities:
Capital expenditures accrued at period end	$	3,453		$	5,750
Non-cash financing activities:
Debt issued for purchase of non-controlling interest	$	17,388		$	—

See Notes to Condensed Consolidated Financial Statements

3

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statement presentation.

Quiksilver, Inc. and its subsidiaries (the “Company”) has included all adjustments, consisting only of normal and recurring adjustments, necessary for a fair presentation of the results of operations for the first quarter (three months) ended January 31, 2014 and 2013. References to any particular fiscal year refer to the year ended October 31 of that year (for example, “fiscal 2014” refers to the year ending October 31, 2014). The condensed consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements and notes for the fiscal year ended October 31, 2013 included in the Company’s most recent Annual Report on Form 10-K. Interim results are not necessarily indicative of results for the full year.

In November 2013, the Company sold Mervin Manufacturing, Inc., its subsidiary that manufactured snowboards and related products under the “Lib Technologies” and “GNU” brands, (“Mervin”). In January 2014, the Company sold substantially all of the assets of Hawk Designs, Inc., its subsidiary that owned and operated the “Hawk” brand, (“Hawk”). Additionally, the Company is pursuing strategic alternatives for its majority stake in the U.K.-based Surfdome Shop, Ltd., a multi-brand e-commerce retailer (“Surfdome”). Each of the Company’s Mervin, Hawk and Surfdome businesses were classified as “held for sale” as of October 31, 2013 and are presented as discontinued operations in the accompanying condensed consolidated financial statements for all periods presented.

2. New Accounting Pronouncements

In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 provides guidance on the presentation of unrecognized tax benefits, reflecting the manner in which an entity would settle, at the reporting date, any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This accounting standard will be effective for the Company beginning November 1, 2014, with early adoption permitted. The Company did early adopt this guidance effective November 1, 2013 and the adoption did not have a material impact on the Company’s consolidated financial position or results of operations.

3. Segment Information

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company operates in the outdoor market of the action sports industry in which the Company designs, markets and distributes apparel, footwear, accessories and related products. The Company currently operates in four segments: the Americas, EMEA, and APAC, each of which sells a full range of the Company’s products, as well as Corporate Operations. The Americas segment, consisting of North, South and Central America, includes revenues primarily from the United States, Canada, Brazil and Mexico. The EMEA segment, consisting of Europe, the Middle East and Africa, includes revenues primarily from continental Europe, the United Kingdom, Russia and South Africa. The APAC segment, consisting of Asia and the Pacific Rim, includes revenues primarily from Australia, Japan, New Zealand, South Korea, Taiwan and Indonesia. Costs that support all segments, including trademark protection, trademark maintenance and licensing functions, are part of Corporate Operations. Corporate Operations also includes sourcing income and gross profit earned from the Company’s licensees.

4

Information related to the Company’s operating segments for the first quarter of fiscal 2014 and 2013 is as follows:

	First Quarter Ended January 31,
In thousands	2014			2013
Revenues, net:
Americas	$	173,165		$	182,636
EMEA		149,397			156,174
APAC		69,875			72,695
Corporate Operations		175			684
	$	392,612		$	412,189
Gross profit:
Americas	$	75,110		$	78,121
EMEA		87,849			91,734
APAC		36,808			39,236
Corporate Operations		69			682
	$	199,836		$	209,773
SG&A expense:
Americas	$	83,692		$	85,187
EMEA		76,712			77,215
APAC		32,615			37,192
Corporate Operations		10,765			16,745
	$	203,784		$	216,339
Asset impairments:
Americas	$	222		$	1,621
EMEA		661			1,547
APAC		—			—
Corporate Operations		—			—
	$	883		$	3,168
Operating (loss)/income:
Americas	$	(8,804	)	$	(8,687	)
EMEA		10,476			12,972
APAC		4,193			2,044
Corporate Operations		(10,696	)		(16,063	)
	$	(4,831	)	$	(9,734	)
	January 31, 2014			October 31, 2013
Identifiable assets:
Americas	$	581,417		$	581,021
EMEA		747,013			744,936
APAC		202,359			222,542
Corporate Operations		70,366			71,971
	$	1,601,155		$	1,620,470

4. Earnings per Share and Stock-Based Compensation

The Company reports basic and diluted earnings per share (“EPS”). Basic EPS is based on the weighted average number of shares outstanding during the period, while diluted EPS additionally includes the dilutive effect of the Company’s outstanding stock options, warrants and shares of restricted stock computed using the treasury stock method.

5

The table below sets forth the reconciliation of the denominator of each net loss per share calculation for the first quarter of fiscal 2014 and 2013:

	First Quarter Ended January 31,
In thousands	2014		2013
Shares used in computing basic net loss per share		169,747		165,767
Dilutive effect of stock options and restricted stock(1)		—		—
Dilutive effect of stock warrants(1)		—		—
Shares used in computing diluted net loss per share		169,747		165,767

⁽¹⁾ For the first quarter of fiscal 2014 and 2013, the shares used in computing diluted net loss per share do not include 3,974,000 and 3,391,000, respectively, of dilutive stock options and shares of restricted stock, nor 19,913,000 and 15,140,000, respectively, of dilutive warrant shares, as the effect is anti-dilutive given the Company’s net loss from continuing operations. For the first quarter of fiscal 2014 and 2013, additional stock options outstanding of 3,856,000 and 7,932,000, respectively, and additional warrant shares outstanding of 5,741,000 and 10,514,000, respectively, were excluded from the calculation of diluted EPS, as their effect would have been anti-dilutive based on the application of the treasury stock method.

The Company accounts for stock-based compensation under the fair value recognition provisions of Accounting Standards Codification (“ASC”) 718, “Compensation – Stock Compensation.” Stock-based compensation expense is included in selling, general and administrative expense (“SG&A”).

The Company has previously granted performance-based restricted stock units and options to certain key employees and executives. Vesting of these awards is contingent upon a required service period and the Company’s achievement of specified common stock price thresholds. In addition, the vesting of a portion of the options can be accelerated based upon the Company’s achievement of specified annual performance targets. The Company believes that the granting of these awards serves to further align the interests of its employees and executives with those of its stockholders. Based on the vesting contingencies in the awards, the Company used a Monte-Carlo simulation in order to determine the grant date fair values of the awards. There were no such awards granted in the first quarter of fiscal 2014. For the first quarter of fiscal 2013, the assumptions used in the Monte-Carlo simulations for the restricted stock units granted included a risk-free interest rate of 0.5%, volatility of 73% to 89%, and a zero dividend yield. The weighted average fair value of the restricted stock units granted in the first quarter of fiscal 2013 was $3.39. There were no performance options granted in the first quarter of fiscal 2014 or 2013.

Activity related to these performance-based equity instruments for the first quarter of fiscal 2014 was as follows:

	Performance Options			Performance Restricted Stock Units
Outstanding, October 31, 2013		688,000			11,675,782
Granted		—			—
Exercised		(12,000	)		—
Canceled		(36,000	)		(30,937	)
Outstanding, January 31, 2014		640,000			11,644,845

As of January 31, 2014, 82,000 of the 640,000 oustanding performance options were exercisable and none of the performance restricted stock units were exercisable. As of January 31, 2014, the Company had unrecognized compensation expense, net of estimated forfeitures, of approximately $0.7 million related to the performance options and approximately $6 million related to restricted stock units. This unrecognized compensation expense is expected to be recognized over a weighted average period of approximately 2 years and 0.4 years, respectively.

For non-performance-based options, the Company uses the Black-Scholes option-pricing model to value compensation expense. Forfeitures are estimated at the date of grant based on historical rates and reduce the compensation expense recognized. The expected term of options

6

granted is derived from historical data on employee exercises. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant. Expected volatility is based on the historical volatility of the Company’s stock. For the first quarter of fiscal 2014 and 2013, there were no options granted. The Company records stock-based compensation expense using the graded vested method over the vesting period, which is generally three years. As of January 31, 2014, the Company had approximately $3 million of unrecognized compensation expense for non-performance-based options expected to be recognized over a weighted average period of approximately 2 years.

Changes in shares under option, excluding performance-based options, for the first quarter of fiscal 2014 were as follows:

Dollar amounts in thousands, except per share amounts	Shares			Weighted Average Price		Weighted Average Life		Aggregate Intrinsic Value
Outstanding, October 31, 2013		8,829,618		$	4.83
Granted		—			—
Exercised		(568,290	)		4.24			$	2,370
Canceled		(626,750	)		8.59
Outstanding, January 31, 2014		7,634,578		$	4.56		5.5	$	21,110
Options exercisable, January 31, 2014		5,633,427		$	4.16		4.8	$	18,344

Changes in non-vested shares under option, excluding performance-based options, for the first quarter of fiscal 2014 were as follows:

	Shares			Weighted Average Grant Date Fair Value
Non-vested, October 31, 2013		2,784,826		$	2.95
Granted		—			—
Vested		(778,675	)		2.28
Canceled		(5,000	)		3.51
Non-vested, January 31, 2014		2,001,151		$	3.19

The Company also grants restricted stock and restricted stock units under its 2013 Performance Incentive Plan. Restricted stock issued under this plan generally vests in three years while restricted stock units issued under this plan generally vest upon the Company’s achievement of a specified common stock price threshold . There were no changes in restricted stock for the first quarter of fiscal 2014.

Compensation expense for restricted stock is determined using the intrinsic value method and forfeitures are estimated at the date of grant based on historical rates and reduce the compensation expense recognized. The Company monitors the probability of meeting the restricted stock performance criteria, if any, and adjusts the amortization period as appropriate. As of January 31, 2014, there had been no acceleration of amortization periods and the Company had approximately $0.3 million of unrecognized compensation expense expected to be recognized over a weighted average period of approximately one year.

5. Restricted Cash

The Company’s restricted cash balance as of January 31, 2014 was $61 million. Certain of the Company’s debt agreements contain restrictions on what can be done with cash received from the sale of assets. The proceeds received from the Company’s disposition of its Mervin and Hawk businesses during the first quarter of fiscal 2014 are subject to these restrictions. These restrictions generally require such cash to be used for either the repayment of indebtedness or capital expenditures.

7

6. Inventories, net

Inventories, net consisted of the following as of the dates indicated:

In thousands	January 31, 2014		October 31, 2013
Raw materials	$	3,993	$	4,725
Work in-process		354		681
Finished goods		355,799		332,309
	$	360,146	$	337,715

7. Intangible Assets and Goodwill

Intangible assets consisted of the following as of the dates indicated:

	January 31, 2014							October 31, 2013
In thousands	Gross Amount		Amorti- zation			Net Book Value		Gross Amount		Amorti- zation			Net Book Value
Non-amortizable trademarks	$	124,088	$	—		$	124,088	$	124,099	$	—		$	124,099
Amortizable trademarks		20,255		(11,870	)		8,385		19,810		(11,534	)		8,276
Amortizable licenses		11,761		(11,761	)		—		12,749		(12,749	)		—
Other amortizable intangibles		8,278		(6,086	)		2,192		8,185		(5,964	)		2,221
	$	164,382	$	(29,717	)	$	134,665	$	164,843	$	(30,247	)	$	134,596

The change in non-amortizable trademarks is due primarily to foreign currency exchange fluctuations. Other amortizable intangibles primarily include non-compete agreements, patents and customer relationships. These amortizable intangibles are amortized on a straight-line basis over their estimated useful lives. Certain trademarks will continue to be amortized by the Company using estimated useful lives of 10 to 25 years with no residual values. Intangible amortization expense for each of the first quarters of fiscal 2014 and 2013 was approximately $0.5 million. Annual amortization expense is estimated to be approximately $2 million through fiscal 2017 and approximately $1 million in fiscal 2018 and 2019.

A summary of goodwill by segment, and in total, and changes in the carrying amounts, as of the dates indicated are as follows:

In thousands	Americas			EMEA			APAC			Consolidated
Gross goodwill	$	75,974		$	174,869		$	135,752		$	386,595
Accumulated impairment losses		—			—			(129,545	)		(129,545	)
Net goodwill at Nov. 1, 2012	$	75,974		$	174,869		$	6,207		$	257,050
Foreign currency translation and other		(1,031	)		5,606			—			4,575
Gross goodwill		74,943			180,475			135,752			391,170
Accumulated impairment losses		—			—			(129,545	)		(129,545	)
Net goodwill at Oct. 31, 2013	$	74,943		$	180,475		$	6,207		$	261,625
Foreign currency translation and other		(517	)		(2,870	)		—			(3,387	)
Gross goodwill		74,426			177,605			135,752			387,783
Accumulated impairment losses		—			—			(129,545	)		(129,545	)
Net goodwill at Jan. 31, 2014	$	74,426		$	177,605		$	6,207		$	258,238

The table above excludes goodwill recorded from our fiscal 2012 acquisition of Surfdome that has been reclassified to assets held for sale in our consolidated balance sheets. For the first quarter of fiscal 2014, goodwill fluctuated due to the effect of changes in foreign currency exchange rates.

8

8. Income Taxes

Each reporting period, the Company evaluates the realizability of all of its deferred tax assets in each tax jurisdiction. As of January 31, 2014, the Company continued to maintain a full valuation allowance against its net deferred tax assets in certain jurisdictions in each of its four operating segments due to sustained taxable losses. As a result of the valuation allowances recorded, no tax benefits have been recognized for losses incurred in those tax jurisdictions.

The Company’s sale of the Mervin and Hawk businesses generated income tax expense of approximately $10 million within discontinued operations during the first quarter of fiscal 2014. However, as the Company does not expect to pay income tax after application of available loss carryforwards, an offsetting income tax benefit was recognized within continuing operations. Before this tax benefit, the Company generated income tax expense in the first quarter of fiscal 2014 and 2013 due to being unable to record tax benefits against the losses in certain jurisdictions where we have previously recorded valuation allowances.

As of January 31, 2014, the Company’s liability for uncertain tax positions was approximately $12 million resulting from unrecognized tax benefits, excluding interest and penalties.

If the Company’s positions are favorably sustained by the relevant taxing authority, approximately $11 million, excluding interest and penalties, of uncertain tax position liabilities would favorably impact the Company’s effective tax rate in future periods.

During the next 12 months, it is reasonably possible that the Company’s liability for uncertain tax positions may change by a significant amount as a result of the resolution or payment of uncertain tax positions. The Company believes the outcomes which are reasonably possible within the next 12 months range from a reduction of the liability for unrecognized tax benefits of $9 million to an increase of the liability of $2 million, excluding penalties and interest for its existing tax positions.

9. Restructuring Charges

In connection with the globalization of its organizational structure and core processes, as well as its overall cost reduction efforts, the Company formulated the Fiscal 2013 Profit Improvement Plan (the “2013 Plan”). The 2013 Plan covers the global operations of the Company, and as the Company continues to evaluate its structure, processes and costs, additional charges may be incurred in the future under the 2013 Plan that are not yet determined. The 2013 Plan is, in many respects, a continuation and acceleration of the Company’s Fiscal 2011 Cost Reduction Plan (the “2011 Plan”). The Company will no longer incur any charges under the 2011 Plan, but will continue to make cash payments on amounts previously accrued under the 2011 Plan. Amounts charged to expense under the 2013 Plan and 2011 Plan were primarily recorded in SG&A with a small portion recorded in cost of goods sold (“COGS”), in the Company’s consolidated statements of operations.

Activity and liability balances recorded as part of the 2013 Plan and 2011 Plan were as follows:

In thousands	Workforce			Facility & Other			Total
Balance, November 1, 2012	$	5,335		$	6,856		$	12,191
Charged to expense		22,671			5,838			28,509
Cash payments		(15,847	)		(5,163	)		(21,010	)
Adjustments		—			(592	)		(592	)
Balance, October 31, 2013	$	12,159		$	6,939		$	19,098
Charged to expense		2,553			570			3,123
Cash payments		(5,925	)		(514	)		(6,439	)
Balance, January 31, 2014	$	8,787		$	6,995		$	15,782

Of the amounts charged to expense during the first quarter of fiscal 2014, the majority related to severance charges within the Americas segment.

9

In addition to the restructuring charges noted above, the Company also recorded approximately $2 million of additional expenses within SG&A during the first quarter of fiscal 2014 related to certain non-core brands that have been discontinued, which are not reflected in the table above. Additionally, the Company recorded severance charges of approximately $3 million within SG&A during the first quarter of fiscal 2013 which were unrelated to the 2013 Plan or the 2011 Plan.

10. Debt

A summary of borrowings under lines of credit and long-term debt as of the dates indicated is as follows:

In thousands	January 31, 2014		October 31, 2013
EMEA credit facilities	$	25,730	$	21,594
2017 Notes		272,220		274,952
ABL Credit Facility		42,260		27,408
2018 Notes		278,664		278,612
2020 Notes		222,357		222,285
Capital lease obligations and other borrowings		23,417		6,449
	$	864,648	$	831,300

As of January 31, 2014, the Company’s credit facilities allowed for total cash borrowings and letters of credit of $272 million. The total maximum borrowings and actual availability fluctuate with the amount of assets comprising the borrowing base under certain of the credit facilities. At January 31, 2014, the Company had a total of $68 million of direct borrowings and $56 million in letters of credit outstanding. As of January 31, 2014, the effective availability for borrowings remaining under the Company’s credit facilities was $92 million, $53 million of which could also be used for letters of credit in the United States and APAC. In addition to the $92 million of effective availability for borrowings, the Company also had $56 million in additional capacity for letters of credit in EMEA as of January 31, 2014. Many of the Company’s debt agreements contain customary default provisions and restrictive covenants. The Company is in compliance with such covenants.

As of January 31, 2014, the Company’s other borrowings include approximately $17 million of notes payable, approximately $16 million of which is due during fiscal 2014, issued to the former minority interest owners of the Company’s Brazil and Mexico subsidiaries. The Company acquired the remaining minority interests of each of these subsidiaries in November 2013.

The estimated fair values of the Company’s borrowings under lines of credit and long-term debt as of January 31, 2014 was $937 million, compared to a carrying value of $865 million. The fair value of the Company’s long-term debt is calculated based on the market price of the Company’s publicly traded 2020 Notes, the trading prices of the Company’s 2018 Notes and 2017 Notes (all Level 1 inputs) and the carrying values of the Company’s variable rate debt obligations.

The carrying value of the Company’s trade accounts receivable and accounts payable approximates fair value due to their short-term nature. The fair value of fixed assets is determined using a discounted cash flow model which requires Level 3 inputs.

11. Derivative Financial Instruments

The Company is exposed to gains and losses resulting from fluctuations in foreign currency exchange rates relating to certain sales, royalty income and product purchases of its international subsidiaries that are denominated in currencies other than their functional currencies. The Company is also exposed to foreign currency gains and losses resulting from domestic transactions that are not denominated in U.S. dollars. Furthermore, the Company is exposed to gains and losses resulting from the effect that fluctuations in foreign currency exchange rates have on the reported results in the Company’s consolidated financial statements due to the translation of the operating results and financial position of the Company’s international

10

subsidiaries. As part of its overall strategy to manage the level of exposure to the risk of fluctuations in foreign currency exchange rates, the Company uses various foreign currency exchange contracts and intercompany loans.

The Company accounts for all of its cash flow hedges under ASC 815, “Derivatives and Hedging,” which requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheet. In accordance with ASC 815, the Company designates forward contracts as cash flow hedges of forecasted purchases of commodities.

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. As of January 31, 2014, the Company was hedging forecasted transactions expected to occur through June 2015. Assuming January 31, 2014 exchange rates remain constant, $2 million of gains, net of tax, related to hedges of these transactions are expected to be reclassified into earnings over the next 17 months.

On the date the Company enters into a derivative contract, management designates the derivative as a hedge of the identified exposure. Before entering into various hedge transactions, the Company formally documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy. In this documentation, the Company identifies the asset, liability, firm commitment, or forecasted transaction that has been designated as a hedged item and indicates how the hedging instrument is expected to hedge the risks related to the hedged item. The Company formally measures effectiveness of its hedging relationships both at the hedge inception and on an ongoing basis in accordance with its risk management policy. The Company would discontinue hedge accounting prospectively (i) if management determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item, (ii) when the derivative expires or is sold, terminated, or exercised, (iii) if it becomes probable that the forecasted transaction being hedged by the derivative will not occur, (iv) if a hedged firm commitment no longer meets the definition of a firm commitment, or (v) if management determines that designation of the derivative as a hedge instrument is no longer appropriate. As a result of the expiration, sale, termination, or exercise of derivative contracts, the Company reclassified into earnings a net loss of $0.2 million for the quarter ended January 31, 2014, and a net gain of $1 million for the quarter ended January 31, 2013.

The Company enters into forward exchange and other derivative contracts with major banks and is exposed to exchange rate losses in the event of nonperformance by these banks. The Company anticipates, however, that these banks will be able to fully satisfy their obligations under the contracts. Accordingly, the Company does not require collateral or other security to support the contracts.

As of January 31, 2014, the Company had the following outstanding derivative contracts that were entered into to hedge forecasted purchases:

In thousands	Commodity		Notional Amount		Maturity		Fair Value
United States dollars		Inventory	$	250,613		Feb 2014 –June 2015	$	4,473

11

ASC 820, “Fair Value Measurements and Disclosures,” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three levels. These levels are:

• Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 assets and liabilities include debt and equity securities traded in an active exchange market, as well as U.S. Treasury securities.

• Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3 – Valuation is determined using model-based techniques with significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of third-party pricing services, option-pricing models, discounted cash flow models and similar techniques.

The Company’s derivative assets and liabilities include foreign exchange derivatives that are measured at fair value using observable market inputs such as forward rates, interest rates, the Company’s credit risk and the Company’s counterparties’ credit risks. Based on these inputs, the Company’s derivative assets and liabilities are classified within Level 2 of the valuation hierarchy.

The following tables reflect the fair values of assets and liabilities measured and recognized at fair value on a recurring basis on the accompanying condensed consolidated balance sheets as of the dates indicated:

	Fair Value Measurements Using							Assets/(Liabilities)
In thousands	Level 1		Level 2			Level 3		At Fair Value
January 31, 2014:
Derivative assets:
Other receivables	$	—	$	4,026		$	—	$	4,026
Other assets		—		521			—		521
Derivative liabilities:
Accrued liabilities		—		(74	)		—		(74	)
Total fair value	$	—	$	4,473		$	—	$	4,473
October 31, 2013:
Derivative assets:
Other receivables	$	—	$	2,026		$	—	$	2,026
Other assets		—		382			—		382
Derivative liabilities:
Accrued liabilities		—		(3,313	)		—		(3,313	)
Total fair value	$	—	$	(905	)	$	—	$	(905	)

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12. Stockholders’ Equity and Non-controlling Interest

The following tables summarize the changes in equity attributable to Quiksilver, Inc. and the non-controlling interests of its consolidated subsidiaries:

In thousands First quarter ended January 31, 2014:	Attributable to Quiksilver, Inc.			Non- controlling Interest			Total Stockholders’ Equity
Balance, October 31, 2013	$	369,706		$	17,952		$	387,658
Stock compensation expense		5,063			—			5,063
Exercise of stock options		2,465			—			2,465
Employee stock purchase plan		673			—			673
Transactions with non-controlling interest holders		(10,839	)		(5,434	)		(16,273	)
Net income and other comprehensive income/(loss)		965			(464	)		501
Balance, January 31, 2014	$	368,033		$	12,054		$	380,087
First quarter ended January 31, 2013:
Balance, October 31, 2012	$	583,310		$	18,926		$	602,236
Stock compensation expense		7,336			—			7,336
Exercise of stock options		2,761			—			2,761
Employee stock purchase plan		557			—			557
Transactions with non-controlling interest holders		(44	)		44			—
Net loss and other comprehensive (loss)/income		(23,019	)		505			(22,514	)
Balance, January 31, 2013	$	570,901		$	19,475		$	590,376

13. Litigation, Indemnities and Guarantees

As part of its global operations, the Company may be involved in legal claims involving trademarks, intellectual property, licensing, employment matters, compliance, contracts and other matters incidental to its business. The Company believes the resolution of any such matter, individually and in aggregate, currently threatened or pending will not have a material adverse effect on its financial condition, results of operations or liquidity.

During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These include (i) intellectual property indemnities to the Company’s customers and licensees in connection with the use, sale and/or license of the Company’s products, (ii) indemnities to various lessors in connection with facility leases for certain claims arising from such facilities or leases, (iii) indemnities to vendors and service providers pertaining to claims based on the negligence or willful misconduct of the Company, and (iv) indemnities involving the accuracy of representations and warranties in certain contracts. The duration of these indemnities, commitments and guarantees varies and, in certain cases, may be indefinite. The majority of these indemnities, commitments and guarantees do not provide for any limitation of the maximum potential for future payments the Company could be obligated to make. The Company has not recorded any liability for these indemnities, commitments and guarantees in the accompanying consolidated balance sheets.

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14. Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income include changes in fair value of derivative instruments qualifying as cash flow hedges and foreign currency translation adjustments. The components of accumulated other comprehensive income, net of tax, are as follows:

In thousands First quarter ended January 31, 2014:	Derivative Instruments			Foreign Currency Adjustments			Total
Balance, October 31, 2013	$	(4,591	)	$	78,509		$	73,918
Net losses reclassified to COGS		186			—			186
Changes in fair value, net of tax		6,107			(20,715	)		(14,608	)
Balance, January 31, 2014	$	1,702		$	57,794		$	59,496
First quarter ended January 31, 2013:
Balance, October 31, 2012	$	5,756		$	80,656		$	86,412
Net gains reclassified to COGS		(1,135	)		—			(1,135	)
Net losses reclassified to foreign currency loss		86			—			86
Changes in fair value, net of tax		(2,599	)		11,758			9,159
Balance, January 31, 2013	$	2,108		$	92,414		$	94,522

15. Discontinued Operations

One of the elements of the Company’s multi-year Profit Improvement Plan involves divesting or exiting certain non-core businesses. In November 2013, the Company completed the sale of Mervin for $58 million, subject to a final working capital adjustment. In January 2014, the Company completed the sale of substantially all of the assets of Hawk for $19 million. These transactions resulted in an after-tax gain of approximately $38 million during the first quarter of fiscal 2014, which is included in income from discontinued operations in the table below. Additionally, the Company continues to pursue strategic alternatives for Surfdome. Each of the Company’s Mervin, Hawk and Surfdome businesses were classified as “held for sale” as of October 31, 2013 and are presented as discontinued operations in the accompanying consolidated financial statements for all periods presented. The operating results of discontinued operations for the first quarters of fiscal 2014 and 2013 are as follows:

	First Quarter Ended January 31,
In thousands	2014		2013
Revenues, net	$	20,162	$	18,829
Income before income taxes		48,094		900
Provision for income taxes		10,477		275
Income from discontinued operations		37,617		625
Less: net loss/(income) attributable to non- controlling interest		103		(186	)
Income from discontinued operations attributable to Quiksilver, Inc.	$	37,720	$	439

14

The components of major assets and liabilities held for sale at January 31, 2014 and October 31, 2013 are as follows:

	January 31,		October 31,
In thousands	2014		2013
Assets:
Receivables, net	$	369	$	24,229
Inventories Inventories		12,865		25,915
Goodwill		16,821		16,109
Other		7,336		9,388
	$	37,391	$	75,641
Liabilities:
Accounts payable	$	6,706	$	13,039
Accrued liabilities		2,369		3,381
Other		1,577		1,719
	$	10,652	$	18,139

Total assets held for sale as of January 31, 2014 and October 31, 2013 by geographical segment was as follows:

	January 31,		October 31,
In thousands	2014		2013
Americas	$	—	$	27,398
EMEA		37,391		47,588
APAC		—		655
	$	37,391	$	75,641

16. Condensed Consolidating Financial Information

In July 2013, the Company issued $225 million aggregate principal amount of its 2020 Notes. These notes were issued in a private offering that was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Secruities Act”). They were offered within the United States only to qualified institutional buyers in accordance with Rule 144A under the Securities Act, and outside of the United States only to non-U.S. investors in accordance with Regulation S under the Securities Act. In November 2013, these notes were exchanged for publicly registered notes with identical terms. Obligations under the Company’s 2020 Notes are fully and unconditionally guaranteed by certain of its existing 100% owned domestic subsidiaries.

In November 2013, the Company sold Mervin, a guarantor subsidiary, and in January 2014, the Company sold substantially all of the assets of Hawk, also a guarantor subsidiary. These subsidiaries continue to be presented in the “Guarantor Subsidiaries” column in the following condensed consolidating financial information where applicable. See note 15, “Discontinued Operations,” for further discussion regarding the disposition of these businesses.

The Company is required to present condensed consolidating financial information for Quiksilver, Inc. and its domestic subsidiaries within the notes to the condensed consolidated financial statements in accordance with the criteria established for parent companies in the SEC’s Regulation S-X, Rule 3-10(f). The following condensed consolidating financial information presents the results of operations, financial position and cash flows of Quiksilver Inc., QS Wholesale, Inc., the 100% owned guarantor subsidiaries, the non-guarantor subsidiaries and the eliminations necessary to arrive at the information for the Company on a consolidated basis as of January 31, 2014 and October 31, 2013 and for the first quarters of fiscal 2014 and 2013. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. The Company has applied the estimated consolidated annual effective income tax rate to both the guarantor and non-guarantor subsidiaries, adjusting for any discrete items, for interim reporting purposes. In the Company’s consolidated financial statements for the fiscal year ending October 31, 2014, management will apply the actual income tax rates to both the guarantor and non-guarantor subsidiaries. These interim tax rates may differ from the actual annual effective income tax rates for both the guarantor and non-guarantor subsidiaries.

15

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Operations

First Quarter Ended January 31, 2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	84,004		$	97,975		$	269,770		$	(59,253	)	$	392,612
Cost of goods sold		—			50,268			67,704			119,784			(44,980	)		192,776
Gross profit		116			33,736			30,271			149,986			(14,273	)		199,836
Selling, general and administrative expense		9,025			55,966			22,668			121,057			(4,932	)		203,784
Asset impairments		—			—			222			661			—			883
Operating (loss)/income		(8,909	)		(22,230	)		7,381			28,268			(9,341	)		(4,831	)
Interest expense, net		11,600			1,010			—			6,810			—			19,420
Foreign currency loss/(gain)		36			(10	)		(224	)		3,026			—			2,828
Equity in earnings		(35,932	)		74			—			—			35,858			—
Income/(loss) before (benefit)/provision for income taxes		15,387			(23,304	)		7,605			18,432			(45,199	)		(27,079	)
(Benefit)/provision for income taxes		—			(6,169	)		(3,945	)		5,729			—			(4,385	)
Income/(loss) from continuing operations		15,387			(17,135	)		11,550			12,703			(45,199	)		(22,694	)
Income from discontinued operations		—			23,922			13,531			164			—			37,617
Net income		15,387			6,787			25,081			12,867			(45,199	)		14,923
Net loss attributable to non-controlling interest		—			—			—			464			—			464
Net income attributable to Quiksilver, Inc.		15,387			6,787			25,081			13,331			(45,199	)		15,387
Other comprehensive loss		(14,422	)		—			—			(14,422	)		14,422			(14,422	)
Comprehensive income/(loss) attributable to Quiksilver, Inc.	$	965		$	6,787		$	25,081		$	(1,091	)	$	(30,777	)	$	965

16

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Operations

First Quarter Ended January 31, 2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	88,519		$	110,462		$	281,846		$	(68,754	)	$	412,189
Cost of goods sold		—			52,603			87,298			125,699			(63,184	)		202,416
Gross profit		116			35,916			23,164			156,147			(5,570	)		209,773
Selling, general and administrative expense		15,975			35,959			35,342			135,867			(6,804	)		216,339
Asset impairments		—			—			1,335			1,833			—			3,168
Operating (loss)/income		(15,859	)		(43	)		(13,513	)		18,447			1,234			(9,734	)
Interest expense, net		7,269			1,469			—			6,763			—			15,501
Foreign currency loss		154			14			64			2,833			—			3,065
Equity in earnings		7,847			(204	)		—			—			(7,643	)		—
(Loss)/income before (benefit)/provision for income taxes		(31,129	)		(1,322	)		(13,577	)		8,851			8,877			(28,300	)
(Benefit)/provision for income taxes		—			(1,187	)		90			4,046			—			2,949
(Loss)/income from continuing operations		(31,129	)		(135	)		(13,667	)		4,805			8,877			(31,249	)
(Loss)/income from discontinued operations		—			—			(170	)		769			26			625
Net (loss)/income		(31,129	)		(135	)		(13,837	)		5,574			8,903			(30,624	)
Net income attributable to non-controlling interest		—			—			—			(505	)		—			(505	)
Net (loss)/income attributable to Quiksilver, Inc.		(31,129	)		(135	)		(13,837	)		5,069			8,903			(31,129	)
Other comprehensive income		8,110			—			—			8,110			(8,110	)		8,110
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(23,019	)	$	(135	)	$	(13,837	)	$	13,179		$	793		$	(23,019	)

17

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Balance Sheet

January 31, 2014

In thousands	Quiksilver, Inc.		QS Wholesale, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	34	$	7,258	$	(1,939	)	$	64,635	$	—		$	69,988
Restricted cash		—		60,214		—			403		—			60,617
Trade accounts receivable, net		—		70,576		35,269			232,878		—			338,723
Other receivables		58		2,746		3,715			20,759		—			27,278
Inventories, net		—		52,408		101,772			236,575		(30,609	)		360,146
Deferred income taxes - current		—		24,624		—			6,048		(21,109	)		9,563
Prepaid expenses and other current assets		2,433		5,914		3,614			17,282		—			29,243
Intercompany balances		—		176,329		—			—		(176,329	)		—
Current portion of assets held for sale		—		—		—			13,676		—			13,676
Total current assets		2,525		400,069		142,431			592,256		(228,047	)		909,234
Fixed assets, net		21,782		33,330		21,750			148,052		—			224,914
Intangible assets, net		4,962		44,362		1,121			84,220		—			134,665
Goodwill		—		103,880		7,676			146,682		—			258,238
Other assets		8,135		5,546		992			35,716		—			50,389
Deferred income taxes long-term		19,786		—		—			1,716		(21,502	)		—
Investment in subsidiaries		985,746		5,960		—			—		(991,706	)		—
Assets held for sale, net of current portion		—		—		—			23,715		—			23,715
Total assets	$	1,042,936	$	593,147	$	173,970		$	1,032,357	$	(1,241,255	)	$	1,601,155
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,524	$	38,976	$	20,565		$	106,940	$	—		$	168,005
Accrued liabilities		30,232		15,994		6,665			66,866		—			119,757
Current portion of long-term debt		—		15,798		—			27,626		—			43,424
Income taxes payable		—		1,185		—			728		—			1,913
Deferred income taxes - current		20,365		—		744			—		(21,109	)		—
Intercompany balances		121,442		—		30,302			24,585		(176,329	)		—
Current portion of assets held for sale		—		—		—			9,075		—			9,075
Total current liabilities		173,563		71,953		58,276			235,820		(197,438	)		342,174
Long-term debt, net of current portion		501,021		23,590		—			296,613		—			821,224
Other long-term liabilities		319		5,714		8,456			20,014		—			34,503
Deferred income taxes long-term		—		41,039		2,053			—		(21,502	)		21,590
Assets held for sale, net of current portion		—		—		—			1,577		—			1,577
Total liabilities		674,903		142,296		68,785			554,024		(218,940	)		1,221,068
Stockholders’/invested equity		368,033		450,851		105,185			466,279		(1,022,315	)		368,033
Non-controlling interest		—		—		—			12,054		—			12,054
Total liabilities and equity	$	1,042,936	$	593,147	$	173,970		$	1,032,357	$	(1,241,255	)	$	1,601,155

18

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Balance Sheet

October 31, 2013

In thousands	Quiksilver, Inc.		QS Wholesale, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	35	$	3,733	$	296	$	53,216	$	—		$	57,280
Trade accounts receivable, net		—		83,991		48,230		279,417		—			411,638
Other receivables		19		5,613		2,007		15,667		—			23,306
Inventories, net		—		43,405		93,074		224,695		(23,459	)		337,715
Deferred income taxes - current		—		24,624		—		6,482		(21,109	)		9,997
Prepaid expenses and other current assets		3,372		3,271		3,752		13,729		—			24,124
Intercompany balances		—		173,547		—		—		(173,547	)		—
Current portion of assets held for sale		—		—		26,051		25,475		(330	)		51,196
Total current assets		3,426		338,184		173,410		618,681		(218,445	)		915,256
Fixed assets, net		21,378		35,152		21,816		152,915		—			231,261
Intangible assets, net		4,487		44,596		1,154		84,359		—			134,596
Goodwill		—		103,880		7,675		150,070		—			261,625
Other assets		8,025		5,654		1,096		38,512		—			53,287
Deferred income taxes long-term		21,085		—		—		2,111		(23,196	)		—
Investment in subsidiaries		949,814		8,795		—		—		(958,609	)		—
Assets held for sale, net of current portion		—		—		1,676		22,769		—			24,445
Total assets	$	1,008,215	$	536,261	$	206,827	$	1,069,417	$	(1,200,250	)	$	1,620,470
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	4,222	$	51,283	$	35,910	$	110,260	$	—		$	201,675
Accrued liabilities		17,900		9,921		6,929		86,795		—			121,545
Current portion of long-term debt		—		—		—		23,488		—			23,488
Income taxes payable		—		121		—		3,791		—			3,912
Deferred income taxes - current		20,365		—		744		—		(21,109	)		—
Intercompany balances		92,815		—		47,424		33,308		(173,547	)		—
Current portion of assets held for sale		689		—		3,773		11,958		—			16,420
Total current liabilities		135,991		61,325		94,780		269,600		(194,656	)		367,040
Long-term debt, net of current portion		500,896		—		—		306,916		—			807,812
Other long-term liabilities		1,622		6,012		8,946		19,765		—			36,345
Deferred income taxes long-term		—		41,039		2,053		—		(23,196	)		19,896
Assets held for sale, net of current portion		—		—		187		1,532		—			1,719
Total liabilities		638,509		108,376		105,966		597,813		(217,852	)		1,232,812
Stockholders’/invested equity		369,706		427,885		100,861		453,652		(982,398	)		369,706
Non-controlling interest		—		—		—		17,952		—			17,952
Total liabilities and equity	$	1,008,215	$	536,261	$	206,827	$	1,069,417	$	(1,200,250	)	$	1,620,470

19

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Cash Flows

First Quarter Ended January 31, 2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	15,387		$	6,787		$	25,081		$	12,867		$	(45,199	)	$	14,923
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Income from discontinued operations		—			(23,922	)		(13,531	)		(164	)		—			(37,617	)
Depreciation and Amortization		585			2,589			1,330			6,041			—			10,545
Stock-based compensation		5,063			—			—			—			—			5,063
Provision for doubtful accounts		—			1,088			(209	)		783			—			1,662
Asset impairments		—			—			222			661			—			883
Equity in earnings		(35,932	)		74			—			352			35,858			352
Non-cash interest expense		462			239			—			213			—			914
Deferred income taxes		—			—			—			5			—			5
Other adjustments to reconcile net income		35			(9	)		(219	)		2,992			—			2,799
Changes in operating assets and liabilities:
Trade accounts receivable		—			12,327			13,169			38,707			—			64,203
Inventories		—			(9,271	)		(2,884	)		(29,849	)		9,341			(32,663	)
Other operating assets and liabilities		12,141			(11,998	)		(16,366	)		(18,962	)		—			(35,185	)
Cash (used in)/provided by operating activities of continuing operations		(2,259	)		(22,096	)		6,593			13,646			—			(4,116	)
Cash used in operating activities of discontinued operations		—			—			(1,861	)		(5,334	)		—			(7,195	)
Net cash (used in)/provided by operating activities		(2,259	)		(22,096	)		4,732			8,312			—			(11,311	)
Cash flows from investing activities:
Capital expenditures		(1,970	)		(2,397	)		(1,299	)		(4,892	)		—			(10,558	)
Changes in restricted cash		—			(60,214	)		—			(403	)		—			(60,617	)
Cash used in investing activities of continuing operations		(1,970	)		(62,611	)		(1,299	)		(5,295	)		—			(71,175	)
Cash provided by/(used in) investing activities of discontinued operations		—			58,060			18,991			(332	)		—			76,719
Net cash (used in)/provided by investing activities		(1,970	)		(4,551	)		17,692			(5,627	)		—			5,544
Cash flows from financing activities:
Borrowings on long-term debt		—			40,500			—			30,466			—			70,966
Payments on long-term debt		—			(18,500	)		—			(31,870	)		—			(50,370	)
Stock option exercises and employee stock purchases		3,138			—			—			—			—			3,138
Payments of debt issuance costs		(373	)		38			—			—			—			(335	)
Intercompany		1,463			8,134			(24,659	)		15,062			—			—
Cash provided by/(used in) financing activities of continuing operations		4,228			30,172			(24,659	)		13,658			—			23,399
Cash provided by financing activities of discontinued operations		—			—			—			—			—			—
Net cash provided by/(used in) financing activities		4,228			30,172			(24,659	)		13,658			—			23,399
Effect of exchange rate changes on cash		—			—			—			(4,924	)		—			(4,924	)
Net (decrease)/increase in cash and cash equivalents		(1	)		3,525			(2,235	)		11,419			—			12,708
Cash and cash equivalents, beginning of period		35			3,733			296			53,216			—			57,280
Cash and cash equivalents, end of period	$	34		$	7,258		$	(1,939	)	$	64,635		$	—		$	69,988

20

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Cash Flows

First Quarter Ended January 31, 2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(31,129	)	$	(135	)	$	(13,837	)	$	5,574		$	8,903		$	(30,624	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Loss/(income) from discontinued operations		—			—			170			(769	)		(26	)		(625	)
Depreciation and Amortization		445			2,789			1,220			7,489			—			11,943
Stock-based compensation		7,336			—			—			—			—			7,336
Provision for doubtful accounts		—			226			(1,427	)		2,449			—			1,248
Asset impairments		—			—			1,335			1,833			—			3,168
Equity in earnings		7,847			(204	)		—			(11	)		(7,643	)		(11	)
Non-cash interest expense		392			330			—			189			—			911
Deferred income taxes		—			—			—			1,135			—			1,135
Other adjustments to reconcile net (loss)/income		154			—			(105	)		2,612			—			2,661
Changes in operating assets and liabilities:
Trade accounts receivable		—			14,023			35,553			35,962			—			85,538
Inventories		—			(19,663	)		(6,439	)		(41,888	)		(1,415	)		(69,405	)
Other operating assets and liabilities		1,707			7,235			(13,751	)		1,496			—			(3,313	)
Cash (used in)/provided by operating activities of continuing operations		(13,248	)		4,601			2,719			16,071			(181	)		9,962
Cash provided by operating activities of discontinued operations		—			—			8,512			4,661			181			13,354
Net cash (used in)/provided by operating activities		(13,248	)		4,601			11,231			20,732			—			23,316
Cash flows from investing activities:
Capital expenditures		(1,708	)		(1,517	)		(1,547	)		(7,328	)		—			(12,100	)
Cash used in investing activities of continuing operations		(1,708	)		(1,517	)		(1,547	)		(7,328	)		—			(12,100	)
Cash used in investing activities of discontinued operations		—			—			(33	)		(645	)		—			(678	)
Net cash used in investing activities		(1,708	)		(1,517	)		(1,580	)		(7,973	)		—			(12,778	)
Cash flows from financing activities:
Borrowings on lines of credit		—			—			—			1,963			—			1,963
Payments on lines of credit		—			—			—			(8,042	)		—			(8,042	)
Borrowings on long-term debt		—			23,000			—			24,879			—			47,879
Payments on long-term debt		—			(23,200	)		—			—			—			(23,200	)
Stock option exercises and employee stock purchases		3,319			—			—			—			—			3,319
Intercompany		11,732			(636	)		(11,742	)		646			—			—
Cash provided by/(used in) financing activities of continuing operations		15,051			(836	)		(11,742	)		19,446			—			21,919
Cash provided by financing activities of discontinued operations		—			—			—			—			—			—
Net cash provided by/(used in) financing activities		15,051			(836	)		(11,742	)		19,446			—			21,919
Effect of exchange rate changes on cash		—			—			—			(5,919	)		—			(5,919	)
Net increase/(decrease) in cash and cash equivalents		95			2,248			(2,091	)		26,286			—			26,538
Cash and cash equivalents, beginning of period		324			1,966			(1,831	)		41,364			—			41,823
Cash and cash equivalents, end of period	$	419		$	4,214		$	(3,922	)	$	67,650		$	—		$	68,361

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Unless the context indicates otherwise, when we refer to “Quiksilver”, “we”, “us”, “our”, or the “Company” in this Form 10-Q, we are referring to Quiksilver, Inc. and its subsidiaries on a consolidated basis. The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and related notes thereto contained elsewhere in this report. The information contained in this Quarterly Report on Form 10-Q is not a complete description of our business or the risks associated with an investment in our securities. We urge you to carefully review and consider the various disclosures made by us in this report and in our other reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended October 31, 2013 and subsequent reports on Form 8-K, which discuss our business in greater detail. The section entitled “Risk Factors” set forth in Item 1A of this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K, and similar disclosures in our other SEC filings, discuss some of the important risk factors that may affect our business, results of operations and financial condition. You should carefully consider those risks, in addition to the information in this report and in our other filings with the SEC, before deciding to invest in, or maintain your investment in, our common stock or senior notes.

Cautionary Note Regarding Forward-Looking Statements

This report on Form 10-Q contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are often, but not always, identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “outlook,” “strategy,” “future,” “likely,” “may,” “should,” “could,” “will” and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements we make regarding:

• current or future volatility in certain economies, credit markets and future market conditions; and

• our belief that we have sufficient liquidity to fund our business operations during the next twelve months; and

• our expectations regarding the implementation of our multi-year profit improvement plan.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:

• our ability to execute our mission and strategies;

• our ability to achieve the financial results that we anticipate;

• our ability to successfully implement our multi-year Profit Improvement Plan;

• our ability to effectively transition our supply chain and certain other business processes to global scope;

• future expenditures for capital projects, including the ongoing implementation of our global enterprise-wide reporting system;

• increases in production costs and raw materials and disruptions in the supply chains for these materials;

• deterioration of global economic conditions and credit and capital markets;

• potential non-cash asset impairment charges for goodwill, intangible assets or other fixed assets;

• our ability to continue to maintain our brand image and reputation;

• foreign currency exchange rate fluctuations;

• interest rate fluctuations;

22

• our ability to remain compliant with our debt covenants;

• payments due on contractual commitments and other debt obligations;

• changes in political, social and economic conditions and local regulations, particularly in Europe and Asia;

• the occurrence of hostilities or catastrophic events;

• changes in customer demand; and

• disruptions to, or breaches of, our computer systems and software, as well as natural events such as severe weather, fires, floods and earthquakes or man-made or other disruptions of our operating systems, structures or equipment.

Any forward-looking statement made by us in this report is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Business Overview

Quiksilver is one of the world’s leading outdoor sports lifestyle companies. We design, develop and distribute branded apparel, footwear, accessories and related products. Our brands, inspired by the passion for outdoor action sports, represent a casual lifestyle for young-minded people who connect with our boardriding culture and heritage. Our three core brands, Quiksilver, Roxy, and DC, are synonymous with the heritage and culture of surfing, skateboarding and snowboarding. Our products combine decades of brand heritage, authenticity and design experience with the latest technical performance innovations available in the marketplace.

Our products are sold in over 100 countries through a wide range of distribution points, including wholesale accounts (surf shops, skate shops, snow shops, specialty stores, and select department stores), 891 owned or licensed Company retail stores, and via our e-commerce websites. We have four operating segments consisting of the Americas, EMEA and APAC, each of which sells a full range of our products, as well as Corporate Operations. Our Americas segment, consisting of North, South and Central America, includes revenues primarily from the United States, Canada, Brazil and Mexico. Our EMEA segment, consisting of Europe, the Middle East and Africa, includes revenues primarily from continental Europe, the United Kingdom, Russia and South Africa. Our APAC segment, consisting of Asia and the Pacific Rim, includes revenue primarily from Australia, Japan, New Zealand, South Korea, Taiwan and Indonesia. Royalties earned from various licensees in other international territories are categorized in Corporate Operations, along with revenues from sourcing services to our licensees. For information regarding the revenues, operating income/(loss), and identifiable assets attributable to our operating segments, see note 3 of our condensed consolidated financial statements included in this report. In fiscal 2013, more than 60% of our revenue was generated outside of the United States.

Multi-Year Profit Improvement Plan

In May 2013, we announced a multi-year Profit Improvement Plan (“PIP”) designed to accelerate our three fundamental strategies of strengthening brands, growing sales and driving operational efficiencies. The PIP’s initiatives focus on prioritizing our three core brands, globalizing key functions and reducing our cost structure.

Important elements of the PIP include:

• clarifying the positioning of our three flagship brands (Quiksilver, Roxy and DC);

• divesting or exiting certain non-core brands;

• globalizing product design and merchandising;

• licensing of secondary or peripheral product categories;

• reprioritization of marketing investments to emphasize in-store and print marketing along with digital and social media;

• continued investment in emerging markets and e-commerce;

• improving sales execution;

23

• optimizing our supply chain;

• reducing product styles;

• centralizing global responsibility for key functions, including product design, supply chain, marketing, retail stores, licensing and administrative functions; and

• closing underperforming retail stores, reorganizing wholesale sales operations, implementing greater pricing discipline, and improving product segmentation.

We expect that the PIP, when fully implemented by the end of fiscal 2016, could improve our Adjusted EBITDA by approximately $150 million compared to our fiscal 2012 Adjusted EBITDA. Approximately one-half of this improvement is expected to come from supply chain optimization and the rest is expected to be primarily driven by corporate overhead reductions, licensing opportunities and improved pricing management, along with net revenue growth. We believe we have made meaningful progress on our PIP through the first quarter of fiscal 2014.

Discontinued Operations

One of the elements of the multi-year PIP involves divesting or exiting certain non-core businesses in order to improve our focus on our three flagship brands. In November 2013, we completed the sale of Mervin Manufacturing, Inc. (“Mervin”), a manufacturer of snowboards and related products under the Lib Technologies and GNU brands, for $58 million, subject to a final working capital adjustment. In January 2014, we completed the sale of substantially all of the assets of Hawk Designs, Inc. (“Hawk”), our former subsidiary that owned and operated our Hawk brand, for $19 million. The sale of these businesses generated a net after-tax gain of approximately $38 million during the first quarter of fiscal 2014. Additionally, we are pursuing strategic alternatives to sell our majority stake in our United Kingdom-based Surfdome Shop, Ltd. (“Surfdome”), a multi-brand e-commerce retailer. As a result of these efforts, each of our Mervin, Hawk and Surfdome businesses were classifed as “held for sale” as of October 31, 2013 and are presented as discontinued operations in our consolidated financial statements for all periods presented. See Note 15 to our condensed consolidated financial statements, “Discontinued Operations”, for further discussion of the operating results of our discontinued businesses.

Results of Operations

The following table sets forth selected statement of operations and other data from continuing operations expressed as a percentage of net revenues for the first quarter of both fiscal 2014 and 2013. The discussion of our operating results from continuing operations that follows should be read in conjunction with the table.

	First Quarter Ended January 31,
	2014			2013
Statements of Operations data
Revenues, net		100.0	%		100.0	%
Gross profit		50.9			50.9
Selling, general and administrative expense		51.9			52.5
Asset impairments		0.2			0.8
Operating loss		(1.2	)		(2.4	)
Interest expense, net		4.9			3.8
Foreign currency loss		0.7			0.7
Loss before (benefit)/provision for income taxes		(6.9	)%		(6.9	)%
Other data
Adjusted EBITDA(1)		2.3	%		2.3	%

(1) Adjusted EBITDA is defined as net (loss)/income from continuing operations attributable to Quiksilver, Inc. before (i) interest expense, (ii) provision/(benefit) for income taxes, (iii) depreciation and amortization, (iv) non-cash stock-based compensation expense and (v) non-cash asset impairments. Adjusted EBITDA is not defined under generally accepted accounting principles (“GAAP”), and it may not be comparable to similarly titled measures reported by other companies. We use Adjusted EBITDA, along with GAAP measures, as a measure of profitability because Adjusted EBITDA helps us to compare our performance on a consistent basis by removing from our operating results the impact of our capital structure, the effect of operating in different tax jurisdictions, the impact of our asset base,

24

which can differ depending on the book value of assets, the accounting methods used to compute depreciation and amortization, the existence or timing of asset impairments and the effect of non-cash stock-based compensation expense. We believe EBITDA is useful to investors as it is a widely used measure of performance and the adjustments we make to EBITDA provide further clarity on our profitability. We remove the effect of non-cash stock-based compensation from our earnings which can vary based on share price, share price volatility and the expected life of the equity instruments we grant. In addition, this stock-based compensation expense does not result in cash payments by us. We remove the effect of non-cash asset impairments from Adjusted EBITDA for the same reason that we remove depreciation and amortization as it is part of the impact of our asset base. Adjusted EBITDA has limitations as a profitability measure in that it does not include the interest expense on our debts, our provisions for income taxes, the effect of our expenditures for capital assets and certain intangible assets, the effect of non-cash stock-based compensation expense and the effect of non-cash asset impairments. The following is a reconciliation of net loss attributable to Quiksilver, Inc. to Adjusted EBITDA for the first quarter of both fiscal 2014 and 2013:

	First Quarter Ended January 31,
In thousands	2014			2013
Net loss attributable to Quiksilver, Inc.	$	(22,333	)	$	(31,568	)
Provision for income taxes		(4,385	)		2,949
Interest expense, net		19,420			15,501
Depreciation and amortization		10,545			11,943
Non-cash stock-based compensation expense		5,063			7,336
Non-cash asset impairments		883			3,168
Adjusted EBITDA	$	9,193		$	9,329

First Quarter (Three Months) Ended January 31, 2014 Compared to First Quarter (Three Months) Ended January 31, 2013

Revenues, net

Revenues, net – by Segment

The following table presents consolidated net revenues (in millions) by segment in historical currency (as reported) for the first quarter of fiscal 2014 and 2013:

Net Revenues by Segment in Historical Currency (as reported):

	Americas			EMEA			APAC			Corporate		Total
First Quarter 2014	$	173		$	149		$	70		$	0.2	$	393
First Quarter 2013		183			156			73			0.7		412
% decrease		(5	)%		(4	)%		(4	)%				(5	)%

We use constant currency measurements to better understand actual growth rates in our foreign operations. Constant currency measurements remove the impact of foreign currency exchange rate fluctuations from period to period. Constant currency is calculated by taking the ending foreign currency exchange rate (for balance sheet items) or the average foreign currency exchange rate (for income statement items) used in translation for the current period and applying that same rate to the prior period. The following table presents net revenues (in millions) by segment in constant currency for the first quarter of fiscal 2014 and 2013:

Net Revenues by Segment in Constant Currency (current year exchange rates):

	Americas			EMEA			APAC			Corporate		Total
First Quarter 2014	$	173		$	149		$	70		$	0.2	$	393
First Quarter 2013		179			159			63			0.7		402
% (decrease)/increase		(3	)%		(6	)%		11	%				(2	)%

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On an as reported basis, total net revenues for the first quarter of fiscal 2014 decreased $19 million, or 5%, to $393 million from $412 million in the comparable period of the prior year. Each of our regional segments had similar single-digit percentage declines in net revenues on an as reported basis.

Net revenues in our Americas segment decreased 5% on an as reported basis (3% in constant currency) versus the prior year period. After consideration of foreign currency fluctuations, Americas segment net revenues decreased by a high single-digit percentage in our Quiksilver and DC brands, partially offset by a high single-digit percentage increase in Roxy brand net revenues. Americas segment net revenues decreased by a high single-digit percentage in our wholesale channel and decreased slightly in our retail and e-commerce channels. The net revenue decrease in the Americas wholesale channel was focused within North America where net revenues decreased by a high single-digit percentage due primarily to three factors: 1) lower sales of DC brand products of approximately $6 million as a result of improved management of channel inventory to better align sell-in with sell-through; 2) a reduction of net revenues of approximately $2 million as a result of the discontinuation of the Quiksilver women’s product line in fiscal 2013; and 3) a reduction in net revenues of approximately $2 million as a result of lower shipments into Venezuela due to the economic instability occurring there. The decrease in Americas segment net revenues was focused within North America where net revenues decreased by a high single-digit percentage, partially offset by strong growth in the emerging markets of Brazil and Mexico. We believe these factors are likely to continue to negatively impact our Americas wholesale business in the near future.

Net revenues in our EMEA segment decreased 4% on an as reported basis (6% in constant currency) versus the prior year period. After consideration of foreign currency fluctuations, EMEA segment net revenues decreased by a low double-digit percentage in our Quiksilver brand and a high single-digit percentage in our DC brand. Roxy brand net revenues were flat compared to the prior year. EMEA segment net revenues decreased by a low double-digit percentage in the wholesale channel, partially offset by low single-digit percentage growth in the retail channel and strong double-digit percentage growth in the e-commerce channel. The decrease in EMEA wholesale channel net revenues was primarily due to lower net revenues with clearance customers due to improved inventory management, and increased returns and markdowns to aid inventory sell-through versus the prior year period. We believe EMEA wholesale net revenues will continue to be challenging in the near future due to on-going economic and competitive difficulties within the segment. Net revenues decreased by over 20% in Germany due primarily to the timing of shipments in the wholesale channel relating to DC product that are expected to shift into the second quarter. Net revenue decreases in the EMEA segment were partially offset by significant growth in Spain and the emerging market of Russia where net revenues increased by double-digit percentages versus the prior year period.

Net revenues in our APAC segment decreased 4% on an as reported basis versus the prior year period due to unfavorable foreign currency fluctuations. Based on current exchange rates, we believe our reported net revenue results from our APAC segment will continue to be negatively impacted by foreign currency fluctuations in the near future. In constant currency, APAC net revenues increased 11% versus the prior year period. After consideration of foreign currency fluctuations, APAC segment net revenues increased across all three core brands (Quiksilver, Roxy and DC) and all three distribution channels (wholesale, retail and e-commerce). A significant portion of the net revenue increases was driven by promotional activity and clearance sales. APAC segment net revenues increased by a low single-digit percentage in the mature markets of Australia and Japan and increased substantially in the emerging markets of Indonesia, China, South Korea and Taiwan.

Net revenues in our emerging markets, which include Brazil, Mexico, Russia, Indonesia, South Korea, Taiwan and China, increased by 21% versus the prior year on an as reported basis (32% in constant currency).

Revenues, net – By Brand

Net revenues by brand (in millions), in both historical and constant currency, for the first quarter of fiscal 2014 and 2013 were as follows:

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Net Revenues by Brand in Historical Currency (as reported):

	Quiksilver			Roxy			DC			Other		Total
First Quarter 2014	$	163		$	117		$	102		$	10	$	393
First Quarter 2013		178			115			109			10		412
% (decrease)/increase		(8	)%		2	%		(6	)%				(5	)%

Net Revenues by Brand in Constant Currency (current year exchange rates):

	Quiksilver			Roxy			DC			Other		Total
First Quarter 2014	$	163		$	117		$	102		$	10	$	393
First Quarter 2013		174			112			106			10		402
% (decrease)/increase		(6	)%		5	%		(4	)%				(2	)%

Quiksilver brand net revenues decreased 8% on an as reported basis (6% in constant currency) versus the prior year period. After consideration of foreign currency fluctuations, this decrease was primarily due to a low double-digit percentage decline in the wholesale channel, partially offset by low single-digit percentage growth in the retail channel and a low double-digit percentage growth in the e-commerce channel. The wholesale net revenue decrease was driven by a double-digit percentage decrease in the EMEA segment and a high single-digit percentage decrease in the Americas segment.

Roxy brand net revenues increased 2% on an as reported basis (5% in constant currency) versus the prior year period. After consideration of foreign currency fluctuations, Roxy brand net revenues increased across all three regional segments and all three distribution channels. These increases were primarily driven by the wholesale channel in the Americas and APAC segments as well as the retail channel in the APAC segment.

DC brand net revenues decreased 6% on an as reported basis (4% in constant currency) versus the prior year period. After consideration of foreign currency fluctuations, DC brand net revenues decreased by low double-digit percentages in the wholesale channel of both the Americas and EMEA segments, partially offset by double-digit percentage growth in the APAC segment across all three distribution channels. Net revenue increases within the APAC segment were largely driven by promotional activity to aid sell-through.

Revenues, net – By Channel

Net revenues by channel (in millions), in both historical and constant currency, for the first quarter of fiscal 2014 and 2013 were as follows:

Net Revenues by Channel in Historical Currency (as reported):

	Wholesale			Retail			E-com			Total
First Quarter 2014	$	239		$	131		$	23		$	393
First Quarter 2013		262			129			21			412
% (decrease)/increase		(9	)%		1	%		14	%		(5	)%

Net Revenues by Channel in Constant Currency (current year exchange rates):

	Wholesale			Retail			E-com			Total
First Quarter 2014	$	239		$	131		$	23		$	393
First Quarter 2013		256			126			20			402
% (decrease)/increase		(7	)%		4	%		16	%		(2	)%

Wholesale net revenues decreased 9% on an as reported basis (7% in constant currency) versus the prior year period. After consideration of foreign currency fluctuations, wholesale net revenues declined in the EMEA and Americas segments and in the Quiksilver and DC brands. These decreases were partially offset by net revenue growth in the APAC segment and in the Roxy brand. Our wholesale net revenues have declined for the last several quarters, particularly within the Americas and EMEA segments due to various economic and competitive challenges. We believe it is likely that such difficulties will continue in the near future, resulting in further net revenue declines within this channel.

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Retail net revenues increased 1% on an as reported basis (4% in constant currency) versus the prior year period. Global comparable-store net revenues increased 2% during the first quarter of fiscal 2014 compared to the prior year period. We operated 645 company-owned retail stores, including shop-in-shops, at January 31, 2014 compared to 615 at January 31, 2013. After consideration of foreign currency fluctuations, retail net revenues increased by a low single-digit percentage in the Roxy and Quiksilver brands and in excess of 20% for the DC brand primarily due to expanding the perimeter of this brand within the APAC and EMEA segments. Retail net revenues increased by a high single-digit percentage in the APAC segment and by a low single-digit percentage in the EMEA segment. These increases were partially offset by a modest decrease in the Americas segment.

E-commerce net revenues increased 14% on an as reported basis (16% in constant currency) due to significant growth in the EMEA and APAC segments as we continued to expand our online business within these regional segments. E-commerce net revenues within the Americas segment declined slightly.

Gross Profit

Gross profit decreased to $200 million in the first quarter of fiscal 2014 from $210 million in the comparable period of the prior year. Gross margin was flat as a percentage of net revenues compared to the prior year period. Modest gross margin improvements in the Americas and EMEA segments were offset by decreased gross margin in our APAC segment primarily due to increased promotional activity. The gross margin increases in our Americas and EMEA segments were primarily the result of the net revenue mix shift toward the higher margin retail and e-commerce channels. Gross margin as a percentage of net revenues by regional segment for the first quarter of fiscal 2014 and 2013 was as follows:

	First Quarter Ended January 31,						Basis Point Change
	2014			2013
Americas		43.4	%		42.8	%		60 bp
EMEA		58.8	%		58.7	%		10 bp
APAC		52.7	%		54.0	%		(130) bp
Consolidated		50.9	%		50.9	%		0 bp

Selling, General and Administrative Expenses (“SG&A”)

SG&A for the first quarter of fiscal 2014 decreased $12 million, or 6%, to $204 million from $216 million in the comparable period of the prior year. This decrease was primarily attributable to the favorable impact of our expense reduction efforts implemented in the past year related to employee compensation expense, including incentive compensation, and lower athlete and event spending. SG&A by segment (in millions) as reported for the first quarter of fiscal 2014 and 2013 was as follows:

	2014					2013								Basis Point Change
	$		% of Net Revenues			$		% of Net Revenues			$ Change
Americas		84		48.3	%		85		46.6	%		(1	)		170 bp
EMEA		77		51.3	%		77		49.4	%		0			190 bp
APAC		33		46.7	%		37		51.2	%		(4	)		(450) bp
Corporate Operations		11					17					(6	)
Consolidated		204		51.9	%		216		52.5	%		(12	)		(60) bp

Depending on the pacing and nature of further restructuring activities, we may not be able to maintain the same pace of SG&A savings in future quarters that we have achieved in recent quarters.

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Asset Impairments

Asset impairment charges were $1 million in the first quarter of fiscal 2014 compared to $3 million in the prior year period. Impairment charges were related to certain underperforming retail stores in both periods.

Non-Operating Expenses

Net interest expense for the first quarter of fiscal 2014 was $19 million compared to $16 million in the first quarter of fiscal 2013. This increase was due to both increased net borrowings and higher interest rates year over year.

Our foreign currency loss amounted to $3 million in the first quarter of both fiscal 2014 and 2013. This loss resulted primarily from the foreign currency exchange effect of certain non-euro denominated assets of our European subsidiaries.

Our income tax benefit for the first quarter of fiscal 2014 was $4 million compared to income tax expense of $3 million in the comparable period of the prior year. Our sale of the Mervin and Hawk businesses generated income tax expense of approximately $10 million within discontinued operations. However, as we do not expect to pay income tax after application of available loss carryforwards, an offsetting income tax benefit was recognized within continuing operations. Before this income tax benefit, we generated income tax expense in the first quarter of both fiscal 2014 and 2013 as we recorded tax expense in certain tax jurisdictions but were unable to record tax benefits against the losses in those jurisdictions where we have previously recorded valuation allowances.

Net Loss from Continuing Operations Attributable to Quiksilver, Inc.

Our net loss from continuing operations attributable to Quiksilver, Inc. for the first quarter of fiscal 2014 was $22 million, or $0.13 per share, compared to $32 million, or $0.19 per share, in the comparable period of the prior year.

Adjusted EBITDA

Adjusted EBITDA was $9 million in the first quarter of both fiscal 2014 and 2013. For a definition of Adjusted EBITDA and a reconciliation of net loss attributable to Quiksilver, Inc. to Adjusted EBITDA, see footnote (1) to the table under “Results of Operations” above.

Financial Position, Capital Resources and Liquidity

The following table shows our cash, working capital and total indebtedness as of the dates indicated:

in millions	January 31, 2014		October 31, 2013		January 31, 2013
Cash and cash equivalents	$	70	$	57	$	68
Restricted cash		61		—		—
Working capital		567		548		540
Total indebtedness		865		831		788

We believe that our cash flows from operations, cash on hand, and restricted cash, together with our existing credit facilities, will be adequate to fund our capital requirements for at least the next twelve months.

Cash Flows

Operating activities used cash of $11 million in the first quarter of fiscal 2014 compared to cash provided of $23 million in the comparable period of the prior year. This $34 million decrease was largely driven by a $21 million decrease in cash provided from the operating activities of our discontinued operations. The remaining $13 million decrease was primarily attributable to a $21 million reduction in collections on accounts receivable during the first quarter of fiscal 2014 compared to the prior year period as a result of the net revenue decline and the timing of customer payments, and an $8 million increase in cash used in accounts payable net of inventory changes. These decreases in cash provided from operating activities were partially offset by a $14 million improvement in cash flows from accrued liabilities and other long-term liabilities.

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Net cash provided by investing activities totaled $6 million in the first quarter of fiscal 2014 compared to cash used of $13 million in the prior year period. We received cash proceeds from the sale of our Mervin and Hawk businesses of $77 million during the first quarter of fiscal 2014. The use of these proceeds is restricted by certain of our credit agreements to the repayment of indebtedness and for capital expenditures. Accordingly, the remaining proceeds of $61 million at January 31, 2014 have been classified as restricted cash on our balance sheet. Capital expenditures totaled $11 million for the first quarter of fiscal 2014 compared to $12 million in the comparable period of the prior year. These investments include our ongoing enterprise-wide reporting system (SAP) and investments in company-owned stores.

Net cash provided by financing activities totaled $23 million in the first quarter of fiscal 2014 compared to $22 million in the comparable period of the prior year. Net cash provided primarily resulted from net borrowings on our existing credit facilities.

The net increase in cash and cash equivalents for the first quarter of fiscal 2014 was $13 million compared to an increase of $27 million in the comparable period of the prior year.

Working Capital - Trade Accounts Receivable and Inventories

Two of the primary components of our working capital and near-term sources of cash at any point in time are trade accounts receivable and inventories. Our net trade accounts receivable decreased 18% to $339 million at January 31, 2014 compared to $412 million at October 31, 2013 due to the typical seasonality of our business. Compared to January 31, 2013, our net trade accounts receivable increased 2% and our average days sales outstanding (“DSO”) increased 13%. The increase in DSO was driven by the net revenue decrease during the first quarter of fiscal 2014, longer credit terms granted to certain wholesale customers, and the timing of customer payments.

Our net inventories increased 7% to $360 million at January 31, 2014 compared to $338 million at October 31, 2013. Compared to January 31, 2013, net inventories decreased 11% and inventory days on hand decreased 6%. These decreases were primarily due to improved aged inventory management versus the comparable prior year period. Aged inventory was 10% of total inventory at January 31, 2014 compared to 13% at January 31, 2013.

Income Taxes

As of January 31, 2014, our liability for uncertain tax positions, exclusive of interest and penalties, was approximately $12 million. If our positions are favorably sustained by the relevant taxing authority, approximately $11 million, excluding interest and penalties, of uncertain tax position liabilities would favorably impact our effective tax rate in future periods.

Contractual Obligations

There have been no material changes outside the ordinary course of business in our contractual obligations since October 31, 2013.

Critical Accounting Policies

Our condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. To prepare these financial statements, we must make estimates and assumptions that affect the reported amounts of assets and liabilities. These estimates also affect our reported revenues and expenses. Judgments must also be made about the disclosure of contingent liabilities. Actual results could be significantly different from these estimates. We believe that the following discussion addresses the accounting policies that are necessary to understand and evaluate our reported financial results.

Revenue Recognition

Revenues are recognized when the risk of ownership and title passes to our customers. Generally, we extend credit to our customers and do not require collateral. Our sales agreements with our customers do not provide for any rights of return. However, we do approve returns on a case-by-case basis at our sole discretion to protect our brands and our image. We provide allowances for estimated returns when revenues are recorded, and related losses have historically been within our expectations.

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Accounts Receivable

Throughout the year, we perform credit evaluations of our customers, and we adjust credit limits based on payment history and the customer’s current creditworthiness. We continuously monitor our collections and maintain a reserve for estimated credit losses based on our historical experience and any specific customer collection issues that have been identified. We also use insurance on certain classes of receivables in our EMEA segment. Historically, our losses have been consistent with our estimates, but there can be no assurance that we will continue to experience the same credit loss rates that we have experienced in the past.

Inventories

We value inventories at the cost to purchase and/or manufacture the product or the current estimated market value of the inventory, whichever is lower. We regularly review our inventory quantities on hand, and adjust inventory values for excess and obsolete inventory based primarily on estimated forecasts of product demand and market value.

Long-Lived Assets

We acquire tangible and intangible assets in the normal course of our business. We evaluate the recoverability of the carrying amount of these long-lived assets (including fixed assets, trademarks, licenses and other amortizable intangibles) whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized when the carrying value exceeds the undiscounted future cash flows estimated to result from the use and eventual disposition of the asset. Impairments are recognized in operating earnings. We use our best judgment based on the most current facts and circumstances regarding our business when applying these impairment rules to determine the timing of the impairment tests, the undiscounted cash flows used to assess impairments, and the fair value of a potentially impaired asset.

Goodwill

We evaluate the recoverability of goodwill at least annually based on a two-step impairment test. The first step compares the fair value of each reporting unit with its carrying amount, including goodwill. We have three reporting units under which we evaluate goodwill for impairment, the Americas, EMEA and APAC. We estimate the fair value of our reporting units using a combination of a discounted cash flow approach and market approach. Material assumptions in our test for impairment include future cash flows of each reporting unit, discount rates applied to these cash flows and current market estimates of value. The discount rates used approximate our cost of capital. Future cash flows assume varying degrees of future growth in each reporting unit’s business. If the carrying amount exceeds fair value under the first step of our goodwill impairment test, then the second step of the impairment test is performed to measure the amount of any impairment loss.

As of October 31, 2013, the fair value of each of our reporting units substantially exceeded their respective carrying values. Goodwill amounted to $75 million for the Americas, $180 million for EMEA and $6 million for APAC as of October 31, 2013.

Income Taxes

Current income tax expense is the amount of income taxes expected to be payable for the current year. A deferred income tax asset or liability is established for the expected future consequences of temporary differences in the financial reporting and tax bases of assets and liabilities. We consider future taxable income and ongoing prudent and feasible tax planning strategies in assessing the value of our deferred tax assets. If we determine that it is more likely than not that these assets will not be realized, we would reduce the value of these assets to their expected realizable value by recording a valuation allowance, thereby decreasing net income. Evaluating the value of these assets is necessarily based on our judgment. If we subsequently determine that the deferred tax assets for which a valuation allowance had been recorded would, in our judgment, be realized in the future, the valuation allowance would be reduced, thereby increasing net income in the period when that determination was made.

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We adhere to the authoritative guidance included in ASC 740, “Income Taxes” which clarifies the accounting for uncertainty in income taxes recognized in the financial statements. This guidance provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the tax position. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of our provision for income taxes. The application of this guidance can create significant variability in our tax rate from period to period based upon changes in or adjustments to our uncertain tax positions.

Stock-Based Compensation Expense

We recognize compensation expense for all stock-based payments net of an estimated forfeiture rate and only recognize compensation cost for those shares expected to vest using the graded vested method over the requisite service period of the award. For option valuation, we determine the fair value at the grant date using the Black-Scholes option-pricing model which requires the input of certain assumptions, including the expected life of the stock-based payment awards, stock price volatility and interest rates. For performance-based equity awards with stock price contingencies, we determine the fair value using a Monte-Carlo simulation, which creates a normal distribution of future stock prices, which is then used to value the awards based on their individual terms.

Foreign Currency Translation

A significant portion of our revenues are generated in Europe, where we operate with the euro as our primary functional currency, and a smaller portion of our revenues are generated in APAC, where we operate with the Australian dollar and Japanese yen as our primary functional currencies. Our European revenues in the United Kingdom are denominated in British pounds, and substantial portions of our EMEA and APAC product is sourced in U.S. dollars, both of which result in exposure to gains and losses that could occur from fluctuations in foreign currency exchange rates. Revenues and expenses that are denominated in foreign currencies are translated using the average exchange rate for the period. Assets and liabilities are translated at the rate of exchange on the balance sheet date. Gains and losses from assets and liabilities denominated in a currency other than the functional currency of the entity on which they reside are generally recognized currently in our statement of operations. Gains and losses from translation of foreign subsidiary financial statements into U.S. dollars are included in accumulated other comprehensive income or loss.

As part of our overall strategy to manage our level of exposure to the risk of fluctuations in foreign currency exchange rates, we enter into foreign currency exchange contracts generally in the form of forward contracts. For all contracts that qualify as cash flow hedges, we record the changes in the fair value of the derivative contracts in other comprehensive income or loss.

New Accounting Pronouncements

See Note 2 to our condensed consolidated financial statements, “New Accounting Pronouncements,” for a discussion of pronouncements that may affect our future financial reporting.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to a variety of risks, including foreign currency exchange rate fluctuations.

Foreign Currency and Derivatives

We are exposed to financial statement gains and losses as a result of translating the operating results and financial position of our international subsidiaries. We translate the local currency statements of operations of our foreign subsidiaries into U.S. dollars using the average exchange rate during the reporting period. Changes in foreign currency exchange rates affect our reported results and distort comparisons from period to period. By way of example, when the U.S. dollar strengthens compared to the euro, there is a negative effect on our reported results for our European segment because it takes more profits in euros to generate the same amount of profits in stronger U.S. dollars. The opposite is also true. That is, when the U.S. dollar weakens, there is a positive effect on the translation of our reported results from our European segment. In addition, the statements of operations of our APAC segment are translated from Australian dollars and Japanese yen into U.S. dollars, and there is a negative effect on our reported results for our APAC segment when the U.S. dollar is stronger in comparison to the Australian dollar or Japanese yen.

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EMEA revenues decreased 6% in local currency during the first quarter of fiscal 2014 compared to the first quarter of fiscal 2013. As measured in U.S. dollars and reported in our condensed consolidated statements of operations, EMEA revenues decreased 4% primarily as a result of a weaker U.S. dollar versus the euro in comparison to the prior period.

APAC revenues increased 11% in local currency during the first quarter of fiscal 2014 compared to the first quarter of fiscal 2013. As measured in U.S. dollars and reported in our condensed consolidated statements of operations, APAC revenues decreased 4% primarily as a result of a stronger U.S. dollar versus the Japanese yen and Australian dollar in comparison to the prior period.

Our other foreign currency and interest rate risks are discussed in our Annual Report on Form 10-K for the year ended October 31, 2013 in Item 7A.

Item 4. Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Our disclosure controls and procedures are designed to provide a reasonable level of assurance of reaching our desired disclosure control objectives.

We carried out an evaluation under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of January 31, 2014, the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective, and were operating at the reasonable assurance level as of January 31, 2014.

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended January 31, 2014 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1A. RISK FACTORS

Our business faces numerous risks, many of which are beyond our control. The impact of these risks, as well as other unforeseen risks, could have a material negative impact on our business, financial condition or results of operations. The trading price of our common stock or our senior notes could decline as a result. You should consider these risks before deciding to invest in, or maintain your investment in, our common stock or senior notes.

Our profit improvement plan may not be successful in improving our results of operations or financial condition.

In May 2013, we announced a multi-year profit improvement plan designed to improve upon our fiscal 2012 Adjusted EBITDA results by an estimated $150 million when fully implemented in 2016. The plan includes certain changes in our strategic focus, senior management, operational processes and organizational structure and calls for further supply chain optimization, reduction of corporate overhead, divestiture of certain non-core brands, licensing of certain product categories, reprioritization of marketing investments, revenue growth and improved pricing management. It may take longer than anticipated to generate the expected benefits from these changes and there can be no guarantee that these changes will result in improved operating results. If we are not successful in implementing these changes and executing the plan in a timely and efficient manner, we may not realize the benefits we expect. Additionally, as we work to globalize certain business processes, changes in existing processes may result in unforeseen issues and complications that could have an adverse impact on our results of operations and financial condition.

We may be unable to continue to generate savings in selling, general and administrative expenses at the same pace as in recent quarters.

Over the past several quarters, we have undertaken various restructuring activities related to the implementation of our multi-year profit improvement plan, including, among other items, employee severance, discontinuation of certain product categories or brands, and facility exit costs. We believe these activities have contributed to reducing overall SG&A levels on a go-forward basis. However, if we do not undertake additional restructuring activities, or decrease the pace of such restructuring activities, we will be unable to sustain further SG&A reductions in future periods, which could be perceived negatively and, as a result, our stock price could decline.

Financial and competitive difficulties of our wholesale customers (independent retailers) may negatively impact our revenues and profitability.

Our wholesale business has been negatively impacted in certain jurisdictions due to financial and competitive difficulties experienced by various independent retailers that purchase our products. Our business may continue to be adversely impacted in the future as a result of such difficulties of such retailers. Any continuation of financial and competitive difficulties for, or deterioration in the financial health of, our current or prospective wholesale customers could result in decreased sales, uncollectible receivables, increased product returns, or an inability to generate new business. Also, any consolidation of retail accounts, or concentration of market share in a specific area, could significantly increase our credit risk. Any or all of these factors could have a material adverse effect on our business, financial condition, and results of operations.

Additionally, as consumers become more confident shopping online, our wholesale channel customers face increased competition from online competitors, including, but not limited to, Amazon in the Americas, Zalando in EMEA, and Taobao in China. These online competitors may have lower cost structures, higher sales volumes, wider product assortments, and faster marketing response times than some or our traditional wholesale channel customers. In addition, our smaller independent wholesale accounts may face competitive challenges from large multi-location accounts that benefit from better pricing and terms due to higher purchasing volume, larger marketing investments, higher levels of support from suppliers, and superior financial condition. Also, we have made, and plan to make, changes to our wholesale sales

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force structure whereby wholesale accounts generating less than a minimum annual order volume will not be serviced by a salesperson, but will instead be provided a self-service website from which they may order our products. Lastly, our plans to reduce the size of our product assortment available to wholesale customers could have the effect of reducing wholesale revenues. We have experienced, and expect to continue to experience, difficulties in expanding or maintaining our wholesale channel revenues due to these and other factors. Such difficulties in our wholesale channel could have a material adverse impact on our operating results, financial condition and stock price.

Unfavorable economic conditions could have a material adverse effect on our business, results of operations and financial condition.

Our financial performance has been, and may continue to be, negatively affected by unfavorable economic conditions. Continued or further recessionary economic conditions, uncertainty concerning the euro, unemployment in the Euro zone, or other macro economic factors may have an adverse impact on our sales volumes, pricing levels and profitability. As domestic and international economic conditions change, trends in discretionary consumer spending become unpredictable and subject to reductions due to uncertainties about the future. When consumers reduce discretionary spending, purchases of specialty apparel and footwear, like our products, tend to decline which may result in reduced orders from retailers for our products, order cancellations, and/or unanticipated discounts. A continuation of the general reduction in consumer discretionary spending in the domestic and international economies, as well as the impact of tight credit markets on us, our suppliers, other vendors or customers, could have a material adverse effect on our results of operations and financial condition.

The apparel, footwear and accessories industries are each highly competitive, and if we fail to compete effectively, we could lose our market position.

The apparel, footwear and accessories industries are each highly competitive. We compete against a number of domestic and international designers, manufacturers, retailers and distributors of apparel, footwear and accessories. In order to compete effectively, we must (1) maintain the image of our brands and our reputation for authenticity in our core boardriding markets; (2) be flexible and innovative in responding to rapidly changing market demands; and (3) offer consumers a wide variety of high quality products at competitive prices.

The purchasing decisions of consumers are highly subjective and can be influenced by many factors, such as brand image, marketing programs and product design. A small number of our global competitors enjoy substantial competitive advantages, including greater financial resources for competitive activities, such as sales, marketing, strategic acquisitions and athlete endorsements. The number of our direct competitors and the intensity of competition may increase as we expand into other product lines or as other companies expand into our product categories. Our competitors may enter into business combinations or alliances that strengthen their competitive positions or prevent us from taking advantage of such combinations or alliances. Our competitors also may be able to respond more quickly and effectively than we can to new or changing opportunities, standards or consumer preferences. In addition, if our sponsored athletes terminate their relationships with us and endorse the products of our competitors, we may be unable to obtain endorsements from other comparable athletes. If we fail to retain our competitive position, our sales could decline significantly which would have a material adverse impact on our results of operations, financial condition and liquidity.

If we are unable to develop innovative and stylish products in response to rapid changes in consumer demands and fashion trends, we may suffer a decline in our revenues and market share.

The apparel, footwear and accessories industries are subject to rapidly changing consumer demands based on fashion trends and performance features. Our success depends, in part, on our ability to anticipate, gauge and respond to these changing consumer preferences in a timely manner while preserving the authenticity and image of our brands and the quality of our products.

As is typical with new products, market acceptance of new designs and products we may introduce is subject to uncertainty. In addition, we generally make decisions regarding product designs months in

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advance of the time when consumer acceptance can be measured. If trends shift away from our products, or if we misjudge the market for our product lines, we may be faced with significant amounts of unsold inventory or other conditions which could have a material adverse effect on our results of operations and financial condition.

The failure of new product designs or new product lines to gain market acceptance could also adversely affect our business and the image of our brands. Achieving market acceptance for new products may also require substantial marketing efforts and expenditures to expand consumer demand. These requirements could strain our management, financial and operational resources. If we do not continue to develop stylish and innovative products that provide better design and performance attributes than the products of our competitors, or if our future product lines misjudge consumer demands, we may lose consumer loyalty, which could result in a decline in our revenues and market share.

Our business could be harmed if we fail to maintain proper inventory levels.

We maintain an inventory of selected products that we anticipate will be in demand. We may be unable to sell the products we have ordered in advance from manufacturers or that we have in our inventory. Inventory levels in excess of customer demand may result in inventory write-downs or the sale of excess inventory at discounted or closeout prices. These events could significantly harm our operating results and impair the image of our brands. Conversely, if we underestimate consumer demand for our products or if our manufacturers fail to supply quality products in a timely manner, we may experience inventory shortages, which might result in unfilled orders, negatively impact customer relationships, diminish brand loyalty and result in lost revenues, any of which could harm our business.

Our business could be harmed if we fail to execute our internal plans to transition our supply chain and certain other business processes to global scope.

We are in the process of transitioning our supply chain and certain other business processes to global scope. If our globalization efforts fail to produce planned efficiencies, or the transition is not managed effectively, we may experience excess inventories, inventory shortage, lost revenues, or increased costs. Any business disruption arising from our globalization efforts, or our failure to effectively execute our internal plans for globalization, could adversely impact our results of operations and financial condition.

Our business could be harmed if we are unable to accurately forecast demand for our products.

To ensure adequate inventory supply, we forecast inventory needs and place orders with our manufacturers before firm orders are placed by our customers. If we fail to accurately forecast customer demand, we may experience excess inventory levels or a shortage of product to deliver to our customers. Inventory levels in excess of customer demand may result in inventory write-downs or write-offs and the sale of excess inventory at discounted prices, which would have an adverse effect on gross margin. In addition, if we underestimate the demand for our products, our manufacturers may not be able to produce products to meet our customer requirements, and this could result in delays in the shipment of our products and our ability to satisfy customer demand, as well as damage to our reputation and customer relationships. A failure to accurately predict the level of demand for our products could cause a decline in revenue and adversely impact our results of operations and financial condition.

The demand for our products is seasonal and is dependent upon several unpredictable factors.

Consumer demand for our products can fluctuate significantly from quarter to quarter and year to year. Consumer demand is dependent on many factors, including customer acceptance of our product designs, fashion trends, economic conditions, changes in consumer spending, weather patterns during peak selling periods, and numerous other factors beyond our control. The seasonality of our business and/or misjudgment in anticipating consumer demands could have a material adverse effect on our financial condition and results of operations.

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Our industry is subject to pricing pressures that may adversely impact our financial performance.

We source many of our products offshore because manufacturing costs, particularly labor costs, are generally less than in the U.S. Many of our competitors also source their products offshore, possibly at lower costs than ours, and they may use these cost savings to reduce prices. To remain competitive, we may be forced to adjust our prices from time to time in response to these pricing pressures. As a result, our financial performance may be negatively affected if we are forced to reduce our prices while we are unable to reduce production costs or our production costs increase and we are unable to proportionately increase our prices. Any inability on our part to effectively respond to changing prices and sourcing costs could have a material adverse impact on our results of operations, financial condition and liquidity.

Fluctuations in the cost and availability of raw materials, labor, and transportation could cause manufacturing delays and increase our costs.

The prices of the fabrics used to manufacture our products depend largely on the market prices for the raw materials used to produce them, particularly cotton. The price and availability of such raw materials may fluctuate significantly, depending on many factors, including crop yields and weather patterns. In addition, the cost of labor at many of our third-party manufacturers has been increasing significantly. The cost of logistics and transportation fluctuates in large part due to the price of oil. Any fluctuations in the cost and availability of any of our raw materials or other sourcing costs could have a material adverse effect on our gross margins and our ability to meet consumer demands.

Factors affecting international commerce and our international operations may seriously harm our financial condition.

We generate the majority of our revenues from outside of the United States, and we anticipate that revenue from our international operations could account for an increasingly larger portion of our revenue in the future. Our international operations are directly related to, and dependent on, the volume of international trade and foreign market conditions. International commerce and our international operations are subject to many risks, including:

• recessions in foreign economies;

• fluctuations in foreign currency exchange rates;

• the adoption and expansion of trade restrictions;

• limitations on repatriation of earnings;

• difficulties in protecting our intellectual property or enforcing our intellectual property rights under the laws of other countries;

• longer receivables collection periods and greater difficulty in collecting accounts receivable;

• social, political and economic instability or hostilities;

• unexpected changes in regulatory requirements;

• fluctuations in foreign tax rates;

• tariffs, sanctions, and other trade barriers; and

• U.S. government licensing requirements for exports.

The occurrence or consequences of any of these risks may restrict our ability to operate in the affected regions and decrease the profitability of our international operations, which may harm our financial condition.

We have established, and may continue to establish, joint ventures in various foreign territories with independent third party business partners to distribute and sell Quiksilver, Roxy, DC and other branded products in such territories. These joint ventures are subject to substantial risks and liabilities associated with their operations, as well as the risk that our relationships with our joint venture partners do not succeed in the manner that we anticipate. If our joint venture operations, or our relationships with our joint venture partners, are not successful, our results of operations and financial condition may be adversely affected.

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We have operations in certain emerging markets and developing countries where the risk of asset misappropriation, theft, other crimes, or frivolous claims is higher than in more developed countries. Likewise, there is less protection for intellectual property rights of foreign companies in these jurisdictions. These risks can significantly increase the cost of operations in such markets.

In addition, as we continue to expand our overseas operations, we are subject to certain U.S. laws, including the Foreign Corrupt Practices Act, in addition to the laws of the foreign countries in which we operate. We must use all commercially reasonable efforts to ensure our employees comply with these laws. If any of our overseas operations, or our employees or agents, violates such laws, we could become subject to sanctions or other penalties that could negatively affect our reputation, business and operating results.

Uncertainty of changing international trade regulations and quotas on imports of textiles and apparel may adversely affect our business.

Quotas, duties or tariffs may have a material adverse effect on our business, financial condition and results of operations. We currently import raw materials and/or finished garments into the majority of countries in which we sell our products. Substantially all of our import operations are subject to customs duties.

In addition, the countries in which our products are manufactured or into which they are imported may from time to time impose new quotas, duties, tariffs, requirements as to where raw materials must be purchased, new workplace regulations or other restrictions on our imports, or otherwise adversely modify existing restrictions. Adverse changes in these costs and restrictions could harm our business.

We rely on third-party manufacturers and problems with, or loss of, our suppliers or raw materials could harm our business and results of operations.

Substantially all of our products are produced by independent manufacturers. We face the risk that these third-party manufacturers with whom we contract to produce our products may not produce and deliver our products on a timely basis, or at all. We cannot be certain that we will not experience operational difficulties with our manufacturers, such as reductions in the availability of production capacity, errors in complying with product specifications and regulatory and customer requirements, insufficient quality control, failures to meet production deadlines, increases in materials and manufacturing costs or other business interruptions or failures due to deteriorating economies. The failure of any manufacturer to perform to our expectations could result in supply shortages or delays for certain products and harm our business. Our business may also be harmed by material increases to our cost of goods as a result of increasing labor costs, which manufacturers have recently faced.

If our independent manufacturers fail to comply with appropriate laws, regulations, safety codes, employment practices, human rights, quality standards, environmental standards, production practices, or other obligations and norms, our reputation and brand image could be negatively impacted and we could be exposed to litigation and additional costs which would adversely affect our operational efficiency and results of operations.

The capacity of our manufacturers to manufacture our products also is dependent, in part, upon the availability of raw materials. Our manufacturers may experience shortages of raw materials, which could result in delays in deliveries of our products by our manufacturers or increased costs to us. Any shortage of raw materials or inability of a manufacturer to manufacture or ship our products in a timely manner, or at all, could impair our ability to ship orders of our products in a cost-efficient, timely manner and could cause us to miss the delivery requirements of our customers. As a result, we could experience cancellations of orders, refusals to accept deliveries or reductions in our prices and margins, any of which could harm our financial performance and results of operations.

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Labor disruptions at our suppliers, manufacturers, common carriers or ports may adversely affect our business.

Our business depends on our ability to source and distribute products in a timely manner. As a result, we rely on the timely and free flow of goods through open and operational ports worldwide and on a consistent basis from our suppliers and manufacturers. Labor disputes at various ports, our common carriers, or at our suppliers or manufacturers create significant risks for our business, particularly if these disputes result in work slowdowns, lockouts, strikes or other disruptions during our peak importing or manufacturing seasons, and could have an adverse effect on our business, potentially resulting in cancelled orders by customers, unanticipated inventory accumulation or shortages and an adverse impact on our results of operations and financial condition.

Our business could suffer if we lose key management or are unable to attract and retain the talent required for our business.

Our performance is significantly impacted by the efforts and abilities of our senior management team. If we lose the services of one or more of our key executives, we may not be able to successfully manage our business or achieve our business objectives. If we are unable to recruit and retain qualified management personnel in a timely manner, our results of operations and financial condition could suffer.

We have granted performance based restricted stock units to our senior management team that have the potential to generate compensation that could be substantial to them as individuals. These restricted stock units vest upon achievement of specified common stock price thresholds and completion of the required service period. There is not a required post-vesting service period for the grantees. If our outstanding restricted stock units held by members of our senior management team ultimately vest, the risk of management turnover would be heightened and a departure of any portion of the senior management team could have an adverse impact on our operations and financial condition.

Our debt obligations expose us to certain risks.

Our levels of debt and leverage may have negative consequences to us, including the following:

• we may have difficulty satisfying our obligations with respect to our indebtedness, and, if we fail to comply with these requirements, an event of default could result;

• we may be required to dedicate a substantial portion of our cash flow from operations to required interest and, where applicable, principal payments on indebtedness, thereby reducing the availability of cash flow for working capital, capital expenditures and other general corporate activities;

• covenants relating to our indebtedness may limit our ability to obtain additional financing for working capital, capital expenditures and other general corporate activities;

• we may be subject to credit reductions and other changes in our business relationships with our suppliers, vendors and customers if they perceive that we would be unable to pay our debts to them in a timely manner;

• we have credit facilities that are subject to periodic review and renewal, and we may be unable to extend these facilities at terms favorable to us, requiring the use of cash on hand or available credit; and

• we may be placed at a competitive disadvantage against less leveraged competitors.

The agreements governing our debt obligations contain various covenants that impose restrictions on us that may affect our ability to operate our business.

The agreements, including indentures, governing our indebtedness impose, and future financing agreements are likely to impose, operating and financial restrictions on our activities. These restrictions require us to comply with or maintain certain financial tests and ratios. In addition, the agreements limit or prohibit our ability to, among other things:

• incur additional debt and guarantees;

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• pay distributions or dividends and repurchase stock;

• make other restricted payments, including without limitation, certain restricted investments;

• create liens;

• enter into agreements that restrict dividends from subsidiaries;

• engage in transactions with affiliates; and

• enter into mergers, consolidations or sales of substantially all of our assets, including restrictions on the use of proceeds from sales of certain asset groups.

These restrictions on our ability to operate our business could seriously harm our business by, among other things, limiting our ability to take advantage of financing, merger and acquisition and other corporate opportunities.

Various risks, uncertainties and events beyond our control could affect our ability to comply with these covenants. Failure to comply with any of the covenants in our existing or future financing agreements could result in a default under those agreements and under other agreements containing cross-default provisions. A default would permit lenders to accelerate the maturity of the debt under these agreements and to foreclose upon any collateral securing the debt. Under these circumstances, we might not have sufficient funds or other resources to satisfy all of our obligations. In addition, the limitations imposed by financing agreements on our ability to incur additional debt and to take other actions might significantly impair our ability to obtain other financing. We cannot assure you that we will be granted waivers or amendments to these agreements if for any reason we are unable to comply with these agreements or that we will be able to refinance our debt on terms acceptable to us, or at all.

We lease retail stores, office space, and distribution center facilities under operating leases, and if we terminate such leases prior to their contractual expiration, we could be liable for substantial payments for remaining lease liabilities.

We operate in excess of 600 retail stores, as well as various offices, showrooms, and distribution centers, under non-cancelable operating leases. We have, at times, closed certain underperforming stores prior to the termination of their related lease agreements. As a result, we have incurred mutually negotiated lease termination costs with landlords. We may close additional underperforming stores, or other leased facilities, prior to the termination of their related lease agreements in the future. Consequently, we may incur substantial lease termination payments that could decrease our profitability, reduce our cash balances or amounts available under credit facilities, and thereby have an adverse effect on our business, financial condition, and results of operations.

Our success is dependent on our ability to protect our worldwide intellectual property rights, and our inability to enforce these rights could harm our business.

Our success depends to a significant degree upon our ability to protect and preserve our intellectual property, including copyrights, trademarks, patents, service marks, trade dress, trade secrets and similar intellectual property. We rely on the intellectual property, patent, trademark and copyright laws of the United States and other countries to protect our proprietary rights. However, we may be unable to prevent third parties from using our intellectual property without our authorization, particularly in those countries where the laws do not protect our proprietary rights as fully as in the United States. The use of our intellectual property or similar intellectual property by others could reduce or eliminate any competitive advantage we have developed, causing us to lose sales or otherwise harm our business. From time to time, we resort to litigation to protect these rights, and these proceedings can be burdensome and costly and we may not prevail.

We have obtained some U.S. and foreign trademarks, patents and service mark registrations, and have applied for additional ones, but cannot guarantee that any of our pending applications will be approved by the applicable governmental authorities. The loss of trademarks, patents and service marks, or the loss of the exclusive use of our trademarks, patents and service marks, could have a material adverse effect on our business, financial condition and results of operations. Accordingly, we devote substantial resources to the establishment and protection of our trademarks, patents and service marks on a worldwide basis and continue to evaluate the registration of additional trademarks, patents and service

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marks, as appropriate. There can be no assurance that our actions taken to establish and protect our trademarks, patents and service marks will be adequate to prevent imitation of our products by others or to prevent others from seeking to block sales of our products as violations of their trademark, patent or other proprietary rights.

We may be subject to claims that our products have infringed upon the intellectual property rights of others, which may cause us to incur unexpected costs or prevent us from selling our products.

We cannot be certain that our products do not and will not infringe the intellectual property rights of others. We may be subject to legal proceedings and claims in the ordinary course of our business, including claims of alleged infringement of the intellectual property rights of third parties by us or our customers in connection with their use of our products. Any such claims, whether or not meritorious, could result in costly litigation and divert the efforts of our personnel. Moreover, should we be found liable for infringement, we may be required to enter into licensing agreements (if available on acceptable terms or at all) or to pay damages and cease making or selling certain products. Moreover, we may need to redesign, discontinue or rename some of our products to avoid future infringement liability. Any of the foregoing could cause us to incur significant costs and prevent us from manufacturing or selling our products.

If we are unable to maintain our endorsements by professional athletes, our ability to market and sell our products may be harmed.

A valuable element of our marketing strategy has been to obtain endorsements from prominent athletes, which contribute to the authenticity and image of our brands. We believe that this strategy has been an effective means of gaining brand exposure worldwide and creating broad appeal for our products. We cannot be certain that we will be able to maintain our existing relationships with these individuals in the future or that we will be able to attract new athletes to endorse our products. We also are subject to risks related to the selection of athletes whom we choose to endorse our products. We may select athletes who are unable to perform at expected levels or who are not sufficiently marketable. In addition, negative publicity concerning any of our athletes could harm our brand and adversely impact our business. If we are unable in the future to secure prominent athletes and arrange athlete endorsements of our products on terms we deem to be reasonable, we may be required to modify our marketing platform and to rely more heavily on other forms of marketing and promotion, which may not prove to be effective. Our inability to obtain endorsements from professional athletes could adversely affect our ability to market and sell our products, resulting in loss of revenues and a loss of profitability.

In some cases, we sign multi-year contracts with sponsored athletes. If we should later wish to terminate the contract prior to the expiration date, we could be required to pay an early termination penalty, or negotiated release payment, which could have an adverse effect on our business and results of operations.

Difficulties in implementing our new global Enterprise Resource Planning system and other technologies could impact our ability to design, produce and ship our products on a timely basis.

We are in the process of implementing the SAP Apparel and Footwear Solution in addition to certain peripheral technologies as our core operational and financial system (together, “ERP”). The ongoing implementation of the ERP is a key part of our continuing efforts to manage our business more effectively by eliminating redundancies and enhancing our overall cost structure and margin performance. Difficulties in implementing SAP and integrating peripheral technologies to this new ERP could impact our ability to design, produce and ship our products on a timely basis, and thereby have an adverse effect on our business, financial condition and results of operations.

We rely significantly on information technology and any failure, inadequacy, interruption or security lapse of that technology could harm our ability to effectively operate our business.

Our ability to effectively manage and maintain our supply chain, ship products to customers, and invoice customers on a timely basis depends significantly on several key information systems. The failure of these systems to operate effectively or to integrate with other systems, or a breach in security of any of these systems, could cause delays in product fulfillment and reduced efficiency of our operations, and it could require significant capital investments to remediate any such failure, problem or breach.

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In addition, hackers and data thieves are increasingly sophisticated and operate large scale and complex automated attacks. Despite security measures that we and our third party vendors have in place, any breach of our or our third party service providers’ networks may result in the loss of valuable business data, our customers’ or employees’ personal information, or a disruption of our business, which could give rise to unwanted media attention, damage our customer relationships and reputation, and result in lost sales, fines or lawsuits. In addition, we must comply with increasingly complex regulatory standards enacted to protect this business and personal data. Any inability to maintain compliance with these regulatory standards could expose us to risks of litigation and liability, and adversely impact our results of operations and financial condition.

Changes in foreign currency exchange rates could affect our reported revenues and costs.

We are exposed to gains and losses resulting from fluctuations in foreign currency exchange rates relating to certain sales, royalty income, and product purchases of our international subsidiaries that are denominated in currencies other than their functional currencies. We are also exposed to foreign currency gains and losses resulting from U.S. transactions that are not denominated in U.S. dollars and to the current volatility and uncertainty concerning the euro. If we are unsuccessful in hedging these potential losses, our operating results could be negatively impacted and our cash flows could be significantly reduced. In some cases, as part of our risk management strategies, we may choose not to hedge such risks. If we misjudge these risks, there could be a material adverse effect on our operating results and financial position. We may use foreign currency exchange contracts, or other derivatives, to hedge certain currency exchange risks. Such derivatives may expose us to counterparty risks and there can be no guarantee that such derivatives will be effective as hedges.

Furthermore, we are exposed to gains and losses resulting from the effect that fluctuations in foreign currency exchange rates have on the reported results in our consolidated financial statements due to the translation of the statements of operations and balance sheets of our international subsidiaries into U.S. dollars. We may (but generally do not) use foreign currency exchange contracts to hedge the profit and loss effects of this translation effect because such exposures are generally non-cash in nature and because accounting rules would require us to mark these contracts to fair value in the statement of operations at the end of each financial reporting period. We translate our revenues and expenses at average exchange rates during the period. As a result, the reported revenues and expenses of our international subsidiaries would decrease if the U.S. dollar increased in value in relation to other currencies, including the euro, Australian dollar or Japanese yen.

Future sales of our common stock in the public market, or the issuance of other equity securities, may adversely affect the market price of our common stock and the value of our senior notes.

Sales of a substantial number of shares of our common stock or other equity-related securities in the public market could depress the market price of our common stock, senior notes, or both. We cannot predict the effect that future sales of our common stock or other equity-related securities, including the exercise and/or sale of the equity securities held by entities affiliated with Rhône Capital LLC, would have on the market price of our common stock or the value of our senior notes.

Actions by our licensee partners could adversely impact our brand reputation.

We have licensed certain product categories to third party licensees which have the right to design, source, and sell certain products bearing our trademarks. Failure of our licensees to source quality products, execute sales plans, or comply with laws, regulations, or other standards could harm the reputation of our brands and thereby have an adverse effect on our business, financial condition, and results of operations.

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Employment related matters may affect our profitability.

As of January 31, 2014, we had no unionized employees, but certain French employees are represented by workers’ councils. As we have little control over union activities, we could face difficulties in the future should our workforce become unionized. There can be no assurance that we will not experience work stoppages or other labor problems in the future with our non-unionized employees or employees represented by workers’ councils.

The effects of war, acts of terrorism, natural disasters or other unforeseen wide-scale events could have a material adverse effect on our operating results and financial condition.

The continued threat of terrorism, and associated heightened security measures and military actions in response to acts of terrorism, has disrupted commerce and has intensified uncertainties in the U.S. and international economies. Any further acts of terrorism, escalated hostilities, a future war, or a widespread natural or other disaster, such as the earthquake and resulting tsunami and radioactivity issues in Japan, may disrupt commerce, undermine consumer confidence and lead to a further downturn in the U.S. or international economies, which could negatively impact our revenues. Furthermore, an act of terrorism, war or the implementation of trade sanctions, or the threat thereof, or any natural or other disaster that results in unforeseen interruptions of commerce could negatively impact our business by interfering with our ability to obtain products from our manufacturers.

Failure to maintain adequate financial and management processes and controls could lead to errors in our financial reporting and could adversely affect our business.

We are required to document and test our internal controls over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 (“SOX 404”). As a result, we have incurred and expect to continue to incur substantial expenses to comply with SOX 404 requirements. If, for any reason, our SOX 404 compliance efforts fail to result in an unqualified opinion regarding the effectiveness of our internal controls, we could be subject to regulatory scrutiny and a loss of public confidence, which could have a material adverse effect on our business, stock price and ability to attract credit. In addition, if we do not maintain adequate financial and management personnel, processes and controls, we may not be able to: (1) accurately report our financial performance on a timely basis, which could cause a decline in our stock price and adversely affect our ability to raise capital, our results of operations, and our financial condition; and (2) appropriately manage or control our operations, which could adversely impact our results of operations.

If our goodwill, other intangible assets, or other fixed assets become impaired, we may be required to record a significant charge to our earnings.

We may be required to record future impairments of goodwill to the extent the fair value of any of our reporting units becomes less than its carrying value. Our estimates of fair value are based on assumptions about future cash flows of each reporting unit, discount rates applied to these cash flows and current market estimates of value. Based on the uncertainty of future revenue growth rates, gross profit performance, and other assumptions used to estimate goodwill recoverability, future reductions in our expected cash flows could cause a material non-cash impairment charge of goodwill, which could have a material adverse effect on our results of operations and financial condition.

We also have certain other intangible assets including, but not limited to, intellectual property and deferred tax assets, as well as fixed assets in our Company-owned retail stores, which could be at risk of impairment or may require valuation reserves based upon anticipated future benefits to be derived from such assets. Any change in the valuation of such assets could have a material effect on our profitability.

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Item 6. Exhibits
2.1	Stock Purchase Agreement dated October 22, 2013 by and among Quiksilver, Inc., QS Wholesale, Inc. and Extreme Holdings, Inc. (incorporated by reference to Exhibit 2.1 of the Company’s Current Report on Form 8-K filed on October 28, 2013).
3.1	Restated Certificate of Incorporation of Quiksilver, Inc., as amended (incorporated by reference to Exhibit 3.1 of the Company’s Annual Report on Form 10-K for the year ended October 31, 2004).
3.2	Certificate of Amendment of Restated Certificate of Incorporation of Quiksilver, Inc. (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended April 30, 2005).
3.3	Certificate of Designation of the Series A Convertible Preferred Stock of Quiksilver, Inc. (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on August 4, 2009).
3.4	Certificate of Amendment of Restated Certificate of Incorporation of Quiksilver, Inc. (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on April 1, 2010).
3.5	Amended and Restated Bylaws of Quiksilver, Inc. (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on January 3, 2013).
4.1	Indenture, dated as of December 10, 2010, by and among Boardriders S.A., Quiksilver, Inc., as guarantor, the subsidiary guarantor parties thereto, and Deutsche Trustee Company Limited, as trustee, Deutsche Bank Luxembourg S.A., as registrar and transfer agent, and Deutsche Bank AG, London Branch, as principal paying agent and common depositary (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K filed December 13, 2010).
4.2	Indenture, dated as of July 16, 2013, related to the $280,000,000 aggregate principal amount 7.875% Senior Secured Notes due 2018, by and among Quiksilver, Inc., QS Wholesale, Inc., the subsidiary guarantor parties thereto, and Wells Fargo Bank, National Association, as trustee and collateral agent, including the Form of Note attached thereto (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K filed July 16, 2013).
4.3	Indenture, dated as of July 16, 2013, related to the $225,000,000 aggregate principal amount of their 10.000% Senior Notes due 2020, by and among Quiksilver, Inc., QS Wholesale, Inc., the subsidiary guarantor parties thereto, and Wells Fargo Bank, National Association, as trustee, including the Form of Note attached thereto (incorporated by reference to Exhibit 4.2 of the Company’s Current Report on Form 8-K filed July 16, 2013).
10.1	English Translation of Agreement, dated as of October 31, 2013, by and among Na Pali S.A.S., Emerald Coast S.A.S., Kauai GmBH, Lanai Ltd., Sumbawa SL and Eurofactor (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed November 6, 2013).
31.1	Rule 13a-14(a)/15d-14(a) Certifications – Principal Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certifications – Principal Financial Officer
32.1	Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002 – Chief Executive Officer
32.2	Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002 – Chief Financial Officer
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

March 7, 2014

QUIKSILVER, INC.

/s/ Richard Shields

Richard Shields

Chief Financial Officer

(Principal Financial and Accounting Officer)

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EX-31.1

Exhibit 31.1

§ 302 CERTIFICATION

I, Andrew P. Mooney, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Quiksilver, Inc.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 7, 2014	/s/ Andrew P. Mooney
	Andrew P. Mooney
	Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

§ 302 CERTIFICATION

I, Richard Shields, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Quiksilver, Inc.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report, based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 7, 2014	/s/ Richard Shields
	Richard Shields
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Quiksilver, Inc. (the “Company”) on Form 10-Q for the period ending January 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Andrew P. Mooney, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Andrew P. Mooney

Andrew P. Mooney

Chief Executive Officer

March 7, 2014

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Quiksilver, Inc. (the “Company”) on Form 10-Q for the period ending January 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard Shields, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Richard Shields

Richard Shields

Chief Financial Officer

March 7, 2014

XML

Earnings per Share and Stock-Based Compensation - Reconciliation of Denominator of Each Net Loss per Share (Detail) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Earnings Per Share [Abstract]
Shares used in computing basic net loss per share	169,747	165,767
Dilutive effect of stock options and restricted stock
Dilutive effect of stock warrants
Shares used in computing diluted net loss per share	169,747	165,767

XML

Debt - Additional Information (Detail) (USD $)	3 Months Ended		3 Months Ended
	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2014 U.S. and APAC [Member]	Jan. 31, 2014 EMEA [Member]	Jan. 31, 2014 Fair Value [Member]
Debt Instrument [Line Items]
Maximum cash borrowings and letters of credit		$ 272,000,000
Direct borrowings		68,000,000
Letters of credit outstanding		56,000,000
Amount of availability of remaining borrowings		92,000,000
Amount of remaining borrowing capacity available for letters of credit	1,963,000		53,000,000	56,000,000
Notes payable		17,000,000
Notes payable, due in next twelve months		16,000,000
Lines of credit and long-term debt fair value					937,000,000
Lines of credit and long-term debt carrying value					$ 865,000,000

XML

Intangible Assets and Goodwill - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Indefinite-lived Intangible Assets [Line Items]
Intangible amortization expense	$ 0.5	$ 0.5
Finite lived intangible asset residual value	0
Estimated annual amortization expense fiscal 2015	2
Estimated annual amortization expense fiscal 2016	2
Estimated annual amortization expense fiscal 2017	2
Estimated annual amortization expense fiscal 2018	1
Estimated annual amortization expense fiscal 2019	$ 1
Minimum [Member]
Indefinite-lived Intangible Assets [Line Items]
Estimated useful life of trademarks and licenses	10 years
Maximum [Member]
Indefinite-lived Intangible Assets [Line Items]
Estimated useful life of trademarks and licenses	25 years

XML

Derivative Financial Instruments - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Gains relating to hedging transactions, net of tax	$ 2
Reclassified into earnings net gain/(loss) relating to derivative contracts	$ (0.2)	$ 1.0

XML

Inventories, net - Inventories (Detail) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Inventory Disclosure [Abstract]
Raw materials	$ 3,993	$ 4,725
Work in-process	354	681
Finished goods	355,799	332,309
Inventory, net	$ 360,146	$ 337,715

XML

Stockholders' Equity and Non-controlling Interest (Tables)

3 Months Ended

Jan. 31, 2014

Equity [Abstract]

Summary of Changes in Equity

The following tables summarize the changes in equity attributable to Quiksilver, Inc. and the non-controlling interests of its consolidated subsidiaries:

In thousands First quarter ended January 31, 2014:	Attributable to Quiksilver, Inc.			Non- controlling Interest			Total Stockholders’ Equity
Balance, October 31, 2013	$	369,706		$	17,952		$	387,658
Stock compensation expense		5,063			—			5,063
Exercise of stock options		2,465			—			2,465
Employee stock purchase plan		673			—			673
Transactions with non-controlling interest holders		(10,839	)		(5,434	)		(16,273	)
Net income and other comprehensive income/(loss)		965			(464	)		501
Balance, January 31, 2014	$	368,033		$	12,054		$	380,087
First quarter ended January 31, 2013:
Balance, October 31, 2012	$	583,310		$	18,926		$	602,236
Stock compensation expense		7,336			—			7,336
Exercise of stock options		2,761			—			2,761
Employee stock purchase plan		557			—			557
Transactions with non-controlling interest holders		(44	)		44			—
Net loss and other comprehensive (loss)/income		(23,019	)		505			(22,514	)
Balance, January 31, 2013	$	570,901		$	19,475		$	590,376

XML

Derivative Financial Instruments - Fair Values of Assets and Liabilities Measured and Recognized at Fair Value (Detail) (Fair Value, Measurements, Recurring [Member], USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Derivative liabilities:
Total fair value	$ 4,473	$ (905)
Other Receivables [Member]
Derivative assets:
Derivative assets	4,026	2,026
Accrued Liabilities [Member]
Derivative liabilities:
Derivative liabilities	(74)	(3,313)
Other Assets [Member]
Derivative assets:
Derivative assets	521	382
Level 1 [Member]
Derivative liabilities:
Total fair value
Level 1 [Member] | Other Receivables [Member]
Derivative assets:
Derivative assets
Level 1 [Member] | Accrued Liabilities [Member]
Derivative liabilities:
Derivative liabilities
Level 1 [Member] | Other Assets [Member]
Derivative assets:
Derivative assets
Level 2 [Member]
Derivative liabilities:
Total fair value	4,473	(905)
Level 2 [Member] | Other Receivables [Member]
Derivative assets:
Derivative assets	4,026	2,026
Level 2 [Member] | Accrued Liabilities [Member]
Derivative liabilities:
Derivative liabilities	(74)	(3,313)
Level 2 [Member] | Other Assets [Member]
Derivative assets:
Derivative assets	521	382
Level 3 [Member]
Derivative liabilities:
Total fair value
Level 3 [Member] | Other Receivables [Member]
Derivative assets:
Derivative assets
Level 3 [Member] | Accrued Liabilities [Member]
Derivative liabilities:
Derivative liabilities
Level 3 [Member] | Other Assets [Member]
Derivative assets:
Derivative assets

XML

Basis of Presentation (Policies)

3 Months Ended

Jan. 31, 2014

Accounting Policies [Abstract]

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statement presentation.

New Accounting Pronouncements

In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 provides guidance on the presentation of unrecognized tax benefits, reflecting the manner in which an entity would settle, at the reporting date, any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This accounting standard will be effective for the Company beginning November 1, 2014, with early adoption permitted. The Company did early adopt this guidance effective November 1, 2013 and the adoption did not have a material impact on the Company’s consolidated financial position or results of operations.

Operating Segments

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company operates in the outdoor market of the action sports industry in which the Company designs, markets and distributes apparel, footwear, accessories and related products. The Company currently operates in four segments: the Americas, EMEA, and APAC, each of which sells a full range of the Company’s products, as well as Corporate Operations. The Americas segment, consisting of North, South and Central America, includes revenues primarily from the United States, Canada, Brazil and Mexico. The EMEA segment, consisting of Europe, the Middle East and Africa, includes revenues primarily from continental Europe, the United Kingdom, Russia and South Africa. The APAC segment, consisting of Asia and the Pacific Rim, includes revenues primarily from Australia, Japan, New Zealand, South Korea, Taiwan and Indonesia. Costs that support all segments, including trademark protection, trademark maintenance and licensing functions, are part of Corporate Operations. Corporate Operations also includes sourcing income and gross profit earned from the Company’s licensees.

Earnings per Share and Stock-Based Compensation

The Company reports basic and diluted earnings per share (“EPS”). Basic EPS is based on the weighted average number of shares outstanding during the period, while diluted EPS additionally includes the dilutive effect of the Company’s outstanding stock options, warrants and shares of restricted stock computed using the treasury stock method.

Income Taxes

Each reporting period, the Company evaluates the realizability of all of its deferred tax assets in each tax jurisdiction. As of January 31, 2014, the Company continued to maintain a full valuation allowance against its net deferred tax assets in certain jurisdictions in each of its four operating segments due to sustained taxable losses. As a result of the valuation allowances recorded, no tax benefits have been recognized for losses incurred in those tax jurisdictions.

The Company’s sale of the Mervin and Hawk businesses generated income tax expense of approximately $10 million within discontinued operations during the first quarter of fiscal 2014. However, as the Company does not expect to pay income tax after application of available loss carryforwards, an offsetting income tax benefit was recognized within continuing operations. Before this tax benefit, the Company generated income tax expense in the first quarter of fiscal 2014 and 2013 due to being unable to record tax benefits against the losses in certain jurisdictions where we have previously recorded valuation allowances.  

During the next 12 months, it is reasonably possible that the Company’s liability for uncertain tax positions may change by a significant amount as a result of the resolution or payment of uncertain tax positions. The Company believes the outcomes which are reasonably possible within the next 12 months range from a reduction of the liability for unrecognized tax benefits of $9 million to an increase of the liability of $2 million, excluding penalties and interest for its existing tax positions.

Derivatives and Hedging

The Company is exposed to gains and losses resulting from fluctuations in foreign currency exchange rates relating to certain sales, royalty income and product purchases of its international subsidiaries that are denominated in currencies other than their functional currencies. The Company is also exposed to foreign currency gains and losses resulting from domestic transactions that are not denominated in U.S. dollars. Furthermore, the Company is exposed to gains and losses resulting from the effect that fluctuations in foreign currency exchange rates have on the reported results in the Company’s consolidated financial statements due to the translation of the operating results and financial position of the Company’s international subsidiaries. As part of its overall strategy to manage the level of exposure to the risk of fluctuations in foreign currency exchange rates, the Company uses various foreign currency exchange contracts and intercompany loans.

The Company accounts for all of its cash flow hedges under ASC 815, “Derivatives and Hedging,” which requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheet. In accordance with ASC 815, the Company designates forward contracts as cash flow hedges of forecasted purchases of commodities.

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. As of January 31, 2014, the Company was hedging forecasted transactions expected to occur through June 2015. Assuming January 31, 2014 exchange rates remain constant, $2 million of gains, net of tax, related to hedges of these transactions are expected to be reclassified into earnings over the next 17 months.

On the date the Company enters into a derivative contract, management designates the derivative as a hedge of the identified exposure. Before entering into various hedge transactions, the Company formally documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy. In this documentation, the Company identifies the asset, liability, firm commitment, or forecasted transaction that has been designated as a hedged item and indicates how the hedging instrument is expected to hedge the risks related to the hedged item. The Company formally measures effectiveness of its hedging relationships both at the hedge inception and on an ongoing basis in accordance with its risk management policy. The Company would discontinue hedge accounting prospectively (i) if management determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item, (ii) when the derivative expires or is sold, terminated, or exercised, (iii) if it becomes probable that the forecasted transaction being hedged by the derivative will not occur, (iv) if a hedged firm commitment no longer meets the definition of a firm commitment, or (v) if management determines that designation of the derivative as a hedge instrument is no longer appropriate. As a result of the expiration, sale, termination, or exercise of derivative contracts, the Company reclassified into earnings a net loss of $0.2 million for the quarter ended January 31, 2014, and a net gain of $1 million for the quarter ended January 31, 2013.

The Company enters into forward exchange and other derivative contracts with major banks and is exposed to exchange rate losses in the event of nonperformance by these banks. The Company anticipates, however, that these banks will be able to fully satisfy their obligations under the contracts. Accordingly, the Company does not require collateral or other security to support the contracts.

Fair Value Measurements

ASC 820, “Fair Value Measurements and Disclosures,” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three levels. These levels are:

• Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 assets and liabilities include debt and equity securities traded in an active exchange market, as well as U.S. Treasury securities.

• Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3 – Valuation is determined using model-based techniques with significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of third party pricing services, option-pricing models, discounted cash flow models and similar techniques.

The Company’s derivative assets and liabilities include foreign exchange derivatives that are measured at fair value using observable market inputs such as forward rates, interest rates, the Company’s credit risk and the Company’s counterparties’ credit risks. Based on these inputs, the Company’s derivative assets and liabilities are classified within Level 2 of the valuation hierarchy.

XML

Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended
	Jan. 31, 2014 Segment	Jan. 31, 2013
Income Tax Contingency [Line Items]
Number of segments	4
Income tax expense	$ 10,477,000	$ 275,000
Liability for uncertain tax positions	12,000,000
Uncertain tax position liabilities excluding interest and penalties	11,000,000
Reasonably possible outcome within the next 12 months range, reduction of liability for unrecognized tax benefits excluding penalties and interest	9,000,000
Reasonably possible outcome within the next 12 months range, increase of liability for unrecognized tax benefits excluding penalties and interest	2,000,000
Mervin and Hawk Businesses [Member]
Income Tax Contingency [Line Items]
Income tax expense	$ 10,000,000

XML

Earnings per Share and Stock-Based Compensation - Schedule of Activity Related to Performance Based Equity Instruments (Detail)	3 Months Ended
	Jan. 31, 2014
Stockholders' Equity [Line Items]
Outstanding, October 31, 2013	8,829,618
Granted
Exercised	(568,290)
Canceled	(626,750)
Outstanding, January 31, 2014	7,634,578
Performance Options [Member]
Stockholders' Equity [Line Items]
Outstanding, October 31, 2013	688,000
Granted
Exercised	(12,000)
Canceled	(36,000)
Outstanding, January 31, 2014	640,000
Performance Restricted Stock Units [Member]
Stockholders' Equity [Line Items]
Outstanding, October 31, 2013	11,675,782
Granted
Exercised
Canceled	(30,937)
Outstanding, January 31, 2014	11,644,845

XML

Segment Information - Additional Information (Detail)	3 Months Ended
	Jan. 31, 2014 Segment
Segment Reporting [Abstract]
Number of segments	4

XML

Restructuring Charges - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Restructuring And Related Activities [Abstract]
Selling, general and administrative expense	$ 2
Severance charges		$ 3

XML

Condensed Consolidating Financial Information - Condensed Consolidating Statement of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Cash flows from operating activities:
Net (loss)/income	$ 14,923	$ (30,624)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income (loss) from discontinued operations	(37,617)	(625)
Depreciation and amortization	10,545	11,943
Stock based compensation	5,063	7,336
Provision for doubtful accounts	1,662	1,248
Asset impairments	883	3,168
Equity in earnings	352	(11)
Non-cash interest expense	914	911
Deferred income taxes	5	1,135
Other adjustments to reconcile net (loss)/income	2,799	2,661
Changes in operating assets and liabilities:
Trade accounts receivable	64,203	85,538
Inventories	(32,663)	(69,405)
Other operating assets and liabilities	(35,185)	(3,313)
Cash (used in)/provided by operating activities of continuing operations	(4,116)	9,962
Cash (used in)/provided by operating activities of discontinued operations	(7,195)	13,354
Net cash (used in)/provided by operating activities	(11,311)	23,316
Cash flows from investing activities
Capital expenditures	(10,558)	(12,100)
Changes in restricted cash	(60,617)
Cash used in investing activities of continuing operations	(71,175)	(12,100)
Cash provided by/(used in) investing activities of discontinued operations	76,719	(678)
Net cash (used in)/ provided by investing activities	5,544	(12,778)
Cash flows from financing activities:
Borrowings on lines of credit		1,963
Payments on lines of credit		(8,042)
Borrowings on long-term debt	70,966	47,879
Payments on long term debt	(50,370)	(23,200)
Stock option exercises and employee stock purchases	3,138	3,319
Payments of debt issuance costs	(335)
Intercompany
Cash provided by financing activities of continuing operations	23,399	21,919
Cash provided by financing activities of discontinued operations
Net cash provided by/(used in) financing activities	23,399	21,919
Effect of exchange rate changes on cash	(4,924)	(5,919)
Net (decrease)/increase in cash and cash equivalents	12,708	26,538
Cash and cash equivalents, beginning of period	57,280	41,823
Cash and cash equivalents, end of period	69,988	68,361
Quiksilver, Inc. [Member]
Cash flows from operating activities:
Net (loss)/income	15,387	(31,129)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income (loss) from discontinued operations
Depreciation and amortization	585	445
Stock based compensation	5,063	7,336
Asset impairments
Equity in earnings	(35,932)	7,847
Non-cash interest expense	462	392
Other adjustments to reconcile net (loss)/income	35	154
Changes in operating assets and liabilities:
Other operating assets and liabilities	12,141	1,707
Cash (used in)/provided by operating activities of continuing operations	(2,259)	(13,248)
Net cash (used in)/provided by operating activities	(2,259)	(13,248)
Cash flows from investing activities
Capital expenditures	(1,970)	(1,708)
Cash used in investing activities of continuing operations	(1,970)	(1,708)
Net cash (used in)/ provided by investing activities	(1,970)	(1,708)
Cash flows from financing activities:
Borrowings on lines of credit
Payments on lines of credit
Borrowings on long-term debt
Payments on long term debt
Stock option exercises and employee stock purchases	3,138	3,319
Payments of debt issuance costs	(373)
Intercompany	1,463	11,732
Cash provided by financing activities of continuing operations	4,228	15,051
Cash provided by financing activities of discontinued operations
Net cash provided by/(used in) financing activities	4,228	15,051
Effect of exchange rate changes on cash
Net (decrease)/increase in cash and cash equivalents	(1)	95
Cash and cash equivalents, beginning of period	35	324
Cash and cash equivalents, end of period	34	419
QS Wholesale, Inc. [Member]
Cash flows from operating activities:
Net (loss)/income	6,787	(135)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income (loss) from discontinued operations	(23,922)
Depreciation and amortization	2,589	2,789
Provision for doubtful accounts	1,088	226
Asset impairments
Equity in earnings	74	(204)
Non-cash interest expense	239	330
Other adjustments to reconcile net (loss)/income	(9)
Changes in operating assets and liabilities:
Trade accounts receivable	12,327	14,023
Inventories	(9,271)	(19,663)
Other operating assets and liabilities	(11,998)	7,235
Cash (used in)/provided by operating activities of continuing operations	(22,096)	4,601
Net cash (used in)/provided by operating activities	(22,096)	4,601
Cash flows from investing activities
Capital expenditures	(2,397)	(1,517)
Changes in restricted cash	(60,214)
Cash used in investing activities of continuing operations	(62,611)	(1,517)
Cash provided by/(used in) investing activities of discontinued operations	58,060
Net cash (used in)/ provided by investing activities	(4,551)	(1,517)
Cash flows from financing activities:
Borrowings on lines of credit
Payments on lines of credit
Borrowings on long-term debt	40,500	23,000
Payments on long term debt	(18,500)	(23,200)
Stock option exercises and employee stock purchases
Payments of debt issuance costs	38
Intercompany	8,134	(636)
Cash provided by financing activities of continuing operations	30,172	(836)
Cash provided by financing activities of discontinued operations
Net cash provided by/(used in) financing activities	30,172	(836)
Effect of exchange rate changes on cash
Net (decrease)/increase in cash and cash equivalents	3,525	2,248
Cash and cash equivalents, beginning of period	3,733	1,966
Cash and cash equivalents, end of period	7,258	4,214
Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net (loss)/income	25,081	(13,837)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income (loss) from discontinued operations	(13,531)	170
Depreciation and amortization	1,330	1,220
Provision for doubtful accounts	(209)	(1,427)
Asset impairments	222	1,335
Other adjustments to reconcile net (loss)/income	(219)	(105)
Changes in operating assets and liabilities:
Trade accounts receivable	13,169	35,553
Inventories	(2,884)	(6,439)
Other operating assets and liabilities	(16,366)	(13,751)
Cash (used in)/provided by operating activities of continuing operations	6,593	2,719
Cash (used in)/provided by operating activities of discontinued operations	(1,861)	8,512
Net cash (used in)/provided by operating activities	4,732	11,231
Cash flows from investing activities
Capital expenditures	(1,299)	(1,547)
Cash used in investing activities of continuing operations	(1,299)	(1,547)
Cash provided by/(used in) investing activities of discontinued operations	18,991	(33)
Net cash (used in)/ provided by investing activities	17,692	(1,580)
Cash flows from financing activities:
Borrowings on lines of credit
Payments on lines of credit
Borrowings on long-term debt
Payments on long term debt
Stock option exercises and employee stock purchases
Intercompany	(24,659)	(11,742)
Cash provided by financing activities of continuing operations	(24,659)	(11,742)
Cash provided by financing activities of discontinued operations
Net cash provided by/(used in) financing activities	(24,659)	(11,742)
Effect of exchange rate changes on cash
Net (decrease)/increase in cash and cash equivalents	(2,235)	(2,091)
Cash and cash equivalents, beginning of period	296	(1,831)
Cash and cash equivalents, end of period	(1,939)	(3,922)
Non-Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net (loss)/income	12,867	5,574
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income (loss) from discontinued operations	(164)	(769)
Depreciation and amortization	6,041	7,489
Provision for doubtful accounts	783	2,449
Asset impairments	661	1,833
Equity in earnings	352	(11)
Non-cash interest expense	213	189
Deferred income taxes	5	1,135
Other adjustments to reconcile net (loss)/income	2,992	2,612
Changes in operating assets and liabilities:
Trade accounts receivable	38,707	35,962
Inventories	(29,849)	(41,888)
Other operating assets and liabilities	(18,962)	1,496
Cash (used in)/provided by operating activities of continuing operations	13,646	16,071
Cash (used in)/provided by operating activities of discontinued operations	(5,334)	4,661
Net cash (used in)/provided by operating activities	8,312	20,732
Cash flows from investing activities
Capital expenditures	(4,892)	(7,328)
Changes in restricted cash	(403)
Cash used in investing activities of continuing operations	(5,295)	(7,328)
Cash provided by/(used in) investing activities of discontinued operations	(332)	(645)
Net cash (used in)/ provided by investing activities	(5,627)	(7,973)
Cash flows from financing activities:
Borrowings on lines of credit		1,963
Payments on lines of credit		(8,042)
Borrowings on long-term debt	30,466	24,879
Payments on long term debt	(31,870)
Stock option exercises and employee stock purchases
Intercompany	15,062	646
Cash provided by financing activities of continuing operations	13,658	19,446
Cash provided by financing activities of discontinued operations
Net cash provided by/(used in) financing activities	13,658	19,446
Effect of exchange rate changes on cash	(4,924)	(5,919)
Net (decrease)/increase in cash and cash equivalents	11,419	26,286
Cash and cash equivalents, beginning of period	53,216	41,364
Cash and cash equivalents, end of period	64,635	67,650
Eliminations [Member]
Cash flows from operating activities:
Net (loss)/income	(45,199)	8,903
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Income (loss) from discontinued operations		(26)
Asset impairments
Equity in earnings	35,858	(7,643)
Changes in operating assets and liabilities:
Inventories	9,341	(1,415)
Cash (used in)/provided by operating activities of continuing operations		(181)
Cash (used in)/provided by operating activities of discontinued operations		181
Cash flows from financing activities:
Borrowings on lines of credit
Payments on lines of credit
Borrowings on long-term debt
Payments on long term debt
Stock option exercises and employee stock purchases
Intercompany
Cash provided by financing activities of continuing operations
Cash provided by financing activities of discontinued operations
Net cash provided by/(used in) financing activities
Effect of exchange rate changes on cash
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period

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Discontinued Operations - Summarized Results from Discontinued Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Discontinued Operations And Disposal Groups [Abstract]
Revenues, net	$ 20,162	$ 18,829
Income before income taxes	48,094	900
Provision for income taxes	10,477	275
Income from discontinued operations	37,617	625
Less: net loss/(income) attributable to non-controlling interest	103	(186)
Income from discontinued operations attributable to Quiksilver, Inc.	$ 37,720	$ 439

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Intangible Assets and Goodwill - Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Indefinite-lived Intangible Assets [Line Items]
Gross Amount, Total	$ 164,382	$ 164,843
Amortization	(29,717)	(30,247)
Net Book Value	134,665	134,596
Amortizable Trademarks [Member]
Indefinite-lived Intangible Assets [Line Items]
Gross Amount	20,255	19,810
Amortization	(11,870)	(11,534)
Net Book Value	8,385	8,276
Amortizable Licenses [Member]
Indefinite-lived Intangible Assets [Line Items]
Gross Amount	11,761	12,749
Amortization	(11,761)	(12,749)
Other Amortizable Intangibles [Member]
Indefinite-lived Intangible Assets [Line Items]
Gross Amount	8,278	8,185
Amortization	(6,086)	(5,964)
Net Book Value	2,192	2,221
Non-Amortizable Trademarks [Member]
Indefinite-lived Intangible Assets [Line Items]
Gross Amount	124,088	124,099
Net Book Value	$ 124,088	$ 124,099

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Basis of Presentation

3 Months Ended

Jan. 31, 2014

Accounting Policies [Abstract]

Basis of Presentation

1. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statement presentation.

Quiksilver, Inc. and its subsidiaries (the “Company”) has included all adjustments, consisting only of normal and recurring adjustments, necessary for a fair presentation of the results of operations for the first quarter (three months) ended January 31, 2014 and 2013. References to any particular fiscal year refer to the year ended October 31 of that year (for example, “fiscal 2014” refers to the year ending October 31, 2014). The condensed consolidated financial statements and notes thereto should be read in conjunction with the audited financial statements and notes for the fiscal year ended October 31, 2013 included in the Company’s most recent Annual Report on Form 10-K. Interim results are not necessarily indicative of results for the full year.

In November 2013, the Company sold Mervin Manufacturing, Inc., its subsidiary that manufactured snowboards and related products under the “Lib Technologies” and “GNU” brands, (“Mervin”). In January 2014, the Company sold substantially all of the assets of Hawk Designs, Inc., its subsidiary that owned and operated the “Hawk” brand, (“Hawk”). Additionally, the Company is pursuing strategic alternatives for its majority stake in the U.K.-based Surfdome Shop, Ltd., a multi-brand e-commerce retailer, (“Surfdome”). Each of the Company’s Mervin, Hawk and Surfdome businesses were classified as “held for sale” as of October 31, 2013 and are presented as discontinued operations in the accompanying condensed consolidated financial statements for all periods presented.

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Discontinued Operations - Components of Major Assets and Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Assets:
Receivables, net	$ 369	$ 24,229
Inventories	12,865	25,915
Goodwill	16,821	16,109
Other	7,336	9,388
Total assets	37,391	75,641
Liabilities:
Accounts payable	6,706	13,039
Accrued liabilities	2,369	3,381
Other	1,577	1,719
Total liabilities	$ 10,652	$ 18,139

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Earnings per Share and Stock-Based Compensation - Schedule of Changes in Shares under Option, Excluding Performance Based Options (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Jan. 31, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Outstanding, October 31, 2013	8,829,618
Granted, Shares
Exercised, Shares	(568,290)
Canceled, Shares	(626,750)
Outstanding, January 31, 2014	7,634,578
Options exercisable, January 31, 2014	5,633,427
Outstanding, Weighted Average Price, beginning balance	$ 4.83
Granted, Weighted Average Price
Exercised, Weighted Average Price	$ 4.24
Canceled, Weighted Average Price	$ 8.59
Outstanding, Weighted Average Price, ending balance	$ 4.56
Options exercisable, Weighted Average Price, ending balance	$ 4.16
Outstanding, Weighted Average Life, ending balance	5 years 6 months
Options exercisable, Weighted Average Life, January 31, 2014	4 years 9 months 18 days
Exercised, Aggregate Intrinsic Value	$ 2,370
Outstanding, Aggregate Intrinsic Value, ending balance	21,110
Options exercisable, January 31, 2014, Aggregate Intrinsic Value	$ 18,344

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Intangible Assets and Goodwill (Tables)

3 Months Ended

Jan. 31, 2014

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets consisted of the following as of the dates indicated:

	January 31, 2014							October 31, 2013
In thousands	Gross Amount		Amorti- zation			Net Book Value		Gross Amount		Amorti- zation			Net Book Value
Non-amortizable trademarks	$	124,088	$	—		$	124,088	$	124,099	$	—		$	124,099
Amortizable trademarks		20,255		(11,870	)		8,385		19,810		(11,534	)		8,276
Amortizable licenses		11,761		(11,761	)		—		12,749		(12,749	)		—
Other amortizable intangibles		8,278		(6,086	)		2,192		8,185		(5,964	)		2,221
	$	164,382	$	(29,717	)	$	134,665	$	164,843	$	(30,247	)	$	134,596

Summary of Goodwill by Segment

A summary of goodwill by segment, and in total, and changes in the carrying amounts, as of the dates indicated are as follows:

In thousands	Americas			EMEA			APAC			Consolidated
Gross goodwill	$	75,974		$	174,869		$	135,752		$	386,595
Accumulated impairment losses		—			—			(129,545	)		(129,545	)
Net goodwill at Nov. 1, 2012	$	75,974		$	174,869		$	6,207		$	257,050
Foreign currency translation and other		(1,031	)		5,606			—			4,575
Gross goodwill		74,943			180,475			135,752			391,170
Accumulated impairment losses		—			—			(129,545	)		(129,545	)
Net goodwill at Oct. 31, 2013	$	74,943		$	180,475		$	6,207		$	261,625
Foreign currency translation and other		(517	)		(2,870	)		—			(3,387	)
Gross goodwill		74,426			177,605			135,752			387,783
Accumulated impairment losses		—			—			(129,545	)		(129,545	)
Net goodwill at Jan. 31, 2014	$	74,426		$	177,605		$	6,207		$	258,238

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Inventories, net (Tables)

3 Months Ended

Jan. 31, 2014

Inventory Disclosure [Abstract]

Inventories

Inventories, net consisted of the following as of the dates indicated:

In thousands	January 31, 2014		October 31, 2013
Raw materials	$	3,993	$	4,725
Work in-process		354		681
Finished goods		355,799		332,309
	$	360,146	$	337,715

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Derivative Financial Instruments - Outstanding Derivative Contracts Entered into Hedge Forecasted Purchases (Detail) (Inventory Commodity [Member], United States Dollars [Member], USD $) In Thousands, unless otherwise specified	Jan. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional Amount	$ 250,613
Fair Value	$ 4,473
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maturity	2014-02
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maturity	2015-06

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Earnings per Share and Stock-Based Compensation - Schedule of Changes in Non-Vested Shares under Option, Excluding Performance Based Options (Detail) (Non-Performance Based Options [Member], USD $)	3 Months Ended
	Jan. 31, 2014
Non-Performance Based Options [Member]
Stockholders' Equity [Line Items]
Non-vested, beginning balance, Shares	2,784,826
Granted, Shares
Vested, Shares	(778,675)
Canceled, Shares	(5,000)
Non-vested, ending balance, Shares	2,001,151
Non-vested, beginning balance, Weighted-Average Grant Date Fair Value	$ 2.95
Granted, Weighted-Average Grant Date Fair Value
Vested, Weighted-Average Grant Date Fair Value	$ 2.28
Canceled, Weighted-Average Grant Date Fair Value	$ 3.51
Non-vested, ending balance, Weighted-Average Grant Date Fair Value	$ 3.19

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Restructuring Charges (Tables)

3 Months Ended

Jan. 31, 2014

Restructuring And Related Activities [Abstract]

Activity and Liability Balances

Activity and liability balances recorded as part of the 2013 Plan and 2011 Plan were as follows:

In thousands	Workforce			Facility & Other			Total
Balance, November 1, 2012	$	5,335		$	6,856		$	12,191
Charged to expense		22,671			5,838			28,509
Cash payments		(15,847	)		(5,163	)		(21,010	)
Adjustments		—			(592	)		(592	)
Balance, October 31, 2013	$	12,159		$	6,939		$	19,098
Charged to expense		2,553			570			3,123
Cash payments		(5,925	)		(514	)		(6,439	)
Balance, January 31, 2014	$	8,787		$	6,995		$	15,782

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Debt (Tables)

3 Months Ended

Jan. 31, 2014

Debt Disclosure [Abstract]

Summary of Lines of Credit and Long-term Debt

A summary of borrowings under lines of credit and long-term debt as of the dates indicated is as follows:

In thousands	January 31, 2014		October 31, 2013
EMEA credit facilities	$	25,730	$	21,594
2017 Notes		272,220		274,952
ABL Credit Facility		42,260		27,408
2018 Notes		278,664		278,612
2020 Notes		222,357		222,285
Capital lease obligations and other borrowings		23,417		6,449
	$	864,648	$	831,300

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Cash flows from operating activities:
Net income/(loss)	$ 14,923	$ (30,624)
Adjustments to reconcile net income/(loss) to net cash (used in)/provided by operating activities:
Income from discontinued operations	(37,617)	(625)
Depreciation and amortization	10,545	11,943
Stock-based compensation	5,063	7,336
Provision for doubtful accounts	1,662	1,248
(Gain)/loss on disposal of fixed assets	(266)	2
Unrealized foreign currency loss	3,065	2,659
Asset impairments	883	3,168
Non-cash interest expense	914	911
Equity in earnings	352	(11)
Deferred income taxes	5	1,135
Changes in operating assets and liabilities:
Trade accounts receivable	64,203	85,538
Other receivables	(825)	3,475
Inventories	(32,663)	(69,405)
Prepaid expenses and other current assets	(7,372)	(11,605)
Other assets	2,628	3,330
Accounts payable	(28,498)	16,673
Accrued liabilities and other long-term liabilities	124	(14,012)
Income taxes payable	(1,242)	(1,174)
Cash (used in)/provided by operating activities of continuing operations	(4,116)	9,962
Cash (used in)/provided by operating activities of discontinued operations	(7,195)	13,354
Net cash (used in)/provided by operating activities	(11,311)	23,316
Cash flows from investing activities:
Capital expenditures	(10,558)	(12,100)
Changes in restricted cash	(60,617)
Cash used in investing activities of continuing operations	(71,175)	(12,100)
Cash provided by/(used in) investing activities of discontinued operations	76,719	(678)
Net cash provided by/(used in) investing activities	5,544	(12,778)
Cash flows from financing activities:
Borrowings on lines of credit		1,963
Payments on lines of credit		(8,042)
Borrowings on long-term debt	70,966	47,879
Payments on long-term debt	(50,370)	(23,200)
Stock option exercises and employee stock purchases	3,138	3,319
Payments of debt issuance costs	(335)
Cash provided by financing activities of continuing operations	23,399	21,919
Cash provided by financing activities of discontinued operations
Net cash provided by financing activities	23,399	21,919
Effect of exchange rate changes on cash	(4,924)	(5,919)
Net increase in cash and cash equivalents	12,708	26,538
Cash and cash equivalents, beginning of period	57,280	41,823
Cash and cash equivalents, end of period	69,988	68,361
Cash paid during the period for:
Interest	12,894	13,431
Income taxes	6,516	2,731
Non-cash investing activities:
Capital expenditures accrued at period end	3,453	5,750
Non-cash financing activities:
Debt issued for purchase of non-controlling interest	$ 17,388

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Derivative Financial Instruments (Tables)

3 Months Ended

Jan. 31, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Outstanding Derivative Contracts Entered into Hedge Forecasted Purchases

As of January 31, 2014, the Company had the following outstanding derivative contracts that were entered into to hedge forecasted purchases:

In thousands	Commodity		Notional Amount		Maturity		Fair Value
United States dollars		Inventory	$	250,613		Feb 2014 –June 2015	$	4,473

Fair Values of Assets and Liabilities Measured and Recognized at Fair Value

The following tables reflect the fair values of assets and liabilities measured and recognized at fair value on a recurring basis on the accompanying condensed consolidated balance sheets as of the dates indicated:

	Fair Value Measurements Using							Assets/(Liabilities)
In thousands	Level 1		Level 2			Level 3		At Fair Value
January 31, 2014:
Derivative assets:
Other receivables	$	—	$	4,026		$	—	$	4,026
Other assets		—		521			—		521
Derivative liabilities:
Accrued liabilities		—		(74	)		—		(74	)
Total fair value	$	—	$	4,473		$	—	$	4,473
October 31, 2013:
Derivative assets:
Other receivables	$	—	$	2,026		$	—	$	2,026
Other assets		—		382			—		382
Derivative liabilities:
Accrued liabilities		—		(3,313	)		—		(3,313	)
Total fair value	$	—	$	(905	)	$	—	$	(905	)

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Earnings per Share and Stock-Based Compensation - Reconciliation of Denominator of Each Net Loss per Share (Parenthetical) (Detail)	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Dilutive Stock Options and Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded in computing diluted net loss per share	3,974,000	3,391,000
Additional shares excluded from calculation of diluted EPS	3,856,000	7,932,000
Dilutive Stock Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded in computing diluted net loss per share	19,913,000	15,140,000
Additional shares excluded from calculation of diluted EPS	5,741,000	10,514,000

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Debt - Summary of Lines of Credit and Long-term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Debt Instrument [Line Items]
Credit facility	$ 68,000
Capital lease obligations and other borrowings	23,417	6,449
Lines of credit and long-term debt	864,648	831,300
2017 Notes [Member]
Debt Instrument [Line Items]
Lines of credit and long-term debt	272,220	274,952
2018 Notes [Member]
Debt Instrument [Line Items]
Lines of credit and long-term debt	278,664	278,612
2020 Notes [Member]
Debt Instrument [Line Items]
Lines of credit and long-term debt	222,357	222,285
EMEA [Member]
Debt Instrument [Line Items]
Credit facility	25,730	21,594
ABL Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility	$ 42,260	$ 27,408

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Condensed Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Income Statement [Abstract]
Revenues, net	$ 392,612	$ 412,189
Cost of goods sold	192,776	202,416
Gross profit	199,836	209,773
Selling, general and administrative expense	203,784	216,339
Asset impairments	883	3,168
Operating loss	(4,831)	(9,734)
Interest expense, net	19,420	15,501
Foreign currency loss	2,828	3,065
Loss before (benefit)/provision for income taxes	(27,079)	(28,300)
(Benefit)/provision for income taxes	(4,385)	2,949
Loss from continuing operations	(22,694)	(31,249)
Income from discontinued operations, net of tax (includes net gain on sales of businesses of $38,103, and $0, respectively)	37,617	625
Net income/(loss)	14,923	(30,624)
Less: net loss/(income) attributable to non-controlling interest	464	(505)
Net income/(loss) attributable to Quiksilver, Inc.	15,387	(31,129)
Loss per share from continuing operations attributable to Quiksilver, Inc.	$ (0.13)	$ (0.19)
Income per share from discontinued operations attributable to Quiksilver, Inc.	$ 0.22	$ 0.00
Net income/(loss) per share attributable to Quiksilver, Inc.	$ 0.09	$ (0.19)
Loss per share from continuing operations attributable to Quiksilver, Inc., assuming dilution	$ (0.13)	$ (0.19)
Income per share from discontinued operations attributable to Quiksilver, Inc., assuming dilution	$ 0.22	$ 0.00
Net income/(loss) per share attributable to Quiksilver, Inc., assuming dilution	$ 0.09	$ (0.19)
Weighted average common shares outstanding, basic and diluted	169,747	165,767
Amounts attributable to Quiksilver, Inc.:
Loss from continuing operations	(22,333)	(31,568)
Income from discontinued operations, net of tax	37,720	439
Net income/(loss) attributable to Quiksilver, Inc.	$ 15,387	$ (31,129)

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Restricted Cash - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014
Related Parties Textual [Abstract]
Restricted cash balance	$ 60,617

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Current assets:
Cash and cash equivalents	$ 69,988	$ 57,280
Restricted cash	60,617
Trade accounts receivable, less allowances of $61,534 (2014) and $60,912 (2013)	338,723	411,638
Other receivables	27,278	23,306
Inventories, net	360,146	337,715
Deferred income taxes - current	9,563	9,997
Prepaid expenses and other current assets	29,243	24,124
Current portion of assets held for sale	13,676	51,196
Total current assets	909,234	915,256
Fixed assets, less accumulated depreciation and amortization of $239,565 (2014) and $248,860 (2013)	224,914	231,261
Intangible assets, net	134,665	134,596
Goodwill	258,238	261,625
Other assets	50,389	53,287
Assets held for sale, net of current portion	23,715	24,445
Total assets	1,601,155	1,620,470
Current liabilities:
Accounts payable	168,005	201,675
Accrued liabilities	119,757	121,545
Current portion of long-term debt	43,424	23,488
Income taxes payable	1,913	3,912
Current portion of assets held for sale	9,075	16,420
Total current liabilities	342,174	367,040
Long-term debt, net of current portion	821,224	807,812
Other long-term liabilities	34,503	36,345
Deferred income taxes long-term	21,590	19,896
Assets held for sale, net of current portion	1,577	1,719
Total liabilities	1,221,068	1,232,812
Equity:
Preferred stock, $0.01 par value, authorized shares - 5,000,000; issued and outstanding shares - none
Common stock, $0.01 par value, authorized shares - 285,000,000; issued shares - 173,278,919 (2014) and 172,579,182 (2013)	1,733	1,726
Additional paid-in capital	574,081	576,726
Treasury stock, 2,885,200 shares	(6,778)	(6,778)
Accumulated deficit	(260,499)	(275,886)
Accumulated other comprehensive income	59,496	73,918
Total Quiksilver, Inc. stockholders' equity	368,033	369,706
Non-controlling interest	12,054	17,952
Total equity	380,087	387,658
Total liabilities and equity	$ 1,601,155	$ 1,620,470

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Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 73,918	$ 86,412
Changes in fair value, net of tax	(14,608)	9,159
Ending balance	59,496	94,522
Reclassification out of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net losses (gains) reclassified to COGS	186	(1,135)
Net losses reclassified to foreign currency loss		86
Derivative Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(4,591)	5,756
Changes in fair value, net of tax	6,107	(2,599)
Ending balance	1,702	2,108
Derivative Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net losses (gains) reclassified to COGS	186	(1,135)
Net losses reclassified to foreign currency loss		86
Foreign Currency Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	78,509	80,656
Changes in fair value, net of tax	(20,715)	11,758
Ending balance	$ 57,794	$ 92,414

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Discontinued Operations (Tables)

3 Months Ended

Jan. 31, 2014

Discontinued Operations And Disposal Groups [Abstract]

Summarized Results from Discontinued Operations

The operating results of discontinued operations for the first quarters of fiscal 2014 and 2013 are as follows:

	First Quarter Ended January 31,
In thousands	2014		2013
Revenues, net	$	20,162	$	18,829
Income before income taxes		48,094		900
Provision for income taxes		10,477		275
Income from discontinued operations		37,617		625
Less: net loss/(income) attributable to non-controlling interest		103		(186	)
Income from discontinued operations attributable to Quiksilver, Inc.	$	37,720	$	439

Components of Major Assets and Liabilities

The components of major assets and liabilities held for sale at January 31, 2014 and October 31, 2013 are as follows:

	January 31,		October 31,
In thousands	2014		2013
Assets:
Receivables, net	$	369	$	24,229
Inventories Inventories		12,865		25,915
Goodwill		16,821		16,109
Other		7,336		9,388
	$	37,391	$	75,641
Liabilities:
Accounts payable	$	6,706	$	13,039
Accrued liabilities		2,369		3,381
Other		1,577		1,719
	$	10,652	$	18,139

Total Assets Held for Sale

Total assets held for sale as of January 31, 2014 and October 31, 2013 by geographical segment was as follows:

	January 31,		October 31,
In thousands	2014		2013
Americas	$	—	$	27,398
EMEA		37,391		47,588
APAC		—		655
	$	37,391	$	75,641

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Condensed Consolidating Financial Information - Condensed Consolidating Statement of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Revenues, net	$ 392,612	$ 412,189
Cost of goods sold	192,776	202,416
Gross profit	199,836	209,773
Selling, general and administrative expense	203,784	216,339
Asset impairments	883	3,168
Operating (loss)/income	(4,831)	(9,734)
Interest expense, net	19,420	15,501
Foreign currency loss/(gain)	2,828	3,065
Equity in earnings
Loss before (benefit)/provision for income taxes	(27,079)	(28,300)
(Benefit)/provision for income taxes	(4,385)	2,949
Income/(loss) from continuing operations	(22,694)	(31,249)
Income from discontinued operations	37,617	625
Net income/(loss)	14,923	(30,624)
Net loss/(income) attributable to non-controlling interest	464	(505)
Net income/(loss) attributable to Quiksilver, Inc.	15,387	(31,129)
Other comprehensive (loss)/income	(14,422)	8,110
Comprehensive income/(loss) attributable to Quiksilver, Inc.	965	(23,019)
Quiksilver, Inc. [Member]
Condensed Financial Statements, Captions [Line Items]
Revenues, net	116	116
Cost of goods sold
Gross profit	116	116
Selling, general and administrative expense	9,025	15,975
Asset impairments
Operating (loss)/income	(8,909)	(15,859)
Interest expense, net	11,600	7,269
Foreign currency loss/(gain)	36	154
Equity in earnings	(35,932)	7,847
Loss before (benefit)/provision for income taxes	15,387	(31,129)
(Benefit)/provision for income taxes
Income/(loss) from continuing operations	15,387	(31,129)
Income from discontinued operations
Net income/(loss)	15,387	(31,129)
Net loss/(income) attributable to non-controlling interest
Net income/(loss) attributable to Quiksilver, Inc.	15,387	(31,129)
Other comprehensive (loss)/income	(14,422)	8,110
Comprehensive income/(loss) attributable to Quiksilver, Inc.	965	(23,019)
QS Wholesale, Inc. [Member]
Condensed Financial Statements, Captions [Line Items]
Revenues, net	84,004	88,519
Cost of goods sold	50,268	52,603
Gross profit	33,736	35,916
Selling, general and administrative expense	55,966	35,959
Asset impairments
Operating (loss)/income	(22,230)	(43)
Interest expense, net	1,010	1,469
Foreign currency loss/(gain)	(10)	14
Equity in earnings	74	(204)
Loss before (benefit)/provision for income taxes	(23,304)	(1,322)
(Benefit)/provision for income taxes	(6,169)	(1,187)
Income/(loss) from continuing operations	(17,235)	(135)
Income from discontinued operations	23,922
Net income/(loss)	6,787	(135)
Net loss/(income) attributable to non-controlling interest
Net income/(loss) attributable to Quiksilver, Inc.	6,787	(135)
Other comprehensive (loss)/income
Comprehensive income/(loss) attributable to Quiksilver, Inc.	6,787	(135)
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Revenues, net	97,975	110,462
Cost of goods sold	67,704	87,298
Gross profit	30,271	23,164
Selling, general and administrative expense	22,668	35,342
Asset impairments	222	1,335
Operating (loss)/income	7,381	(13,513)
Interest expense, net
Foreign currency loss/(gain)	(224)	64
Equity in earnings
Loss before (benefit)/provision for income taxes	7,605	(13,577)
(Benefit)/provision for income taxes	(3,945)	90
Income/(loss) from continuing operations	11,550	(13,667)
Income from discontinued operations	13,531	(170)
Net income/(loss)	25,081	(13,837)
Net loss/(income) attributable to non-controlling interest
Net income/(loss) attributable to Quiksilver, Inc.	25,081	(13,837)
Other comprehensive (loss)/income
Comprehensive income/(loss) attributable to Quiksilver, Inc.	25,081	(13,837)
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Revenues, net	269,770	281,846
Cost of goods sold	119,784	125,699
Gross profit	149,986	156,147
Selling, general and administrative expense	121,057	135,867
Asset impairments	661	1,833
Operating (loss)/income	28,268	18,447
Interest expense, net	6,810	6,763
Foreign currency loss/(gain)	3,026	2,833
Equity in earnings		1
Loss before (benefit)/provision for income taxes	18,432	8,851
(Benefit)/provision for income taxes	5,729	4,046
Income/(loss) from continuing operations	12,703	4,805
Income from discontinued operations	164	769
Net income/(loss)	12,867	5,574
Net loss/(income) attributable to non-controlling interest	464	(505)
Net income/(loss) attributable to Quiksilver, Inc.	13,331	5,069
Other comprehensive (loss)/income	(14,422)	8,110
Comprehensive income/(loss) attributable to Quiksilver, Inc.	(1,091)	13,179
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Revenues, net	(59,253)	(68,754)
Cost of goods sold	(44,980)	(63,184)
Gross profit	(14,273)	(5,570)
Selling, general and administrative expense	(4,932)	(6,804)
Asset impairments
Operating (loss)/income	(9,341)	1,234
Interest expense, net
Foreign currency loss/(gain)
Equity in earnings	35,858	(7,643)
Loss before (benefit)/provision for income taxes	(45,199)	8,877
(Benefit)/provision for income taxes
Income/(loss) from continuing operations	(45,199)	8,877
Income from discontinued operations		26
Net income/(loss)	(45,199)	8,903
Net loss/(income) attributable to non-controlling interest
Net income/(loss) attributable to Quiksilver, Inc.	(45,199)	8,903
Other comprehensive (loss)/income	14,422	(8,110)
Comprehensive income/(loss) attributable to Quiksilver, Inc.	$ (30,777)	$ 793

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Accumulated Other Comprehensive Income

3 Months Ended

Jan. 31, 2014

Equity [Abstract]

Accumulated Other Comprehensive Income

14. Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income include changes in fair value of derivative instruments qualifying as cash flow hedges and foreign currency translation adjustments. The components of accumulated other comprehensive income, net of tax, are as follows:

In thousands First quarter ended January 31, 2014:	Derivative Instruments			Foreign Currency Adjustments			Total
Balance, October 31, 2013	$	(4,591	)	$	78,509		$	73,918
Net losses reclassified to COGS		186			—			186
Changes in fair value, net of tax		6,107			(20,715	)		(14,608	)
Balance, January 31, 2014	$	1,702		$	57,794		$	59,496
First quarter ended January 31, 2013:
Balance, October 31, 2012	$	5,756		$	80,656		$	86,412
Net gains reclassified to COGS		(1,135	)		—			(1,135	)
Net losses reclassified to foreign currency loss		86			—			86
Changes in fair value, net of tax		(2,599	)		11,758			9,159
Balance, January 31, 2013	$	2,108		$	92,414		$	94,522

XML

Condensed Consolidating Financial Information (Tables)

3 Months Ended

Jan. 31, 2014

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Statement of Operations

Condensed Consolidating Statement of Operations

First Quarter Ended January 31, 2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	84,004		$	97,975		$	269,770		$	(59,253	)	$	392,612
Cost of goods sold		—			50,268			67,704			119,784			(44,980	)		192,776
Gross profit		116			33,736			30,271			149,986			(14,273	)		199,836
Selling, general and administrative expense		9,025			55,966			22,668			121,057			(4,932	)		203,784
Asset impairments		—			—			222			661			—			883
Operating (loss)/income		(8,909	)		(22,230	)		7,381			28,268			(9,341	)		(4,831	)
Interest expense, net		11,600			1,010			—			6,810			—			19,420
Foreign currency loss/(gain)		36			(10	)		(224	)		3,026			—			2,828
Equity in earnings		(35,932	)		74			—			—			35,858			—
Income/(loss) before (benefit)/provision for income taxes		15,387			(23,304	)		7,605			18,432			(45,199	)		(27,079	)
(Benefit)/provision for income taxes		—			(6,169	)		(3,945	)		5,729			—			(4,385	)
Income/(loss) from continuing operations		15,387			(17,135	)		11,550			12,703			(45,199	)		(22,694	)
Income from discontinued operations		—			23,922			13,531			164			—			37,617
Net income		15,387			6,787			25,081			12,867			(45,199	)		14,923
Net loss attributable to non-controlling interest		—			—			—			464			—			464
Net income attributable to Quiksilver, Inc.		15,387			6,787			25,081			13,331			(45,199	)		15,387
Other comprehensive loss		(14,422	)		—			—			(14,422	)		14,422			(14,422	)
Comprehensive income/(loss) attributable to Quiksilver, Inc.	$	965		$	6,787		$	25,081		$	(1,091	)	$	(30,777	)	$	965

Condensed Consolidating Statement of Operations

First Quarter Ended January 31, 2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	88,519		$	110,462		$	281,846		$	(68,754	)	$	412,189
Cost of goods sold		—			52,603			87,298			125,699			(63,184	)		202,416
Gross profit		116			35,916			23,164			156,147			(5,570	)		209,773
Selling, general and administrative expense		15,975			35,959			35,342			135,867			(6,804	)		216,339
Asset impairments		—			—			1,335			1,833			—			3,168
Operating (loss)/income		(15,859	)		(43	)		(13,513	)		18,447			1,234			(9,734	)
Interest expense, net		7,269			1,469			—			6,763			—			15,501
Foreign currency loss		154			14			64			2,833			—			3,065
Equity in earnings		7,847			(204	)		—			—			(7,643	)		—
(Loss)/income before (benefit)/provision for income taxes		(31,129	)		(1,322	)		(13,577	)		8,851			8,877			(28,300	)
(Benefit)/provision for income taxes		—			(1,187	)		90			4,046			—			2,949
(Loss)/income from continuing operations		(31,129	)		(135	)		(13,667	)		4,805			8,877			(31,249	)
(Loss)/income from discontinued operations		—			—			(170	)		769			26			625
Net (loss)/income		(31,129	)		(135	)		(13,837	)		5,574			8,903			(30,624	)
Net income attributable to non-controlling interest		—			—			—			(505	)		—			(505	)
Net (loss)/income attributable to Quiksilver, Inc.		(31,129	)		(135	)		(13,837	)		5,069			8,903			(31,129	)
Other comprehensive income		8,110			—			—			8,110			(8,110	)		8,110
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(23,019	)	$	(135	)	$	(13,837	)	$	13,179		$	793		$	(23,019	)

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

January 31, 2014

In thousands	Quiksilver, Inc.		QS Wholesale, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	34	$	7,258	$	(1,939	)	$	64,635	$	—		$	69,988
Restricted cash		—		60,214		—			403		—			60,617
Trade accounts receivable, net		—		70,576		35,269			232,878		—			338,723
Other receivables		58		2,746		3,715			20,759		—			27,278
Inventories, net		—		52,408		101,772			236,575		(30,609	)		360,146
Deferred income taxes - current		—		24,624		—			6,048		(21,109	)		9,563
Prepaid expenses and other current assets		2,433		5,914		3,614			17,282		—			29,243
Intercompany balances		—		176,329		—			—		(176,329	)		—
Current portion of assets held for sale		—		—		—			13,676		—			13,676
Total current assets		2,525		400,069		142,431			592,256		(228,047	)		909,234
Fixed assets, net		21,782		33,330		21,750			148,052		—			224,914
Intangible assets, net		4,962		44,362		1,121			84,220		—			134,665
Goodwill		—		103,880		7,676			146,682		—			258,238
Other assets		8,135		5,546		992			35,716		—			50,389
Deferred income taxes long-term		19,786		—		—			1,716		(21,502	)		—
Investment in subsidiaries		985,746		5,960		—			—		(991,706	)		—
Assets held for sale, net of current portion		—		—		—			23,715		—			23,715
Total assets	$	1,042,936	$	593,147	$	173,970		$	1,032,357	$	(1,241,255	)	$	1,601,155
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,524	$	38,976	$	20,565		$	106,940	$	—		$	168,005
Accrued liabilities		30,232		15,994		6,665			66,866		—			119,757
Current portion of long-term debt		—		15,798		—			27,626		—			43,424
Income taxes payable		—		1,185		—			728		—			1,913
Deferred income taxes - current		20,365		—		744			—		(21,109	)		—
Intercompany balances		121,442		—		30,302			24,585		(176,329	)		—
Current portion of assets held for sale		—		—		—			9,075		—			9,075
Total current liabilities		173,563		71,953		58,276			235,820		(197,438	)		342,174
Long-term debt, net of current portion		501,021		23,590		—			296,613		—			821,224
Other long-term liabilities		319		5,714		8,456			20,014		—			34,503
Deferred income taxes long-term		—		41,039		2,053			—		(21,502	)		21,590
Assets held for sale, net of current portion		—		—		—			1,577		—			1,577
Total liabilities		674,903		142,296		68,785			554,024		(218,940	)		1,221,068
Stockholders’/invested equity		368,033		450,851		105,185			466,279		(1,022,315	)		368,033
Non-controlling interest		—		—		—			12,054		—			12,054
Total liabilities and equity	$	1,042,936	$	593,147	$	173,970		$	1,032,357	$	(1,241,255	)	$	1,601,155

Condensed Consolidating Balance Sheet

October 31, 2013

In thousands	Quiksilver, Inc.		QS Wholesale, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	35	$	3,733	$	296	$	53,216	$	—		$	57,280
Trade accounts receivable, net		—		83,991		48,230		279,417		—			411,638
Other receivables		19		5,613		2,007		15,667		—			23,306
Inventories, net		—		43,405		93,074		224,695		(23,459	)		337,715
Deferred income taxes - current		—		24,624		—		6,482		(21,109	)		9,997
Prepaid expenses and other current assets		3,372		3,271		3,752		13,729		—			24,124
Intercompany balances		—		173,547		—		—		(173,547	)		—
Current portion of assets held for sale		—		—		26,051		25,475		(330	)		51,196
Total current assets		3,426		338,184		173,410		618,681		(218,445	)		915,256
Fixed assets, net		21,378		35,152		21,816		152,915		—			231,261
Intangible assets, net		4,487		44,596		1,154		84,359		—			134,596
Goodwill		—		103,880		7,675		150,070		—			261,625
Other assets		8,025		5,654		1,096		38,512		—			53,287
Deferred income taxes long-term		21,085		—		—		2,111		(23,196	)		—
Investment in subsidiaries		949,814		8,795		—		—		(958,609	)		—
Assets held for sale, net of current portion		—		—		1,676		22,769		—			24,445
Total assets	$	1,008,215	$	536,261	$	206,827	$	1,069,417	$	(1,200,250	)	$	1,620,470
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	4,222	$	51,283	$	35,910	$	110,260	$	—		$	201,675
Accrued liabilities		17,900		9,921		6,929		86,795		—			121,545
Current portion of long-term debt		—		—		—		23,488		—			23,488
Income taxes payable		—		121		—		3,791		—			3,912
Deferred income taxes - current		20,365		—		744		—		(21,109	)		—
Intercompany balances		92,815		—		47,424		33,308		(173,547	)		—
Current portion of assets held for sale		689		—		3,773		11,958		—			16,420
Total current liabilities		135,991		61,325		94,780		269,600		(194,656	)		367,040
Long-term debt, net of current portion		500,896		—		—		306,916		—			807,812
Other long-term liabilities		1,622		6,012		8,946		19,765		—			36,345
Deferred income taxes long-term		—		41,039		2,053		—		(23,196	)		19,896
Assets held for sale, net of current portion		—		—		187		1,532		—			1,719
Total liabilities		638,509		108,376		105,966		597,813		(217,852	)		1,232,812
Stockholders’/invested equity		369,706		427,885		100,861		453,652		(982,398	)		369,706
Non-controlling interest		—		—		—		17,952		—			17,952
Total liabilities and equity	$	1,008,215	$	536,261	$	206,827	$	1,069,417	$	(1,200,250	)	$	1,620,470

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

First Quarter Ended January 31, 2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	15,387		$	6,787		$	25,081		$	12,867		$	(45,199	)	$	14,923
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Income from discontinued operations		—			(23,922	)		(13,531	)		(164	)		—			(37,617	)
Depreciation and Amortization		585			2,589			1,330			6,041			—			10,545
Stock-based compensation		5,063			—			—			—			—			5,063
Provision for doubtful accounts		—			1,088			(209	)		783			—			1,662
Asset impairments		—			—			222			661			—			883
Equity in earnings		(35,932	)		74			—			352			35,858			352
Non-cash interest expense		462			239			—			213			—			914
Deferred income taxes		—			—			—			5			—			5
Other adjustments to reconcile net income		35			(9	)		(219	)		2,992			—			2,799
Changes in operating assets and liabilities:
Trade accounts receivable		—			12,327			13,169			38,707			—			64,203
Inventories		—			(9,271	)		(2,884	)		(29,849	)		9,341			(32,663	)
Other operating assets and liabilities		12,141			(11,998	)		(16,366	)		(18,962	)		—			(35,185	)
Cash (used in)/provided by operating activities of continuing operations		(2,259	)		(22,096	)		6,593			13,646			—			(4,116	)
Cash used in operating activities of discontinued operations		—			—			(1,861	)		(5,334	)		—			(7,195	)
Net cash (used in)/provided by operating activities		(2,259	)		(22,096	)		4,732			8,312			—			(11,311	)
Cash flows from investing activities:
Capital expenditures		(1,970	)		(2,397	)		(1,299	)		(4,892	)		—			(10,558	)
Changes in restricted cash		—			(60,214	)		—			(403	)		—			(60,617	)
Cash used in investing activities of continuing operations		(1,970	)		(62,611	)		(1,299	)		(5,295	)		—			(71,175	)
Cash provided by/(used in) investing activities of discontinued operations		—			58,060			18,991			(332	)		—			76,719
Net cash (used in)/provided by investing activities		(1,970	)		(4,551	)		17,692			(5,627	)		—			5,544
Cash flows from financing activities:
Borrowings on long-term debt		—			40,500			—			30,466			—			70,966
Payments on long-term debt		—			(18,500	)		—			(31,870	)		—			(50,370	)
Stock option exercises and employee stock purchases		3,138			—			—			—			—			3,138
Payments of debt issuance costs		(373	)		38			—			—			—			(335	)
Intercompany		1,463			8,134			(24,659	)		15,062			—			—
Cash provided by/(used in) financing activities of continuing operations		4,228			30,172			(24,659	)		13,658			—			23,399
Cash provided by financing activities of discontinued operations		—			—			—			—			—			—
Net cash provided by/(used in) financing activities		4,228			30,172			(24,659	)		13,658			—			23,399
Effect of exchange rate changes on cash		—			—			—			(4,924	)		—			(4,924	)
Net (decrease)/increase in cash and cash equivalents		(1	)		3,525			(2,235	)		11,419			—			12,708
Cash and cash equivalents, beginning of period		35			3,733			296			53,216			—			57,280
Cash and cash equivalents, end of period	$	34		$	7,258		$	(1,939	)	$	64,635		$	—		$	69,988

Condensed Consolidating Statement of Cash Flows

First Quarter Ended January 31, 2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(31,129	)	$	(135	)	$	(13,837	)	$	5,574		$	8,903		$	(30,624	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Loss/(income) from discontinued operations		—			—			170			(769	)		(26	)		(625	)
Depreciation and Amortization		445			2,789			1,220			7,489			—			11,943
Stock-based compensation		7,336			—			—			—			—			7,336
Provision for doubtful accounts		—			226			(1,427	)		2,449			—			1,248
Asset impairments		—			—			1,335			1,833			—			3,168
Equity in earnings		7,847			(204	)		—			(11	)		(7,643	)		(11	)
Non-cash interest expense		392			330			—			189			—			911
Deferred income taxes		—			—			—			1,135			—			1,135
Other adjustments to reconcile net (loss)/income		154			—			(105	)		2,612			—			2,661
Changes in operating assets and liabilities:
Trade accounts receivable		—			14,023			35,553			35,962			—			85,538
Inventories		—			(19,663	)		(6,439	)		(41,888	)		(1,415	)		(69,405	)
Other operating assets and liabilities		1,707			7,235			(13,751	)		1,496			—			(3,313	)
Cash (used in)/provided by operating activities of continuing operations		(13,248	)		4,601			2,719			16,071			(181	)		9,962
Cash provided by operating activities of discontinued operations		—			—			8,512			4,661			181			13,354
Net cash (used in)/provided by operating activities		(13,248	)		4,601			11,231			20,732			—			23,316
Cash flows from investing activities:
Capital expenditures		(1,708	)		(1,517	)		(1,547	)		(7,328	)		—			(12,100	)
Cash used in investing activities of continuing operations		(1,708	)		(1,517	)		(1,547	)		(7,328	)		—			(12,100	)
Cash used in investing activities of discontinued operations		—			—			(33	)		(645	)		—			(678	)
Net cash used in investing activities		(1,708	)		(1,517	)		(1,580	)		(7,973	)		—			(12,778	)
Cash flows from financing activities:
Borrowings on lines of credit		—			—			—			1,963			—			1,963
Payments on lines of credit		—			—			—			(8,042	)		—			(8,042	)
Borrowings on long-term debt		—			23,000			—			24,879			—			47,879
Payments on long-term debt		—			(23,200	)		—			—			—			(23,200	)
Stock option exercises and employee stock purchases		3,319			—			—			—			—			3,319
Intercompany		11,732			(636	)		(11,742	)		646			—			—
Cash provided by/(used in) financing activities of continuing operations		15,051			(836	)		(11,742	)		19,446			—			21,919
Cash provided by financing activities of discontinued operations		—			—			—			—			—			—
Net cash provided by/(used in) financing activities		15,051			(836	)		(11,742	)		19,446			—			21,919
Effect of exchange rate changes on cash		—			—			—			(5,919	)		—			(5,919	)
Net increase/(decrease) in cash and cash equivalents		95			2,248			(2,091	)		26,286			—			26,538
Cash and cash equivalents, beginning of period		324			1,966			(1,831	)		41,364			—			41,823
Cash and cash equivalents, end of period	$	419		$	4,214		$	(3,922	)	$	67,650		$	—		$	68,361

XML

Condensed Consolidating Financial Information

3 Months Ended

Jan. 31, 2014

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Information

16. Condensed Consolidating Financial Information

In July 2013, the Company issued $225 million aggregate principal amount of its 2020 Notes. These notes were issued in a private offering that was exempt from the registration requirements of the Securities Act of 1933, as amended (the “Secruities Act”). They were offered within the United States only to qualified institutional buyers in accordance with Rule 144A under the Securities Act, and outside of the United States only to non-U.S. investors in accordance with Regulation S under the Securities Act. In November 2013, these notes were exchanged for publicly registered notes with identical terms. Obligations under the Company’s 2020 Notes are fully and unconditionally guaranteed by certain of its existing 100% owned domestic subsidiaries.

In November 2013, the Company sold Mervin, a guarantor subsidiary, and in January 2014, the Company sold substantially all of the assets of Hawk, also a guarantor subsidiary. These subsidiaries continue to be presented in the “Guarantor Subsidiaries” column in the following condensed consolidating financial information where applicable. See note 15, “Discontinued Operations,” for further discussion regarding the disposition of these businesses.

The Company is required to present condensed consolidating financial information for Quiksilver, Inc. and its domestic subsidiaries within the notes to the condensed consolidated financial statements in accordance with the criteria established for parent companies in the SEC’s Regulation S-X, Rule 3-10(f). The following condensed consolidating financial information presents the results of operations, financial position and cash flows of Quiksilver Inc., QS Wholesale, Inc., the 100% owned guarantor subsidiaries, the non-guarantor subsidiaries and the eliminations necessary to arrive at the information for the Company on a consolidated basis as of January 31, 2014 and October 31, 2013 and for the first quarters of fiscal 2014 and 2013. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. The Company has applied the estimated consolidated annual effective income tax rate to both the guarantor and non-guarantor subsidiaries, adjusting for any discrete items, for interim reporting purposes. In the Company’s consolidated financial statements for the fiscal year ending October 31, 2014, management will apply the actual income tax rates to both the guarantor and non-guarantor subsidiaries. These interim tax rates may differ from the actual annual effective income tax rates for both the guarantor and non-guarantor subsidiaries.

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Operations

First Quarter Ended January 31, 2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	84,004		$	97,975		$	269,770		$	(59,253	)	$	392,612
Cost of goods sold		—			50,268			67,704			119,784			(44,980	)		192,776
Gross profit		116			33,736			30,271			149,986			(14,273	)		199,836
Selling, general and administrative expense		9,025			55,966			22,668			121,057			(4,932	)		203,784
Asset impairments		—			—			222			661			—			883
Operating (loss)/income		(8,909	)		(22,230	)		7,381			28,268			(9,341	)		(4,831	)
Interest expense, net		11,600			1,010			—			6,810			—			19,420
Foreign currency loss/(gain)		36			(10	)		(224	)		3,026			—			2,828
Equity in earnings		(35,932	)		74			—			—			35,858			—
Income/(loss) before (benefit)/provision for income taxes		15,387			(23,304	)		7,605			18,432			(45,199	)		(27,079	)
(Benefit)/provision for income taxes		—			(6,169	)		(3,945	)		5,729			—			(4,385	)
Income/(loss) from continuing operations		15,387			(17,135	)		11,550			12,703			(45,199	)		(22,694	)
Income from discontinued operations		—			23,922			13,531			164			—			37,617
Net income		15,387			6,787			25,081			12,867			(45,199	)		14,923
Net loss attributable to non-controlling interest		—			—			—			464			—			464
Net income attributable to Quiksilver, Inc.		15,387			6,787			25,081			13,331			(45,199	)		15,387
Other comprehensive loss		(14,422	)		—			—			(14,422	)		14,422			(14,422	)
Comprehensive income/(loss) attributable to Quiksilver, Inc.	$	965		$	6,787		$	25,081		$	(1,091	)	$	(30,777	)	$	965

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Operations

First Quarter Ended January 31, 2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues, net	$	116		$	88,519		$	110,462		$	281,846		$	(68,754	)	$	412,189
Cost of goods sold		—			52,603			87,298			125,699			(63,184	)		202,416
Gross profit		116			35,916			23,164			156,147			(5,570	)		209,773
Selling, general and administrative expense		15,975			35,959			35,342			135,867			(6,804	)		216,339
Asset impairments		—			—			1,335			1,833			—			3,168
Operating (loss)/income		(15,859	)		(43	)		(13,513	)		18,447			1,234			(9,734	)
Interest expense, net		7,269			1,469			—			6,763			—			15,501
Foreign currency loss		154			14			64			2,833			—			3,065
Equity in earnings		7,847			(204	)		—			—			(7,643	)		—
(Loss)/income before (benefit)/provision for income taxes		(31,129	)		(1,322	)		(13,577	)		8,851			8,877			(28,300	)
(Benefit)/provision for income taxes		—			(1,187	)		90			4,046			—			2,949
(Loss)/income from continuing operations		(31,129	)		(135	)		(13,667	)		4,805			8,877			(31,249	)
(Loss)/income from discontinued operations		—			—			(170	)		769			26			625
Net (loss)/income		(31,129	)		(135	)		(13,837	)		5,574			8,903			(30,624	)
Net income attributable to non-controlling interest		—			—			—			(505	)		—			(505	)
Net (loss)/income attributable to Quiksilver, Inc.		(31,129	)		(135	)		(13,837	)		5,069			8,903			(31,129	)
Other comprehensive income		8,110			—			—			8,110			(8,110	)		8,110
Comprehensive (loss)/income attributable to Quiksilver, Inc.	$	(23,019	)	$	(135	)	$	(13,837	)	$	13,179		$	793		$	(23,019	)

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Balance Sheet

January 31, 2014

In thousands	Quiksilver, Inc.		QS Wholesale, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	34	$	7,258	$	(1,939	)	$	64,635	$	—		$	69,988
Restricted cash		—		60,214		—			403		—			60,617
Trade accounts receivable, net		—		70,576		35,269			232,878		—			338,723
Other receivables		58		2,746		3,715			20,759		—			27,278
Inventories, net		—		52,408		101,772			236,575		(30,609	)		360,146
Deferred income taxes - current		—		24,624		—			6,048		(21,109	)		9,563
Prepaid expenses and other current assets		2,433		5,914		3,614			17,282		—			29,243
Intercompany balances		—		176,329		—			—		(176,329	)		—
Current portion of assets held for sale		—		—		—			13,676		—			13,676
Total current assets		2,525		400,069		142,431			592,256		(228,047	)		909,234
Fixed assets, net		21,782		33,330		21,750			148,052		—			224,914
Intangible assets, net		4,962		44,362		1,121			84,220		—			134,665
Goodwill		—		103,880		7,676			146,682		—			258,238
Other assets		8,135		5,546		992			35,716		—			50,389
Deferred income taxes long-term		19,786		—		—			1,716		(21,502	)		—
Investment in subsidiaries		985,746		5,960		—			—		(991,706	)		—
Assets held for sale, net of current portion		—		—		—			23,715		—			23,715
Total assets	$	1,042,936	$	593,147	$	173,970		$	1,032,357	$	(1,241,255	)	$	1,601,155
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,524	$	38,976	$	20,565		$	106,940	$	—		$	168,005
Accrued liabilities		30,232		15,994		6,665			66,866		—			119,757
Current portion of long-term debt		—		15,798		—			27,626		—			43,424
Income taxes payable		—		1,185		—			728		—			1,913
Deferred income taxes - current		20,365		—		744			—		(21,109	)		—
Intercompany balances		121,442		—		30,302			24,585		(176,329	)		—
Current portion of assets held for sale		—		—		—			9,075		—			9,075
Total current liabilities		173,563		71,953		58,276			235,820		(197,438	)		342,174
Long-term debt, net of current portion		501,021		23,590		—			296,613		—			821,224
Other long-term liabilities		319		5,714		8,456			20,014		—			34,503
Deferred income taxes long-term		—		41,039		2,053			—		(21,502	)		21,590
Assets held for sale, net of current portion		—		—		—			1,577		—			1,577
Total liabilities		674,903		142,296		68,785			554,024		(218,940	)		1,221,068
Stockholders’/invested equity		368,033		450,851		105,185			466,279		(1,022,315	)		368,033
Non-controlling interest		—		—		—			12,054		—			12,054
Total liabilities and equity	$	1,042,936	$	593,147	$	173,970		$	1,032,357	$	(1,241,255	)	$	1,601,155

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Balance Sheet

October 31, 2013

In thousands	Quiksilver, Inc.		QS Wholesale, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	35	$	3,733	$	296	$	53,216	$	—		$	57,280
Trade accounts receivable, net		—		83,991		48,230		279,417		—			411,638
Other receivables		19		5,613		2,007		15,667		—			23,306
Inventories, net		—		43,405		93,074		224,695		(23,459	)		337,715
Deferred income taxes - current		—		24,624		—		6,482		(21,109	)		9,997
Prepaid expenses and other current assets		3,372		3,271		3,752		13,729		—			24,124
Intercompany balances		—		173,547		—		—		(173,547	)		—
Current portion of assets held for sale		—		—		26,051		25,475		(330	)		51,196
Total current assets		3,426		338,184		173,410		618,681		(218,445	)		915,256
Fixed assets, net		21,378		35,152		21,816		152,915		—			231,261
Intangible assets, net		4,487		44,596		1,154		84,359		—			134,596
Goodwill		—		103,880		7,675		150,070		—			261,625
Other assets		8,025		5,654		1,096		38,512		—			53,287
Deferred income taxes long-term		21,085		—		—		2,111		(23,196	)		—
Investment in subsidiaries		949,814		8,795		—		—		(958,609	)		—
Assets held for sale, net of current portion		—		—		1,676		22,769		—			24,445
Total assets	$	1,008,215	$	536,261	$	206,827	$	1,069,417	$	(1,200,250	)	$	1,620,470
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	4,222	$	51,283	$	35,910	$	110,260	$	—		$	201,675
Accrued liabilities		17,900		9,921		6,929		86,795		—			121,545
Current portion of long-term debt		—		—		—		23,488		—			23,488
Income taxes payable		—		121		—		3,791		—			3,912
Deferred income taxes - current		20,365		—		744		—		(21,109	)		—
Intercompany balances		92,815		—		47,424		33,308		(173,547	)		—
Current portion of assets held for sale		689		—		3,773		11,958		—			16,420
Total current liabilities		135,991		61,325		94,780		269,600		(194,656	)		367,040
Long-term debt, net of current portion		500,896		—		—		306,916		—			807,812
Other long-term liabilities		1,622		6,012		8,946		19,765		—			36,345
Deferred income taxes long-term		—		41,039		2,053		—		(23,196	)		19,896
Assets held for sale, net of current portion		—		—		187		1,532		—			1,719
Total liabilities		638,509		108,376		105,966		597,813		(217,852	)		1,232,812
Stockholders’/invested equity		369,706		427,885		100,861		453,652		(982,398	)		369,706
Non-controlling interest		—		—		—		17,952		—			17,952
Total liabilities and equity	$	1,008,215	$	536,261	$	206,827	$	1,069,417	$	(1,200,250	)	$	1,620,470

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Cash Flows

First Quarter Ended January 31, 2014

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	15,387		$	6,787		$	25,081		$	12,867		$	(45,199	)	$	14,923
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Income from discontinued operations		—			(23,922	)		(13,531	)		(164	)		—			(37,617	)
Depreciation and Amortization		585			2,589			1,330			6,041			—			10,545
Stock-based compensation		5,063			—			—			—			—			5,063
Provision for doubtful accounts		—			1,088			(209	)		783			—			1,662
Asset impairments		—			—			222			661			—			883
Equity in earnings		(35,932	)		74			—			352			35,858			352
Non-cash interest expense		462			239			—			213			—			914
Deferred income taxes		—			—			—			5			—			5
Other adjustments to reconcile net income		35			(9	)		(219	)		2,992			—			2,799
Changes in operating assets and liabilities:
Trade accounts receivable		—			12,327			13,169			38,707			—			64,203
Inventories		—			(9,271	)		(2,884	)		(29,849	)		9,341			(32,663	)
Other operating assets and liabilities		12,141			(11,998	)		(16,366	)		(18,962	)		—			(35,185	)
Cash (used in)/provided by operating activities of continuing operations		(2,259	)		(22,096	)		6,593			13,646			—			(4,116	)
Cash used in operating activities of discontinued operations		—			—			(1,861	)		(5,334	)		—			(7,195	)
Net cash (used in)/provided by operating activities		(2,259	)		(22,096	)		4,732			8,312			—			(11,311	)
Cash flows from investing activities:
Capital expenditures		(1,970	)		(2,397	)		(1,299	)		(4,892	)		—			(10,558	)
Changes in restricted cash		—			(60,214	)		—			(403	)		—			(60,617	)
Cash used in investing activities of continuing operations		(1,970	)		(62,611	)		(1,299	)		(5,295	)		—			(71,175	)
Cash provided by/(used in) investing activities of discontinued operations		—			58,060			18,991			(332	)		—			76,719
Net cash (used in)/provided by investing activities		(1,970	)		(4,551	)		17,692			(5,627	)		—			5,544
Cash flows from financing activities:
Borrowings on long-term debt		—			40,500			—			30,466			—			70,966
Payments on long-term debt		—			(18,500	)		—			(31,870	)		—			(50,370	)
Stock option exercises and employee stock purchases		3,138			—			—			—			—			3,138
Payments of debt issuance costs		(373	)		38			—			—			—			(335	)
Intercompany		1,463			8,134			(24,659	)		15,062			—			—
Cash provided by/(used in) financing activities of continuing operations		4,228			30,172			(24,659	)		13,658			—			23,399
Cash provided by financing activities of discontinued operations		—			—			—			—			—			—
Net cash provided by/(used in) financing activities		4,228			30,172			(24,659	)		13,658			—			23,399
Effect of exchange rate changes on cash		—			—			—			(4,924	)		—			(4,924	)
Net (decrease)/increase in cash and cash equivalents		(1	)		3,525			(2,235	)		11,419			—			12,708
Cash and cash equivalents, beginning of period		35			3,733			296			53,216			—			57,280
Cash and cash equivalents, end of period	$	34		$	7,258		$	(1,939	)	$	64,635		$	—		$	69,988

QUIKSILVER, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidating Statement of Cash Flows

First Quarter Ended January 31, 2013

In thousands	Quiksilver, Inc.			QS Wholesale, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Net (loss)/income	$	(31,129	)	$	(135	)	$	(13,837	)	$	5,574		$	8,903		$	(30,624	)
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Loss/(income) from discontinued operations		—			—			170			(769	)		(26	)		(625	)
Depreciation and Amortization		445			2,789			1,220			7,489			—			11,943
Stock-based compensation		7,336			—			—			—			—			7,336
Provision for doubtful accounts		—			226			(1,427	)		2,449			—			1,248
Asset impairments		—			—			1,335			1,833			—			3,168
Equity in earnings		7,847			(204	)		—			(11	)		(7,643	)		(11	)
Non-cash interest expense		392			330			—			189			—			911
Deferred income taxes		—			—			—			1,135			—			1,135
Other adjustments to reconcile net (loss)/income		154			—			(105	)		2,612			—			2,661
Changes in operating assets and liabilities:
Trade accounts receivable		—			14,023			35,553			35,962			—			85,538
Inventories		—			(19,663	)		(6,439	)		(41,888	)		(1,415	)		(69,405	)
Other operating assets and liabilities		1,707			7,235			(13,751	)		1,496			—			(3,313	)
Cash (used in)/provided by operating activities of continuing operations		(13,248	)		4,601			2,719			16,071			(181	)		9,962
Cash provided by operating activities of discontinued operations		—			—			8,512			4,661			181			13,354
Net cash (used in)/provided by operating activities		(13,248	)		4,601			11,231			20,732			—			23,316
Cash flows from investing activities:
Capital expenditures		(1,708	)		(1,517	)		(1,547	)		(7,328	)		—			(12,100	)
Cash used in investing activities of continuing operations		(1,708	)		(1,517	)		(1,547	)		(7,328	)		—			(12,100	)
Cash used in investing activities of discontinued operations		—			—			(33	)		(645	)		—			(678	)
Net cash used in investing activities		(1,708	)		(1,517	)		(1,580	)		(7,973	)		—			(12,778	)
Cash flows from financing activities:
Borrowings on lines of credit		—			—			—			1,963			—			1,963
Payments on lines of credit		—			—			—			(8,042	)		—			(8,042	)
Borrowings on long-term debt		—			23,000			—			24,879			—			47,879
Payments on long-term debt		—			(23,200	)		—			—			—			(23,200	)
Stock option exercises and employee stock purchases		3,319			—			—			—			—			3,319
Intercompany		11,732			(636	)		(11,742	)		646			—			—
Cash provided by/(used in) financing activities of continuing operations		15,051			(836	)		(11,742	)		19,446			—			21,919
Cash provided by financing activities of discontinued operations		—			—			—			—			—			—
Net cash provided by/(used in) financing activities		15,051			(836	)		(11,742	)		19,446			—			21,919
Effect of exchange rate changes on cash		—			—			—			(5,919	)		—			(5,919	)
Net increase/(decrease) in cash and cash equivalents		95			2,248			(2,091	)		26,286			—			26,538
Cash and cash equivalents, beginning of period		324			1,966			(1,831	)		41,364			—			41,823
Cash and cash equivalents, end of period	$	419		$	4,214		$	(3,922	)	$	67,650		$	—		$	68,361

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Statement Of Financial Position [Abstract]
Allowances for trade accounts receivable	$ 61,534	$ 60,912
Fixed assets, accumulated depreciation and amortization	$ 239,565	$ 248,860
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	285,000,000	285,000,000
Common stock, shares issued	173,278,919	172,579,182
Treasury stock, shares	2,885,200	2,885,200

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Condensed Consolidated Statements of Operations (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Income Statement [Abstract]
Net gain on sales of businesses	$ 38,103	$ 0

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Restructuring Charges

3 Months Ended

Jan. 31, 2014

Restructuring And Related Activities [Abstract]

Restructuring Charges

9. Restructuring Charges

In connection with the globalization of its organizational structure and core processes, as well as its overall cost reduction efforts, the Company formulated the Fiscal 2013 Profit Improvement Plan (the “2013 Plan”). The 2013 Plan covers the global operations of the Company, and as the Company continues to evaluate its structure, processes and costs, additional charges may be incurred in the future under the 2013 Plan that are not yet determined. The 2013 Plan is, in many respects, a continuation and acceleration of the Company’s Fiscal 2011 Cost Reduction Plan (the “2011 Plan”). The Company will no longer incur any charges under the 2011 Plan, but will continue to make cash payments on amounts previously accrued under the 2011 Plan. Amounts charged to expense under the 2013 Plan and 2011 Plan were primarily recorded in SG&A with a small portion recorded in cost of goods sold (“COGS”), in the Company’s consolidated statements of operations.

Activity and liability balances recorded as part of the 2013 Plan and 2011 Plan were as follows:

In thousands	Workforce			Facility & Other			Total
Balance, November 1, 2012	$	5,335		$	6,856		$	12,191
Charged to expense		22,671			5,838			28,509
Cash payments		(15,847	)		(5,163	)		(21,010	)
Adjustments		—			(592	)		(592	)
Balance, October 31, 2013	$	12,159		$	6,939		$	19,098
Charged to expense		2,553			570			3,123
Cash payments		(5,925	)		(514	)		(6,439	)
Balance, January 31, 2014	$	8,787		$	6,995		$	15,782

Of the amounts charged to expense during the first quarter of fiscal 2014, the majority related to severance charges within the Americas segment.

In addition to the restructuring charges noted above, the Company also recorded approximately $2 million of additional expenses within SG&A during the first quarter of fiscal 2014 related to certain non-core brands that have been discontinued, which are not reflected in the table above. Additionally, the Company recorded severance charges of approximately $3 million within SG&A during the first quarter of fiscal 2013 which were unrelated to the 2013 Plan or the 2011 Plan.

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Document and Entity Information	3 Months Ended
	Jan. 31, 2014	Feb. 28, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Trading Symbol	ZQK
Entity Registrant Name	QUIKSILVER INC
Entity Central Index Key	0000805305
Current Fiscal Year End Date	--10-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		170,413,719

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Debt

3 Months Ended

Jan. 31, 2014

Debt Disclosure [Abstract]

Debt

10. Debt

A summary of borrowings under lines of credit and long-term debt as of the dates indicated is as follows:

In thousands	January 31, 2014		October 31, 2013
EMEA credit facilities	$	25,730	$	21,594
2017 Notes		272,220		274,952
ABL Credit Facility		42,260		27,408
2018 Notes		278,664		278,612
2020 Notes		222,357		222,285
Capital lease obligations and other borrowings		23,417		6,449
	$	864,648	$	831,300

As of January 31, 2014, the Company’s credit facilities allowed for total cash borrowings and letters of credit of $272 million. The total maximum borrowings and actual availability fluctuate with the amount of assets comprising the borrowing base under certain of the credit facilities. At January 31, 2014, the Company had a total of $68 million of direct borrowings and $56 million in letters of credit outstanding. As of January 31, 2014, the effective availability for borrowings remaining under the Company’s credit facilities was $92 million, $53 million of which could also be used for letters of credit in the United States and APAC. In addition to the $92 million of effective availability for borrowings, the Company also had $56 million in additional capacity for letters of credit in EMEA as of January 31, 2014. Many of the Company’s debt agreements contain customary default provisions and restrictive covenants. The Company is in compliance with such covenants.

As of January 31, 2014, the Company’s other borrowings include approximately $17 million of notes payable, approximately $16 million of which is due during fiscal 2014, issued to the former minority interest owners of the Company’s Brazil and Mexico subsidiaries. The Company acquired the remaining minority interests of each of these subsidiaries in November 2013.

The estimated fair values of the Company’s borrowings under lines of credit and long-term debt as of January 31, 2014 was $937 million, compared to a carrying value of $865 million. The fair value of the Company’s long-term debt is calculated based on the market price of the Company’s publicly traded 2020 Notes, the trading prices of the Company’s 2018 Notes and 2017 Notes (all Level 1 inputs) and the carrying values of the Company’s variable rate debt obligations.

The carrying value of the Company’s trade accounts receivable and accounts payable approximates fair value due to their short-term nature. The fair value of fixed assets is determined using a discounted cash flow model which requires Level 3 inputs.

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Condensed Consolidated Statements of Comprehensive Income/(Loss) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Statement Of Income And Comprehensive Income [Abstract]
Net income/(loss)	$ 14,923	$ (30,624)
Other comprehensive income/(loss):
Foreign currency translation adjustment	(20,715)	11,758
Net unrealized gain/(loss) on derivative instruments, net of tax provision/(benefit) of $1,321 (2014) and $(1,628) (2013)	6,293	(3,648)
Comprehensive income/(loss)	501	(22,514)
Comprehensive loss/(income) attributable to non-controlling interest	464	(505)
Comprehensive income/(loss) attributable to Quiksilver, Inc.	$ 965	$ (23,019)

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Earnings per Share and Stock-Based Compensation

3 Months Ended

Jan. 31, 2014

Text Block [Abstract]

Earnings per Share and Stock-Based Compensation

4. Earnings per Share and Stock-Based Compensation

The Company reports basic and diluted earnings per share (“EPS”). Basic EPS is based on the weighted average number of shares outstanding during the period, while diluted EPS additionally includes the dilutive effect of the Company’s outstanding stock options, warrants and shares of restricted stock computed using the treasury stock method.

The table below sets forth the reconciliation of the denominator of each net loss per share calculation for the first quarter of fiscal 2014 and 2013:

	First Quarter Ended January 31,
In thousands	2014		2013
Shares used in computing basic net loss per share		169,747		165,767
Dilutive effect of stock options and restricted stock(1)		—		—
Dilutive effect of stock warrants(1)		—		—
Shares used in computing diluted net loss per share		169,747		165,767

⁽¹⁾ For the first quarter of fiscal 2014 and 2013, the shares used in computing diluted net loss per share do not include 3,974,000 and 3,391,000, respectively, of dilutive stock options and shares of restricted stock, nor 19,913,000 and 15,140,000, respectively, of dilutive warrant shares, as the effect is anti-dilutive given the Company’s net loss from continuing operations. For the first quarter of fiscal 2014 and 2013, additional stock options outstanding of 3,856,000 and 7,932,000, respectively, and additional warrant shares outstanding of 5,741,000 and 10,514,000, respectively, were excluded from the calculation of diluted EPS, as their effect would have been anti-dilutive based on the application of the treasury stock method.

The Company accounts for stock-based compensation under the fair value recognition provisions of Accounting Standards Codification (“ASC”) 718, “Compensation – Stock Compensation.” Stock-based compensation expense is included in selling, general and administrative expense (“SG&A”).

The Company has previously granted performance-based restricted stock units and options to certain key employees and executives. Vesting of these awards is contingent upon a required service period and the Company’s achievement of specified common stock price thresholds. In addition, the vesting of a portion of the options can be accelerated based upon the Company’s achievement of specified annual performance targets. The Company believes that the granting of these awards serves to further align the interests of its employees and executives with those of its stockholders. Based on the vesting contingencies in the awards, the Company used a Monte-Carlo simulation in order to determine the grant date fair values of the awards. There were no such awards granted in the first quarter of fiscal 2014. For the first quarter of fiscal 2013, the assumptions used in the Monte-Carlo simulations for the restricted stock units granted included a risk-free interest rate of 0.5%, volatility of 73% to 89%, and a zero dividend yield. The weighted average fair value of the restricted stock units granted in the first quarter of fiscal 2013 was $3.39. There were no performance options granted in the first quarter of fiscal 2014 or 2013.

Activity related to these performance-based equity instruments for the first quarter of fiscal 2014 was as follows:

	Performance Options			Performance Restricted Stock Units
Outstanding, October 31, 2013		688,000			11,675,782
Granted		—			—
Exercised		(12,000	)		—
Canceled		(36,000	)		(30,937	)
Outstanding, January 31, 2014		640,000			11,644,845

As of January 31, 2014, 82,000 of the 640,000 oustanding performance options were exercisable and none of the performance restricted stock units were exercisable. As of January 31, 2014, the Company had unrecognized compensation expense, net of estimated forfeitures, of approximately $0.7 million related to the performance options and approximately $6 million related to restricted stock units. This unrecognized compensation expense is expected to be recognized over a weighted average period of approximately 2 years and 0.4 years, respectively.

For non-performance-based options, the Company uses the Black-Scholes option-pricing model to value compensation expense. Forfeitures are estimated at the date of grant based on historical rates and reduce the compensation expense recognized. The expected term of options granted is derived from historical data on employee exercises. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant. Expected volatility is based on the historical volatility of the Company’s stock. For the first quarter of fiscal 2014 and 2013, there were no options granted. The Company records stock-based compensation expense using the graded vested method over the vesting period, which is generally three years. As of January 31, 2014, the Company had approximately $3 million of unrecognized compensation expense for non-performance-based options expected to be recognized over a weighted average period of approximately 2 years.

Changes in shares under option, excluding performance-based options, for the first quarter of fiscal 2014 were as follows:

Dollar amounts in thousands, except per share amounts	Shares			Weighted Average Price		Weighted Average Life		Aggregate Intrinsic Value
Outstanding, October 31, 2013		8,829,618		$	4.83
Granted		—			—
Exercised		(568,290	)		4.24			$	2,370
Canceled		(626,750	)		8.59
Outstanding, January 31, 2014		7,634,578		$	4.56		5.5	$	21,110
Options exercisable, January 31, 2014		5,633,427		$	4.16		4.8	$	18,344

Changes in non-vested shares under option, excluding performance-based options, for the first quarter of fiscal 2014 were as follows:

	Shares			Weighted Average Grant Date Fair Value
Non-vested, October 31, 2013		2,784,826		$	2.95
Granted		—			—
Vested		(778,675	)		2.28
Canceled		(5,000	)		3.51
Non-vested, January 31, 2014		2,001,151		$	3.19

The Company also grants restricted stock and restricted stock units under its 2013 Performance Incentive Plan. Restricted stock issued under this plan generally vests in three years while restricted stock units issued under this plan generally vest upon the Company’s achievement of a specified common stock price threshold . There were no changes in restricted stock for the first quarter of fiscal 2014.

Compensation expense for restricted stock is determined using the intrinsic value method and forfeitures are estimated at the date of grant based on historical rates and reduce the compensation expense recognized. The Company monitors the probability of meeting the restricted stock performance criteria, if any, and adjusts the amortization period as appropriate. As of January 31, 2014, there had been no acceleration of amortization periods and the Company had approximately $0.3 million of unrecognized compensation expense expected to be recognized over a weighted average period of approximately one year.

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Segment Information

3 Months Ended

Jan. 31, 2014

Segment Reporting [Abstract]

Segment Information

3. Segment Information

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company operates in the outdoor market of the action sports industry in which the Company designs, markets and distributes apparel, footwear, accessories and related products. The Company currently operates in four segments: the Americas, EMEA, and APAC, each of which sells a full range of the Company’s products, as well as Corporate Operations. The Americas segment, consisting of North, South and Central America, includes revenues primarily from the United States, Canada, Brazil and Mexico. The EMEA segment, consisting of Europe, the Middle East and Africa, includes revenues primarily from continental Europe, the United Kingdom, Russia and South Africa. The APAC segment, consisting of Asia and the Pacific Rim, includes revenues primarily from Australia, Japan, New Zealand, South Korea, Taiwan and Indonesia. Costs that support all segments, including trademark protection, trademark maintenance and licensing functions, are part of Corporate Operations. Corporate Operations also includes sourcing income and gross profit earned from the Company’s licensees.

Information related to the Company’s operating segments for the first quarter of fiscal 2014 and 2013 is as follows:

	First Quarter Ended January 31,
In thousands	2014			2013
Revenues, net:
Americas	$	173,165		$	182,636
EMEA		149,397			156,174
APAC		69,875			72,695
Corporate Operations		175			684
	$	392,612		$	412,189
Gross profit:
Americas	$	75,110		$	78,121
EMEA		87,849			91,734
APAC		36,808			39,236
Corporate Operations		69			682
	$	199,836		$	209,773
SG&A expense:
Americas	$	83,692		$	85,187
EMEA		76,712			77,215
APAC		32,615			37,192
Corporate Operations		10,765			16,745
	$	203,784		$	216,339
Asset impairments:
Americas	$	222		$	1,621
EMEA		661			1,547
APAC		—			—
Corporate Operations		—			—
	$	883		$	3,168
Operating (loss)/income:
Americas	$	(8,804	)	$	(8,687	)
EMEA		10,476			12,972
APAC		4,193			2,044
Corporate Operations		(10,696	)		(16,063	)
	$	(4,831	)	$	(9,734	)
	January 31, 2014			October 31, 2013
Identifiable assets:
Americas	$	581,417		$	581,021
EMEA		747,013			744,936
APAC		202,359			222,542
Corporate Operations		70,366			71,971
	$	1,601,155		$	1,620,470

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Discontinued Operations

3 Months Ended

Jan. 31, 2014

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

15. Discontinued Operations

One of the elements of the Company’s multi-year Profit Improvement Plan involves divesting or exiting certain non-core businesses. In November 2013, the Company completed the sale of Mervin for $58 million, subject to a final working capital adjustment. In January 2014, the Company completed the sale of substantially all of the assets of Hawk for $19 million. These transactions resulted in an after-tax gain of approximately $38 million during the first quarter of fiscal 2014, which is included in income from discontinued operations in the table below. Additionally, the Company continues to pursue strategic alternatives for Surfdome. Each of the Company’s Mervin, Hawk and Surfdome businesses were classified as “held for sale” as of October 31, 2013 and are presented as discontinued operations in the accompanying consolidated financial statements for all periods presented. The operating results of discontinued operations for the first quarters of fiscal 2014 and 2013 are as follows:

	First Quarter Ended January 31,
In thousands	2014		2013
Revenues, net	$	20,162	$	18,829
Income before income taxes		48,094		900
Provision for income taxes		10,477		275
Income from discontinued operations		37,617		625
Less: net loss/(income) attributable to non- controlling interest		103		(186	)
Income from discontinued operations attributable to Quiksilver, Inc.	$	37,720	$	439

The components of major assets and liabilities held for sale at January 31, 2014 and October 31, 2013 are as follows:

	January 31,		October 31,
In thousands	2014		2013
Assets:
Receivables, net	$	369	$	24,229
Inventories Inventories		12,865		25,915
Goodwill		16,821		16,109
Other		7,336		9,388
	$	37,391	$	75,641
Liabilities:
Accounts payable	$	6,706	$	13,039
Accrued liabilities		2,369		3,381
Other		1,577		1,719
	$	10,652	$	18,139

Total assets held for sale as of January 31, 2014 and October 31, 2013 by geographical segment was as follows:

	January 31,		October 31,
In thousands	2014		2013
Americas	$	—	$	27,398
EMEA		37,391		47,588
APAC		—		655
	$	37,391	$	75,641

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Derivative Financial Instruments

3 Months Ended

Jan. 31, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

11. Derivative Financial Instruments

The Company is exposed to gains and losses resulting from fluctuations in foreign currency exchange rates relating to certain sales, royalty income and product purchases of its international subsidiaries that are denominated in currencies other than their functional currencies. The Company is also exposed to foreign currency gains and losses resulting from domestic transactions that are not denominated in U.S. dollars. Furthermore, the Company is exposed to gains and losses resulting from the effect that fluctuations in foreign currency exchange rates have on the reported results in the Company’s consolidated financial statements due to the translation of the operating results and financial position of the Company’s international subsidiaries. As part of its overall strategy to manage the level of exposure to the risk of fluctuations in foreign currency exchange rates, the Company uses various foreign currency exchange contracts and intercompany loans.

The Company accounts for all of its cash flow hedges under ASC 815, “Derivatives and Hedging,” which requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheet. In accordance with ASC 815, the Company designates forward contracts as cash flow hedges of forecasted purchases of commodities.

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. As of January 31, 2014, the Company was hedging forecasted transactions expected to occur through June 2015. Assuming January 31, 2014 exchange rates remain constant, $2 million of gains, net of tax, related to hedges of these transactions are expected to be reclassified into earnings over the next 17 months.

On the date the Company enters into a derivative contract, management designates the derivative as a hedge of the identified exposure. Before entering into various hedge transactions, the Company formally documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy. In this documentation, the Company identifies the asset, liability, firm commitment, or forecasted transaction that has been designated as a hedged item and indicates how the hedging instrument is expected to hedge the risks related to the hedged item. The Company formally measures effectiveness of its hedging relationships both at the hedge inception and on an ongoing basis in accordance with its risk management policy. The Company would discontinue hedge accounting prospectively (i) if management determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item, (ii) when the derivative expires or is sold, terminated, or exercised, (iii) if it becomes probable that the forecasted transaction being hedged by the derivative will not occur, (iv) if a hedged firm commitment no longer meets the definition of a firm commitment, or (v) if management determines that designation of the derivative as a hedge instrument is no longer appropriate. As a result of the expiration, sale, termination, or exercise of derivative contracts, the Company reclassified into earnings a net loss of $0.2 million for the quarter ended January 31, 2014, and a net gain of $1 million for the quarter ended January 31, 2013.

The Company enters into forward exchange and other derivative contracts with major banks and is exposed to exchange rate losses in the event of nonperformance by these banks. The Company anticipates, however, that these banks will be able to fully satisfy their obligations under the contracts. Accordingly, the Company does not require collateral or other security to support the contracts.

As of January 31, 2014, the Company had the following outstanding derivative contracts that were entered into to hedge forecasted purchases:

In thousands	Commodity		Notional Amount		Maturity		Fair Value
United States dollars		Inventory	$	250,613		Feb 2014 –June 2015	$	4,473

ASC 820, “Fair Value Measurements and Disclosures,” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three levels. These levels are:

• Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 assets and liabilities include debt and equity securities traded in an active exchange market, as well as U.S. Treasury securities.

• Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3 – Valuation is determined using model-based techniques with significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of third-party pricing services, option-pricing models, discounted cash flow models and similar techniques.

The Company’s derivative assets and liabilities include foreign exchange derivatives that are measured at fair value using observable market inputs such as forward rates, interest rates, the Company’s credit risk and the Company’s counterparties’ credit risks. Based on these inputs, the Company’s derivative assets and liabilities are classified within Level 2 of the valuation hierarchy.

The following tables reflect the fair values of assets and liabilities measured and recognized at fair value on a recurring basis on the accompanying condensed consolidated balance sheets as of the dates indicated:

	Fair Value Measurements Using							Assets/(Liabilities)
In thousands	Level 1		Level 2			Level 3		At Fair Value
January 31, 2014:
Derivative assets:
Other receivables	$	—	$	4,026		$	—	$	4,026
Other assets		—		521			—		521
Derivative liabilities:
Accrued liabilities		—		(74	)		—		(74	)
Total fair value	$	—	$	4,473		$	—	$	4,473
October 31, 2013:
Derivative assets:
Other receivables	$	—	$	2,026		$	—	$	2,026
Other assets		—		382			—		382
Derivative liabilities:
Accrued liabilities		—		(3,313	)		—		(3,313	)
Total fair value	$	—	$	(905	)	$	—	$	(905	)

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Intangible Assets and Goodwill

3 Months Ended

Jan. 31, 2014

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

7. Intangible Assets and Goodwill

Intangible assets consisted of the following as of the dates indicated:

	January 31, 2014							October 31, 2013
In thousands	Gross Amount		Amorti- zation			Net Book Value		Gross Amount		Amorti- zation			Net Book Value
Non-amortizable trademarks	$	124,088	$	—		$	124,088	$	124,099	$	—		$	124,099
Amortizable trademarks		20,255		(11,870	)		8,385		19,810		(11,534	)		8,276
Amortizable licenses		11,761		(11,761	)		—		12,749		(12,749	)		—
Other amortizable intangibles		8,278		(6,086	)		2,192		8,185		(5,964	)		2,221
	$	164,382	$	(29,717	)	$	134,665	$	164,843	$	(30,247	)	$	134,596

The change in non-amortizable trademarks is due primarily to foreign currency exchange fluctuations. Other amortizable intangibles primarily include non-compete agreements, patents and customer relationships. These amortizable intangibles are amortized on a straight-line basis over their estimated useful lives. Certain trademarks will continue to be amortized by the Company using estimated useful lives of 10 to 25 years with no residual values. Intangible amortization expense for each of the first quarters of fiscal 2014 and 2013 was approximately $0.5 million. Annual amortization expense is estimated to be approximately $2 million through fiscal 2017 and approximately $1 million in fiscal 2018 and 2019.

A summary of goodwill by segment, and in total, and changes in the carrying amounts, as of the dates indicated are as follows:

In thousands	Americas			EMEA			APAC			Consolidated
Gross goodwill	$	75,974		$	174,869		$	135,752		$	386,595
Accumulated impairment losses		—			—			(129,545	)		(129,545	)
Net goodwill at Nov. 1, 2012	$	75,974		$	174,869		$	6,207		$	257,050
Foreign currency translation and other		(1,031	)		5,606			—			4,575
Gross goodwill		74,943			180,475			135,752			391,170
Accumulated impairment losses		—			—			(129,545	)		(129,545	)
Net goodwill at Oct. 31, 2013	$	74,943		$	180,475		$	6,207		$	261,625
Foreign currency translation and other		(517	)		(2,870	)		—			(3,387	)
Gross goodwill		74,426			177,605			135,752			387,783
Accumulated impairment losses		—			—			(129,545	)		(129,545	)
Net goodwill at Jan. 31, 2014	$	74,426		$	177,605		$	6,207		$	258,238

The table above excludes goodwill recorded from our fiscal 2012 acquisition of Surfdome that has been reclassified to assets held for sale in our consolidated balance sheets. For the first quarter of fiscal 2014, goodwill fluctuated due to the effect of changes in foreign currency exchange rates.

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Discontinued Operations - Additional Information (Detail) (USD $)	3 Months Ended		1 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Nov. 30, 2013 Mervin [Member]	Jan. 31, 2014 Hawk [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of business			$ 58,000,000	$ 19,000,000
Net gain on sale	$ 38,103,000	$ 0

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Restricted Cash

3 Months Ended

Jan. 31, 2014

Receivables [Abstract]

Restricted Cash

5. Restricted Cash

The Company’s restricted cash balance as of January 31, 2014 was $61 million. Certain of the Company’s debt agreements contain restrictions on what can be done with cash received from the sale of assets. The proceeds received from the Company’s disposition of its Mervin and Hawk businesses during the first quarter of fiscal 2014 are subject to these restrictions. These restrictions generally require such cash to be used for either the repayment of indebtedness or capital expenditures.

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Inventories, net

3 Months Ended

Jan. 31, 2014

Inventory Disclosure [Abstract]

Inventories, net

6. Inventories, net

Inventories, net consisted of the following as of the dates indicated:

In thousands	January 31, 2014		October 31, 2013
Raw materials	$	3,993	$	4,725
Work in-process		354		681
Finished goods		355,799		332,309
	$	360,146	$	337,715

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Income Taxes

3 Months Ended

Jan. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

Each reporting period, the Company evaluates the realizability of all of its deferred tax assets in each tax jurisdiction. As of January 31, 2014, the Company continued to maintain a full valuation allowance against its net deferred tax assets in certain jurisdictions in each of its four operating segments due to sustained taxable losses. As a result of the valuation allowances recorded, no tax benefits have been recognized for losses incurred in those tax jurisdictions.

The Company’s sale of the Mervin and Hawk businesses generated income tax expense of approximately $10 million within discontinued operations during the first quarter of fiscal 2014. However, as the Company does not expect to pay income tax after application of available loss carryforwards, an offsetting income tax benefit was recognized within continuing operations. Before this tax benefit, the Company generated income tax expense in the first quarter of fiscal 2014 and 2013 due to being unable to record tax benefits against the losses in certain jurisdictions where we have previously recorded valuation allowances.

As of January 31, 2014, the Company’s liability for uncertain tax positions was approximately $12 million resulting from unrecognized tax benefits, excluding interest and penalties.

If the Company’s positions are favorably sustained by the relevant taxing authority, approximately $11 million, excluding interest and penalties, of uncertain tax position liabilities would favorably impact the Company’s effective tax rate in future periods.

During the next 12 months, it is reasonably possible that the Company’s liability for uncertain tax positions may change by a significant amount as a result of the resolution or payment of uncertain tax positions. The Company believes the outcomes which are reasonably possible within the next 12 months range from a reduction of the liability for unrecognized tax benefits of $9 million to an increase of the liability of $2 million, excluding penalties and interest for its existing tax positions.

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Condensed Consolidating Financial Information - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013	Jan. 31, 2014 Guarantor Subsidiaries [Member]	Jul. 31, 2013 2020 Notes [Member]	Jul. 31, 2013 2020 Notes [Member] Domestic Subsidiaries [Member]
Debt Instrument [Line Items]
Notes issued, aggregate principal amount	$ 864,648	$ 831,300		$ 225,000
Percentage of ownership owned by parent in subsidiaries			100.00%		100.00%

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Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Detail) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013	Jan. 31, 2013	Oct. 31, 2012
Current assets:
Cash and cash equivalents	$ 69,988	$ 57,280	$ 68,361	$ 41,823
Restricted cash	60,617
Trade accounts receivable, net	338,723	411,638
Other receivables	27,278	23,306
Inventories, net	360,146	337,715
Deferred income taxes - current	9,563	9,997
Prepaid expenses and other current assets	29,243	24,124
Intercompany balances
Current portion of assets held for sale	13,676	51,196
Total current assets	909,234	915,256
Fixed assets, net	224,914	231,261
Intangible assets, net	134,665	134,596
Goodwill	258,238	261,625		257,050
Other assets	50,389	53,287
Deferred income taxes long-term
Investment in subsidiaries
Assets held for sale, net of current portion	23,715	24,445
Total assets	1,601,155	1,620,470
Current liabilities:
Accounts payable	168,005	201,675
Accrued liabilities	119,757	121,545
Current portion of long-term debt	43,424	23,488
Income taxes payable	1,913	3,912
Deferred income taxes - current
Intercompany balances
Current portion of assets held for sale	9,075	16,420
Total current liabilities	342,174	367,040
Long-term debt, net of current portion	821,224	807,812
Other long-term liabilities	34,503	36,345
Deferred income taxes long-term	21,590	19,896
Assets held for sale, net of current portion	1,577	1,719
Total liabilities	1,221,068	1,232,812
Stockholders'/invested equity:	368,033	369,706
Non-controlling interest	12,054	17,952
Total liabilities and equity	1,601,155	1,620,470
Quiksilver, Inc. [Member]
Current assets:
Cash and cash equivalents	34	35	419	324
Restricted cash
Trade accounts receivable, net
Other receivables	58	19
Inventories, net
Deferred income taxes - current
Prepaid expenses and other current assets	2,433	3,372
Intercompany balances
Current portion of assets held for sale
Total current assets	2,525	3,426
Fixed assets, net	21,782	21,378
Intangible assets, net	4,962	4,487
Goodwill
Other assets	8,135	8,025
Deferred income taxes long-term	19,786	21,085
Investment in subsidiaries	985,746	949,814
Assets held for sale, net of current portion
Total assets	1,042,936	1,008,215
Current liabilities:
Accounts payable	1,524	4,222
Accrued liabilities	30,232	17,900
Current portion of long-term debt
Income taxes payable
Deferred income taxes - current	20,365	20,365
Intercompany balances	121,442	92,815
Current portion of assets held for sale		689
Total current liabilities	173,563	135,991
Long-term debt, net of current portion	501,021	500,896
Other long-term liabilities	319	1,622
Assets held for sale, net of current portion
Total liabilities	674,903	638,509
Stockholders'/invested equity:	368,033	369,706
Non-controlling interest
Total liabilities and equity	1,042,936	1,008,215
QS Wholesale, Inc. [Member]
Current assets:
Cash and cash equivalents	7,258	3,733	4,214	1,966
Restricted cash	60,214
Trade accounts receivable, net	70,576	83,991
Other receivables	2,746	5,613
Inventories, net	52,408	43,405
Deferred income taxes - current	24,624	24,624
Prepaid expenses and other current assets	5,914	3,271
Intercompany balances	176,329	173,547
Current portion of assets held for sale
Total current assets	400,069	338,184
Fixed assets, net	33,330	35,152
Intangible assets, net	44,362	44,596
Goodwill	103,880	103,880
Other assets	5,546	5,654
Deferred income taxes long-term
Investment in subsidiaries	5,960	8,795
Assets held for sale, net of current portion
Total assets	593,147	536,261
Current liabilities:
Accounts payable	38,976	51,283
Accrued liabilities	15,994	9,921
Current portion of long-term debt	15,798
Income taxes payable	1,185	121
Deferred income taxes - current
Intercompany balances
Current portion of assets held for sale
Total current liabilities	71,953	61,325
Long-term debt, net of current portion	23,590
Other long-term liabilities	5,714	6,012
Deferred income taxes long-term	41,039	41,039
Assets held for sale, net of current portion
Total liabilities	142,296	108,376
Stockholders'/invested equity:	450,851	427,885
Non-controlling interest
Total liabilities and equity	593,147	536,261
Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	(1,939)	296	(3,922)	(1,831)
Restricted cash
Trade accounts receivable, net	35,269	48,230
Other receivables	3,715	2,007
Inventories, net	101,772	93,074
Deferred income taxes - current
Prepaid expenses and other current assets	3,614	3,752
Intercompany balances
Current portion of assets held for sale		26,051
Total current assets	142,431	173,410
Fixed assets, net	21,750	21,816
Intangible assets, net	1,121	1,154
Goodwill	7,676	7,675
Other assets	992	1,096
Deferred income taxes long-term
Investment in subsidiaries
Assets held for sale, net of current portion		1,676
Total assets	173,970	206,827
Current liabilities:
Accounts payable	20,565	35,910
Accrued liabilities	6,665	6,929
Current portion of long-term debt
Income taxes payable
Deferred income taxes - current	744	744
Intercompany balances	30,302	47,424
Current portion of assets held for sale		3,773
Total current liabilities	58,276	94,780
Long-term debt, net of current portion
Other long-term liabilities	8,456	8,946
Deferred income taxes long-term	2,053	2,053
Assets held for sale, net of current portion		187
Total liabilities	68,785	105,966
Stockholders'/invested equity:	105,185	100,861
Non-controlling interest
Total liabilities and equity	173,970	206,827
Non-Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	64,635	53,216	67,650	41,364
Restricted cash	403
Trade accounts receivable, net	232,878	279,417
Other receivables	20,759	15,667
Inventories, net	236,575	224,695
Deferred income taxes - current	6,048	6,482
Prepaid expenses and other current assets	17,282	13,729
Intercompany balances
Current portion of assets held for sale	13,676	25,475
Total current assets	592,256	618,681
Fixed assets, net	148,052	152,915
Intangible assets, net	84,220	84,359
Goodwill	146,682	150,070
Other assets	35,716	38,512
Deferred income taxes long-term	1,716	2,111
Investment in subsidiaries
Assets held for sale, net of current portion	23,715	22,769
Total assets	1,032,357	1,069,417
Current liabilities:
Accounts payable	106,940	110,260
Accrued liabilities	66,866	86,795
Current portion of long-term debt	27,626	23,488
Income taxes payable	728	3,791
Deferred income taxes - current
Intercompany balances	24,585	33,308
Current portion of assets held for sale	9,075	11,958
Total current liabilities	235,820	269,600
Long-term debt, net of current portion	296,613	306,916
Other long-term liabilities	20,014	19,765
Assets held for sale, net of current portion	1,577	1,532
Total liabilities	554,024	597,813
Stockholders'/invested equity:	466,279	453,652
Non-controlling interest	12,054	17,952
Total liabilities and equity	1,032,357	1,069,417
Eliminations [Member]
Current assets:
Cash and cash equivalents
Restricted cash
Trade accounts receivable, net
Other receivables
Inventories, net	(30,609)	(23,459)
Deferred income taxes - current	(21,109)	(21,109)
Prepaid expenses and other current assets
Intercompany balances	(176,329)	(173,547)
Current portion of assets held for sale		(330)
Total current assets	(228,047)	(218,445)
Fixed assets, net
Intangible assets, net
Goodwill
Other assets
Deferred income taxes long-term	(21,502)	(23,196)
Investment in subsidiaries	(991,706)	(958,609)
Assets held for sale, net of current portion
Total assets	(241,255)	(1,200,250)
Current liabilities:
Accounts payable
Accrued liabilities
Current portion of long-term debt
Income taxes payable
Deferred income taxes - current	(21,109)	(21,109)
Intercompany balances	(176,329)	(173,547)
Current portion of assets held for sale
Total current liabilities	(197,438)	(194,656)
Long-term debt, net of current portion
Deferred income taxes long-term	(21,502)	(23,196)
Assets held for sale, net of current portion
Total liabilities	(218,940)	(217,852)
Stockholders'/invested equity:	(1,022,315)	(982,398)
Non-controlling interest
Total liabilities and equity	$ (1,241,255)	$ (1,200,250)

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Discontinued Operations - Total Assets Held for Sale (Detail) (USD $) In Thousands, unless otherwise specified	Jan. 31, 2014	Oct. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total assets held for sale	$ 37,391	$ 75,641
Americas [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total assets held for sale		27,398
EMEA [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total assets held for sale	37,391	47,588
APAC [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total assets held for sale		$ 655

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Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Jan. 31, 2014

Equity [Abstract]

Components of Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income, net of tax, are as follows:

In thousands First quarter ended January 31, 2014:	Derivative Instruments			Foreign Currency Adjustments			Total
Balance, October 31, 2013	$	(4,591	)	$	78,509		$	73,918
Net losses reclassified to COGS		186			—			186
Changes in fair value, net of tax		6,107			(20,715	)		(14,608	)
Balance, January 31, 2014	$	1,702		$	57,794		$	59,496
First quarter ended January 31, 2013:
Balance, October 31, 2012	$	5,756		$	80,656		$	86,412
Net gains reclassified to COGS		(1,135	)		—			(1,135	)
Net losses reclassified to foreign currency loss		86			—			86
Changes in fair value, net of tax		(2,599	)		11,758			9,159
Balance, January 31, 2013	$	2,108		$	92,414		$	94,522

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Restructuring Charges - Activity and Liability Balances (Detail) (Restructuring Plan Two Thousand Thirteen and Two Thousand Eleven [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Jan. 31, 2014	Oct. 31, 2013
Restructuring Cost and Reserve [Line Items]
Beginning Balance	$ 19,098	$ 12,191
Charged to expense	3,123	28,509
Cash payments	(6,439)	(21,010)
Adjustments		(592)
Ending Balance	15,782	19,098
Workforce [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance	12,159	5,335
Charged to expense	2,553	22,671
Cash payments	(5,925)	(15,847)
Ending Balance	8,787	12,159
Facility & Other [Member]
Restructuring Cost and Reserve [Line Items]
Beginning Balance	6,939	6,856
Charged to expense	570	5,838
Cash payments	(514)	(5,163)
Adjustments		(592)
Ending Balance	$ 6,995	$ 6,939

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Litigation, Indemnities and Guarantees

3 Months Ended

Jan. 31, 2014

Commitments And Contingencies Disclosure [Abstract]

Litigation, Indemnities and Guarantees

13. Litigation, Indemnities and Guarantees

As part of its global operations, the Company may be involved in legal claims involving trademarks, intellectual property, licensing, employment matters, compliance, contracts and other matters incidental to its business. The Company believes the resolution of any such matter, individually and in aggregate, currently threatened or pending will not have a material adverse effect on its financial condition, results of operations or liquidity.

During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These include (i) intellectual property indemnities to the Company’s customers and licensees in connection with the use, sale and/or license of the Company’s products, (ii) indemnities to various lessors in connection with facility leases for certain claims arising from such facilities or leases, (iii) indemnities to vendors and service providers pertaining to claims based on the negligence or willful misconduct of the Company, and (iv) indemnities involving the accuracy of representations and warranties in certain contracts. The duration of these indemnities, commitments and guarantees varies and, in certain cases, may be indefinite. The majority of these indemnities, commitments and guarantees do not provide for any limitation of the maximum potential for future payments the Company could be obligated to make. The Company has not recorded any liability for these indemnities, commitments and guarantees in the accompanying consolidated balance sheets.

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Segment Information (Tables)

3 Months Ended

Jan. 31, 2014

Segment Reporting [Abstract]

Information Related to Company's Operating Segments

Information related to the Company’s operating segments for the first quarter of fiscal 2014 and 2013 is as follows:

	First Quarter Ended January 31,
In thousands	2014			2013
Revenues, net:
Americas	$	173,165		$	182,636
EMEA		149,397			156,174
APAC		69,875			72,695
Corporate Operations		175			684
	$	392,612		$	412,189
Gross profit:
Americas	$	75,110		$	78,121
EMEA		87,849			91,734
APAC		36,808			39,236
Corporate Operations		69			682
	$	199,836		$	209,773
SG&A expense:
Americas	$	83,692		$	85,187
EMEA		76,712			77,215
APAC		32,615			37,192
Corporate Operations		10,765			16,745
	$	203,784		$	216,339
Asset impairments:
Americas	$	222		$	1,621
EMEA		661			1,547
APAC		—			—
Corporate Operations		—			—
	$	883		$	3,168
Operating (loss)/income:
Americas	$	(8,804	)	$	(8,687	)
EMEA		10,476			12,972
APAC		4,193			2,044
Corporate Operations		(10,696	)		(16,063	)
	$	(4,831	)	$	(9,734	)
	January 31, 2014			October 31, 2013
Identifiable assets:
Americas	$	581,417		$	581,021
EMEA		747,013			744,936
APAC		202,359			222,542
Corporate Operations		70,366			71,971
	$	1,601,155		$	1,620,470

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Intangible Assets and Goodwill - Summary of Goodwill by Segment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Jan. 31, 2014	Oct. 31, 2013	Oct. 31, 2012
Goodwill [Line Items]
Foreign currency translation and other	$ (3,387)	$ 4,575
Gross goodwill	387,783	391,170	386,595
Accumulated impairment losses	(129,545)	(129,545)	(129,545)
Net goodwill	258,238	261,625	257,050
Americas [Member]
Goodwill [Line Items]
Foreign currency translation and other	(517)	(1,031)
Gross goodwill	74,426	74,943	75,974
Net goodwill	74,426	74,943	75,974
EMEA [Member]
Goodwill [Line Items]
Foreign currency translation and other	(2,870)	5,606
Gross goodwill	177,605	180,475	174,869
Accumulated impairment losses
Net goodwill	177,605	180,475	174,869
APAC [Member]
Goodwill [Line Items]
Foreign currency translation and other
Gross goodwill	135,752	135,752	135,752
Accumulated impairment losses	(129,545)	(129,545)	(129,545)
Net goodwill	$ 6,207	$ 6,207	$ 6,207

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Earnings per Share and Stock-Based Compensation - Additional Information (Detail) (USD $)	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Oct. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding options exercisable	5,633,427
Outstanding options	7,634,578		8,829,618
Options granted
Changes in restricted stock	$ 0
Based on Monte-Carlo Simulation [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Price valuation model used	Monte-Carlo simulation
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Risk-free interest rate		0.50%
Volatility rate, minimum		73.00%
Volatility rate, maximum		89.00%
Amount for dividend yield		0.00%
Weighted average fair value of the restricted stock units		$ 3.39
Unrecognized compensation expense	300,000
Unrecognized compensation expense, weighted average period	1 year
Performance Based Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options granted	0	0
Performance Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding options exercisable	82,000
Outstanding options	640,000		688,000
Unrecognized compensation expense	700,000
Unrecognized compensation expense, weighted average period	2 years
Options granted
Performance Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding options exercisable	0
Outstanding options	11,644,845		11,675,782
Unrecognized compensation expense	6,000,000
Unrecognized compensation expense, weighted average period	4 months 24 days
Options granted
Non-Performance Based Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average fair value of the restricted stock units	$ 3.19		$ 2.95
Options granted
Unrecognized compensation expense	$ 3,000,000
Unrecognized compensation expense, weighted average period	2 years
Options granted	0	0
Vesting period of options	3 years

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Condensed Consolidated Statements of Comprehensive Income/(Loss) (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Statement Of Income And Comprehensive Income [Abstract]
Unrealized gain/(loss) on derivative instruments, tax	$ 1,321	$ (1,628)

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New Accounting Pronouncements

3 Months Ended

Jan. 31, 2014

Accounting Changes And Error Corrections [Abstract]

New Accounting Pronouncements

2. New Accounting Pronouncements

In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 provides guidance on the presentation of unrecognized tax benefits, reflecting the manner in which an entity would settle, at the reporting date, any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. This accounting standard will be effective for the Company beginning November 1, 2014, with early adoption permitted. The Company did early adopt this guidance effective November 1, 2013 and the adoption did not have a material impact on the Company’s consolidated financial position or results of operations.

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Stockholders' Equity and Non-controlling Interest - Summary of Changes in Equity (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013
Schedule Of Stockholders Equity [Line Items]
Beginning Balance	$ 387,658	$ 602,236
Stock compensation expense	5,063	7,336
Exercise of stock options	2,465	2,761
Employee stock purchase plan	673	557
Transactions with non-controlling interest holders	(16,273)
Net income/(loss) and other comprehensive income/(loss)	501	(22,514)
Ending Balance	380,087	590,376
Quiksilver, Inc. [Member]
Schedule Of Stockholders Equity [Line Items]
Beginning Balance	369,706	583,310
Stock compensation expense	5,063	7,336
Exercise of stock options	2,465	2,761
Employee stock purchase plan	673	557
Transactions with non-controlling interest holders	(10,839)	(44)
Net income/(loss) and other comprehensive income/(loss)	965	(23,019)
Ending Balance	368,033	570,901
Non-Controlling Interest [Member]
Schedule Of Stockholders Equity [Line Items]
Beginning Balance	17,952	18,926
Stock compensation expense
Exercise of stock options
Employee stock purchase plan
Transactions with non-controlling interest holders	(5,434)	44
Net income/(loss) and other comprehensive income/(loss)	(464)	505
Ending Balance	$ 12,054	$ 19,475

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Earnings per Share and Stock-Based Compensation (Tables)

3 Months Ended

Jan. 31, 2014

Text Block [Abstract]

Reconciliation of Denominator of Each Net Loss per Share

The table below sets forth the reconciliation of the denominator of each net loss per share calculation for the first quarter of fiscal 2014 and 2013:

	First Quarter Ended January 31,
In thousands	2014		2013
Shares used in computing basic net loss per share		169,747		165,767
Dilutive effect of stock options and restricted stock(1)		—		—
Dilutive effect of stock warrants(1)		—		—
Shares used in computing diluted net loss per share		169,747		165,767

⁽¹⁾ For the first quarter of fiscal 2014 and 2013, the shares used in computing diluted net loss per share do not include 3,974,000 and 3,391,000, respectively, of dilutive stock options and shares of restricted stock, nor 19,913,000 and 15,140,000, respectively, of dilutive warrant shares, as the effect is anti-dilutive given the Company’s net loss from continuing operations. For the first quarter of fiscal 2014 and 2013, additional stock options outstanding of 3,856,000 and 7,932,000, respectively, and additional warrant shares outstanding of 5,741,000 and 10,514,000, respectively, were excluded from the calculation of diluted EPS, as their effect would have been anti-dilutive based on the application of the treasury stock method.

Schedule of Activity Related to Performance Based Equity Instruments

Activity related to these performance-based equity instruments for the first quarter of fiscal 2014 was as follows:

	Performance Options			Performance Restricted Stock Units
Outstanding, October 31, 2013		688,000			11,675,782
Granted		—			—
Exercised		(12,000	)		—
Canceled		(36,000	)		(30,937	)
Outstanding, January 31, 2014		640,000			11,644,845

Schedule of Changes in Shares under Option, Excluding Performance Based Options

Changes in shares under option, excluding performance-based options, for the first quarter of fiscal 2014 were as follows:

Dollar amounts in thousands, except per share amounts	Shares			Weighted Average Price		Weighted Average Life		Aggregate Intrinsic Value
Outstanding, October 31, 2013		8,829,618		$	4.83
Granted		—			—
Exercised		(568,290	)		4.24			$	2,370
Canceled		(626,750	)		8.59
Outstanding, January 31, 2014		7,634,578		$	4.56		5.5	$	21,110
Options exercisable, January 31, 2014		5,633,427		$	4.16		4.8	$	18,344

Schedule of Changes in Non-Vested Shares under Option, Excluding Performance Based Options

Changes in non-vested shares under option, excluding performance-based options, for the first quarter of fiscal 2014 were as follows:

	Shares			Weighted Average Grant Date Fair Value
Non-vested, October 31, 2013		2,784,826		$	2.95
Granted		—			—
Vested		(778,675	)		2.28
Canceled		(5,000	)		3.51
Non-vested, January 31, 2014		2,001,151		$	3.19

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Segment Information - Information Related to Company's Operating Segments (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Oct. 31, 2013
Revenues, net:
Revenues, net	$ 392,612	$ 412,189
Gross profit:
Gross profit	199,836	209,773
SG&A expense:
SG&A expense	203,784	216,339
Asset impairments:
Asset impairments	883	3,168
Operating (loss)/income:
Operating income/ (loss)	(4,831)	(9,734)
Identifiable assets:
Identifiable assets	1,601,155		1,620,470
Operating Segments [Member] | Americas [Member]
Revenues, net:
Revenues, net	173,165	182,636
Gross profit:
Gross profit	75,110	78,121
SG&A expense:
SG&A expense	83,692	85,187
Asset impairments:
Asset impairments	222	1,621
Operating (loss)/income:
Operating income/ (loss)	(8,804)	(8,687)
Identifiable assets:
Identifiable assets	581,417		581,021
Operating Segments [Member] | EMEA [Member]
Revenues, net:
Revenues, net	149,397	156,174
Gross profit:
Gross profit	87,849	91,734
SG&A expense:
SG&A expense	76,712	77,215
Asset impairments:
Asset impairments	661	1,547
Operating (loss)/income:
Operating income/ (loss)	10,476	12,972
Identifiable assets:
Identifiable assets	747,013		744,936
Operating Segments [Member] | APAC [Member]
Revenues, net:
Revenues, net	69,875	72,695
Gross profit:
Gross profit	36,808	39,236
SG&A expense:
SG&A expense	32,615	37,192
Operating (loss)/income:
Operating income/ (loss)	4,193	2,044
Identifiable assets:
Identifiable assets	202,359		222,542
Corporate, Non-Segment [Member] | Corporate Operations [Member]
Revenues, net:
Revenues, net	175	684
Gross profit:
Gross profit	69	682
SG&A expense:
SG&A expense	10,765	16,745
Operating (loss)/income:
Operating income/ (loss)	(10,696)	(16,063)
Identifiable assets:
Identifiable assets	$ 70,366		$ 71,971

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Stockholders' Equity and Non-controlling Interest

3 Months Ended

Jan. 31, 2014

Equity [Abstract]

Stockholders' Equity and Non-controlling Interest

12. Stockholders’ Equity and Non-controlling Interest

The following tables summarize the changes in equity attributable to Quiksilver, Inc. and the non-controlling interests of its consolidated subsidiaries:

In thousands First quarter ended January 31, 2014:	Attributable to Quiksilver, Inc.			Non- controlling Interest			Total Stockholders’ Equity
Balance, October 31, 2013	$	369,706		$	17,952		$	387,658
Stock compensation expense		5,063			—			5,063
Exercise of stock options		2,465			—			2,465
Employee stock purchase plan		673			—			673
Transactions with non-controlling interest holders		(10,839	)		(5,434	)		(16,273	)
Net income and other comprehensive income/(loss)		965			(464	)		501
Balance, January 31, 2014	$	368,033		$	12,054		$	380,087
First quarter ended January 31, 2013:
Balance, October 31, 2012	$	583,310		$	18,926		$	602,236
Stock compensation expense		7,336			—			7,336
Exercise of stock options		2,761			—			2,761
Employee stock purchase plan		557			—			557
Transactions with non-controlling interest holders		(44	)		44			—
Net loss and other comprehensive (loss)/income		(23,019	)		505			(22,514	)
Balance, January 31, 2013	$	570,901		$	19,475		$	590,376