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